At its Tuesday night meeting Wilkes-Barre City Council approved premiums totaling $691,000 for an insurance package. Past insurance claims paid out to the city drove up the cost of coverage by more than $100,000.
Jerry Lynott | Times Leader
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WILKES-BARRE — The history of claims will drive up new premiums by more than $100,000, the city’s insurance broker said Tuesday night.
The new package approved by City Council will cost $691,000, largely due to the past payouts for law enforcement, said Bill Joyce of the Joyce Insurance Group.
Joyce explained the increase to Council Vice Chairwoman Beth Gilbert McBride, who questioned him about the reasons for the higher premiums. The new cost was not listed in the agenda item included among the resolutions submitted by Mayor George Brown.
Joyce said his company presents a five-year loss run when bidding out the package for policies including property, auto, public officials, police, fire, paramedics, cyber and professional liability.
“If you take your two year, your five year loss ratio, for every dollar you paid in, the insurance company paid out $2, a little over $2,” Joyce said.
McBride asked for more time to review the package next year so it could consider exploring working with another broker. It was presented to her Friday, she said.
Joyce took responsibility for the last-minute presentation and said he could not give Council another month because the coverage would lapse.
“I don’t like to feel obligated to vote on anything, let alone something that’s, you know, several hundred thousand dollars,” McBride said.
McBride abstained from the vote on the insurance package. By a 5-0 count Council approved the other agenda items combined for a consent vote.
The agenda was dominated by resolutions from Brown. Council had just two items: the appointment of Jessica McClay to the Planning Commission for a term expiring Dec. 31, 2023; and the renewal of the Winter Services Agreement with the Pennsylvania Department of Transportation. The city will be paid $59,970 to maintain a total of 37.21 miles of state routes.
Brown presented Council the names of 11 people to sit on various boards.
The reappointments were:
• Bernard Mengeringhausen to the Wilkes-Barre Finance Authority for a term expiring Aug. 17, 2023.
• Susan Mengeringhausen and Larry Newman to the Industrial Development Authority for a term expiring Dec. 31, 2025.
• Sue Strassman, Larry Singleton and Joseph Thomas to the Planning Commission for a term expiring Dec. 31, 2024.
• Jean Brodie-Druby and Anthony Thomas to the Planning Commission for a term expiring Dec. 31, 2023.
The new appointments were:
• Anthony Thomas to the Planning Commission for a term expiring Dec. 31, 2023.
• Harry Cropp to the Shade Tree Commission for a term Dec. 31, 2024.
• Denise Acosta to the Human Relations Commission for a term expiring Feb. 23, 2023.
• Samantha Chichetti to the Human Relations Commission for a term expiring March 9, 2024.
Brown said he expected to present more names for approval by Council at its Sept. 9 public meeting.
In addition, Brown said the $295,000 for the five new police Interceptor SUVs and new police Interceptor for the department would be paid out of the $37.1 million in federal American Rescue Plan funds awarded the city and not out of its general fund budget.
Reach Jerry Lynott at 570-991-6120 or on Twitter @TLJerryLynott.