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6To: Via: From: Date: South Miami The Honorable Mayor & Members of the City Commission Buford R. Witt, Acting City Manager Carmen V. Baker, Acting Human Resources Manager August 17, 2010 Subject: Long Term Disability Resolution Agenda Item No.: Request: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, AUTHORIZING THE CITY MANAGER TO RENEW THE CONTRACT WITH STANDARD INSURANCE TO PROVIDE GROUP LONG TERM DISABILITY INSURANCE FOR CITY OF SOUTH MIAMI FULL TIME EMPLOYEES. TO BE CHARGED TO DEPARTMENTAL ACCOUNT NUMBERS RESPECTIVELY; PROVIDING FOR AN EFFECTIVE DATE. Reason /Need: We have received renewal rates from our current group Long Term Disability insurance carrier, Standard Insurance. Standard Insurance proposed a 18.8% decrease for the Long Term Disability Insurance. Long Term Disability (Rate Guarantee Period: 2 Years thru 9/3012012) $0.195 (per $100 of mo. payroll) The City would cover the 100% of the $14,122 annual rate for Long Term Disability. Based on current enrollment assumptions (142 FTE), the annual decrease from this year to the next two years would be approximately $3,258.00 per year. Current staffing levels are at 144 full time employees. Backup Documentation: ❑ Proposed Resolution ❑ Proposed Long Term Disability Rates RESOLUTION NO: 3 A Resolution of the Mayor and City Commission of the City of South Miami, 4 Florida, authorizing the City Manager to enter into a contract with Standard 5 Insurance to provide Long Term Disability insurance for City of South 6 Miami full -time employees. To be charged to departmental account numbers 7 respectively; providing for an effective date. 10 WHEREAS, the City currently contributes one hundred percent (100 %) of the premiums 11 for life /accidental death/dismemberment insurance for its fulltime employees; and, 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 WHEREAS, currently, the City's is up for renewal with Standard Insurance; and, WHEREAS, the insurance carrier (Standard Insurance) proposed a 18.8% decrease the next two (2) plan years; and, WHEREAS, with the selection of Standard Insurance, the designated Agent of Record will be Employee Benefits Consulting Group until such time as the contract expires or until determined by either party. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, THAT; Section 1. This contract with Standard Insurance shall be effective October 1, 2010 and shall be renewable on an annual basis. Section 2. This engagement is at will and shall continue until either party terminates the engagement by giving written notice to the other party. The City shall not be charged for agent of record services, Employee Benefits Consulting Group shall be insurer. Section 3. This resolution shall talce effect immediately upon approval. PASSED AND ADOPTED this —day of —12010. ATTEST: CITY CLERK READ AND APPROVED AS TO FORM: CITY ATTORNEY APPROVED: MAYOR Commission Vote: Mayor Phillip Stoddard: Vice Mayor Valerie Newman: Commissioner Brian D. Beasley: Commissioner Velma Palmer: Commissioner Walter Harris: WAMy Documentsiresolutions Htesolution LTD tnsurance.doc Contract with Standard Insurance to provide Long Tenn Disability Insurance