HomeMy Public PortalAbout18-9505 Professional Service Agreement w/Saponzik Insurance Sponsored by: City Manager
RESOLUTION NO. 18-9505
A RESOLUTION OF THE CITY COMMISSION OF THE CITY
OF OPA-LOCKA, FLORIDA, AUTHORIZING A RENEWAL OF
THE PROFESSIONAL SERVICES AGREEMENT WITH
SAPOZNIK INSURANCE & ASSOCIATES, INC, PROVIDING
AGENT OF RECORD INSURANCE SERVICES FOR THE CITY
OF OPA-LOCKA'S EMPLOYEES BENEFIT PLANS;
PROVIDING FOR INCORPORATION OF RECITALS;
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the City of Opa-locka ("City"), via Resolution 15-9020, approved the
selection of Sapoznik Insurance & Associates, Inc. to provide Agent of Record Insurance
Services for the City's Employee Benefit Plans pursuant to Request for Proposals 15-
0106100; and
WHEREAS, Section 2-320(k) of the City's Code of Ordinances states:
Renewal of a contract for contractual services shall be in writing
and shall be subject to the same terms and conditions set forth in
the initial contract. The cost of any contemplated renewals shall
be included in the invitation to bid or request for proposals.
Renewals are to be done on a yearly basis, and contracts shall not
be renewed for more than two (2) years unless
competitively procured. Renewals shall be contingent upon
satisfactory performance evaluations by the city manager; and
WHEREAS, the City entered onto a contract with Sapoznik Insurance &
Associates, Inc. on July 9, 2015, for a three-year term, which includes a clause
permitting one-year renewals at the original five percent (5%) commission rate;
and
WHEREAS, the City Commission finds that it is in the best interest of the City to
approve a renewal of the Agreement with Sapoznik Insurance & Associates, Inc. to provide
Agent of Record Insurance Services for the City's Employee Benefit Plans; and
NOW THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF
THE CITY OF OPA-LOCKA, FLORIDA:
Section 1. RECITALS ADOPTED.
The recitals to the preamble herein are incorporated by reference.
Section 2. AUTHORIZATION
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City of•\Opa-Locka
Agenda Cover Memo
Department Kierra Ward, MBA Department _ _�1
Director: Director Signature: VP
Budget Ernesto Reyes Budget
Administrator: Administrator/ACM --`—"'
Signature:
Finance Bryan Hamilton FD Signature:
Director: Department ! ∎ /
City Manager: Newall J. Daughtrey Signature: , k,i �
ACM Si nature: WW
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Commission 06/27/2018 Item Type: Resolution I rdin. 1 e 0 7 r
Meeting Date: X
(EnterX in box)
Fiscal Impact: Ordinance Reading: in Reading 2nd Reading
(Enter X in box) Yes No (Enter X in box)
x Public Hearing: Yes No Yes No
(Enter X in box) X X
Funding (Enter Fund& Advertising Requirement: Yes No
Dept) (Enter X in box) x
Source:
Ex:
Account#:
Contract/P.O. Yes No RFP/RFQ/Bid#:
Required: x
(Enter X in box)
Strategic Plan Yes No Strategic Plan Priority Area: Strategic Plan Obj./Strategy:
Related x Enhance Organizational El (list the specific objective/strategy this
(EnterX in box) Bus.&Economic Dev 0 item will address)
Public Safety 0
Quality of Education 0
Qual.of Life&City Image
Communication 0
Sponsor Name City Manager Department: City Manager
Short Title:
Authorizing the City Manager to enter into a contract with Sapoznik insurance and Associates
Staff Summary:
It is in the best interest of the City to extent the expiring contract with Sapoznik Insurance and Associates for a 1
year term in an effort to continue to provide affordable and quality in4urance and benefit plans to City
employees.
Proposed Action:
Staff recommends approval.
Attachment: (memorandum and current contract)
,OP p-LOCk-„
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oA"oRa Cit y of Opa-locka
Kierra Ward Office: 305-953-2815
Human Resources Director Email: kward @opalockafl.gov
MEMORANDUM
To: Newall Daughtrey, Acting- City Manager
From: Kierra Ward, Human Resources Director'i%:jo
Re: Agent of Records Contract
Date: May 22, 2018
The City of Opa-locka entered into a Professional Services Agreement with Sapoznik
Insurance & Associates, Inc on July 9, 2015. The Contract expires this year and I am
recommending that the City extend the agreement based on Article III- Term clause in the
contract that allows the City the option to renew for three (3) additional one-year renewal
intervals if both Parties agree in writing.
