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Res No 101-23-16034RESOLUTION NO. 101-23-16034 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, AUTHORIZING THE CITY MANAGER TO RENEW LIFE, ACCIDENTAL DEATH AND DISMEMBERMENT AND LONG-TERM DISABILITY INSURANCE WITH MUTUAL OF OMAHA FOR EMPLOYEES FOR FISCAL YEAR 2023-2024; PROVIDING FOR IMPLEMENTATION, CORRECTIONS, AND AN EFFECTIVE DATE. WHEREAS, the City is in need of essential life, accidental death and dismemberment and long-term disability insurance for employees for Fiscal Year 2023-2024 ("Services") on an expedient basis to maintain continuous coverage; and WHEREAS, the City, through its insurance agent of record A & A Insurance Services, Inc. ("A & A Insurance"), solicited quotes from various insurance providers, including the City's current provider, Mutual of Omaha ("Mutual"); and WHEREAS, the City, through its insurance agent, A & A Insurance, obtained a renewal proposal from Mutual for the Services, attached hereto as Exhibit "A", which provided the best coverage with a minimal increase in premiums; and WHEREAS, Section 5.H. of Article III, of the City's Charter, provides that competitive bids are not applicable to the purchase of expert services that are approved by the City Commission; and WHEREAS, based upon the proposals and City Staff recommendation on the most beneficial plan available, the City Commission desires to direct the City Manager to renew life, accidental death and dismemberment and long-term disability insurance with Mutual for employees for Fiscal Year 2023-2024, and approve the proposal from Mutual attached hereto as Exhibit "A," in the approximate amount of $37,232.00 based on the budgeted full-time positions for Fiscal Year 2023-2024; and Page 1 of 3 Res. No. 101-23-16034 WHEREAS, the City Commission further desires to authorize the City Manager to execute any necessary agreements with Mutual for the Services; and WHEREAS, the premium amount shall be paid from various line items from various departments, as applicable, and charged to departmental budget line items as proposed in the Fiscal Year 2023-2024 Budget; and WHEREAS, the City Commission finds that this Resolution is in the best interest and welfare of the City and its employees. NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, AS FOLLOWS: Section 1. Recitals. The above-stated recitals are true and correct and are incorporated herein by this reference. Section 2. Authorizing the City Manager to Renew with Mutual for the Services. The City Commission hereby authorizes the City Manager to renew with Mutual for the Services and approves the proposal from Mutual attached hereto as Exhibit "A," in the approximate amount of $37,232.00 for Fiscal Year 2023-2024. The premium amount shall be paid from various line items from various departments, as applicable, and charged to departmental budget line items as proposed in the Fiscal Year 2023-2024 Budget. Section 3. Authorization. The City Manager is hereby authorized to enter into any necessary agreements with Mutual for the Services, subject to the approval of the City Attorney as to form and legal sufficiency. Section 4. Implementation. The City Manager is hereby authorized to take any and all necessary action to implement the purposes of this Resolution. Page 2 of3 Res. No. 101-23-1603 4 Section 5. Corrections. Conforming language or technical scrivener-type corrections may be made by the C ity Attorney for any co nforming amendments to be incorporated into the final resolution for s ignature. Section 6. Effective Date. This Resolution s hall become effec tive immediately up on adoption. PASSED AND ADOPTED this 15th day of August, 2023. ATTEST: c~c} READ AND APPROVED AS TO FORM, LANGUAGE, LEGALITY AND EXECUTION THEREOF & BIERMAN, P.L. CITY ATTORNEY COMMISSION VOTE: 4-0 Mayor Fernandez: Yea V ice Mayor Bonich: out of room Commissioner Calle: Yea Commis s ione r Liebman: Yea Commissioner Cor ey: Yea Page 3 of 3 Agenda Item No:6. City Commission