2018-30244 ResolutionRESOLUTION NO. 2018 -30244
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE
CITY MANAGER PURSUANT TO INVITATION TO NEGOTIATE (ITN) NO. 2018-
003 -JC, FOR INSURANCE CERTIFICATE TRACKING SYSTEM AND RELATED
SERVICES, AND AUTHORIZING THE ADMINISTRATION TO ENTER INTO
SIMULTANEOUS NEGOTIATIONS, WITH EXIGIS, LLC, AS THE TOP RANKED
PROPOSER, AND COMPLIANCE HUB, AS THE SECOND HIGHEST RANKED
PROPOSER; FURTHER, AUTHORIZE THE CITY MANAGER TO SELECT THE
FINAL PROPOSER DEEMED BY THE CITY MANAGER TO OFFER THE BEST
OVERALL TERMS AND SERVICE TO THE CITY; AND FURTHER AUTHORIZE
THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT WITH THE
FINAL SELECTED PROPOSER, UPON CONCLUSION OF SUCCESSFUL
NEGOTIATIONS BY THE ADMINISTRATION.
WHEREAS, the Human Resources Department - Risk Management Office requires a
certificate of insurance tracking system for contractors, firms or individuals doing business with
the City to ensure they carry and maintain the appropriate levels of insurance as determined by
the City; and
WHEREAS, the Palm Beach County Contract No. 13- 100 -MW, for certificate of insurance
tracking system was competitively bid and awarded to Insurance Tracking Services, Inc.; and
WHEREAS, on or about May 21, 2014, pursuant to Section 2 -369 of the City Code, the
City Manager approved the award of a "piggyback" contract, for the City to utilize the competitively
solicited Palm Beach County Contract No. 13- 100 -MW, for a certificate of insurance tracking
system; and
WHEREAS, in preparation for the future expiration of Palm Beach County Contract No.
13- 100 -MW, the Administration prepared Invitation to Negotiate (ITN) 2018- 003 -JC, as a
replacement option; and
WHEREAS, on December 13, 2017, the City Commission approved the issuance of
Invitation to Negotiate (ITN) No. 2018 - 003 -JC, for Insurance Certificate Tracking System and
Related Services; and
WHEREAS, on December 18, 2017, the ITN was issued; and
WHEREAS, a non- mandatory pre - proposal conference to provide information to the
proposers submitting a response was held on January 10, 2018; and
WHEREAS, ITN responses were due and received on February 9, 2018; and
WHEREAS, the City received a total of five (5) proposals from the following proposers:
American Management Control Systems; Compliance Hub; Exigis, LLC; Insurance Tracking
Services, Inc; and JDI Data Corporation; and
WHEREAS, Procurement performed due diligence and determined that the proposals
received from American Management Control Systems, and JDI Data Corporation, failed to meet
the Minimum Eligibility Requirements of the ITN (Appendix C (pg. 25), and Insurance Tracking
Services, Inc, and failed to include the fully completed and executed Proposal Certification,
Questionnaire & Requirements Affidavit Certification Form (Appendix A (pg. 22), as stated in the
ITN, and, accordingly, each of the foregoing proposers was deemed non - responsive; and
WHEREAS, on February 18, 2018, via LTC # 067 - 2018, the City Manager appointed the
Evaluation Committee (the "Evaluation Committee "), which convened on February 28, 2018, to
consider the proposals submitted; and
WHEREAS, the Evaluation Committee's process resulted in Exigis, LLC, as the top -
ranked proposer, and Compliance Hub, as the second - ranked proposer; and
WHEREAS, after reviewing the qualifications of each firm, and having considered the
Evaluation Committee's comments and rankings, the City Manager has recommended that that
the Mayor and City Commission authorize the Administration to enter into simultaneous
negotiations with Exigis, LLC, as the top ranked proposer, and Compliance Hub, as the second
highest ranked proposer; and,
WHEREAS, the City's current contractor is in default of its contractual obligations to the
City, making it more difficult for the City to administer its insurance program and proactively
identify lapses in vendor insurance policies, thereby creating the potential for gaps in insurance
and increasing the risk of liability to the City; and
WHEREAS, in view of the circumstances, it is imperative that a replacement contract
be awarded as quickly as possible to mitigate risks and limit the City's exposure; and
WHEREAS, pursuant to Section 2- 371(a)(2) of the City Code, bidders are afforded the
opportunity to file a protest concerning the City Manager's award recommendation, for up to two
(2) days following the release of the notice of the City Manager's written recommendation to the
City Commission for award of the bid in question; and
WHEREAS, notwithstanding the above, in view of the unforeseen circumstances relating
to the default of the current provider's contractual obligations, the City Manager finds that,
pursuant to Section 2- 371(h) of the City Code, the award of the ITN "must be made without delay,
in order to protect the substantial interests of the City."
