2011-27664 Reso RESOLUTION NO. 2011 -27664
A RESOLUTION OF HE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLIRIDA, ACCEPTING THE RECOMMENDATION OF THE
CITY MANAGER PU "SUANT TO REQUEST FOR PROPOSALS (RFP) NO. 16-
10/11 FOR INVEST! ATIVE AND ADJUSTING SERVICES FOR SELECTED
TORT LIABILITY • LAIMS AND WORKERS' COMPENSATION CLAIMS;
AUTHORIZING THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS
WITH HORIZON INV; STIGATIONS, INC. AS THE PRIMARY FIRM, AND KWIC,
INC. AS THE SECON FIRM; AND FURTHER AUTHORIZING THE MAYOR
AND CITY CLERK 0 EXECUTE AGREEMENTS UPON CONCLUSION OF
SUCCESSFUL NEGOTIATIONS BY THE ADMINISTRATION.
WHEREAS, the City equires the services of one (1) to two (2) experienced firms
to provide investigative (su eillance related) and adjusting services for selected tort
liability and workers' compe sation claims; and
WHEREAS, these s: rvices help to minimize fraudulent claims and protect the
assets of the City; and
WHEREAS, the curre t contract with Horizon Investigations, Inc. will expire on July
10, 2011, with no further options to renew; and
WHEREAS, the Mayor and City Commission, at its February 9, 2011 meeting,
authorized the Administratio to issue an RFP for investigative and adjusting services for
selected tort liability claims a d workers' compensation claims; and
WHEREAS, on Febr ary 14, 2011, RFP No. 16 -10/11 was issued, and notices
sent to over 30 firms, w ich resulted in the receipt of proposals from Horizon
Investigations, Inc. and KWII , Inc.; and
WHEREAS, on April ., 2011, the City Manager, via Letter to Commission No. 079-
2011, appointed an Evaluati.n Committee (the "Committee "), consisting of the following
individuals:
Emomotimi Brisibe, Sr. Assistant City Attorney, City Attorney Office;
Rafael Granado, Assi tant Director, Human Resources Department;
Janie Hayes, Reside t and Safety Committee Member;
Kathleen Kowall, Res dent and Leadership Academy Applicant;
Drew Terpak, Divisio Director, Fleet Management Division;
Alternate:
Silvia Winitzky, Resid nt and Co- President of Bayshore HOA; and
WHEREAS, due to conflict in scheduling with Emomotimi Brisibe and Drew
Terpak, both Rhonda Mont ya Hasan, First Assistant City Attorney, and Silvia Winitzky,
served as replacements on t e Committee; and
WHEREAS, the Comnittee convened on May 2, 2011, and was provided with an
overview of the project, information relative to the City's Cone of Silence Ordinance, the
Government in the Sunshine Law, listened to presentations and participated in a question
and answer session with each of the Proposers, and discussed and evaluated the
proposals based on the evaluation criteria as outlined in the RFP; and
WHEREAS, the Committee ranked Horizon Investigations, Inc. as the top- ranked
firm, and KWIC, Inc. as the second - ranked firm; and
WHEREAS, as the result of some concerns raised by the Committee about each of
the proposers, rather than recommending a top- ranked and a second - ranked firm, the
Committee unanimously reccmmended Horizon Investigations, Inc. as the primary firm,
and KWIC, Inc. as the secondary firm, whereby the City will be able to use both proposers
on an as needed basis; and
WHEREAS, the City Manager concurs with the Committee's recommendation.
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 accept the recommendation of the City Manager pertaining to the
ranking of proposals pursuant to Request for Proposals (RFP) No. 16- 10/11, for
Investigative and Adjusting Services for Selected Tort Liability Claims and Workers'
Compensation Clams; authorize the Administration to enter into negotiations with Horizon
Investigations, Inc. as the p - imary firm, and KWIC, Inc. as the secondary firm; further
authorizing the Mayor and City Clerk to execute a agreements upon conclusion of
successful negotiations by the Administration.
PASSED and ADOPTED this /5/- day of -kfle_ , 2011
•
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AY R
Matti Herrera Bower
ATTEST:
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CITY CLERK ? - . 0 s
Robert Parcher *f ;l..•�"" • APPROVED AS TO
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0RArE * $ & FOR CUTION
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COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution Accepting The City anager's Recommendation Pertaining To The Ranking of Firms For
Investigative and Adjusting Servi•es, Authorizing The Administration To Enter Into Negotiations, And
Authorizing The Mayor And City C'-rk To Execute Agreements.
Key Intended Outcome Supporte • :
Control costs of payroll, includin! salary and fringes /Minimize Taxes /Ensure expenditure trends are
sustainable over the long term.