Agenda Item Report Meeting Date: August 15, 2023 Submitted by: Samantha Fraga-Lopez Submitting Department: City Manager Item Type: Resolution Agenda Section: Subject: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, AUTHORIZING THE CITY MANAGER TO RENEW LIFE, ACCIDENTAL DEATH AND DISMEMBERMENT AND LONG-TERM DISABILITY INSURANCE WITH MUTUAL OF OMAHA FOR EMPLOYEES FOR FISCAL YEAR 2023-2024; PROVIDING FOR IMPLEMENTATION, CORRECTIONS, AND AN EFFECTIVE DATE. 3/5 (CITY MANAGER-HUMAN RESOURCES) Suggested Action: Attachments: Memo_Life__AD_D__Long-Term_23-24 (2).docx 472225502_-_Life_ADandD_LT_Disability_Insurance.docx Rates LT,AD&D,Life.pdf Comparison_Life_2022_CSM.pdf 1 CITY OF SOUTH MIAMI OFFICE OF THE CITY MANAGER TO:The Honorable Mayor, Vice Mayor & Members of the City Commission FROM:Genaro “Chip” Iglesias, City Manager DATE:August 15, 2023 SUBJECT: Life, AD&D, and Long-Term Disability Insurance for Full-Time Employees RECOMMENDATION:City Staff recommend the City renewal of the policy with Mutual of Omaha for Life, Accidental Death and Dismemberment (AD&D), and long-term disability insurance benefits from Mutual of Omaha. BACKGROUND:The City’s agent of record, A&A Insurance, solicited quotes for the employee’s Life, AD&D, and Long-Term Disability Insurance coverages for South Miami full-time employees for the Fiscal Year 2023-2024 Plan. Mutual of Omaha, the City’s current insurance carrier, provided the best coverage and a renewal rate representing a nominal $2,349 annual increase for Life Insurance and Accidental Death and Dismemberment Coverage and a 0% annual increase for Long-Term Disability coverage. Mutual of Omaha also offers the Employee Assistance Program at no cost to employees as well as travel assistance and estate planning. The renewal is appropriately funded in the proposed budget for Fiscal Year 2022-2023. AMOUNT:The estimated total annual premium cost for Life, AD&D, and Long-Term Disability Insurance benefits paid by the City would be approximately $37,232 based on the budgeted full-time positions in FY 23-24. ACCOUNT:Premium charges for Life, AD&D, and Long-Term Disability will be charged to the designated departmental budget line items as proposed in the Fiscal Year 2023-2024 budget. ATTACHMENTS:Proposed resolution Rates 2 6Q MurnaLefOmaua Renewal Information and Exhibits Prepared For: City of South Miami Group ID: G000B3LP Renewal Effective Date: October 1, 2023 Generated on: June 29, 2023 Mutual of Omaha -Confidential 7G Mu1muefOmr1Hr1 Thank you for choosing Mutual of Omaha Insurance Company or one of its affiliates, as City of South Miami's benefits provider. It has been our pleasure to provide City of South Miami with group benefits and services that are unique to its needs. We are committed to providing unparalleled service that will meet the needs of our customers. Each renewal period, we analyze current benefit and rate structures to determine the appropriate rates for continued group insurance protection for your valued employees. This process includes recalculation of the premium rates to reflect factors like: • Plan features • Demographics • Experience • Any adjustments to our underlying rate structure Based on our review, please find below the renewal rates for City of South Miami's benefit plans. We appreciate your business and look forward to the continued opportunity to meet your group insurance needs. As a producer for our company, we request that you provide the renewal rate information described in this letter to City of South Miami by July 1, 2023 in order to meet mandated renewal notice requirements. Renewal Contact Information Kendahl Harrison Renewal Executive South Florida Group Office 954/626-5205 Kendahl.Harrison@mutualofomaha.com 8MurnaL'll'OmilHil CITY OF SOUTH MIAMI LIFE AND AD&D Rate Guarantee Period -October 1, 2023 to October 1, 2025 Additional Value Added Services Included-Travel Assistance/Identity Theft Assistance Life Class Description All Eligible Full-Time Employees, excluding City Managers All Eligible Full-Time City Managers Em lo ee Rate Basis -Lives Volume Current Rate 120 $6 324 900 AD&D Class Description All Eligible Full-Time Employees, excluding City Managers All Eligible Full-Time City Managers Em lo ee Rate Basis -$0.16 Lives Volume Current Rate 120 $6 324 900 $0.02 Renewal Rate $0.19 Renewal Rate $0.02 9CITY OF SOUTH MIAMI VOLUNTARY LIFE AND AD&D Rate Guarantee Period -October 1, 2023 to October 1, 2025 Voluntary Life Class Description All Eligible Full-Time Employees, excluding City Managers All Eligible Full-Time City Managers E l mpoyee &S ipouse te as1s -per Ra B . $1 000 . Age of Employee Lives Volume Less than 24 0 $0 25-29 0 $0 30-34 3 $300,000 35-39 0 $0 40-44 3 $260,000 45-49 2 $120,000 50-54 4 $240.000 55-59 2 $250,000 60-64 4 $325,000 65-69 2 $45,500 70-74 0 $0 75-79 0 $0 80-84 0 $0 85-89 0 $0 90-100 0 $0 Child ren Rate Basis -er $10 000 Current Rate $0.07 $0.07 $0.08 $0.11 $0.19 $0.35 $0.55 $0.94 $1.07 $2.01 $3.32 $11.02 $11.02 $11.02 $11.02 Lives Volume Current Rate 5 $100 000 $2.00 0 MurnaL<tOmaua Renewal Rate $0.07 $0.07 $0.08 $0.11 $0.19 $0.35 $0.55 $0.94 $1.07 $2.01 $3.32 $11.02 $11.02 $11.02 $11.02 Renewal Rate $2.00 10Voluntary AD&D Class Description All Eligible Full-Time Employees, excluding City Managers All Eligible Full-Time City Managers Lives Volume Current Rate 20 $1540500 $0.03 Renewal Rate $0.03 11CITY OF SOUTH MIAMI VOLUNTARY SHORT-TERM DISABILITY Rate Guarantee Period -October 1, 2023 to October 1, 2025 STD Class Description All Eligible Full-Time Employees, excluding City Managers All Eligible Full-Time City Managers E 1 mp oyee e as1s-oer Rat B . 0 0 ee 1y ene t $10 fT ta1 W kl B fi Age of Emolovee Lives Volume Less than 19 0 $0 20-24 1 $329 25-29 1 $554 30-34 4 $2,562 35-39 1 $554 40-44 8 $5.451 45-49 2 $1.168 50-54 4 $2,274 55-59 5 $3.657 60-64 3 $2.263 65-69 3 $1.789 70-99 1 $824 MurnaLefOmaHa Current Rate Renewal Rate $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.34 $0.34 $0.40 $0.40 $0.53 $0.53 $0.64 $0.64 $0.73 $0.73 $0.80 $0.80 12CITY OF SOUTH MIAMI LONG-TERM DISABILITY Rate Guarantee Period -October 1, 2023 to October 1, 2025 Additional Value Added Services Included -Employee Assistance Program (EAP) LTD Class Description All Eligible Full-Time Employees, excluding City Managers All Eligible Full-Time City Managers Em lo ee Rate Basis -er $100 of Monthl Covered Pa oil Lives Volume Current Rate 120 $532 211 $0.30 MumaL.,.OmaHa Renewal Rate $0.30 October 2023 Basic Life and Long-Term Disability Comparison for City of South Miami LIFE & AD&D Carrier Eligibility/Classes All Full-Time City Managers Actively at Work All other Full-Time Employees Actively at Work Benefits Life Benefit 2x Salary to $320,000 1x Salary to $75,000 AD&D Benefit 2x Salary to $320,000 1x Salary to $75,000 Guarantee Issue $320,000 $75,000 Reduction Formula At Age 65 At Age 70 Additional Benefits Accelerated Benefit 80% to $256,000 80% to $60,000 Waiver of Premium Conversion Portability Contribution Type Participation Requirements Rate Guarantee (months) Rates Covered Volume Life Rate per $1,000 AD&D Rate per $1,000 Monthly Premium Total Annual Life/AD&D Premium % Change in Total Annual Premium $ Change in Total Annual Premium LONG TERM DISABILITY Carrier Eligibility/Classes Benefits Maximum Monthly Benefit Benefit % Elimination Period Maximum Benefit Period Pre-existing Condition Limitation Mental & Nervous Survivor Income Definition of Disabilty Own Occupation Coverage Period Contribution Type Participation Requirement Rate Guarantee (months) Rates Covered Volume LTD Rate per $100 Monthly Benefit Monthly Premium Total Annual LTD Premium % Change in Annual Premium $ Change in Annual Premium TOTAL FINANCIAL SUMMARY TOTAL ANNUAL PREMIUM Mutual of Omaha $6,917,900 $0.190 to 65% to 50% Non-Contributory Included Not Included Included 90 Days $14,420.76 Current 100% Expires 9/30/2024 $1,201.73 60% Mutual of Omaha All Full-Time Employees Actively at Work $6,000 $0.020 SSNRA 3/12 24 Months 3 