2009-27262 ResoRESOLUTION NO. 2009-27262
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE
CITY MANAGER PURSUANT TO REQUEST FOR PROPOSALS (RFP) NO. 54
08/09, FOR CLAIMS ADMINISTRATION SERVICES FOR THE CITY OF MIAMI
BEACH SELF-INSURED WORKERS' COMPENSATION PROGRAM;
AUTHORIZING THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS
WITH THE TOP-RANKED FIRM OF JOHNS EASTERN COMPANY, INC., AND
SHOULD THE ADMINISTRATION NOT BE ABLE TO NEGOTIATE AN
AGREEMENT WITH THE TOP-RANKED FIRM, AUTHORIZING THE
ADMINISTRATION TO NEGOTIATE WITH THE SECOND-RANKED FIRM
OF EMPLOYERS MUTUAL, INC.; AND FURTHER AUTHORIZING THE MAYOR
AND CITY CLERK TO EXECUTE AN AGREEMENT UPON THE COMPLETION
OF SUCCESSFUL NEGOTIATIONS BY THE ADMINISTRATION.
WHEREAS, the City of Miami Beach is approved by the Florida Department of
Labor and Employment Security/Division of Workers' Compensation to self-insure four
Workers' Compensation; and
WHEREAS, the Division of Workers' Compensation requires that the claims
administration be provided by a State Certified Workers' Compensation Claims
Administrator; and
'i
WHEREAS, the current Agreement for claims administration services expires on
January 31, 2010, with no further options to renew; and
WHEREAS, the Mayor and City Commission at its July 15, 2009 meeting,
authorized the Administration to issue an RFP for claims administration services for the
City of Miami Beach self-insured workers' compensation program; and
WHEREAS, on August 3, 2009, RFP No. 54-08/09 was issued, and notices sent to
over 75 firms, which resulted in the receipt of proposals from Employers Mutual, Inc.
(EMI); Johns Eastern Company, Inc.; PMA Management Corporation; and York
Insurance Services, Inc.; and
I
WHEREAS, on September 28, 2009 the City Manager via Letter to Commission
No. 257-2009 appointed an Evaluation Committee (the "Committee"), consisting of the
following individuals i
Rhonda Montoya Hasan, First Assistant City Attorney;
Brian Sliman, Division Major, Police Department;
Jesus Sola, Division Chief, Fire Department;
Drew Terpak, Director, Fleet Management;
Yaritza Velez, Miami Beach Resident, Graduate of Leadership Academy;
Alternate
Warren Green, CWA member-Pool Guard, Parks and Recreation Department; ands
i
WHEREAS, in further performing his due diligence, the City Manager requested
the Human Resources Department to reach out to each of the City's union Presidents to
select a representative to participate on the Committee and John Gresham was selected
by GSA to participate; and
WHEREAS, due to changes in duties within the Police Department, Commander
Hernan Cardeno was approved as a Committee replacement for Major Brian Sliman; and
WHEREAS, the Committee convened on October 21, 2009, and was provided with
an overview of the project, information relative to the City's Cone of Silence Ordinance and
the Government in the Sunshine Law and discussed and evaluated the proposals based
on the evaluation criteria as outlined in the RFP; and
WHEREAS, the Committee unanimously ranked Johns Eastern Company as the
top-ranked firm, and Employers Mutual, Inc. (EMI) was the second-ranked firm; and
WHEREAS, the City Manager concurs with the Committee's recommendation.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE C11
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and C
Commission hereby accept the recommendation of the City Manager pertaining to t
ranking of proposals pursuant to Request for Proposals (RFP) No. 54-08/09, for Clair
Administration Services for the City of Miami Beach Self-Insured Workers' Compensati
Program; authorize the Administration to enter into negotiations with the top-ranked fii
of Johns Eastern Company, Inc.; and should the Administration not be able to negoti~
with the top-ranked firm, authorize the Administration to negotiate with the second-rank
firm, Employers Mutual, Inc. (EMI); further authorizing the Mayor and City Clerk
execute an agreement upon conclusion of successful negotiations by the Administration.
PASSED and ADOPTED this 9th day Of December , 2009.
ATTEST:
W ~ Ll~l~
C TY CLERK OR
Robert Parcher Matti Herrera Bower
APIPROVED AS TO
FORM & LANGUAGE
T:\AGENDA\2009\Dec09\Consent\Workers'CompReso.doc ~~ ~=F~ ~ECUTION
~(e~
Date
Condensed Title:
COMMISSION ITEM SUMMARY
A Resolution Accepting The City Manager's Recommendation Pertaining To The Ranking Of Firms For
Claims Administration Services For The City's Self-Insured Workers' Compensation Program, Authorizing
The Administration To Enter Into Negotiations, And Authorizing the Mayor And City Clerk to Execute An
A reement.
