C7H-Accept Recommendation Claims Administration Services For Workers CompensatiCOMMISSION ITEM SUMMARY
Condensed Title:
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA,
ACCEPTING THE RECOMMENDATION OF THE GITY MANAGER PERTAINING TO THE RANKING OF
PROPOSALS, PURSUANT TO REQUEST FOR PROPOSAL (RFp) NO. 2014-302-SW FOR CLATMS
ADMINISTRATION SERVICES BY A THIRD PARry ADMINISTRATOR FOR WORKER'S
COMPENSATION AN D GENERAL LIABILITY.
Ensure that trends are sustainable over the lono term.
Su Data Environmental Scan, etc: N/A
Item Summary/Recommendation :
The City of Miami Beach is approved by the Florida Department of Labor and Employment Security/Division
of Worker's Compensation to self-insure for Worker's Compensation. The Division of Worker's
Compensation requires that the claims administration services be provided by a State Certified Worker's
Compensation Claims Administrator. Therefore, the City issued a Request for Proposals (RFP) to establish
an agreement with an experienced and qualified firm to provide services as a third party administrator for
worker's compensation and general liability.
On July 23,2014, the City Commission approved the issuance of the subject Request for Proposal (RFP).
On July 24, 2014, the RFP was issued with an opening date of September 12, 2014. A pre-proposal
conference to provide information to proposers submitting a response was held on August 12,2U4. fhe
City received three (3) proposals from the following: CorVel Enterprise Comp, lnc.; Johns Eastern Company,
lnc.; York Risk Services Group, lnc.
The Evaluation Committee appointed by the City Manager convened on October 30, 2014, to consider
proposals received. After proposer's presentations and interviews, the Committee discussed the proposers'
qualifications, experience, and competence, and further scored the proposers in accordance with the
evaluation criteria established in the RFP. The final ranking of proposals resulting from the evaluation
process is as follows:
1. CorVel Enterprise Comp, lnc.
2. Johns Eastern Company, lnc.
3. York Risk Services Group, lnc.
The City Manager has reviewed the proposals received, pursuant to RFP 2014-302-SW for Claims
Administration Services by a Third Party Administrator for Worker's Compensation and General Liability, and
the results of the Evaluation Committee process, and recommends that the Mayor and City Commission of
the City of Miami Beach, Florida, authorize the Administration to enter into negotiations with the top-ranked
firm, CorVel Enterprise Comp, lnc., and should the Administration not be successful in negotiating an
agreement with the top-ranked proposer, authorizing negotiations with the second-ranked proposer, Johns
Eastern Company, lnc.; and should the Administration not be successful in negotiating an agreement with
the second-ranked proposer, authorizing negotiations with the third-ranked proposer, York Risk Services
Group, lnc.; and further authorizing the Mayor and City Clerk to execute agreements upon completion of
successful negotiations by the Administration.
CONCLUSION
The Administration recommends that the Mayor and City Commission of the City of Miami Beach, Florida
approve the resolution accepting the recommendation of the City Manager pertaining to the ranking of
proposals, pursuant to Request for Proposal (RFP) No. 2014-302-SW for Claims Administration Services by
a Third Party Administrator for Worker's ion and General Lia
Financial lnformation :
Source of
Funds:
Amount Account
1 $4,s00,000 540-1 792-000381 (Worker's Compensation Claims Payment)
ffDfl\*OEPI
2 $ 250,000 540-1 790-00031 2 (Professional Services)
Total $4,7s0,000
Financial lmoact Summarv:
Alex Denis. Extension 6641 and Tabak, Extension 5724
Glerk's Office slative T
4\November 1g\RFP 2014-302-SW Claims strations Services by a TPA for Workers
AGENDA
'TEM
C7 HE MIAMIBEACH o^rE //-/r-/c/236
g MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139,
www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO:Mayor Philip Levine and Members of
FROM: Jimmy L. Morales, City Manager
DATE: November 19,2014
SUBJECT:A RESOLUTION OF THE MAYOR AND Clw COMMISSION OF THE CITY OF
M!AM! BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE
AUDIT COMMITTEE PERTAINING TO THE RANKING OF PROPOSALS,
PURSUANT TO REQUEST FOR PROPOSAL (RFP) NO. 2014-302-LR FOR
CLAIMS ADMINISTRATION SERVICES BY A THIRD PARTY ADMINISTRATOR
FOR WORKER'S COMPENSATION AND GENERAL LIABILITY
FUNDING
Account Codes:
540-1790-000312 - Professional Services Amount: $ 250,000
540-1792-000381 - Worker's Compensation Claims Payments Amount: $4,500,000
BACKGROUND
The City of Miami Beach is approved by the Florida Department of Labor and Employment
Security/Division of Worker's Compensation to self-insure for Worker's Compensation. The
State of Florida Division of Worker's Compensation requires that the claims administration
service be provided by a State Certified Worker's Compensation Claims Administrator.