Months $22,811.98 $37,231.98 Non-Contributory $1,901.00 24 Months $633,666 $0.300 100% Current Expires 9/30/2024 Page 1 of 8 13 October 2023 Basic Life and Long-Term Disability Comparison for City of South Miami LIFE & AD&D Carrier Eligibility/Classes All Full-Time City Managers Actively at Work All other Full-Time Employees Actively at Work Benefits Life Benefit 2x Salary to $320,000 1x Salary to $75,000 AD&D Benefit 2x Salary to $320,000 1x Salary to $75,000 Guarantee Issue $320,000 $75,000 Reduction Formula At Age 65 At Age 70 Additional Benefits Accelerated Benefit 80% to $256,000 80% to $60,000 Waiver of Premium Conversion Portability Contribution Type Participation Requirements Rate Guarantee (months) Rates Covered Volume Life Rate per $1,000 AD&D Rate per $1,000 Monthly Premium Total Annual Life/AD&D Premium % Change in Total Annual Premium $ Change in Total Annual Premium LONG TERM DISABILITY Carrier Eligibility/Classes Benefits Maximum Monthly Benefit Benefit % Elimination Period Maximum Benefit Period Pre-existing Condition Limitation Mental & Nervous Survivor Income Definition of Disabilty Own Occupation Coverage Period Contribution Type Participation Requirement Rate Guarantee (months) Rates Covered Volume LTD Rate per $100 Monthly Benefit Monthly Premium Total Annual LTD Premium % Change in Annual Premium $ Change in Annual Premium TOTAL FINANCIAL SUMMARY TOTAL ANNUAL PREMIUM Mutual of Omaha $6,917,900 $0.190 to 65% to 50% Non-Contributory Included Not Included Included 90 Days $14,420.76 Current 100% Expires 9/30/2024 $1,201.73 60% Mutual of Omaha All Full-Time Employees Actively at Work $6,000 $0.020 SSNRA 3/12 24 Months 3 Months $22,811.98 $37,231.98 Non-Contributory $1,901.00 24 Months $633,666 $0.300 100% Current Expires 9/30/2024 Page 2 of 8 14 October 2023 Basic Life and Long-Term Disability Comparison for City of South Miami LIFE & AD&D Carrier Eligibility/Classes All Full-Time City Managers Actively at Work All other Full-Time Employees Actively at Work Benefits Life Benefit 2x Salary to $320,000 1x Salary to $75,000 AD&D Benefit 2x Salary to $320,000 1x Salary to $75,000 Guarantee Issue $320,000 $75,000 Reduction Formula At Age 65 At Age 70 Additional Benefits Accelerated Benefit 80% to $256,000 80% to $60,000 Waiver of Premium Conversion Portability Contribution Type Participation Requirements Rate Guarantee (months) Rates Covered Volume Life Rate per $1,000 AD&D Rate per $1,000 Monthly Premium Total Annual Life/AD&D Premium % Change in Total Annual Premium $ Change in Total Annual Premium LONG TERM DISABILITY Carrier Eligibility/Classes Benefits Maximum Monthly Benefit Benefit % Elimination Period Maximum Benefit Period Pre-existing Condition Limitation Mental & Nervous Survivor Income Definition of Disabilty Own Occupation Coverage Period Contribution Type Participation Requirement Rate Guarantee (months) Rates Covered Volume LTD Rate per $100 Monthly Benefit Monthly Premium Total Annual LTD Premium % Change in Annual Premium $ Change in Annual Premium TOTAL FINANCIAL SUMMARY TOTAL ANNUAL PREMIUM Mutual of Omaha $6,917,900 $0.190 to 65% to 50% Non-Contributory Included Not Included Included 90 Days $14,420.76 Current 100% Expires 9/30/2024 $1,201.73 60% Mutual of Omaha All Full-Time Employees Actively at Work $6,000 $0.020 SSNRA 3/12 24 Months 3 Months $22,811.98 $37,231.98 Non-Contributory $1,901.00 24 Months $633,666 $0.300 100% Current Expires 9/30/2024 Page 3 of 8 15 October 2023 Voluntary Life Insurance Comparison for City of South Miami Carrier Class Benefit Descriptions Employee Spouse Children Guarantee Issue Amount Reduction Schedule Age 65 Age 70 Additional Benefits Accelerated Benefit Waiver of Premium Conversion Portability Minimum participation Rate Guarantee in months Rates per $1,000 Employee Spouse (rates based on employee's age) Under 25 $0.070 $0.070 25-29 $0.070 $0.070 30-34 $0.080 $0.080 35-39 $0.110 $0.110 40-44 $0.190 $0.190 45-49 $0.350 $0.350 50-54 $0.550 $0.550 55-59 $0.940 $0.940 60-64 $1.070 $1.070 65-69 $2.010 $2.010 70-74 $3.320 N/A 75-79 $11.020 N/A 80+$11.020 N/A Child AD&D Up to $250,000 in increments of $5,000, not to exceed 100% of employee's amount. Coverage terminates at age 70. Mutual of Omaha All Full-Time Employees Actively at Work Up to $500,000 in increments of $10,000, not to exceed 5x salary 14 days to age 26, $10,000 Employee $100,000; Spouse $30,000; Child $10,000 Included Included Included to 65% to 50% 80% to $400,000 Emp./Sp. $0.030 per $1,000 $0.200 per $1,000 Expires 9/30/2024 Current Page 4 of 8 16 October 2023 Voluntary Life Insurance Comparison for City of South Miami Carrier Class Benefit Descriptions Employee Spouse Children Guarantee Issue Amount Reduction Schedule Age 65 Age 70 Additional Benefits Accelerated Benefit Waiver of Premium Conversion Portability Minimum participation Rate Guarantee in months Rates per $1,000 Employee Spouse (rates based on employee's age) Under 25 $0.070 $0.070 25-29 $0.070 $0.070 30-34 $0.080 $0.080 35-39 $0.110 $0.110 40-44 $0.190 $0.190 45-49 $0.350 $0.350 50-54 $0.550 $0.550 55-59 $0.940 $0.940 60-64 $1.070 $1.070 65-69 $2.010 $2.010 70-74 $3.320 N/A 75-79 $11.020 N/A 80+$11.020 N/A Child AD&D Up to $250,000 in increments of $5,000, not to exceed 100% of employee's amount. Coverage terminates at age 70. Mutual of Omaha All Full-Time Employees Actively at Work Up to $500,000 in increments of $10,000, not to exceed 5x salary 14 days to age 26, $10,000 Employee $100,000; Spouse $30,000; Child $10,000 Included Included Included to 65% to 50% 80% to $400,000 Emp./Sp. $0.030 per $1,000 $0.200 per $1,000 Expires 9/30/2024 Current Page 5 of 8 17 October 2023 Voluntary Life Insurance Comparison for City of South Miami Carrier Class Benefit Descriptions Employee Spouse Children Guarantee Issue Amount Reduction Schedule Age 65 Age 70 Additional Benefits Accelerated Benefit Waiver of Premium Conversion Portability Minimum participation Rate Guarantee in months Rates per $1,000 Employee Spouse (rates based on employee's age) Under 25 $0.070 $0.070 25-29 $0.070 $0.070 30-34 $0.080 $0.080 35-39 $0.110 $0.110 40-44 $0.190 $0.190 45-49 $0.350 $0.350 50-54 $0.550 $0.550 55-59 $0.940 $0.940 60-64 $1.070 $1.070 65-69 $2.010 $2.010 70-74 $3.320 N/A 75-79 $11.020 N/A 80+$11.020 N/A Child AD&D Up to $250,000 in increments of $5,000, not to exceed 100% of employee's amount. Coverage terminates at age 70. Mutual of Omaha All Full-Time Employees Actively at Work Up to $500,000 in increments of $10,000, not to exceed 5x salary 14 days to age 26, $10,000 Employee $100,000; Spouse $30,000; Child $10,000 Included Included Included to 65% to 50% 80% to $400,000 Emp./Sp. $0.030 per $1,000 $0.200 per $1,000 Expires 9/30/2024 Current Page 6 of 8 18 October 2023 Short Term Disability Comparison for City of South Miami Carrier Mutual of Omaha Class Defined All Full-Time Employees Actively at Work Plan Benefits 60% $1,000 STD Benefit Maximum Weekly Benefit Benefit Duration 12 Weeks Pre-existing Condition Limitation 3/12 Elimination Period (days) 7 DaysAccident Illness 7 Days Contribution Type Voluntary Participation Requirement Rate Guarantee (months)Expires 9/30/2024 Rates per $10 of Weekly Benefit Current Under 20 $0.300 20-24 $0.300 25-29 $0.300 30-34 $0.300 35-39 $0.300 40-44 $0.300 45-49 $0.340 50-54 $0.400 55-59 $0.530 60-64 $0.640 65-69 $0.730 70+$0.800 Page 7 of 8 19 October 2023 Short Term Disability Comparison for City of South Miami Carrier Mutual of Omaha Class Defined All Full-Time Employees Actively at Work Plan Benefits 60% $1,000 STD Benefit Maximum Weekly Benefit Benefit Duration 12 Weeks Pre-existing Condition Limitation 3/12 Elimination Period (days) 7 DaysAccident Illness 7 Days Contribution Type Voluntary Participation Requirement Rate Guarantee (months)Expires 9/30/2024 Rates per $10 of Weekly Benefit Current Under 20 $0.300 20-24 $0.300 25-29 $0.300 30-34 $0.300 35-39 $0.300 40-44 $0.300 45-49 $0.340 50-54 $0.400 55-59 $0.530 60-64 $0.640 65-69 $0.730 70+$0.800 Page 8 of 8 20