CITY OF JEANERETTE JEANERETTE, LA
MINUTES SPECIAL MEETING-BOARD OF ALDERMEN December 28, 2021
Proceedings of the Mayor and Board of Aldermen of the City of Jeanerette, State of Louisiana, at their special meeting held Tuesday December 28, 2021 at 5:00 p.m.
Those present were: Alderman/Mayor Pro Tempe Clarence Clark, Alderwoman Charlene Moore, Alderman Garland Bourgeois, Alderman Willie Ward and Alderman Louis Lancon, Also present: City Clerk Susan Colden, and City Attorney Lucretia Pecantte. Absent Mayor Carol Bourgeois Jr.
Alderman Louis Lancon led in prayer and Alderwoman Moore led the Pledge of Allegiance. Mayor Pro Tempe Clarence Clark determined that a quorum was present.
Agenda Items. John Caro from Brown and Brown on Workers Comp, Auto, Liability and property renewal,
Introduction by John Caro, and directed the Board to look at the overall package cost comparisons in the handout on page 54. The main reason that the Board had to have a Special Meeting was to gather the Property Insurance information. The recent outbreak of named storms has caused this market to be very volatile with costs rising sharply. The City of Jeanerette currently has 6.2 million of value in property insurance with our carrier Axis at a cost of $45,000. This year Axis is only willing to cover 2 million in property at a cost of nearly $55,000 but that will be replacement cost coverage. John went to the marketplace to find a carrier for the remaining 4.2 million in property and found that the premium is an additional $37,000. So to get the same coverage that the City had for $45,000 will cost about $92,000. John then reported that Louisiana Citizens could provide coverage but it is not replacement cost coverage, but will pays only the depreciated value of the insured item but the cost of coverage is $49,000. To get a replacement value policy through Citizens would cost the City over $200,000. Alderman Lancon suggest that the most cost effective options was to either go with the Axis coverage for 2 million of coverage at a cost of $55,000 or with Louisiana Citizens for the $49,000 coverage. . On motion by Alderman Bourgeois and second by Alderman Ward to insure the property insurance through Axis for 2 million of coverage at a cost of $55,000. Roll Call Vote as follows:
Yea: Alderman Lancon, Alderman Ward, Alderman Bourgeois, and Alderwoman Moore
Nay: None
Abstain: None
Absence: None
Motion passed.
Next item is Contractor’s Equipment, John said there is only a slight increase of $254, and recommended continuing with the same carrier RLI Insurance
On motion by Alderman Lancon and second by Alderman Bourgeois to insure the Contractor’s Equipment with RLI at a cost of $5,290. Roll Call Vote as follows:
Yea: Alderman Lancon, Alderman Ward, Alderman Bourgeois, and Alderwoman Moore
Nay: None
Abstain: None
Absence: None
Motion passed.
John then addressed VFIS and stated that there was again a minor increase but recommended continuing the coverage. On motion by Alderman Lancon and second by Alderman Ward to continue the coverage with VFIS. Roll Call Vote as follows:
Yea: Alderman Lancon, Alderman Ward, Alderman Bourgeois, and Alderwoman Moore
Nay: None
Abstain: None
Absence: None
Motion passed.
John then pointed out that the Crime Policy had a slight reduction over last year. He also said we might actually get us additional savings by reducing the level of employee theft since the current bond no longer requires the high level of protection. Alderman Lancon and second by Alderman Ward to renew the Crime policy and then John will return later with a quote to reduce the level of employee theft to $50,000. Roll Call Vote as follows:
Yea: Alderman Lancon, Alderman Ward, Alderman Bourgeois, and Alderwoman Moore
Nay: None
Abstain: None
Absence: None
Motion passed.
The next area is the General Liability & Worker’s Comp and John said we have been with Travelers for a long time but they do not cover automotive physical damage so we have to carry special physical damage coverage. We have had issues with coordinating coverages, getting drivers’ approved in a timely manner and addressing coverage for accidents. We are having trouble with automotive physical damage because of our claim history. To continue with Travelers and our auto physical damage will be about $112,000 for next year. John recommended the Board consider Berkshire-Hathaway Guard for our General Liability and automotive physical damage at a cost of $105,725. John said that the difference is the deductible for the automotive physical damage is $5,000 versus our current deductible of $2,000. John then discussed the Workers Comp policy, and while currently the City is covered by Travelers’ John is recommending we switch to LWCC. It is slightly more than Traveler’s and has paid a yearly dividend that is not loss sensitive for over 29 years, and they have great customer service including loss control. Also, if the Board chooses Berkshire-Hathaway Guard Travelers’ will not just cover worker’s comp. . Alderman Lancon and second by Alderman Ward to chooses Berkshire-Hathaway Guard for General Liability and LWCC for Workers’ Comp. Roll Call Vote as follows:
Yea: Alderman Lancon, Alderman Ward, Alderman Bourgeois, and Alderwoman Moore
Nay: None
Abstain: None
Absence: None
Motion passed.
Adjourn There being no further business to bring before the Board of Aldermen, motion by Alderman Lancon and second by Alderwoman Moore to adjourn the meeting carried with a voice vote of all yea, no abstain and no absent.
_____________/s/______________________
Mayor Pro Tempe Clarence Clark
ATTEST:
_________/s/___________________
Susan Colden City Clerk
MINUTES SPECIAL MEETING-BOARD OF ALDERMEN December 28, 2021
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