It is recommended that the Mayor and City Commission approve the Resolution authorizing the Administration to simultaneously negotiate with Arthur J. Gallagher Risk Management Services, LLC, and McGriff Insurance Services, LLC, the tied top-ranked proposers; authorizing the Interim City Manager to select the final proposer deemed by the City Manager to offer the best overall terms and service to the City; and further, authorizing the Interim City Manager and the City Clerk to execute a final Agreement upon successful negotiations by the Administration.

This solicitation is under the cone of silence.

An Insurance Broker of Record (IBOR) is a contractual arrangement that designates a specific insurance broker as the official representative for an organization when dealing with insurance matters. A broker of record assists clients with quotes, policies and notices, and negotiates all of these with underwriters, on behalf of the client. Insurance brokers play a crucial role in helping clients navigate the complexities of the insurance industry.

On August 12, 2019, the City entered into an Agreement with McGriff, Seibels & Williams, Inc., pursuant to Request for Proposals No. 2019-048-WG for insurance broker of record. The initial term of the Agreement was for three (3) years, with two (2) one-year renewal periods. The Agreement is scheduled to expire on August 11, 2024. Considering the Agreement’s expiration, the City sought statements of qualifications from insurance brokers to provide insurance brokerage services.

On December 13, 2023, the Mayor and City Commission approved the issuance of RFQ No. 2024-033-WG for an Insurance Broker of Record. The RFQ was released on December 15, 2023, and a voluntary pre-proposal meeting was held on January 8, 2024. Four (4) addenda were issued, and 40 prospective bidders accessed the solicitation. RFQ responses were due and received on March 1, 2024. The City received six (6) proposals from the following firms:

·         Alliant Insurance Services, Inc.

·         Arthur J. Gallagher Risk Management Services, LLC

·         Foundation Risk Partners Public Entity Services

·         RSC Insurance Brokerage, Inc., including its division Gehring Group

·         McGriff Insurance Services, LLC

·         Willis Towers Watson Southeast, Inc.

On March 26, 2024, the Evaluation Committee, appointed by the City Manager via Letter to Commission No. 001-2024, convened to consider the proposals received. The Committee was comprised of Marvin Adams, Benefits Manager, Human Resources Department; Marc Chevalier, Risk Manager, Human Resources Department; Amy Knowles, Director, Environment and Sustainability Department; Elizabeth Miro, Acting Director, Facilities and Fleet Management Department; and Ann Marie Sharpe, Risk Manager, City of Miami.

The Committee was provided with an overview of the project and information relative to the City's Cone of Silence Ordinance and the Government Sunshine Law. The Committee was also provided with general information on the scope of services and a copy of each proposal. The Committee was instructed to score and rank each proposal pursuant to the evaluation criteria established in the RFQ. The results of the Evaluation Committee process are detailed in Attachment A and resulted in the following rankings:

1^st ranked – Arthur J. Gallagher Risk Management Services, LLC

1^st ranked – McGriff Insurance Services, LLC

3^rd ranked – Foundation Risk Partners Public Entity Services

4^th ranked – Alliant Insurance Services, Inc.

5^th ranked – Willis Towers Watson Southeast Inc.

6^th ranked – RSC Insurance Brokerage, Inc., including its division Gehring Group

The Evaluation Committee deemed Arthur J. Gallagher Risk Management Services, LLC, and McGriff Insurance Services, LLC, as the tied top-ranked proposers; both firms offered the most compelling combination of experience, technology, and services and have institutional knowledge as the City’s prior IBORs. Both firms have provided services to the City in the past and have performed well. The Evaluation Committee noted that the leadership team proposed by Arthur J. Gallagher Risk Management Services, LLC, had impressive qualifications and experience not only with the City of Miami Beach but also across similar coastal municipalities in Southeast Florida.   Particularly noteworthy was their Resort Tax Stabilization program, which holds significant importance for Miami Beach, along with their comprehensive training module offerings. Similarly, McGriff Insurance Services, LLC, demonstrated extensive experience in coastal municipal affairs. Their collaboration with City staff resulted in notable reductions in property insurance costs. The Evaluation Committee also recognized the value of McGriff's training modules, which were deemed beneficial for the city's needs.

The Gallagher Florida Public Entity team includes 40 dedicated full-time public sector members with more than 1,000 years of combined experience who manage over 200 public entities, including 26 Florida public entities with insurable values over $1B. Furthermore, Gallagher’s Florida market leverage, with over $1.2B in property and casualty premiums placed, provides the City with a unique advantage and negotiating leverage.

The Gallagher team was previously awarded as the City’s broker. They are qualified to provide the broad array of services outlined in this RFQ, as their team partnered with the City of Miami Beach for the delivery of these exact services from 2014 to 2019. Some of their current clients include Miami-Dade County, Broward County, and Duval County Public Schools.   All references provided positive feedback.

Founded in 1886, McGriff, Seibels & Williams, Inc. (McGriff) is one of the leading risk consulting and insurance brokerage firms in the country. In 2004, McGriff joined the BB&T, now Truist family of companies. With an industry-wide reputation for technical expertise and creative solutions, McGriff has tripled its revenue over the last ten years. According to the insurance industry’s annual “Best Practices Study,” McGriff has been one of the highest-performing insurance sales organizations in the country.

McGriff Insurance Services, LLC, has served as the City’s incumbent Broker of Record since 2019. Some of their other clients include the City of Houston, the City of Tampa, and the Port of Houston Authority. All references provided positive feedback.

The Human Resources Department has allocated an estimated $119,000.00 for these services annually.  Fees will be established through the negotiation process. Services pursuant to the award of this RFQ shall be subject to successful negotiations and the availability of funds approved through the City's budgeting process.

540-1790-000312    $119,000.00

Based on the foregoing, the Administration recommends that the Mayor and City Commission approve the Resolution authorizing the Administration to simultaneously negotiate with Arthur J. Gallagher Risk Management Services, LLC, and McGriff Insurance Services, LLC, the tied top-ranked proposers; authorizing the City Manager to select the final proposer deemed by the Interim City Manager to offer the best overall terms and service to the City; and further, authorizing the Interim City Manager and the City Clerk to execute a final Agreement upon successful negotiations by the Administration.

LOBBYIST DISCLOSURE

In accordance with Resolution No. 2023-32857, adopted by the City Commission on December 13, 2023, the following information has been provided by the Administration.

1.    Was the Agenda Item initially requested by a lobbyist, which, as defined in code Sec. 2-481, includes a principal engaged in lobbying? No.

2.     If so, specify name of lobbyist(s) and principals(s): Not applicable