Resolution 2021-31729 RESOLUTION NO. 2021-31729
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) 2021-
108-WG HEALTH CARE BENEFITS CONSULTANT SERVICES; AND
AUTHORIZING THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS
WITH FOUNDATION RISK PARTNERS CORP D/B/A FOUNDATION RISK
PARTNERS PUBLIC ENTITY SERVICES, AS THE TOP RANKED
PROPOSER; AND FUTHER AUTHORIZING THE CITY MANAGER AND CITY
CLERK TO EXECUTE THE AGREEMENT UPON CONCLUSION OF
SUCCESSFUL NEGOTIATIONS BY THE ADMINISTRATION.
WHEREAS, on March 11, 2016 the City entered into an agreement with Gallagher
Benefit Services, Inc, pursuant to RFP 2015-195-LR for Health Care Benefits Consultant
Service; and
WHEREAS, the initial term of the agreement was for a two (2) year term with three (3)
additional one-year renewal options; and
WHEREAS, the existing Agreement is on a month to month extension until such time as
a replacement Agreement is executed; and
WHEREAS, the City seeks proposals from qualified firms to assist and support the
Administration with the City's self-funded medical and dental plans, and other necessary
services (e.g., actuarial and market analysis, assistance with solicitations for medical, dental
and voluntary benefits plans, and assistance with compliance of all legislation related to group
health plans; and
WHEREAS, on February 10, 2021, the Mayor and City Commission authorized the
issuance of Request for Proposals (RFP) 2021-108-WG for health care benefits consulting
services; and
WHEREAS, RFP responses were due and received on April 9, 2021; and
WHEREAS, the City received proposals from the following four firms: Foundation Risk
Partners Corp. d/b/a Foundation Risk Partners Public Entity Services, Gallagher Benefit
Services, Inc., Southeast Series of Lockton Companies LLC, and The Gehring Group, Inc.; and
WHEREAS, the proposal received from The Gehring Group, Inc., failed to sign its cost
proposal, was deemed non-responsive and received no further consideration; and
WHEREAS, on April 7, 2021, the Interim City Manager appointed an Evaluation
Committee, comprised of Marvin Adams, Employee Benefits Manager, Human Resources
Department; Jair Espinoza, Benefits Manager, City of Miami; Frank Estevez, Compensation
Manager, Human Resources Department; and Vyomie Greene, Accounting Manager, Finance
Department; 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; and
WHEREAS, the Committee was also provided with general information on the scope of
services, and a copy of each proposal and was further instructed to score and rank each
proposal pursuant to the evaluation criteria established in the RFQ; and
WHEREAS, the evaluation process resulted in the proposers being ranked by the
Evaluation Committee in the following order:
1st- Foundation Risk Partners Corp. d/b/a Foundation Risk Partners Public Entity
Services
2nd - Southeast Series of Lockton Companies, LLC
3rd - Gallagher Benefit Services, Inc.
WHEREAS, after reviewing all of the submissions and the Evaluation Committee
process, the City Manager concurs with the Evaluation Committee and finds Foundation Risk
Partners Corp. d/b/a Foundation Risk Partners Public Entity Services, to be the best qualified
firm to assist the City Administration with: (1) determining the City's employee benefit, actuarial
support and analysis of the City's self-funded medical and dental plans; (2) reporting; (3) market
analysis; (4) Request for Proposals (RFP) for the City's group medical, dental and voluntary
benefits plans; (5) the interpretation and compliance of all legislation related to group health
plans; and (6) actuarial support for the group health and dental plans including GASB 45 filings.
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) 2021-108-WG for Health Care Benefits Consulting Services; and authorize
the Administration to enter into negotiations with Foundation Risk Partners Corp. d/b/a
Foundation Risk Partners Public Entity Services, as the top ranked proposer; and further
authorize the City Manager and City Clerk to execute an Agreement upon conclusion of
successful negotiations by the Administration.
PASSED and ADOPTED this 023 day of 7e0e 2021.
4 ATTEST:
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RAFAEL E. GRANADO, CITY CLERK DAN GELBER, MAYOR
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ItICORPiORATED`
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1i,,77 ....�G.:--.,.. N__ APPROVED AS TO
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& FOR EXECUTION
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City Attorney Date
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Resolutions-C7 D
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Alina T. Hudak, City Manager
DATE: June 23, 2021
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. 2021-108-WG FOR HEALTHCARE BENEFITS CONSULTING
SERVICES.
RECOMMENDATION
It is recommended that the Mayor and City Commission approve the Resolution authorizing
Administration to enter into negotiations with Foundation Risk Partners Corp. DBA Foundation
Risk Partners Public Entity Services,the top ranked proposer, and authorizing the City Manager
and City Clerk to execute an Agreement upon conclusion of successful negotiations by the
Administration and the City Attorney's Office.
