CA.8 - Extend Employee Benefits Insurance

WHEREAS, pursuant to Resolution No. R-14-0479, adopted by the City Commission on December 11, 2014, the City of Miami (“City”) and Minnesota Life Insurance Company, a foreign profit corporation (“Provider”), entered into a Professional Services Agreement (“PSA”) to provide Employee Benefit Life and Accidental Death and Dismemberment (“AD&D”) Plans (“Services”), for the Department of Risk Management (“Risk”), in accordance with Request for Proposals (“RFP”) No. 469353, Employee Benefit Life and Accidental Death and Dismemberment Plans, subject to the availability of funds for the term and scope of work included in the PSA; and

WHEREAS, the City has exhausted all available extensions and renewal options under the PSA, including the initial renewal options, Amendment No. 1, and subsequent 120-day extensions; and

WHEREAS, the PSA was due to expire on April 4, 2026, and an extension through December 31, 2028, is necessary to avoid the expiration of the Basic Life, Accidental Death and Dismemberment, and Supplemental Life Insurance coverages offered to certain classes of City employees while the City conducts a new competitive solicitation for the Services; and

WHEREAS, the continuation of life insurance and AD&D coverage for City employees is essential to the health, welfare, and benefit of City personnel, and an interruption in such coverage would be detrimental to the City and its employees; and

WHEREAS, the Provider has agreed to extend the PSA through December 31, 2028, including a fifteen percent (15.00%) reduction on Basic Life coverage for active employees and retirees, and a nine and three-quarters percent (9.75%) reduction on Supplemental Life Coverage; and

WHEREAS, the extension shall cease upon the completion of a new solicitation to secure the Services and the completion of the City’s insurance open enrollment period; and

WHEREAS, the City Manager, pursuant to Section 18-90 of the City Code, made a written finding, attached and incorporated as Exhibit “A” (“City Manager’s Findings”), that an emergency exists and approved an emergency purchase request by Risk to extend the PSA with the Provider through December 31, 2028, to prevent a lapse in the Services, with an estimated annual fiscal impact of approximately Two Hundred Twenty-One Thousand, Seven Hundred Forty-One and 05/100 Dollars ($221,741.05) and actual expenditures to be determined by enrollment, coverage elections, and the applicable premium rates under the PSA; and

WHEREAS, the City Commission desires to ratify, confirm, and approve the City Manager’s Findings and retroactively authorize the City Manager to execute the Amendment with the Provider to protect the life, health, welfare, and convenience of the City;

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. By a four-fifths (4/5ths) affirmative vote, the City Commission hereby ratifies, confirms, and approves the City Manager’s Findings that an emergency exists, waives the competitive sealed bidding procedures pursuant to Section 18-90 of the City Code, and retroactively approves Amendment No. 2 to the RFP No. 469353 PSA with the Provider for the Services, extending the PSA through December 31, 2028, with an estimated annual fiscal impact of approximately Two Hundred Twenty-One Thousand, Seven Hundred Forty-One and 05/100 Dollars ($221,741.05) and actual expenditures to be determined by enrollment, coverage elections, and the applicable premium rates under the PSA, subject to the availability of funds and annual budgetary approval.

Section 3. Funds for this purpose shall be allocated from Risk Management Account Code No. 99900.000000.201000.0000.00000, subject to the availability of funds and budgetary approval at the time of need.

Section 4. The City Manager is authorized to negotiate and execute any and all documents, including any amendments, renewals, and extensions, all in forms acceptable to the City Attorney, subject to all allocations, appropriations, prior budgetary approvals, and compliance with applicable provisions of the City Code, including the City’s Procurement Ordinance, Anti-Deficiency Act, and Financial Integrity Principles, all as set forth in Chapter 18 of the City Code, and in compliance with all applicable laws, rules, and regulations, as may be deemed necessary for said purpose.

Section 5.  This Resolution shall become effective immediately upon its adoption.