HomeMy WebLinkAboutR-03-0875J-03-652
07/17/03
RESOLUTION NO. 03- 875
A RESOLUTION OF THE MIAMI CITY
COMMISSION, WITH ATTACHMENT(S),
AUTHORIZING THE CITY MANAGER TO EXECUTE
A PROFESSIONAL SERVICES AGREEMENT, IN
SUBSTANTIALLY THE ATTACHED FORM, WITH
MARSH USA, INC., TO PROVIDE VARIOUS
ASSESSMENT SERVICES FOR THE DIVISION OF
RISK MANAGEMENT, FOR A ONE-YEAR PERIOD,
WITH THE OPTION TO EXTEND FOR AN
ADDITIONAL ONE-YEAR PERIOD; ALLOCATING
FUNDS, IN A TOTAL AMOUNT NOT TO EXCEED
$141,500, FROM ACCOUNT CODE
NO. 515001.624401.6.650.
WHEREAS, Resolution No. 02-1048, adopted September 26, 2002,
authorized the City Manager to negotiate a Professional Services
Agreement ("Agreement") with Marsh USA, Inc., the top-ranked firm
as determined by an Evaluation Committee pursuant to Request for
Qualifications No. 01-02-153, to provide various assessment
services for the Division of Risk Management; and
WHEREAS, the City Manager is seeking authorization by the
City Commission to execute the negotiated Agreement, in
substantially the attached form, with Marsh USA. Inc., for a
one-year period, with the option to extend for an additional
one-year period, in a total amount not to exceed $141,500; and
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Resolution No.
03- 875
WHEREAS, funds are available from Account Code
No. 515001.624401.6.650;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY
OF MIAMI, FLORIDA:
Section 1. The recitals and findings contained in the
Preamble to this Resolution are adopted by reference and
incorporated as if fully set forth in this Section.
Section 2. The City Manager is authorized!' to execute
an Agreement, in substantially the attached form, with Marsh USA,
Inc., to provide various assessment services for the Division of
Risk Management for a one-year period, with the option to extend
for an additional one-year period, with funds, in a total amount
not to exceed $141,500, allocated from the Account Code
No. 515001.624401.6.650.
Section 3. This Resolution shall become effective
immediately upon its adoption and signature of the Mayor.�l
�i The herein authorization is further subject to compliance with
all requirements that may be imposed by the City Attorney,
including but not limited to those prescribed by applicable
provisions of the City Charter and Code.
�� If the Mayor does not sign this Resolution, it shall become
effective at the end of ten calendar days from the date it was
passed and adopted. If the Mayor vetoes this Resolution, it shall
become effective immediately upon override of the veto by the
City Commission.
Page 2 of 3
03- 875
PASSED AND ADOPTED this
ATTEST:
PRISCILLA A. THOMP
CITY CLERK
24th day of
400:tr:AS
3SS
July , 2003.
Page 3 of 3
03- 875
PROFESSIONAL SERVICES AGREEMENT
This Agreement is entered into this _ day of , 2003 (but effective as of
) by and between the City of Miami, a municipal corporation of they tate
of Florida ("City") and Marsh USA, Inc., a Delaware corporation ("Provider").
RECITALS:
A. The City has issued a Request for Proposal ("RFQ") for the provision of an
Assessment of Risk Management and various other services ("Services"), and Provider's
proposal ("Proposal"), in response thereto, has been selected as the most qualified proposal for
the provision of the Services. The RFQ and the Proposal are sometimes referred to herein,
collectively, as the Solicitation Documents, and are by this reference incorporated into and made
a part of this Agreement.
B. The Commission of the City of Miami, by Resolution No. 02-1048, adopted on
September 26, 2002, approved the selection of Provider and authorized the City Manager to
execute a contract, under the terms and conditions set forth herein.
NOW, THEREFORE, in consideration of the mutual covenants and promises herein
contained, Provider and the City agree as follows:
TERMS:
1. RECITALS: The recitals are true and correct and are hereby incorporated into and
made a part of this Agreement.
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2. TERM: The term of this Agreement shall be for one (1) year, commencing on the
effective date hereof.
3. OPTION TO EXTEND: The City shall have one (1) option to extend the term
hereof for a period of one (1) year, subject to availability and appropriation of funds. City
Commission approval shall not be required as long as the total extended term does not exceed
two (2) years, or a period equal to the original term of this Agreement whichever is longer.
4. SCOPE OF SERVICE:
A. Provider agrees to provide the Services as specifically described, and under the
special terms and conditions set forth in Attachment "A" hereto, which by this reference is
incorporated into and made a part of this Agreement.
B. Provider represents and warrants to the City that: (i) it possesses all
qualifications, licenses and expertise required under the Solicitation Documents for the
performance of the Services; (ii) it is not delinquent in the payment of any sums due the City,
including payment of permit fees, occupational licenses, etc., nor in the performance of any
obligations to the City, (iii) all personnel assigned to perform the Services are and shall be, at all
times during the term hereof, fully qualified and trained to perform the tasks assigned to each;
and (iv) the Services will be performed in the manner described in Attachment "A".
5. COMPENSATION:
A. The amount of compensation payable by the City to Provider shall be based on
the rates and schedules described in Attachment `B" hereto, which by this reference is
incorporated into this Agreement; provided, however, that in no event shall the amount of
compensation exceed $ 141,500.00 [per the initial and extended term of the Agreement].
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B. Unless otherwise specifically provided in Attachment `B", payment shall be made
within forty five (45) days after receipt of Provider's invoice, which shall be accompanied by
sufficient supporting documentation and contain sufficient detail, to allow a proper audit of
expenditures, should City require one to be performed. If Provider is entitled to reimbursement
A
of travel expenses (i.e., Attachment `B" includes an estimate of travel expenses as an item of
compensation), then Provider is entitled to full reimbursement of all reasonable travel costs and
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supporting documentation must be attached and contain sufficient detail for reimbursement in
accordance with Attachment B; if supporting documentation is not provided, then all bills for
travel expenses shall be submitted in accordance with Section 112.061, Florida Statutes.
