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Res No 114-24-16219RESOLUTION NO. 114-24-16219 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 DISABIUTY INSURANCE WITH MUTUAL OF OMAHA FOR ELIGIBLE EMPLOYEES FOR FISCAL YEAR 2024-25 IN THE APPROXIMATE PREMIUM AMOUNT OF $44,242; PROVIDING FOR IMPLEMENTATION, CORRECTIONS, AND AN EFFECTIVE DATE. WHEREAS, the City of South Miami (the "City) is in need of essential Life, Accidental Death & Dismemberment {AD&D) and Long-Term Disability {LTD) insurance for employees for Fiscal Year 2024-25 (collectively, the "Services") on an expedient basis to maintain continuous coverage; and WHEREAS, the City, through its insurance broker of record, US-I Insurance Services Inc., Inc. (the "Insurance Broker"), solicited quotes from at least three carriers, including the City's current provider, Mutual of Omaha ("Mutual"); and WHEREAS, the City, through its Insurance Broker, obtained a renewal proposal from Mutual for the Services, attached hereto as Exhibit "A"; 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 received and City Sta.fr recommendation on the most beneficial plan available, the City Commission desires to direct the City Manager to renew Life, AD&D and LTD insurance with Mutual for employees for FY 2024-25, and approve the proposal from Mutual, attached hereto as Exhibit "A,'' in the approximate premium amount of $44,242 based on the budgeted full-time positions for FY 2024-25; and Page 1 of3 Res. No. 114-24-16219 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 FY 2024- 25 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 the Services with Mutual and approves the proposal from Mutual, attached hereto as Exhibit "A," in the approximate premium amount of $44,242 for FY 2024-25. 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 FY 2024-25 Budget. Section 3. Implementation. The City Manager is hereby authorized to take any and all necessary action to implement the purposes of this Resolution, including executing any necessary agreement(s) with Mutual for the Services, subject to the approval of the City Attorney as to form and legal sufficiency. Page 2 of3 Res. No. 114-24-1621 9 Section 4. Corrections. Conforming language or technical scri vener-type corrections may be mad e by the City Attorney for any conforming amendments to be incorporated into the final resolution for signature. Section 5. Effective Date. This Resolution shall become effective immedi ately upon adoption. PASSED AND ADOPTED thi s 20th day of August , 2024. READ AND APPROVED AS TO FORM, LANGUAGE, LE GALITY AND EXECUTION THEREOF & , .. CITY ATTORNEY LFMANCOLE COMMISSION VOTE : M ayo r Fernandez: Vice M ayor Bonich: Commissioner Calle: Commissioner Liebman : Commissioner Corey: Page 3 of3 4 -0 Yea Absent Yea Yea Yea Agenda Item No:19. City Commission Agenda Item Report Meeting Date: August 20, 2024 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 ELIGIBLE EMPLOYEES FOR FISCAL YEAR 2024-25 IN THE APPROXIMATE PREMIUM AMOUNT OF $44,242; PROVIDING FOR IMPLEMENTATION, CORRECTIONS, AND AN EFFECTIVE DATE. 3/5 (CITY MANAGER-HUMAN RESOURCES & RISK MANAGEMENT DIVISION) Suggested Action: Attachments: Memo - Life ADD and LTD Insurance for FY 2024-25.docx 49E7676-Reso Authorizing CM Renew Life, AD&D and LTD Insurance with Mutual FY 24-25.DOCX Benefit Comparison.pdf Sunlife Denial to Quote Email (002).pdf DTQ Lincoln.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 20, 2024 SUBJECT: Life, AD&D, and Long-Term Disability Insurance for Eligible Employees RECOMMENDATION:Authorize the City Manager to renew the City’s policy with Mutual of Omaha for Life, Accidental Death &Dismemberment (AD&D), and Long- Term Disability (LTD)insurance benefits from Mutual of Omaha. BACKGROUND:The City’s insurance broker of record, US-I Insurance Services Inc., solicited quotes from at least three carriers (Mutual of Omaha, UnitedHealthcare, and Sunlife) for the City’s Life, AD&D, and LTD insurance coverages for South Miami full-time employees for the Fiscal Year (FY) 2024-25. Mutual of Omaha, the City’s current insurance carrier,provided the best overall coverage. The City currently pays an approximate annual premium of $15,939 for Mutual of Omaha’s Life and AD&D policy.The renewal represents an approximate increase of $3,036, annually. The City currently pays approximately $20,486 for Long-Term Disability coverage for eligible employees. The renewal for 2024-25 represents an increase of $4,781, annually. Mutual of Omaha also offers the Employee Assistance Program at no-cost to employees,as well as travel assistance,and estate planning. Mutual of Omaha has always been highly responsive and has worked well with the City throughout the relationship. The renewal is appropriately funded in the proposed budget for FY 2024-25. AMOUNT:The estimated total annual premium cost for Life, AD&D, and LTD insurance benefits paid by the City would be approximately $44,242 based on the budgeted full-time positions