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Resolution 2024-33008RESOLUTION. NO., 2024-33008 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 QUALIFICATIONS (RFQ) NO. 2024 -033 -WG FOR INSURANCE BROKER OF RECORD; AUTHORIZING THE ADMINISTRATION TO SIMULTANEOUSLY NEGOTIATE WITH ARTHUR J. GALLAGHER RISK MANAGEMENT SERVICES, LLC, .AND MCGRIFF INSURANCE SERVICES, LLC, THE TIED TOP-RANKED PROPOSERS; AUTHORIZING 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, AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE A FINAL AGREEMENT UPON SUCCESSFUL NEGOTIATIONS BY THE ADMINISTRATION. WHEREAS, on December 13, 2023, the Mayor and City Commission approved to issue an RFQ for Insurance Broker of Record; and WHEREAS, on December 15, 2023, RFQ 2024 -033 -WG was issued; and WHEREAS, on January 8, 2024, the City received proposals from the following six- (6) firms: • Alliant Insurance Services, Inc. • Arthur J. Gallagher Risk Management Services, LLC • Foundation Risk Partners Public Entity Services • RSC Insurance Brokerage, Inc., including its division Gehring Group • McGriff Insurance Services, LLC • Willis Towers Watson Southeast, Inc.; and WHEREAS, on March 6, 2024, the City Manager appointed the Evaluation Committee comprised of Marvin Adams, Benefits Manager, Human Resources Department; Marc Chevalier, Risk Manager, Human Resources Department; .Amy Knowles, Director, Environment and Sustainability Department; Elizabeth Miro, Acting Director, Facilities and Fleet Management Department; and Ann Marie Sharpe, Risk Manager, City of Miami; and WHEREAS, the Committee was provided an overview of the project, information relative to the City's Cone of Silence Ordinance, the Government Sunshine Law, general information on the scope of services and a copy of each. -proposal; and WHEREAS, the Committee was 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: 1 st ranked — Arthur J. Gallagher Risk Management Services, LLC 1st ranked — McGriff Insurance Services, LLC 3rd ranked — Foundation Risk Partners Public Entity Services 4th ranked — Alliant Insurance Services, Inc. 5th ranked — Willis Towers Watson Southeast Inc. 6th ranked — RSC Insurance Brokerage, Inc., including its division Gehring Group. 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 accept the recommendation of the City Manager pursuant to Request for Qualifications (RFQ) no. 2024 -033 -WG for Insurance. Broker of Record; authorize the Administration to simultaneously negotiate with Arthur J. Gallagher Risk Management Services, LLC, and McGriff Insurance Services, LLC, the tied top-ranked proposers; 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 City Manager and the City Clerk to execute a final Agreement upon successful negotiations by the Administration. PASSED AND ADOPTED this day of 2024. ATTEST: MAY 21 2021 RAFAE E. GRANADO, CITY CLERK `Bf INCORP� APPROVED AS TO FORM & LANGUAGE &F CLITION Q-) 2.(0) 1&0 Z City Attorney _�P2' Date • STEVEN MEINER, MAYOR 5/9/24, 8:59 AM Item Coversheet i9 ComPetitive Bid Reports- C2 B MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Rickelle Williams, Interim City Manager DATE: May 15, 2024 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 QUALIFICATIONS (RFQ) NO. 2024 -033 -WG FOR INSURANCE BROKER OF RECORD; AUTHORIZING THE ADMINISTRATION TO SIMULTANEOUSLY NEGOTIATE WITH ARTHUR J. GALLAGHER RISK MANAGEMENT SERVICES, LLC, AND MCGRIFF INSURANCE SERVICES, LLC, THE TIED TOP-RANKED PROPOSERS; AUTHORIZING 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, AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE A FINAL AGREEMENT UPON SUCCESSFUL NEGOTIATIONS BY THE ADMINISTRATION. RECOMMENDATION It is recommended that the Mayor and City Commission approve the Resolution authorizing the Administration to simultaneously negotiate with Arthur J. Gallagher Risk Management Services, LLC, and McGriff Insurance Services, LLC, the tied top-ranked proposers; authorizing the Interim 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, authorizing the Interim City Manager and the City Clerk to execute a final Agreement upon successful negotiations by the Administration. This solicitation is under the cone of silence. BACKGROUND/HISTORY An Insurance Broker of Record (IBOR) is a contractual arrangement that designates a specific insurance broker as the official representative for an organization when dealing with insurance matters. A broker of record assists clients with quotes, policies and notices, and negotiates all of these with underwriters, on behalf of the client. Insurance brokers.play a crucial role in helping