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Agenda 12/13/2011 Item #16E 312/13/2011 Item 16.E.3. EXECUTIVE SUMMARY Recommendation to award a contract for RFP #11 -5689, "Property and Casualty Brokerage and Insurance Services," to Insurance and Risk Management Services Inc. (IRMS) in an estimated annual amount of $125,000 per year, a reduction of $63,375. OBJECTIVE: To seek Board approval to award a contract for RFP #11 -5689, Property and Casualty Brokerage Services, to Insurance and Risk Management Services, Inc. CONSIDERATION: Pursuant to Section 626.112, Florida Statutes, property and casualty insurance coverage must be placed through a licensed broker or agent. Since October 1, 1992, the Board of Commissioners has utilized a contracted fee arrangement for property and casualty insurance brokerage services. This method contrasts with a traditional compensation arrangement where the broker is compensated on a commission basis. Rather, insurance coverage is provided on a "net of commission" basis and a flat fee is paid to the broker. This arrangement results in a more comprehensive scope of services at a lower program cost. It also promotes transparency; reduces the potential for conflicts of interest; and promotes best value. The current contract with Insurance and Risk Management Services, Inc. is set to expire on December 31, 2011. The scope of services for this program includes the marketing, analysis, recommendation and placement of insurance programs for the County's property, liability and workers' compensation programs. The scope of services also includes the selection of ancillary services such as the selection of third party adjusting services. In July, 2011, the Purchasing Department released an RFP for brokerage services to assure the continuation of services after the current contract expiration. RFP #11 -5689 was posted on July 20, 2011. Ninety notices were sent out and four proposals were received by the due date of August 16, 2011. The proposing firms were: • Willis of Florida • IRMS • Arthur J. Gallagher • Ben Few & Company The Selection Committee declared Ben Few & Company, Inc. to be non - responsive since it is purely a consultant and cannot place insurance policies. Thus, they did not fulfill the minimum requirements of the RFP. The other three firms were determined to be responsive by the Selection Committee. The Selection Committee completed its initial scoring and reduced the three proposers to two for the purpose of completing presentations /interviews. The shortlisted firms were Willis of Florida and IRMS. On October 17'h, the Selection Committee heard presentations from both firms' key service personnel. General questions to both firms and specific questions unique to each firm were pursued during the interview process. The Selection Committee completed its final scoring and IRMS was selected by consensus as the number one ranked firm. Under a traditional commission arrangement, the County would have paid commissions to the broker of approximately $477,000 annually. IRMS proposed a flat fee of $125,000 annually. Under this flat fee arrangement, all Property & Casualty insurance policies, with the exception of Flood will be Packet Page -2913- 12/13/2011 Item 16.E.3. placed on a "net of commission" basis saving the county substantial commission fees over the life of the agreement. Flood insurance policies are placed through the National Flood Insurance Program. These policies are not permitted to be written net of commission. Therefore, the flat fee referenced above does not include the commission IRMS would normally receive on flood insurance policies. However, IRMS is allowed to remit a portion of their commission back to the County pursuant to Florida Statute 626.572. The current commission rate on flood insurance policies is 21 %. IRMS has agreed as part of the award to reduce their remuneration on Flood to 8.5% by remitting this difference back to the County. Based upon current flood commissions received by IRMS, it is estimated that the County will realize additional savings of $23,000 annually through this arrangement. The RFP specifically separated Aircraft and Airport insurance brokerage from this award due to the specialized nature of this coverage. Specialty aircraft/airport insurance is typically placed by aircraft brokers. Therefore, staff is recommending that the current broker, Nation Air insurance Agency be utilized directly for the placement of this coverage. This arrangement will not add any additional cost to the program. The approvals to purchase insurance coverage are presented under separate Executive Summaries prior to the October 1 and April 1 renewal deadlines. FISCAL IMPACT: The flat fee under the expiring contract is $165,375. The estimated annual cost of the new contract is $125,000. Total savings compared to the expiring contract, including the reduced remuneration on Flood, is $63,375. Sufficient funds are budgeted in Fund 516, Property and Casualty Insurance, and Fund 518, Workers Compensation Insurance, for this purpose. GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this item. