Res. No. 135-04-11914••._
RESOLUTION NO.135-04-1191 4
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF SOUTH MIAMI,FLORIDA,AUTHORIZING THE
CITY MANAGER TO ENTER INTO A CONTRACT WITH
STANDARD INSURANCE TO PROVIDE LIFE/ACCIDENTAL
DEATH AND DISMEMBERMENT AND LONG TERM
DISABILITY INSURANCE FOR CITY OF SOUTH MIAMI FULL
TIME EMPLOYEES;PROVIDING AN EFFECTIVE DATE
WHEREAS,the City currently contributes one hundred percent (100%)of the
premiums for life/accidental death/dismemberment andlongterm disability insurance for
its fulltime employees;and
WHEREAS,inan effort to reduce coststhe administration feltit prudent to seek
competitive bids;and-''
WHEREAS,the insurance companies that submitted proposals were:Fortis,
Highmark,Fort Dearborn,Standard Insurance and MetLife;and
WHEREAS,upon careful review of the proposals itwas determined that
Standard Insurance had the best rates among the "A"rated companies for life/ADD and
long term disability insurance;and
WHEREAS,with the selection of Standard Insurance,the designated Agent of
Record willbe Employee Benefits Consulting Groupuntilsuchtimeasthe contract
expires or until otherwise 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.The City Manager is hereby authorized to contract with Standard
Insurance forthe City's group life,ADDandlongterm disability insurance.
Section 2.The contract shall become effective October 1,2004,and shall be
renewable on an amiual basis.
Section 3.Thisengagementisatwillandshallcontinueuntileitherparty
terminatestheengagementbygivingwrittennoticetotheotherparty.TheCityshallnot
be charged foragentofrecord services.Employee Benefits Consulting Groupshallbe
compensated by the insurer.
Section 4.Thisresolutionshalltakeeffectimmediatelyuponapproval.
Pg.2 of Res.No.135-04-11914
PASSEDAND ADOPTED this^thgay of August t 2004.
ATTEST:APPROVED:
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READ AND APPROVED AS TO FORM:
C:\INSURANCE RESOLUTION rev 2004.doc
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Commission Vote:5-0
Mayor Mary Scott Russell:Yea
Vice Mayor Velma Palmer:Yea
Commissioner Randy G.Wiscombe:Yea
Commissioner CraigZ.Sherar:Yea
Commissioner MarieBirts-Cooper:Yea
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CITY OF SOUTH MIAMI lilf
INTEROFFICE MEMORANDUM *1D *•
2001
TO:Honorable Mayor,Vice Mayor ;DATE:August 17,2004
&City Commission ^*
FROM:Maria V.Davis /JA}Cfj Aj1/<ITEMNo._Jl
City Manager /^'f/JAAyuJ RE:Selection of Life/Accidental
Death &Dismemberment and Long
Term Disability Insurance
RESOLUTION
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF SOUTH MIAMI,FLORIDA,AUTHORIZING THE CITY MANAGER TO
ENTER INTO A CONTRACT WITH STANDARD INSURANCE TO PROVIDE
LIFE/ACCIDENTAL DEATH AND DISMEMBERMENT AND LONG TERM
DISABILITY INSURANCE FOR CITY OF SOUTH MIAMI FULL-TIME
EMPLOYEES;PROVIDING AN EFFECTIVE DATE.
REQUEST
TheattachedresolutionrecommendsthattheCityCommissionauthorizetheCity Manager to
signa two-year contractwith Standard Insurance toprovide Life/ADD andLTDinsurance
coverageforthe City's full timeemployees.
BACKGROUND
Currently,theCitycontributesonehundredpercent (100%)of thepremiumsforLife/Accidental
Death&Dismemberment andLongTermDisabilityinsurancetoall of the City's fulltime
employees.Aspartofour ongoing cost-cutting measures,weunderwentareviewofcurrent
carriers'ratesincomparisontoother insurance carriersinthemarket.Wesolicitedbids from
several companies.Those responding wereFortis,Highmark,Fort Dearborn,Standard Insurance
andMetlifeInsurance.Uponreviewingalltheproposals,werecommendtheselection of
Standard Insurance.
ANALYSIS
Itis estimated that selection of thenew carrier will result in projected annual savings of
approximately $12,486inthe 2004-2005 general fund'sbudget,withoutreducingbenefitsfor
our employees.
RECOMMENDATION
Approval of the resolution is recommended.
Attachments:Insurance Bid Proposals