99-23394 RESO
RESOLUTION NO. 99-23394
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, REJECTING ALL
PROPOSALS RECEIVED, PURSUANT TO REQUEST FOR
PROPOSALS (RFP) NO. 93-98/99 FOR AN EMPLOYEES BENEFITS
CONSULTANT TO PROVIDE FINANCIAL ANALYSIS FOR SELF-
INSURED AND INSURED GROUP MEDICAL PLANS AND TO
ASSIST IN THE PREPARATION AND EVALUATION OF
REQUEST FOR PROPOSALS FOR BOTH SELF-INSURED AND
INSURED GROUP MEDICAL PLANS; AND FURTHER
AUTHORIZING THE ADMINISTRATION TO REISSUE THE
REQUEST FOR PROPOSAL (RFP) FOR EMPLOYEE BENEFITS
CONSULTANT.
WHEREAS, on July 23, 1999 the City issued Request for Proposals (RFP) No. 93-98/99 for an
Employee Benefits Consultant to provide financial analysis for self-insured and insured Group Medical
Plans and assist in the preparation and evaluation of a Request for Proposals for both self-insured and fully
insured group medical plans; and
WHEREAS, ten (10) specification packages for RFP No. 93-98/99 were issued resulting in the
receipt of three (3) responsive proposals from the firms of Arthur 1. Gallagher and Co., Meadowbrook
Villari Agency, and lnterisk Corporation; and
WHEREAS, an Evaluation Committee recommended by the City Manager met on September 21,
1999, and October 20, 1999 to review and discuss the proposals; and
WHEREAS, after proposal presentations on September 21, 1999, the City became aware that
Arthur J. Gallagher & Co. might be in violation of the terms under a separate contract with the City for
Broker Services; and
WHEREAS, the Evaluation Committee failed to select a number-one ranked or number-two
ranked proposer due to the results of the oral presentations, the low number of responses to the RFP, and
concerns expressed regarding the contract with Arthur 1. Gallagher & Co.; and
WHEREAS, the Evaluation Committee recommended that the City reject all proposals received
and reissue the RFP for Employee Benefits Consultant; and
WHEREAS, the Administration concurs with the findings of the Evaluation Committee.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission
hereby authorize the Administration to reject all proposals received, pursuant to Request for Proposals
(RFP) No. 93-98/99 for an Employee Benefits Consultant to provide financial analysis for self-insured and
insured group medical plans and to assist in the preparation and evaluation of request for proposals for both
self-insured and insured group medical plans; and further authorizing the Administration to reissue the
Request for Proposal (RFP) for Employee Benefits Consultant.
PASSED AND ADOPTED this 17th day of
Novembe~t;, 1999.
Mayor
ATTEST:
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City Clerk
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APPROVED AS TO
FORNI & LANGUAGE
& FOR EXECUTION
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CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
http:\\ci.miaml-beach.fl.us
COMMISSION MEMORANDUM NO. {) 33-14
TO:
Mayor Neisen o. Kasdin and
Members of the City C mmission
DATE: November 17,1999
FROM:
Sergio Rodriguez
City Manager
#
SUBJECT: A RESOLUT 0 OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, REJECTING ALL PROPOSALS
RECEIVED, PURSUANT TO REQUEST FOR PROPOSALS (RFP) NO. 93-
98/99 FOR AN EMPLOYEES BENEFITS CONSULTANT TO PROVIDE
FINANCIAL ANALYSIS FOR SELF-INSURED AND INSURED GROUP
MEDICAL PLANS AND TO ASSIST IN THE PREPARATION AND
EVALUATION OF REQUEST FOR PROPOSALS FOR BOTH SELF-
INSURED AND INSURED GROUP MEDICAL PLANS, AND TO
AUTHORIZE THE ADMINISTRATION TO REISSUE THE REQUEST FOR
PROPOSALS (RFP) FOR EMPLOYEE BENEFITS CONSULTANT.
ADMINISTRA TION RECOMMENDATION
Adopt the Resolution.
ANAL YSIS
On July 22, 1999, the Mayor and Commission authorized the Administration to issue a Request for
Proposals (RFP) for an Employee Benefits Consultant to provide Financial Analysis for Self-Insured
and Insured Group Medical Plans and assist in the preparation and evaluation of Request for
Proposals for Self-Insured and Fully Insured Group Medical Plans.
Ten (10) specifications were issued, resulting in the receipt of proposals from the following three
(3) firms:
Arthur Gallagher and Co.
Meadowbrook Villari Agency
lnterisk Corporation
AGENDA ITEM elL
DATE~
An Evaluation Committee consisting of the following persons met on both September 21, 1999 and
October 20, 1999 to review and discuss the proposals:
Mary Greenwood, Executive Assistant to the City Manager/Labor Relations
Drew Terpak, Fleet Management Director and Group Insurance Board member
Audrea Hinds, Human Resources Administrator J
Georgie Echert, Assistant Finance Director
All three proposers were invited to participate in an oral presentation to the Evaluation Committee
on September 21, 1999. Interisk Corporation declined to participate in the oral presentation.
After the presentations on September 21, 1999, the City became aware that Arthur 1. Gallagher &
Co. may be in violation of the terms of a separate contract with the City. The contract provides for
an annual fee for broker services in lieu of commissions. Arthur 1. Gallagher & Co. admitted to
receiving commissions from property insurance policies purchased by the City. The City is currently
reviewing this matter to determine what action will be taken involving this contract. This
information was provided to the Evaluation Committee during the evaluation process.
The Evaluation Committee also expressed concern regarding the low response (i.e., 3) to the RFP
received by the City. The committee reviewed the vendor list utilized for the RFP process. The
vendor list consisted of mostly insurance agents/companies and not insurance/financial benefit
consultants. If the RFP is reissued, the vendor list will be expanded.
The Evaluation Committee failed to select a number-one ranked or number-two ranked proposer,
due to the following:
1. Overall response to the RFP.
2. Concerns regarding the low number of responses to the RFP.
3. Concerns involving the contract issues for the Service Agreement for Broker Services.
The Evaluation Committee recommends that the City reject all proposals received and reissue the
RFP for Employee Benefits Consultant. The Administration concurs with the findings of the
Evaluation Committee.
It is recommended that the Mayor and City Commission adopt this resolution rejecting all proposals
received and authorize that the reissuance of the RFP for Benefits Consultant.
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