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney's Office, requires majority vote, and is legally sufficient for Board action. — CMG RECOMMENDATION: That the Board approves the award of a contract for RFP# 11 -5689 to Insurance and Risk Management Services, Inc. for Property and Casualty Insurance Brokerage Services and authorizes the Chairman to execute the contract after review and approval by the County Attorney. PREPARED BY: Ray Carter, Manager, Risk Finance Jeff Walker, CPCU, ARM, Director, Risk Management Packet Page -2914- 12/13/2011 Item 16.E.3. COLLIER COUNTY Board of County Commissioners Item Number: 16.E.3. Item Summary: Recommendation to award a contract for RFP -11 -5689 Property and Casualty Brokerage and Insurance Services to Insurance and Risk Management Services Inc. (IRMS) in an estimated annual amount of $125,000 per year, a reduction of $63,375. Meeting Date: 12/13/2011 Prepared By Name: WalkerJeff Title: Director - Risk Management,Risk Management 11/8/2011 10:10:22 AM Submitted by Title: Director - Risk Management,Risk Management Name: WalkerJeff 11/8/2011 10:10:23 AM Approved By Name: SmithKristen Title: Administrative Secretary,Risk Management Date: 11/10/20113:16:52 PM Name: WoodLyn Title: Contracts Specialist,Purchasing & General Services Date: 11/10/20113:22:43 PM Name: CarnellSteve Title: Director - Purchasing/General Services,Purchasing Date: 11/15/2011 11:36:51 AM Name: GreeneColleen Title: Assistant County Attomey,County Attorney Date: 11/23/2011 10:58:56 AM Packet Page -2915- Name: PriceLen Title: Administrator - Administrative Services, Date: 11/30/2011 11:14:04 AM Name: KlatzkowJeff Title: County Attorney, Date: 12/1/20119:37:03 AM Name: FinnEd Date: 12/1/20113:24:19 PM Name: OchsLeo Title: County Manager Date: 12/2/2011 10:13:54 AM Packet Page -2916- 12/13/2011 Item 16.E.3. for Brokerage and Insurance Coverage THIS AGREEMENT, made and entered into on this day of 2011, by and between Insurance and Risk Management Services, Inc., authorized to do business in the State of Florida, whose business address is 8950 Fontana Del Sol Way, Suite 200, Naples, Florida 34109, hereinafter called the "Consultant" and Collier County, a political subdivision of the State of Florida, Collier County, Naples, hereinafter called the "County ": WITNESSETH: 1.. COMMENCEMENT. The Consultant shall commence the work on January 1, 2012. The contract shall be for a three (3) year period, commencing on January 1, 2012, and terminating on December 31, 2014. The County may, at its discretion and with the consent of the Consultant, renew the Agreement under all of the terms and conditions contained in this Agreement for two (2) additional one (1) year periods. The County shall give the Consultant written notice of the County's intention to extend the Agreement term not less than ten (10) days prior to the end of the Agreement term then in effect. 2. STATEMENT OF WORK. The Consultant shall provide insurance brokerage services in accordance with the Scope of Work, and terms and conditions of RFP #11 -5689 and the Consultant's proposal referred to herein and made an integral part of this agreement. This Agreement contains the entire understanding between the parties and any modifications to this Agreement shall be mutually agreed upon in writing by the Consultant and the County Project or Contract Manager in compliance with the County Purchasing Policy and Administrative Procedures in effect at the time such services are authorized. 3. COMPENSATION: The County shall pay the Consultant for the performance of this Agreement pursuant to the fees as set forth in Exhibit "A ", included in this agreement, together with the Travel and Reimbursable Expenses as defined in this agreement. Payments shall be made to the Consultant not more frequently than once per month, pursuant to Exhibit "A" and at actual costs for Travel Expenses. Payment will be made upon receipt of a proper invoice and in compliance with Chapter 218 Fla. Stats., otherwise known as the "Local Government Prompt Payment Act ". 3.1 Payments will be made for services furnished, delivered, and accepted, upon receipt and approval of invoices submitted on the date of services or within six (6) Page 1 of 9 Packet Page -2917- 12/13/2011 Item 16.E.3. months after completion of contract. Any untimely submission of invoices beyond the specified deadline period is subject to non - payment under the legal doctrine of "laches" as untimely submitted. Time shall be deemed of the essence with respect to the timely submission of invoices under this agreement. TRAVEL AND REIMBURSABLE EXPENSES Travel and Reimbursable Expenses shall be reimbursed as per Section 112.061 Fla. Stats. Reimbursements shall be at the following rates: Mileage $0.445 per mile Breakfast $6.00 Lunch $11.00 Dinner $19.00 Airfare Actual ticket cost limited to tourist or coach class fare Rental car Actual rental cost limited to compact or standard -size vehicles Lodging Actual cost of lodging at single occupancy rate with a cap of no more than $150.00 per night Parking Actual cost of parking Taxi or Airport Limousine Actual cost of either taxi or airport limousine Reimbursable items other than travel expenses shall be limited to the following: telephone long- distance charges, fax charges, photocopying charges and postage. Reimbursable items will be paid only after Consultant has provided all receipts. Consultant shall be responsible for all other costs and expenses associated with activities and solicitations undertaken pursuant to this Agreement. 