6. OWNERSHIP OF DOCUMENTS: Provider understands and agrees that any
information, document, report or any other material whatsoever which is given by the City to
Provider or which is otherwise obtained or prepared by Provider pursuant to or under the terms
of this Agreement is and shall at all times remain the property of the City. Provider agrees not to
use any such information, document, report or material for any other purpose whatsoever without
the written consent of City, which may be withheld or conditioned by the City in its sole
discretion..
7. AUDIT AND INSPECTION RIGHTS:
A. The City may, at reasonable times, and for a period of up to three (3) years
following the date of final payment by the City to Provider under this Agreement, audit, or cause
to be audited, those books and records of Provider which are related to Provider's performance
under this Agreement. Provider agrees to maintain all such books and records at its principal
place of business for a period of three (3) years after final payment is made under this
Agreement.
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B. The City may, at reasonable times during the term hereof, inspect Provider's
fAcilities and perform such tests, as the City deems reasonably necessary, to determine whether
the goods or services required to be provided by Provider under this Agreement conform to the
terms of Attachment A, if applicable. Provider shall make available to the City all reasonable
facilities and assistance to facilitate the performance of tests or inspections by City
representatives. All tests and inspections shall be subject to, and made in accordance with, the
A -
provisions of Section 18-55.2 of the Code of the City of Miami, Florida, as same may be
amended or supplemented, from time to time.
8. AWARD OF AGREEMENT: Provider represents and warrants to the City that it
has not employed or retained any person or company employed by the City to solicit or secure
this Agreement and that it has not offered to pay, paid, or agreed to pay any person any fee,
commission, percentage, brokerage fee, or gift of any kind contingent upon or in connection
with, the award of this Agreement.
9. PUBLIC RECORDS: Provider understands that the public shall have access, at all
reasonable times, to all documents and information pertaining to City contracts, subject to the
provisions of Chapter 119, Florida Statutes, and agrees to allow access by the City and the public
to all documents subject to disclosure under applicable law. Provider's failure or refusal to
comply - with the provisions of this section shall result in the immediate cancellation of this
Agreement by the City.
10. COMPLIANCE WITH FEDERAL, STATE AND LOCAL LAWS: Provider
understands that agreements between private entities and local governments are subject to certain
laws and regulations, including laws pertaining to public records, conflict of interest, record
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keeping, etc. City and Provider agree to comply with and observe all applicable laws, codes and
ordinances as they may be amended from time to time.
11. INDEMNIFICATION: Provider shall indemnify, defend and hold harmless the
City and its officials, employees and agents (collectively referred to as "Indemnitees") and each
of them from and against all loss, costs, penalties, fines, damages, claims, expenses (including
attorney's fees) or liabilities (collectively referred to as "Liabilities") by reason of any injury to
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or death of any person or damage to or destruction or loss of any property arising out of,
resulting from, or in connection with (i) the performance or non-performance of the services
contemplated by this Agreement which is or is alleged to be directly or indirectly caused, in
whole or in part, by any act, omission, default or negligence (whether active or passive) of
Provider or its employees, agents or subcontractors (collectively referred to as "Provider"),
regardless of whether it is, or is alleged to be, caused in whole or part (whether joint, concurrent
or contributing) by any act, omission, default or negligence (whether active or passive) of the
Indemnitees, or any of them or (ii) the failure of the Provider to comply with any of the
paragraphs herein or the failure of the Provider to conform to statutes, ordinances, or other
regulations or requirements of any governmental authority, federal or state, in connection with
the performance of this Agreement. Provider expressly agrees to indemnify and hold harmless
the Indemnitees, or any of them, from and against all liabilities which may be asserted by an
employee or former employee of Provider, or any of its subcontractors, as provided above, for
which the Provider's liability to such employee or former employee would otherwise be limited
to payments under state Workers' Compensation or similar laws.
12. DEFAULT: If Provider fails to comply with any term or condition of this Agreement,
or fails to perform any of its obligations hereunder, then Provider shall be in default. Upon the
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occurrence of a default hereunder the City, in addition to all remedies available to it by law, may
ifnmediately, upon written notice to Provider, terminate this Agreement whereupon all payments,
advances, or other compensation paid by the City to Provider while Provider was in default shall
be immediately returned to the City. Provider understands and agrees that termination of this
Agreement under this section shall not release Provider from any obligation accruing prior to the
effective date of termination. Should Provider be unable or unwilling to commence to perform
the Services within the time provided or contemplated herein, then, in addition to the foregoing,
Provider shall be liable to the City for all expenses incurred by the City in preparation and
negotiation of this Agreement, as well as all costs and expenses incurred by the City in the re -
procurement of the Services, including consequential and incidental damages.
13. RESOLUTION OF CONTRACT DISPUTES: Provider understands and agrees that
all disputes between Provider and the City based upon an alleged violation of the terms of this
Agreement by the City shall be submitted to the City Manager for his/her resolution, prior to
Provider being entitled to seek judicial relief in connection therewith. In the event that the
amount of compensation hereunder exceeds $25,000, the City Manager's decision shall be
approved or disapproved by the City Commission. Provider shall not be entitled to seek judicial
relief unless: (i) it has first received City Manager's written decision, approved by the City
Commission if the amount of compensation hereunder exceeds $25,000, or (ii) a period of sixty
(60) days has expired, after submitting to the City Manager a detailed statement of the dispute,
accompanied by all supporting documentation (90 days if City Manager's decision is subject to
City Commission approval); or (iii) City has waived compliance with the procedure set forth in
this section by written instruments, signed by the City Manager.
