2004-25579 Reso
RESOLUTION NO. 2004-25579
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, WAIVING, BY 5/7THS
VOTE, FORMAL COMPETITIVE BIDDING, FINDING SUCH
WAIVER TO BE IN THE BEST INTEREST OF THE CITY,
AUTHORIZING THE MAYOR AND CITY CLERK TO RENEW THE
CITY'S POLICY WITH JEFFERSON PILOT FINANCIAL, FOR A
ONE YEAR PERIOD EFFECTIVE JUNE 1, 2004, AT NO
INCREASE IN THE PREMIUM OF $0.440 PER $100 OF
COVERED PAYROLL, TO PROVIDE LONG TERM DISABILITY
COVERAGE FOR THOSE EMPLOYEES COVERED UNDER THE
CITY'S 401 (A) DEFINED CONTRIBUTION RETIREMENT PLAN.
WHEREAS, the City has an existing policy with Jefferson Pilot Financial, to provide
long term disability insurance for those employees participating in the City's 40l(a) defined
contribution retirement plan benefits; and
WHEREAS, the City is obligated'to purchase an insurance police for employees in this
system which shall provide this benefit, as defined in Ordinance No. 92-2813; and
WHEREAS, the City has received no increase in premiums with Jefferson Pilot
Financial for the last three policy years, with the rate staying at 0.44 per $100 of covered payroll,
and the Administration is satisfied with the level of service being maintained; and
WHEREAS, the Administration would recommend that it is in the City's best interest to
waive competitive bidding and renew the current policy with Jefferson Pilot Financial, to provide
the benefits as set forth above.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission waive, by 5/7ths vote, formal competitive bidding, fInding such waiver to be in the
best interest of the City, and authorize the Mayor and City Clerk to renew the City's policy with
Jefferson Pilot Financial for a one year period, effective June 1, 2004, at no increase in the
premium of $0.44 per $100 of covered payroll, to provide long term disability coverage for those
employees covered under the City's 401 (a) defined contribution retirement plan.
PASSED AND ADOPTED this
26th
day of
,2004
ATTEST:
~O f ~~PRCNEDASTO
CITY CLERK FORM & LANGUAGE
& FOR CUnON
F:\HUMA\$aD\COMM.RJ:S\lUd Waiver L'fD.CanadaU
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Date
CITY OF MiAMI B'EACH
COMMISSION ITEM SUMMARY
lD
Condensed Title:
Requesting bid waiver for competitive bidding for the Long Term Disability policy required to cover those
employees under the City's 401 (a) defined contribution retirement plan, for year June 1,2004 through May
30, 2005.
Issue:
Should the City continue long term disability coverage with Jefferson Pilot Financial, for one year effective
June 1, 2004 with no increase in premium?
Item Summary/Recommendation:
The Administration recommends that the Commission approve the Resolution requesting waiver
of formal competitive bidding and accept the renewal presented by Jefferson Pilot Financial, for
a one year period of June 1, 2004 through May 30, 2005 while an RFP for long term disability
insurance is issued. The policy allows the City of Miami Beach to cancel without cause with 31
days advance written notice.
i'SO!>: Board Recommendation:
Financial Information:
Finance Dept.
Approved
Source of
Funds:
D
Ci Clerk's Office Le islative Trackin
Mayra Diaz Buttacavoli
Si n..()ffs:
Department Director
Assistant City Manager
, City Manager
AGENDA ITEM ~~7 I.
DATE '5-2(0 --ol(
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.miamibeachfl.gov
COMMISSION MEMORANDUM
From:
Mayor David Dermer and Date: May 26, 2004
Members of the City Commission
Jorge M. Gonzalez ~ ~ ~
City Manager () 0
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, WAIVING, BY 5/7THS VOTE, FORMAL
COMPETITIVE BIDDING, FINDING SUCH WAIVER TO BE IN THE BEST
INTEREST OF THE CITY, AUTHORIZING THE MAYOR AND CITY CLERK
TO RENEW THE CITY'S POLICY WITH JEFFERSON PILOT FINANCIAL,
FOR A ONE YEAR PERIOD EFFECTIVE JUNE 1,2004, AT NO INCREASE
IN THE PREMIUM OF $0.440 PER $100 OF COVERED PAYROLL, TO
PROVIDE LONG TERM DISABILITY COVERAGE FOR THOSE
EMPLOYEES COVERED UNDER THE CITY'S 401 (A) DEFINED
CONTRIBUTION RETIREMENT PLAN.
