Agenda - Council - 11/27/2018 - Laserfiche WebLink

Home

CC Regular Session Meeting Date: 11/27/2018 By: Diana Lund, Finance 4. 10. Information Title Adopt Resolution # 18-240 Extending Fee Agreement with North Risk Partners-Bearence Management Group for Agent of Record Services for the City's Property, Casualty and Worker's Compensation Insurance Servcies Purpose/Background: Purpose: The city carries its liability and worker's compensation coverage through the League of Minnesota Cities. Each Municipality has a contracted representative, known as the Agent of Record, that acts on their behalf for these insurance services . Background: The City of Ramsey has had an agreement with North Risk Partners-Bearence Management Group (formally Bearence Management Group & T.C. Field & Company since 1997 for agent of record services for property, casualty and worker's compensation insurance services. The last formal agreement, which was for five years, ends on December 31, 2018. A separate premium is paid to North Risk Partners-Bearence for Worker's Compensation insurance, which is 2% of premiums paid. The 2% fee is incorporated within the total premium charged. The City has not yet received its 2019 General Liability and Worker's Comp billings, but for year 2018, these amounts were $194,506 and $202,530, respectively. The city has paid $6,200 for agent of record services for the last five years and the following amounts for years: 2011: $5,800; 2012: $6,000; 2013: $6,200. If the City would have stayed on the normal $200 annual increase, the current 2018 rate would have been $7,200. Notification: North Risk Partners-Bearence Management Group has submitted a five-year fee proposal for the years 2019-2023 with the constant rate of $7,000. Observations/Alternatives: The proposed agreement calls for a fee of $7,000 annually. In comparison, the neighboring cities of Champlin pays $24,000 annually, Anoka - $10,000 + 2% of Workers Compensation and Elk River - 7% of total liability and workers compensation premiums. Alternative # 1: Enter into five-year contract with North Risk Partners-Bearence Management Group for the annual fee of $7,000. Alternative #2: Do not accept the terms of the agreement and either bring back a renegotiated amount/term or request proposals from other firms. Funding Source: Agent of record fee is included in the annual General Fund Budget under professional services.