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HomeMy WebLinkAbout2005-25816 Reso RESOLUTION NO. 2005-25816 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE ISSUANCE OF A REQUEST FOR PROPOSALS (RFP) FOR BROKER/AGENT SERVICES TO PROVIDE ASSISTANCE IN DETERMINING THE CITY'S EMPLOYEE BENEFITS PROGRAM. WHEREAS, on April 18, 2001, the Mayor and City Commission approved Resolution No. 2001-24336 authorizing an Agreement with Arthur J. Gallagher and Co. to provide assistance in determining the City's Group Insurance needs; and WHEREAS, the Agreement was issued for one year with an option to renew for three years; and WHEREAS, the Agreement will expire on May 5,2005; and WHEREAS, the City wishes to continue to use the services of a broker/agent to assist in maintaining and further developing a quality, cost effective Employee Benefit Program. 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 authorize the issuance of a Request for Proposals (RFP) for Broker/Agent Services to provide assistance in determining the City's Employee Benefits Program. PASSED AND ADOPTED THIS ,2005 ATTEST: ~r PCM-~ CITY CLERK M T:\AGENDA\2005\Feb2305\Consent\Benefits BrokerRequestRFP .Reso2-05.doc APPROVED AS 1'0 FORM & LANGUAGE & FOR EXECUOON b - I ()-yj 5 Date CITY OF MIAMI BEACH COMMISSION ITEM SUMMARY ~ Condensed Title: Resolution for Issuance of RFP for Broker/Agent to provide assistance with the Employee Benefits Program. Issue: Should the City issuance an RFP for Broker/Agent services to assist the City with its Employee Benefits Program? Item Summary/Recommendation: The current Agreement with Gallagher Benefit Services, Inc,to provide assistance and expertise with the City's Group Employee Benefit Program expires May 5, 2005. The City has found that as employee benefits become more complex, including the national issues that surround healthcare, the services of a broker/agent will provide the City with additional expertise in developing a quality, cost effective benefit program. Advisory Board Recommendation: IN/A Financial Information: Source of Funds: Approved D Finance Dept. Ci Clerk's Office Le islative Trackin : Mayra Diaz Buttacavoli, Director of Human Resources & Risk Management AGENDA ITEM DATE ~7F ~ J-J3-o) CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 www.miamibeachfl.gov COMMISSION MEMORANDUM Subject: Mayor David Dermer and Date: February 23, 2005 Members of the City Commission Jorge M. Gonzalez ~.y- c....1"" City Manager .' 1) A RESOLUTION THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE ISSUANCE OF A REQUEST FOR PROPOSALS (RFP) FOR BROKER/AGENT SERVICES TO PROVIDE ASSISTANCE IN DETERMINING THE CITY'S EMPLOYEE BENEFITS PROGRAM. To: From: ADMINISTRATION RECOMMENDATION Adopt the Resolution. ANALYSIS The City of Miami Beach currently has an Agreement with Gallagher Benefit Services, Inc. to assist us in providing cost effective, quality benefits for our employees. This Agreement has been in effect for 4 years and will expire on May 5, 2005. The City has found that as employee benefits become more complex, including the national issues that surround healthcare, the services of a firm that specializes in employee benefits provides the City with information regarding the benefit market and conditions that may affect the City's policies and risk exposures. The Scope of Services and Evaluation Criteria are attached. The current Agreement with Gallagher Benefit Services was issued with an initial fee of $30,000 for the RFP process for Group Health Insurance. For subsequent years, the fee was paid by the selected medical carrier, as negotiated by Gallagher Benefit Services, Inc. and not to exceed $200,000.00 per year. Fee structures in the new Agreement will be negotiated. CONCLUSION The Administration recommends that the City Commission authorize the issuance of an RFP for a broker/agent to assist the City in determining its Group Employee Benefits Program. JMG/MDB/PH T:\AGENDA\2005\Feb2305\Consent\benefit broker req RFP-memo-02-05.doc SCOPE OF SERVICES The City requires that the selected Broker/Agent provide, at a minimum, the following services: 1. Provide assistance to the City Administration in determining the City's Group Employee Benefit Program. 2. Prepare reports informing the Administration regarding benefit market (Market Analysis) conditions that may affect the City's policies and risk exposures prior to policy renewals. 3. Prepare/Assist with Request for Proposal (RFP) specifications and underwriting data to submit to benefit markets for the purpose of obtaining proposals for Group Employee Benefits. 4. Upon direction from the City, approach all acceptable companies on behalf ofthe City. A complete list of the companies contacted, along with their response, must be submitted. 5. Present to the City all coverage proposals obtained. This report must contain a comprehensive analysis by the broker of the proposals obtained with recommendations for the selection of one proposal for the particular area to be covered. 6. Negotiate, on behalf of, and with direction from, the City with all carriers to obtain the best prices, terms and conditions available. 7. Review and/or assist writing Agreements/policies purchased by the City to assure their accuracy and appropriateness. 8. Review and evaluate existing City benefit related Agreements to provide recommendations for possible improvement of price, terms, and conditions. 9. Provide an annual report summarizing coverage's in place, anticipated market conditions, recommendations and strategies. 10. Assist the City with interpretation of benefit related regulations and compliance issues; respond to inquires from City benefit staff. 11. Include unlimited actuarial support with no additional flat or hourly fees 12. The City requests an initial term of one (1) year. Thereafter the Agreement shall be automatically renewed for successive one (1) year terms until terminated by either party. EVALUATION CRITERIA The Evaluation Committee shall base its recommendations on the following factors: 1. Specific Expertise regarding the Scope of the Project & expertise with Governmental Entities 2. Overall Expertise of the Broker relating to Employee Benefits 3. References from current and/or former clients 4. Costs MINIMUM REQUIREMENTS 1. Proposers responding to the RFQ must agree not to approach any markets until authorized by The City of Miami Beach to do so. 2. Properly Licensed in addition to any other applicable Florida requirements. An agency/broker firm must be represented by at least one resident Florida agent, duly qualified at the time of the proposal for a minimum of at least five years and if selected, throughout the term of the contract, under the laws of Florida to act as an agent for medical, dental, life, disability, and other employee benefits as the City deems appropriate. 3. Have on staff a local actuary who is a full time member of the firm. 4. Minimum Insurance Coverage the agency/broker firm must agree to maintain in force, at all times during which services are to be performed for The City of Miami Beach, Professional Liability insurance with limits of coverage no less than $1,000,000. 5. The following data must be submitted on each member of the Designated Project Team: a. License maintained in Florida b. Years of group employee benefit service experience c. Professional designations d. Current job responsibilities e. Specific relevant experience with similar projects f. Specific relevant experience with public sector clients of similar size and complexity 6. Describe your service capabilities in handling public sector accounts and any special or unique qualifications of you and your firm. List a minimum of 10 Governmental clients that you service, 2 of which must have over 1,000 full-time employees 7. Provide a list of: a. Client Name b. Business of Client c. Client's Address d. Client Contact, including telephone and facsimile numbers e. Description of Program and Services provided to Client