4. SALES TAX. Consultant shall pay all sales, consumer, use and other similar taxes associated with the Work or portions thereof, which are applicable during the performance of the Work. 5. NOTICES. All notices from the County to the Consultant shall be deemed duly served if mailed or faxed to the Consultant at the following Address: Insurance and Risk Management Services, Inc. 8950 Fontana Del Sol Way, Suite 200 Naples, Florida 34109 Attention: William H. Kuhlman, Executive Vice President Telephone: 239 -649 -1444 Facsimile: 239 - 649 -7933 Page 2 of 9 Packet Page -2918- 12/13/2011 Item 16.E.3. All Notices from the Consultant to the County shall be deemed duly served if mailed or faxed to the County to: Collier County Government Center Purchasing Department 3327 Tamiami Trail, East Naples, Florida 34112 Attention: Steve Carnell, Purchasing/ GS Director Telephone: 239 - 252 -8371 Facsimile: 239 - 252 -6584 The Consultant and the County may change the above mailing address and/or contact information at any time upon giving the other party written notification. All notices under this Agreement must be in writing. 6. NO PARTNERSHIP. Nothing herein contained shall create or be construed as creating a partnership between the County and the Consultant or to constitute the Consultant as an agent of the County. 7. PERMITS: LICENSES: TAXES. In compliance with Section 218.80, F.S., all permits necessary for the prosecution of the Work shall be obtained by the Consultant. Payment for all such permits issued by the County shall be processed internally by the County. All non - County permits necessary for the prosecution of the Work shall be procured and paid for by the Consultant. The Consultant shall also be solely responsible for payment of any and all taxes levied on the Consultant. In addition, the Consultant shall comply with all rules, regulations and laws of Collier County, the State of Florida, or the U. S. Government now in force or hereafter adopted. The Consultant agrees to comply with all laws governing the responsibility of an employer with respect to persons employed by the Consultant. 8. NO IMPROPER USE. The Consultant will not use, nor suffer or permit any person to use in any manner whatsoever, County facilities for any improper, immoral or offensive purpose, or for any purpose in violation of any federal, state, county or municipal ordinance, rule, order or regulation, or of any governmental rule or regulation now in effect or hereafter enacted or adopted. In the event of such violation by the Consultant or if the County or its authorized representative shall deem any conduct on the part of the Consultant to be objectionable .or improper, the County shall have the right to suspend the contract of the Consultant. Should the Consultant fail to correct any such violation, conduct, or practice to the satisfaction of the County within twenty -four (24) Page 3 of 9 Packet Page -2919- 12/13/2011 Item 16.E,3. hours after receiving notice of such violation, conduct, or practice, such suspension to continue until the violation is cured. The Consultant further agrees not to commence operation during the suspension period until the violation has been corrected to the satisfaction of the County. 9. TERMINATION. Should the Consultant be found to have failed to perform his services in a manner satisfactory to the County as per this Agreement, the County may terminate said agreement for cause; further the County may terminate this Agreement for convenience with a thirty (30) day written notice. The County shall be sole judge of non - performance. 10. NO DISCRIMINATION. The Consultant agrees that there shall be no discrimination as to race, sex, color, creed or national origin. 