April 24, 1978 Council Meeting
April 24. 1978
The Special Called Meeting of Mayor and Council was held at City Hall, Smyrna,
Georgia. on April 24, 1978. The meeting was called to order by presiding officer
Mayor Frank Johnson at 5:35 p.m. All Councilmen were present. Also present
was City Clerk Willouise Spivey and Finance Director Gunter Newsom.
Invocation was given by Councilman Jim Hawkins.
The meeting was called for the purpose of reviewing the proposals received on
workman's compensation insurance for the next year. April 26. 1978 through
April 26. 1979. and approval of a Resolution allowing the city to participate
in the GMA Energy Program.
Jim Tolleson read the proposals as follows:
Agent
Carrier
Premium Amount
Jesse L. Merritt
Earl L. Styes
Bob Murray
Bob Murray
Bob Murray
Reliance Ins. Co.
Liberty Mutual
$43,368
37.851
43,306
37,910
44,000
(possible 10% Div.)
*
Georgia Casualty
* This is retrospective Plan fA' which could entail a rebate within eighteen
months under certain conditions ranging from $1,327 per year up to $16,260
per year depending on our loss to premium ratio.
The recommendation of the Insurance Committee was to adopt the Retrospective
Plan 'A'. Georgia Casualty. $44.000 annually for the first eighteen months, and
make a real effort through a safety program. to reduce our loss ratio, enabling
us to get a sizable rebate. Gunter Newsom explained the premium was figured
on the amount of payroll. plus the risk rate factor; the retrospective Plan 'A'
offered a rebate and the others were straight payment plans. Mayor Johnson
stated the rebate plan had merit and he thought we could institute a safety
program, one department competing against another, and reduce the loss premium
ratio. During discussion it was brought out that one bad accident would elim-
inate any rebate and it was too big a gamble to take. Some thought the $6.149
difference in the payment for the first year would amount to more than a rebate.
Jerry Mills and Jack Shinall said they would like to go with the low bid.
Elbert Coalson made a motion the recommendation of the Insurance Committee
be approved. Jim Tolleson seconded the motion. The motion lost on a 2-5 vote.
Jim Tolleson and Elbert Coalson voted for. Bill Darby, Jim Hawkins, Jerry Mills,
Rem Bennett and Jack Shinall voted against. Jerry Mills made a motion to
approve the low bid, Reliance Insurance Co., Earl L. Styes, Agent. annual cost
of $37.851. Elbert Coalson seconded the motion. Motion carried on a 5-2 vote.
Jack Shinall and Jim Tolleson voted against. Rem Bennett, Jerry Mills, Bill
Darby, Jim Hawkins and Elbert Coalson voted for.
Mayor Johnson stated that he and Gunter Newsom attended a GMA meeting in which
ways to cut back on utility expenses, as well as all energy programs, were
discussed. GMA asked that each city approve a Resolution supporting this
energy conservation program. Jerry Mills made a motion the Resolution be
adopted. Jim Hawkins seconded the motion and the vote was 7-0. The City of
Smyrna Inspector will be in charge of carrying out the program for the city.
(A copy of the Resolution will become a part of these minutes.)
Meeting adjourned at 6:20 p.m.