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Home My WebLink AboutOrdinance 2898 ORDINANCE NO . AN ORDINANCE WAIVING THE REQUIRMENTS OF COMPETTIV . BIDDING FOR THE PURCHASE OF GROUP HEALTH INSURANCE;.,. r: .,- FOR CITY EMPLOYEES . BE IT ORDAINED BY THE BOARD OF DIRECTORS OF THE CITY OF FAYETTEVILLE , ARKANSAS : Section 1 . That the Board of Directors hereby waives the requirements of competitive bidding - for - the purchase of group health insurance for City employees; for the. reason that said requirements are not practical because ' there is only one potential bidder . Section 2 . That the Mayor and City Clerk are hereby authorizes ann' directed to execute a new retention . fund agreement with Blue Cross Blue Shield of . Arkansas "for the anniversary period from April 15 , 1983 , to * •April 15 , 1984 . A copy of the agreement authorized for execution hereby is attached hereto , marked Exhibit "A" , and made a part hereof . PASSED AND APPROVED this 45-74- day of March , 1983 . VF• ,=^�F PAYFr r% APPROVED : m ' BY : 4. ' Mayor cry V..K"'I •��,f, ; X�Ir�'l:t• . By : City C er CERTIFICATE OF RECORD STATE OF ARKANSAS SS. Washington Courltr ), Alma L. Kollme ie % ;r:ua Clerk and Ex-Officio Recorder for Washington County. ern hereby certify that the annexed or fore- going instrument was tiled for re- (' in my o(l�fice on the day of Qy 19 at� o'clo :ItS,M, and the same is duly recorded in J&W� r=_cord /L)72at page— Witness age Witness my hand and seal this _ day of — 19 ircuuClerk and " �S Officio RecVed.4 By Deputy Clerk CERTIFICATE OF RECORD State of Arkwisas Cit;• cf i SS y, City Clerk and d t:'e C:: y :;f Fayetteville r 8 or fore-- IV pe,:rs in ',00k t';iUiess rn - v han d : ��._._ . . ...._ . 1.1Y of ;, - •'� and x- fficio Recorder b i March 16 ' 1983 ARKANSAS BLUE QMS AND BLUE SHIELD, INC. RE=ICN AGREEME P FOR CITY OF FAYEITF,'VILLE AND FAYErIEVILLE PUBLIC ' LIBRARY Group Numbers: 290041 , 290042 This Retention Agreement applies to the above Group . The Agreement is a retrospective refund calculation , and will be determined _ using earned premium and incurred claims of Blue Cross , Blue Shield, and Extended Benefits coverage . The effective date of the Agreement is to be April 1 , 1983 . Each contract year constitutes a period for accountability of premiums and incurred claims , and hereafter will be referred to as a refund period. The refund will be calculated one hundred and eighty ( 180) days after the end of each contract year. The composition of the formula used to determine the refund amount and the definition of each item contained in the formula are as follows : Earned Premium - Blue Cross, Blue Shield, and Extended Benefits income for the refund period. Retention - The amount retained by Arkansas Blue Cross and Blue Shield for claims administration expense, general administrative expense , general contingency , and insurance risk . The retention used in establish- ing the refund amount is 12 . 0% of earned premium. ^ , EIVED APR 111983' !ON Claims Cost - Claims cost is the amount of earned premium required to pay contract benefits for claims incurred during the refund period. Rate Stabilization Reserve - The amount of inane maintained in reserve for the Group by Arkansas Blue Cross and Blue Shield, to offset unusual fluctuations in claim. This will be 13 . 4% of income for the contract year beginning April 1 , 1983. Once the reserve is established, it will be credited with interest earned during subsequent periods . If an underwriting loss is incurred during the refund period , it will be charged against the rate stabilization fund. Negative balances in the rate stabiliza- tion fund will be carried forward to the next refund period. Refund - The retrospective refund shall be earned premium, minus the scan of claims cost , plus retention , minus the adjustment to the stabiliza- tion fund. The formula is illustrated as follows: EARNED PREMIUM - (CLAIM COST + REfFi0N) - ADJUSrawr TO SPABILIZATION FUND = HER= The refund shall be paid to the City of Fayetteville and Fayetteville Public Library . In the event the group terminates their Blue Cross and Blue Shield coverage during the contract year , any refund or rate stabilization reserve due the Group will be considered liquidated damages . If the termination occurs at the end of a contract year , any refund or rate stabilization reserve due the Group will not be settled until twelve ( 12 ) months following the Group ' s termination . This Agreement may be terminated by either the Contract Holder or the Plan at the end of the contract year by thirty (30) days prior notice in i1writing, -2- nN ARKANSAS BLUE CROSS AMID BLUE SHIED, INC. Signed: 4hnp,6 B. House Date Vilde President , Marketing CITY OF FAYEITEVILT.F. and FAYEITEVILLE PUBLIC LIBRARY Signed Mayo We ATTEST : City Clerk Date . 1iANED ';,'O < 11X563 ACTUARIAL _3- r)IVISION • \{o�EpYETrj-j,l! FAYETTEVILLE, ARKANSAS / OFFICE OF CITY CLERK AA P. O. DRAWER F 72701 15011 521.7700 y' roN April 5 , 1983 Mr . Bruce Morgan Blue Cross / Blue Shield 1985 North College Fayetteville , Arkansas 72701 Dear Mr . Morgan : Enclosed are two copies of the Retention Agreement between the City of Fayetteville/ Fayetteville Public Library , and Arkansas Blue Cross and Blue Shield , Inc . These agreements have been signed by the Mayor . Please return one fully executed copy to my attention , after it has been signed by Mr . House . Thank you . Sincerely , Olivia Kelly City Clerk /oak Enc . cc : Sturman Mackey Purchasing Agent LIKE CHECKS PAYABLE T INVOKE FOR A � l4SOSNORTHWEST ARKANSAS No * 014908 CLASSIFIED ADVERTISING ' TIMES AMOUNT I +•` 212 NORTHEAST AVENUE - - 042L 01 $025. 20 TIMES WORDS FAYETTEVILLE, ARKANSAS72701 YOUR CLASSVNDINVOICE 3 06457 NOW ME. IF NOT PAID WRNIN 10 L PHONE : 501/442-6242 DAYS AMOUNT OUEWIUE1 3'! PHONE CLERK 901 — — 00 INDEXING TERMS! ORDINANCE City of Fayetteville AD GIVEN BY CLASSIFICATION \ 102\ Drawer F CODE I SOLICITED BY - OPERATOR Fayetteville SAR 72701 D V 00 START DATE STOP DATE SKIP SCHEDULE 03/ 14 /83 03/ 14/83 R1 PLEASE PAY PROMPTLY. ^'ORDINANCE NO. 2898^' AN... ORDINANCE: WAIVING ,,THE REGUIREMENTS OF C OMPETITIVE' BIDDING FO�ta�TiIW PURCHASE ' OF " GROUP ' HEALTHY INSLOANCE FOR CITY EHF`LOYEES;r •7A BE IT ORDAINED BY THE BOARD OF DIRECTORS OF' THE CITY . OF;••-FAYETTEVILLE, 1 ARKANSAS':i" - . Section 1 . That: the - Board of Direct " _ � friCEIVED _ R JE. ' J MAR 2 21983 - ACCOUNTS PAYABLE STATE of ARKANSAS 1 Jl ee. County of Washington I , hereby certify that I am the publisher of THE NORTHWEST ARKANSAS TIMES, a daily newspaper having a second class mailing privilege, and being not less than four pages of five columns each, published at a fixed place of business and at a fixed (daily) intervals continuously in the City of Fayetteville, County of Washington, Arkansas for more than a period of twelve months, circulated and distributed from an ORDINANCE NO. 2893 - established place of business to subscribers and readers generally of all classes AN ORDINANCE WAIVING in the City and County for a definite price for each copy, or a fixed price per THE REQUIREMENTS OF annum, which price was fixed at what is considered the value of the publication, COMPETITIVE BIDDING FOR THE PURCHASE OF based upon the news value and service value it contains, that at least fifty percent GROUP HEALTH INSUR - of the subscribers thereto have paid cash for their subscriptions to the newspaper ANCE FOR CITY EMPLOYEES, or its agents or through recognized news dealers over a period of at least six BE IT ORDAINED BY THE months; and that the said newspaper publishes an average of more than forty BOARD OF DIRECTORS of percent news matter. THE CITY OF FAYET TEVILLE, ARKANSAS: - Section 7. That the Board of I further certify that the legal notice hereto attached in the matter of Directors hereby waly" the requirements at competitive r b,ddmg for the Purchase of 9rouP health insurance for City employees for the reason that said requirements are not / Practical because there is only was published in the regulardaily Issue of said newspaperfor one patannal milder. Section 7. That rhe Mayor consecutive insertions as follows: (/ and ut Citraze Clerk are nereDo 1( y� nL execute a and mrtion f to The first insertion on the / ( day of 19 execute n new retention fund agreement with blue Cross Blue Shield of Arkansas for the second insertion on the — da of 19 ann;versary pariod from Aprily IS. 1983, to April 11, 19". A COPY of the agreement the third insertion on the day of 19 authorized for execution hereby is attached hereto, marked Exhibit "A and and the fourth insertion ont day of 19 made a part hereon. H PASSED AND-A►PROVEd this Ist day of March, 1913. APPROVED: By: Paul R. Nolan MayorSworn to and subscribed before me on this day of ATTEST: BY ' Olivia A. KNIY 01.L 9x . � City Clerk Notary Public My Commissio Expires: t t �->i=i f -,qI Fees for Printing _ $ Cost of Proof _ $ Total — 42A Q