CITY OF NORTH LAUDERDALE

HUMAN RESOURCES DEPARTMENT

TO: Honorable Mayor and Commissioners

FROM: Richard D. Sala, City Manager

BY: Ernest King, Human Resources Director

DATE: September 13, 2007

RE: Bill Daly’s Insurance Agency Contract Renewal 2007/08

Acting as the City’s agent of record for group health and dental insurance, Bill Daly’s Insurance Agency has worked diligently to assist the City in maintaining competitive premiums. The City’s contract with Bill Daly’s Insurance Agency expires on September 30, 2007.

Bill Daly’s Insurance Agency has surpassed its contractual obligations to the City of North Lauderdale. The agency works diligently to ensure that health insurance rates increases on average are lower than the majority of the Cities in Broward County. For the past four years, Daly’s agency contacted American Dental and achieved a zero-rate increase for the City’s dental insurance coverage.

Some of the primary contractual obligations that Daly’s agency must accomplish are:

• Assist the City in negotiating premiums for health and dental insurance
• Be available to employees at City Hall on a monthly basis for any employee needs
• Assist employees with any disputes they may have with their group health or dental insurance coverage
• Receive and analyze group health insurance quarterly loss ratio statements

There is no direct cost to the City for these services. The City’s contract with Daly’s Agency allows the City Manager to renew the contract annually subject to Commission’s approval.

RECOMMENDATION

The City Administration recommends Commission’s consideration and approval of the attached resolution authorizing the City Manager to renew the contract with Bill Daly’s Insurance Agency for broker services, effective October 1, 2007 through September 30, 2008.

RESOLUTION ____________________________

A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF NORTH LAUDERDALE, FLORIDA, AUTHORIZING AND DIRECTING THE CITY MANAGER TO RENEW THE CONTRACT BETWEEN THE CITY AND BILL DALY’S INSURANCE AGENCY TO ASSIGN BILL DALY’S INSURANCE AGENCY AS THE AGENT OF RECORD FOR GROUP HEALTH AND DENTAL INSURANCE FOR THE CITY OF NORTH LAUDERDALE FOR FISCAL YEAR 2007/2008; AND PROVIDING AN EFFECTIVE DATE.

BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF NORTH LAUDERDALE, FLORIDA:

Section 1: That the City Commission does hereby authorize and direct the City Manager to renew the contract between the City and Bill Daly’s Insurance Agency to act as the agent of record for the CITY’s Group Health and Dental Insurance Coverage.

Section 2: That there shall be no cost to the City for the services provided by Bill Daly’s Insurance Agency.

Section 3: That this Resolution shall take effect immediately upon adoption.

PASSED and ADOPTED by the City Commission of the City of North Lauderdale, Florida this 13^th day of September, 2007.

APPROVED AS TO FORM:

___________________________________

CITY ATTORNEY SAMUEL S. GOREN

__________________________________

MAYOR JACK BRADY

__________________________________

VICE MAYOR RICH MOYLE

ATTEST:

____________________________________

DEPUTY CLERK PATRICIA VANCHERI

 
  AGREEMENT TO PROVIDE
GROUP HEALTH INSURANCE BROKERAGE SERVICES
 
 
THIS AGREEMENT, made and entered into the 13th day of September, 2007 by and between:
 
CITY OF NORTH LAUDERDALE, FLORIDA
a municipal corporation
701 S.W. 71st Avenue
North Lauderdale, Florida 33068
(hereinafter referred to as CITY')
 
AND
 
BILL DALY'S INSURANCE AGENCY
a Florida Corporation
10235 W. Sample Road
Coral Springs, Florida 33065
(hereinafter referred to as "CONSULTANT")
 
 WHEREAS, In November, 1996, the CITY issued its Request For Letters of Interest (LOI) all of the terms, conditions and provisions of which are incorporated herein by reference and made a specific part hereof, No. 96-11-194 (hereinafter, “LOI”) which set forth the CITY's desire to hire a firm to provide group health insurance brokerage services; and
 
 WHEREAS, on July 10, 200l, September 25, 2002, September 11, 2003, September 13, 2004, September 12, 2005 AND September 13, 2006 the City Commission extended the agreement between consultant and the City; and
 
 WHEREAS, the City Commission authorizes the appropriate City officials to enter into this Agreement with CONSULTANT to render the professional services more particularly described herein below; and for the purpose of this contract, CONSULTANT shall be defined as a licensed agent or insurance broker currently licensed with the State of Florida Department of Insurance; and
 
 NOW, therefore, in consideration of the mutual terms and conditions, promises, covenants hereinafter set forth, CITY and CONSULTANT agree as follows:
 
Section 1.  The above recitals are true and correct and are incorporated herein.
 