14. CITY'S TERMINATION RIGHTS:
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A. The City shall have the right to terminate this Agreement, in its sole discretion, at
any time, by giving written notice to Provider at least thirty (30) business days prior to the
effective date of such termination. In such event, the City shall pay to Provider compensation for
services rendered and expenses incurred prior to the effective date of termination. In no event
shall the City be liable to Provider for any additional compensation, other than that provided
herein, or for any consequential or incidental damages.
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B. The City shall have the right to terminate this Agreement, without notice to
Provider, upon the occurrence of an event of default hereunder. In such event, the City shall not
be obligated to pay any amounts to Provider and Provider shall reimburse to the City all amounts
received while Provider was in default under this Agreement.
15. INSURANCE: Provider shall, at all times during the term hereof, maintain such
insurance coverage as may be required by the City. All such insurance, including renewals, shall
be subject to the approval of the City for adequacy of protection and evidence of such coverage
shall be furnished to the City on Certificates of Insurance indicating such insurance to be in force
and effect and providing that it will not be canceled during the performance of the services under
this contract without thirty (30) calendar days prior written notice to the City. Completed
Certificates of Insurance shall be filed with the City prior to the performance of services
hereunder, provided, however, that Provider shall at any time upon request file duplicate copies
of the policies of such insurance with the City.
If, in the judgment of the City, prevailing conditions warrant the provision by Provider of
additional liability insurance coverage or coverage which is different in kind, the City reserves
the right to require the provision by Provider of an amount of coverage different from the
amounts or kind previously required and shall afford written notice of such change in
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requirements thirty (30) days prior to the date on which the requirements shall take effect.
Should the Provider fail or refuse to satisfy the requirement of changed coverage within thirty
(30) days following the City's written notice, this Contract shall be considered terminated in
accordance with Section 14(a) on the date that the required change in policy coverage would
otherwise take effect.
4.
16. NONDISCRIMINATION: Provider represents and warrants to the City that Piovider
.,
does not and will not engage in discriminatory practices and that there shall be no discrimination
in connection with Provider's performance under this Agreement on account of race, color, sex,
religion, age, handicap, marital status or national origin. Provider further covenants that no
otherwise qualified individual shall, solely by reason of his/her race, color, sex, religion, age,
handicap, marital status or national origin, be excluded from participation in, be denied services,
or be subject to discrimination under any provision of this Agreement.
17. MINORITY AND WOMEN BUSINESS AFFAIRS AND PROCUREMENT
PROGRAM: The City has established a Minority and Women Business Affairs and
Procurement Program (the "M/WBE Program") designed to increase the volume of City
procurement and contracts with Blacks, Hispanic and Women -owned business. The M/WBE
Program is found in Ordinance No. 10062, a copy of which has been delivered to, and receipt of
which is hereby acknowledged by, Provider. Provider understands and agrees that the City shall
have the right to terminate and cancel this Agreement, without notice or penalty to the City, and
to eliminate Provider from consideration and participation in future City contracts if Provider, in
the preparation and/or submission of the Proposal, submitted false of misleading information as
to its status as Black, Hispanic and/or Women owned business and/or the quality and/or type of
minority or women owned business participation.
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18. ASSIGNMENT: This Agreement shall not be assigned by Provider, in whole or in
part, without the prior written consent of the City's, which may be withheld or conditioned, in
the City's sole discretion.
19. NOTICES: All notices or other communications required under this Agreement shall
be in writing and shall be given by hand -delivery or by registered or certified U.S. Mail, return
receipt requested, addressed to the other party at the address indicated herein or to such other
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address as a party may designate by notice given as herein provided. Notice shall be deemed
given on the day on which personally delivered; or, if by mail, on the fifth day after being posted
or the date of actual receipt, whichever is earlier.
TO PROVIDER:
Mr. Kevin Rogan
Managing Director
Marsh USA, Inc.
1560 Sawgrass Corporate Pkwy, #300
Sunrise, Fl. 33323
Tel: (954) 838-3400; Fax: (954) 838-3700
TO THE CITY:
Ms. Diane Ericson
Risk Management Administrator
City of Miami
444 SW 2°d Avenue, 91h Floor
Miami, FL. 33130
20. MISCELLANEOUS PROVISIONS:
A. This Agreement shall be construed and enforced according to the laws of the State
of Florida.
B. Title and paragraph headings are for convenient reference and are not a part of
this Agreement.
C. No waiver or breach of any provision of this Agreement shall constitute a waiver
of any subsequent breach of the same or any other provision hereof, and no waiver shall be
effective unless made in writing.
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D. Should any provision, paragraph, sentence, word or phrase contained in this
Agreement be determined by a court of competent jurisdiction to be invalid, illegal or otherwise
unenforceable under the laws of the State of Florida or the City of Miami, such provision,
paragraph, sentence, word or phrase shall be deemed modified to the extent necessary in order to
conform with such laws, or if not modifiable, then same shall be deemed severable, and in tither
event, the remaining terms and provisions of this Agreement shall remain unmodified and—in full
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force and effect or limitation of its use.
E. This Agreement constitutes the sole and entire agreement between the parties
hereto. No modification or amendment hereto shall be valid unless in writing and executed by
properly authorized representatives of the parties hereto.
21. SUCCESSORS AND ASSIGNS: This Agreement shall be binding upon the parties
hereto, their heirs, executors, legal representatives, successors, or assigns.
22. INDEPENDENT CONTRACTOR: Provider has been procured and is being
engaged to provide services to the City as an independent contractor, and not as an agent or
employee of the City. Accordingly, Provider shall not attain, nor be entitled to, any rights or
benefits under the Civil Service or Pension Ordinances of the City, nor any rights generally
afforded classified or unclassified employees. Provider further understands that Florida
Workers' Compensation benefits available to employees of the City are not available to Provider,
and agrees to provide workers' compensation insurance for any employee or agent of Provider
rendering services to the City under this Agreement.
23. CONTINGENCY CLAUSE: Funding for this Agreement is contingent on the
availability of funds and continued authorization for program activities and is subject to
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amendment or termination due to lack of funds, reduction of funds and/or change in regulations,
upon thirty (30) days notice.
24. REAFIRMATION OF REPRESENTATIONS: Provider hereby reaffirms all of the
representations contained in the Solicitation Documents.
25. ENTIRE AGREEMENT: This instrument and its attachments constitute the sole and
only agreement of the parties relating to the subject matter hereof and correctly set forth the
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rights, duties, and obligations of each to the other as of its date. Any prior agreements, promises,
negotiations, or representations not expressly set forth in this Agreement are of no force or
effect.
26. COUNTERPARTS: This Agreement may be executed in two or more counterparts,
each of which shall constitute an original but all of which, when taken together, shall constitute
one and the same agreement.
27. SPECIAL INSURANCE AND INDEMNIFICATION RIDER: Please initial if
applicable:
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
executed by their respective officials thereunto duly authorized, this the day and year above
written.
ATTEST:
Priscilla A. Thompson, City Clerk
"City"
CITY OF MIAMI, a municipal
corporation
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Joe Arriola, City Manager
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ATTEST:
Print Name:
Title: Corporate Secretary
APPROVED AS TO FORM AND
CORRECTNESS:
ALEJANDRO VILARELLO
City Attorney
"Provider"
Marsh USA, Inc.
a Delaware corporation
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By:
Print Name:
Title: President
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APPROVED AS TO INSURANCE
REQUIREMENTS:
Diane Ericson, Risk Management Administrator
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ATTACHMENT A
SCOPE OF WORK
Background:
Marsh USA, Inc. shall conduct analyses of various functional components for the Risk
Management Department. The primary focus of work to be performed will include the
assessment of two major Categories as follows: (1) HIPAA Assessment; and (2) Police„Self-
Insured Trust Audit.
Scope of Work:
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Services to be performed include, but will not limited to, the following:
CATEGORY I: HIPAA ASSESSMENT PROJECT
Provider shall work with the City of Miami ("City") to provide an overall assessment of the
City's current state of compliance related to the Health Insurance Portability and Accountability
Act of 1996 (HIPAA), required by the Secretary of the U.S. Department of Health and Human
Services. The final deliverable will be an Assessment of the current state resulting in an Action
Plan to meet its compliance obligations. Provider shall deliver an objective, independent review
and assessment of the current state. Provider shall review the City's departments in reasonable
detail and compare them with a "best practice” state of compliance to identify "gaps". Provider
shall provide its findings and recommendations for an Action Plan in an Executive report at the
completion of the engagement.
Provider's HIPAA compliance -related services will include: electronic -data exchange, security,
and privacy of Protected Health Information (PHI). Provider's assessment will evaluate the
business, technical and physical aspects of the City, which has an employee population of
approximately 3,500 full-time employees located at various locations throughout the City. The
assessment will encompass the City operations as a whole. The City also provides health care
services directly to citizens of the City in the form of Fire -Rescue and other public services. The
goal of this engagement will be to obtain a detailed assessment and create a cost-effective Action
Plan to fully meet the HIPAA requirements as soon as possible.
Provider shall utilize its understanding of HIPAA regulations and implementation requirements,
including security issues, health care operations, and information technology to perform the
Assessment. Provider shall assist the City in identifying the steps necessary to become and
maintain HIPAA compliant.
Provider shall perform, but not be limited to, the following general activities during the
engagement:
1. Validate those operations, functions, and responsibilities of City government that must be
HIPAA-compliant.
2. Work with various types of covered entities of the City, including the City's health care plan
provided to employees, retirees, dependents, and beneficiaries, and the City's direct health
care -related services provided by the City's Department of Fire -Rescue and Police
Department. We will also validate business associate relationships within the City and
between the City and various contractors, and local hospitals.
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Focus on the following main areas during this project:
=> Fire -Rescue
=> Police
=> Information Technology
=> Employee Relations
=> Group Benefits
4. Perform a comprehensive assessment of the City's current readiness to comply with HIPAA
standards and validate its current declared state of compliance.
5. Utilize all fact-finding, HIPAA-related policies and procedures, and relevant information
already attained by the City's efforts in our discovery. Provider will not duplicate efforts of
the city but we will ensure we validate the information and related conclusions already
formed. For instance, Provider will utilize the surveys already sent to the Department Heads
that identified Protected Health Information (PHI) and the'second follow-up survey that
requests more detailed information.
6. Work with the City's Medical Benefits Carrier, CIGNA, to determine whether they have in
place the appropriate controls and procedures to be HIPAA compliant while servicing the
City and its plan members using previously developed gap analyses and questionnaires.
7. Provider shall perform a Gap Analysis - assess the city's efforts to -date and document what
still needs to be done.
8. Provider shall create an Action Plan (including a timeline) based on the Gap Analysis -
Recommend options for compliance accompanied by the estimated resource requirements
and estimated implementation costs of each option.
9. Review the current status of the data security in the form of a Risk Assessment for the city's
Information Technology (IT) department. The data security component will be focused on
working with the City to identify that the security policies and procedures incorporate access
controls on customer information systems, including controls to authenticate and grant access
only to authorized individuals and companies. This will involve the following steps:
• Interviews with key Information Security and IT management to gain an
understanding of the City's strategic and tactical security policies, standards,
processes and structure.
• Review of existing security policies, standards, guidelines and other related
documentation.
• Identification of the types of individuals who have access to customer data.
• Identification of the apparent, potential internal or external threats that could result in
unauthorized disclosure, misuse, alteration, or destruction of customer information or
customer information systems.
• Assessing the likelihood and potential damage of these threats, taking into
consideration the sensitivity of customer information and adjust its risk assessment in
light of any relevant changes in technology.
• Assessing the sufficiency of policies, procedures, customer information systems, and
other arrangements in place to control risks. Performing a Gap Analysis against the
specific security requirements as set forth under HIPAA.
• Making recommendations, as necessary, for improvements related to the specific
security practices.
