Insurance bid concerns Obion council members

Insurance bid concerns Obion council members
Staff Reporter
Sticker shock over the cost for insurance coverage for the Town of Obion continues to be a problem for the Obion city council.
The council met in a called meeting Tuesday afternoon and again postponed action on renewing the city’s policy with  Terry Insurance Agency for general liability, property insurance and workman’s compensation coverage.
Obion insurance agent Peggy Terry had provided the council with a preliminary proposal for insurance coverage at a meeting Dec. 5. The cost to the city for those three policies was originally set at $71,633, up significantly from the previous year’s premium of $51,810.
Since that Dec. 5 meeting, Mrs. Terry has worked on adjusting her bid to lower the town’s premium, but it was obvious at Tuesday’s meeting there needs to be more work done on the bid to bring the premium even lower.
The council will meet in regular session Monday night at 7 and, by then, Mrs. Terry is expected to have a final bid ready for consideration. She will work during the next few days with an ad-hoc committee consisting of Mayor Glen Parnell, Public Works director Randy Evans and councilman Mike Miller.
They will review the proposed insurance policy and look for ways to reduce the premium in time for Monday night’s meeting. Under the proposed bid from Mrs. Terry, the cost to cover the city’s buildings more than doubled and council members voiced their concerns that some items in the proposed policy were vastly overinsured.
Also during Monday night’s 35-minute meeting, the council voted to increase the hours of part-time City Hall clerk Donna Sanford to 100 hours a month.
The council also informally discussed problems with three fireplugs in the city. Evans reported to the council three of the city’s 81 fireplugs do not work and it’s going to cost about $750 each to repair the fireplugs. He was given the authority to proceed with the repair work and the cost will be addressed at Monday night’s council meeting.
Tuesday’s meeting was opened in prayer by councilman Polk Glover.
Staff Reporter Kevin Bowden may be contacted by email at kmbowden@ Published in The Messenger 12.14.11

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