clients navigate the complexities of the insurance industry. On August 12, 2019, the City entered into an Agreement with McGriff, Seibels & Williams, Inc., pursuant to Request for Proposals No. 2019 -048 -WG for insurance broker of record. The initial term of the Agreement was for three (3) years, with two (2) one-year renewal periods. The Agreement is scheduled to expire on August 11, 2024. Considering the Agreement's expiration, the City sought statements of qualifications from insurance brokers to provide insurance brokerage services. ANALYSIS On December 13, 2023, the Mayor and City Commission approved the issuance of RFQ No. 2024 -033 -WG for an Insurance Broker of Record. The RFQ was released on December 15, 2023, and a voluntary pre -proposal meeting was held on January 8, 2024. Four (4) addenda were issued, and 40 prospective bidders accessed the solicitation. RFQ responses were due and received on March 1, 2024. The City received six (6) proposals from the following firms: Alliant Insurance Services, Inc. Arthur J. Gallagher Risk Management Services, LLC Foundation Risk Partners Public Entity Services RSC Insurance Brokerage, Inc., including its division Gehring Group McGriff Insurance Services, LLC Willis Towers Watson Southeast, Inc. On March 26, 2024, the Evaluation Committee, appointed by the City Manager via Letter to Commission No. 001-2024, convened to consider the proposals received. The Committee was comprised of Marvin Adams, Benefits Manager, Human Resources Department; Marc. Chevalier, Risk Manager, Human Resources Department; Amy Knowles, Director, Environment and Sustainability Department; Elizabeth Miro, Acting Director, Facilities and Fleet Management Department; and Ann Marie Sharpe, Risk Manager, City of Miami. The Committee was provided with an overview of the project and 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 43 https://miamibeach.novusagenda.com/AgendaWeb/CoverSheet.aspx?itemlD=34899 1/3 5/9/24, 8:59 AM Item Coversheet each proposal. The Committee was instructed to score and rank each proposal pursuant to the evaluation criteria established in the RFQ. The results of the Evaluation Committee process are detailed in Attachment A and resulted in the following rankings: 1 st ranked —Arthur J. Gallagher Risk Management Services, LLC 1st ranked — McGriff Insurance Services, LLC 3rd ranked — Foundation Risk Partners Public Entity Services 4th ranked —Alliant Insurance Services, Inc. . 5th ranked — Willis Towers Watson Southeast Inc. 6th ranked — RSC Insurance Brokerage, Inc., including its division Gehring Group The Evaluation Committee deemed Arthur J. Gallagher Risk Management Services, LLC, and McGriff Insurance Services, LLC, as the tied top-ranked proposers; both firms offered the most compelling combination of experience, technology, and services and have institutional knowledge as the City's prior IBORs. Both firms have provided services to the City in the past and have performed well. The Evaluation Committee noted that the leadership team proposed by Arthur J. Gallagher Risk Management Services, LLC, had impressive qualifications and experience not only with the City of Miami Beach but also across similar coastal municipalities in Southeast Florida. Particularly noteworthy was their Resort Tax Stabilization program, which holds significant importance for Miami Beach, along with their comprehensive training module offerings. Similarly, 'McGriff Insurance Services, LLC, demonstrated extensive experience in coastal municipal affairs.. Their collaboration with City staff resulted in notable reductions in property insurance costs. The Evaluation Committee also recognized the value of McGriffs training modules, which were deemed beneficial for the city's needs. The Gallagher Florida Public Entity team includes 40 dedicated full-time public sector members with more than 1,000 years of combined experience who manage over 200 public entities, including 26 Florida public entities with insurable values over $113. Furthermore, Gallagher's Florida market leverage, with over $1.26 in property and casualty premiums placed, provides the City with a unique advantage and negotiating leverage. The Gallagher team was previously awarded as the City's broker. They are qualified to provide the broad array of services outlined in this RFQ, as their team partnered with the City of Miami Beach for the delivery of these exact services from 2014 to 2019. Some of their current clients include Miami -.Dade County, Broward County, and Duval County Public Schools. All references provided positive feedback. Founded