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2002-154O INANC NO. d OOd- iG'J CONSIDER APPROVAL OF AN ORDINANCE ACCEPTING SEALED PROPOSALS AND AWARDING A CONTRACT FOR THE SERVICES OF AN INSURANCE CONSULTANT FOR THE CITY OF DENTON; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE AND PROVIDING AN EFFECTIVE DATE (RFSP 2829 - INSURANCE CONSULTANT SERVICES AWARDED TO MCGRIFF, SEIBELS & WILLIAMS OF TEXAS, INC. IN THE AMOUNT OF $145,000 OVER A THREE YEAR PERIOD). WHEREAS, the City has solicited, received and evaluated competitive sealed proposals for the purchase of Insurance Consultant Services in accordance with the procedures of STATE law and City ordinances; and WHEREAS, the City Manager or a designated employee has received and reviewed and recommended that the herein described proposals are the most advantageous to the City considering the relative importance of price and the other evaluation factors included in the request for proposals; and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the materials, equipment, supplies or services approved and accepted herein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the items in the following numbered request for proposal for materials, equipment, supplies or services, shown in the "Request Proposals" on file in the office of the Purchasing Agent, are hereby accepted and approved as being the most advantageous to the City considering the relative importance of price and the other evaluation factors included in the request for proposals. RFSP NUMBER .CONTRACTOR AMOUNT 2829 McGriff, Seibels & Williams of Texas, Inc. $145,000 SECTION 2. That by the acceptance and approval of the above numbered items of the submitted proposals, the City accepts the offer of the persons submitting the proposals for such items and agrees to purchase the materials, equipment, supplies or services in accordance with the terms, specifications, standards, quantities and for the specified sums contained in the Proposal Invitations, Proposals, and related documents. SECTION 3. That should the City and person submitting approved and accepted items and of the submitted proposals wish to enter into a formal written agreement as a result of the acceptance, approval, and awarding of the proposals, the City Manager or his designated representative is hereby authorized to execute the written contract; provided that the written contract is in accordance with the terms, conditions, specifications, standards, quantities and specified sums contained in the Proposal and related documents herein approved and accepted. SECTION 4. That by acceptance and approval of the above numbered items of the submitted proposals, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved proposals or pursuant to a written contract made pursuant thereto as authorized herein. SECTION 5. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the c~ dayof ,,/ ,-,--~-~ ,2002. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY 4-ORD-RFSP 2829 McGB~'~; SEIBF. T~q & wrr .t .t ~M_80F'r.~/AS, INC. 5949 Sherry Lane, Suite 1300 · Dallas, TX 75225 · TEL - (469) 232-2100 · FAX - (469) 232-2101 June 13, 2003 Mr. Scott Payne Risk Manager City of Denton City Hall East 601 E. Hickory Denton, TX 76205 RE: Consultant Designation Dear Scott: McGriff, Seibels and Williams is pleased to extend the City of Denton's Consultant Agreement for your Employee Benefits programs. This agreement will be effective July 1, 2003 to July 1, 2005. As stated in our proposal, McGriff, Seibels and Williams' annual fee to the City of Denton will remain at $48,500, divided into four (4) quarterly installments of $12,125, for each plan period beginning July 1, 2003 to July 1, 2005. Your fee encompasses all services inthe "Scope of Services" section of the proposal. We thank you for choosing McGriff, Seibels and Williams and look forward to continue working with you through our "partnership approach." If you should have any questions regarding this information, please do not hesitate to call me at (469) 232-2168. Regards, Pre t~n o~myk~'~~ Vice President PP:Uc By signing below, both parties a~ree to the fees and services as stated above. l~ton Pomy'~al ~ S c~-t(P~ne I'/xp°~- Vice President · Risk Manager McGriff, Seibels and Williams of Texas, Inc. City of Denton PROPOSED SCOPE OF SERVICE Phase I Establish the Baseline > Per employee cost will be evaluated to determine each groups specific trend rate. ~ Current plan designs will be evaluated to determine their effectiveness. > Any existing carve-out plans will be evaluated to determine their effectiveness at controlling Cost through utilization management and contracting discounts. Existing networks will be evaluated if offer to determine they appropriate discounts and access. > Each groups employer / employee cost sharing will be evaluated based upon the total employee contribution. > Administrative procedures and plan design will be reviewed to identify inefficiencies. A status quo cost projection will be developed that will identify total plan costs. The cost projection will serve as a baseline for evaluating alternatives. Comprehensive review of existing Cafeteria plans. Comprehensive review of Prescription Drug programs. ~ McGriff, Seibels & Williams of Texas, Inc. Phase II IdentifyAIternatives > Alternatives to the current strategy; Alternatives to plan design; Alternatives in networks; Alternatives in Funding Methodology; Alternatives in Carve-Out programs; Benefit packaging strategies evaluated; Cost savings projections; Phase III Finalize Benefits Strategy Determine goals and objectives for plan costs, cash flow, risk tolerance, provider access, employee cost sharing, administration, quality of service and quality of care. Establish budget projections. Develop an implementation plan that meets the City of Denton's goals and objectives and is sensitive to the City of Denton's resources, both internal and external. Phase IV RFP and Vendor(s) Selection ;> Request and compile data for the RFP. > Custom RFP will be developed based on the City of Denton's strategy. M~ McGriff, Seibels & I~rdliams of Texas, Inc. > McGriff, Seibels and Williams and the City of Denton will select vendors to receive the RFP. McGriff, Seibels and Williams will facilitate the RFP process, including responding to vendors' questions and provide update information to bidders. All RFP responses will be reviewed and a comprehensive report will be delivered to the City of Denton that evaluates how well the proposing vendors meet the City of Denton's goals and objectives. Finalists selected jointly by McGriff, Seibels and Williams and the City of Denton. A finalists' process and final negotiation strategy will be developed that will include presentations, site visits, etc. Phase V Implementation Assistance Phase VI Servicing / Ongoing Monitoring ~'~ McGriff, Seibels & l/~r, lliams of Texas, Inc. TIMELINE .sw/ City of Dento, n MSW/ City of Denton Msw/ City of Denton ~sw/ City of Denton MSW MSW McOriff, Seibels & Williams of Texas, Inc. REQUIREMENTS OF THE CITY OF DENTON Help facilitate data collection including, but not limited to: Historical Claims Experience Current census demographics Utilization Reports Current Contribution Strategies Underwriting Assumptions / Renewal Letters Schedule of Rates, Fees, Attachment Points ~ McGriff, Seibels & W',lliams of Texas, Inc. FEES Under the McGriff, Seibels and Williams corporate culture, we do not want our clients to feel like they are on the clock each time they call our office. Therefore, our quarterly fee is designed to encompass all services in the proposal. Annual Fee $48,500 ($12,125 quarterly) ~ McGriff, Seibels & Williams of Texas, Inc.