11. INSURANCE. The Consultant shall provide insurance as follows: A. Commercial General Liability: Coverage shall have minimum limits of $1,000,000 Per Occurrence, Combined Single Limit for Bodily Injury Liability and Property Damage Liability. This shall include Premises and Operations; Independent Consultants; Products and Completed Operations and Contractual Liability. B. Business Auto Liability: Coverage shall have minimum limits of $1,000,000 Per Occurrence, Combined Single Limit for Bodily Injury Liability and Property Damage Liability. This shall include: Owned Vehicles, Hired and Non -Owned Vehicles and Employee Non - Ownership. C. Workers' Compensation: Insurance covering all employees meeting Statutory Limits in compliance with the applicable state and federal laws. D. Professional Liability: Coverage shall have minimum limits of $1,000,000 Per Occurrence. Special Requirements: Collier County Government shall be listed as the Certificate Holder and included as an Additional Insured on the Comprehensive General Liability Policy. Current, valid insurance policies meeting the requirement herein identified shall be maintained by Consultant during the duration of this Agreement. Renewal certificates shall be sent to the County ten (10) days prior to any expiration date. There shall be a thirty (30) day notification to the County in the event of cancellation or modification of any stipulated insurance coverage. Consultant shall insure that all subConsultants comply with the same insurance requirements that he is required to meet. The same Consultant shall provide County with certificates of insurance meeting the required insurance provisions. Page 4 of 9 Packet Page -2920- 12/13/2011 Item 16.E.3. 12. INDEMNIFICATION. To the maximum extent permitted by Florida law, the Consultant shall indemnify and hold harmless Collier County, its officers and employees from any and all liabilities, damages, losses and costs, including, but not limited to, reasonable attorneys' fees and paralegals' fees, to the extent caused by the negligence, recklessness, or intentionally wrongful conduct of the Consultant or anyone employed or utilized by the Consultant in the performance of this Agreement. This indemnification obligation shall not be construed to negate, abridge or reduce any other rights or remedies which otherwise may be available to an indemnified party or person described in this paragraph. This section does not pertain to any incident arising from the sole negligence of Collier County. 13. CONTRACT ADMINISTRATION. This Agreement shall be administered on behalf of the County by the Risk Management Department. 14. CONFLICT OF INTEREST: Consultant represents that it presently has no interest and shall acquire no interest, either direct or indirect, which would conflict in any manner with the performance of services required hereunder. Consultant further represents that no persons having any such interest shall be employed to perform those services. 15. COMPONENT PARTS OF THIS CONTRACT. This Contract consists of the attached component parts, all of which are as fully a part of the contract as if herein set out verbatim: Consultant's Proposal, Insurance Certificate, RFP #11 -5689 Specifications/ Scope of Services and Addenda. 16. SUBJECT TO APPROPRIATION. It is further understood and agreed by and between the parties herein that this agreement is subject to appropriation by the Board of County Commissioners. 17. PROHIBITION OF GIFTS TO COUNTY EMPLOYEES. No organization or individual shall offer or give, either directly or indirectly, any favor, gift, loan, fee, service or other item of value to any County employee, as set forth in Chapter 112, Part III, Florida Statutes, Collier County Ethics Ordinance No. 2004 -05, and County Administrative Procedure 5311. Violation of this provision may result in one or more of the following consequences: a. Prohibition by the individual, firm, and/or any employee of the firm from contact with County staff for a specified period of time; b. Prohibition by the individual and/or firm from doing business with the County for a specified period of time, including but not limited to: submitting bids, RFP, and /or quotes; and, c. immediate termination of any contract held by the individual and/or firm for cause. 18. IMMIGRATION LAW COMPLIANCE. By executing and entering into this agreement, the Consultant is formally acknowledging without exception or stipulation that it is fully responsible for complying with the provisions -of the Immigration Reform and Control Act of 1986 as located at 8 U.S.C. 1324, et seq. and regulations relating thereto, Page 5 of 9 Packet Page -2921- 12/13/2011 Item 16.E.3. as either may be amended. Failure by the Consultant to comply with the laws referenced herein shall constitute a breach of this agreement and the County shall have the discretion to unilaterally terminate this agreement immediately. 19. OFFER EXTENDED TO OTHER GOVERNMENTAL ENTITIES. Collier County encourages and agrees to the successful proposer extending the pricing, terms and conditions of this solicitation or resultant contract to other governmental entities at the discretion of the successful proposer. 20. AGREEMENT TERMS. If any portion of this Agreement is held to be void, invalid, or otherwise unenforceable, in whole or in part, the remaining portion of this Agreement shall remain in effect. 21. ADDITIONAL ITEMS /SERVICES. Additional items and/or services may be added to this contract upon satisfactory negotiation of price by the Project or Contract Manager and Consultant. 