BACKGROUND/HISTORY
On March 11, 2016 pursuant to Resolution 2015-29245,the City executed an Agreement with
Gallagher Benefit Services, Inc.to assist and support the Administration with the City's self-
funded medical and dental plans with services that include actuarial and market analysis,
assistance with solicitations for medical, dental and voluntary benefits plans, and assistance with
compliance of all legislation related to group health plans. The existing Agreement is currently
on a month-to-month extension until such time as a replacement agreement is executed.
To seek a replacement agreement, the Administration issued the RFP seeking proposals from
qualified firms for the required services.
ANALYSIS
On February 10, 2021, the Mayor and City Commission approved the issuance of Request for
Proposals (RFP) 2021-108-WG for health care benefits consulting services. RFP responses
were due and received on April 9, 2021. The City received proposals from the following four
firms: Foundation Risk Partners DBA Foundation Risk Partners Public Entity Services,
Gallagher Benefit Services, Inc., Southeast Series of Lockton Companies LLC, and The
Gehring Group, Inc. The proposal received from The Gehring Group, Inc. was deemed non-
responsive for failure to execute the cost proposal form as required in the RFP and could not
be further considered.
Page 221 of 1884
On April 7, 2021,the Evaluation Committee appointed by the Interim City Manager convened to
consider the proposals received. The Committee was comprised of Marvin Adams, Employee
Benefits Manager, Human Resources Department; Jair Espinoza, Benefits Manager, City of
Miami; Frank Estevez, Compensation Manager, Human Resources Department; and Vyomie
Greene, Accounting Manager, Finance Department. 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 and rank each
proposal pursuant to the evaluation criteria established in the RFP.
The evaluation process resulted in the proposers being ranked by the Evaluation Committee in
the following order with Foundation Risk Partners being unanimously ranked as the top-ranked
respondent(See Attachment A):
Proposed Annual Management Fee
1St Foundation Risk Partners Corp. DBA Foundation Risk $177,914.88
Partners Public Entity Services
2"d Southeast Series of Lockton Companies, LLC $202,014.72
3rd Gallagher Benefit Services, Inc. $247,104.00
Aside from its excellent qualifications, the cost proposal submitted by Foundation Risk is
$24,099.84 less than the cost proposal submitted by the second ranked firm and a savings of
$12,165.12 over the City's existing Agreement with Gallagher Benefit Services, Inc.
Summary of Foundation Risk Partners DBA Foundation Risk Partners Public Entity Services
Foundation Risk Partners began with the convergence of two large, established consulting and
brokerage platforms that now provide comprehensive employee benefits and property and
casualty insurance services. The firm currently operates in fourteen states with more than 1200
employees and are among the top 20 largest insurance consulting and brokerage firms in the
United States. It can leverage its position to develop and negotiate cost controlled, high-value
benefit programs on behalf of the City and its employees.
Foundation Risk Partners represent large national brands such as, ABC Fine Wine & Spirits,
IKEA, and H&M, along with numerous cities and municipalities in the U.S., such as City of
Destin, Florida, City of North Miami, Florida, City of Deltona, Florida, Jackson County, BOCC,
and City of Winter Garden, Florida. The firm understands the unique needs associated with a
public entity, helping these employers manage people, compensation, and benefits programs in
the face of mounting costs, regulatory pressures and ongoing changes in the healthcare and
insurance industries.
SUPPORTING SURVEY DATA
Not Applicable.
FINANCIAL INFORMATION
The costs of the related services are subject to funds availability approved through the City's
budgeting process. The City has budgeted approximately $200k annually for health care
benefits consulting services. Grant funding will not be utilized for this project.
CONCLUSION
Page 222 of 1884
After reviewing all the submissions and the Evaluation Committee process, I concur with the
Evaluation Committee and find Foundation Risk Partners DBA Foundation Risk Partners Public
Entity Services to be the best qualified firm to assist the Administration with actuarial and other
services regarding employee insurance and benefits programs.
The Evaluation Committee, which unanimously ranked Foundation Risk as the top-ranked firm,
noted that the following points were particularly important when considering the firm:
-Foundation Risk has broad experience designing and managing insurance and benefit programs for
other organizations of similar size, demographics, and complexity to the City.
-The firm has strong ties in Florida and, as such, has an excellent working knowledge of Florida law
and the Florida market for health insurance and employee benefits programs.
- Finally, the firm has demonstrated a successful record in negotiating insurance contracts that result
in cost savings to its clients.
It is important to note that, in addition to its top score for qualifications and services, Foundation Risk
also provided the lowest cost proposal of all respondents.
For the reasons stated herein, I recommend that the Mayor and City Commission approve the
Resolution authorizing the Administration to enter into negotiations with Foundation Risk
Partners DBA Foundation Risk Partners Public Entity Services, as the top-ranked proposer,
and authorizing the City Manager and City Clerk to execute an Agreement upon conclusion of
successful negotiations by the Administration.
Is this a"Residents Right Does this item utilize G.O.
to Know" item, pursuant to Bond Funds?
City Code Section 2-14?
No No
Legislative Tracking
Human Resources/Procurement
ATTACHMENTS:
Description
❑ Attachment A
Page 223 of 1884
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Page 224 of 1884