Resolution 2019-30844 Resolution No. 2019-30844
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) 2019-048-WG
FOR INSURANCE BROKER OF RECORD; AUTHORIZING THE ADMINISTRATION
TO ENTER INTO NEGOTIATIONS WITH MCGRIFF, SEIBELS & WILLIAMS, INC.,
THE TOP RANKED PROPOSER; AND FURTHER AUTHORIZING THE MAYOR AND
CITY CLERK TO EXECUTE AN AGREEMENT UPON CONCLUSION OF
SUCCESSFUL NEGOTIATIONS BY THE ADMINISTRATION.
WHEREAS, on May 14, 2014,.the Mayor and City Commission adopted Resolution Number
2014-28551, approving the award of Request for Qualification ("RFQ") No. 2014-056-MF for Insurance
Broker of Record for Property and Liability Insurance, to Arthur J. Gallagher Risk Management
Services, Inc.; and
WHEREAS, On February 13, 2019, in anticipation of the expiration of the current agreement,
the City Commission approved the issuance of RFP 2019-048-WG, Insurance Broker of Record; and
WHEREAS, on February 13,2019, the City Manager, pursuant to Commission Memorandum,
appointed an Evaluation Committee (the "Committee"), comprised of Monica Beltran, Assistant
Director, Parking Department, City of Miami Beach; Sonia Bridges, Division Director Risk Management,
Human Resources Department, City of Miami Beach; and, Amy Knowles, Deputy Resiliency Officer,
City Manager's Office, City of Miami Beach; and
WHEREAS, on April 22, 2019, the City received a total of six (6) proposals-from the following
firms: Century Risk Advisors ("CRA"); Florida League of Cities; Gehring Group ("Gehring"); McGriff,
Seibels &Williams, Inc. ("McGriff'); USI Insurance Services ("USI"); and, Raymond James; and
WHEREAS, the proposal submitted by Florida League of Cities was deemed non-responsive for
failure to meet the minimum qualifications requirements, and for failure to include a signed Appendix A;
and
WHEREAS, the Committee convened on May 17, 2019, to consider the responsive proposals
received; and
WHEREAS, the Committee was provided an overview of the project, information relative to the
, City's Cone of Silence Ordinance and the Government Sunshine Law, as well as general information on
the scope of services and a copy of each proposal, and was instructed to score and rank each proposal
pursuant to the evaluation criteria established in the RFP for qualitative factors; and
WHEREAS, the Committee's evaluation process resulted in the following order of ranking:
1st ranked proposer- McGriff, Seibels &Williams, Inc.;
2nd ranked proposer- (tie) USI Insurance Services;
2nd ranked proposer- (tie) Gehring Group; '
4th ranked proposer- Century Risk Advisors;
5th ranked proposer- Raymond James; and
WHEREAS, after reviewing the results of the evaluation committee process, including proposer
qualifications, the City Manager further exercised his due diligence and evaluated the cost options
submitted by each proposer; and
WHEREAS, upon considering both qualitative and quantitative factors, the City Manager
recommends that the Mayor and City Commission authorize the Administration to enter into
negotiations with McGriff, Seibels &Williams, Inc., the top ranked proposer.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby accept the
recommendation of the City Manager, pursuant to Request for Proposals (RFP) No. 2019-048-WG for
Insurance Broker of Record; authorize the Administration to enter into negotiations with McGriff, Seibels
& Williams, Inc., the top ranked proposer; and further authorize the Mayor and City Clerk to execute'an
agreement upon conclusion of successful negotiations by the Administration.
PASSED AND ADOPTED this S day of '�`"'e 2019.
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Dan Gelber, Mayor
ATTEST:
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Rafael E. Granado, City Clerk
APPROVED AS TO
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Resolutions -C7 G
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: June 5, 2019
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. 2019-048-WG, FOR INSURANCE BROKER OF RECORD.
RECOMMENDATION
Adopt the Resolution.
ANALYSIS
The City is self-insured and self-administers claims for General, Automobile, and Professional
Liability. We do not purchase excess coverage for these lines. The City is also self-insured for
Workers' Compensation claims and has a third-party administrator that handles all claims. The
City purchases Excess Workers' Compensation coverage, with a $1,000,000 self-insured
retention. The City's property insurance needs are covered by the following six (6) policies: (1)
National Flood Insurance Program ("NFIP), (2)All Risk(including windstorm), (3) Builder's Risk
for Convention Center, (4) Boiler/Machinery (equipment breakdown), (5) Fine Arts (Bass
Museum and Art in Public Places)and (6)Terrorism (including Active Shooter Coverage).
The Total Insured Value (TIV) for all buildings/structures, throughout the City is $594,912,956,
with an additional estimated $29,699,478 for Fine Arts (Bass Museum and Art in Public Places).
The policy includes a Named Windstorm sublimit of $30 million. During the June 2015-16
policy period, the City moved the Miami Beach Convention Center("MBCC")off the citywide All
Risk property insurance program to a Builder's Risk policy while major renovations are
underway(December 2015 —2019). The MBCC is the City's largest single structure, valued at
approximately $445 million before the renovations, and expected to value $700 million after
renovations.
