2010-27473 ResoRESOLUTION NO! 2010-27473
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA AUTHORIZING THE
MAYOR AND THE. CITY CLERK TO RENEW THE CITY OF
MIAMI BEACH'S CURRENT CONSULTING AGREEMENT WITH
GALLAGHER BENEFIT SERVICES, PROVIDING. CONSULTING
SERVICES IN DETERMINING THE CITY'S EMPLOYEE
BENEFIT PROGRAM ON A MONTH-TO-MONTH BASIS FOR A
PERIOD NOT TO EXCEED SIX (6) MONTHS BEGINNING
OCTOBER 1, 2010 AND ENDING MARCH 31, 2011.
WHEREAS, the City of Miami Beach (City) maintains a current agreement with
Gallagher Benefit Services, which provides consulting services for the City's benefit
programs for its employees and retirees, and is scheduled to expire on September 30,
2010; and
WHEREAS, the City issued RFP No. 49-09-10 for benefit consulting services,
and responses were received on August 13, 2010; and
WHEREAS, the Procurement Division will be convening and providing the
Evaluation Committee with those responses to the RFP, as provided by each vendor in
their respective proposals, for their evaluation and ranking; and
WHEREAS, the City Manager will then review the ranking and recommendation
of the Evaluation Committee, and present the results to the City Commission for their
approval and recommendation for an agreement; and
WHEREAS, .the expiration of the current agreement with Gallagher Benefit
Services is September 30, 2010, which prohibits the City from completing the
procurement process for a new benefit consulting service agreement; and
WHEREAS, the Administration recommends renewal of the current agreement
on a month-to-month basis, for a period not to exceed six (6) months until the
competitive bidding process is complete, resulting in the City's award of an agreement.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, authorizing the Mayor and
City Clerk to renew the City of Miami Beach's current consulting agreement with
Gallagher Benefit Services, providing consulting services in determining the city's
employee benefit programs on a month-to-month basis for a period no to exceed .six (6)
months beginning October 1, 2010 and ending March 31, 2011.
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PASSED and ADOPTED this ~~'~-day.of -Mber , 2010.
M OR
Matti- Herrera Bower
TEST:
~- ~ APPROVED AS T
O
ITY CLERK FORM & LANGUAGE
Robert Parcher . & FOR ELUTION"
City Attorney ~~ .Date
Jose Smith
COMMISSION ITEM SUMMARY
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A Resolution to renew the City's current consulting agreement with Gallagher Benefit Services
which provides consulting services regarding the City's employee benefit programs, on amonth-
to-month basis, for a period not to exceed six (6) months beginning October 1, 2010 and ending
March 31, 2011.
Condensed Title:
Ke Intended outcome Su orted:
• Attract and maintain a quality workforce.
• Ensure ex enditure trends are sustainable over the Ion term.
Supporting Data (Surveys, Environmental Scan, etc.):
I. 2007 Internal Support Functions Survey
• Overall satisfaction of benefits administration was rated 75.6% as excellent or good.
Should the current benefit consulting agreement with Gallagher Benefit Services be renewed on
a month-to-month basis, pending the results of the Evaluation Committee and subsequent
contract negotiations pursuant to RFP No. 49-09-10?
Issue•
item Summa /Recommendation:
The City's current agreement with Gallagher Benefit Services to provide consulting services for
the City's benefit programs for employees and retirees expires on September 30, 2010.
Responses to the City's RFP No. 49-09-10 for benefit consulting services were received August
13, 2010. The Administration is working with the Procurement Division on recommendations for
the Evaluation Committee to review these proposals. The Administration will begin negotiations
for a new agreement, once the Evaluation Committee provides its recommendation. At this time,
these recommendations will not be received prior to the expiration of the current agreement with
Gallagher Benefit Services on September 30, 2010. The Administration recommends renewal of
the current agreement on a month-to-month basis until the competitive bidding process is
complete, resulting in the City's award of an agreement.
Advisory Board Recommendation:
Financial Information:
Source of Amount Account
Funds: 1 N/A
2
3
OBPI Total
Financial Impact Summary:
The City's benefit consultant is paid through the commission payments from the City's medical
carrier a reement.
Cit Clerk's Office Le islative Trackin
Sue Radig, Human Resources Administrator I
Sign-Offs•
Department Director Assistant City Manager City Manager
Ramiro In uanzo Hilda M. Fernandez Jorge M. Gonzalez
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City of Miami Beach,1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
Tp: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: September 15, 2010
SUBJECT: A RESOLUTION OF THE MAYOR ND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA AUTHORIZING THE
MAYOR AND THE CITY CLERK TO RENEW THE CITY'S
CURRENT CONSULTING AGREEMENT WITH GALLAGHER
BENEFIT SERVICES PROVIDING CONSULTING SERVICES IN
DETERMINING THE CITY'S EMPLOYEE BENEFIT PROGRAM, ON
A MONTH TO MONTH BASIS FOR A PERIOD NOT TO EXCEED
SIX (6) MONTHS BEGINNING OCTOBER 1, 2010 AND ENDING
MARCH 31, 2011.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
FUNDING
Funding for the City's Benefit Consultant is provided through commission payments built into
the fees paid by the City to the medical plan carrier.
ANALYSIS
The City's current benefit consultant, Gallagher Benefit Services (Gallagher), provides
assistance to the City Administration indetermining the City's benefits programs including
actuarial support and analysis of the City's self-funded medical and dental plans; assist with
negotiations upon direction of the Administration with benefit carriers to obtain the best
prices, terms and conditions available; annual reporting summarizing the benefit programs in
place, anticipated market conditions, plan recommendations and strategies; provide
assistance ; in the interpretation of benefit related regulations and compliance; provide
support and guidance in the implementation and impact of the Federal Patient Protection
and Affordable Care Act; provide/conduct actuarial analysis and reporting as required for the
City's GASB 45 filings; and make recommendations to the City to guarantee continued,
affordable coverage for the employees and retirees.
This agreement was last awarded on July 6, 2005 and became effective onSeptember 1,
2005 for a period one (1) year with an option of four (4) one (1) year renewals. This
agreement expires on September 30, 2010.
Commission Memorandum
September 15, 2010
Benefit Consultant Agreement
Page 2 of 2
On July 14, 2010 the Mayorand City Commission approved the issuance of RFP No. 49-09-
10for Benefit Consultant Services to Provide Assistance in Determining the City's Employee
Benefits Program. On August 13, 2010, the City received proposals from six (6) consulting
firms.
The Administration is currently working with the Procurement Division on recommendations
for the Evaluation Committee to review these proposals. As soon as the Evaluation
Committee's recommendations are received, the Managerwill bring forth a recommendation
to the City Commission for award of an agreement. If approved, the Administration will
begin negotiations for benefit consulting services for a two (2) year agreement with three (3)
annual renewals.
CONCLUSION
In order to maintain existing service levels, it is recommended that the Mayor and City
Commission extend the current agreement with Gallagher Benefit Services, which will expire
on September 30, 2010, on a month-to-month basis, terminable at the discretion of the City
Manager, until such time that the competitive bidding process results in the award of an
agreement. This process may take from two (2) to six (6) months pending the review by the
Evaluation Committee, the City Manager's recommendation relative to ranking of firms, the
City Commission's review and approval and subsequent negotiations.
JMG/RI/sr