City Council proposes motion to end contract with insurance company

During Wednesday’s City Council Meeting, Mayor Doug Nicholls proposed a motion to exit a contract with Service Line Warranties of America early.

The Council reviewed the original agreement made with Service Line Warranties of America during the meeting. Around May, City Council approved a five-year marketing agreement with the company that allowed the company to use the City of Yuma logo to promote their services. Last month, a letter was sent to Yuma residents about the company’s services, but it looked like the letter was sent directly from the Mayor himself.

Mayor Doug Nicholls at the City Council Meeting said that they were all surprised to see the letter, and asked council to exit the contract earlier than expected.

After asking for feedback from other council members, Council Member Mike Shelton said the company’s act of sending the letter was a conscious move. Deputy Mayor Gary Knight had said it was aggressive marketing on the company’s end.

Council Member Edward Thomas mentioned the city should let the company fix themselves first.

City Council then made a decision to go into recess and call for an executive session. After returning from executive session, Mayor Douglas Nicholls proposed a motion to exit the contract with Service Line Warranties of America for using his name on the letter sent to Yuma residents.

ORIGINAL: Tonight’s City Council meeting will be discussing the incident that unfolded a few weeks ago between the City of Yuma Mayor and a homeowners’ insurance company.

The homeowners’ insurance company sent a letter to the public with City of Yuma Mayor Doug Nicholls’ signature without his approval.

Nicholls addressed the incident saying that he does not endorse the company or receives a fee from them.

The company is, however, allowed to use the City of Yuma’s logo in exchange for royalty fees.