07-11-16 Item 4C- 07-11-16 Insurance BrokerAGENDA ITEM 4C
JULY 11, 2016
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: Insurance Broker of Record for City of Atlantic Beach
for Property and Casualty, Workers' Compensation,
Risk Management and Employee Benefits Services
SUBMITTED BY: Catherine Berry, Esq., Human Resources Director
DATE: June 29, 2016
BACKGROUND: In 2012 the Human Resources Director issued an RFP to
investigate options for an insurance broker/consultant to consult and advise the
City on all Property and Casualty, Workers' Compensation and Health-related
insurance programs, market trends and strategic planning for the future.
The City chose Harden and entered into a three-year agreement (2013-2015) at
the rate of $45,000/year for the Property and Casualty side and $48,000/year for
the Employee Benefit Services side. The original agreement provides for
automatic renewals and a 90 day out clause for either side. Harden has done an
exemplary job during the course of those three years, including providing on-
going support and assistance to the Human Resources department and our city
employees. Some of the outstanding accomplishments are as follows:
• Negotiated substantial medical benefit plan enhancements with Florida
Blue, in addition to capturing $188,000 in savings over CIGNA plans for
the plan year beginning January 1, 2013.
• Implemented new vision, short-term and long-term disability benefit
options for employees beginning January 1, 2013.
• Helped coordinate and facilitate successful employee health fairs each of
the three years, including health risk assessments and biometric
screemngs.
• Identified and implemented voluntary worksite product package (AFLAC)
that best supplements core benefit plans. The employees love having this
option.
• Provide on-going training to the Human Resources department on a wide
variety of topics relevant to the needs of the City and its employees.
• Implemented on on-line program for health benefits so that employees
may monitor, change and sign up for their health benefits. This has been
an invaluable new resource for us that Harden provides at no cost.
• Some of the on-going support that Harden provides:
•!• analyzing the City's needs
•!• providing expert advice and strategic planning
•!• conducting benchmarking with similar cities
•!• preparing a market analysis
•!• compiling premium quotes from all major carriers for coverage, and
•!• advising the City staff on the viable choices available.
1
• Harden coordinates all of o ur insuran ce claim s for the following:
•!• Public Officia ls & Empl oyment Practices Liabi lit y (EEOC Cla im s)
•!• Auto
•!• Workers ' Co mpensation
•!• Statutory Benefi ts : Accidental Deat h & Dismemberm ent
•!• Envi ronme nt al Lega l Liability
•!• Fidu ciary Liability
•!• Flood
•!• Genera l Liability
AGENDA ITEM 4C
JUL V 11, 2016
• Th e most helpful adv antage to the Ci ty is that they are knowled geable of
the markets and prov id e invaluable ins ight and ad vice as we look at our
insurance options each year.
Some of Harden's cli ent li st in clud es the Cit y of Femandina Beach, City of
Jack so nville, J ac ksonville Transp01tat ion Auth01ity, St. Johns River Waste
Ma nage ment District, and J ackso nvill e Hou sin g Authority. Harden & Associates
has deve loped stro ng, influenti al re lationsh ips and has receive d hi gh recogn ition
from the top hea lth carriers serving Not1 h Florid a, which will provi d e opportunity
for ob taini ng the bes t prices.
The C ity Manage r and J di scussed issuing an RFP for each of th e services that
Harden prov id es, bu t in li ght of recent events and the fact th at I have met with
severa l entities and have not found one th at ca n ass ure us the sa me le ve l of
serv ice th at Harden provides to the Ci ty of At lantic Beach , I would recom me nd
continuing ou r relat ionsh ip wi th Harden , with no increase i n fees.
BUDGET: Includ ed in th e cunent budget.
RECOMMENDATION: Co ntinue our re lation ship with Harde n & Assoc iates
to co ntinu e to act as the City of Atlantic Beach 's Br oket of
Reco rd for employee ben efi ts and property and casua lt y
in surance .
ATTACHMENTS: Origina l. Agree ment
REVIEWED BY CITY
MANAGER: --zli/Jvr ~A< t
2
September 14, 2012
Mr. Jim Hanson
City Manager
City of Atlantic Beach
800 Seminole Road
Atlantic Beach, FL 32233
Dear Mr. Hanson:
HARDEN
AGENDA ITEM 4C
JULY 11, 2016
This letter is to confirm our agreement that Harden will provide Property & Casualty and
Employee Benefits Insurance Brokerage and Risk Management Services to the City of Atlantic
Beach. This agreement is for a three-year period beginning October 1, 2012 for Property &
Casualty services and January 1, 2013 for Employee Benefit services. It shall continue in force,
subject to either party providing at least 90 days advance written notice of termination of the
agreement.
For these services, the City of Atlantic Beach will pay Harden an annual fee as outlined below.
Division Annual Fee Payment Terms
Property & Casualty Services $45,000 Quarterly
Employee Benefit Services $48,000 Quarterly
Please sign and return to indicate your acceptance. We look forward to working with you to
achieve your objectives. Please let me know if you have any questions or concerns.
Sincerely, Sincerely,
Shaun Woleshin Brooks Faison
Date 1 T 1
501 Riverside Avenue, Suite 1000; Jacksonville, FL 32202' '· : 904.354.3785;; 904.634.1302 hardeninsight.com