By a 4-1 vote, City Council on Wednesday approved an agreement whereby Varine-Slavin Inc. of Jeannette will be the city's insurance agent, a role it has handled for about 20 years. A decision had to be made before today or the city would have incurred a 10 percent penalty on its premium. The current net premium is $88,555.
Councilman Jeff DePalma cast the only negative vote.
Niles Slavin, Varine-Slavin president, said after the meeting he was pleased with the decision.
"I'm just happy it went that way," Slavin said. "I think it was the correct way. They made the right decision."
The issue came to a head in August when council tabled a motion to hire Duncan Insurance Co. of Irwin, which would have resulted in a termination of the agreement with Varine-Slavin. Council then decided bids should be sought. Only two bids were received, the other coming from Travelers Insurance, through Duncan Insurance Co.
The lengthy session last night included representatives of both insurance companies making presentations and fielding questions.
Council also came in for questioning.
"Why would you wait to make an important decision until the day before the deadline?" asked resident Chuck Highlands. "These questions should have been asked a long time ago."
Before the vote was taken, Councilman John Busato admitted the process might not have been conducted exactly the right way, but he said he felt council's decision was in the city's best interest.
"This was done probably not as professionally as it should have been," Busato said. "We're trying to save money for the city everywhere we can. As far as I'm concerned, next year what should be done is have an independent person write what insurance we need for the city and put it out for bid. Maybe we're a little green with what we did or how we did it. There's nothing wrong with verifying what we have."
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