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Res. No. 003-98-10270RESOLUTION NO.3-98-10270 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI,FLORIDA,RELATING TO ENGAGEMENT OF AMI RISK CONSULTANTS INCORPORATED TO PROVIDE FULL CONSULTING SERVICES ON THE BIDS RECEIVED FOR EMPLOYEE GROUP HEALTH,DENTAL,AND LIFE INSURANCE PLANS;FOR AN AMOUNT NOT EXCEEDING $2,500.00 AND CHARGING THE DISBURSEMENT TO ACCOUNT NUMBER 001-1420-519-3450,TITLED "CONTRACTUAL SERVICES". WHEREAS,by approval of Resolution Number 185-97-10155,theCity Commission authorized theCity Manager to solicit bidsforCity employees group health,dentalandlife insurance plans;and WHEREAS,in response totheCity newspaper advertisement requesting proposals on these plans,thirty six bid packages have been submitted tothe City by various companies,alist of the companies is attached herewith as part of the resolution,and WHEREAS,inanattempttoensureathorough independent review of thebids;conduct professional interview of bidders'representatives;and obtain a written recommendation tothe City Commission,theCity Administration wishestoengagean insurance consultant,and WHEREAS,in compliance with City bid requirements,bid solicitation for consulting servicewas made by contacting severalinsurance consultants selected fromthe phone book,and WHEREAS,AMI Risk Consultants Inc.is the lowest bidder of the two bids received. NOW,THEREFORE,BEIT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI: Section 1.That theCity Manager is authorized to contract withAMIRisk Consultants for review of allthebids received onCity employee health,dentalandlife insurance plans. Section 2.That the disbursement be charged to account number 001-1420-519-3450. Section 3.That this resolution shalltake effect immediately upon approval. PASSED AND ADOPTED thisSth dayof January ,1998. ATTEST: CITY CLERK READ AND APPROVED AS TO FORM:COMMISSION VOTE:5-0 Mayor Price:Yea Vice Mayor Robaina:Yea CITYATTORNEY Commissioner Bethel:Yea Commissioner Oliveros:Yea Commissioner Young:Yea fMffl CITY OF SOUTH MIAMI INTER-OFFICE MEMORANDUM To:Mayorand Commission Date:January 2,1998 $3?/^Agenda Item #^ From:DianaMorris Subject:Comm.Mtg.l/ft/98 CityManager InsuranceConsultant Thisresolutionapprovesandauthorizesacontract with AMI Risk Consultants toprovide review and recommendation forthe city's employee health,dentaland life insurance.Thecost willbe$2,500.00andwillbepaidfrom Account #001-1420-519-3450,"ContractualServices." We notified severalInsurance Consultant firms of our requirements forservicesto review the 36proposals received by thecity.Only two companies replied to our requestforbids.AMI providedthe lowest bid forthisservice. I recommend yourapproval. DECEMBER 19,1997 -*:15PM HEALTH INSURANCE BID PROPOSALS 1.FOUNDATION HEALTH SEAN BARRIOS,CORP. CORPORATE ACCOUNT EXECUTIVE 2.THE PRINCIPAL FINANCIAL GROUP PETER MEYER 3.UNITED HEALTHCARE PETER MEYER 4.NEIGHBORHOOD HEALTH PARTNERSHIP AND JOHN ALDEN HEALTH PETER MEYER SUSAN REDDING JEFFREY M.EPSTEIN 5.CIGNA HEALTH CARE PETER MEYER 6.HUMANA •7.DELTA DENTAL INSURANCE CO. McKINLEY FINANCIAL SERVICES,INC. 8.SECURITY MUTUAL LIFE McKINLEY FINANCIAL SERVICES,INC. 9.UNUM LIFE INSURANCE CO.OF AMERICA McKINLEY FINANCIAL SERVICES,INC. 10.GUARANTEE LIFE 11.TRANS-GENERAL LIFE 12.GROUP LIFE &ACCIDENTAL DEATH AND DISMEMBERMENT McKINLEY FINANCIAL SERVICES,INC. 14.AVMED ELOISA SANCHEZ 15.MCNA DENTAL INS. 16.UNITED HEALTHCARE 17.COMBINED INS.CO PHILLIP S.PLOTKA 18.METLIFE 19.UNITEDHEALTH CARE ELIZABETH TOSSAS-GARCIA 20.AMERICAN HERITAGE LIFE 21.COMBINED INSURANCE CO. SUSAN PERRY REDDING 22.NATIONAL PLANNING CORP. 23.UNITED HEALTH CARE 24.THE GUARDIAN ROBERT T.ROSS 25.STANDARD INSURANCE CO. JUAN COMENDEIRO SUSAN PERRY REDDING 26.BOSTON MUTUAL LIFE INS. KENNETH J.DEANGELIS 28.FLORIDA COMBINED LIFE INS. 29.BLUE CROSS AND BLUE SHIELD LORRAINE McLEGGAN 30.TOTAL HEALTH CHOICE SUSAN P.REDDING 31.TRANS GENERAL LIFE AND CASUALTY SIDNEY E.GARTENBERG 32.MIC MARIN INSURANCE 33.HUMANA 34.UNITED HEALTH CARE 35.NEIGHBORHOOD HEALTH PARTNERSHIP 36.SUNMED MYRNA MARIN <, 12-31-1997 02:54PM FROM TO 6677806 P.01 ^\]VII RtokConsultants,Inc. 114:10 N.Kendall Drive.Suite 208 Tel.