Strong East Ramapo 9/23/16: Additional Insurance Cost Will Further Burden ER

Actions of the ERCSD school board have resulted in millions of dollars lost to the children’s education, which has harmed the children and resulted in extra expense to taxpayers, who are having to pay for services to East Ramapo.  On this topic, Strong East Ramapo reported:

“In 2011, the School District entered into an energy performance contract with Johnson Controls, Inc. to install numerous energy efficient controls and devices throughout the School District’s buildings. It seems that no actual contract was signed and approved by both parties. The School District was unable to secure financing for the project and was unaware that work had commenced. Johnson Controls claims to have done close to $1.9 million of work. The School District believed it should not be required to pay Johnson Controls the required amount as funding was not secured prior to Johnson commencing work done. This matter proceeded to mediation. The mediation session took place on Monday, September 12, 2016. There is now a Board approved agreement between the School District and Johnson Controls to pay $1 million over a five-year period starting in fiscal year 2017-18. The School District’s 2017-18 proposed budget will include the first payment of $200,000.”

In 2015, the East Ramapo School Board sued its insurer, New York Schools Insurance Reciprocal (NYSIR), to cover $2.23 million in legal fees the district owed its defense teams, the New York State Supreme Court ruled last year that the district was overcharged by $2 million, saying “a reasonable fee for the legal services provided is $187,500.

“In April 2016 New York State Insurance Reciprocal (NYSIR) made a decision to drop coverage for East Ramapo Central School District. This decision negatively impacted the School District as it had to seek new insurance coverage in a very short time notice. There was no single insurer that offered to commit in insuring our School District. The insurance costs increased by over $900,000 on annual basis. The School District will continue working to identify efficiencies to accommodate this additional cost for the fiscal year 2017-18 and beyond.”

 

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