AGENDA MEMORANDUM

 

Meeting Date:           September 22, 2008

 

From:                          Mike Thornton, Purchasing Manager

 

Subject:                      Resolution approving award of Request for Proposal (RFP) #80412 to Standard Insurance Company and authorizing the City Manager to execute documents related to implementation of the new policy

 

 

Staff Recommendation:

Staff recommends awarding Request for Proposal #80412 for Group Life and Accidental Death & Dismemberment (AD&D) insurance to Standard Insurance Company.  Staff also recommends City Manager Jay Evans be authorized to sign or execute the necessary documents for implementation of the new group policy.

 

Analysis:

The City currently provides Group Life and AD&D insurance to employees.  The City provides the employee with a $50,000 life insurance policy and a $50,000 AD&D policy.  Employees and retirees may purchase additional optional life insurance from the same program at their expense.

 

The City’s current Group Life and AD&D policy with Jefferson Pilot Financial expires on September 30, 2008.  Staff felt the City should be able to obtain lower premium rates for this benefit.  Instead of renegotiating the existing rates, the Purchasing Division was asked to issue an RFP for Group Life and AD&D policy.

 

On July 21, 2008 the Purchasing Division issued RFP #80412.  On August 21, 2008, 14 responses to our request were received.  A three member evaluation committee from Human Resources and Purchasing reviewed the proposals.  The committee ranked Standard Insurance Company number one.  The complete list of rankings is attached for your review.

 

A summary of the benefit components with the current rate and proposed new rate is shown here.  The Standard Insurance rates are guaranteed for 36 months.

 

 

Coverage

Benefit

Amount

Current Rate / $1,000

Jefferson Pilot

New Rate

Standard Insurance

Employee Basic Life

$50,000

$.27

$.138

Employee Basic AD & D

$50,000

$.03

$.02

Employee Optional Life

$10,000 to

$300,000

Varies based on employee age

Varies based on employee age

Retiree Optional Life

$15,000

$.57

$.57

 

The agent/broker of record that will be servicing this policy is L.B. Bryan and Company of Ponte Verde, Florida. Attached to this memo is the cover letter submitted by Standard Insurance Company introducing their company, the services they provide, and their quoted rates.

 

This resolution also requests the commission authorize the City Manager, Jay Evans to sign or execute documents related to the implementation of this policy.  Implementation of the policy requires several steps starting with the signing of an application letter and ultimately an agreement with the company.  These documents will need signatures over the next month as the census data is submitted and all the numbers are finalized.  To minimize potential delays caused by our commission meeting schedule, staff requests the City Manager be authorized to sign these documents following review by the City Attorney.

 

Options:

1.  Approve the resolution awarding to Standard Insurance and authorize the City Manager to execute the necessary documents to implement the new program; or

2.  Such alternative action as the Commission may deem appropriate

 

Fiscal Impact

The annual cost to the City will be $50,340.00 paid monthly.

 

The City’s cost of providing the $50,000 basic life insurance for its employees will decrease 47% or $45,240 annually or $135,720 over the life of the three-year agreement. In addition, we have also been able to reduce the employee’s cost of their voluntary life insurance by 47% or collectively $23,440 annually or $70,320 over the life of the three-year agreement putting money back into the pockets of our employees that have already purchased voluntary life insurance coverage(s).

 

 

Submission Date and Time:    9/17/2008 5:44 PM____

 

Department: _Human Resources________

Prepared by:  _Mike Thornton___________                     

Attachments:         Yes__X__   No ______

Advertised:   X___Not Required ______                     

Dates:   Demand Star________________                     

Attorney Review :       Yes___  No ____

                                                

_________________________________           

Revised 6/10/04

 

Reviewed by: Dept. Head ________

 

Finance  Dept. __________________                                     

                              

Deputy C.M. ____EFS____________                         

 

Submitted by:

City Manager ___________________

 

Account No. _001-0000-202-1700__

 

Project No. _____     ___________

 

WF No. _____________________

 

Budget  ______________________

 

Available _____________________


 

RESOLUTION NO._______________

 

A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA AWARDING A REQUEST FOR PROPOSAL SOLICITATION TO STANDARD INSURANCE COMPANY AND AUTHORIZING THE CITY MANAGER TO EXECUTE ALL NECESSARY DOCUMENTS TO FINALIZE THE IMPLEMENTATION OF THE NEW GROUP LIFE AND ACCIDENTAL DEATH AND DISMEMBERMENT (AD&D) INSURANCE PLAN FOR EMPLOYEES, SPOUSES AND RETIREES; AND PROVIDING AN EFFECTIVE DATE.

 

BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:

 

            THAT, the Mayor and City Clerk approve the award of Request for Proposal number 80412 to the STANDARD INSURANCE COMPANY.

 

            THAT, the City Commission authorizes the City Manager to sign documents necessary to implement the new policy with the STANDARD INSURANCE COMPANY.

 

             THAT, this resolution shall become effective immediately.

 

PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the _22nd____ day of __September_______ 2008.

 

 

 

                                                                            __________________________

                                                                             Mayor

 

ATTEST:

 

 

__________________________

City Clerk