Section 2.  INTENT
 
 2.01 CONSULTANT acknowledges that it is the intent of this agreement to provide services to CITY, which will result in an increase in the types and quality of group health insurance benefits, to reduce the cost to CITY and to reduce the time required for CITY to select the applicable benefit providers.
 
2.02 CONSULTANT acknowledges that it will from time to time be required to coordinate and to negotiate group health insurance plans for CITY, which shall include but are not limited to group health insurance, employee assistance program services, group dental insurance, and group vision insurance.
 
Section 3.  SCOPE OF SERVICES
 
CONSULTANT shall provide the following services:
 
For Bid Requirements and Negotiation of Fees:
 
3.01 Meet with the applicable CITY staff as required to gather all relevant facts and establish objectives, and to recommend whether or not to go out for bid.
 
3.02 Develop formal bid specifications for approval by CITY.
 
3.03 Select, with CITY approval, the markets that are to be approached, which may involve an advance network match (RFI) to eliminate those markets that could not provide coverage(s) desired by CITY.
 
3.04 Market the CITY's program with the approved markets.
 
3.05 Prepare and present a written analytical report of the proposals received, including recommendations and supporting documentation for the recommendations.
 
3.06 Supervise the installation process, including the transition from existing vendors to new vendors, as circumstances may dictate.
 
3.07 Review proposed plan documents (employee booklets) and master contracts and provide written comments to CITY prior to adoption and printing of documents.
 
3.08 Conduct negotiations for renewal of benefits and premiums and develop appropriate information for management purposes.
 
3.09 For any future bids and awards, CONSULTANT must disclose to the CITY all commissions proposed to be paid to the CONSULTANT by each vendor/underwriter on the request of the City.
 
For Human Resources Department, employees, and other group insurance participants:
 
3.10 CONSULTANT shall conduct the CITY's yearly open enrollment.
 
3.11 Assist in the timely and efficient resolution of claim disputes.
 
3.12 Answer any and all telephone inquiries from CITY and its employees.
 
3.13 Meet with CITY staff periodically during the year as reasonably necessary, and with city employees regarding their individual concerns/problems when, as, and if needed. In order to accomplish the employee meetings, broker shall be available to employees in person at City Hall on a monthly basis, as may be reasonably arranged with Human Resources.
 
For Record Keeping and Evaluation:
 
3.14 Prepare an annual financial report related to the results of the plan year, which should be submitted no later than ninety (90) calendar days after the end of the plan year.
 
3.15 Prepare required information within the time frames mutually agreed on by the CITY and CONSULTANT, including quarterly loss ratio reports (monthly if available), unless otherwise provided in this Agreement.
 
3.16 Additional items required to complete the intent of the requirements of this Agreement.
 
The above Scope of Services shall include all of the above and all items specified in the Letter of Interest 96-11-194 which may or may not be reflected above.
 
Section 4 . RESPONSIBILITIES OF CITY
 
4.01 CITY shall provide CONSULTANT with information reasonably required from CITY in order to complete the services in accordance with this Agreement. Said information shall include, but is not limited to, census data, claims experience, billing data, plan documents, and previous contracts with providers, if available.
 
4.02 CITY shall assist CONSULTANT, as may be reasonably required, to enable CONSULTANT to meet the requirements of this Agreement.
 
Section 5. TERM AND TIME FOR PERFORMANCE
 
5.01 This Agreement shall begin October 1, 2007 and shall terminate on September 30, 2008. This Agreement may be renewed annually, for two (2) additional years subject to agreement by both parties.
 
5.02 Consideration for work completed under this Agreement shall be provided pursuant to the provisions of section 6 of this Agreement. CITY and CONSULTANT acknowledge that CONSULTANT's consideration is based solely upon commissions paid by the applicable vendors/underwriters.
 
5.03 CONSULTANT acknowledges that time is of the essence in the completion of the services required under this Agreement. CONSULTANT agrees that all work shall be completed regularly, diligently and uninterrupted at such rate of progress as will ensure full completion within the specified time. CITY'S Human Resources Director and the CONSULTANT shall mutually agree upon the time frame for completion of services, if a time frame is not otherwise specified in this Agreement. Failure to complete the work within the time period specified shall be considered a default.
 
