08-17-04 Item 7p4 6OUT South Miami
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" INCORPORATED CITY OF SOUTH MIAMI
•�� o ? 7 INTEROFFICE MEMORANDUM
TO: Honorable Mayor, Vice Mayor DATE: August 17, 2004
& City Commission
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FROM: Maria V. Davis L� ITEM No.
City Manager 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
The attached resolution recommends that the City Commission authorize the City Manager to
sign a two -year contract with Standard Insurance to provide Life /ADD and LTD insurance
coverage for the City's full time employees.
BACKGROUND
Currently, the City contributes one hundred percent (100 %) of the premiums for Life /Accidental
Death & Dismemberment and Long Term Disability insurance to all of the City's fulltime
employees. As part of our ongoing cost - cutting measures, we underwent a review of current
carriers' rates in comparison to other insurance carriers in the market. We solicited bids from
several companies. Those responding were Fortis, Highmark, Fort Dearborn, Standard Insurance
and Metlife Insurance. Upon reviewing all the proposals, we recommend the selection of
Standard Insurance.
ANALYSIS
It is estimated that selection of the new carrier will result in projected annual savings of
approximately $12,486 in the 2004 -2005 general fund's budget, without reducing benefits for
our employees.
RECOMMENDATION
Approval of the resolution is recommended.
Attachments: Insurance Bid Proposals
I RESOLUTION NO.
2
3 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
4 THE CITY OF SOUTH MIAMI, FLORIDA, AUTHORIZING THE
5 CITY MANAGER TO ENTER INTO A CONTRACT WITH
6 STANDARD INSURANCE TO PROVIDE LIFE /ACCIDENTAL
7 DEATH AND DISMEMBERMENT AND LONG TERM
8 DISABILITY INSURANCE FOR CITY OF SOUTH MIAMI FULL -
9 TIME EMPLOYEES; PROVIDING AN EFFECTIVE DATE
10
11 WHEREAS, the City currently contributes one hundred percent (100 %) of the
12 premiums for life /accidental death/dismemberment and long term disability insurance for
13 its fulltime employees; and
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15 WHEREAS, in an effort to reduce costs the administration felt it prudent to seek
16 competitive bids; and
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18 WHEREAS, the insurance companies that submitted proposals were: Fortis,
19 Highmark, Fort Dearborn, Standard Insurance and MetLife; and
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21 WHEREAS, upon careful review of the proposals it was determined that
22 Standard Insurance had the best rates among the "A" rated companies for life /ADD and
23 long term disability insurance; and
24
25 WHEREAS, with the selection of Standard Insurance, the designated Agent of
26 Record will be Employee Benefits Consulting Group until such time as the contract
27 expires or until otherwise determined by either party.
28
29 NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY
30 COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA THAT
31
32 Section 1. The City Manager is hereby authorized to contract with Standard
33 Insurance for the City's group life, ADD and long term disability insurance.
34
35 Section 2. The contract shall become effective October 1, 2004, and shall be
36 renewable on an annual basis.
37
38 Section 3. This engagement is at will and shall continue until either party
39 terminates the engagement by giving written notice to the other party. The City shall not
40 be charged for agent of record services. Employee Benefits Consulting Group shall be
41 compensated by the insurer.
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43 Section 4. This resolution shall take effect immediately upon approval.
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PASSED AND ADOPTED this
ATTEST:
CITY CLERK
day of 12004.
READ AND APPROVED AS TO FORM:
CITY ATTORNEY
CAINSURANCE RESOLUTION rev 2004.doc
APPROVED:
MAYOR
Commission Vote:
Mayor Mary Scott Russell:
Vice Mayor Velma Palmer:
Commissioner Randy G. Wiscombe:
Commissioner Craig Z. Sherar:
Commissioner Marie Birts- Cooper: