Title
An Ordinance Of The City Of Hollywood, Florida, Amending Section 38.40 Of The Code Of Ordinances Regarding Purchasing; Expanding Exemption For Purchases Of Insurance To Include Purchase Of Third Party Administrative Services When City Is Self-Insured.
Body
Staff Recommends: The Approval Of The Attached Ordinance.
Explanation:
Section 38.40 of the Code of Ordinances requires competitive bids or competitive proposals for purchases made by the City but exempts certain purchases from these requirements.
One type of purchases that is exempt is the purchase of insurance through the City’s agent of record.
For several types of insurance, the City is self-insured.
When the City is self-insured, the City generally retains third-party administrators to administer the self-insurance programs.
The services of third-party administrators may be purchased through the City’s agent of record, but under the current language of the “insurance” exemption, such purchases are not exempt from the competitive bid or competitive proposal requirements.
Staff recommends that the City Commission expand the exemption to include purchases of third-party administrative services in situations in which the City is self-insured.
Recommended for inclusion on the agenda by:
Dr. Wazir Ishmael, City Manager
George R. Keller, Jr., Assistant City Manager/Finance & Administration, Office of the City Manager
Paul Bassar, Contract Compliance Office, Office of the City Manager