10. Shall work in conjunction with the City's Business Continuity Preparedness consultants to
ensure compliance. Provider will not duplicate efforts by the other consulting firm. As part
of the HIPAA requirements for Business Continuity Planning/Disaster Recovery (BCP/DR),
this review will assess the City's current BCP/DR practices. Provider has developed a target
environment utilizing a "best practices" baseline to fit the City's priorities. These targets will
be used to perform an analysis of the current BCP/DR practices. Provider will compare the
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be used to perform an analysis of the current BCP/DR practices. Provider will compare the
City's business continuity practices to a best practices target environment, identify gaps,
develop and prioritize recommendations to improve the business continuity program and
recommend action plans for the high priority issues. Using a proven methodology of inquiry,
observation, and limited testing, Provider will analyze the City's current business continuity
practices and develop recommendations to improve the business continuity program where
applicable.
11. Develop a Privacy Disclosure Strategy - The privacy disclosure strategy will be focused on
working with the City to develop the appropriate privacy notice, strategy and customer
messaging. This will involve the following steps:
• Utilize our existing knowledge and experience of privacy notices to work with the
relevant stakeholders to craft the City's privacy notices.
• Obtain city approval for the privacy notice with the cityfs privacy team.
• Assist with developing the strategy for delivering the privacy notice to applicable
customers. For example, we will assist in determining appropriate delivery strategies
(mail, Internet, etc.).
12. Provider shall evaluate the City's overall policies and procedures as it relates to HIPAA
compliance, and recommend changes as necessary.
Provider shall employ a systematic, disciplined process to work closely with the City during
this engagement. To accomplish these goals, Provider will undertake a three-step process
that is detailed below.
Project Steps 1 Description of Work
Phase One - Discovery Phase
Information Gathering and Documentation Review — Provider will request relevant
HIPAA-related information and data for an in-depth review. We will utilize all information
already attained by the City and our industry knowledge while reviewing key documents to
fully understand your specific issues.
Provider shall perform a documentation review. The following information is requested to
perform this step:
a. Organizational structure (org chart).
b. Current documentation on the existing program.
c. Names of City of Miami personnel that will be interviewed for the Assessment.
d. Systems documentation and schematic depictions.
e. Vendor contracts.
Interviews and Dialogue — Provider and all relevant city representatives will mutually
explore the current situation and form initial hypotheses of the issue(s). First, we will use all
information collected to validate the issues. Provider will spend time interviewing key people
and conduct an independent review of the city's operations.
Provider will utilize personal meetings and telephone interviews to uncover the appropriate
information. We will review the organization's operations and business processes to
understand and address the varied HIPAA-related exposures and processes associated with
City's operations. This step allows us to identify "hidden" risks and exposures that have not
already been identified.
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Provider will confirm telephonically with CIGNA that they are servicing the City in a
compliant manner and will request and review documentation as necessary.
Gap Analysis - After this initial step, Provider shall utilize our HIPAA experience and best
practices to perform a Gap Analysis of the situation. During this analysis Provider will fully
define the issues, search for the problems' most likely causes, refine and test the hypotheses,
and begin to conceptually design the Action Plan (with timeline) needed.
Phase Two - Analysis
During this step, Provider's intent is to affirm the findings of the Discovery Phase and begin
to articulate the steps needed in the Action Plan.
Provider shall assemble the discovery information into a form t4at segregates the information
into positives and areas for improvement. The information will be kept anonymous to the
person(s) providing the information, but will be organized with the intent of reinforcing the
positive aspects and developing action plans to implement corrective actions for items
deemed as perceived negatives, or not in compliance with HIPAA standards.
Provider and the City's designated Risk Management department personnel will re-engage
during this phase of the Study to discuss the findings from the I?iscovery Phase and build
consensus on prioritization of the issues and identify the elements of the Action Plan.
The analysis phase will include the following:
1. Organize the notes and data collected, review all data, comments, interview responses and
distill strengths, opportunities and areas for improvement.
2. Create a Gap Analysis: Provider will spend time to understand the current program versus
the desired end -state. This analysis results in a "gap" where we focus our efforts.
3. Assemble and prepare a draft report to present to the city with issues defined, quantified
and prioritized. This content will be used to design the appropriate Action Plan that can be
implemented to provide the most cost-effective means possible.
Phase Three - Presentation of Recommendations
Following the Analysis phase, Provider shall return to the City and present its recommended
Action Plan. Provider will spend time to answer questions and reach consensus on best next
steps.
Deliverables
a) Provide written documentation of the covered operations throughout the City as well as all
business associates or other HIPAA impacted operations throughout the City.
b) Provide written documentation of the gaps, vulnerabilities, and risks discovered during the
baseline assessment in technology and application infrastructures and in overall operation
practices.
c) Diagram and document the electronic data interchanges the City has with business
associates, agents, and contractors.
d) Diagram and document the flow of protected health information throughout all of City
government, including its department, agencies, offices, various Trusts, among others.
e) Diagram and document all internal business as well as external associates the City has that
are affected by HIPAA.
f) Provide an Action Plan (with a timeline and resource requirements) for necessary steps for
the City to reach full compliance.
16 03_ 875
Scheduling
Provider will begin the Assessment project within ten (10) calendar days following Contract
execution, and endeavor to complete the project within two (2) months. The goal of this
engagement will be to create a detailed Action Plan to fully meet the HIPAA requirements as
soon as possible.
In anticipated sequence, the following are the general steps Provider will undertake during
this Assessment Phase:
• Documentation Review 4.
• Initial interviews with appropriate department personnel (we will begin with Fire -
Rescue)
• Conduct follow-up interviews with personnel as .appropriate (phone -based or
personal meetings as needed)
• Perform Analysis
• Meet with Appropriate city Risk Management Personnel to Review Documentation
and Findings — At this point we will provide a first draft of our findings and
recommendations to elicit feedback
• Perform Final Analysis and make any needed modifications based on feedback
• Deliver a final Executive Presentation with findings and recommendations for an
Action Plan one week after submitting the Draft Report
*Actual completion will be dependent upon a number of factors, including access to and
cooperation of the city's personnel and the receipt by Provider of required documents and
information in a timely fashion.
