The Peru Gazette

By John T. Ryan

It has been several years since the Peru Town Board went out to bid for liability insurance coverage. They decided to do so this year and the town will be saving almost $15,000 and receiving increased insurance coverage.  The Counselors opened bids at their March 23rd meeting, studied the issue for a week and convened a Special Meeting on Monday, April 30, 2009 where they voted to contract with Northern Insuring for liability insurance coverage even though Latremore Insurance submitted a $2,600 lower bid. The Board did not have to pick the lower bidder because it had earlier concluded that insurance is a professional service and as such it is exempt from New York State Municipal Law bidding requirements. At this meeting the majority of the Board members expressed the view that Northern Insuring had given the town good service over many years and it would be unwise to change carriers at this time because the town has several ongoing legal issues. Northern Insuring bid $57,657. Last year Northern Insuring charged the Town $71,992. Counselor Tom Powers initiated this year’s insurance review and all the council spent many hours in workshops studying the issue and comparing the offerings of the companies.

When contract award vote began Counselor Tom Powers motioned that the contract be awarded to the low bidder Latremore Insuring and Supervisor Donald Covel seconded the motion to permit discussion, only to vote “no” when it came to vote on the issue. Powers voted “yes” and repeated the statement he made at the council’s last meeting that his number one loyalty was to the taxpayers rather than to a single company. Counselor Cortland Forrence stated, “I’m also loyal to the taxpayer, but price isn’t all the equation. Northern Insuring has served us well over the years.” He voted “no.”  Supervisor Covel voted “no” stating that there is a lot of ongoing litigation and he didn’t feel it would be appropriate to change carriers at this time. Counselors Brandy McDonald and Peter Glushko voted “no” and did not state a reason. The Gazette contacted Glushko at his home and he stated, “ I didn’t hear any guarantee that after a year we weren’t going to get an increase in rates. It may have been a teaser rate. There was also the question of ongoing litigation.” Contacted at his home Brandy McDonald said, “After calling about seventeen different companies and towns, I was satisfied that I made the right decision to stay with Northern Insuring.”  Following the 4-1 voted against awarding the contract to Latremore Insuring, the Council voted 4-1 to award the contract to Northern Insuring. Counselor Powers cast the dissenting vote.