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Home My WebLink About2005-25785 Reso RESOLUTION NO. 2005-25785 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 FIRMS PURSUANT TO REQUEST FOR PROPOSALS (RFP) NO. 45-03/04 CLAIM ADMINISTRATION SERVICES FOR THE CITY OF MIAMI BEACH SELF-INSURED WORKERS' COMPENSATION PROGRAM; AUTHORIZING THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH THE TOP RANKED FIRM OF JOHNS EASTERN COMPANY, INC.; AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT UPON THE COMPLETION OF SUCCESSFUL NEGOTIATIONS BY THE ADMINISTRATION. WHEREAS, on January 10, 2001, the Mayor and City Commission authorized the Administration to execute an Agreement with Johns Eastern Co., as the State Certified Workers' Compensation Claims Administrator, for claim administration services for the City of Miami Beach self-insured workers' compensation program; and WHEREAS, the Agreement term was for two years, with renewal options for two additional one-year terms; and WHEREAS, the Administration has continued the Agreement through option years one and two, for a total service agreement period of four years; and WHEREAS, the current Agreement expires on January 31, 2005, with no further options to renew; and WHEREAS, on October 5, 2004, Request for Proposals (RFP) No. 45/03- 04 was issued, and notices sent to over 70 firms, which resulted in the receipt of proposals from The Alliance - Presented by the Florida League of Cities, Inc,; Employers Mutual, Inc,; Johns Eastern Company, Inc.; and Multi-Line Claims Service, Inc. partnered with MME, Inc.; and WHEREAS, upon review of the proposals, the Administration determined that Employer's Mutual Inc. did not address the mandatory supplemental questions and was therefore deemed to be non-responsive for not meeting the minimum requirements; and WHEREAS, on November 10, 2004, the City Manager via Letter to Commission No. 279-2004 appointed an Evaluation Committee (the "Committee"), consisting of the following individuals 1) Ramon Duenas, Expenditure/Treasury Manager - CMB; 2) Jim Sutter, Intemal Auditor - CMB; 3) Kelly Reid, FOP Representative/Police Department - CMB; 4) Dwayne Drury, IAFF Representative /Fire Department - CMB; 5) Phyllis Shamus, CWA Representative/Police Department - CMB; 6) Willie Sanders, GSA Representative/Public Works - CMB; 7) Prince Pearse, AFSCME Vice President/Public Works - CMB; 8) Marsha Behr Pascual, Risk Manager - Miami Dade County; 9) Don Jackie, Risk Manager - City of Coral Gables; and WHEREAS, the Evaluation Committee convened on December 13, 2004, and was provided with an overview of the project from the Procurement Division and information relative to the City's Cone of Silence Ordinance and Government in the Sunshine Law; and WHEREAS, the Committee discussed and evaluated the proposals and the corresponding references supplied; and WHEREAS, the Evaluation Committee scored the three firms based on the following criteria, as outlined in the RFP, for a maximum possible total of 100%: · Proposer's Qualifications and Experience in Providing Florida Workers' Compensation Administration Services - 20% · Qualifications and Experience of the Proposer's Personnel to be Assigned To the Account - 20% · Cost of services (Fee) - 30% · Demonstration of Successful Prior Performance in Providing These Services and Knowledge of Florida Municipal Agencies- 20% · Proposer's References - 10%; and WHEREAS, the Committee scored the firms as follows: FLORIDA FLORIDA JOHNS JOHNS LEAGUE LEAGUE OF EASTERN EASTERN MULTI-LINE MULTI-LINE COMMITTEE OF CITIES CITIES COMPANY COMPANY CLAIMS CLAIMS MEMBER SCORE RANKING SCORE RANKING SCORE RANKING 1M SUTTER 76 3rd 91 1st 82 2nd KELLY REID 85 2nd 86 1st 72 3rd PHYLLIS SHAMUS 60 2nd 90 1st 60 3rd NILLIE 3rd 1st 2nd SANDERS 32 88 36 MARSHA PASCUAL 72 2nd 92 1st 69 3rd loON JACKLE 53 3rd 90 1st 65 2nd ; and WHEREAS, the City Manager concurs with the Committee's recommendation. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE 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 Proposals (RFP) No. 45-03/04, for Claims Administration Services for the City of Miami Beach Self-Insured Workers' Compensation Program: authorize the Administration to enter into negotiations with the top-ranked firm of Johns Eastem Company, Inc,; and further authorize the Mayor and City Clerk to execute an agreement upon the completion of successful negotiations by the Administration. ~TJ Patdw- CI CLERK PASSED and ADOPTED this 12th day of Jan ry, APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION T:\AGENDA \2005\JAN 1205\Consent\Workers'CompReso.doc ~ l4/or Date CITY OF MIAMI BEACH COMMISSION ITEM SUMMARY ~ ""5iiiiliF" Condensed Title: A Resolution Accepting the City Manager's Recommendation Pertaining to the Ranking of Firms for a Workers' Compensation Claims Administration Services, Authorizing the Administration to Enter into Negotiations, and Authorizing the Mayor and City Clerk to Execute an Agreement for Claim Administration Services for the Cit of Miami Beach Self-Insured Workers' Com ensation Pro ram. Issue: I Shall the Commission Adopt the Resolution? Item Summary/Recommendation: On January 10, 2001, the Mayor and City Commission authorized the Administration to execute an Agreement with Johns Eastern Co. as the State Certified Workers' Compensation Claims Administrator. The current Agreement expires on January 31, 2005, with no further options to renew. Request for Proposals (RFP) No. 45-03104 was issued for Claim Administration Services Self-Insured Workers' Compensation Program, as authorized by the City Manager. Responsive proposals were received from The Alliance - Presented by the Florida League of Cities, Inc.; Johns Eastern Company, Inc; and Multi- Line Claims Service, Inc. and MME, Inc. An Evaluation Committee appointed by the City Manager reviewed the proposals, scored and ranked the three proposals. Johns Eastern pricing is the lowest cost to the City of the proposers. Johns Eastern being the current provider to the City has a good working knowledge of the account. The firm's claims administrators are known to the City and have a local presence. In addition, Johns Eastern is the only firm of the three which did not partner with another provider and provides the services under one entity. The Evaluation Committee unanimously ranked Johns Eastern as number one. ADOPT THE RESOLUTION. Advisory Board Recommendation: IN/A Financial Information: Source of Amount Account Approved Funds: 1 $187,500 per year for the first 2 years and a maximum increase of 540.1790.000312 7% for years 3, 4 and 5. I QJ;11 2 $155,069 per year for first 2 years and a max. increase of 7% for years 540.1792.000381 3, 4 and 5. Financ'liDept. Total City Clerk's Office Leblslative Tracking: Gus Lopez, ext. 6641 ,\ I ..' Sian-Ofts: Department Director Assistant City Manager/CFO City Manager I.";~- " M'X r U U T.\AGENDA\2005\Jan1205\ConsenlIWorkers CompSummary.doc AGENDA ITEM DATE C7P I-I')-O~ CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 www.miamibeachfl.gov COMMISSION MEMORANDUM To: From: Mayor David Dermer and Members of the City Commission Jorge M. Gonzalez ~ ~ City Manager 0 \}J'- 0 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER PERTAINING TO THE RANKING OF FIRMS PURSUANT TO REQUEST FOR PROPOSALS (RFP) NO. 45-03/04 CLAIM ADMINISTRATION SERVICES FOR THE CITY OF MIAMI BEACH SELF- INSURED WORKERS' COMPENSATION PROGRAM; AUTHORIZING THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH THE TOP RANKED FIRM OF JOHNS EASTERN COMPANY, INC.; AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT UPON THE COMPLETION OF SUCCESSFUL NEGOTIATIONS BY THE ADMINISTRATION. Date: January 12, 2005 Subject: ADMINISTRATIVE RECOMMENDATION Adopt the Resolution. AMOUNT AND FUNDING Budget code 5401790000312-Professional Services Claims Administration Fees Estimated at $187,500 per year for the first two years, and a maximum 7%, per year, increase for years 3, 4 and 5. Budget code 5401792000381-Workers' Compensation Claim Payment Managed Care Fees (these are deemed medical by Statute). Estimate $155,069 per year for the first two years and a maximum 7%, per year, increase for years 3, 4 and 5. ANALYSIS The City of Miami Beach ("City") is approved by the Florida Department of Labor and Employment Security/Division of Workers' Compensation to self-insure for Workers' Compensation. The Division of Workers' Compensation requires that the claims administration be provided by a State Certified Workers' Compensation Claims Administrator. On