Assumptions
In order to complete these engagements, Provider assumes the following:
1. At project kick-off, Provider will conduct an organizational meeting to ensure agreement
on the exact project scope and project team requirements;
2. Shall utilize interviews with key personnel to determine the current state of HIPAA
compliance within the current program;
3. City personnel will be made available to Provider within a reasonable timeframe after
request;
4. Provider will provide a preliminary "draft" report to appropriate city Risk Management
personnel and Provider will require feedback within two business days to include it in the
final deliverables;
5. At the time of this engagement, the City plans to assign the following project roles for
this engagement: (1) Executive/Business Sponsor, (2) Project Manager, (3) Department
Subject Matter Experts for each department/division within the scope of the project; and
6. All documentation, survey results, and policies/procedures that have been attained by the
City will be fully disclosed to Provider prior to project kick-off so Provider can make
sure not to duplicate efforts.
7. City personnel will respond, to the best of their ability, within one business day on any
requests that are communicated as "Urgent" and within three business days on all other
requests.
17
q3°- 875
CATEGORY II: AUDIT OF THE POLICE SELF-INSURED TRUST
Overview
Provider has been requested to provide an outline of the scope of services, data
requirements, timeframe, and fees associated with a financial audit of the City's Police
Self -Insured Trust. The purpose of the audit is to determine the current and projected
financial requirements associated with the underlying health coverage provided to active
and retired participants, and to evaluate the ability of the financial resources of the Trust
to meet those obligations.
Scone of Services
The four main tasks associated with the evaluation of the Trust, and the determination of
the sufficiency of the funds therein, include, but are not limited to, the following:
1. Quantification of current health program costs — Evaluate current claim
levels, separately for actives and retirees, and the review of the historic and
current design of the health benefits program, so that a full understanding of
current costs and funding requirements is gained.
2.Projection of active/retiree costs — Utilize the results of Task 1 to forecast the
future costs associated with the medical plan, again separately for active and
retired participants, incorporating future plan design changes and other impacting
factors. Custom trend factor development will be employed if data sources
permit, otherwise we will use the latest factors for the South Florida area, by plan
component, taken from our quarterly trend survey.
3.Reserve analysis — Utilizing incurred and paid claim triangle data provided by
the City, evaluate the level of incurred but not reported (IBNR) reserve funding
held by the trust in light of the calculated claim payment lag and the current and
anticipated claim costs developed in Tasks 1 and 2.
4.Review of Trust funding versus projected costs — In the final step in the
process, shall compare and comment on the current trust funding relative to the
expected paid claim and reserve requirements, with guidance provided regarding
appropriate adjustments in the event of a mismatch of these figures.
Data Requirements
To complete the analysis, historic monthly claims and enrollment data, separated by
participant class (employee, dependent, active, retiree, etc.) is necessary. In addition,
demographic data on both active and retired participants is required. A detailed data
request will be provided to the City with sufficient advance notice and reviewed with
appropriate personnel.
Audit Timeline
Within five (5) working days upon execution of the Contract, Provider shall meet with
the City to finalize any outstanding details of the project. Within one week of this
meeting, Provider shall deliver a detailed data request to the City. Upon receipt of all
data outlined therein, Provider anticipates the completion of all phases of the analysis, as
well as a report of our findings, in a period of no later than three (3) months.
18
874
ATTACHMENT B
COMPENSATON
Proiected Fees
Included below depicts a Not -to -Exceed Fixed Fee amount and an hourly rate for each category
of project below.
Under this structure, the City will be invoiced under a time and materials basis according to
Provider's actual efforts to accomplish each Category of this engagement.
Assumptions that are included should be adhered to at all time, during these engagements.
Provider has used these assumptions in crafting the final "Not to exceed" Fixed fees stated in this
proposal and reserves the right to exceed the stated "Not to exceed" Fixed fee, utilizing the hourly
fees listed in this proposal and charging under a Time and Materials basis, if the assumptions are
not substantially adhered to as they relate to Provider's services.
ATEGORY I: 1 HIPAA ASSESSMENT PROJECT
The Not -to -Exceed Fixed Fee amount for this entire project, excluding reasonable travel, under
this category will be $75,250. These fees are in addition reasonable travel expenses for specific
personnel assigned to the project, whose personnel and travel must be approved in advance by the
City. Said reasonable travel expenses shall not include payment for mileage, tolls or per diem, nor
shall it exceed a total of $ 6,500 over the term of the engagement.
The hourly rate charged per skill set will not exceed as follows:
Occupational PHI effort - $240
Information Tcchnology PHI effort - $275
=> Non -Occupational PHI effort - $335
=> Project Management effort - $180
These fees anticipate a number of meetings in Miami, however, it is understood that should
additional meetings be required, Provider will attend on an as needed basis to ensure project
completion on a timely basis.
CATEGORY II: AUDIT OF THE POLICE SELF-INSURED TRUST
The Not -to -Exceed Fixed Fee amount for this entire project, excluding reasonable travel, under
this category will be $56,250. These fees are in addition to reasonable travel expenses for specific
personnel assigned to the project, whose personnel and travel must be approved in advance by the
City. Said reasonable travel expenses shall not include payment for mileage, tolls or per diem, nor
shall it exceed $ 3,500.00 over the term of the engagement.
=> The hourly rate charged will not exceed $335.
These fees anticipate two meetings in Miami, one for final project scoping, and one for report
presentation. However, it is understood that should additional meetings be required, Provider will
attend on an as needed basis.
03- 875
It shall be further understood that the Provider shall utilize it best business practices to coordinate
the work to be performed by assigned personnel to both categories of work, to ensure its billable
hourly rates and approved travel expenses are at the lowest possible cost for all work to be
performed under the terms of this agreement.