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, accept the recommendation of the
City Manager pursuant to of Invitation to Negotiate (ITN) No. 2018- 003 -JC, for Insurance
Certificate Tracking System and Related Services, and authorize the Administration to enter into
simultaneous negotiations, with Exigis, LLC, as the top ranked proposer, and Compliance Hub,
as the second highest ranked proposer; further, authorize the City Manager to select the final
proposer deemed by the City Manager to offer the best overall terms and service to the City; and
further authorize the Mayor and City Clerk to execute an agreement with the final selected
proposer, upon conclusion of successful negotiations by the Administration.
PASSED AND ADOPTED this
ATTEST:
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Rafael Manado, City Clerk
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day of "rC,A, 2018.
Dan Gelber, Mayor
APPROVED AS TO
FORM & LANGUAGE
&FOR EXECUTION
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City Attorney (t)iff Date
MIAMI BEACH
Resolutions - R7 J
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: March 7, 2018
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
INVITATION TO NEGOTIATE (ITN) NO. 2018- 003 -JC, FOR INSURANCE CERTIFICATE
TRACKING SYSTEM AND RELATED SERVICES, AND AUTHORIZING THE ADMINISTRATION
TO ENTER INTO SIMULTANEOUS NEGOTIATIONS, WITH EXIGIS, LLC, AS THE TOP RANKED
PROPOSER, AND COMPLIANCE HUB, AS THE SECOND HIGHEST RANKED PROPOSER;
FURTHER, AUTHORIZE THE CITY MANAGER TO SELECT THE FINAL PROPOSER DEEMED
BY THE CITY MANAGER TO OFFER THE BEST OVERALL TERMS AND SERVICE TO THE
CITY; AND FURTHER AUTHORIZE THE MAYOR AND CITY CLERK TO EXECUTE AN
AGREEMENT WITH THE FINAL SELECTED PROPOSER, UPON CONCLUSION OF
SUCCESSFUL NEGOTIATIONS BY THE ADMINISTRATION.
RECOMMENDATION
Adopt the Resolution.
ANALYSIS
It is standard operating procedures to require vendors, contractors and others conducting business with the City to provide
insurance coverage with limits, terms and conditions that reduce the City's exposure to financial loss and sometimes costly
litigation for work performed. The process of tracking certificates of insurance for compliance with contract requirements is a
cumbersome, time consuming, but necessary task that ultimately transfers risk away from the City.
The City has over 1500 agreements (contracts, purchase orders, permits, and leases), most having insurance requirements that
are applicable to the type of goods and services provided through the agreement. The Procurement Department works closely
with Risk Management in a continuing effort to maintain vendor /contractor compliance on existing contracts. The Administration
is seeking the most efficient and effective methodology to perform certificate of insurance tracking. Rather than add additional
staffing to perform this necessary work, as many agencies do, the Administration believes greater efficiencies can be gained by
contracting these services to industry experts in the field of insurance compliance.
Currently the City had been utilizing a piggybacked contract, awarded by Palm Beach County (Contract 13-100 -
MW), to Insurance Tracking Services, Inc. ( "ITSI "). However, ITSI has defaulted on its contractual obligations (See Attachment
A). As a result, the Administration is seeking to expeditiously secure a replacement agreement, pursuant to the ITN, in order to
continue providing these critical services to the City.