(305)273-1589 409 Piccadilly Place,#6 Tel.(415)873.4278 Miami.Florida 33176 Fax (305)274-4706 San Brujno.CA 94066 Fax (415)873-7068 Deceraber3l,1997 Mr.Hakeem Oshikoya , FinanceDirector I City ofSouth Miami | 6130 Sunset Drive I South MiaimVFL 33143 SENT\ViA FAX (305)667-7806 i RE:Proposal to Review Insurance Bids I i Dear Mr.Oshikoya:j Thank you for allowing AMI Risk Consultants,Inc.(AMI)|to submit a quote for the review of thcJ health,dental and life insurance bids received by the City of South Miami ("theCity"). Background on AMI Risk Consultants,Inc.(AMI)! AMI isa property/casualty actuarial and risk management consulting firm that specializes in performing insurance and actuarial reviews for Florida riunicipalities. j Advantages ofEngaging AMI \ i ♦Expert Staff j Our staff includes Fellows of the Casualty Actuarial Society (FCAS),Chartered Property Casualty Underwriters (CPCU)and Associate of Risk Management designees with many years of insurance industry experience. Experience working for Florida Municipalities Prompt and Responsive Service Our clients have engaged us because they know we fully commit our resources to deliver prompt and responsive service.We pride ourselves in our ability to not only identify and communicate potential problems but to aijd in their resolution.//is our practice to send a draft report within two weeks of our receipt ofall required information,and to send afinal report within a week ofdiscusstng the draft report. Actuaries •Risk Management Consultants I V 12-31-1997 05:48PM FROM TO AMI Risk Consultants,Inc. 11410 Nj Kendall Drive.Suite208 Miami.Florida 33176 Tel.(303)273-1589 Fax (305)274-4706 December 31,-1997 iMr.Hakeem Oshikoya !FinanceDirector |City ofSouth Miami 6130 Sunset Drive |South Miami,FL 33143 I RE:Proposal to Review Insurance Bids Dear Mr.Oshikoya: Because there are 36 insurance bids that need to be reviewed instead of the 22 bids that weoriginally!understood,wearerevisingourquotetoafixedfee of $2,500. •i If want to discuss our proposal please call me at 305-273-11589. 409 Piccadilly Place,#6 San Bruijio.CA 94066 6677806 P.01 Tel.(415)873-4278 Fax (415)873-7068 SENTVLi FAX(305)667-7806 Sincerely Bob Ingco,FCAS,MAAA,CPCU,ARM !President Actuaries *Risk Management Consultants TOTAL P.01 6 12-31-199702:54PMFROM I 1 I ;Mr.Hashim Oshikoya j City ofSouth Miami ! December 31,1997 Page 2 | i •Communication j !!l!You will be well informed of project status.We are|committed to working closely with you to assure that project findings and subsequent recommendations are consistent withyour objectives and reflectyour concerns and considerations. •Reasonable Cost i Due to our relentless efforts to improve our productivity,we manage to maintain low overhead;costs.Consequently,you can be assured of the same or better quality product and services atvery competitive rates. Work Plan AMIwillreviewthe various insurance bids and recommenjd thebid that ismost advantageous totheCity. Wewillfollowthese procedures:i j •Analyze thevariousinsurancebidsinaccordance with criteriathat we think is appropriate.j i •Prepare a report describing our recommendation andits basis. •Present our recommendations totheCity.i We should be able to present you with our initial draft witltin two weeks of obtaining all our required information. Data Requirements i !To commence the engagement,wewill require acopyof all the insurance bids submitted totheCity. Estimated Fees We will bill you afixed fee of $1J00.j J2*^?/3jl*&j^c\i -^b j Ifwant to discuss our proposal please call me at 305-273-1(589.