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HomeMy WebLinkAboutR-75-0085was the low bidder; and RAS/cs 1/17/75 RESOLUTION ND. 75-85 A RESOLUTION ACCEPTING A BID OF THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES, RECEIVED ON SEPTEMBER 20, 1974, PROVIDING GROUP INSURANCE COVERAGE FOR CITY EMPLOYEES FOR A PERIOD OF ONE YEAR, COMMENCING FEB- RUUARY 1, 1975, AND RENEWABLE ANNUALLY; AUTHORIZING AND DIRECTING THE CITY MANAGER OF THE CITY OF MIAMI TO ENTER INTO AGREE- MENT WITH THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES. WHEREAS, pursuant to Resolution No. 74-502, the City of Miami advertised for bids for group insurance cover- age for city employees; and WHEREAS, pursuant to Resolution No. 74-501, the city manager retained the services of an actuary to analyze and evaluate the bids received for group insurance for city employees; and WHEREAS, the actuarial analysis and evaluation con- cluded that the Equitable Life Assurance Society of the United States "DOCUMENT NDEX ITEM NO. " WHEREAS, over 60 per cent of the eligible employees of the City of Miami have, pursuant to a formal election, elected the Equitable Life Assurance Society of the United States to underwrite the group insurance plan for City of Miami em- ployees; NOW, THEREFORE, BE IT RESOLVED BY THE COM'IISSION OF THE CITY OF MIAMI: Section 1. Tnat the city manager of the City of Miami be and he is hereby authorized and directed to enter into an agreement with the Equitable Life Assurance Society of the United States, providing group insurance cov CITY COMMISSION MEETING OF JAN 231915 ammo t4Q...75.1 NEMARKS: City employees for a period of one yea, commending February 1, 1975, and renewable annually in acCotdance with the bid of EqUita..- ble Life Assurance Society of the United States, received on September 20, 1974. PASSED 'AND ADOPTED this 23 day of JANUARY , 1975. ATTEST:7 / H. D. 4OUTHERN C.E'PY CLERK .; PREPARED AND APPROVED BY: t I RONALD A. SILVER Assistant City Attorney APPROVED AS TO FORM AND CORRECTNESS: we' ..10iiN S. LLOYD, (City Attorney //, MAURICE A. FERRE M A Y O R Bi MAJILITY io+ id ntal beath InSu Sande kept �3, l9 DATE BIDS RECEIVED Pihanee BIbbER TYPE OF SECURITY AMOUNT FOR ACCOUNTING USE Charles R. Tho cison Jtoi th .n ,ar.te:.., t ; fe Ana Ga.sualty 1750 Hennepin Ave. Minneapolis. Minn. Norman Lodin, Gen Agt. MaGoabees Mutual Life Ins. Cv. Norman Lodin, Gen. Agt. National Casualty Co. Detroit Mich. George A. Stuart, Jr. Urritrd-Mates Fi.ie l l.y dnd Gu Ins. Companies rah ty 0190 Biscayne Miami,Florida 33138 Boulton Life Agency Inc. 9165 Park Drive Miami Shores, Florida 33138 Ruel Insurance Corporation Tv-al/piers Tn m anr.e Co 1024 S. Miami Ave. Miami, Florida A.H. Patten & Co. Nation Wide Insurance Company -r- 530 Seybold Bldg. Miami.Florida A.H. Patten & Co. Continental Casualty Co. el 530 Seybold Bldg. Miami,Florida ki Received the above described checks this day of 19 FOR ACCOUNTING DI\ ISION DATE CITY OF MIAMI, FLO...MA REQUISITION FOR ADVERTISEMENT FOR BIDS BID No.73-7" 85 WIC(' ISSUING DEPARTMENT__ _ DIVISION Lccioeicial 1nsurartc2.-' SIDS TO BE SECURED FOR Purci4asiu',. N° A FOR THE DEPARTMENT OF: .(1-3t.m 1,er 13 , 1 '.474 ADVERTISE ON : _ ESTIMATED COST: CONTRACTUAL: $ PROJECT: INCIDENTAL TOTAL SOURCE OF FUNDS:__ To be filled in by FINANCE DEPARTMENT n at e BIDSTO BE RECEIVED ON: Approved By: JOB NO __ • — Septei3ber Date Director of Issuilt., Departmert FUNDS AVAILABLE FOR PROJECT INVOLVED Otec.7.0/444,0034:11, PROJECT CODE AD CODE = To be filled in by PURCHASING AGENT : ADVERTISE IN v •I ar arios L ricas I jTly:I o axat.• (77-IT: Amount. i e rt LJ,c!; s New paper Arnoont • Purchase Order No. Purchase Order Nu. COPIES TO: Purchasing (Orig.) — City Alanager City CA',•rk — Fxpt•wiituri, Contra! — Dtpu.trarn: Oilwr I). Wtote Green Pk Canary Blur Form No. 1043 Legal Advertisement Bid :io, 73-74-185 Sealed bids for' Accidental "oath Insurance to comply with Florida Statutes, Chapter 67-408 and 67-443, providinn for coverage for Firemen and Lahr Enforcer1ent Uffi cers and for all other employees ,1i 1 1 be received by the City 'ianaryer and the City Clerk of the City of Florida, no later than • 2:03 P.;4. o'clock; Se nte;iber 23, 1974 in the City Clerk's office, 1st floor of i+iani City Hall, 3503 Pan American "rive, Dinner Key, iii anti , Florida 33133, at which ti-'e and place they will be publicly opened and read. All bids shall be sub- mitted in accordance to instructions to bidders ,which nay be obtained fro;! the Purchasing Division, 3531 Pan American Drive, Dinner K2y, Florida 33133, tel enhone 445-4745. BID SECURITY ittm Health insurance for City Eftployees 8ept, 20 19/4 DATE BIDS RECEIVED f.t Finance j2/ • .3' C. BIDDER ' TYPE OF SECURITY AMOUNT FOR ACCOUNTING USE "AmeriCan Health Plan cf -.,,e./ .jemi, e tL c at c-: 3 - "r it t ) e e • tp. 1: ' (' - /7 1. e (...