Letter raises questions; confuses residents over homeowners insurance

Letter looks like it came from Mayor Nicholls

Letter raises questions

Some local residents are upset with City of Yuma Mayor Doug Nicholls after they got a homeowners insurance letter in the mail with the mayor's signature on it, suggesting that the mayor endorsed the company.

It's a legitimate business that has an agreement with the city that allows them to use the city logo and to promote their services within the city.  

But residents are upset because it looks like the letter came directly from Mayor Doug Nicholls and they don't think the mayor should be endorsing any products or services. They believe it's a conflict of interest.

The mayor said he has no relationship with the company, that he did not sign the letter and that he personally does not receive money from the insurance company, Service Line Warranties of America; but, the mayor said the company pays a royalty fee to use the city logo. 

“It’s $5,000 the first year and then for every policy they sell through this effort then we get a little bit of a commission, if you would, off of that. It's not great, I mean this isn’t a huge revenue generator. But the idea from council was to have something that would be a source of revenue and provide something to the citizens that they might want to consider," said Nicholls.

The mayor said because of the incident there are now internal procedures in place within city administration so that he will be notified when his name is used. 

The mayor also said the city did not release any private resident information.

"The mailing list the company received was from a third party," said Nicholls.  

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