HomeMy WebLinkAboutMemo-City Manager Explaining Substitution for Item RE 9 - Changes to PSACITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO: Honorable Mayor and DATE: June 1, 2011 FILE: 11-00475
Members of the City Commission
SUBJECT: Substitution for Item RE-9
Changes to PSA
FROM: Tony E. Crapp Jr. REFERENCES:
City Manager
ENCLOSURES:
Please be advised that the Professional Services Agreement (PSA) related to item RE-9 scheduled for the
June 9, 2011 Regular City Commission Meeting will need to be substituted as a result of several
amendments and the inclusion of additional exhibit documents. The Legislation Resolution signed by the
City Attorney is also being included. Please refer to the attached substitute documents that were distributed
electronically on June 1, 2011.
Summary
RE-9 is requesting authorization for the City Manager to execute a Professional Services Agreement with
Aon Consulting, Inc. (A/K/A Aon Hewitt Consulting) for health benefits consulting services associated with
RFQ 260247. The initial term is for a one (1) year period with an option to extend for an additional one (1)
year period. The contract cost is not to exceed $150,000 for the first year. If the City exercises its option to
extend an additional year, the additional cost will not exceed $150,000 plus a 3% maximum cost increase
cap.
The amended changes to the PSA serve to strengthen and clarify the basis for compensation and the
indemnity/hold harmless clause in favor of the City. The amended changes to the PSA include:
1. Page 2 Terms, item 1 a — The inclusion of the language "The Provider's Compensation is hereby
incorporated into and made a part of this Agreement as Exhibit "D".
2. Page 4 Compensation — item A., the language "be for a stipulated sum of $150,000 per annum less
any adjustments" and "a stipulated sum of $150,000 plus an additional 3% Cost Increase Cap
applicable in the second year less any adjustments" was added
3. Page 4 Compensation — item B, the language "Provider shall invoice the City on a quarterly basis in
a sufficiently detailed invoice documenting all services provided each quarter" and "Such invoices
shall be addressed and sent to the Director of Risk Management, City of Miami, 444 S.W. 2nd
Avenue, Miami, Florida 33130" were added.
4. Page 4 Compensation — item C, the language "Provided services shall be deemed to meet with the
City's satisfaction as determined by the Director of Risk Management when specified elements as
outlined and defined in Exhibit A Scope of Work are completed or substantially completed in a
professional and prudent manner by a properly licensed insurance professional" was added.
5. Page 5 Compensation — item E, the language "City shall retain the right to withhold final quarterly
payment until all specified elements as outlined and defined in Exhibit A Scope of Work have been
fully completed to the satisfaction of the Director of Risk Management unless the completion of
such elements is beyond the control of the Provider" was added.
6. Page 8 — Section 9, the language "Provider shall indemnify, defend and hold harmless the City, its
officials and/or employees and against (i) any civil actions, statutory or similar causes of action,
claims, suits, injuries or damages arising or resulting from the Provider/Consultant's services,
actions or omissions under this Agreement, even if it is alleged that the City, its officials and/or
employees were negligent, unless such injuries or damages are ultimately proven to be the result of
grossly negligent or willful acts or omissions on the part of the City, its officials and/or
employees," was added to the paragraph.
7. Page 15 Notices, the Provider's specific information was added.
8. Global changes to exhibit headings and sequence. Attaching the original RFQ document
necessitated placing the RFQ exhibit at the end of the PSA document as Exhibit F instead of as
Exhibit A. A Scope of Work document was added as Exhibit A. Aon's final proposed pricing was
added as Exhibit B. A Compensation section was added as Exhibit D.
Calvin Ellis, Assistant Director
Department of Risk Management
CC: Zari Watkins, City Manager's Office
Raphael Suarez -Rivas, Law Department
Elvi Gallastegui, Agenda Coordinator
Gary Reshefsky, Director of Risk Management
Larry Spring, CFO
City of Miami
Legislation
Resolution
City Hall
3500 Pan American
Drive
Miami, FL 33133
www.miamigov.com
File Number: 11-00475 Final Action Date:
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
AON CONSULTING, INC., (A/K/AAON HEWITT CONSULTING), FOR THE
PROVISION OF HEALTH BENEFITS CONSULTING SERVICES AND ACTUARIAL
SERVICES FOR THE DEPARTMENT OF RISK MANAGEMENT, FOR A
CONTRACT PERIOD OF ONE (1) YEAR, WITH THE OPTION TO RENEW FOR
ONE (1) ADDITIONAL ONE (1) YEAR PERIOD, ATA FIRST YEAR CONTRACT
AMOUNT NOT TO EXCEED $150,000, WITH A COST INCREASE CAP NOT TO
EXCEED 3% FOR THE SECOND YEAR; ALLOCATING FUNDS FROM THE
VARIOUS SOURCES OF FUNDS THE USER DEPARTMENT SUBJECT TO THE
AVAILABILITY AND BUDGETARY APPROVAL AT THE TIME OF NEED.
WHEREAS, health benefits consulting services and actuarial services are needed to provide
professional analysis of the City of Miami's ("City's") health benefit plans, on a monthly and quarterly
basis; and
WHEREAS, the City is self insured for health insurance benefits and needs to constantly
assess the performance of the different plans and plan administrator; and
WHEREAS, the City's largest aspect of its Risk Management budget is in this area, and the
constant monitoring of expenditures and services is necessary to make sure that Third Party
Administrators are complying with the different plan designs; and
WHEREAS, pursuant to Request for Qualifications No. 260247 and Resolution No. 11-0108,
adopted March 10, 2011, the City sought prices from qualified and experienced firms as listed in
"Attachment A", attached and incorporated, to provide Health Benefit Consulting Services and
Actuarial Services for a contract period of one (1) year with the option to renewal for an additional one
(1) year period; and
WHEREAS, the Aon Consulting, Inc. provided the lowest responsive and responsible bid per
the Scope of Work, as specified in "Attachment B", attached and incorporated; and
WHEREAS, the City Commission authorizes the City Manager to negotiate and execute a
Professional Services Agreement ("Agreement"), in substantially the attached form, with Aon
Consulting, Inc. for the provision of Health Benefit Consulting Services and Actuarial Services as
detailed in "Attachment B", for a contract period of one (1) year, with the option to renew for an.
additional one (1) year period, at a first year contract amount not to exceed $150,000, with a cost
increase cap not to exceed 3% for the second year;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI,
FLORIDA:
City of Miami Page 1 of 2 File Id: 11-00475 (Version: 1) Printed On: 6/1/2011
File Number. 11-00475
Section 1. The recitals and findings contained in the Preamble of the Resolution are adopted by
reference and incorporated as if fully set forth in this Section.
Section 2. The City Manager is authorized {1} to execute an Agreement, in substantially the
attached form, with Aon Consulting, Inc., for the provision of Health Benefit Consulting Services and
Actuarial Services, for the Department of Risk Management, for a contract period of one (1) year, with
the option to renew for one (1) additional one (1) year period, at a first year contract amount not
exceed $150,000, with a 3% cost increase cap for the second year of the contract, with funds
allocated from the various sources of funds of the user department subject to the availability of funds
and budgetary approval at the time of need.
Section 3. This Resolution shall become effective immediately upon its adoption and signature of
the Mayor.{2}
APPROVED AS TO FORM AND CORRECTNESS:
JULIE O. BRU
CITY ATTORNEY
Footnotes:
{1} 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 City
Charter and Code provisions.
{2} 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.
City of Miami Page 2 of 2 File Id: 11-00475 (Version: 1) Printed On: 6/1/2011