Amendment No. 1 to the Contract with Gallagher Benefits Services, Inc. 090/5--- 2/ 2ta—
AMENDMENT NO. 1 TO THE CONTRACT - -
BETWEEN
THE CITY OF MIAMI BEACH, FLORIDA
AND
GALLAGHER BENEFITS SERVICES, INC.
•
This Amendment No.1 (Amendment)to the P ofessional Service Agreement,dated March
11,2016, is entered into this 2C0 day of 1 3R .07 ,2020(Effective Date),by and
between the City of Miami Beach, Florida, a municipal corporation organized and existing
under the laws of the State of Florida, having its principal place of business at 1700
Convention Center Drive, Miami Beach, Florida 33139 (City), and Gallagher Benefits
Services, Inc., a Delaware corporation, authorized to do business in Florida, whose
address is 2255 Glades Road, Suite #200E, Boca Raton, FL 33431•(Consultant), and
hereby amends the Agreement as follows:
RECITALS
WHEREAS, on December 16, 2015, the Mayor and City Commission adopted
Resolution Number 2015-29245, approving the award of Request for Proposals ("RFP")
No. 2015-195-LR for health care benefits consulting services; and
WHEREAS,in 2016,the Mayor and City Commission awarded Request for Proposal
(RFP)No.2016-086-WG for health plan services and benefits for the City of Miami Beach
active employees,dependents,pre65 retirees and post-65 retirees,to Cigna Health Care;
and
WHEREAS, on March 11, 2016, the City and Consultant executed the Agreement
with respect to the RFP (the Agreement), which services include health care benefits
consulting services,as set forth in Exhibit A of the Agreement;and
WHEREAS, the Agreement had an initial term of two(2)years, with three(3), one
(1)year renewal options,to be exercised at the City Manager's sole option and discretion;
and .
WHEREAS,the City Manager has exercised two(2)of the three(3)renewal options,
the Agreement is currently set to expire on March 10,2020;and
WHEREAS, Consultant's Proposal was submitted based upon a flat amount of
- $10.00 per enrolled employee;and
WHEREAS,section 4 of the Agreement established a fixed fee of$10 per employee,
per month, for compensation of the services to be provided by the Consultant, in an
amount not to exceed $180,000 per year;and
WHEREAS,in 2015 there were approximately 1577 employees and retirees enrolled
in the medical plan administered by Humana;and
•
WHEREAS, the Consultant played a significant role in migrating from the health plan
and benefits provider from Humana to Cigna Health Care;and
WHEREAS,after restructuring the City's health plan and enhancing its benefit options,
the City began experiencing increased membership, with the current headcount at 1606,
resulting in a premium of$192,720; and
WHEREAS, in order to correctly reflect the intent of the parties, the parties wish to
correct the Agreement by removing the $180,000 cap referenced in Section 4.1 of the
Agreement.
NOW THEREFORE, in consideration of the mutual promises and conditions
contained herein, and other good and valuable consideration, the sufficiency of which is
hereby acknowledged,the City and Consultant hereby agree to amend the Agreement as
follows.
1. ABOVE RECITALS.
The above recitals are true and correct and are incorporated as part of this
Amendment.
2. MODIFICATIONS.
The Agreement is hereby modified (deleted items etrusk-threugh and inserted
items underlined)as follows:
•
(a) The City and the Consultant agree to exercise the last renewal option available
in the Agreement, which shall now be effective from March 11, 2020 through
March 10, 2021.
(b) Section 4.1 of the Agreement is hereby modified to read as follows:
In consideration of the Services to be provided, Consultant shall be
compensated by the City's health insurance provider,on a fixed fee basis,
in the amount of$10.00 per--employee per month,per employee and retiree
enrolled in the City's health insurance plan not to exceed $18n 000 per
year. In the event that the City retains multiple health insurance providers,
the$10.00,n--employee per month per enrolled employee and retiree shall
continue to apply; •- , •- -_• - .. . -- •. •_ - . :! •!e
• 3. RATIFICATION.
Except as amended herein, all other terms and conditions of the Agreement shall
remain unchanged and in full force and effect. In the event there is a conflict between
the provisions of this Amendment and the Agreement,the provisions of this Amendment
shall govern.
THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.
•
,
•
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
.executed by their appropriate officials, as of the date first entered above.
FOR CITY: ' CITY •F MIAMI ; EACH, FLORIDA
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ATTEST: .I
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Rafael E.Granado, City Clerk Ji , y L.M.r les, ity Manager
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