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HomeMy WebLinkAbout2005-25938 ResoRESOLUTION NO. 200.5-25938 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 THE PROPOSALS RECEIVED PURSUANT TO REQUEST FOR PROPOSALS (RFP) NO. 11-04/05 FOR BROKER/AGENT SERVICES TO PROVIDE ASSISTANCE IN DETERMINING THE CITY'S EMPLOYEE BENEFITS PROGRAM; AUTHORIZING THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH THE TOP-RANKED FIRM OF GALLAGHER BENEFIT SERVICES, INC.; AND SHOULD THE ADMINISTRATION NOT BE ABLE TO NEGOTIATE WITH THE TOP-RANKED FIRM, AUTHORIZING THE ADMINISTRATION TO NEGOTIATE WITH THE SECOND-RANKED FIRM OF HRH (HILB ROGAL & HOBBS)OF SOUTH FLORIDA; AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT UPON THE COMPLETION OF SUCCESSFUL NEGOTIATIONS BY THE ADMINISTRATION. WHEREAS, the City of Miami Beach, Florida (hereinafter referred to as "the City") has a need to establish a contract with a broker/agent for services to assist the City in determining its Employee Benefits Program; and WHEREAS, the City currently has an Agreement with Gallagher Benefit Services, Inc. to assist the City in providing cost effective, quality benefits for City employees; and WHEREAS, the initial 4-year Agreement expired on May 5, 2005 and has been renewed on a month-to-month basis until a new Agreement is executed pursuant to this Request for Proposals (RFP); and WHEREAS, on February 23, 2005, the City Commission authorized the issuance of a Request for Proposals (RFP) to solicit proposals from professional firms with the capacity and experience to provide broker/agent services to provide assistance in determining the City's employee benefits program; and WHEREAS, RFP No. 11-04/05 was issued on March 11,2005, with an opening date of April 15, 2005; and WHEREAS, two (2) proposals were received in response to following firms: · Gallagher Benefit Services, Inc. · HRH (Hilb Rogal & Hobbs) of South Florida; and the RFP, by the WHEREAS, an Evaluation Committee was appointed by the City Manager via Letter to Commission (LTC) No. 102-2005, consisting of the following individuals: · Frank Recio, Property owner and retired partner with KPMG · Marsha Behr, Miami Dade County- Risk Manager · Georgie Echert, Assistant Director of Finance, City of Miami Beach · Gladys Acosta, Acting IT Director, City of Miami Beach · Mayra D. Buttacavoli, Director of Human Resources & Risk Management, City of Miami Beach WHEREAS, on May 25, 2005, the Evaluation Committee convened and was provided information relative to the scope of services, direction relative to the Cone of Silence and Government in the Sunshine Law, reviewed references secured by the Procurement staff, and discussed the RFP evaluation criteria and weighted score, which was used to evaluate and rank the proposals; and WHEREAS, the Committee's consensus at the end of the meeting was to invite both firms to provide a 20-minute presentation, followed by a 10-minute question and answer session; and WHEREAS, on June 21,2005, the Committee members reconvened and listened to Presentations from both firms, after which the Committee members discussed the firms proposals based on the evaluation criteria and then unanimously ranked the firms accordingly: · First: Gallagher Benefit Services, Inc. · Second: HRH (Hilb Rogal & Hobbs) of South Florida; and WHEREAS, the City Manager has reviewed and concurs with the Evaluation Committee's recommendation, and recommends that the Mayor and City Commission accept the Committee's ranking of firms pursuant to RFP No. 11-04/05. 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 the proposals pursuant to RFP No. 11-04/05 for Broker/Agent Services to Provide Assistance in Determining the City's Employee Benefits Program, and authorize the Administration to enter into negotiations with the top-ranked firm of Gallagher Benefit Services, Inc.; and should the Administration not be able to negotiate an agreement with the top-ranked firm, authorize the Administration to negotiate with the second-ranked firm of HRH (Hilb Rogal & Hobbs) of South Florida; and further authorizing the Mayor and City ,// by the Administration. ,2005. Clerk to execute an Agreement upon successful nego~ / PASSED and ADOPTED this 6~h d~yo~ CITY CLERK' Rob.crt Par. c'her F:~URC~ALL~JOHN\COMM'~FP11-04-05BrokerAgent ServicesReso.doc MAYOR David Dermer APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION Condensed Title: CITY OF MIAMI BEACH COMMISSION ITEM SUMMARY A Resolution to Accept the City Manager's Recommendation Relative the Ranking of Firms Pursuant to RFP No. 11-04/05 for Broker/Agent Services to Provide Assistance in Determining the City's Employee Benefits Pro~ram. Issue: IShall the City Commission adopt the resolution? Item Summary/Recommendation: On February 23, 2005, the City Commission authorized the issuance of a RFP to solicit proposals from professional firms with the capacity and experience to provide broker/agent services to provide assistance in determining the City's employee benefits program. RFP No. 11-04/05 was issued on March 11,2005 with an opening date of April 15, 2005 which resulted in the receipt of proposals from Gallagher Benefit Services, Inc and HRH (Hilb Rogal & Hobbs) of South Florida. The City Manager,, via Letter to Commission (LTC)st No. .102-2005 appointed an Evaluabon' Committee ("the Committee ). Consensus at the end of the 1 Evaluabon Committee meeting was to invite both firms to provide a 20 minute presentation, followed by a 10 minute question and answer session. During deliberations at the 2~ Evaluation Committee meeting, the Committee members discussed their individual ranking and all 4 committee members ranked Gallagher Benefit Services, Inc as the top-ranked firm and HRH (Hilb Rogal & Hobbs) of South Florida as the second-ranked firm. Gallagher Benefit Services, Inc. was deemed to have the best proposal based on the specific and overall experience relating to governmental employee benefits, the qualifications of their team and current working relationship with the City's Human Resources Department. ADOPT THE RESOLUTION. idvisory Board Recommendation: Financial Information: Source of Amount Account Approved Funds: 1 2 3 4 Finance Dept. Total City Clerk's Office Legislative Tracking: IGus Lopez Sign-Offs: Dep~rtment Director. Assistant City Manager City Manager T:~AGENDA~005\Jul0605\Consent\RFP11-04-05BROKER-AG ENTSERVICES,.~J~IMARY.doc AGENDAITEM DATE CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 www.miamibeachfl.gov COMMISSION MEMORANDUM To: From: Subject: Mayor David Dermer and Date: July 6. 2005 Members of the City Commission Jorge M. Gonzalez ~c,,--'~'""'"'~ City Manager 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 THE PROPOSALS RECEIVED PURSUANT TO REQUEST FOR PROPOSALS. (RFP) NO. 11-04/05, FOR BROKER/AGENT SERVICES TO PROVIDE ASSISTANCE IN DETERMINING THE CITY'S EMPLOYEE BENEFITS PROGRAM; AUTHORIZING THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH THE TOP-RANKED FIRM OF 'GALLAGHER BENEFIT SERVICES, INC.; AND SHOULD THE ADMINISTRATION NOT BE ABLE TO NEGOTIATE WITH THE TOP-RANKED FIRM, AUTHORIZING THE ADMINISTRATION TO NEGOTIATE WITH THE SECOND-RANKED FIRM OF HRH (HILB ROGAL & HOBBS)OF SOUTH FLORIDA; AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT UPON THE COMPLETION OF SUCCESSFUL NEGOTIATIONS BY THE ADMINISTRATION. ADMINISTRATIVE RECOMMENDATION Adopt the Resolution. FUNDING The City will negotiate the fee proposal/structures which will be paid by the successful medical carrier(s). ANALYSIS The City of Miami Beach, Florida (hereinafter referred to as "the City") has a need to establish a contract with a broker/agent for services to assist the City in determining its Employee Benefits Program. The City currently has an Agreement with Gallagher Benefit Services, Inc. to assist us in PrOviding cost effective, quality benefits for City employees. This initial 4-year Agreement expired on May 5, 2005 and has been renewed on a month-to-month basis until a new Agreement is executed pursuant to this Request for Proposals (RFP). Commission Memo RFP NO. 11-04/05 Page 2 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 contract will be for a one (1) year term with an option for four (1) year renewal options upon a mutual agreement between both parties. The Broker/Agent Firm will provide, at a minimum, the following services: * Assistance to the City Administration in determining the City's Group Employee Benefits Program. * 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. 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. * Upon direction from the City, approach all acceptable companies on behalf of the City. A complete list of the companies contacted, along with their response, must be submitted. Present to the City all coverage proposals obtained. This report will 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. * Negotiate, on behalf of, and with direction from, the City with all carriers to obtain the best prices,terms and conditions available. * Review and/or assist writing Agreements/policies purchased by the City to assure their accuracy and appropriateness. * Review and evaluate existing City benefit related Agreements to provide recommendations for possible improvement of price, terms, and conditions. * Provide an annual report summarizing coverage's in place, anticipated market conditions, recommendations and strategies. * Assist the City with interpretation of benefit related regulations and compliance issues; respond to inquires from City benefit staff. Commission Memo RFP NO. 11-04/05 Page 3 * Include unlimited actuarial support with no additional fiat or hourly fees. * Provide an actuarial evaluation of retire health plans for compliance with GASB 45 (Governmental Accounting Standards Board) MINIMUM REQUIREMENTS/QUALIFICATIONS Gallagher Benefit Services, Inc. ("Gallagher") will agree not to approach any markets until authorized by the City of Miami Beach to do so. They are properly licensed and have at least one resident Florida agent, duly qualified with a minimum of at least five years experience. Throughout the term of the contract and in accordance with the laws of Florida they will act as an agent for medical, dental, life, disability, and other employee benefits as the City deems appropriate. Gallagher also has on staff an actuary with local experience (South Florida) who is a full-time member of the firm. ARTHUR J. GALLAGHER & CO/GALLAGHER BENEFIT SERVICES~ INC. · Founded in 1927 · World's Fourth Largest Insurance Brokerage and Risk Management Services Firm. · Third Largest Broker of U.S. Business · Over 8,000 Employees, 250 Sales Offices in 7 