Section 6. CONSIDERATION AND METHOD OF PAYMENT
 
6.01 CONSULTANT shall be compensated for its services on a commission basis. Said commission shall be paid to CONSULTANT by the applicable vendor(s)/underwriter(s) and not by the CITY.
 
6.02 The CITY agrees that the following commissions may be paid to CONSULTANT by the applicable vendors/underwriters and that such commissions shall be based on normal and customary commissions in the industry, subject to disclosure on company paid commissions to the CONSULTANT upon request of the City.
 
6.03 Should CITY purchase additional insurance supplemental to those in force, the CITY and CONSULTANT agree that CONSULTANT shall provide the required services consistent with the requirement of this Agreement and the commission level acceptable to both parties shall be approved in advance of the effective date of such additional benefits.
 
Section 7. OWNERSHIP OF DOCUMENTS
 
7.01 Reports, surveys, studies and other data provided in connection with this Agreement are and shall remain the property of City whether or not the project for which they are made is completed.
 
Section 8. TERMINATION
 
8.01 The Agreement may be terminated by either party for cause, or by the CITY for convenience, upon ninety (90) calendar day’s written notice by the CITY to CONSULTANT. All finished or unfinished documents, data, studies, surveys and reports prepared by CONSULTANT shall become the property of CITY and shall be delivered by CONSULTANT to CITY.
 
8.02 In the event CONSULTANT shall default in any of the terms, obligations, restrictions or conditions in either of the LOI and this Agreement, CITY shall give written notice by certified mail, return receipt requested to CONSULTANT of the default and that such default shall be corrected or actions taken to correct such default shall be diligently commenced within thirty (30) calendar days thereof. In the event CONSULTANT fails to correct the conditions of default or the default is not remedied to the satisfaction and approval of CITY, CITY shall have all legal remedies available to it, including, but not limited to termination of the Agreement in which case CONSULTANT shall be liable for all procurement and reprocurement costs and any and all damages permitted by law rising from the default and breach of the Agreement.
 
 
 
Section 9. RECORDS
 
9.01 CONSULTANTS shall keep books and records and require any and all subcontractors to keep books and records as may be necessary in order to record complete and correct entries as to personnel hours charged to this engagement, and any expenses for which CONSULTANT expects to be reimbursed by vendors other than the CITY. Such books and records will be available at all reasonable times for examination and audit by CITY and shall be kept for a period of three (3) years after the completion of all work to be performed pursuant to this Agreement. Incomplete or incorrect entries in such books and records will be grounds for disallowance by CITY of any fees or expenses based upon such entries.
 
9.02 All working papers, books and reports must be retained, at the CONSULTANT's expense, for a minimum of three (3) years, unless the firm is notified in writing by the CITY of the need to extend the retention period.
 
Section 10. INDEMNIFICATION
 
10.01 CONSULTANT shall indemnify, defend, save and hold harmless the CITY, its public officials, officers, agents and employees, from and against any and all claims, damages, losses, liabilities and expenses, direct, indirect or consequential arising out of or alleged to have arisen out of or in consequence of the services furnished by or operations of CONSULTANT or its subcontractors, agents, officers, employees or independent contractors pursuant to this Agreement, specifically including but not limited to those caused by or arising out of any act, omission, negligence or default of CONSULTANT and/or its subcontractors, agents, servants or employees in the provision of the services pursuant to this Agreement.
 
10.02 Nothing contained herein is intended nor shall be construed to waive CITY's rights and immunities under the common law or Florida Statutes 768.29, as amended from time to time.
 
10.03 CONSULTANT shall indemnify CITY for all loss, damage, expense or liability including, without limitation, court costs, attorneys' fees and paralegal expenses at the trial and appellate levels that may result by reason of any infringement of any patent, trademark, copyright, trade secret or other proprietary right relating to services furnished pursuant to this Agreement. CONSULTANT will defend and/or settle at its own expense any action brought against the CITY to the extent that it is based on a claim that products or services furnished to CITY by CONSULTANT pursuant to this Agreement, or if any portion of the services or goods related to the performance of the service becomes unusable as a result of any such infringement or claim.
 
Section 11. INSURANCE
 
11 .01 The CONSULTANT shall not commence work under this Agreement until it has obtained all insurance required under this Section and such insurance has been approved by the CITY nor shall the CONSULTANT allow any subcontractor to commence work on his sub-contract until all similar such insurance required of the subcontractor has been obtained and approved.
 
