Consider Contract for Agent of Record for Property, Casualty, and Workers Compensation Insurance.

The City of Ramsey has had an agreement with T.C. Field & Company (now known as Bearence Management Group) since 1997 for agent of record services for property, casualty, and workers compensation insurance services.  The last formal agreement ended on December 31, 2010.  A separate fee is paid to Bearence for Workers Compensation insurance, which is 2% of premiums paid.  The 2% fee is incorpated within the total premium charged.  For 2011, the City's General Liability totals $164,253 and Workers Compensation - $115,814.

 

At the Finance Committee of February 8, 2011, the Finance Committee made the recommendation that the City Council authorize the agent of records fee for 2011 in the amount of $5,800.  During this same committee meeting, it was requested that staff approach the city's agent of record regarding the submittal of another two-year contract for 2012-2013 services. 

 

The Insurance Service Agreement is attached for review.  For 2012, the fee requested is $6,000 (3.5% increase) and $6,200 in 2013 (3.3% increase).  The City's In comparison, neighboring cities such as Champlin pay $24,000 annually, Anoka - $10,000 + 2% of Workers Compensation premiums, and Elk River - 7% of total liability and workers compensation premiums.  

 

 

Staff recommends authorizing the contract for agent of record services for 2012-2013 and an increase of $200 to the fee of Bearence Management Group for 2012 and $200, for contracted amounts of $6,000 and $6,200. respectively.  A resolution authorizing the contract and fees is attached for consideration.

Agent of record fee is included in the annual General Fund budget under professional services.

Based on Finance Committee Discussion.