ITN PROCESS
On December 13, 2017, the City Commission approved the issuance of Invitation to Negotiate (ITN) No. 2018 - 003 -JC, for
Insurance Certificate Tracking System and Related Services. On December 18, 2017, the ITN was issued. A mandatory pre -
proposal conference to provide information to the proposers submitting a response was held on January 10, 2018. ITN
responses were due and received on February 9, 2018. The City received a total of five (5) proposals. The City received
proposals from the following proposers: American Management Control Systems, Compliance Hub, Exigis, LLC, Insurance
Tracking Services, Inc, and JDI Data Corporation. During the course of Procurement's responsiveness assessment, it was
determined that the following three (3) proposers, American Management Control Systems, JDI Data Corporation, and
Insurance Tracking Services, Inc, failed to meet either the ITN's minimum requirements or neglected to submit a fully executed
proposal as required.
The Evaluation Committee appointed by the City Manager, pursuant to LTC# 067 -2018, convened on February 28, 2018 to
consider the two (2) responsive proposals received from Compliance Hub and Exigis, LLC. The Committee was comprised of
Andrew Bejel, Risk & Benefits Analyst, Risk Management, City of Miami Beach; Georgette Daniels, Financial Analyst III,
Emergency Management, City of Miami Beach; and, Allan Gonzalez, Contracts Compliance Officer, Procurement, City of Miami
Beach.
The Committee was provided an overview of the project, information relative to the City's Cone of Silence Ordinance and the
Government in the Sunshine Law. The Committee was also provided with general information on the scope of services and a
copy of each proposal. The Committee was instructed to score and rank each proposal pursuant to the evaluation criteria
established in the ITN. The ITN required that the Committee score and rank proposers in the following areas: 1) experience and
qualifications 2) scope of services and 3) approach and methodology.
Scores for qualifications and Approach. The following table indicates the results of the Committee's scoring of 1) experience and
qualifications 2) scope of services and 3) approach and methodology.
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Compliance Hub
According to their proposal, Compliance Hub has been providing insurance certificate tracking certificate management services
for public and private agencies since 2010. Compliance Hub designed a cloud -based tracking solution, going live in 2011 to
support the Pasadena Unified School District (PUSD). Since that time, Compliance Hub has continued to support private and
public agencies in their certificate compliance efforts included the following clients, City of South Gate, San Jose Water
Company, County of Kern, California, and Southern California Gas Company.
Exigis, Li,C
According to their proposal, Exigis, LLC, combines over 15 years' experience providing enterprise solutions to over 120 public
and private sector agencies and organizations. Exigis has developed a risk management automation system, called RiskWorks.
This full- service certificate management system leverages proprietary, web -based automation to fulfill the needs of ITSI diverse
clientele. Exigis provides certificate management services to large and small public and private sector clients, including the
following, City and County of San Francisco (CCSF), CSAC Excess Insurance Authority, IBM, Pfizer, MARS, San Bernardino
County, The Port Authority of New York and New Jersey, and Miami -Dade Public Schools.
CONCLUSION
As previously noted, the City requires that most contractors, firms or individuals doing business with the City carry the
appropriate levels of insurance as determined by the Risk Management Office, including (but not limited to) all contractors
performing work for the City, those leasing City properties, beach concessionaires, valet parking firms, business tax receipt
(BTR) applicants, and those utilizing City facilities for events. Requiring and monitoring compliance with insurance requirements
mitigates risk and reduces the City's exposure in all operational areas of the City. An online insurance tracking and compliance
system expedites compliance with insurance requirements and provides efficiencies in the monitoring process. The City, until
very recently, had contracted Insurance Tracking Services, Inc. ( "ITSI ") for the online tracking services. Unfortunately, ITSI has
defaulted on its contractual obligations, which subsequently resulted In its contract having to be terminated (See Attachment A).
Therefore, it is imperative that a replacement contract be awarded as quickly as possible to mitigate risks.
I have reviewed all submissions and the results of the evaluation process. In doing so, I note that the Evaluation Committee has
unanimously ranked Exigis, LLC as the top - ranked proposer, followed by the unanimous ranking of the Compliance Hub as the
second- ranked proposer. In considering the qualifications of both firms, I find that each the required experience to perform the
services. Additionally, each firm has experience with public sector clients with needs similar to the City's. Therefore, I find that it
is in the City's best interest to negotiate with both firms to arrive at the agreement that provides the City with the best
combination of quick implementation and cost effectiveness.