On December 11, 2013, the Mayor and City Commission approved the issuance of the
Request for Qualifications RFQ No 2014-056-MF for Insurance Broker of Record for Property
and Liability Insurance As a result, the City, pursuant to Resolution No. 2014-28551, executed
its existing agreement for Brokerage services effective May 14, 2014, with Arthur J. Gallagher
Risk Management Services, Inc.
In anticipation of the expiration of the current agreement, the City issued RFP 2019-048-WG,
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for Insurance Broker of Record, in order to provide assistance to the City's Risk Management
Department in determining the City's commercial insurance needs, including but not limited to,
the review of all insurance policies and invoices received for policies purchased by the City, to
assure their accuracy and appropriateness and obtain a variety of coverage terms and
conditions to protect the risks of the City.
RFP PROCESS
On February 13, 2019, the City Commission approved the issuance of the RFP No. 2019-048-
WG, Insurance Broker of Record. The Procurement Department issued solicitation notices to
340 vendors utilizing www.publicpurchase.com. 107 prospective proposers accessed the
advertised solicitation. RFP responses were due and received on April 22, 2019. The City
received a total of six (6) proposals from the following firms. After further due diligence, the
proposal submitted by Florida League of Cities was deemed non-responsive for failure to meet
the minimum qualifications requirements, and for failure to include a signed Appendix A.
• CenturyyRiskAdvisors ("CRA")
• Florida League of Cities (non-responsive)
• Gehring Group ("Gehring")
• McGriff, Seibels &Williams, Inc. ("McGriff')
• USI Insurance Services ("USI")
• Raymond James
On February 13, 2019, the City Manager appointed the Evaluation Committee via Commission
Memorandum. The Evaluation Committee convened on May 17, 2019, to consider the five (5)
responsive proposals received. The Committee was comprised of the following: Monica
Beltran, Assistant Director, Parking Department, City of Miami Beach; Sonia Bridges, Division
Director Risk Management, Human Resources Department, City of Miami Beach; and, Amy
Knowles, Deputy Resiliency Officer, City Manager's Office, 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 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 each proposal pursuant to the qualitative evaluation criteria established
in the RFP. The RFP stipulated that quantitative factors shall not be considered by the
Evaluation Committee. Quantitative factors will be considered by the City Manager in preparing
his recommendation to the City Commission. Accordingly, in considering quantitative factors,
the City Manager may also consider any feedback or information provided by staff, consultants
or any other third-party in developing an award recommendation.
The Committee's evaluation process (qualitative factors) resulted in the ranking of proposers as
indicated in Attachment A, in the following order:
1St- McGriff, Seibels &Williams, Inc.
2nd_ (tie) USI Insurance Services
2nd_ (tie) Gehring Group
4th- Century Risk Advisors
5th- Raymond James
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According to its proposal, McGriff, Seibels & Williams (McGriff) is a full service insurance
brokerage and consulting firm, and is the fifth largest agency in the world, with more than $1.8
billion in revenue in 2017. Additionally, McGriff has the substantial financial backing of Branch
. Banking & Trust ("BB&T"), becoming a fully-owned subsidiary in 2004. McGriff specializes in
public entity and educational services, port and terminal risk, aviation, manufacturing, railroad,
healthcare and transportation industries, among others. McGriff maintains strong relationships
with all major markets that underwrite public entity risks, with extensive experience with FEMA,
environmental issues such as sea level rise, all of which allows McGriff to solve complex claims
issues. Some of its clients include the City of Tampa, the University of South Florida, the Port of
Houston Authority, and the City of Houston (TIV over$5 billion).
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CONCLUSION
I have reviewed the proposals received and the results of the Evaluation Committee process.
McGriff demonstrated significant experience through client listing, including experience work
with public sector clients that face coastal exposures. McGriff clearly articulate its understanding
of risk transfer altematives, as well as documented how it has added value and yielded savings
for its clients.
Because of the insured value of the City's property assets, totaling nearly $1.3 billion, and the
City's exposure due to is coastal location, it is critically important that the City retain a firm with
McGriff's client capacity and financial strength to assure that the City's insurance interests are
managed to furthest extent possible. I concur with the assessment of staff and the Evaluation
Committee that McGriff has the capacity and skills to serve as the City's insurance broker of
record.
With regards to the cost of the services, the RFP asked respondents to submit two options for
the City's consideration - an annual percentage fee based on the cost of all premiums and an
annual flat fee regardless of the cost of the premiums. With regard to the annual flat fee option,
McGriff proposed a fee of $107,000, which is considerably lower than the City is currently
paying on a"percentage of premium fee arrangement. However, it is important to note that the
insurance broker of record provides critical advice and consultation to the City above and
beyond its broker services. As such, the Administration will negotiate with McGriff to assure that
the City's needs are met at the best possible cost, whether that be a flat fee, percentage of
premium or some other hybrid compensation model.
Based on the foregoing, I recommend that the Mayor and City Commission approve the
Resolution authorizing the Administration to enter into negotiations with McGriff, Seibels &
Williams, Inc.,the top ranked proposer; and further authorize the Mayor and City Clerk to
execute an agreement upon conclusion of successful negotiations by the Administration.
KEY INTENDED OUTCOMES SUPPORTED
Build And Maintain Priority Infrastructure With Full Accountability
Legislative Tracking
Human Resources/Procurement
ATTACHMENTS:
Description
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