„„) 1/01 N.E. 164th St .. 0 4,. N. Miami Beach,FlOrida 33162 67 The Prudential Insurance . .. , , . f, ; 7/2/ y ..' V. e/ . ( Company of America IiiiMIAMS. no•awortv...00.4aml.s.,14, * ilJI . 0 0 .- %/The Equitable Life Assurance "2, 6" ,' • ii,";, A't&- i) .-,.. hi; ,/_.*.,, 0'77- ,-e- 9' / } Society of the iinited Box 1055 States #7,1 01,/-•_ ,L ,, New York, N.Y. 10001 --- The Travelers Insmiance Companies -:/,, - J - — • -, .4 'i Box 520030 / Miami,Florida -s...._,. "John Hancock Mutua Life Ins. Co. A. POO 'VW SJ r - S'Sla Suite 100 2200 Pa Northlake Office P.rk k ake Drive N.E.- orP4.4,,e-resoa Atlanta, Georgia 30345 doe- Aroa •00P1 ---. Florida Combined I s. Agency Inc. Box 2468 TOL.- Jacksonville,Flori.a I.----- Aetna Life & z Casualty -,,:"/ - / .•.• - - Co. ,hi.,, . — / xl „L • 100 Biscayne Blvd. Suite 1400 ,,.( • a , ., Miami,Florida 33132 e',1( -tMetropolftan Life One Madison Ave. rriZA4PAPOP New York N.Y. 10010 ........._ f- ._ _. Vigashington Nat1 Ins. Co 1630 Chicago Ave. re 4 dr 4,4".40004.• Evanston. Illinois Received the above describ-d checks this day of 19 ir FOR. ACCOUNTING DI 'SION "4 ;0-, BID SECURITY ITEM, DATE BIDS RECEIVED Page #2 BIDDER TYPE OF SECURITY AMOUNT FOR ACCOUNTING USE `27-7Mr. Richard J. Ros e/o vtioitable, td.f nberg ‘r L EEC 4 fr ,��a 540 Madison Avenue N. Y. 10022 at- e6' ode .yel .1,a� • 6- �,e �y �° Ge. ea 1 n'r' a.ay � Nae `a fi r 'pytiedr aab1 O a � • r esea,iG'N•,a° '0iN,ea. ,NO 3 b`� a5 .ev- .�'ti fi'S. ��0 y(4 e otx % , ,-1 (_. tV. %i ` .�.; C'-�s` - '% I C� v. 1 O ,� fi 1. 4 yae�a�ersp '� e e L k,,,,6.�e a,� • .ced" 09e ...-15 i ��O J Received the ohove descri^d checks this day of 19 FOR ACCOUNTING DIVISION r-' PLEASE NOTE: DID -OPENING FOR HEALTH INSURANCE FOR CITY EMPLOYEES (CITY OF MIAMI) HAS BEEN RESCHEDULED FOR MON.SEPT.30 AT 2 P.M. PLEASE HAVE REPRESENTATIVE PRESENT IF DESIRED, RALPH G. ONGIE ASSISTANT CITY CLERK CITY OF MIAMI CITY OF ;.MInt+i, FLORIDA INTER -OFFICE MEMORANDUM TO Honorable tiicrnber s of the City Co3-nnission `fiOM P. W. Andrews City Manager eNCLO;uz=s Ji-VI 1 7 1915 Resolution Authorizing Change of Group Insurance Benefits and Group Insurance Carrier In 1969 when the vote of the employees did not meet the requirements of the State law to authorize a change in benefit plan and carrier, discussions were reopened with employee groups in preparation for the time when another attempt to change the benefits would be appropriate. In July of 1972, the City Manager requested that the employee organizations appoint representatives to an Employee Insurance Committee to investigate and recommend needed changes to the Group Insurance Plan. This Committee has labored, meeting on the average of at least once a month, gathering data and interviewing any and all insurance companies that were willing to supply information to the Committee for their review. By the end of 1973 the Committee felt it vas prepared to recommend benefit changes to update the Group Insurance Plan, recognizing which were the most pressing needs of the employees. By the summer of 1974 specification preparation was completed and prepared for submission of bid under four different plans to obtain the maximum benefit to the employee, considering the priorities of coverage requirements and staying within cost limits to the City as had been negotiated through the employee contracts. In July of 1974, announcement soliciting bids was published for all sealed bids to be submitted to the City Clerk by 4:00 P.M., September 20, 1974. The bids received were forwarded to A. S. Hansen, Inc., who had been retained as actuary to analyze and evaluate the proposals with reference to their compliance with the bid specifications and to analyze that the cost submitted was based upon the assumptions as provided in the bid specifications. Upon receipt of this analysis in November, the Employee Insurance Committee