January 10, 2001, the Mayor and City Commission authorized the Administration to execute an Agreement with Johns Eastern Co. as the State Certified Workers' Compensation Claims Administrator. The Agreement period was for two years with renewal options for two additional one- year periods. The Administration has continued the Agreement through option years one and two for a total service agreement period of four years. The current Agreement expires on January 31, 2005, with no further options to renew. The City Manager authorized the Administration to issue a Request for Proposals (RFP) for Claim Administration Services for the City of Miami Beach Self-Insured Workers' Compensation Program. Commission Memo RFP 45-03/04 - Claim Administration Services for the City of Miami Beach Self-Insured Workers' Compensation Program January 12, 2005 Page 2 of5 RFP PROCESS On October 5, 2004 RFP No. 45/03-04 was issued and notices sent to over 70 firms, which resulted in the receipt of four proposals from the following firms: The Alliance - Presented by the Florida League of Cities, Inc, Employers Mutual, Inc. Johns Eastern Company, Inc. Multi-Line Claims Service, Inc. and MME, Inc, Upon review of the proposals, Employer's Mutual Inc. did not address the mandatory supplemental questions and were deemed to be non-responsive for not meeting the minimum requirements. On November 10, 2004 the City Manager via Letter to Commission No. 279-2004 appointed an Evaluation Committee (the "Committee"), consisting of the following individuals: 1. Ramon Duenas, ExpenditurelTreasury Manager - CMS 2. Jim Sutter, Internal Auditor - CMS 3. Kelly Reid, FOP Representative/Police Department - CMS 4. Dwayne Drury, IAFF Representative /Fire Department - CMS 5. Phyllis Shamus, CWA Representative/Police Department - CMB 6. Willie Sanders, GSA Representative/Public Works - CMS 7. Prince Pearse, AFSCME Vice President/Public Works - CMS 8. Marsha Sehr Pascual, Risk Manager - Miami-Dade County 9. Don Jackie, Risk Manager - City of Coral Gables The City Manager appointed Jim Sutter as the Chair of the Committee, Ramon Duenas, Dwayne Drury, and Prince Pearse were not able to participate due to scheduling and contact conflicts. The Committee convened on December 13, 2004 and was provided with an overview of the project, information relative to the City's Cone of Silence Ordinance, and the Government in the Sunshine Law. The Committee then discussed the proposals relative to how closely they matched the needs of the City and employees as well as the cost impact to the City. The following cost analysis was performed on the three proposals: Claims Administration Fee Comparison Annual Fee Florida League Johns Eastern Multi-Line Claim Of Cities, Inc. Co, Services Year One $308,500 $187,500 $185,000 Year Two $305,000 $187,500 $256,200 ($185,000+$71,200-T.O.Claimsl Year Three $314,150 $200,625 $281.820 ($203,500+$78,320-T.O.Claimsl Year Four $323,575 $214,668 $310,002 ($223,850+$86.152-T.O. Claims Year Five $333,281 $229,969 $341,002 ($246,235+$94,767-T.O.Claimsl Total All Years $1,584,506 $1,020,262 $1,374,024 Commission Memo RFP 45-03/04 - Claim Administration Services for the City of Miami Beach Self-Insured Workers' Compensation Program January 12, 2005 Page 3 of5 . Florida League of Cities proposes a one time conversion fee of $3,500 for year one and 3% increases for years three through five. . Johns Eastern proposes increases not to exceed 7%, per year, for years three through five. . Multi-Line Claim Service proposes $185,000 for year one and two, with a 10% increases for years three through five. In addition, there is a flat per claim charge for take over claims of $45 per claim per month until closed for those claims open as of 01/30105 with the per claim rate increasing by 10% for years two through five ($81 ,OOO-year 2, $89,1 OO-year 3, $98,010- year 4, $107,811-year5). Currently, we have 132 indemnity cases open which occurred prior to 09/30/03 (used for calculation purposes) . Current contract fee with Johns Eastern is $207,579 per year with an increase not to exceed 7% per year. Managed Carel Medical Case Management Year One Service Florida Leaaue Of Cities Johns Eastern Co. Multi-Line Claim Services Managed CarelMedical $250 per claim