Therefore, the City issued a Request for Proposals (RFP) to establish an agreement with an
experienced and qualified firm to provide services as a third party administrator for worker's
compensation and general liability.
RFP PROCESS
On July 23, 2014, the City Commission approved the issuance of the subject Request for
Proposal (RFP). On July 24,2014, the RFP was issued with an opening date of September
12, 2014. A pre-proposal conference to provide information to proposers submitting a
response was held on August 12,2014.
The City received three (3) proposals from the following:. CorVel Enterprise Comp, lnc.. Johns Eastern Company, lnc.o York Risk Services Group, lnc.
City Commission
237
Commission Memorandum - RFQ 2014-302-SW for Claims Administration Services by a Third Party Administrator for Worker's
Compensation and General LiabilityServices
November 19, 2014
Page 2
On September 9, 2014, the City Manager appointed via Letter to Commission (LTC) No. 311-
2014 an Evaluation Committee (the "Committee") consisting of the following individuals:. Sue Radig, Human Resources Administrator l, Human Resources Department, City of
Miami Beacho Dwayne Drury, Assistant Fire Chief, Fire Department, City of Miami Beach. Steven Rothstein, First Assistant City Attorney, City Attorney's Office, City of Miami
Beach. Karen Muir, Risk Manager, City of North Miami. Gary Reshefsky, Esq., Public Risk Advisors, LLC
The following alternates were also appointed:o Ramon Suarez, Finance Manager, Finance/Accounts Payable, City of Miami Beach. Ann Marie Sharp, Risk Manager, City of Miami
The Committee convened on October 30, 2014, to consider proposals received. After
proposer's presentations and interviews, the Committee discussed the proposers'
qualifications, experience, and competence, and further scored the proposers in accordance
with the evaluation criteria established in the RFP.
Total Points Evaluation Criteria
25 Proposer Experience and Qualifications, including Financial
Caoabilitv
25 Scooe of Services
35 Approach and Methodoloqv
15 Cost Proposal
The RFP also stipulated that additional points would be applied, if applicable, pursuant to the
City's Veteran's Preference Ordinance. However, no proposer was eligible for Veteran's
preference.
Therefore, the final ranking of proposals resulting from the evaluation process is as follows:1. CorVel Enterprise Comp, lnc.2. Johns Eastern Company, lnc.3. York Risk Services Group, lnc.
The evaluation process resulted in the followinq rankinq of
RFP 2014-302-LR Claims
Administration Services by
a Third Party Administrator
for Worker's Comp and
General Liability
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CorVel Enterprise
Como. lnc.
90 1 84 1 80 2 95 1 97 1 6 1
John Eastern
Companv. lnc.
71 2 79 2 83 1 86 2 93 2 I 2
York Risk Services
Group, lnc.
69 3 67 3 63 3 76 3 85 3 15 3
238
Commission Memorandum - RFQ 2014-302-SW for Claims Administration Sevices by a Third Party Administrator for Worker's
Compensation and General LiabilityServices
November 19, 2014
Page 3
A brief summary of each firm is provided below for informational purposes.
CORVEL ENTERPRISE COMP, !NC. has been in business for over 30 years. They are
currently providing third party administration services to the City of Pompano Beach, City of
West Palm Beach and Prince George's County, MD.
JOHNS EASTERN COMPANY, lNC. has been in business for 68 years. They have been
providing third party administration services to the City of Miami Beach for 27 years. They are
currently providing similar services to the City of Coral Gables and City of Winter Park.
YORK RISK SERVICES GROUP, lNC. has been in the business for over 50 years. They
have been providing third party administration services to Palm Beach County School Board.
CITY MANAGER'S REVIEW & RECOMMENDATION
The City Manager has reviewed the proposals received, pursuant to RFP 2014-302-SW for
Claims Administration Services by a Third Party Administrator for Worker's Compensation and
General Liability, and the results of the Evaluation Committee process, and recommends that
the Mayor and City Commission of the City of Miami Beach, Florida, authorize the
Administration to enter into negotiations with the top-ranked firm, CorVel Enterprise Comp,
lnc., and should the Administration not be successful in negotiating an agreement with the top-
ranked proposer, authorizing negotiations with the second-ranked proposer, Johns Eastern
Company, lnc.; and should the Administration not be successful in negotiating an agreement
with the second-ranked proposer, authorizing negotiations with the third-ranked proposer, York
Risk Services Group, lnc.; and further authorizing the Mayor and City Clerk to execute
agreements upon completion of successful negotiations by the Administration.
CONCLUSION
The Administration recommends that the Mayor and City Commission of the City of Miami
Beach, Florida approve the resolution accepting the recommendation of the City Manager
pertaining to the ranking of proposals, pursuant to Request for Proposal (RFP) No. 2014-302-
SW for Claims Administration Services by a Third Party Administrator for Worker's
Compensation and General Liability.
JLM /KGB/MT/SCT/AD
T:\AGENDA\2014\Novemberl9/RFP2014-302-SW for Claims Administration by a Third Party Administrator for Worker's
Compensation and General Liability - Memo Final.doc
239
RESOLUTION NO.