11.02 Certificates of insurance, reflecting evidence of the required insurance, shall be filed with the CITY prior to the commencement of the work. These Certificates shall contain a provision that coverage afforded under these policies will not be canceled until at least thirty (30) calendar days prior written notice has been given to the CITY. Policies shall be issued by companies authorized to do business under the laws of the State of Florida.
 
11.03 The required insurance coverage shall be issued by an insurance company authorized and licensed to do business in the State of Florida, with the minimum rating of B to A +, in accordance with the latest edition of A.M. Best's Insurance Guide, or a financial rating related to their insurance carrier.
 
11.04 Insurance shall be in force until all work required to be performed under the terms of this Agreement is satisfactorily completed as evidenced by the formal acceptance by the CITY. In the event the insurance certificate provided indicates that the insurance shall terminate and lapse during the period of this Agreement, then in that event, the CONSULTANT shall finish, at least thirty (30) calendar days prior to the expiration of the date of such insurance, a renewed certificate of insurance as proof that equal and like coverage for the balance of the period of this Agreement and extension thereunder is in effect. The CONSULTANT shall not continue to work pursuant to this Agreement unless all required insurance remains in full force and effect.
 
11.05 REQUIRED INSURANCE
 
A. WORKERS COMPENSATION insurance shall be maintained  during the life of this Agreement to comply with statutory limits for all employees, and in the case any work is sublet, the CONSULTANT shall require the Subcontractors similarly to provide Workers Compensation Insurance for all the latter's employees unless such employees are covered by the protection afforded by the CONSULTANT. The CONSULTANT and his subcontractors shall maintain during the life of this policy Employers Liability Insurance. The following limits must be maintained:
1. Workers Compensation Statutory
 
2. Employer's Liability $500,000 per occurrence
 
 
A. COMPREHENSIVE GENERAL LIABILITY insurance to cover  liability bodily injury and property damage. Exposures to be covered are: premises, operations, products/completed operations, and certain contracts. Coverage must be written on an occurrence basis, with the following limits of liability:
 
1. Bodily Injury/Property Damage
Each Occurrence   1,000,000
Annual Aggregate   1,000,000
 
2. Personal Injury
 Annual Aggregate   1,000,000
 
3. Completed Operations and Products Liability shall be maintained for two (2) years after the final payment.
 
C. COMPREHENSIVE AUTO LIABILITY
 
1. Bodily Injury
 Each Occurrence  100,000
 Annual Aggregate  300,000
 
2. Property Damage
 Each Occurrence  100,000
 Annual Aggregate  300,000
 
Coverage shall include owned, hired and non-owned vehicles.
 
D. PROFESSIONAL LIABILITY
 Each Occurrence  1,000,000
 Annual Aggregate  1,000,000
 
11.06 The CONSULTANT shall hold the CITY, their agents, and employees, harmless on account of claims for damages to persons, property or premises arising out of the operations to complete this Agreement and name the CITY as an additional insured under their comprehensive general and comprehensive auto liability policies.
 
11.07 The CITY reserves the right to require any other insurance coverage it deems necessary depending upon the exposures.
 
Section 12. INDEPENDENT CONTRACTOR
 
12.01 This Agreement does not create an employee/employer relationship between the parties. It is the intent of the parties that the CONSULTANT is an independent contractor under this Agreement and not the CITY's employee for any purposes, including but not limited to, the application of the Fair Labor Standards Act minimum wage and overtime payments, Federal Insurance Contribution Act, the Social Security Act, the Federal Unemployment Tax Act, the provisions of the Internal Revenue Code, the State Workers Compensation Act, and the State unemployment insurance law.
 
The CONSULTANT shall retain sole and absolute discretion in the judgment of the manner and means of carrying out CONSULTANT's activities and responsibilities hereunder. The CONSULTANT agrees that it is a separate and independent enterprise from the CITY, that it has full opportunity to find other business, that it has made its own investment in its business, and that it will utilize a high level of skill necessary to perform the work. This Agreement shall not be construed as creating any joint employment relationship between the CONSULTANT and the CITY and the CITY will not be liable for any obligation incurred by CONSULTANT, including but not limited to unpaid minimum wages and/or overtime premiums.
 
Section 13. ASSIGNMENTS; AMENDMENTS
 
13.01 This Agreement, or any interest herein, shall not be assigned, transferred or otherwise encumbered, under any circumstances, by CONSULTANT without the prior written consent of CITY, the CITY's consent may be withheld. This Agreement shall run to the CITY and its successors and assigns.
 