Sapoznik has offered exceptional service to the City and has assisted by investing in the
Health, Education, and Wellness of our employees on a regular basis. The City of Opa-Locka
has saved $270,000.00 over the past 3 years with Sapoznik as the Agent of Records, and is
now receiving quotes from carriers that historically denied providing insurance quotes due to
history of the City's claims' experience.
2. This year the City of Opa-Locka received quotes from two carries that would not quote in
the past due to being uncompetitive. This impact shows future bid competitiveness in the
Market.
Please see highlights listed below of the impact that Sapoznik had on the Benefits and
Services to the City:
2015
Sapoznik negotiated and reduced a proposed annual 36% renewal increase by the Medical
Insurance Provider to 5%. This presented a savings of$170,000.00 annually. In addition to
the reduction, Sapoznik was able to enhance the benefit plans and options offered to City
Human Resources Department•780 Fisherman Street 4th floor,Opa-locka, FL 33054•(305)953-2815
employees.
2016
Sapoznik negotiated the annual renewal rate increase of 4%. Historically the City never
received a single digit increase, presenting an annual savings of$60,000.00. They also
sponsored several educational seminars to educate the employees on wellness and proper
utilization of the insurance plans.
2017
Sapoznik negotiated the annual rate increase down to 2.5%, resulting in an annual savings of
$40,000.00.
It is now time to begin making preparations for the 18-19 Benefits Year and Annual Open
enrollment. Please advise if you are willing to enter into a 1 year agreement/renewal with
Sapoznik Insurance & Associates. See current Professional Services Agreement Attached.
Human Resources Department•780 Fisherman Street 4th floor,Opa-locka, FL 33054•(305)953-2815
CITY OF OPA-LOCKA
AGENT OF RECORD
PROFESSIONAL SERVICES AGREEMENT
THIS PROFESSIONAL SERVICES AGREEMENT("Agreement")is entered
into this 9TH day ofJuly , 2015 between the City of Opa-Locka, a Florida
municipal corporation, located at 3400 NW135st St., Opa-Locka, FL 3305 ("City"),
and Sapoznik Insurance & Associates, Inc., a Florida for-profit corporation with a
principal business address of 1100 NE 163 Street,2d Floor,North Miami Beach, FL
33162 ("Contractor"). The City and Contractor shall collectively be referred to as the
"Parties".
RECITALS
WHEREAS, the City desires to retain an experienced, licensed and insured agent
to provide Agent of Record insurance services for the City's employee benefits plans
("Services"), in accordance with the terms, conditions and specifications contained in the
City's Request for Broker Services, RFP NO.15-0106100, Agent of Record Services for
City's Employee Benefits Plans("RFP");and
WHEREAS,the Contractor has expressed the capability and willingness to perform the
Services as described in the RFP;and
WHEREAS, on July 8, 2015 Resolution No. 15-'O act was passed and adopted
by the City Commission, approving the selection of Contractor and further
authorizing the City Manager to negotiate and execute an agreement for provision of
Services("Resolution").
NOW, THEREFORE, in consideration of the mutual terms and conditions set
forth herein and other good and valuable consideration, the Parties hereto agree as
follows:
CITY OF OPA-LOCKA
AGENT OF RECORD
PROFESSIONAL SERVICES AGREEMENT
ARTICLE I -RECITALS
1.1 The recitals are true and correct and are hereby incorporated into and made a part
of this Agreement.
ARTICLE II-CONTRACT DOCUMENTS
2.1 The following documents are incorporated into and made a part of this Agreement
(collectively referred to as the "Contract Documents"):
a)The RFP, including all amendments and/or addendums;
b)Contractors response to the RFP("Qualifications");and
c) Any additional documents which are required to be submitted under the RFP for the
provision of Services.
2.2 In the event of any conflict between the Contract Documents or any ambiguity or
missing specification or instruction, the following priority is hereby established:
a)Specific written direction from the City Manager or City Manager's designee.
b)The Agreement.
c)The RFP.
d)The Proposal.
