Shreveport City Council members are seeking more supervision over the city's administration after they learned a decision by the mayor to change insurance left the city grossly under-insured but paying more for property insurance.

Monday, an internal auditor released a preliminary report that found the city’s property and casualty insurance procured by Mayor Adrian Perkins' administration covers $765 million less than last year’s policy but the city is paying $185,000 more.

The previous policy covered $815 million, while the current policy covers $50 million. Some examples of city property include the convention center valued at $84.7 million, Sci-Port valued at $31.8 million and Independence Stadium valued at $91.6 million.

“A first-year economics student, or finance student, could tell you that this building and the convention center is worth more than $50 million,” Councilman Grayson Boucher said. “If a tornado leveled the Convention Center and Government Plaza this weekend, the city would be about $75 million short of rebuilding those buildings. That would bankrupt the city.”

Perkins' Chief Administrative Officer Sherika Fields said the administration relied on advice from the Risk Management Division to procure the policy. She said she was assured multiple times that the premium was identical to last year’s policy. But Boucher and council member John Nickelsen said the insurance agent offered coverage up to $300 million and the city declined that coverage.

Council member LeVette Fuller said no one would have known the city was under-insured if the council didn’t initiate an investigation into the change of insurance agents. Gallagher, the previous insurance agent the city employed for 20 years, tipped the council off about the change early this year, and the council voted for an audit.

Perkins was not mayor yet when the order was made to cancel the contract with the previous broker. Mayor Ollie Tyler did not approve the action, Boucher said. Evelyn Kelly from Risk Management sent a letter to cancel the contract, but the internal audit has not determined who issued the order yet.

The new insurance agent, Rodrelle Sykes of Frost Insurance, told Nickelson he doesn't have any experience being an insurance broker for a city.

“I don’t want anybody learning how to be a municipal insurance broker or anything at a high level on the city’s dime,” Nickelson said.

The council passed an ordinance early this year that made it so it would have to approve any invoices paid for insurance. Monday, the council approved payment of up to $1.6 million in invoices to Frost, according to Internal Auditor Leanis L. Steward. The invoices were submitted 30 days late, according to sources. The council had to approve payment or the city's insurance would lapse.

There was some argument as to whether the mayor would be able to pay a remaining $250,000 fee in lieu of commission that the council did not approve. City Attorney Mekisha Creal said the mayor does have the authority to make that payment.

If the city canceled insurance with Frost, it would owe an $80,000 contract termination fee.

Sykes isn't the first professional the mayor has hired that has made Nickelson question whether the the right person for the job was being employed. A couple of council meetings ago, Nickelson questioned whether one attorney hired for a water and sewer project was qualified. He said an attorney hired to monitor the required disclosure of financial information had no experience with the issuance of bonds. A mistake in federal disclosure obligations could mean severe consequences, he said.

The council is also waiting on a second opinion from the Attorney General’s office as to whether the mayor has the authority to remove members of the Airport Authority Board. The mayor is attempting to replace three members of the board when their terms aren't over and at least one of the members being replaced, Margaret Shehee, threatened litigation.

Although council members agree they do not want to overstep the mayor’s authority, the combination of the concern over the city’s insurance policy as well as questionable appointments led to more than three council members calling for more supervision over the administration. The mayor has typically held more authority in Shreveport for generations, but the city council is criticizing that structure.

“We are not just going to be a rubber stamp for the administration,” Boucher said.