Countries. · Traded NYSE: AJG · Achieved over seven decades of profitable growth through their responsive customer service and pioneering approach in designing and implementing insurance programs. Their Primary Designated Consulting Team consists of the following individuals: Jeffrey P. Angello - Area President Richard G. Schell - Area Vice President Glen Volk, FSA, MAAA - Vice President & Consulting Actuary Colleen C. Ramos - Account Coordinator Sarah McCullough - Technical Assistant Florida Governmental Clients: · Cityof Miami Beach · Public Risk Management (21 Entity Consortium) · School Board of Broward County · Cityof Hallandale Beach · City of Sunrise · School District of Lee County · Town of Palm Beach Commission Memo RFP NO. 11-04/05 Page 4 · Palm Beach Board of County Commissioners · Monroe County School Board · PAEC (Washington & Calhoun County School Boards) Scope of Services - Prospective/Additional · Completion of 2005 Medical and Dental renewals · Preparation and Analysis of Medical Request for Proposals (RFP) · Development and Implementation of 3-year wellness program · GASB 45 valuation and recommendations for managing retiree expense · Medicare Part D- Analysis, recommendation and implementation of options · Preparation of employee survey on benefits satisfaction · Continue strong working relationship with the City acting as an additional resource and extension of the Human Resources Department. On February 23, 2005, the City Commission authorized the issuance of a Request for Proposals (RFP) to solicit proposals from professional firms with the capacity and experience to provide broker/agent services to provide assistance in determining the City's employee benefits program. RFP No. 11-04/05 was issued on March 11,2005, with an opening date of April 15, 2005. A pre-proposal conference was held on March 23, 2005. BidNet issued bid notices to 68 prospective proposers, with the City's Human Resources Department and Procurement Division supplementing with an additional 6 prospective proposers. This resulted in 10 proposers requesting RFP packages, which resulted in the receipt of the following two (2) proposals: · Gallagher Benefit Services, Inc. · HRH (Hilb Rogal & Hobbs) of South Florida The City Manager via Letter to Commission (LTC) No. 102-2005, appointed an Evaluation Committee ("the Committee") consisting of the following individuals: · Frank Recio, Property owner and retired partner with KPMG · Marsha Behr, Miami-Dade County- Risk Manager · Georgie Echert, Assistant Director of Finance, City of Miami Beach · Gladys Acosta, Acting IT Director, City of Miami Beach · Mayra D. Buttacavoli, Director of Human Resources and Risk Management, City of Miami Beach Commission Memo RFP NO. 11-04/05 Page 5 On May 25, 2005, the Committee convened. Committee Member Marsha Behr was not able to attend. The Committee was provided information relative to the scope of services, and direction relative to the Cone of Silence and Government in the Sunshine Law. Additionally, the Committee reviewed references secured by the Procurement staff, and discussed the RFP evaluation criteria and weighted score, which was used to evaluate and rank the proposals. The Committee's consensus at the end of the meeting was to invite both firms to provide a 20-minute presentation, followed by a 10-minute question and answer session. On June 21,2005, the Committee members convened and were provided presentations by both firms. After the firms' presentations, the Committee members discussed the firms proposals based on the evaluation criteria below and then ranked the firms accordingly: Evaluation Criteria/Factors: Weiaht Specific Expertise regarding the Scope of the Project & expertise with similar sized entities (i.e. hospitals, universities, etc.) 3O% Overall Expertise of the Broker relating to Employee Benefits Proposed Fee/Compensation References Total 35% 15% 2O% 100 % Company Name Mayra Georgie Gladys Frank Buttacavoli Echert Acosta Recio Gallagher Benefit Services, Inc. 95 100 93 94 (1) (1) (1) (1) (1) HRH (Hilb Rogal & Hobbs) 70 80 65 75 of South Florida (2) (2) (2) (2) (2) Gallagher Benefit Services, Inc. was deemed to have the best proposal based on the specific and overall experience relating to governmental employee benefits, the qualifications of their team and current working relationship with the City's Human Resources Department. Commission Memo RFP NO. 11-04/05 Page 6 Fee Proposal: Gallagher Benefit Services, Inc.: To receive the current 1.5% commission from the medical carrier(s) not to exceed $200,000 (Negotiable). HRH (Hilb Rogal & Hobbs) of South Florida: A fee structure paid by the medical carrier(s) not to exceed $135,000. CONCLUSION The City Manager concurs with the Evaluation Committee's recommendation and recommends that the Mayor and City Commission approve the ranking of firms, and authorize the Administration to enter into negotiations with the top-ranked firm of Gallagher Benefit Services, Inc.; and should the Administration not be able to negotiate an agreement with the top-ranked firm, authorizing the Administration to negotiate with second-ranked firm of HRH (Hilb Rogal & Hobbs) of South Florida; and further authorizing the Mayor and City Clerk to execute an Agreement upon the completion of successful negotiations by the Administration.