Key Intended Outcome Supported:
Improve the City's overall financial health and maintain overall bond ratin
Supporting Data (Surveys, Environmental Scan, etc.):
N/A
Issue•
Shall the Commission Adopt the Resolution?
Item Summa /Recommendation:
The City is approved by the Florida Department of Labor and Employment Security/Division of Workers'
Compensation to self-insure for Workers' Compensation. Workers' Compensation is a statutory benefd
provided to employees that sustain injury within the course and scope of their employment. The Division
of Workers' Compensation requires that the claims administration be provided by a State Certified
Workers' Compensation Claims Administrator.
The current Agreement for claims administration services expires on January 31, 2010. The Mayorand City
Commission at its July 15, 2009 meeting, authorized the Administration to issue an RFP for claims
administration services for the City of Miami Beach self-insured workers' compensation program. RFP No.
54-008/09 was issued and sent to over 75 firms. Proposals were received from: Employers Mutual, Inc.
(EMI); Johns Eastern Company, Inc.; PMA Management Corporation; and York Insurance Services, Inc.
An Evaluation Committee appointed by the City Manager reviewed, scored and ranked the proposals.
Based on the published evaluation criteria, the Committee Members unanimously ranked Johns Eastern
Company, Inc. as the top-ranked firm, and Employers Mutual, Inc. (EMI) as the second-ranked firm.
~ Adopt the Resolution.
Advisory Board Recommendation:
Financial Information:
Ci Clerk's Office Le islative Trackin
Clifton Leonard, Risk Management
Sign-Offs:
D~patt tit Dlr~ r Assists City Manager City: Mar~r
RI GL PDW JMG
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® MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
To: Mayor Matti Herrera Bower and Members of the City Co fission
FROM: Jorge M. Gonzalez, City Manager
DATE: December 9, 2009
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY
MANAGER PURSUANT TO REQUEST FOR PROPOSALS (RFP) NO. 54~0810~
FOR CLAIMS ADMINISTRATION SERVICES FOR THE CITY OF MIAMI BEACH
SELF-INSURED WORKERS' COMPENSATION PROGRAM; AUTHORIZJNG THE
ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH THE TOP-RANKED
FIRM OF JOHNS EASTERN COMPANY, INC., AND SHOULD THE
ADMINISTRATION NOT BE ABLE TO NEGOTIATE AN AGREEMENT WITH
THE TOP-RANKED FIRM, AUTHORIZING THE ADMINISTRATION
TO NEGOTIATE WITH THE SECOND-RANKED FIRM OF EMPLOYERS
MUTUAL, INC.; AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK
TO EXECUTE AN AGREEMENT UPON THE COMPLETION OF
SUCCESSFUL NEGOTIATIONS BY THE ADMINISTRATION.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
FUNDING
$200,000 first year of agreement.
Funding is available from Risk Management Fund Account number 540-1790-000312.
KEY INTENDED OUTCOMES SUPPORTED
Improve the City's overall financial health and maintain overall bond rating.
BACKGROUND
The City of Miami Beach (the "City') is approved by the Florida Department of Labor and
Employment Secur7ty/Division of Workers' Compensation to self-insure for Workers'
Compensation. Workers' Compensation is a statutory benefit provided to employees that
sustain injury within the course and scope of their employment. Workers Compensation
provides both medical and indemnity (wage) benefits to the injured employee. The Division
of Workers' Compensation requires that the claims administration be provided by a State
Certified Workers' Compensation Claims Administrator.
Commission Memorandum
December 9, 2009
RFP No. 54-08/09-Claims Administration Services: Workers' Compensation
Page 2 of 4
On January 12, 2005, the Mayor and City Commission authorized the Administration to
execute an Agreement with Johns Eastem Company, as the State Certified Workers'
Compensation Claims Administrator. The Agreement period was for two (2) years with
renewal options for two (2) additional one-year periods. The Administration has continued
the Agreement through option years one (1) and two (2) for a total service agreement period
of four (4) years. The current Agreement expires on January 31, 2010, with nofurtheroptions
to renew.
The Mayor and City Commission at its July 15, 2009 meeting, authorized the Administration
to issue an RFP for claims administration services for the City of Miami Beach self-insured
workers' compensation program. The new contract will be for a period of two (2) years with
three (3), one-year options to renew, commencing on February 1, 2010, following the
expiration of the existing agreement.
RFP PROCESS
RFP No. 54-08/09 was issued on August 3, 2009, and the Procurement Division e-mailed, as
well as uploaded the RFP to BidSync.com, sending notifications to over 75 firms. This
outreach resulted in the receipt of four (4) proposals from the following firms:
• Employers Mutual, Inc. (EMI)
• Johns Eastern Company, Inc.