Supporting Data: N/A
Issue:
Shall the Commission Adopt the - , esolution?
Item Summary/Recommendation
The City of Miami Beach requires t e services of one (1) to two (2) experienced firms to provide investigative
(surveillance related) and adjustin I services for selected tort liability and workers' compensation claims. The
City is self- insured for both tort lia • ility claims and workers' compensation claims. The current contract with
Horizon Investigations, Inc. will e 'ire on July 10, 2011, with no further options to renew.
The Mayor and City Commission .t its February 9, 2011 meeting, authorized the Administration to issue an
RFP for investigative and adjusti g services. The RFP did not include the Administration of the City's
Workers' Compensation program hich is under separate contract. RFP No. 16 -10/11 was issued and sent
to over thirty (30) firms. Proposal were received from Horizon Investigations, Inc. and KWIC, Inc.
An Evaluation Committee appoi ed by the City Manager reviewed, scored and ranked the proposals.
Based on the published evaluatio criteria, the Committee ranked Horizon Investigations, Inc. as the primary
firm, and KWIC, Inc. as the secon•ary firm.
It is recommended that the Mayo and City Commission adopt the resolution.
Advisory Board Recommendati • n:
N/A
Financial Information:
Source of ount Account
Funds:
1 $61,000 General Liability Claims Payments, Risk Management
Fund Acct #540 - 1792 - 000332
2 Workmen's Comp Claims Fund
$15 000 Acct #540 - 1792 - 000381
3
OBPI Total $75 000
Financial Impact Summa
City Clerk's Office Legi y ative T acking:
Gus Lopez ext 6641 '
Sign -Offs:
Deparnt 1 = t • As t City Manager C' Manager
RI / PDW JMG
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MIAMIBEA H AGENDA ITEM C 7 C
6=4 MIAMIBEMH ■
City of Miami Beach, 1700 Conventi• Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, ity Manager
DATE: June 1, 2011
SUBJECT: A RESOLUTION O THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FL • RIDA, ACCEPTING THE RECOMMENDATION OF THE
CITY MANAGER P RSUANT TO REQUEST FOR PROPOSALS (RFP) NO. 16-
10/11 FOR INVES GATIVE AND ADJUSTING SERVICES FOR SELECTED
TORT LIABILITY LAIMS AND WORKERS' COMPENSATION CLAIMS;
AUTHORIZING THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH
HORIZON INVEST! ATIONS, INC. AS THE PRIMARY FIRM, AND KWIC, INC.
AS THE SECONDA • Y FIRM; AND FURTHER AUTHORIZING THE MAYOR AND
CITY CLERK TO EXECUTE AGREEMENTS UPON CONCLUSION OF
SUCCESSFUL NE C OTIATIONS BY THE ADMINISTRATION.
ADMINISTRATION RECOM ENDATION
Adopt the Resolution.
FUNDING
$60,000 Funding is avails ole from Acct # 540 - 1792- 000332, General Liability Claims
Payments, Risk anagement Fund
$15,000 Funding is availaole from Acct #540 - 1792 - 000381, Workmen's Comp Claims
$75,000 Total Payments, isk Management Fund
KEY INTENDED OUTCOME . SUPPORTED
Control costs of payroll includi g salary and fringe; minimize taxes; and ensure expenditure
trends are sustainable over t e long term.
BACKGROUND /ANALYSIS
The City of Miami Beach req ires the services of one (1) to two (2) experienced firms to
provide investigative (surveil!: nce related) and adjusting services for selected tort liability
and workers' compensation ' laims. The City of Miami Beach is self- insured for both tort
liability claims and workers' compensation claims.
Investigative and adjusting s= rvices are a very important part of the City's self- insured tort
liability and workers' compen.ation program. These services help to minimize fraudulent
claims and protect the assets of the City. The current contract with Horizon Investigations,
Inc. will expire on July 10, 20 1, with no further options to renew.
Commission Memorandum
June 1, 2011
RFP #16 -10/11 Investigative and A.'usting Services
Page 2 of 4
The Mayor and City Comm ssion, at its February 9, 2011 meeting, authorized the
Administration to issue an R' P for investigative and adjusting services for selected tort
liability claims and workers compensation claims. The RFP did not include the
Administration of the City's orkers' Compensation program, which is under separate
contract.
The City contemplates enterin! into an agreement with the selected proposer(s) for an initial
term of one (1) year, with four 1 ) one -year renewal options, at the sole discretion of the City.
