Foundation Risk Partners poised to serve as Ormond Beach's next employee benefits broker

'For several years, we've had a good provider,' Commissioner Harold Briley said. 'But one thing I hear from Foundation Risk Partners is creativity and innovation.'


Foundation Risk Partners is located at 780 W. Granada Blvd. File photo by Jarleene Almenas
Foundation Risk Partners is located at 780 W. Granada Blvd. File photo by Jarleene Almenas
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The City of Ormond Beach will pursue a contract to have local company Foundation Risk Partners serve as its new broker to manage employee benefit plans.

During a City Commission workshop on Tuesday, March 24, officials heard proposals from FRP and The Gehring Group (which merged with Brown & Brown). This happened after commissioners tabled the selection of a broker last August, expressing an interest to switch, before ultimately deciding to extend its current contract with Brown and Brown in September as staff cited a need for more time to rebid the contract.

"For several years, we've had a good provider," Commissioner Harold Briley said. "But one thing I hear from Foundation Risk Partners is creativity and innovation."

Brown and Brown served as the city's broker for over 17 years, but due to the merger, going with the Gehring Group would have meant they were also going with a new broker.

Two commissioners will abstain from the future vote: Commissioner Travis Sargent works for Foundation Risk Partners and Deputy Mayor Lori Tolland's son works for the same company. 

Last year, commissioners had questioned a broker fee disparity between the two companies. Brown and Brown proposed a fee of $50,000 and FRP proposed $99,102. 

FRP's fee remained the same in its latest proposal for the city's five-year contract.

The Gehring Group proposed a $75,000 annual fee for the first three years, with fees of $77,250 for the fourth year and $79,500 for the final year of the contract. The Gehring Group proposed a three-year agreement, with options to renew for two additional years.

"I know there may be a disparity in the fees, but if we can realize savings within that five-year period, it may be worth it to do it," Briley said, speaking about switching to FRP. "I'll just say that I think there's opportunities for the city to be able to save money and still provide quality service." 

Commissioner Kristin Deaton said she's spoken to over 26 employees in different city departments and that the majority wanted to see change in the management of benefit plans.

"I'm going based solely on what the employees told me," Deaton said. "This is their insurance."

Mayor Jason Leslie inquired about whether the city has looked into going to a self-insurance model. 

Assistant City Manager Claire Whitley said it had been discussed in the past as the city looked at its strategic health care plan, but the commission didn't direct staff to go in that direction at the time.

"Doing self-insurance would require switching our carrier, and that was not something we were interested in at that time," Whitley said. "So that was one of the reasons, among others, why we didn't pursue self-funding."

Leslie was the only one of the three voting commissioners who said he wanted to go with The Gehring Group.

"If I was looking at this as an individual shopping for insurance, I'm going to go with whoever is going to provide the same level of services, but at a lower cost," he said.

 

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