• PMA Management Corporation
• York Insurance Services, Inc.
On September 28, 2009, the City Manager via Letter to Commission No. 257-2009 appointed
an Evaluation Committee (the "Committee"), consisting of the following individuals:
Rhonda Montoya Hasan First Assistant City Attorney
Brian Sliman Division Major, Police Department
Jesus Sola Division Chief, Fire Department
Drew Terpak Director, Fleet Management
Yaritza Velez Miami Beach Resident, Graduate of Leadership Academy
Alternate
Warren Green CWA member- Pool Guard, Parks and Recreation Department
Warren Green was suggested by CWA to participate as an alternate Committee Member.
In further performing his due diligence, the City Manager requested the Human Resources
Department to reach out to each of the other City's union Presidents to select a
representative to participate on the Committee. John Gresham was selected by GSA to
participate. FOP and IAFF did not provide any names. ASFCME provided two names, but
were each deemed by Human Resources to have a conflict of interest with the project, and
ASFCME was requested to provide another name. No other names were provided by
ASFCME.
Due to changes in duties within the Police Department, Commander Heman Cardeno was
approved as a Committee replacement for Major Brian Sliman.
The Committee convened on October 21, 2009, and was provided with an overview of the
project, information relative to the City's Cone of Silence Ordinance and the Government in
the Sunshine Law. Hernan Cardeno was nominated as chairperson of the Committee.
Commission Memorandum
December 9, 2009
RFP No. 54-08/09-Claims Administration Services: Workers' Compensation
Page 3 of 4
The Committee was instructed to score and rank each proposal pursuant to the evaluation
criteria established in the RFP, which was as follows (total possible 100%):
• The proposer's qualifications and experience in providing Florida Workers'
Compensation administration services: Twenty Percent (20%)
• The qualifications and experience of the proposer's personnel that will be
assigned to the account: Twenty Percent (20%)
• Cost of services provided (fee): Thirty Percent (30%)
• Demonstration of successful prior performance in providing these services and
knowledge of Florida municipal agencies: Twenty Percent (20%)
• Proposer's references. Submit a list of Florida based current clients. Also
submit a list of clients which discontinued using your service in the past two
(2) years: Ten Percent (10%)
The Committee discussed the proposals and proceeded to score them as follows:
Committee Member Johns Eastern
Company, Inc. Employers
Mutual, Inc.
(EMI) PMA
Management
Corporation York
Insurance
Services, Inc.
Hernan Cardeno 95 1 42 2 19 3 14 4 ~
John Gresham 75 1 55 2 50 4 53 3
Rhonda Monto a Hasan 100 1 50 2 30 4 45 3 ~
Jesus Sola 95 1 80 2 75 3 50 4 ~
Drew Ter ak 100 1 30 3 35 4 57 2 ~
Yaritza Velez 92 1 67 3 66 4 69 2 ~
The Committee unanimously ranked Johns Eastern Company as the top-ranked firm. Johns
Eastem is the incumbent provider of workers' compensation claims administration services,
and has worked with the City of Miami Beach since 1985. The firm has a solid working
knowledge of the account, the claims administrators are known to the City, and have a local
presence. There have been no operational issues for the duration the business relationship.
Johns Eastem utilizes a proprietary claims system and provides reports and required
information to the City on a monthly basis, or more frequently as-needed. If anotherfirm were
to be awarded the contract, a data transfer of the existing records, including all historical
data, would be required prior to June 1, 2010. This would add additional cost as well as the
potential for loss of data or data integrity. Johns Eastern also has a Registered Nurse on the
team as a medical case manager.
Employers Mutual, Inc. (EMI) was the second-ranked firm. EMI utilizes anon-proprietary
claims administration system and does not have a nurse on staff, which would entail billing
the City for this service at an hourly rate. Their proposal indicated that additional staff would
be required to handle the City's business, if awarded the contract, which would result in a
learning curve for the new employees, as well as the firm in acquiring the City's workers'
compensation program.
Commission Memorandum
December 9, 2009 '
RFP No. 54-08/09-Claims Administration Services: Workers' Compensation
Page 4 of 4
CONCLUSION
The Administration recommends that the Mayor and City Commission approve the attached
resolution, which recommends the acceptance of the ranking of firms and authorizes the
Administration to enter into negotiations with the top-ranked firm of Johns Eastern Company,
Inc., and if the Administration is unable to negotiate an agreement with the top-ranked firm,
authorize the Administration to negotiate with the second-ranked firm of Employers Mutual,
Inc.; and further authorize the Mayor and City Clerk to execute an agreement upon the
completion of successful negotiations by the Administration.
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