Title
Approving a resolution approving an agreement for benefits consulting services with HUB International and authorizing the City Manager to execute same.
Summary
The City of Pflugerville has had the same Benefit Broker Services Provider, Gallagher Benefit Services, Inc., for the past 18 years. Following best practices, the City Manager directed the People and Culture Department to solicit proposals to provide benefit consulting/brokerage service for the City. The request for proposals was released on May 6, 2019 with a due date of May 31, 2019. The City received 8 proposals. A RFP Review Panel, consisting of James Hartshorn, Assistant City Manager, Amy Good, Finance Director, Elizabeth Taplin, Former P+C Director, Mike Dodson, Benefits Committee Chairperson and Kevin Connaughton, P+C Generalist reviewed all proposals and determined that six (6) proposals would be scored based on Organizational Overview, Working Together, Strategy, Design and Renewal, Ongoing Program Management, Summary and Overall Presentation. The panel invited the top four brokers to present to the review committee on July 17-18, 2019. Based on reviews, interviews and reference checks, the panel recommended that HUB be selected as the City’s next broker.
The current provider, Gallagher, is paid on a commission basis and received $201,617 in commissions in calendar year 2018 directly from the insurance provider. HUB’s annual fee will be flat fee of $55,000 paid directly by the City of Pflugerville and not a commission based fee paid by the insurance provider. Without the commission being included in the consideration by the insurance companies, this will allow the broker to seek the lowest priced premiums for the City of Pflugerville.
The intial contract is for three (3) years with the ability to cancel at anytime with 60 days notice.
Prior City Council Action
N/A
Deadline for City Council Action
Action is requested on August 27, 2019.
Funding Expected: Revenue __ Expenditure...
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