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Insurance Services Brokerage /Consulting Agreement with Keenan & Associates and Dick Cook Insurance Services June 21, 2016 Page 2 DISCUSSION On March 2, 2016, the City issued a Request for Proposal (RFP No. 16 -032) for Health Benefits Brokerage and Consulting Services for the purpose of selecting a broker /consultant to perform services for the City, including but not limited to plan design, administration of contracts, and negotiations of rates /contracts for the City's ancillary benefits. Nine firms responded to the RFP and were rated based on firm /team qualification, experience working with similar size accounts in public agencies, understanding of the project, references and compliance with the RFP, by a subcommittee of staff, and one external rater with expertise in the field of Benefits. The rating of the top three firms for broker /consultant of the Vision, Life, Accidental Death & Dismemberment, Long Term Disability Insurance, Employee Assistance Program (EAP), Retiree Billing, and Section 125 Flexible Spending Accounts (FSA) is as follows: Ranking Keenan & Associates 98.8 1 Will accept current commissions Wells Fargo 96.1 2 Annual amount NTE $70k Alliant 95.5 3 Will accept current commissions The rating of the top three firms for broker /consultant of the Dental Plans is as follows: Ranking Consultant Firm Final Percent Proposal Commission Cook Insurance Services 99.8 1 Accept standard commission or less Keenan & Associates 98.8 2 Will accept current commissions Mercer 97.5 3 Annual amount NTE $70k Based on the rating of each firm, staff recommends executing an agreement with Keenan & Associates (Exhibit 1) to act as the broker of record /consultant for the City's Group Vision, Life, Accidental Death & Dismemberment, Long Term Disability Insurance, Employee Assistance Program (EAP), Retiree Billing, and Section 125 Flexible Spending Accounts (FSA) and an agreement with Dick Cook Insurance Services (Exhibit 2) to act as the broker of record /consultant for the City's Dental Insurance Policies. The City does not pay any compensation directly to the broker of record /consultant under these agreements. All compensation to the broker of record /consultant is paid directly by the insurance carriers according to the current commission arrangements in place (Exhibit 3), which is based on industry standards ranging from zero to ten percent. The broker of record /consultant will notify the City of any change in commission structure and the agreement may be terminated by the City upon thirty (30) days written notice. 25M -2