AGENDA ITEM REPORT
TITLE:
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A RESOLUTION AUTHORIZING THE CITY MANAGER, OR DESIGNEE, TO EXECUTE AGREEMENTS WITH RSC INSURANCE BROKERAGE, INC. INCLUDING ITS DIVISION, GEHRING GROUP, AND BENTEK, INC. FOR THE PURPOSE OF PROVIDING INSURANCE BROKERAGE AND BENEFITS CONSULTATION SERVICES AND BENEFITS ENROLLMENT AND ADMINISTRATION SOFTWARE SERVICES TO THE CITY OF COCONUT CREEK PURSUANT TO RFP NO. 02-09-22-10.
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BACKGROUND:
Through Request for Proposals (RFP) No. 02-09-22-10, the City is seeking to contract with a qualified consultant to provide insurance brokerage services for Medical, Dental, Short-term and Long-term Disability, and Life Insurance and Accidental Death and Dismemberment Plans. The consultant will assist in the development and implementation of the employee benefits program and ensure the program’s compliance with state and federal legislation. The City’s current agreement for these services is expiring with no renewal options left.
DISCUSSION:
On January 16, 2022, the City issued a competitive solicitation for insurance brokerage services. Invitations were sent to three (3) prospective vendors, including the City’s current vendor, RSC Insurance Brokerage, Inc. including its division, Gehring Group (herein after “Gehring Group”); and on February 9, 2022, one (1) responsive proposer was identified. A selection committee consisting of Tim McPherson, Human Resources Manager; Laeticia Larrieux, Benefits Program Manager; and Katelyn DiCintio, Human Resources Generalist, assessed the response in accordance with the criteria set forth in the RFP. The committee deemed Gehring Group’s proposal as valid, ranking the insurance brokerage firm as number one (1). In addition to traditional insurance brokerage services, Gehring Group provides additional value-added services, such as educational and training components and resources that benefit all employees, wellness program assistance, online benefits enrollment and administration software (Bentek, Inc.), and Affordable Care Act compliance and reporting software and related tax filing services, all included in the fee structure.
The fee structure for this agreement would be commission-based, not to exceed $101,000 per fiscal year. These fees will be paid by the insurance carrier(s) directly to Gehring Group. The initial contract term shall expire on February 28, 2027, with the option to renew for up to five (5) additional one (1) year periods. Following the initial term, Gehring Group may propose a rate increase not to exceed two percent (2%) each renewal year.
RECOMMENDATION:
Staff recommends approval of this resolution.
FISCAL IMPACT:
REVENUES: $ 0
EXPENDITURES: N/A
BUDGETED?: Yes
NOTES: Commissions for Insurance Brokerage Services are paid by the insurance carrier(s) directly to Gehring Group. The Gehring Group contract includes the cost of Bentek, Inc. software services. No fees are to be paid to Gehring Group or Bentek, Inc. by the City.