HomeMy WebLinkAbout05-24-07 Minutes Special Session
CITY COMMISSION SPECIAL SESSION
Ocoee Commission Chambers
150 North Lakeshore Drive
Ocoee, Florida
May 24, 2007
Minutes
10:00 a.m.
I I. CALL TO ORDER
Mayor Vandergrift called the special session to order at 10: 14 a.m. in the Commission Chambers of
City Hall. City Clerk Eikenberry called roll and declared a quorum present.
Roll Call: Commissioner Hood (absent), Commissioner Anderson, Mayor Vandergrift,
Commissioner Keller (absent), and Commissioner Johnson.
Also present: City Manager Frank, Finance Director Horton, and City Clerk Eikenberry
II. CONSIDERATION OF ACCEPTING A SETTLEMENT AGREEMENT AND $76,969.91,
NEGOTIATED BY THE STATE AND BROWN & BROWN, INC. FOR THE CITY OF
OCOEE.
City Manager Frank said we have a settlement agreement before us with Brown & Brown, who
were the City's agent of record until we switched in 2004. The settlement agreement involves
Brown & Brown not admitting to any liability or transgressions in the past, but they have agreed
to pay a specific amount of money to the State and another amount to be split among the cities
that they represented between 1998 and 2005.
City Manager Frank said we have the choice to accept the settlement of $79,969.91, or we
determine that we do not want to do this and hire outside counsel to investigate and pursue our
own claim against Brown & Brown.
Mayor Vandergrift said the letter the received states that Brown & Brown, Inc. has agreed to
pay $1,800,000 to its Florida governmental entity customers.
Commissioner Anderson said that there is $3,000,000 in the settlement, the cities are getting
$1,800,000, and the state is getting $1,000,000, but it does not say where the other $200,000 is
going. He said he feels betrayed because Brown & Brown made false, fictitious, inflated,
artificial bids to us, and we paid them over and above the amount that Commission agreed on.
He inquired into what money they made on other policies over the course of five or six years.
Finance Director Horton said they handled all insurance policies including disability, multi-
peril, worker's comp, etc.; however it was a very small portion compared to the health insurance.
Commissioner Anderson said this has anti-trust issues throughout, and they are just paying a
small penalty for what they did. He feels the City should pursue legal action due to all the
projects that could not be done while we were over paying our insurance broker.
2
Mavor Vanderarift, seconded bv Commissioner Johnson, moved to accept the
settlement with Brown & Brown in the amount of $79,969.91. Vote was taken after
discussion.
Commissioner Anderson advised the Mayor and Commissioner Johnson that they were wrong
as he was exiting the room. Mayor Vandergrift asked Commissioner Anderson to return to the
dais so that they could continue a discussion and take the vote. Commissioner Anderson said
he thought they had finished and that he had pressed his vote button. Commissioner Anderson
returned to the dais.
Commissioner Johnson said he thinks that we should accept the settlement and move forward,
because even if they owed us more money it would cost too much to pursue a law suit against
them and he doesn't know if they could prove anything.
Commissioner Anderson stated he wants it on record that Brown & Brown lied to us.
After the discussion the vote was taken:
Motion carried 2-1, with Commissioner Anderson opposed.
I III. ADJOURNMENT
The meeting was adjourned at 10:54 a.m.
Attest:
APPROVED:
City of Ocoee