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6 Based on the proposals which were submitted in response to the RFP, the committee unanimously recommended, and the Board approved, that The Gehring Group provide the consultant services at a cost of $30,000 to be paid in 12 equal monthly installments. Mr. Kurt Gehring, President of The Gehring Group signed a "Consultant's Certificatio- W' (see attached) included in the RFP, which states his firm is not engaged in the sale of insurance products. It has been recently discovered, however, that The Gehring Group does sell insurance products. Recommendation Based on the written opinion of the County Attorney (see attached memo dated July 1, 1999) and subsequent discussions with him, the committee recommends that the Board terminate the consultant agreement between Indian River County Board of County Commissioners and The Gehring Group effectively immediately. Administrator Chandler summarized the memorandum and reiterated the recommendation to terminate the contract with The Gehring Group. He believed staff could pick up the study based on the work done and bring back a recommendation to the Board by the end of August. Commissioner Ginn indicated she wished to review their report and Administrator Chandler advised that was not on the agenda today as staff had just recently received it and has not had the opportunity to review it. ChairmanMachtwas confused and askedAdministrator Chandlerwhatthe Boardwas being asked to do at this meeting, and Administrator Chandler responded "terminate the contract with The Gehring Group." Commissioner Ginn and Vice Chairman Adams wanted to hear from Mr. Gehring who had requested to speak. Kurt Gehring, 314 in Palm Beach County (sic), came to the meeting to apologize to the Board and to Indian River County. When he received the RFP for contracting services for consultant, there was a paragraph that was confusing as to what the County was looking for with an insurance consultant. He asked Purchasing whether he could offer a proposal if he did not receive any commissions on this particular group, also he put in writing that he would not receive any commissions. He understood it would be okay and he went forward. It was not until later that Mr. Baker noticed that they have agents and consultants on their letterhead that raised the question if they were actually an agent. He clarified that 95% of his business is municipal -based business and he receives a commission on 75% of that on an exclusive agent -of -record basis, meaning no matter where the business went, he received a commission. To him, this was not a conflict of interest. He understood that was the basis July 13, 1999 gOU 1 J J PAGE ��. M LJ