Shreveport cronyism: Mayor's new plan woefully underinsured city assets

Shreveport's new mayor, elected in November instituted a new insurance plan for city assets in what he called an effort to save the city money. What happened instead was that he handed the plan to a broker who was a donor to his campaign and the cousin of his campaign manager. The new plan has Shreveport paying $190,000 more than the previous plan at a 94% reduction in coverage.

When the city auditor uncovered it and took it to the council, the Mayor refused to show up to the emergency meeting and sent his CAO to defend it. When the broker was pressed by the City council he admitted hes never handled a municipal insurance policy before.

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Shreveport is facing a major insurance crisis. Currently the city has only $50 million dollars in property coverage. Last year, we had $800 million dollars in coverage.

Mayor Adrian Perkins decided to change companies shortly after taking office. His goal, as he explained earlier this year was to lower costs and bring in more minority participation. Well we are finding out this new policy with the Frost Company will actually cost substantially more for far less coverage.

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The Auditor notes that Shreveport has $815 million worth of insurable assets – think of our $92 million Independence Stadium, $85 million Convention Center, $55 million Hilton Hotel, etc. – but only $50 million in insurance coverage.
Yes … $815,000,000 in assets and $50,000,000 in coverage.
In 2018, when Arthur J. Gallagher & Co. still handled Shreveport’s insurance, we paid $555,000 in premiums to insure ALL $815,000,000 in assets.
Now, with Perkins’ pick, Frost Insurance of Dallas, handling our insurance, the city pays $745,000 in premiums, insuring only $50,000,000 in city assets.
Yes … Shreveport is paying just under $200,000 per year MORE in insurance premiums to insure only 6% of city assets.

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On point for Frost, in context, is Rod Sykes.
Sykes is said to be the first cousin of Joshua Williams. Williams is Mayor Perkins’ close friend, was his campaign manager, and is also a Caddo Parish Assistant District Attorney.

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Before Monday's public meeting, council members James Flurry, John Nickleson and Grayson Boucher met with Rodrelle Sykes who handled the city's new policy.
Nickelson says,"He did tell Councilman Boucher and Councilman Flurry and myself that he has never brockered insurance for a municipality.  Never before.  He has not done it one time before Shreveport.  My concern about that is that I don't want anybody learning how to be a municipal insurance broker or doing anything at a high level on the city's dime."

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