09-04-18 September 2018 Item 10A- Original Agreement and three-year renewal agreementsCITY 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: September 4, 2018
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 screenings.
• 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
4- preparing a market analysis
•a• compiling premium quotes from all major carriers for coverage, and
❖ advising the City staff on the viable choices available.
• Harden coordinates all of our insurance claims for the following:
Public Officials & Employment Practices Liability (EEOC Claims)
Auto
Workers' Compensation
ogo Statutory Benefits: Accidental Death & Dismemberment
ogo Environmental Legal Liability
ogo Fiduciary Liability
Flood
General Liability
• The most helpful advantage to the City is that they are knowledgeable of
the markets and provide invaluable insight and advice as we look at our
insurance options each year.
Some of Harden's client list includes the City of Fernandina Beach, City of
Jacksonville, Jacksonville Transportation Authority, St. Johns River Waste
Management District, and Jacksonville Housing Authority. Harden & Associates
has developed strong, influential relationships and has received high recognition
from the top health carriers serving North Florida, which will provide opportunity
for obtaining the best prices.
The City Manager and I discussed issuing an RFP for each of the services that
Harden provides, but in light of recent events and the fact that I have met with
several entities and have not found one that can assure us the same level of service
that Harden provides to the City of Atlantic Beach, I would recommend continuing
our relationship with Harden, with no increase in fees.
BUDGET: Included in the current budget.
RECOMMENDATION: Continue our relationship with Harden & Associates by
executing new 3 -year contracts to continue to act as the City
of Atlantic Beach's Broker of Record for employee benefits
and property and casualty insurance at the original 2013
rates and authorize the City Manager to execute the
agreements.
ATTACHMENTS: Original Agreement
REVIEWED BY CITY `
MANAGER:
2
r -
September 14, 2012
Mr. Jim Hanson
City Manager
City of Atlantic Beach
800 Seminole Road
Atlantic Beach, FL 32233
Dear Mr. Hanson;
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 Pa ment Terms
-Property & Casualty Services $46,000 Quarters
-Employee Benefit Services $48,000 Quarter)
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 Falson
Accepted by:
Date
City Manager
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601 Riverside Avenue, Suite 1000 l Jacksonville, FL 32202 IT H. 904.364.3785 ; w ,, 904.634.1302 i hardeninsight,com