Laserfiche WebLink
Finance Committee <br />Date: 02/22/2011 <br />By: Diana Lund <br />Finance <br />Information <br />Title: <br />Consider Contract for Agent of Record for Property, Casualty, and Workers Compensation Insurance. <br />Item #: 4. 1. <br />Background: <br />The City of Ramsey has had an agreement with T.C. Field & Company (now known as Bearence Management <br />Group) since 1997 for agent of record services for property, casualty, and workers compensation insurance <br />services. The last formal agreement ended on December 31, 2010. A separate fee is paid to Bearence for Workers <br />Compensation insurance, which is 2% of premiums paid. The 2% fee is incorpated within the total premium <br />charged. For 2011, the City's General Liability totals $164,253 and Workers Compensation - $115,814. <br />At the Finance Committee of February 8, 2011, the Finance Committee made the recommendation that the City <br />Council authorize the agent of records fee for 2011 in the amount of $5,800. During this same committee meeting, <br />it was requested that staff approach the city's agent of record regarding the submittal of another two -year contract <br />for 2012 -2013 services. <br />The Insurance Service Agreement is attached for review. For 2012, the fee requested is $6,000 (3.5% increase) and <br />$6,200 in 2013 (3.3% increase). The City's In comparison, neighboring cities such as Champlin pay $24,000 <br />annually, Anoka - $10,000 + 2% of Workers Compensation premiums, and Elk River - 7% of total liability and <br />workers compensation premiums. <br />Recommendation: <br />Staff recommends authorizing the contract for agent of record services for 2012 -2013 and an increase of $200 to <br />the fee of Bearence Management Group for 2012 and $200, for contracted amounts of $6,000 and $6,200. <br />respectively. A resolution authorizing the contract and fees is attached for consideration. <br />Funding Source: <br />Agent of record fee is included in the annual General Fund budget under professional services. <br />Council Action: <br />Based on Finance Committee Discussion. <br />Attachments <br />Insurance Service Agreement <br />Resolution Authorizing Bearence Management Group Agent of Record <br />Form Review <br />Inbox Reviewed By Date <br />Kurt Ulrich Kurt Ulrich 02/17/2011 08:45 AM <br />Form Started By: Diana Lund Started On: 02/14/2011 08:00 AM <br />Final Approval Date: 02/17/2011 <br />