13.02 It is further agreed that no modification, amendment or alteration in the terms or conditions contained here shall be effective unless contained in a written document executed with the same formality and of equal dignity herewith.
 
Section 14. NO CONTINGENT FEES
 
14.01 CONSULTANT warrants that it has not employed or retained any company or person, other than a bona fide employee working solely for the CONSULTANT to solicit or secure this Agreement, and that it has not paid or agreed to pay any person, company, corporation, individual or firm, other than a bona fide employee working solely for CONSULTANT any fee, commission percentage, gift, or other consideration contingent upon or resulting from the award or making of this Agreement. For the breach or violation of this provision, the CITY shall have the right to terminate the Agreement without liability at its discretion, to deduct from the contract price, or otherwise recover the full amount of such fee, commission, percentage, gift or consideration.
 
Section15.  NONDISCRIMINATION AND EQUAL OPPORTUNITY EMPLOYMENT
 
15.01 During the performance of the Agreement, the CONSULTANT shall not discriminate against any employee or applicant for employment because of race, religion, color, sex or national origin. The CONSULTANT will take affirmative action to ensure that employees are treated during employment, without regard to their race, creed, color, or national origin. Such action must include but not be limited to, the following: employment, upgrading; demotion or transfer; recruitment or recruitment advertising, layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The CONSULTANT shall agree to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the contracting officer setting forth the provisions of this nondiscrimination clause.
 
Section 16. CONFLICT OF INTEREST
 
16.01 CONSULTANT covenants that no person under its employ who presently exercises any functions or responsibilities in connection with this Agreement has any personal financial interests, direct or indirect, with CITY. CONSULTANT further covenants that, in the performance of this Agreement, no person having such conflicting interest shall be employed. Any such interests, on the part of CONSULTANT or its employees, must be disclosed in writing to CITY.
 
 
 
16.02 CONSULTANT is aware of the conflict of interest laws of the Code of the City of North Lauderdale, Broward County and the State of Florida, Chapter 112, Florida Statutes (1996), as amended, and agrees that it will fully comply in all respects with the terms of said laws.
 
Section 17. COMPLIANCE WITH LAWS
 
17.01 CONSULTANT shall comply with all statutes, laws, ordinances, rules, regulations and lawful orders of the United States of America, State of Florida, City of North Lauderdale and of any other public authority, which are applicable to this Agreement.
 
Section 18. VENUE
 
18.01 Any claim, objection or dispute arising out of the terms of this Agreement shall be litigated in the Seventeenth Judicial Circuit in and for Broward County, Florida and the prevailing party to any resultant judgment shall be entitled to an award of all reasonable attorney's fees, paralegal expenses, interest and court costs incurred by such prevailing party against the losing party including reasonable appellate attorney's fees, interest and taxable costs.
 
Section 19. INSOLVENCY
 
19.01 In the event that either party shall become insolvent, make a general assignment for the benefit of creditors, suffer or permit the appointment of a receiver for its business or its assets or shall avail itself of, or become subject to, any proceeding under the Federal Bankruptcy Act or any other statute of any state relating to insolvency or the protection of rights of creditors, or become subject to rehabilitation, then, at the option of the other party and immediately upon written notice, this Agreement shall terminate and be of no further force and effect.
 
Section 20. ENTIRE AGREEMENT
 
20.01 This Agreement contains the entire understanding of the parties relating to the subject matter hereof superseding all prior communications between the parties whether oral or written, and this Agreement may not be altered, amended, modified or otherwise changed nor may any of the terms hereof be waived, except by a written instrument executed by both parties. The failure of a party to seek redress for violation of or to insist on strict performance of any of the covenants of this Agreement shall not be construed as a waiver or relinquishment for the future of any covenant, term, condition or election but the same shall continue and remain in full force and effect.
 
 
 
 
 
Section 21. SEVERABILITY
 
21.01 Should any part, term or provision of this Agreement be by the courts decided to be illegal or in conflict with any law of the State, the validity of the remaining portions or provisions shall not be affected thereby.
 
Section 22. WARRANTIES
 
22.01 CONSULTANT warrants to CITY that it is not insolvent, it is not in bankruptcy proceedings or receivership and that it will perform its services hereunder with due professional care. CONSULTANT is not engaged in or threatened with any litigation, arbitration or other legal or administrative proceedings or investigations of any kind which would have an adverse effect on its ability to perform its obligations under this Agreement.
 
Section 23. TAXES
 
23.01 CONSULTANT shall pay all applicable sales, consumer use and other similar taxes required by law.
 
Section 24.  NOTICE