93-20866 Reso L L
RESOLUTION NO. 93-20866
A RESOLUTION OF THE MAYOR AND CITY
COMMISSION OF THE CITY OF. MIAMI
BEACH, FLORIDA, EXTENDING THE CITY'S
GROUP LIFE AND DMO/DENTAL,PLANS WITH
THE PRUDENTIAL INSURANCE COMPANY OF
AMERICA FOR FISCAL YEAR 1993/94.,
WHEREAS, Invitation to. Bid No. 103-91/96 was awarded to The
Prudential Insurance Company of America for Group Life Plans .for: a
one year period on July 22, 1992, with the option to renew for up
to four additional one year periods; and
WHEREAS, Invitation to Bid No. 102-91/96 was awarded to The
Prudential Insurance Company of America for DMO/Dental Plans for a
one year period on July 22, 1992, with the option to renew for up
to four additional one year periods; and
WHEREAS, Prudential 's proposed cost increases have been
evaluated by the City Administration, and found to be reasonable;
and
WHEREAS, the City Administration recommends the extension for
Group Life Plans for a second one year period commencing October 1,
1993, . with a 0.0% cost increase in premiums; and
WHEREAS, the City Administration recommends the extension for
DMO/Dentar Plans for a second one year period commencing October 1,
1993, with a 10.0% cost increase in premiums; and
WHEREAS, the City Administration also recommends approving the
extension for a third one year period of 'the DMO/Dental Plan
commencing October 1, 1994 with' a premium increase not to exceed
8 provided, however, that the City of Miami Beach is under no
obligation to refrain from competitive bidding in 1994 ; and
WHEREAS, the Group Insurance Board, at its July 21, 1993
meeting, voted to recommend acceptance of Prudential 's renewal
offers for the Group Life and DMO/Dental Plans.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the City
Commission hereby extends the Group Life and DMO/DENTAL Plans with
The Prudential Insurance Company of America for the Fiscal Year
1993/94.
ADOPTED this 28th day of July , , 1993 .
•
VICE-MA R
ATTEST: FORM APPROVED
CITY CLERK By
Date �f ,Q
fi
CITY OF MIAMI BEACH
• CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 I
OFFICE OF THE CITY MANAGER TELEPHONE: (305) 673-7010
AX: (305)673- 792
COMMISSION MEMORANDUM NO.
TO: Mayor Seymour Gelber and DATE: July 28 , 1993
Members of the City Commission
FROM: Roger M. Ca •
City Manager
SUBJECT: RESOLUTION APPROVING THE EXTENSION OF GROUP LIFE AND
DMO/DENTAL PLANS WITH THE PRUDENTIAL INSURANCE COMPANY OF
AMERICA FOR FISCAL YEAR 1993/94
LAST CONTRACT:
Invitation to Bid No. 103-91/96 was awarded to The Prudential •
Insurance Company of America for Group Life Plans for a one
year period on July 22, 1992, with the option to renew for up
to four additional one year periods.
Invitation to Bid No. 102-91/96 was awarded to The Prudential
Insurance Company of America for DMO/Dental Plan for a one
year period on July 22, 1992, with the option to renew for up
to four additional one year periods.
RENEWAL CONTRACT:
The City Administration has evaluated the renewal proposal for
the Group Life Plan and recommends the extension for a second
one year period commencing October 1, 1993, with a 0.0%
increase in premiums.
The City Administration has evaluated the renewal proposal for
the DMO/Dental Plan and recommends the extension for a second
one year period commencing October 1, 1993, with a 10. 0%
increase in premiums. The City Administration also recommends
approving the extension for a third one year period of the
DMO/Dental Plan commencing October 1, 1994 with a premium
increase not to exceed 8% The City of Miami Beach is under no
obligation to refrain from competitive bidding in 1994.
The Group Insurance Board, at its July 21, 1993 meeting, voted
to recommend acceptance of Prudential's renewal offers for the
Group Life .and DMO/Dental Plans. The presidents of the
American Federation of State, County and Municipal Employees
(AFSCME) and the Miami Beach Employees Benevolent Association
(MBEBA) are members of.the Group In urance Board, and voted on
behalf of their respective bargaining units. The Group
Insurance Board is also comprised o' a retiree representative
which voted on behalf of the retir-e group.
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AGENDA _J�n
ITEM ' 1' `
DATE -� -2_s--q3
Please be advised that a withdrawal by either of the two
participating bargaining units from the City-sponsored
Prudential Group Life and/or DMO/dental plans to a _ self-
insured trust would result in Prudential's revaluation of the
remaining members' demographic composition at the time of
withdrawal. Prudential may then request changes in premium
rates for the remaining group members for the balance of the
Plan Year.
A representative from Prudential and the City's Agent of
Record will be present for questions from the Commission.
BID AMOUNT:
$ 556,000. Estimated Cost in Fiscal Year
1992/93 for Group DMO/Dental Plan
with The Prudential Insurance
Company of America
$ 64,000. Estimated cost increase for Group
DMO/Dental Plan in Fiscal Year
1993/94.
$ 620,000. Estimated annual cost to be shared
between City and Employee/Retiree
contributions.
FUNDING:
City contribution funding is available from Budget Accounts of
various departments, subject to OMB approval.
ADMINISTRATION RECOMMENDATION:
That the City Commission approve the resolution approving the
extension for a second one year period of the existing Bid
Award No. 103-91/96-for Group Life Plans with a 0.0% increase
in premiums with The Prudential Insurance Company of America,
and the extension for a second one year period of the existing
Bid Award No. 102-91/96 for DMO/Dental Plan with a 10.0%
increase in premiums with The Prudential Insurance Company of
America. The City Administration also recommends approving
• . the extension for a third one year period of the DMO/Dental
Plan commencing October 1, 1994 with a premium increase not to
exceed 8%. The City of Miami Beach is under no obligation to
refrain from competitive bidding in 1994.
RMC:TCA:DMR
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