Method of Payment:
Payment shall be made in monthly installments, in arrears, and upon submission of proper
invoices reflecting a detailed accounting of the following: names of individuals who perfdrmed
said work for each Category of Work, to include: overall nature of work performed; dates and
hours worked; hourly rate(s); and total number of hours worked per month performed. Invoices
shall be billed from the first of the month to the last day of the game month. Invoices shall be
submitted to an authorized City representative from the Department of Risk Management no later
than the 10`h of the following month for approval and authorization for payment of monies owed.
Upon approval of invoice(s), payment shall be made within ten (10) working days thereafter.
For payment of reasonable travel expenses for specific assigned personnel of Provider, as
approved in advance by the City, approved invoices for said travel must also meet the above
requirements.
It is further understood that total payment for all scope of services shall not exceed $75,250 for
Category I (HIPAA), and $56,250 for Category II (Police Trust), and an amount not to exceed
$10,000 as reasonable travel expenses, for a total not to exceed $ 141,500.00 over the term of the
agreement.
20
03—
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO: Carlos A. Gimenez
City Manager
FROM /"�
R. Sue Weller
Acting Risk Management Admin./Retired
DATE: July 18, 2002
FIE
SUBJECT: Recommendation of the
Evaluation Committee: RFQ
No. 01-02-153: Assessment Study of
REFERENCES: Risk Management Program
;dl
ENCLOSURES:
As Chairperson of the Evaluation Committee ("Committee") for the above services for the City
of Miami, it is my responsibility to offer the findings and recommendation of the Committee.
The City issued an RFQ for Assessment Study of Risk Management Program on April 29, 2002,
and six (6) responses were received by May 20, 2002. The Evaluation Committee
("Committee"), appointed by the City Manager, met on July 11, 2002 and July 18, 2002, and was
comprised of the following individuals:
1. Marsha Pascual, Director, Risk Management Division, Miami -Dade County
2. Donald Jackle, Risk Management Administrator, City of Coral Gables
3. Clifford Leonard, Risk Manager, City of Miami Beach
4. R. Sue Weller, Acting Risk Management Administrator, City of Miami
The Committee discussed the merits of the six (6) responsive and responsible proposals, and
evaluated each pursuant to the City's RFQ. Following discussion and deliberation, the
Committee recommends the following two (2) Proposers, in rank order: (1) Marsh USA, Inc.
and (2) KPMG LLP.
Should contract negotiations fail with the top ranked firm, Marsh USA, Inc. the Committee
recommends the City negotiate with the second ranked firm.
Approved by: --�
Cos enez
City Manager
Date: 7 l8 O�-
03- 875
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO: Honorable )ky-orawd Member
the City Commissi n
FROM:
Jo Arriola
C of Administrator/City Manager
RECOMMENDATION
DATE:
;'11JJL. Y r
FILE:
SUBJECT
Execution of Professional Services
Agreement with Marsh USA, Inc.
REFERENCES:
ENCLOSURES:
It is respectfully recommended that the City Commission adopt the attached resolution
authorizing the City to execute a contract, in substantially the attached form, with Marsh USA,
Inc., a non -minority, non -local firm, located at 1560 Sawgrass Corporate Parkway, Suite 300,
Sunrise, Fl. 33345, on behalf of the Department of Risk Management, for one (1) year, with the
option to extend for one (1) additional year. Funding, in a total amount not to exceed
$141,500.00, is available from Account Code No. 515001.624401.6.650.
BACKGROUND
The City of Miami issued RFQ No. 01-02-153 seeking proposals from qualified and experienced
firms to provide assessment services for the Department of Risk Management. Pursuant to the
RFQ, proposals were received and evaluated by an Evaluation Committee. Via Resolution 02-
1048, the City Commission authorized the City Manager to negotiate a professional services
agreement with Marsh USA, Inc., the top-ranked firm.
The City is seeking authorization to execute said agreement, in substantially the attached form,
for a total amount not to exceed $141,500.00 for a period of one (1) year, with the option to
extend for one (1) additional year.
`'I i1CG- JA/iMl NV b
p
03- 875
Budgetary Impact Analysis
Department Risk Management Division
Commission Meeting Date: July 24, 2003
Title and brief description of legislation or attached ordinance/resolution:
HIPAA Assessment, Review of FIPO Healthcare and FOP Insurance
Trust Audit
1. Is this item related to revenue? NO ❑ Yes) c (If yes, skip to item #4)
2. Are there sufficient funds in Line Item?
CIP Project #: (If applicable)
Yes: Index Code: 515001 Minor: Amount$141.,500 .
No: Complete the following information:
3. Source of funds: Amount budgeted in the line item: $ sLc�oat'1
Balance in line item:
Amount needed in line item: $ J.1 A,reee- l
Sufficient funds will he transferred from the following line items:
ACTION ACCOUNT NUMBER
TOTAL
Project NoJIndea/Minor Object
From
$
From
$
To
$
To
$
4. Comments:
Approved b 10
Department Director/De�i nee
APPROVALS
7/7/03
. , ate
Verified by CIP: (If applicable)
Director/Designee
Date:
03- 875
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO: Carlos A. Gimenez
City Manager
FROM
R. Sue Weller
Acting Risk Management Admin./Retired
DATE: July 18, 2002
SUBJECT
REFERENCES
ENCLOSURES:
FIE :
Recommendation of the
Evaluation Committee: RFQ
No. 01-02-153: Assessment Study of
Risk Management Program
As Chairperson of the Evaluation Committee ("Committee) for the above services for the City
of Miami, it is my responsibility to offer the findings and recommendation of the Committee.