To:
Subject:
ADMINISTRATION RECOMMENDATION:
Adopt the Resolution.
ANALYSIS:
In 1992 the City added a defined contribution plan as an alternate pension plan for City
employees. Ordinance No. 92-2813 directed that the City purchase a long term disability
insurance policy to provide disability retirement benefits equal to two-thirds of the
employee's annual earnings, provided that the benefit not exceed $5,000 a month. This
benefit will commence upon the completion of the sixth month of such disability and
continue throughout the life of the disabled employee. The City's other various defined
benefit retirement plans have provisions for recognizing total retirement disability.
In 1993 the City entered into a contract with Ohio National Life Insurance Company. This
insurance coverage was not bid at that time, has been renewed throughout the years. In
2001, Ohio National Life Insurance was purchased by Canada Life Assurance, who
reduced the premium from $1.31 per $1 00 of covered payroll to $0.44 per $1 00 of covered
payroll. Currently there are approximately 400 employees covered under this plan with a
monthly premium averaging $7,000, based on an average monthly payroll of
$1,533,000.00 (for salaries up to $90,000). Canada Life Assurance (known as Jefferson
Pilot Financial effective March 1, 2004) has renewed the policy for a fourth year with no
change in premium. The current policy provides for cancellation by the City with 31 days
advance written notice.
It is the Administration's intent with the assistance of the City's Broker, Arthur J. Gallagher
and Company, to issue a Request for Proposals to determine the most appropriate
provider into the future. Extending the current provider will allow time to proceed with the
procurement process without a lapse in coverage for the employees.
CONCLUSION:
The Administration recommends the City Commission approve the Resolution requesting
waiver of formal competitive bidding and accept the renewal presented by Jefferson Pilot
Financial for a one year period of June 1, 2004 through May 30, 2005 and issue an RFP
for long term disability insurance.
JMG:PDW:MDB:ph
F:\HUMA.\$aII\COM\4-ME~ WaIYerMemo- LTD Canada ~.doc
~ccy-zs.-r79
SERVICE AGREEMENT
BETWEEN
JEFFERSON PILOT FINANCIAL INSURANCE COMPANY
AND
CITY OF MIAMI BEACH, FLORIDA
'If FOR G:::::N: 7.: :I:::::l~::RANCE
~<',.~--~ t l JA
It i,;-.J~ereby understood and agreed by the undersigned parties this I () day of
:J>c;Ff c;M..tKj), 2004 that JEFFERSON PILOT FINANCIAL, a Nebraska Corporation having
Its principal offices at 8801 Indian Hills Drive, Omaha Nebraska (Jefferson Pilot), and the CITY
OF MIAMI BEACH, FLORIDA (City), enter into a service agreement to provide group disability
insurance to the employees of the City of Miami Beach participating in the 401(a) Defined
Contribution Retirement Plan.
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,......
It is agreed that Jefferson Pilot will renew the contract for the plan year June 1, 2004 through
May 31, 2005, with no change in premiums, per City Resolution No. 2004-25579, which is
incorporated by reference hereto. Jefferson Pilot will provide the City with the following:
1. A non participating group Long Term Disability policy with coverage as outlined
in the policy schedule of benefits.
