Fort Walton Beach Council agenda — 05-22-2007 regular agenda — reading text

~ . xU) u. Q> ~ ~ ti=.....~ 9 .- g. 0 ~ c _ o en en~ ...... Q). D> en~ c~$...... I) c~ o=, oo.s=.=, g~ Q) o O-!c Coo=, oo. o~ o.~ c, g"" 1) en"- ( 1) ( oo. E.. E. . E. 0 x~. 0. 0.. D 9 Q) ~ 0: a)r;- 0 E. 0. ~ 2. . Q) u: 0' E. 2. 9 0; Q) .. Q) ..... - ....0 .- =,:!:! C) 2. 9 .. c .. en S t. O~~. Cf)~ t: U J ..... .... -.... 11).........-.....-- N ~ 0 . g, If.; ~ en 0. Cf) "" ti= ~ eI) N ~ J \"" 0.. s::. o ..- ..- C) tU U1 i co O-c- C- 0 I)- I en 0 t'IS~ sa #0 C') f t. O 1) E 0 O- CO  CITY COUNCIL MEETING May 22, 2007 Consent Agenda Consideration of a request to execute a release agreement regarding the settlement agreement between FL Dept of Financial Services, FL Dept of Legal Affairs, Office of the AG, Office of Insurance Reg and Brown & Brown, Inc Human Resources Director) Council Action 1 st 2nd Vote: CA- 4 Agenda Item Number:  CITY OF FORT WALTON BEACH MEMORANDUM DATE: May 16, 2007 TO: Joyce Shanahan, City Manager FROM: Mark Wiltsie, Human Resources Director SUBJECT: Brown & Brown, Inc. - Settlement Agreement BACKGROUND: Over the last several years the offices of the Florida Attorney General and Insurance Commission conducted an investigation into an allegation that the Florida insurance agency Brown & Brown, Inc. , did not properly disclose compensation received by all agents associated with policies that were written and issued by this company. Brown & Brown, Inc. is the parent company for the insurance agent the City uses as part of our property and casualty coverage through Preferred Governmental Insurance Trust ( PGIT). DISCUSSION: During the course of this investigation, Brown and Brown, Inc. agreed to enter into a settlement agreement with the State and agreed to a settlement sum of $4. 8 million dollars to conclude the matter. A copy of the settlement agreement is attached. In addition, as part of the settlement agreement, Brown & Brown, Inc. has agreed to pay $ 1. 8 million dollars to its Florida governmental entity customers of which the City of Fort Walton Beach is included. The City recently received written communication from the Office of the Attorney General offering the its share of the settlement which is $ 4, 433. For the City to secure these City proportionate funds a release and waiver form must be signed and executed by the City. A copy of the written communication and waiver is attached. RECOMMENDATION: Staff respectfully requests City Council authorize the City Manager to execute the release agreement which will provide the City the ability to receive its proportionate share of the settlement agreement between Brown & Brown, Inc. and the State of Florida. Respectfully submitted, A1,71~~ Human Resources Director Approved Not approved t' z:. ~ f""(!) Joyce Shanaha , City Manager  OFFICE OF THE ATTORNEY GENERAL i'~~ !.~ l. ..:-~ "' t ..: LAURA DAUGHERTY' Research Economist Antitrust Division ! , i 7' Ajft p li>>_. PL- Ol, The Capitol \ . ' J ( f' tV>:'" BILL McCOLLUM ll, /)i().':') t/ Tallahassee FL 32399- 1Q50 0/1 ^. :"(" 1179 ~,~ : '''' r:?