per month $171 per claim $240,700 Management (not capped) (capped) (telephonic) Network Fee $41 per claim None None Medical Bill $8.50 per bill $5.95 per bill plus 30% of None Review savinQs Estimated Cost (Based on 600 $211,600 $155,069 $240,700 annual claims) . Estimate for Florida League of Cities based on 500 Medical only and 100 Indemnity with a one month rate for Managed Care/Medical Management Medical Only and a two month rate for Indemnity. In addition, the Network Fee, and the flat rate for medical bill review was used ($195 Indemnity/$35 Medical Only), . Estimate for Johns Eastern used 500 Medical Only and 100 Indemnity, and three year average annual cost for medical fee scheduling. . Estimate for Multi-Line Claim Services based on actual proposed amount for first year. Questions among Committee members arose relative to the relationship of the Alliance proposed partners -Unisource, Choice Medical Management and Tillinghast-Towers Perrin. Also, the Committee questioned whether this partnership is in effect with any other government agencies, Procurement contacted the Florida League of Cities and ascertained that the Alliance was formed as a result of their seeing a need to provide this type of partnership to government agencies in Florida. The Florida League of Cities would act as the customer service and billing entity while Unisource is the Third Party Administrator, There are currently three other agencies utilizing this Alliance - Hollywood, Leesburg and Pompano Beach. Commission Memo RFP 45-03/04 - Claim Administration Services for the City of Miami Beach Self-Insured Workers' Compensation Program January 12,2005 Page 4 of 5 The references received by Procurement were distributed to the Committee Members for their review and discussion, While at least six reference contacts were provided by each proposer, and multiple attempts were made to acquire feedback from all references, there were three reference responses for each of the proposers, The reference feedback received was relatively positive for the three proposers, however Johns Eastern had the largest municipal experience. Johns Eastern being the current provider since 1985 to the City has a good working knowledge of the account. The firm's claims administrators are known to the City and have a local presence. Johns Eastern is the only firm of the three which did not partner with another provider and provides the services under one entity. In addition, Johns Eastern pricing is the lowest cost to the City of the proposers. The Committee was instructed to rank and score each proposal pursuant to the evaluation criteria established in the RFP. which was as follows (total possible 100 points): Evaluation Criteria/Factors Weiaht . Proposer's Qualifications and Experience In Providing Florida Workers' Compensation Administration Services 20% . Qualifications and Experience of the Proposer's Personnel to be Assigned to the Account 20% . Cost of Services (Fee) 30% . Demonstration of Successful Prior Performance in Providing these Services and Knowledge of Florida Municipal Agencies 20% . Proposer's References 10% The Committee then scored and ranked the firms as follows: FLORIDA FLORIDA JOHNS JOHNS LEAGUE OF LEAGUE OF EASTERN EASTERN MULTI-LINE MULTI-LINE COMMITTEE CITIES CITIES COMPANY COMPANY CLAIMS CLAIMS MEMBER SCORE RANKING SCORE RANKING SCORE RANKING 1M SUTTER 76 3'd 91 10t 82 2nd KELLY REID 85 2nd 86 10t 72 3rd PHYLLIS SHAMUS 60 2nd 90 10t 60 3rd WILLIE SANDERS 32 3'd 88 10t 36 2nd MARSHA PASCUAL 72 2nd 92 10t 69 3rd DONJACKLE 53 3rd 90 10t 65 2nd All six Committee Members ranked Johns Eastern as number one. Commission Memo RFP 45-03/04 - Claim Administration Services for the City of Miami Beach Self-Insured Workers' Compensation Program January 12,2005 Page 5 of5 CONCLUSION The Administration recommends that the Mayor and City Commission approve the attached resolution, which recommends the acceptance of the ranking of the firms and authorizes the Administration to enter into negotiations with the top-ranked firm of Johns Eastem Company, Inc.; and further authorizing the Mayor and City Clerk to execute an agreement upon the completion of successful negotiations by the Administration. T:IAGENDA \2005\Jan 1205\Consenl\Workers'CompMemo.doc