HomeMy WebLinkAboutAgenda Statement 1987/02/17 Item 4 COUNCIL AGENDA STATEMENT
Item 4
Meeting Date 2/17/87
ITEM TITLE: Resolution v' %C7 ' Approving appointment of Broker of
Record for Long Term Disability (L.T.D. ) insurance
SUBMITTED BY: Director of Perso
REVIEWED BY: City Manager (4/5ths Vote: Yes No X )
In November 1986, the City issued a Request for Proposal (R.F.P. ) for a Broker
of Record for the City' s Long Term Disability (L.T.D. ) Insurance. A total of
twenty-three R.F.P. 's were mailed directly to brokerage firms that handle
L.T.D. insurance, eleven of which are located in Chula Vista. In addition, an
advertisement was placed in the Chula Vista Star-News on November 9 and 13,
1986, indicating the search for a Broker of Record.
A selection committee, consisting of the Risk Manager, Director of Finance,
and the Principal Management Assistant from the City Manager' s office reviewed
six proposals and interviewed four finalist candidates. The selection
committee recommends that the City Council appoint John Burnham and Company as
Broker of Record for L.T.D. insurance.
RECOMMENDATION: Adopt resolution approving appointment.
BOARDS & COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
The City provides L.T.D. coverage to employees represented by the Chula Vista
Employees Association (C.V.E.A. ), Western Council of Engineers (W.C.E. ) , and
employees in the Executive, Mid-Management and Unclassified groups. L.T.D.
coverage, currently purchased through Standard Insurance Co. , provides income
continuation to employees who become totally disabled. The benefit extends to
age 65, provided certain criteria are met. The original Broker of Record who
assisted in the purchase of L.T.D. in 1973 has since retired and has had
little or no involvement with the City for some years. Since Standard
Instrance Co. has a policy of only writing coverage through a Broker of
Record, it was decided to solicit proposals to find the best qualified
candidate to represent the City in purchasing and maintaining adequate L.T.D.
coverage.
Proposals were received from the following firms:
R.K.C. & Co.
Robert F. Driver Co. , Inc.
John Burnham & Co.
Barney & Barney
Richard A. Mills Co. , Inc.
California Benefits
Page 2, Item 4
Meeting Date 2/17/87
Criteria used in evaluating the proposals included: proposal content and
responsiveness to the R.F.P. , office location, number and experience of
support staff, municipal experience, experience with groups of more than 150
lives, and the experience of the principal . During the initial proposal
screening, California Benefits and Richard A. Mills Co. , Inc. were dropped
from further consideration due to lack of experience with municipalities.
The remaining four firms were interviewed by the selection committee and
reference checks were conducted. Evaluation criteria during this phase of the
selection included the technical skills and knowledge of the principals, their
education and experience, oral communication skills, ability to meet
deadlines, and general dependability. After careful consideration, the
selection committee' s recommendation is to appoint John Burnham and Co. as
Broker of Record for L.T.D.
John Burnham and Co. is represented by Bradley Orr and Joyce LaCarte who have
combined benefits experience of more than 22 years. They have a number of
municipal and special district clients who they represent in the purchase of
various benefits, including L.T.D. The reference checks revealed that the
clients of Mr. Orr and Ms. LaCarte regard the team as highly competent, very
service oriented and particularly helpful in the resolution of individual
employee problems with insurance companies. In addition, they have a high
level of technical expertise in the area of L.T.D. benefits. In short, the
selection committee felt that John Burnham and Co. represented what the City
is looking for in a broker of Record for L.T.D. For this reason, the
selection committee recommends their appointment.
FISCAL IMPACT: None.
WPC 0618K
7 by the City Council of
Chula Vista, California
Dated /7-e 7