2.3 The Parties agree that Contractor was responsible for clarifying any ambiguity,
conflict, discrepancy, omission, or other error found in the RFP prior to Contractor
submitting its Qualifications or the right to clarify same shall be waived.
ARTICLE III -TERM
3.1 The Parties agree that the initial term of this Agreement shall be three (3) years,
subject to negotiation of terms with the contractor and the concurrence of the City of
Opa-Locka City Commission and availability of annual appropriation.
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CITY OF OPA-LOCKA
AGENT OF RECORD
PROFESSIONAL SERVICES AGREEMENT
3.2 Following the initial term, the City shall have the option to renew the Agreement
for three (3)additional one-year renewal intervals if both Parties agree in writing.
Should the City not desire to renew the Agreement, the City shall give a non-renewal
written notice to Contractor within sixty (60) days prior to the expiration of the annual
anniversary date of the Agreement. Should the Contractor not desire to continue the
Agreement, the Contractor shall give a non-renewal written notice to the City at least
one hundred twenty (120) days prior to the expiration of the annual anniversary
date of the
Agreement.
ARTICLE IV- COMPENSATION
4.1 Sapoznik will contract Healthcare,or Medical, at 5%commission rate. Upon decision
of specific carrier, all commission will be agreed upon, by both parties, and disclosed in writing
to City of Opa-Locka.
Sapoznik will contract supplementary products at standard commission rate(usually 10%)for the
below products. All commissions will be agreed upon, by both parties,and disclosed in writing
to City of Opa-Locka.
• Dental
• Vision
• Basic Life and AD&D Insurance
Standard percentage based commission of all voluntary products will be paid at the standard
commission rate to Sapoznik Insurance. Voluntary products are defined as any insurance
product, selected by employee, retiree or dependant, which are 100% paid by the previous
mentioned, at no expense to City of Opa-locka. All percentages will be disclosed in writing to
City of Opa-locka at time of carrier selection and voluntary product selection which to, at a
minimum, include;
• Self/Dependant term life insurance
• Disability Insurance
• Cancer Policy
• Critical Care Policy
• Legal Insurance
• Accident Insurance
• Hospital Insurance
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CITY OF OPA-LOCKA
AGENT OF RECORD
PROFESSIONAL SERVICES AGREEMENT
ARTICLE V - SCOPE OF SERVICES
5.1 Contractor agrees to perform Services for the benefit of the City under the special
terms, schedules, and conditions set forth in this Agreement and Contract Documents.
Contractor shall perform Services in accordance with that degree of care and skill
ordinarily exercised by reputable members of its profession.
s.2 Contractor shall furnish all services, work, labor, equipment, and materials
necessary in the performance of Services, to the satisfaction of the City. The City shall
decide all claims regarding interpretation of the Contract Documents and on all other
matters relating to the execution, progress and quality of the work to be performed under
this Agreement. In cases of disagreement or ambiguity regarding quality of Services, the
City shall decide all questions, difficulties and disputes of whatever nature that may arise
under this Agreement.
5.3 Contractor represents and warrants to the City that: (i) Contractor possesses all
qualifications, licenses and expertise required in the provision of Services, including but
not limited to full qualification and good standing to do business in Florida with
personnel fully licensed by the State of Florida; (ii) Contractor is not delinquent in the
payment of any sums due the City, including payment of permit fees, local business
taxes, or in the performance of any obligations to the City; (iii) all personnel assigned to
perform work shall be, at all times during the term hereof, fully qualified and trained to
perform the tasks assigned to each; (iv) the Services will be performed in the manner and
at such times and locations as described in the Contract Documents for the budgeted
amounts, rates and schedules; and (v) the person executing this Agreement on behalf of
Contractor is duly authorized to execute same and fully bind Contractor as a party to this
Agreement.
5.4 Contractor agrees and understands that: (i) any and all subcontractors used by
Contractor shall be paid by Contractor and not paid directly by the City; and (ii) any and
all liabilities regarding payment to or use of subcontractors for any of the work related to
this Agreement shall be borne solely by Contractor.
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CITY OF OPA-LOCKA
AGENT OF RECORD
PROFESSIONAL SERVICES AGREEMENT
ARTICLE VI -INDEPENDENT CONTRACTOR
6.1 Contractor and its employees and agents shall be deemed to be independent
contractors and not City agents or employees. Accordingly, Contractor shall not attain,
nor be entitled to,any rights or benefits under the Civil Service or Pension Ordinances of the
City, nor any rights generally afforded classified or unclassified employees of the City.