2. Monthly rate for the 200412005 plan year is $.44 per $100.00 of covered payroll
3. Brochures and all marketing materials necessary for enrollment.
4. On-line services are available for the following:
Submit claims and check status on-line
Check medical underwriting (evidence of insurability)
View and print group forms, claims reports, and administration guide
5. Ample supplies of applications and marketing materials for all new full-time City
employees
Performance Standards
Jefferson Pilot agrees to the performance guarantees below:
1. Account Management - a dedicated Service Representative! Account Manager
will be assigned to the City of Miami Beach. The Account Manager will be
responsible for communicating with the Human Resources Administrative Office
and its personnel. If a member concern escalates to the Human Resources
Administrative Offices, the Account Manager will be involved in solving the
problem.
2. Customer Service - Employee certificates available on-line or will be mailed to
the group
1
3. Member Services Telephone Response Time
A. Satisfactory response Time - 90% within 60 seconds
B. Satisfactory Abandon Rate - 5% or less
4. Claims Accuracy and Turn Around Time
A. Accuracy rate to include both procedural and financial accuracy of
93% subject to the receipt of complete and necessary documents
B. Turnaround time - 100% of all clean claims will be processed within
30 days.
5. Quality Assurance - Quality Assurance Consultants follow up and work closely
with providers and their staffs to achieve and maintain compliance with Jefferson
Pilot Financial Quality Assurance recommendations.
Termination of A2:reement bv the City:
The City has the right to terminate this Agreement without cause and/for its convenience by
providing thirty (30) days prior written notice to Jefferson Pilot. Said termination will be
effective as of the date specified by the City in such written termination notice.
Termination bv Jefferson Pilot Financial:
Jefferson Pilot has the right to terminate this Agreement by providing one hundred and twenty
(120) days prior written notice to the City. However, for non-payment of premium, Jefferson
Pilot has the right of thirty (30) days prior written notice.
Notices
All communications relating to the day-to-day activities shall be exchanged between the Project
Manager/Account Representative appointed by Jefferson Pilot and the Project Manager
designated by the City. Jefferson Pilot's Project Manager and the City's Project Manager shall be
designated by each party no later than the commencement date of the Agreement.
All other notices and communications in writing required or permitted hereunder may be
delivered personally to the representatives of Jefferson Pilot and the City listed below or may be
mailed by registered mail, postage prepaid (or airmailed if addressed to an address outside of the
city of dispatch).
Until changed by notice in writing, all such notices and communications shall be addressed as
follow:
TO PROVIDER:
Jefferson Pilot Financial Insurance Company
8801 Indian Hills Drive
Omaha, Nebraska 68114
402-361-7300
2
TO CITY:
City of Miami Beach, Fl.
Mayra D. Buttacavoli, Director of Human Resources & Risk Management
1700 Convention Center Drive, 3rd Floor
Miami Beach, Fl. 33139
305-673-7000 ext 6469
305-673-7529
E-mail: mbuttacavoli@miamibeachfl.gov
Notices hereunder shall be effective if delivered personally, on delivery; if mailed to an address
in the city of dispatch, on the day following the date mailed; and if mailed to an address outside
the city of dispatch on the seventh day following the date mailed.
LITIGATION JURISDICTIONNENUE
This Agreement shall be governed by and construed according to the laws of the State of
Florida. This Agreement shall be enforceable in Miami-Dade County, Florida, and if legal
action is necessary by either party with respect to the enforcement of any or all of the terms or
conditions herein, exclusive venue for the enforcement of same shall lie in Miami-Dade
County, Florida.
BY ENTERING INTO THE AGREEMENT, CITY AND JEFFERSON PILOT FINANCIAL
EXPRESSLY WANE ANY RIGHTS EITHER PARTY MAY HAVE TO A TRIAL BY
JURY OF ANY CIVIL LITIGATION RELATED TO, OR RISING OUT OF, THIS
AGREEMENT.
Signed and agreed this I ~day of
-
e son Pilot Financial
i
Vice President of Client Management
SUI'CUl /L ~Yfrftt/
Print name
At~
Secretary
~'y p~
City Clerk
!-k)CU 'Dm
Print Name
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
~.c"'-- {.cft/hY
City ''(f\L Date
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