Insurance company challenges Palm Coast bid process, alleging conflict of interest

Palm Coast Observer
News

Public Risk Insurance Advisors, which was not selected in the city’s bidding process for an insurance contract, is appealing the city’s decision. The city had decided to retain Preferred Governmental Insurance Trust even though PRIA had been ranked higher by city staff during the bidding process.

Addressing the City Council at its Oct. 6 meeting, Attorney Dennis Bayer, representing PRIA, said he appreciated City Council members’ commitment to retain an independent firm rather than using its usual firm, Garganese, Weiss D’Agresta & Salzman, P.A, as the city handles the bid challenge.

City wins national award

Palm Coast has won a national award based on its improvements in National Community Survey responses between 2017 and 2019, according to a city news release.

The Voice of the People Awards, presented by the International City & County Management Association and the Polco software company at the ICMA's virtual conference in September, honor local governments based on residents' feedback, according to the news release.

The city's award reflects improvements on the "Foundations of Livability" section of the survey, which covers residents’ views on the general direction of the local government, according to the news release.

Increases in scores in the following areas were used in the judging process:

Services provided by Palm Coast
Customer service
Value of services for taxes paid
Overall quality of life
Overall image
Place to live
Neighborhood

“Achieving this award speaks to the leadership and direction provided by City Council,” city administration coordinator Denise Bevan said, according to the news release. "The entire process begins with the City Council analyzing feedback from citizen survey. They assign departments to follow through with the specific recommendations and opinions, ensuring residents’ voices are heard as they execute the city’s Strategic Action Plan. “Feedback from our residents is critical to gauging their satisfaction and concerns.”

The city of Palm Coast also received a Voice of the People Award in 2014, for transformation in the economy section of the survey.

Bayer alleged that an attorney involved in the city’s end of the bid process had a conflict of interest because his firm represents the insurance company the city retained (PGIT).

The allegations of conflict of interest, Bayer said, are “serious allegations that we don’t take lightly.”

The City Council considered whether to hear the case itself or send it through a hearing officer who would make a recommendation to the council.

Councilman Nick Klufas said that as a non-expert, he was more comfortable sending the case to a hearing officer. Councilman Jon Netts agreed.

But Bayer preferred that the city not use a hearing officer.

The city’s hearing officer process, he said, would allow for a longer timeline than routing the case straight to City Council for a decision — potentially so long that the city would pass the Nov. 30 date on which its current coverage would end.

And, Bayer added, a hearing officer could filter the way the case is ultimately presented to the council.

Netts asked if Bayer would be comfortable with the city contracting the time frame for the hearing, and Bayer said he would.

The council decided to retain a hearing officer, but also to shorten the time frame for the hearing process to ensure that it doesn’t leave the city without insurance coverage.

"This event holds 10,000-15,000 people, and that’s too large of a gathering at this point. ... We are working with the Flagler County Rotary to do their Fantasy of Lights, so that will remain in the park."

— LAUREN JOHNSTON, Palm Coast Parks and Recreation director, on the city's decision not to hold its regular holiday parade this year