Terrebonne Council OKs property insurance contract

Terrebonne Parish Council members met once more before the end of the year to make a final decision on a lingering insurance issue.

During a short special session meeting on Dec. 28, the Terrebonne Parish Council accepted property insurance from Arthur J. Gallagher and Co., the last out of 10 insures to confirm 2007 coverage.

The council had to make a last minute decision after much discussion during numerous regular council meetings over who would provide property insurance, giving the risk management department just enough time to contract with Gallagher.

Parish Risk Manager Janell Brierley addressed the council during a regular meeting on Dec. 20. She said only 9 out of 10 companies that provide multi-layered property insurance to parish government approved a 60-day extension and complete 2007 coverage.

Parish property is insured for up to $100 million in damages, with coverage totaling $1.6 million.

Debate was sparked by the one company that had not yet complied. Brierley said the risk management department had not yet heard from Gallagher and the parish would go uninsured into the New Year without council action.

Briery explained the council’s three options: hand authority to the parish Property Insurance Review Board to make the final call, call a special session for a complete council decision, or do neither n if and when Gallagher contacted the parish.

At first, council members debated giving authority to the review board but Councilwoman Arlanda Williams of District 2 expressed concern with “handing the administration a blank check.” She sought the Dec. 28 special session in order to OK an insurer within three days of the deadline.

Brierley said three days was needed to finalize an insurance agreement.

During Thursday’s special session, Parish Manager Barry Blackwell said the administration had received approval for a 60-day extension from Gallagher at the same pricing as the 12-month premium, with only a slight increase from original quotes.

Blackwell said full receipt of all the options will be received Jan. 31 and will be presented at the first regular council meeting in February.

The council voted unanimously to affirm the administration’s recommendation, wrapping-up the special session within a half hour, but expressed concern with the way the parish government handled insurance issues during previous meetings.

“When it comes to insurance, it always seems to come down to the last minute and the council is put in this position,” said District 1Councilman Alvin Tillman. Tillman, Williams and other members agreed that the timeliness of the discussion put the council in a tight spot.

Without insurance the parish is at risk, but by issuing a “blank check” the council puts parish taxpayers at risk, said Williams.