The City issued an RFQ for Assessment Study of Risk Management Program on April 29, 2002,
and six (6) responses were received by May 20, 2002. The Evaluation Committee
("Committee'), appointed by the Cir Manager, met on July 11, 2002 and July 18, 2002, and was
comprised of the following individuals:
1. Marsha Pascual, Director, Risk Management Division, Miami -Dade County
2. Donald Jackle, Risk Management Administrator, City of Coral Gables
3. Clifford Leonard, Risk Manager, City of Miami Beach
4. R. Sue Weller, Acting Risk Management Administrator, City of Miami
The Committee discussed the merits of the six (6) responsive and responsible proposals, and
evaluated each pursuant to the City's RFQ. Following discussion and deliberation, the
Committee recommends the following two (2) Proposers, in rank order: (1) Marsh USA, Inc.
and (2) KPMG LLP.
Should contract negotiations fail with the top ranked firm, Marsh USA, Inc. the Committee
recommends the City negotiate with the second ranked firm.
Approved by:
Chrlos ez
City Manager
Date: l8 oi--
03- 875
JUL-02-2003 10:07 r -Y CLERKS OFFICE 305 959 1510 P.01
J-02-772
09/17/02
RESOLUTION NO. 02-1048
A RESOLUTION OF THE MIAMI CITY COMMISSION
ACCEPTING THE RECOMMENDATION OF THE CITY
MANAGER APPROVING THE FINDINGS OF THE
EVALUATION COMMITTEE, PURSUANT TO REQUEST FOR
QUALIFICATIONS (RFQ) NO. 01-02-153, THAT THE
MOST QUALIFIED FIRMS TO PROVIDE AN ASSESSMENT
STUDY OF THE RISK MANAGEMENT PROGRAM, FOR THE
OFFICE OF THE CITY MANAGER, ARE, IN RANK
ORDER: (1) MARSH USA, INC. AND (2) KPMG LLP;
AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND
EXECUTE P_ PROFESSIONAL SERVICES AGREEMENT,
WITH MARSH USA, INC_ THE TOP-RANKED FIRM, FOR
AN INITIAL PERIOD OF ONE YEAR, WITH THE
OPTION TO EX=TEND FOR AN ADDITIONAL ONE (1)
YEAR PERIOD; FURTHER AUTHORIZING THE CITY
MANAGER TO NEGOTIATE AN AGREEMENT WITH THE
SECOND -RANKED FIRM, IN THE EVENT NEGOTIATIONS
FAIL WITH THE TOP-RANKED FIRM AND PRESENT THE
AGREEMENT TO THE CITY COMMISSION FOR
CONSIDERATION.
WHEREAS, following the directive of the City Commission, the
City issued a.Requ'est for Qualifications (RFQ) on April 29, 2002,
seeking to conduct a comprehensive assessment and operational
analysis, and provide findings and recommendations, regarding all
functions of its D%partment of Risk Management, with particular
emphasis on workers compensation claims and processes; and
03- 875
CITY COMMISSION
M ETn OG OF
SEP 2 6 2002
R"OJBt on N0.
.02-1048
JOL-02-2003 10:Oe C CLERKS OFFICE 305 e58 1610 P.02
WHEREAS, the City received six (6) proposals by the
advertised deadline of May 20, 2002, which were deemed
responsive; and
WHEREAS, an Evaluation Committee was appointed by the City
Manager to evaluate all proposals received pursuant to the RFQ;
and
WHEREAS, the Evaluation Committee evaluated the proposals,
and selected the most qualified firm to provide the required
consulting services in= the following rank order: 1) Marsh USA,
Inc., and (2) KPMG LLP; and
WHEREAS, the City Manager approved the findings of the
Evaluation Committee; and
WHEREAS, the City Commission accepts the City Manager's
recommendation and. authorizes the City Manager to negotiate an
agreement with Marsh USA, Inc., the top-ranked firm, and should
negotiations fail with the top-ranked firm, to negotiate an
agreement with the second -ranked firm, and
I
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY
OF MIAMI, FLORIDA:
r
03- 875
Page 2 of 4
ncl 4 f%A4
SUL=02-2003 10:08 'TY CLERKS OFFICE 305 858 1510 P.03
Section 1. The recitals and findings contained in the
Preamble to this Resolution are adopted by reference and
incorporated as if fully set forth in this Section.
Section 2. The recommendation of the City Manager to
approve the findings of the Evaluation Committee pursuant to
Request for Qualifications No. 01-02-153, that the most qualified
firms provide consulting services for an assessment study of the
Risk Management Program for the City of Miami are, in rank order:
(1) Marsh USA, Inc., and (2) KPMG LLP, is accepted.
Section 3. The City Manager is authorizedll to negotiate
and execute an agreement, with Marsh USA, Inc. the top-ranked
firm, for an initial period of one year, with the option to
extend for one additional year; further authorizing the City
Manager to negotiate an agreement with the second -ranked firm, in
the event negotiations fail with the top-ranked firm.
Section 4. The City Manager is directed to present the
negotiated 'agreemenitto the City Commission for consideration.
'-� The herein authorization is further subject to compliance with
all requirements that may be imposed by the City Attorney,/
including but not limited to those prescribed by applicable
Provisions of the City Charter and code.
Page 3 of 4 03— 8705
t12-1nAQ
.-qUL-02-2003 10:08
Section 5.
C CLERKS
OFFICE
305
858 1510 -P.04
This
Resolution shall
become
effective
immediately upon its adoption and signature of the Mayor.11
PASSED AND ADOPTED this 26th+ day of SeRtember 2002.
•
JMNUE
L A. DIAZ, MAY
ATTEST:
PRISCILLA A. THOMPSON
CITY CLERK
APPROVED AS TO
/IJANDl�Oi`VI DELLA
. CITY ATTORNEY
`/W652 5 : LB : AS
AND CORRECTNESS:t/
r
If the Mayor does not sign this Resolution, it shall become
effective at the end of ten calendar days from the date it was
passed and adopted. If the Mayor vetoes this Resolution, it`
shall become effective immediately upon override of the veto by
the City Commission.
03- 875
Page 4 of 4
n�-1048