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Res No 067-25-16359RESOLUTION NO.067-25-16359 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 2025-26 IN THE APPROXIMATE PREMIUM AMOUNT OF $56,154; 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 2025-26 (collectively,the “Services”)on an expedient basis to maintain continuous coverage;and WHEREAS,the City,through its insurance broker of record,USI Insurance Services LLC (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 Staff 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 2025-26,and approve the proposal from Mutual,attached hereto as Exhibit “A,”in the approximate premium amount of $56,154 based on the budgeted full-time positions for FY 2025-26;and 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 2025- 26 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: Page 1 of 2 Res.No.067-25-16359 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 $56,154 for FY 2025-26.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 2025-26 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. Section 4.Corrections.Conforming language or technical scrivener-type corrections may be made 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 immediately upon adoption. PASSED AND ADOPTED this 19t h day of August.2025. ATTEST:APPROVED: READ AND APPROVED AS TO FORM,COMMISSION VOTE:4-0 LANGUAGE,LEGALITY AND Mayor Javier Fernandez:Yea EXECUTION THEREOF Vice Mayor Brian Corey:Yea Commissioner Steve Calle:Yea Commissioner Danny Rodriguez:Absent Commissioner Lisa Bonich:YeaWEISS'SEROTA HELFMAN COLE &BIERMAN,P.L. CITY ATTORNEY Page 2 of 2 Subject: Suggested Action: Meeting Date:August 19, 2025 Submitted By:Nkenga Payne Submitted Department:Human Resources Item Type:Resolution Agenda Section:CONSENT AGENDA 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 2025-26 IN THE APPROXIMATE PREMIUM AMOUNT OF $56,154; PROVIDING FOR IMPLEMENTATION, CORRECTIONS, AND AN EFFECTIVE DATE. 3/5 (CITY MANAGER - HUMAN RESOURCES) Agenda Item No. 2. CITY COMMISSION Agenda Item Report Attachments: Memo_-_Life_ADD_and_LTD_Insurance_for_FY_2025-26 (1).docx Reso_Authorizing_CM_Renew_Life__AD_D_and_LTD_Insurance_with_Mutual_FY_25- 26.docx Exhibit A - Mutual of Omaha Proposal.Life AD&D LTD and Voluntary.pdf Life, AD&D and LTD 2025 Renewal Illustrations.pdf Guardian DTQ.pdf UNUM DTQ.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 19, 2025 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, Lincoln, Standard and Renaissance) for the City’s Life, AD&D, and LTD insurance coverages for South Miami full-time employees for the Fiscal Year (FY) 2025- 26. Mutual of Omaha, the City’s current insurance carrier, provided the best overall coverage. Mutual of Omaha’s Life and AD&D policy renewal for FY 2025-26 represents a rate decrease of 8.3% to the premium, lowering the annual premium to approximately $22,293. The City currently pays approximately $33,861 for Long-Term Disability coverage for eligible employees. The renewal for 2025-26 represents a rate pass with no increase to the annual premium. 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 2025-26. AMOUNT: The estimated total annual premium cost for Life, AD&D, and LTD insurance benefits paid by the City would be approximately $56, 154 based on the budgeted full-time positions in FY 2025-26. ACCOUNT: Premium charges for Life, AD&D, and LTD will be charged to the designated departmental budget line items as proposed in the FY 2025-26 budget. ATTACHMENTS: Benefit Outline and Cost Summary Proposed Resolution 2 South'*’Miami THE CITY OF PLEASANT LIVING ________________________________________________ Renewal Information and Exhibits Prepared For: City of South Miami Group ID: G000B3LP Renewal Effective Date: October 1, 2025 5 MirruaiyOmaHa 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. Renewal Contact Information Kendahl Harrison Renewal Executive South Florida Group Office 954/626-5205 Kendahl.Harrison@mutualofomaha.com 6 MtiTUdL^Omaiia CITY OF SOUTH MIAMI LIFE AND AD&D Rate Guarantee Period - October 1, 2025 to October 1, 2027 Additional Value Added Services Included - Travel Assistance/Identity