There was a special meeting of the Flemingsburg City Council Thursday, May 31, 2007 at 5:30 p.m. in the city annex. Council members present were Ricky Hurst, Marty Voiers, Scott Manning, Georgianna Sparks, Meredith Story, and Van Alexander. Mayor Louie Flanery presided.

Councilman Hurst led the Pledge of Allegiance. Councilman Story presented a recap of the two insurance quotes received from KLC and Neace Lukins. It was noted that Neace Lukins’ quote for coverage with Trident and worker’s comp with KEMI was around $34,000 less than the renewal rates with KLC. This being a significant difference, council felt an obligation to the taxpayers to consider their proposal.

Gerald Carpenter, local agent for the city, addressed council regarding the differences in the quotes. Carpenter explained that the insurance business has a hard market and a soft market. Premiums will go up in a hard market, but the market is soft now and companies are cutting prices to gain business.

Carpenter had attempted to obtain a quote from St. Paul, but they had refused to quote any coverage due to the city’s workers comp experience per a letter dated May 30^th. Carpenter said the city could apply again next year. He pointed out that the city has $4,000,000 in coverage for worker’s comp with KLC. They do not write umbrellas because they offer unlimited aggregates, so there is no limit on claims. They will write up to $26,000,000 on worker’s comp. Carpenter stated that coverage based on claims made is always cheaper because there is less coverage. With KLC all claims are based on occurrence, which provides more coverage. Carpenter stated that he had encouraged KLC to look at the city’s losses over all since other losses were nil, worker’s comp losses were the greatest. They are trying to come up with a better premium and could have a revised quote by next week. Council agreed that they wanted to stay with a local agent and coverage through KLC and would be willing to pay $10,000-12,000 more to do that.

Councilman Story said coverage for some vehicles and city buildings would need to be reviewed. Councilman Voiers questioned if the fire department was covered by worker’s comp. Carpenter did not think so since they are voluntary and have no payroll, but would verify. Carpenter mentioned that the state of KY offers coverage for fire fighters.

Councilman Story commented on the differences in the two agencies. Carpenter has served the city for several years and done a good job. It’s worth a lot to have a local agent. If possible, the city’s insurance business should be kept local to help the local economy. City Attorney Tom MacDonald expressed concern about the cost of tail end coverage, which could be significant. It was noted that the city did not solicit a bid from Neace Lukins, but was approached by them to give a proposal. Council doesn’t know anything about this agency or Trident insurance. It was agreed that the city clerk would check with other cities on their experience with this agency and/or insurance company.

City Clerk Joy Roark presented the first reading of the general fund budget. Councilman Manning moved to approve. Councilman Alexander seconded the motion. All were in favor.

City Clerk Joy Roark presented the first reading of the natural gas, water, and wastewater budget. Councilman Story moved to approve. Councilman Hurst seconded the motion. All were in favor.

Councilman Story said the finance committee could review the budget and make any changes after the first reading. A meeting was scheduled for Monday, June 4^th at 6:00 p.m. in the city annex. Councilman Voiers requested that the fire chief’s pay be raised to equal council’s, which was customary.

There being no further business Councilman Manning moved to adjourn at 6:10 p.m. Councilman Hurst seconded the motion. All were in favor.

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Louie K. Flanery, Mayor

ATTESTED:

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Joy Story Roark, CKMC

Date Approved: _____________