Contractor further understands that Florida workers' compensation benefits available
to employees of the City are not available to Contractor, and agrees to provide workers'
compensation insurance for any employee or agent of Contractor rendering Services to
the City under this Agreement.
ARTICLE VII - DEFAULT
7.1 If Contractor fails to comply with any term or condition of this Agreement, or
fails to perform any of its obligations hereunder, then Contractor shall be in default. The
City shall have the right to terminate this Agreement, in the event Contractor fails to cure
a default within fifteen (1 5) business days after receiving notice of default. Contractor
understands and agrees that termination of this Agreement under this section shall not
release Contractor from any obligations accruing prior to the effective date of
termination. The Contractor shall be liable for damages as provided by Florida law.
7.2 An event of default shall mean a breach of this Agreement and/or Contract
Documents by the Contractor. Without limiting the generality of the foregoing and in
addition to those instances referred to as a breach, an event of default shall include, but not
be limited to the following:
a)Contractor has misrepresented information to the City;
b)Contractor has not performed Services on a timely basis;
c) Contractor has refused or failed to supply enough properly skilled personnel;
d)Contractor has failed to make prompt payments to subcontractors or suppliers
for any services;
e) Contractor has failed in any representations made in this Agreement or
Contract Documents;or
0 Contractor has refused or failed to provide Services as specified in this
Agreement and/or Contract Documents.
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CITY OF OPA-LOCKA
AGENT OF RECORD
PROFESSIONAL SERVICES AGREEMENT
7.3 When, in the opinion of the City, reasonable grounds for uncertainty exist with
respect to Contractor's ability to perform any portion of Services, the City may request
that the Contractor, within a reasonable time frame set forth in the City's request, provide
adequate assurances to the City in writing, of Contractor's ability to perform in
accordance with terms of this Agreement. In the event that the Contractor fails to provide the
City the requested assurances within the prescribed time frame, the City will treat such
failure as a breach of this Agreement.
ARTICLE VIII - CITY'S TERMINATION RIGHTS
8.1 The City shall have the right to terminate this Agreement, in its sole discretion at
any time, without cause, upon thirty (30) days written notice to Contractor. The City shall
not be liable to Contractor for any additional amounts or damages, including but not
limited to,anticipated profits,or consequential or incidental damages.
ARTICLE IX-CONFLICTS OF INTEREST
9.1 Contractor covenants that no person under its employ who presently exercises any
functions or responsibilities on behalf of the City in connection with this Agreement has
any personal financial interest, directly or indirectly, with contractors or vendors
providing professional insurance services, except as fully disclosed and approved by the
City.
ARTICLE X-OWNERSHIP OF DOCUMENTS
10.1 All documents resulting from the provision of Services under this Agreement shall
be deemed the sole property of the City, and the City shall have all rights incident to sole
ownership. All such documents shall be provided to the City once the Services are
completed. In the event the Agreement is terminated, Contractor agrees to provide the City
all documents relating to the Services within 10 days from the date the Agreement is
terminated.
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CITY OF OPA-LOCKA
AGENT OF RECORD
PROFESSIONAL SERVICES AGREEMENT
ARTICLE XI -NOTICE
11.1 All notices, demands, correspondence and communications between the City and
Contractor shall be deemed sufficiently given under the terms of this Agreement when
dispatched by registered or certified mail, postage prepaid, return receipt requested,
addressed as follows:
To Contractor: Sapoznik Insurance and Associates, Inc.
1100 NE 163 Street, 2nd Floor
North Miami Beach, FL 33162
To City: City of Opa-locka
3400 NW 135th St, Bldg B
Opa-Locka, FL 33054
Attention: City Manager
ARTICLE XII - PUBLIC RECORDS
12.1 Contractor understands that the public shall have access, at all reasonable times,
to all documents and information pertaining to City contracts, subject to the provisions of
Chapter 119, Florida Statutes, and agrees to allow access by the City and the public to all
documents subject to disclosure under applicable law.
ARTICLE XIII - COMPLIANCE WITH LAWS
13.1 Contractor agrees to comply with and observe all applicable federal, state, and
local laws, rules, regulations, codes and ordinances, as they may be amended from time
to time.
