PELL CITY – Officials are expected to talk with municipal insurers after one councilman said the city’s current insurance company denied several claims filed by the city.

“Of 13 claims, they only paid four,” said Councilman James McGowan.

He said the city paid its municipal city insurance company $161,669 annually, and in 2009, the company raised the insurance rates to $201,232 a year.

“If they aren’t going to pay the claims, we need to look elsewhere,” McGowan said.

Councilman Donnie Todd said he was in favor of hearing what other companies had to offer.

“Just make sure they look at the claims that were denied us,” Todd said, adding that other companies may not cover those insurance claims either. “Four out of 13, that’s a pretty low coverage rate.”

Councilman Greg Gossett said officials should compare the same deductibles of other insurance companies, so the council is comparing apples to apples.

Councilman Donnie Guinn said he would like to know why the city’s current insurance company only paid four of the past 13 claims submitted to them for payment.

Mayor Bill Hereford said he would invite several insurance companies to talk with the council and see if other companies can improve the rates the city is now paying.

At Monday night’s meeting, Gossett also told the mayor and city attorney Alan Furr that he would like to see the final draft of the city’s contract with SouthWest Water Company.

In February, the council authorized the mayor to enter into a contract with SouthWest Water Company. In December, the council approved to hire the company to manage the city’s water department.

Gossett said he thought it was in the best interest of the city and the council to actually see the contract before Hereford signs it.

Hereford agreed and asked Furr to make sure Gossett and the other council members see the pending and final contract between the city and SouthWest Water Company before it is signed.

According to the proposed contract reviewed by the council in February, the base service fee for SouthWest Water Company is $600,000 a year.

The company will also receive compensation for additional, “non-routine repairs and maintenance requiring special tools or equipment or special skills,” according to the proposed contract considered by the council in February.

Gossett was the lone councilman to vote against the contract with SouthWest Water Company at the February council meeting.

According to the agreement, the SouthWest Water Company can bid on any capital expenditure projects for the city, in addition to receiving its base service charge.

“…In the event the city is required to obtain multiple quotations and/or competitive bids for any project involving a Capital Expenditure, (the) company shall have the right, without obligation, to participate if qualified as a bidder, vendor and/or subcontractor to the city where the city is required to obtain in such process of multiple quotations and/or competitive bidding,” the agreement states. “Company agrees that Base Services shall not be affected by such work if the company is selected…”

The term of the agreement was for 36 months, and was expected to begin March 1, 2010, and end Feb. 15, 2013.

According to the agreement, both parties have the right to terminate the agreement for convenience, with or without cause, with a 120 day written notice to the other party.

In other matters Monday night, the council:

• Approved to amend three ordinances which will eliminate tax discounts for lodging, sales and use and rental and lease taxes on tangible property.

• Approved to award the only bid submitted for “Welcome to Pell City” signs. RTL Printing was the only bidder for the project and will construct five signs at a cost of $13,500.

• Waived all fees and permits for the construction of the new St. Vincent’s St. Clair Hospital.

• Approved a DHR Work Program, in which the city will hire three people through DHR and pay only certain taxes for the employees. Stimulus funds will temporarily pay the employees’ salaries for six months, Hereford said.