22. DISPUTE RESOLUTION. Prior to the initiation of any action or proceeding permitted by this Agreement to resolve disputes between the parties, the parties shall make a good faith effort to resolve any such disputes by negotiation. The negotiation shall be attended by representatives of Consultant with full decision - making authority and by County's staff person who would make the presentation of any settlement reached during negotiations to County for approval. Failing resolution, and prior to the commencement of depositions in any litigation between the parties arising out of this Agreement, the parties shall attempt to resolve the dispute through Mediation before an agreed -upon Circuit Court Mediator certified by the State of Florida. The mediation shall be attended by representatives of Consultant with full decision - making authority and by County's staff person who would make the presentation of any settlement reached at mediation to County's board for approval. Should either party fail to submit to mediation as required hereunder, the other party may obtain a court order requiring mediation under section 44.102, Fla. Stat. Any suit or action brought by either party to this Agreement against the other party relating to or arising out of this Agreement must be brought in the appropriate federal or state courts in Collier County, Florida, which courts have sole and exclusive jurisdiction on all such matters. 23. KEY PERSONNEL/PROJECT STAFFING: The Consultant's personnel and management to be utilized for this project shall be knowledgeable in their areas of expertise. The County reserves the right to perform investigations as may be deemed necessary to insure that competent persons will be utilized in the performance of the contract. The Consultant shall assign as many people as necessary to complete the project on a timely basis, and each person assigned shall be available for an amount of time adequate to meet the dates set forth in the Project Schedule. The Consultant shall not change Key Personnel unless the following conditions are met: (1) Proposed replacements have substantially the same or better qualifications and/or experience. (2) that the County is notified in writing as far in advance as possible. The Consultant shall Page 6 of 9 Packet Page 72922- 12/13/2011 Item 16.E.3. make commercially reasonable efforts to notify Collier County within seven (7) days of the change. The County retains final approval of proposed replacement personnel. Page 7 of 9 Packet Page -2923- 12/13/2011 Item 16.E.3. IN WITNESS WHEREOF, the Consultant and the County, have each, respectively, by an authorized person or agent, hereunder set their hands and seals on the date and year first above written. ATTEST: Dwight E. Brock, Clerk of Courts By: Dated: (SEAL) First Witness TType/ print witness nameT Second Witness TType /print witness nameT BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY, FLORIDA By: Fred W. Coyle, Chairman Insurance and Risk Management Services, Inc. Approved as to form and legal sufficiency: f Assistant County Attorney Print Name Page 8 of 9 Consultant Signature Typed signature and title Packet Page -2924- Agreement No. 11 -5689 "Property Casualty Insurance Broker" 12/13/2011 Item 16.E.3. Month 01/01/2012 to 12/31/2014 January $10,500 February $10,500 March $10,500 April $10,500 May $10,500 June $10,500 Jul $10,500 August $10,500 September $10,500 October $10,500 November $10,500 December $9,500 Totals $125,000 In accordance with Florida Statutes 626.572, the Consultant shall be permitted to accept a reduced commission to be no greater than eight and one -half percent (8.5 %) on all National Flood Insurance policies placed on behalf of the County and the acceptance of these commissions shall not be considered a violation of this agreement. This shall include all National Flood Insurance policies with the commencement dates prior to and subsequent to the effective date of this agreement. Builders Risk Policies - the cost to handle this line of coverage is included. Page 9 of 9 Packet Page -2925- 12/13/2011 Item 16.E.3. TABULATION FOR RFP # 11 -5689 "Brokerage and Insurance Services" DATE OF RfP ADVERTISEMENT: July' 20,2011 RF P DUE: August 16, 2011 NO. OF INQUIRIES SENT: 90; 23 VENDORS REQUESTED FULL PACKAGE: +++�f 1+�. 1 1 i +--i-4-++4-+1-4-i-+-i-= -++++++4-+++++-i-++++I 1 i !+++++i i + ++++ !+++ Pronoser City qtAtt-. ()ricyinpl --F- ('nn;PC Arthur J Gallagher Risk Management Services Naples, FL X Yes ❑ No Willis of Florida Tampa, FL X Yes No Insurance and Risk Management Services (IRMS) Naples, FL X Yes ❑ No Ben Few & Company Inc. Fort Myers, FL X Yes No Yes No Yes 7 No Yes No Yes No Yes No _#t Yes No Packet Page -2926- C=v *aer cry Adirrinistatim sefv=s D iNnimn Purchasing Proposers Citv 12/13/2011 Item 16.E.3. Summary of Proposers state Master # of # of CD ' - -' - - - -- Copy Copies Copies 3 { 0 P, t Jv ..�.... q r � k A +l• - lz Opened By: Witnessed by: r- Date: Packet Page -2927- 12/13/2011 Item 16.E.3. Purchasing Preliminar Screening Sheet RFP M Title: Packet Page -2928- _ s•.kF p �. 3 E fir t i�{, %m�A#�..NS, t k�� B rx, t 9 F. Packet Page -2928- 12/13/2011 Item 16.E.3. Packet Page -2929- 12/13/2011 Item 16.E.3. 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