Theft Assistance Life Current Monthly Premium Renewal Monthly Premium Renewal Monthly Premium Change $1,857.72 $1,857.72 $0.00 Class Description All Eligible Full-Time Employees, excluding City Managers All Eligible Full-Time City Managers Employee Rate Basis - per $1,000 Lives Volume Current Rate Renewal Rate 135 $8,444,200 $0.22 $0.22 AD&D Current Monthly Premium Renewal Monthly Premium Renewal Monthly Premium Change $168.88 $168.88 $0.00 Class Description All Eligible Full-Time Employees, excluding City Managers All Eligible Full-Time City Managers Employee Rate Basis - per $1,000 Lives Volume Current Rate Renewal Rate 135 $8,444,200 $0.02 $0.02 7 MuTuaL^Omana CITY OF SOUTH MIAMI VOLUNTARY LIFE AND AD&D Rate Guarantee Period - October 1, 2025 to October 1, 2027 Voluntary Life Current Monthly Premium Renewal Monthly Premium Renewal Monthly Premium Change $1,034.50 $1,034.50 $0.00 Class Description All Eligible Full-Time Employees, excluding City Managers All Eligible Full-Time City Managers Employee & Spouse Rate Basis - per $1,000 Age of Employee Lives Volume Current Rate Renewal Rate Less than 25 0 $0 $0.07 $0.07 25-29 3 $300,000 $0.07 $0.07 30-34 5 $530,000 $0.08 $0.08 35-39 4 $350,000 $0.11 $0.11 40-44 2 $200,000 $0.19 $0.19 45-49 3 $250,000 $0.35 $0.35 50-54 6 $510,000 $0.55 $0.55 55-59 3 $160,000 $0.94 $0.94 60-64 3 $300,000 $1.07 $1.07 65-69 1 $19,500 $2.01 $2.01 70-74 0 $0 $3.32 $3.32 75-79 0 $0 $11.02 $11.02 80-84 0 $0 $11.02 $11.02 85-89 0 $0 $11.02 $11.02 90-100 0 $0 $11.02 $11.02 Child(ren) Rate Basis - per $10,000 Lives Volume Current Rate Renewal Rate 4 $80,000 $2.00 $2.00 Voluntary AD&D 8 MuTuaL^Omana Current Monthly Premium Renewal Monthly Premium Renewal Monthly Premium Change $78.59 $78.59 $0.00 Class Description All Eligible Full-Time Employees, excluding City Managers All Eligible Full-Time City Managers Employee & Spouse Rate Basis - per $1,000 Lives Volume Current Rate Renewal Rate 30 $2,619,500 $0.03 $0.03 9 CITY OF SOUTH MIAMI VOLUNTARY SHORT-TERM DISABILITY Rate Guarantee Period - October 1, 2025 to October 1, 2027 STD Current Monthly Premium Renewal Monthly Premium Renewal Monthly Premium Change $1,301.07 $1,301.07 $0.00 Class Description All Eligible Full-Time Employees, excluding City Managers All Eligible Full-Time City Managers Employee Rate Basis - per $10 of Total Weekly Benefit Age of Employee Lives Volume Current Rate Renewal Rate Less than 19 0 $0 $0.30 $0.30 20-24 2 $867 $0.30 $0.30 25-29 6 $3,684 $0.30 $0.30 30-34 8 $6,211 $0.30 $0.30 35-39 6 $5,291 $0.30 $0.30 40-44 5 $4,098 $0.30 $0.30 45-49 2 $1,721 $0.34 $0.34 50-54 6 $3,953 $0.40 $0.40 55-59 4 $3,434 $0.53 $0.53 60-64 2 $2,000 $0.64 $0.64 65-69 2 $1,231 $0.73 $0.73 70-99 1 $1,000 $0.80 $0.80 10 MuTuaL^Omana CITY OF SOUTH MIAMI LONG-TERM DISABILITY Rate Guarantee Period - October 1, 2025 to October 1, 2027 Additional Value Added Services Included - Employee Assistance Program (EAP) LTD Current Monthly Premium Renewal Monthly Premium Renewal Monthly Premium Change $2,821.79 $2,821.79 $0.00 Class Description All Eligible Full-Time Employees, excluding City Managers All Eligible Full-Time City Managers Employee Rate Basis - per $100 of Monthly Covered Payroll Lives Volume Current Rate Renewal Rate 135 $806,224 $0.35 $0.35 11 MuTuaL^Omana 12 City of South Miami Market Review List October 1,2025 Renewal Date Carrier A.M.Best Rating Coverage Requested Status USI Preferred Notes 1413 USI 1914 City of South Miami Life /ADiD PFan Benefit Outline and Cost Summary October 1,2023 Renewal Date Benefit Outline Currenl Renewal Negotiated Renewal OptionI Option 2 Carrier Mutual cf Omaha Mutual of Omaha Mutual of Omaha Lincoln Standard Definitian ofEamings Base +Bonuses Base +Bonuses Base +Bonuses Base Salary Only Ease +Bemuses Contributory /Won-CDHtributDry Non-Contributory Nan-Contributory Nan-Contributory Non-Contributary NosvContributory Eligibility Class 1 FTE JO Hours per Week,FTE 40 Hours per Week,FTE 46 Hours per Week,FTE 40 Hours per Week,FTE 30 Hours per Week, Exd uding City Managers Excluding City Managers Exduding City Managers Excluding City Managers Exduding City Managers Class 2 FT City Managers