Therefore, I recommend that the Mayor and City Commission approve the resolution authorizing the Administration to enter into
simultaneous negotiations with Exigis, LLC, as the top ranked proposer, and Compliance Hub, as the second highest ranked
proposer. Additionally, given the time sensitivities of these services, I recommend that the Mayor and City Commission authorize
the City Manager to select and execute an agreement, upon review and approval of the City Attorney, with the firm deemed by
the City Manager to be in the best interest of the City. Further, I find that, pursuant to Section 2- 371(h) of the City Code, the
award must be made without delay in order to protect the substantial interests of the city.
KEY INTENDED OUTCOMES SUPPORTED
Strengthen Internal Controls To Achieve More Accountability
FINANCIAL INFORMATION
The cost of the related services, determined upon successful negotiations, are subject to funds availability approved through the
City's budgeting process. Grant funding will not be utilized for this project.
Legislative Tracking
Human Resources/Procurement
ATTACHMENTS:
Description
a Attachment A
a Resolution
IA !BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, FL 33139, www,micirnibeachfl.gov
Jimmy L. Morales, City Manager
Tel: 305-613-1010, Fax: 305-673-7782
March 2, 2018
Rick Lopez
Insurance Tracing Services, Inc.
110 W. Ocean Blvd., Suite 602
Long Beach, CA 90802
Email: rick.lopezPinstrackind,com
Joseph Chaparo, Esq,
Insurance Tracing Services, Inc,
400 Oceangate, Suite 450
Long Beach, CA 90802
Email: joseph.chaparognstraking.com
Sent Via Email and US Certified Mail
Return Receipt No 70151730Q00182944620
RE: Notice of Expiration of Cure Period, Notice of Termination for Cause
and Demand for Immediate Transfer of Data
Vendor: Insurance Tracing Services, Inc.
Owner: City of Miami Beach, Florida
Project: Web Based Certificate of Insurance Tracking
Dear Mr, Lopez,
Please be advised that the above referenced agreement is hereby terminated for
cause due to Insurance Tracing Services, Inc,'s ('ITSI") failure to cure or commence a
cure as outlined in the City's Notice of Termination for Cause and Demand for Transfer
of Data.
Based on ITSI's response to the City's above referenced notice, dated February 23,
2018, it is clear that ITSI has no intention of commencing a cure or otherwise rectifying
its breaches and defaults of the agreement. ITSI's assertions in its letter also
demonstrate that ITSI is both factually and procedurally wrongful in its attempt at
terminating the agreement with the City.
ITSI's defaults under the agreement and its failure to immediately turn over the City's
data is continuing to expose the City to damages and liabilities, which is amplified every
day that the City does not have access to the Certificates of Insurance that ITSI is
withholding. Be advised that ITSI remains obligated to:
protect, defend, reimburse, indemnify and hold [the City] .„ harmless
from and against any and all claims, liability, loss, expense, cost,
damages, or causes of action of every kind or character, including
attorney's fees and costs .,.arising during and as a result of their
performance of the terms of this Contract or due to the acts or omissions
of Contractor.
(Article 14— Indemnification).
Page 1409 of 1608
Based on the foregoing, the City is currently exploring all available options, both
administratively and legally, to avail itself of any and all rights and remedies that may be
available to the City at law and in equity based on ITSI's defaults and termination for
cause of this agreement.
The foregoing notice is without waiver of the City's rights to take action with
respect to any other violation or default of the agreement not specified herein.
Should you have any questions or need additional information, please contact Alian
Gonzalez at 305.673.7490 or lian onzalez • miamibeachfl ov.
PLEASE GOVERN YOURSELF ACCORDINGLY.
Sin erely,
Jim y L. Morales
City anager
Cc: Rick Lopez, Insurance Tracking Services, Inc, 9507 S. Santa Monica Blvd., Suite 205, Beverly
Hills, CA 90210
Alex Denis, Director Of Procurement (Via Email Only)
Rafael Paz, First Assistant City Attorney (Via Email Only)
Jason Jacobson, Assistant City Attorney II (Via Email Only)
Allan Gonzalez, Procurement Contracting Analysis II (Via Email Only)
Page 1410 of 1608
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