in 1886, McGriff, Seibels & Williams, Inc. (McGriff) is one of the leading risk consulting and insurance brokerage firms in the country. In 2004, McGriff joined the BB&T, now Truist family of companies. With an industry -wide reputation for technical expertise and creative solutions, McGriff has tripled its revenue over the last ten years. According to the insurance industry's annual "Best Practices Study," McGriff has been one of the highest -performing insurance sales organizations in the country. McGriff Insurance Services, LLC, has served as the City's incumbent Broker of Record since 2019. Some of their other clients include the City of Houston, the City of Tampa, and the Port of Houston Authority. All references provided positive feedback. SUPPORTING SURVEY DATA Not Applicable. FINANCIAL INFORMATION The Human Resources Department has allocated an estimated $119,000.00 for these services annually. Fees will be established through the negotiation process. Services pursuant to the award of this RFQ shall be subject to successful negotiations and the availability of funds approved through the City's budgeting process. Amount(s)/Account(s): 540-1790-000312 $119,000.00 CONCLUSION Based on the foregoing, the Administration recommends that the Mayor and City Commission approve the Resolution authorizing the Administration to simultaneously negotiate with Arthur J. Gallagher Risk Management Services, LLC, and McGriff Insurance Services, LLC, the tied top-ranked proposers; authorizing the City Manager to select the final proposer deemed by the Interim City Manager to offer the best overall terms and service to the City; and further,'authorizing the Interim City Manager and the City Clerk to execute a final Agreement upon successful negotiations by the Administration. LOBBYIST DISCLOSURE In accordance with Resolution No. 2023-32857, adopted by the City Commission on December 13, 2023, the following information has been provided by the Administration. 1. Was the Agenda Item initially requested by a lobbyist, which, as defined' in code Sec. 2-481, includes a principal engaged in lobbying? No.. 2. If so, specify name of lobbyist(s) and principals(s): Not applicable 44 htips://miamibeach.novusagenda.com/AgendaWebICoverSheet.aspx? Item I D=34999 2/3 5/9/24, 8:59 AM Applicable Area Not Applicable Is this a "Residents Rightto Does this item utilize G.O. Know" item, -pursuant to Bond Funds? City Code Section 2-14? No. No Legislative Tracking Human Resources/Procurement ATTACHMENTS: Description D Attachment A- Evaluation Committee Scoring and Ranking 0 OMB Review of Available Funding D Resolution 45 Item Coversheet https:/imiamibeach.novusagenda.com/AgendaWeb/CoverSheet.aspx?ltem[D=34999 3/3 ATTAr]a WA RF0 2D24091WG Insurance Maivin Adams - Valeran9 Polrth c Y it Marc Chavaller (Votaran's "ant Insurance Services, s Amy Knowles inc. ,,—�� E1lrabelh Mho e m Manoctorngnt Services LLC Mn MarleBhsrpe Foundetlon Risk Partners AVOn9ab a Broker of Record Gohri Grou s a McGrilt Insurance Services, a a LLC ' WBGs Towers Watson s o Southeast Inc. Quatltatl"- Quant1taOn Subtotal. Qualltathns-QuantllstM. Subtotal' Guslita0n. 'Quan9latim Subtotal QuallratPa Quantitathra .9ubtohl a a Tahh ' t Qualitallm Quamitatt" SubtoW- Arthur J. GoDagher Risk Mane monl Services LLC 96 0 98 1 95 0 95 1 135 0 85 2 85 0 85 2 93 0 93 2 8 1 McGriff Insurance Services, LLC 90 0 90 2 95 0 95 1 75 0 75 3 95 0 95 T 96 0 96 1 9 Foundation Risk Partnom Public Eno Services 65 0 85 3 90 0 90 3 90 0 90 1 80 0 80 3 83 0 83 - 15 3 Affiant Insurance Services, 75 '90 0 90 3 21 4 Inc. 77 0 77 4 84 0 84 6 60 0 50 4 76 0 1 4 Willis Towers Watson Southeast Inc. 70 0 7o 6 90 0 90 3 40 0 40 6 70 0 70 6 90 0 90 3 24 5 Gahri Grou 73 0 73 5 88 0 1 88 5 50 1 0 50 41 72 0 72 5 BO 0 60 6 A 25 B ` Quantitative Points f Propoa�r . - - Valeran9 Polrth Total Quantit+tive it (Votaran's "ant Insurance Services, s a inc. Arthur J. Gallagher Risk e o Manoctorngnt Services LLC Foundetlon Risk Partners 5 a Public Enil Sorvices Gohri Grou s a McGrilt Insurance Services, a a LLC WBGs Towers Watson s o Southeast Inc. 4/23/2024 5:37 PM Risk Management - RFQ 2024 -033 -WG, Insurance Broker of Record HR/PR Funding available under line 1 plus department savings �- a� �• 19- � o � a a1 o n c i •- ACC a s o ., 1 oelath o •+mel tl Y�'a r 1 ' w�ncu�.2eM'a� •N I7XS ,9 M.ID9 W.rTYR211'.rf+,}16iLC?1i} �. I .c.+y ls..nba.:, •ISYi1 ,z ,{TL9 .� i4{ • 1 SOC'.n re+vi{bi.. I1YT �W iSJ?z Wr�30Ti't-tl..rl.LLl.]CW-,D � n • I R-vf Lt'1 .'>arl: :1JSS •3] 1]IOS V}�1Y}_Ty]-•la•}1tt-isa�'rY A =• i l+.'V Caf!'.fe'i� r.4 T6J1 'S iTTCT 47