HomeMy WebLinkAboutTR-65-98
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
REPORT
Meeting:
GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
File # t-/O:;2 .G, C
Res.#6-<?P" 4'5( . 9<t
Date:
MONDAY, JULY 13, 1998
Report #:
TR - 6 5 - 98 File #:
By-Law #
Subject:
RFP98-2, GROUP BENEFITS CONSULTING
Recommendations:
It is respectfully recommended that the General Purpose and
Administration Committee recommend to Council the following:
1. THAT Report TR-65-98 be received;
2. THAT the Consulting Services of Buffet Taylor & Associates be
retained to administer the Municipality's benefit plans for
the period from August I, 1998 to May I, 2000;
3. THAT recommendation #2 above be subject to a six (6)
month probationary period;
4. THAT should satisfactory service not be received during
the six (6) month probation period, the contract be
cancelled; and
5. THAT upon the expiry of the initial contract term of May
I, 2000, pending satisfactory pricing and service, the
contract automatically be renewed for an additional two
(2) years.
BACKGROUND AND COMMENT:
On February 23, 1998, Council resolution #C-179-98 directed that a
tender be issued for Benefit Consulting Services, with the results
reported to Council for approval.
Subsequently, RFP98-2 was advertised and issued with proposals
being received as follows:
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REPORT NO.: TR-65-98
PAGE 2
Pace Consulting
North York, Ontario
Mosey & Mosey
Pickering, Ontario
Buffet Taylor & Associates
Whitby, Ontario
Seabury & Smith
Toronto, Ontario
Manion Wilkins & Associates
Etobicoke, Ontario
2%
2.95%
3.5%
4.0%
4.5%
As identified in the terms and conditions of the Request for
Proposal, the proposals were evaluated on experience with umbrella
plans for group benefits, administration services, capabilities and
proven track record with public sector, scope of proposed
consul ting services, respondent qualifications, references,
pricing, and customer service capabilities.
Based on the review by the evaluation committee, which was
comprised of the Treasurer, the Deputy Treasurer, the Purchasing
Manager, and the Payroll Clerk II, the two highest scoring firms,
that being Mosey & Mosey, and Buffet Taylor Associates were invited
to make a presentation to the committee.
After further review and analysis of the proposals by these two
firms, the committee consensus is that both firms are basically
equal in their experience and qualifications to service the
Municipality of Clarington.
The fee proposed by Mosey and Mosey is approximately one half
percent (~%) lower than that submitted by Buffet Taylor Associates,
which equates to approximately $3,000.00 per year.
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REPORT NO.: TR-65-98
PAGE 3
It is the opinion of staff that the associated administration costs
for staff time and involvement to change from the current Benefit
Plan Administers would exceed the projected savings in fees.
During the past year there have been some concerns with respect to
the quality of service provided by Buffet Taylor Associates.
However, there has been a significant improvement over the past
three (3) months. In addition, Buffet Taylor Associates have
provided the Municipality with a service guarantee for the new
contract which states that if they fail to meet our service
expectations in any way, they will credit the Municipality with 10%
of the total fees for that year towards the next year's fees for
service. It is anticipated that this level of service will be
maintained throughout the term of the contract. However, if at any
time throughout the term of the contract unsatisfactory service is
received, there is provision in the Request for Proposal that the
Municipality of Clarington reserves the right to cancel at any
time, upon sixty (60) days written notice.
For the information of Council, Buffett Taylor Associates have
acknowledged that -the service received in 1997 was not at a
standard satisfactory to the Municipality and have consequently
extended their service guarantee of a ten percent (10%) rebate
based on the previous year's fees.
It is therefore recommended that the contract for Group Benefits
Plan Consulting, be awarded to Buffet Taylor Associates to commence
immediately and to expire May 1, 2000, and that this award be
subject to a six month probation period. Failure of Buffet Taylor
Associates to provide satisfactory service will result in contract
cancellation. It is further recommended that upon expiry of the
initial contract term of May 1, 2000, that pending satisfactory
service and pricing the contract be automatically renewed for an
additional two year term.
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REPORT NO.: TR-65-98
PAGE 4
Reviewed by,
H. BSc . , AMCT . ,
~
W.H. Stockwell,
Chief Administrative Officer
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