- December 4, 2025
The Ormond Beach City Commission was set to choose a new broker to manage its employee benefit plans at its meeting on Aug. 5, following discussion at a workshop.
The vote was tabled as commissioners — two of whom recused themselves from the vote due to potential conflicts of interest — didn't reach a consensus on whether to go with Brown and Brown or Foundation Risk Partners.
Brown and Brown proposed an annual fee of $50,000. Foundation Risk Partners proposed an annual fee of $99,102.
With a difference of almost $50,000 between the two, commissioners questioned the price disparity.
"We're talking apples and apples, we're talking the same service, the same coverage?" Commissioner Harold Briley asked.
A broker helps the city design the insurance plans for employees, negotiates rates, analyzes claims data and advocates for employees when it comes to billing claims and other issues that may arise, said Assistant City Manager Claire Whitley at the workshop. Both companies, she said, would provide the same service.
Brown and Brown is the current broker, and a five-year agreement with the city is set to expire in September. That agreement was based on commission, rather than a flat broker's fee.
Whitley said the only two differences between the two companies are the proposed fees and, from a staff perspective, the "relationships in Volusia County."
"And leveraging those relationships and having that history that Brown and Brown currently has with those providers," Whitley said.
Commissioner Travis Sargent abstained from the vote because he is employed by Foundation Risk Partners. Commissioner Lori Tolland also abstained as her son works for Foundation Risk Partners as well.
But, both commissioners spoke to a representative from the Florida Commission on Ethics, who said they could participate in the discussion.
Tolland asked Claire if the city knew how much it had spent on its broker's fee with Brown and Brown.
"Over the course of five years, no," Whitley said. "If you did the commission for this year based on this year's premium, it would be about 90,000, but it would have been less in previous years because it's based on the actual premium that's charged."
That's a big cut in commission, Sargent said.
"Are the services going to be less? I assume not, I would hope not," he said. "... At the end of the day, our residents are saving. I just hope that there's no service gaps, if you will."
The city's Open Finance transparency portal reports the city paid Brown and Brown $101,567 for "other insurance premiums" in 2024. The subcategory doesn't appear in 2023, but it does appear in 2022 at a cost of $20,758.
In an email interview with the Observer, Commissioner Kristin Deaton said she asked Foundation Risk Partners during the workshop if there was a difference in fees. The response? There could be.
"I do believe Foundation Risk Partners has the ability to bring new and innovative options that we may not have seen in past years," Deaton said. "I recognize the longevity and presence of Brown and Brown in the insurance industry, and I am eager to see if they are able to offer any additional benefits to our employees."
She favored tabling the vote because she said she wanted to ensure the commission had "all of the proper information." This included staff's scorecard and comments as to why points were awarded to each firm. (Brown and Brown was 100; Foundation Risk Partners was 78.)
Additionally, last year, the city first changed brokers from Brown and Brown to Foundation Risk Partners for its Property and Casualty Insurance, and while they had a higher broker fee, the company saved the city money on the premium.
The scorecards were not made available to the commission for the insurance workshop, and Deaton said that was important because both companies previously scored a 100 on the Property and Casualty Insurance scorecards; Foundation Risk Partners was chosen as the broker for that in late July, for an annual fee of $55,000.
"I was curious to review what has changed since then," Deaton said. "I am still curious why Brown & Brown changed from a commission-based structure to a lower, flat broker fee of $50,000. If this lower fee is truly their best price, I am curious why it wasn’t offered earlier."
Tabling the decision, Deaton added, "ensures we choose the firm that will deliver the best long-term results." The commission was also advised that a decision did not need to be made that night.
At the workshop, Mayor Jason Leslie said he was in favor of selecting the broker that would save the city money.
"I think it's just suicide for me to say, 'Yeah, I'm going to spend more money for a broker that's going to provide almost similar services to what we currently are going to have, or going to get," Leslie said.
The remaining voting commissioners — Briley and Deaton — said they wanted more time to think about the decision.
Tolland said that $50,000 looks "more attractive right off the bat."
"But I also am thinking about, at the end of the day, do you save more money with a company that may be more creative down the road?" she asked.
That's the unknown — the potential savings of going with either company.
"That would be the thing I would think about when you guys are voting, is the bigger picture," Tolland said. "Not just stuck on the brokerage fee, but I don't like the brokerage fee the way that it is either."
Leslie said he could appreciate the idea, but said it would be like putting "money in a slot machine." The city could save money by investing more, but there's no guarantee, he said, referencing that going with the higher-priced fee would be "political suicide" for him.
Deaton said that she struggled with FHP's higher fee cost, but would consider it if the company could convince the commission they would save them money in the long run.
In her interview with the Observer, Deaton said that asking for more information doesn't delay the policy renewal or cost taxpayers anything.
"Unfortunately, some misinformation has been shared online in ways that mislead residents," she said. "Our community deserves the full picture, not snippets taken out of context. My focus remains on providing the city’s employees with the best coverage possible while also making sure the taxpayers are getting the best deal possible. I encourage residents to contact city staff or their commissioners directly for accurate information."
The commission will revisit the issue at its Sep. 3 meeting.