narrowed the selection, as recommended by A. S. Hansen, Inc., to the three companies with the lowest qualified bids. The Committee, where necessary, interviewed the companies involved with reference to details of the proposed administration of their plan to select the company that they felt could provide the best service at the lowest cost to the City and the employee. Page 1 of 2 17 197: honorable it embers of the City Commission The recommendation of the. 1 i pluyou Insurance Committee was then presented to the members of the Group Insurance Plan fur t1u it approval, as require(! by State law, of the proposed benefit: change and the recommended carrier to admin- ister the proposed plan. This vote was held bc-Aween January 9 and 11, 1975, and the sealed ballot boxes z ere delivered to the City Clerk for his tabulation and certification. There were 3, 309 active members eligible to express their preference and 1,124 retirees, for a total eligible vote of 1,433. The number of votes cast was 4,021, or 90.770 of the eligible enrolled members. The number expressing their preference for the new proposed plan and change in carrier was 3,811) or 85. 97 % of those eligible to vote. The requirement by State law to effectuate a change is 60% of the eligible enrolled members. Of the number casting their preference vote, 94, 78% voted for the change of plan and a change of carrier. The bids submitted by Equitable Life Assurance Society of the United States, the recommended carrier as approved by the ballot, ,vould implement the Plan effective February 1, 1975, if approved by the City Commission. The contract will be for one year guaranteed premiums, renewable with the premium guarantee of each year of renewal. Any changes of premium requested by the carrier are to be received thirty days prior to the renewal date. The Employee Insurance Committee met with representatives of the Health :Maintenance Organization on January 15, 1975, as requested by the City Commission at the meeting of January 9, 1975. The representative of H. M. 0. indicated at the meeting that he had erred in his calculation in the H.M.O. bid by incorrectly calculating their monthly life insurance cost at $1. 00 per month instead of $15.00 per month, and that their statements at the Commission meeting of January 9, 1975 that their plan was a lower cost than the reconnunended bid was probably in error. The Committee further concluded from the presentation by the H.M.O. that their plan is not practical for the City of Miami at this time and invited the H.M. O. to contact the City at a future date when they are better equipped to provide the complete services needed, and that consideration would be given to them when the policy comes up for renewal.. The Committee has operated under 11ie auspices of the Labor Relations Office and :meetings have b.-!en held with a representative of the City Ivianager% Office present. Page 2 of 2 LAW OFFICES ALAN H. ROTHSTEIN Vice -Mayor J.L, Plummer, Jr. City of Miami Dinner Key Coconut Grove, Fla. CITY NATIONAL RANK 6 U I L 0 I N G SuITE 113S -� 2S WEST �" LAGLER STPEE7 MIAMI. FLORIDA 33130 3 7 9• 9 3 3 6 January 22, 1975 Re: American Health Plan, Inc, and the City of Miami Employees Insurance Coverage Plan. Dear Vice -Mayor Plummer: Please be advised that your Insurance Committee met with Dr. Harwitz and myself and had a very fruitful meeting. It was the conclusion and opinion of the members of the Committee that the Commission should proceed to act on the present Equitable Plan at its next Commission meeting, and that the Committee should stay intact and work together towards a full analysis of incorpo- rating an H.M.O. type of plan in the program to be presented to the employees in the future when the federal regulations become available, or perhaps next year when the bids for new plans come up. Both Dr. Harwitz and myself concur with the Committee in the conclusion that further exploration of how to implement a Health Maintenance Organization for the City is definitely required. I think that the Committee and the Administrative Staff wou1c do well to work towards this goal and that Dr. Harwitz personally" stands ready to assist in any way he can and he should be communi- cated with directly. matter. AHR:vls Many thanks for your kind cooperation and attention to this Sincerely, / r/• •, << Alan H. Rothstein