RFP PROCESS
RFP No. 16 -10/11 was issued on February 14, 2011, and the Procurement Division e- mailed
as well as uploaded the RFP o BidSync.com and BidNet, sending notifications to over 30
firms or individuals. A non- - ndatory pre - proposal meeting to provide information and
respond to questions from pr( spective proposers was held on February 25, 2011. On the
due date of March 15, 2011, o (2) proposals were received from the following firms:
• Horizon Investigations, In • .
• KWIC, Inc.
On April 6, 2011, the City Ma ager, via Letter to Commission No. 079 -2 -11, appointed an
Evaluation Committee (the "C•mmittee "), consisting of the following individuals:
Emomotimi Brisibe Sr. ssistant City Attorney, City Attorney Office
Rafael Granado Assi.tant Director, Human Resources Department
Janie Hayes Resi•ent and Safety Committee Member
Kathleen Kowall Res'.ent and Leadership Academy Applicant
Drew Terpak Divi • ion Director, Fleet Management Division
Alternate:
Silvia Winitzky Resi•ent and Co- President of Bayshore HOA
Due to conflict in schedulin• with Emomotimi Brisibe and Drew Terpak, both Rhonda
Montoya Hasan, First Assista t City Attorney, and Silvia Winitzky, served as replacements
on the Committee.
The Committee convened on ay 2, 2011, and was provided with an overview of the project,
information relative to the Ci 's Cone of Silence Ordinance and the Government in the
Sunshine Law. Cliff Leonard, " isk Manager, addressed the Committee and provided general
information on the scope of services. The Committee then listened to brief proposal
overviews and participated i a question and answer session with each of the two (2)
Proposers.
The Committee was instructe • to score and rank each proposal pursuant to the evaluation
criteria established in the RF °, which was as follows (total possible 100 points):
• Experience and qualificati•n of the firm — 20 points
• Experience and qualificati•ns of the key personnel — 20 points
• Proposed fees — 30 point%
• Evidence of financial stab lity — 10 points
• Methodology and approa h — 10 points
• Client references — 10 po nts
Commission Memorandum
June 1, 2011
RFP #16 -10/11 Investigative and Adjusting Services
Page 3 of 4
The Committee discussed the proposals and proceeded to rank and score as follows:
Rafael Rhonda Kathleen Silvia Low Aggregate
Granado Montoya Kowall Winitzky Totals and
Hasan (Ranking)
Horizon
Investigations, 1 (85) 1 (85) 1 (87) 2 (80) 5 (1)
Inc.
KWIC, Inc. 2 (84) 2 (75) 2 (84) 1 (90) 7 (2)
The Committee ranked Horizon Investigations as the top- ranked firm, having received four
(4) out of five (5) number one rankings.
Horizon Investigations was founded in 1985, and has been providing investigative services
to the City for over 14 years. There are three (3) full time licensed investigators on staff, in
addition to the CEO and the President, who are also licensed investigators. These two (2)
principals have been in charge since the firm was founded. The President, Mr. Lee
Goldwich, is also a licensed adjuster.
The services Horizon has provided to the City over the years have been consistent and
reliable, and their reporting and hourly billing rates have efficiently met the requirements of
the City's Risk Management Division.
On the negative side, during their discussions with Horizon the Committee did not deem
there was sufficient financial information provided, and it came to light that Horizon's
corporate office is facing foreclosure. The principals indicated that they are working on a
refinancing arrangement, and that there would be no impact on their ability to provide the
required services to the City.
KWIC, Inc. was founded in 1977 by a former Special Agent in Charge of the Miami Field
Office of the Federal Bureau of Investigation (FBI), Kenneth Whittaker, Sr. The Company is
currently operated by the founder's son, Kenneth Whittaker, Jr., who has been the President
and owner since 1983.
While the required services would be sub - contracted by KWIC, Mr. Whittaker has four (4)
licensed investigators that he contracts locally and a strong network of former FBI agents
and licensed investigators nat onally. The adjusting services will also be contracted out. The
City's Risk Manager indicated that he has only outsourced the adjusting services once in the
past sixteen (16) years.
The Committee discussed their concern about KW IC's lack of full time staff, and the limited
revenue on their balance sheet, even though KWIC provides services for clients such a
Publix and Home Depot.
As a result of some concerns raised by the Committee about each of the proposers, rather
than recommending a top - rarked and a second - ranked firm, the Committee unanimously
recommended Horizon Investigations, Inc. as the primary firm, and KWIC, Inc. as the
secondary firm. By utilizing this selection methodology, the City will be able to use both
proposers on an as needed basis.
Commission Memorandum
June 1, 2011
RFP #16 -10/11 Investigative and Acjusting Services
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 Horizon Investigations, Inc. as the primary firm,
and KWIC, Inc. as the secondary firm; and further authorizes the Mayor and City Clerk to
execute agreements upon the completion of successful negotiations by the Administration.
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