Power system foots bill for board members' insurance

Shelbyville's power board was again a topic of discussion for the city council -- this time over the fact that the five members get their insurance paid for by the power system.

At the end of Tuesday night's study session, councilman Thomas Landers told members of the city council they had "opened a can of worms ... a big one" by bringing up the topic of term limits for the power board last month.

Councilman Al Stephenson had requested at last month's study session that power board members should serve a couple of three-year terms and then sit out one term before applying to serve on the board again, but one week later, that item was pulled from the council's agenda.

Landers said many members of the public did not realize there were no term limits for board members, but they also did not know that the power system pays for their insurance as well.

"There are people that are calling me that are on boards meeting three or four times a month, and they are wondering why this board is more important than they are," Landers explained.

According to city recorder Betty Lamb, the council can ask the power board to change this, but they have no authority to do so themselves.

The power board is the only board that the city council appoints that are provided insurance, Lamb said, and Landers also confirmed this on Tuesday.

Landers said that the public needed to be aware that it cost around $60,000 a year to provide the five power board members and their families with insurance.

In fact, councilman Lee Roy Cunningham admitted to the other members that the main reason he had wanted to be on the power board several years back was the insurance.

Landers stated that he is always glad to hear from the public, but that it would be best if they addressed these particular concerns to the power board instead of the city council.

The power board currently consists of Henry Feldhaus, Johnny Donegan, Jim Warren, Clarence Lamb and power system manager David Crowell. Member Clara Nelson stepped down effective last week.

Landers also said that every city department is cutting back in an attempt to save money, and "I don't think it's really a responsible move" for the power system to pay board members' insurance.

He also said the insurance makes getting on the power board "more of a political game" and said that people should want to be on the board "for the right reasons."

Landers explained that many qualified citizens want to serve on the board, but do not want to go "through all the politics" to be on it.

He said there is nothing wrong with the people serving now, but "if they took that (insurance) out, I think they would get more of the right people to serve."

"If they got rid of the insurance, we wouldn't have to worry about this," Landers said, adding that the most pressure they receive as council members is the issue of the power board.

Landers also suggested the power board could do away with the insurance and use the money to help the elderly pay their energy bills.

An unidentified member of the audience spoke up and said that a Medicare supplement policy would cost the power board roughly $400 a year per person.

"That's a far cry from $60,000," he said.

Speaking about the term limits idea, council person Jo Ann Holland asked if the matter went to the state legislature to change the city's charter, was approved and returned to the council, would they have the four votes to pass it?

Holland added that she would not support the idea of term limits.

Council member Kay Rose said another can of worms would be opened if they placed term limits on just the power board, but not other government bodies.