Fort Walton Beach Council agenda — 02-10-09 regular — reading text

information relayed by the sign in front of City Hall and the other two signs in the city. He also commended citizen Doug Reed for his efforts with the business owners on Mainstreet and the streetscape project. The Mayor advised he attended the .Board of Commissioners meeting and discussed the wastewater treatment plant, and that the City is on its way to coming up with an agreement with the County. He also mentioned the good turnout at the MLK parade, the interesting presentation by the County Administrator at the OCLOC dinner, and congratulated Jose Pereira for being named Police Officer of the Year and Linda Oblak for being named Employee of the Year in the Police Department. CITY MANAGER ANNOUNCEMENTS The Acting City Manager commended the Police Department on the apprehension of a suspect in the downtown area. He also stated great progress is being made with the County in the Wastewater Treatment Plant negotiations, and he advised they will be meeting next Tuesday at noon and he will provide a copy of a draft agreement for Council' s review. Doug Reed encouraged Council to come to downtown and see the marvelous progress being made on the streetscape project. ADJOURNMENT There being no further business, the meeting adjourned at 9: 18 pm. APPROVED: MAYOR: ATTEST: CITY CLERK Ive  CITY COUNCIL MEETING February 10, 2009 Consent Agenda Consideration of a request for authorization for the City Manager to enter into an agreement for life insurance Administrative Services Director) Council Action 1st 2nd Vote: Agenda Item Number: 3  CITY OF FORT WALTON BEACH MEMORANDUM DATE: January 27, 2009 TO: Robert T. Mearns, Acting City Manager FROM: Mark Wiltsie, Administrative Services Director SUBJECT: Group Life Insurance Program Background: As part of the total benefit package for our employees, the City secures and pays the premiums for term life insurance coverage. The policy, which includes Accidental Death and Dismemberment ( AD &D), has a face value of $20, 000. Upon retirement, employees In may elect to continue this coverage with the total premium paid by the retiree. addition to the $ 20,000 basic life policy, employees may elect supplemental coverage for themselves and their families. Premiums for all supplemental coverage are borne by the employee through payroll deduction. Following a December 2002 RFP issuance, the City' s coverage was placed with ING/ReliaStar for an effective date of March 1, 2003. The City re- marketed this coverage in 2005 and ING /ReliaStar, who submitted a three ( 3) year rate guarantee and the lowest proposal, was again awarded the business. Due to the expiring Policy with ING /ReliaStar, staff issued an RFP for group life insurance commencing March 1, 2009. The RFP was issued on December 5, 2008 with a January 6, 2009 due date for submission of proposals. Analysis: As a result of the RFP process, proposals were received from ING /ReliaStar ( the incumbent provider), Companion Life Insurance Company, National Life Insurance Company and Standard Insurance Company. A summary of their proposed pricing is attached ( Exhibit A). A Life Insurance Selection Committee comprised of Mark Wiltsie, Administrative Risk Management Specialist and Brandy Wunker, Services Director, Sandi Kacenak, Finance Director met on January 21, 2009 to review and rank the proposals. The committee members ranked the proposals using a weighted rating system. A copy of the Summary of Weighted Ratings Evaluation as prepared by Purchasing Agent, William Worlds is attached to this staff report ( Exhibit B). As a result of the selection process, staff recommends award of the City' s group life insurance program as follows: Company: Standard Insurance Company Insurer Representative: Jarod Hayer Agent: Lon Bryan, LB Bryan & Co. Proposed Life and AD &D Monthly Rate: 0. 265/ 1000 coverage Annual rate for $20, 000 life policy - $63. 60) Award Considerations: 1. Standard meets all requirements included in the City' s RFP. 2. Proposed rates are $ 0. 06/ 1000 coverage less than the current rates. As current annual rate per covered policy holder is $ 78. 00, this represents a $ 14. 40 reduction in premium per employee / retiree. 3. Standard is rated A (Excellent) by A.M. Best. 4. Staff has contacted several references who are currently insured by Standard and we have received favorable recommendations. 5. Standard has offered a 3 year rate guarantee. The following compares the current and proposed rates for basic life coverage for employees and retirees: Provider Annual Cost/Employee Retiree Annual Cost ING /ReliaStar 78. 00 70. 80 Standard Insurance Company 63. 60 57. 60 Proposed) Premium Difference 14. 40> 13. 20> Note: Retiree cost is less than employee rate as retirees are not eligible for AD &D coverage. It should be noted that National Life Insurance Company proposed a lower rate for current employees ($ 0. 215/ 1000 coverage) than Standard; however, this rate is contingent upon a higher rate for retirees when they reach age 70 which is inconsistent with the requirements of the RFP. As the rates proposed by the recommended insurance provider are less than current rates, sufficient funds are available in the 2008/ 09 budget. 2 Recommendation: Based on the above, I respectfully request City Council authorize the City Manager to enter into agreement with Standard Insurance Company for life insurance coverage contained in this staff report and exhibits for a policy period March 1, 2009 through February 28, 2012. Respectfully Submitted, A" - ie'' Mark Wiltsie Administrative Services Director 11 Approved obert . Mearns cting City Manager  0 I dT , O 0 to L v i M LO N N 6q _ I' G C` 1 I I Q O O V ' C 01 oI O( N f i Ip, 0I 6q I C3 v ti. 1- Ichl O V LO ' N I U-) Q_ N v U I I4 IOlim Afsl' LO