in FY 2024-25. ACCOUNT:Premium charges for Life, AD&D, and LTD will be charged to the designated departmental budget line items as proposed in the FY 2024-25 budget. ATTACHMENTS:Ancillary Benefits Market Comparison Proposed Resolution 2 6City of South Miami Life / AD&D Plan Benefit Outline and Cost Summary October 1, 2024 Renewal Date Benefit Outline Carrier Definition of Earnings Contributory/ Non-Contributory Eligibility Class I Class II Benefit Amount Class I Class II Guarantee Issue Benefit Reductions Waiver of Premium Benefits Extend To If Disabled Prior To Accelerated Benefits Portability Conversion Volumes, Rates & Total Cost Number of Employees Benefit Volume Life Rate Per $1,000 AD&D Rate Per $1,000 Annual Total Rate Guarantee Notes Current Renewal Mutual of Omaha Insurance Mutual of Omaha Insurance Base + Bonuses Base+ Bonuses Non-Contributory Non-Contributory FTE 40 Hours per Week, FTE 40 Hours per Week, Excluding City Managers Excluding City Managers FT City Managers Working 2: FT City Managers Working 2: 40HPW 40HPW 1 X Salary to $75,000 1 X Salary to $75,000 2 X Salary to $320,000 2 X Salary to $320,000 $320,000 $320,000 Reduces To: 65% at Age 65; Reduces To: 65% at Age 65; 50%atAge 70 50%atAge 70 6 Mo. Elimination Period 6 Mo. Elimination Period SSNRA SSNRA Age60 Age60 80% 80% Not Included Not Included Included Included 120 120 $6,324,900 $6,324,900 $0.190 $0.230 $0.020 $0.020 $15,939 $18,975 Until 10/1/2024 Until 10/1/2025 1. Rates include bundling discount for life, & disability. Rates increase if all lines of coverage are not selected. 2. Enrollment source: Mutual of Omaha renewal. JNFIDENTIAL I© 2024 USI Insurance Services. All rights reserved. Option 1 UnitedHealthcare Base Salary Only Non-Contributory FTE Working 2: 30 HPW Excluding City Managers FT City Managers Working 2: 30HPW 1 x Salary to $75,000 1 x Salary to $320,000 $25,000 / $320,000 Reduces To: 65% at Age 65; 50% at Age 70 9 Mo. Elimination Period Age65 Age60 80% Not Included Included 120 $6,324,900 $0.210 $0.020 $17,457 Until 10/1/2027 7City of South Miami Long Term Disability Plan Benefit Outline and Cost Summary October 1, 2024 Renewal Date Benefit Outline Carrier Definition of Earnings Contributory/ Non-Contributory Eligibility Benefit Percentage Maximum Monthly Benefit Definition of Disability Own 0cc Period Earnings Loss (EP /Own/ Any) Elimination Period Benefit Duration Work Incentive Period Survivor Benefit Alcohol and Drug Benefit Limit Mental Nervous Benefit Limit Self-Reported / Chronic Fatigue Limit Pre-Existing Conditions Exclusion Rehabilitation Embedded EAP Volumes, Rates & Total Cost Number of Employees Volume: Covered Payroll LTD Rate Per $100 Annual Total Rate Guarantee Benefit Level Review Current Maximum Annual Salary Covered Number of Underinsured Employees Notes Current Renewal Mutual of Omaha Mutual of Omaha Base+ Bonuses Salary Non-Contributory Non-Contributory FTE Working.:: 40 HPW FTE Working.:: 40 HPW 60% 60% $6,000 $6,000 Duties AND Earnings Duties AND Earnings 24 Months 24 Months 0%/ 1%/ 15% 0%/1%/15% 90 days 90 days To SSNRA ToSSNRA Benefit Duration Benefit Duration 3 Months 3 Months 24 Mos. Per Occurrence 24 Mos. Per Occurrence 24 Mos. Per Occurrence 24 Mos. Per Occurrence No Limit No Limit 3/12 3 / 12 Voluntary Voluntary Included w/ 3 F2F visits Included w/ 3 F2F visits 125 125 $569,068 $569,068 $0.300 $0.370 $20,486 $25,267 Until 10/1/2024 Until 10/1/2025 $120,000 $120,000 14 14 1. Rates include bundling discount for life, & disability. Rates increase if all lines of coverage are not selected. ONFIDENTIAL I © 2024 USI Insurance Services. All rights reserved. Option 1 UnitedHealthcare Base + Commissions Non-Contributory FTE Working.:: 40 HPW 60% $6,000 Duties AND Earnings 24 Months 20% / 20% / 40% 90 Days To SSNRA 12 Months 3 Months 24 Mos. Lifetime 24 Mos. Lifetime No Limit 3/12 Voluntary Included 125 $569,038 $0.370 $25,265 Until 10/1/2027 $120,000 14 From:Lisa Calzadilla To:Gonzalez, Jazmin; Howard Aberman Cc:Fraga-Lopez, Samantha; Kurt Cushing Subject:RE: Ancillary quote and summary Date:Monday, August 12, 2024 4:55:13 PM Attachments:image005.png image007.png image009.png EMAIL RECEIVED FROM EXTERNAL SOURCE Hi Jazmin, Please see below from SunLife. Lisa Calzadilla Employee Benefits Consultant USI Insurance Services 201 Alhambra Circle, Suite 900, Coral Gables, FL 33134 lisa.calzadilla@usi.com | www.usi.com ® c: 305.962-6976 8 TO: USI Insurance Services FROM: Lincoln Financial Group DATE: August 12, 2024 RE: City of South Miami Thank you for giving Lincoln Financial Group Insurance Company the opportunity to review the specifications for the above group. Unfortunately, we are unable to offer a proposal for this very important client due to group demographics. It is with much regret our response is unfavorable; however, please keep us in mind for future cases. Again, thank you very much for thinking of us. Lincoln Financial Group Abe Falkowitz Senior Account Director 954 599-5243 9