+SO 0$fa*///i^>^. i. j:Sincerely flW Bob Ingco,FCAS,MAAA,CPCU,ARM President TO AMI Risk Consultants,Inc. 6677B06 P.02 0 12-31-1997 02:55PM FROM TO 6677806 P.03 Bob Ingco,FCAS,MAAA,CPCU,AMI ProfessionalandBusiness Experience Professional and Business History Mr.Ingco hasover twenty-five years of actuarial andriskmanagement consulting experience.His expertise isin estimating andanalyzinglossreserves and indev eloping self-insurance premium rates.He has worked inthe following risk management functions:risk financing, claims,riskadministration,budgeting,and allocation ofinsurance cost.Hehas also performed insurance effectiveness and claims administrative reviews.He has extensive experience in developing self- insurance premium ratesforsuchlines of business as workers'compensation,private passenger and commercial automobile liability,general liability,professional liability,homeowners,commercial multi- periland employee benefits. Education and Certifications Bob graduated from theUnitedStates Naval Academy in 1970 with a B.S.degree in Mathematics and Physics.He graduated withacademicranking of 17out of 840. He isaFellow ofthe Casualty Actuarial Society (FCAS),Member of the American Academy ofActuaries (MAAA),Chartered Property Casualty Underwriter (CPCU),and an Associate inRisk Management (ARM), AMI Risk Consultants.Inc..Miami.Florida 1992 to present:President and Consulting Actuary.Currently provides actuarial and risk management consultingservicesto insurance regulators,insurance companies, self-insurance!funds and captive insurance companies.| Price Waterhduse.Miami.Florida 1984-1992:/{ctoaiy and Director.For eight years,providejd actuarial support and assistanceregardingaudits of andconsulting services for insurance companies,health maintenanceorganizationsandotherself- insurance funds. | Booke &Co.(McNearv Risk Manaeemenrt Charlotte.Nocth Carofing 1981-1984:Vjice President and Actuary. Performed feasibility studiesrelatingtothe formation of malpractice insurance companies.Performed rate filings andloss reserves analysis. Fireman's Fund Insurance Co.. San Francisco!California 1978 -1981:Associate Actuary American International Group Insurance. New York.NY 1974 -1978:Assistant Actuary i North American Re.New York.NY 1972-1974:Actuarial Assistant d 12-31-1997 02:55PM FROM i < AMPs Client Listing MI assisjts non-insuranceclientsin theiridentification,measurement,and -treatment of potentiallossesbyprovid ingconsultingservices in self-insurance and captive insurance feasibilitystudies,insurance effectiveness reviews and claims administra tion effectiveness reviews. Wealsospecialiseinlossreserving analysis, alternative risk financing analysis,and statisti cal analysis.AMI hasperformedloss reserves calculations andjrisk management consultancy services for entities that include the following: A! t t ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ Commonwealth ofPennsylvania - Department oflabor &Industry State ofMichiganInsuranceBureau State ofCalifornia Insurance Dept State ofOregonInsuranceDivision State ofOklahomaInsurance Dept StateofWisconsin Insurance Dept State ofOhioInsurance Department State ofMaine Insurance Bureau City ofMiamiBeach (FL) City ofNorthMiamiBeach (FL) City of Vero Beach (FL) City ofCoral Gables (FL) City ofkissimmee (FL) City ofHollywood(FL) CityofGainesvilie^L) City ofTamarac (FL) City ofThousandOaks (CA) City ofRivieraBeach (FL) City ofPompano Beach (FL) City of peerfield Beach (FL) Village ofMiamiShores (FL) County ofAlachua (FL) RockinghamCounty (NH) Bay County (Ml) Collier CountyPublicSchools (FL) School BoardofBroward County (PL) ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ TO 6677806 P.04 School Board ofDadeCounty (FL) FloridaPower&Light Corporation West MichiganRisk Mgmt Trust Metropolitan Association for Improved School Legislation (MI) BurgerKingCorporation (FL) McDonald'sCorporation QL) ArCker DanielsMidland (1L) Kmart Corporation (MI) Value Rent-A-Car {TV) Alterman TruckingCorporation (FL) OldDominion Freight Line (NC) Alcb Standard Corp (NC) Pinfcerton's Inc.(CA) PerdueFarms (MD) Asjfyundh Tree Expert Co.(PA) Eaton Corporation (OH) BrdyhiU Furniture (NC) Owfns Corning Corporation (OH) CarolinaFreightLineCorp.(NC) PublicServices ofNew Hampshire GuilfordMills (NC) Kelly Services (Ml) ResolutionTrustCorporation (DC) Neti England PowerService (MA) Hansen,Inc.(NH) METSPool (MT) Fladey Company (NH) Blue CrossBlueShield ofFL Blue CrossBlueShield ofNC Union American Insurance (FL) CIGNA PropertyandCasualty (PA) Capital Cay InsuranceCo.(SC) Conestoga InsuranceCompany (AZ) Fidelity National Insurance Co.(FL) Sou^r Insurance Co.(Bermuda) LincolnMutualCasualty Co.(MI) Z-MontInsurance Company (VT) EnkewoodRe (Bermuda) United Insurance Company- R-Pooland Nexus Treaties (BWI) TOTAL P.04 C