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<br /> <br />OF SUN <br /> <br />TO: <br /> <br />FROM: <br /> <br />DATE: <br /> <br />RE: <br /> <br />City of Sunny Isles Beach <br />18070 Collins Avenue, Suite 250 <br />Sunny Isles Beach, Florida 33160 <br /> <br />(305) 947-0606 City Hall <br />(305) 949-3 I 13 Fax <br />(305) 947-2150 Building Department <br />(305) 947-5107 Fax <br /> <br />City Commission <br />Norman S. Edelcup,Mayor <br />Lewis J. Thaler, Vice Mayor <br />Gerry Goodman, Commissioner <br />Roslyn Brezin, Commissioner <br />Danny Iglesias, Commissioner <br /> <br />A. John Szerlag, City Manager <br />Hans Ottinot, City AlIorney <br />,Jane A. Hines, CMC, City Clerk <br /> <br />MEMORANDUM <br /> <br />The Honorable City Commissi~ .~~ <br /> <br />Hans Ottinot, City Attorney U r::' - <br /> <br />June 8, 2007 <br /> <br />Proposed Resolution Approving the Release in "State of Florida v. Brown & Brown" <br /> <br />RECOMMENDATION: <br /> <br />This Proposed Resolution Approving the Release in "State of Florida v. Brown & Brown" is presented for <br />your consideration and approval. <br /> <br />REASONS: <br /> <br />The State of Florida recently entered into a Settlement Agreement with Brown & Brown, Inc. ("Brown"), <br />the insurance company that underwrites policies on behalf of the City of Sunny Isles Beach, Florida <br />("City"). The State alleged that Brown received undisclosed compensation in connection with insurance <br />coverage placed on behalf of certain Florida policyholders, including theCity. <br /> <br />Brown denied any wrongdoing; however, in an effort to avoid the expense of protracted litigation, Brown <br />and the State entered in the Settlement Agreement. Brown agreed to pay $3 million directly to the <br />Preferred Governmental Insurance Trust, $1.8 million for the benefit of other Florida governmental entity <br />policyholders of Brown (including the City), and $1 million in attorney's fees and costs to the State. <br />Brown further agreed to utilize compensation disclosure forms for all future insurance proposals. (A copy <br />of the Settlement Agreement is attached hereto as Exhibit "A"). <br /> <br />Brown's policyholders who execute a Release are entitled to payment under the Settlement Agreement. <br />The State advises that the City is entitled to $27,960.13, based upon its relative percentage of overall <br />premiums paid by Brown's Florida governmental entity policyholders from 1998 to 2005. The amount of <br />$27,960.13 was calculated by multiplying the City's relative percentage by the $1.8 million settlement <br />allotted for the benefit of Brown's Florida governmental entity policyholder. The proposed Resolution <br />will authorize the City to receive this settlement amount. <br /> <br />Agenda Item <br /> <br />Date <br />