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Aldermen Approve CWLP Insurance Contract; One Protests

Aldermen Approve CWLP Insurance Contract; One Protests

Photo: Newsradio WTAX

At least one Springfield alderman isn’t happy the city renewed an insurance policy for City Water Light and Power properties.

Ward 7 Alderman Joe McMenamin says the nearly $1.8 million contract with R.W. Troxell to cover $350 million of assets should have been competetively bid. He voted no in protest.

“I’m going to vote no to send a message,” said McMenamin.

Ward 3 Alderman Doris Turner, responding to a comment McMenamin made a few minutes prior, challenged his vote.

“But you think it’s irresponsible to vote no,” Turner said, noting McMenamin said he thinks it’s irresponsible to leave the CWLP facilities uninsured for any length of time.

“If all ten of us voted no, I would agree,” McMenamnin replied. “I’m still going to voice my protest that we need to encourage the competetive process. I think that’s real important.”

McMenamin voiced significant concern both last week during the Committee of the Whole meeting and during this week’s full council session that the contract should have been competetively bid.

Mayor Mike Houston says all insurance policies are written differently and can’t be competetively bid, nor can different buildings covered under this contract be covered by different companies.

Plus, he says R.W. Troxell has proven its worth. It covered CWLP during the 2007 Dallman 1 explosion.

“They have made a payout that was in excess of $50 million,” Houston said. “There was no problems in terms of getting the payout or continuing to have coverage. I mean, I think that what they have done for us is demonstration that they certainly have the capabilities to do that and are a professional firm.”

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