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Spring Valley Averts Shut Down Following Insurance Flap

SPRING VALLEY, N.Y. (CBSNewYork) -- The Village of Spring Valley took action Friday to avoid a shut down after the village board failed earlier this week to renew its insurance policy, which was set to expire Monday.

The Spring Valley Board of Trustees held an emergency meeting Friday to authorize spending to renew the insurance policy, CBS 2's John Slattery reported.

Mayor Demeza Delhomme said he would never let the village shut down.

"You think I would allow the police cars go down? I can sign checks," Delhomme said.

Spring Valley May Shutdown Due To Insurance Standoff

The simmering problem came to a boil Tuesday when the Board of Trustees failed to approve the renewal for insurance.

Trustee Vilair Fonvil said the board did not authorize payment earlier this week because some of the trustees didn't receive all of the documentation from Delhomme and wanted to take a closer look at the policy, WCBS 880's Sean Adams reported.

"One week before the insurance expired and you say, 'Here, pay this bill,'" Fonvil said. "We would not be doing our job if we don't question these practices."

Fonvil said they received a copy of the policy on Thursday.

"I got to look at each increase at each point in the policy," said Trustee Asher Grossman.

"The renewal of insurance for Spring Valley is not the easiest in the world," added insurance broker Leonard Bender.

Many of the trustees wanted answers after the the price of the policy rose to $1.8 million per year, up from $1.67 million -- a 9.8 percent increase, Slattery reported.

Spring Valley Averts Shut Down Following Insurance Flap

At times, the discussion Friday became pointed toward the mayor.

"If the village does not have insurance by Monday it is your responsibility," said Fonvil.

Expired insurance would have shut down all village operations, including police, public works, village buildings and workers compensation. But with policy details delivered, those concerned were satisfied, Slattery reported.

"I appreciate the explanation, this is something that should have been done," Grossman said.

Fonvil promised a better process come next year, WCBS 880's Jim Smith reported.

"Then we'll be able to better shovel around," Fonvil said.

Now with the shut down averted, it should be business as usual come Monday in Spring Valley.

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