Workings 40 FT City Managers Warking£FT City Managers Workings FT City Managers Working FT City Ma nagers Worldly a HFW 4G HPW 40 HFW 40 HFW 30 HPW Benefit Amount Class 1 IX Salary 1X Salary 1X Salary 1XSalary iX Salary Class 2 2 X Salary 2 X Salary 2 X Salary 2X5alary XXSalary Benefit Maximums Class 1 575,030 575,000 575,COO $75,000 575,COO Class 2 $320,000 $320,000 $320,000 $320,000 $320,066 Guarantee Issue $320,000 $320,000 $320,006 $320,000 $326,000 Benefit Reductions Red utes To:65%at Age 65;Reduces To:65%at Age 65;Reduces To:65%at Age 65;Reduces To:65%at Age 65;Reduces To:65%at Age 65; 50%at Age 70 50%at Age 70 50%at Age 70 50%at Age TO 50%at Age 70 Waiver of Premtum 6 Mo.Elimination Period 6 Ma.Elimination Period 6 Mo.Elimination Period 6 Mo.EtiminatKin Period 6 Me.Elimination Period Benefits Extend To 55NRA 5SNRA 5SNRA SEN.RA 5SNRA It Disabled Prior To Age -50 Age CO Age 50 Age 60 Aga 66 Accelerated Benefits 3Cft 30ft soft 75%soft Portability Wot included Not Included Not Included Not Induded Included Conversion included Included Included Induded Included Volumes,Rates L Total Cost Number of Employees 13=135 135 135 135 Benefit Volu-me $3,444,200 $3,444,200 55,444,202 $3,444,200 55,444.203 Life Rate Per $1,000 $0,220 $0,220 $0,200 50.137 $0,102 AD&D Rate Per 51,660 $0,020 $0,020 $0,020 50.020 $0,649 Annual Total $24,319 $24,310 $22,293 $20,975 Change From Current $0 l$2,027]($3,344)5101 Percentage Change 0.0%-3.3%-13.3%6.4% Rate Guarantee Until 10/1/2025 Until 10/1/2027 Until 10/1/2B27 Until 111/1/2028 Until 10/1/2026 Notes 1.Eh rollment mom 2025 Mutual of Dmaht renewal 2.The Negotiated Renewal rate is dependent on the Dental and Vision moving to Mutual of Omaha CONFIDENTIAL I ©2025 USI Insurance Services.All rights reserved. City of South Miami Long Term Disability Plan Benefit Outline and Cost Summary October 1,2025 Renewal Date Benefit Outline Current Renewal Option 1 Option 2 ≥≥≥≥ Volumes,Rates &Total Cost Notes 2215 USI 1 Cournoyer, Wendy From:Anthony Guarcello <anthony_guarcello@glic.com> Sent:Wednesday, July 9, 2025 9:52 AM To:Raquel Garcia Cc:Bailey Luke Subject:RE: City of South Miami Ancillary RFP - DUE 07/14/25 Hey team, Unfortunately, UW has issued a DTQ for this group due to uncompetitive rates and the high police demo risk. Thanks for the opportunity! Wish I had better news. Anthony Guarcello Senior Sales Representative M: 770-401-7461 anthony_guarcello@glic.com guardianlife.com From: Sent: To: Cc: Subject: [EXTERNAL] Attached please find the current & renewal rates. Raquel Garcia Team Lead – Employee Benefits USI Insurance Services 201 Alhambra Circle, Suite 900, Coral Gables, FL 33134 o: 786.454.2111 | c: 305.905.1848 Raquel.garcia@usi.com | www.usicg.com | www.usi.com | The USI Consulting Group Difference | Retirement Plan Solutions. Watch Video > 16 8 Guardian 8 Guardian +•spring health Introducing new mental wellness benefits Watch the demo USI SUMMIT AWARD WINNER 1 Cournoyer, Wendy From:Corey Holl <choll@unum.com> Sent:Wednesday, July 9, 2025 5:27 PM To:Bailey Luke; choll@unum.com Subject:We’ve run all the options for City of South Miami quote City of South Miami Hi Bailey, Thanks for giving us the opportunity to quote on the Short Term Disability Insurance, Long Term Disability Insurance, Life Insurance, Accidental Death & Dismemberment Insurance, Dental Insurance & Vision Insurance benefits for this group. After evaluating all the options, we're just not able to offer a competitive quote right now. We know we can't win them all, but we're always committed to doing everything we can. So, I hope you'll consider Unum in the future for all the services and benefits you and your clients need. Thanks again, Corey Holl We're always available to help, just reach out anytime. Corey Holl (954) 916-6874 | choll@unum.com DISABILITY LIFE ACCIDENT CRITICAL ILLNESS HOSPITAL DENTAL VISION 17 unum 2 unum.com © 2018 Unum Group. All rights reserved. Unum is a registered trademark and marketing brand of Unum Group and its insuring subsidiaries. Insurance products are underwritten by the subsidiaries of Unum Group. Not all companies do business in all jurisdictions. SD-1135 18