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE
CITY MANAGER PERTAINING TO THE RANKING OF PROPOSALS,
PURSUANT REQUEST FOR PROPOSALS NO. 2014-302-SW (THE RFP),
FOR CLAIMS ADMINISTRATION SERVICES BY A THIRD PARTY
ADMINISTRATOR FOR WORKER'S GOMPENSATION AND GENERAL
LIABILITY; AUTHORIZING THE ADMINISTRATION TO ENTER INTO
NEGOTIATIONS WITH THE TOP RANKED PROPOSER, CORVEL
ENTERPRISE COMP, lNC.; AND SHOULD THE ADMINISTRATION NOT BE
SUCCESSFUL IN NEGOTIATING AN AGREEMENT WITH THE TOP.RANKED
PROPOSER, AUTHORIZING NEGOTIATIONS WITH THE SECOND.RANKED
PROPOSER, JOHNS EASTERN COMPANY, lNC.; AND SHOULD THE
ADMINISTRATION NOT BE SUCCESSFUL IN NEGOTIATING AN
AGREEMENT WITH THE SECOND.RANKED PROPOSER, AUTHORIZING
NEGOTIATIONS WITH THE THIRD.RANKED PROPOSER, YORK RISK
SERVICES GROUP, !NG.; AND FURTHER AUTHORIZING THE MAYOR AND
CITY CLERK TO EXECUTE AN AGREEMENT UPON CONCLUSION OF
SUCCESSFUL NEGOTIATIONS BY THE ADMINISTRATION.
WHEREAS, Request for Proposals No. 2014-302-SW (the RFP) was issued on July 24,
2014, with an opening date of September 12,2014; and
WHEREAS, a voluntary pre-proposal meeting was held on August 12,2014; and
WHEREAS, the City received a total of three (3) proposals; and
WHEREAS, on September 9, 2014, the City Manager via Letter to Commission (LTC)
No. 311-2014, appointed an Evaluation Committee (the "Committee"), consisting of the following
individuals:
o Dwayne Drury, Assistant Fire Chief, City of Miami Beach. Karen Muir, Risk Manager, City of North Miami. Sue Radig, Human Resources Administrator l, City of Miami Beacho Gary Reshefsky, Esquire, Public Risk Advisors, LLC. Steven Rothstein, First Assistant City Attorney, City of Miami Beach;
The following alternates were also appointed:
. Ramon Suarez, Finance Manager, City of Miami Beach
o Ann Marie Sharp, Risk Manager, City of Miami; and
WHEREAS, the Committee convened on October 30,2014 to consider the proposals
received; and
WHEREAS, the Committee was provided an overview of the pQect; information relative
to the City's Cone of Silence Ordinance and the Government Sunshine Law; general information
on the scope of services, references, and a copy of each proposal; and engaged in a question
and answer session after the presentation of each proposer; and
240
WHEREAS, the Committee was instructed to score and rank each proposal pursuant to
the evaluation criteria established in the RFP; and
WHEREAS, the Committee's ranking was as follows: CorVel Enterprise Comp, lnc., as
the top-ranked firm; Johns Eastern Company, lnc., as the second ranked; and York Risk
Services, lnc., the third ranked.
WHEREAS, after reviewing the submissions and the Evaluation Committee's and
rankings, the City Manager exercised his due diligence and is recommending that the
Administration be authorized to enter into negotiations with the top-ranked firm, CorVel
Enterprise Comp, lnc.; and should the Administration not be successful in negotiating an
agreement with the top-ranked proposer, authorizing negotiations with the second-ranked
proposer, Johns Eastern Company, lnc.; and should the Administration not be successful in
negotiating an agreement with the second-ranked proposer, authorizing negotiations with the
third-ranked proposer, York Risk Services, lnc.
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 pertaining to the ranking of proposals, pursuant to
Request for Proposal (RFP) No. 2014-302-SW, for Claims Administration Services by a Third
Party Administrator for Worker's Compensation and General Liability; authorize the
Administration to enter into negotiations with the top-ranked firm, CorVel Enterprise Comp, lnc.;
and should the Administration not be successful in negotiating an agreement with the top-
ranked proposer, authorizing negotiations with the second-ranked proposer, Johns Eastern
Company, lnc.; and should the Administration not be successful in negotiating an agreement
with the second-ranked proposer, authorizing negotiations with the third-ranked proposer, York
Risk Services Group, lnc.; and further authorizing the Mayor and City Clerk to execute an
agreement upon conclusion of successful negotiations by the Administration.
PASSED AND ADOPTED this
ATTEST:
dayof 2014.
Rafael E. Granado, City Clerk Philip Levine, Mayor
T:\AGENDA\2O14\November 1g\Procurement\RFP 2014-302-SW Claims Administration Services by a Third Party Administrator for
workers comp and ceneral Liabilitv - Resolution'do"
AppRovED As ro
FORM & LANGUAGE
& FORE)(ECUTION
(r[?(t*-
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