ARTICLE XIV -INDEMNIFICATION
14.1 Contractor shall defend, indemnify and hold harmless the City, its officers and
employees from and against any and all claims, costs, losses and damages including, but
not limited to reasonable attorney's fees, caused by the negligent acts or omissions of the
Contractor, its officers, directors, agents, partners, subcontractors, employees, and
managers in the performance and furnishing Services under this Agreement.
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CITY OF OPA-LOCKA
AGENT OF RECORD
PROFESSIONAL SERVICES AGREEMENT
14.2 Nothing contained in this Agreement is any way intended to be a waiver of the
limitation placed upon the City's liability as set forth in Section 768.28, Florida Statutes.
Additionally, the City does not waive sovereign immunity, and no claim or award against
the City shall include attorney's fees, investigative costs or pre judgment interest.
ARTICLE XV - WARRANTIES
16.1 The Contractor warrants that Services shall comply with the Contract Documents
and with the usual thoroughness and competence of the Contractor's profession.
16.2 In the event Contractor fails to perform its duties according to the terms of this
Agreement, Contractor shall be liable to the City for all costs incurred in enforcing the
terms of this Agreement, including but not limited to attorney's fees.
ARTICLE XVI -MISCELLANEOUS PROVISIONS
17.1 No waiver or breach of any provision of this Agreement shall constitute a waiver
of any subsequent breach of the same or any other provision hereof, and no waiver shall
be effective unless made in writing.
17.2 Should any provision, paragraph, sentence, word or phrase contained in this
Agreement be determined by a court of competent jurisdiction to be invalid, illegal or
otherwise unenforceable under the laws of the State of Florida, such provision,
paragraph, sentence, word or phrase shall be deemed modified to the extent necessary in
order to conform with such laws, or if not modifiable, then same shall be deemed
severable, and in either event, the remaining terms and provisions of this Agreement shall
remain unmodified and in full force and effect or limitation of its use.
17.3 This Agreement and Contract Documents constitute the sole and entire agreement
between the Parties hereto.No modification or amendment shall be valid unless in
writing and executed by properly authorized representatives of both Parties.
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CITY OF OPA-LOCKA
AGENT OF RECORD
PROFESSIONAL SERVICES AGREEMENT
17.4 The Services to be provided by Contractor pursuant to this Agreement shall be
non-exclusive and nothing shall preclude the City from engaging other firms to perform
Services.
17.5 Services shall not be subcontracted, transferred, conveyed, or assigned under this
Agreement in whole or in part to any other person, firm or corporation without the prior
written consent of the City.
17.6 This Agreement shall be construed and enforced according to the laws of the State
of Florida. Venue in any proceedings between the Parties shall be in Miami-Dade
County, Florida.
17.7 The City reserves the right to audit the records of the Contractor covered by this
Agreement at any time during the execution of the Services for a period of three years.
ARTICLE XII -NON-DISCRIMINATION
18.1 Contractor agrees that it shall not discriminate as to race, sex, color, creed,
national origin,or disability, in connection with its performance under this Agreement.
ARTICLE XIII- COUNTERPARTS
19.1 This Agreement may be executed in two or more counterparts,each of which
shall constitute an original but all of which, when taken together, shall constitute one and
the same Agreement.
[The remainder of this page is intentionally left blank.]
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CITY OF OPA-LOCKA
AGENT OF RECORD
PROFESSIONAL SERVICES AGREEMENT
IN WITNESS WHEREOF, the Parties have executed this Agreement by their
respective proper officers duly authorized the day and year first written above.
ATTEST: SAPOZNIK INSURANCE&ASSOCIATES,INC.,
a Florida for-profit corporation:
Corporate Secretary: "Contractor"
By: By: O\aJiQ/ L
Print Name: Print Name: Rachel SaDoznik
Title: Title: CEO
ATTEST: CITY 'IF OP• -LO r I• , a Florida
Municip. C. I
"City"
1, _
By: (I� ' By: .,
Joanna " ores
City of Opa-locka Print Name: K- yin L.Baker,Sr.
City Clerk
Date: O I ,G I ac IS Title: City Manager
APPROVED AS TO FORM AND
LEGAL SUFFICIENCY:
By:
Vincent Brown, Esq.
City of Opa-locka
City Attorney
Date:
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