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Home My WebLink About143-08 RESOLUTIONRESOLUTION NO. 143-08 A RESOLUTION APPROVING THE RENEWAL OF THE CONTRACT WITH STEPHENS, INC , AS AMENDED TO ACT AS THE CITY OF FAYETTEVILLE'S BENEFITS BROKER AND ADVISOR BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas, hereby approves the renewal of the contract with Stephens, Inc., as amended, to act as the City of Fayetteville's Benefits Broker and Advisor. A copy of the amended contract, marked Exhibit "A," is attached hereto and made a part hereof PASSED and APPROVED this 15th day of July, 2008. APPROVED: By DAN COODY, Mayor ATTEST. By: SONDRA E. SMITH, City Clerk/Treasurer • •per : FAYETTEVILLE: `4 ' /GTON G�``‘ 'is4HIAN++++ City of Fayetteville, Arkansas Ret RFP 07-08, Benefits Consulting and Insurance Brokerage Services Contract First Amendment This First Amendment is made and entered into by and between City of Fayetteville, Arkansas, 113 W. Mountain Street, Fayetteville, AR 72701 and Stephens Insurance, LLC. WHEREAS, City of Fayetteville and Stephens Insurance, LLC are parties to that certain Benefits Consulting and Insurance Brokerage Services Contract dated as of July 17, 2007 (the "Agreement"); and WHEREAS, City of Fayetteville and Stephens Insurance, LLC desire to extend the term of the Agreement, and modify the terms thereof, as provided herein. NOW, THEREFORE, in consideration of the mutual promises contained herein, the parties hereby agree as follows: 1. The term of the Agreement is hereby extended for an additional period of one year, beginning on July 17, 2008 and ending on July 17, 2009 (the "First Extended Term"). 2. For the renewal term of the contract running from July 17, 2008- July 17, 2009, the City of Fayetteville shall pay Stephens Insurance, LLC twelve (12) equal monthly installments of $4,329.17 ($51,950 on an annualized basis) for the Base Services described on the Fee Schedule. This amount was determined by increasing the fees payable for the Base Services just prior to the renewal (i.e., $50,000 per year) by a percentage increase equal to the percentage increase of 3.9% in the "Consumer Price Index for All Urban Consumers: US City Average, All Items, Index Base Period 1982-84=100, before seasonal adjustment" (referred to herein as the "CPI -U", as published by the U.S. Bureau of Labor Statistics) from April 2007 (206.686) to April 2008 (214.823). It is the intent of the parties that this Agreement be renewed on an annual basis for three additional years following July 17, 2009. The fee to be paid to Stephens Insurance, LLC for the Base Services during each renewal term shall be increased for each successive renewal term in an amount for each annual renewal determined by utilizing the same formula, based on increases (if any) in the above described CPI -U during the one-year April to April time period preceding the applicable date of renewal, in calculating additional percentage increases upon renewal, should the CPI -U have gone up. It is further agreed that should the CPI -U decrease during such April to Apnl time period, then the monthly installments payable for the Base Services for the next following renewal year shall remain unchanged. It is also agreed that for purposes of the calculations described above the CPI -U percentage shall be rounded at one decimal, i.e. 3.9%. 3. All capitalized terms used in this First Amendment which are not defined herein shall have the meanings ascribed to them in the Agreement. 4. All terms and conditions of the Agreement not specifically modified, amended, or superseded in this First Amendment shall remain unchanged and in full force and effect. WITNESS OUR HANDS THIS Ii7TA DAY OF JULY, 2008. STEPHENS 'SURANCE,LLC BY: CITY OF F ' ETTEVILLE, ARKANSAS �,,�,RWTR,,,, ` ��G.G\TY O;c:,61 dd�P r� •: c^• _•2 By. ��FAYEfTEVILLE Dan Coady :yor = • ii ise %9sy :'kANSP�J� ATTEST: ''�� 4GTON �o,,� nn nuu,(1u� By: 8 (at Aze, , , Sondra Smith, City Clerk Printed Name and itle ATTEST: CONSULTANT FIRM'S SECRETARY 1 mela Brown 1 Center Street, Little Rock, Arkansas 72201 DT Cs. • Missy Leflar Submitted By City of Fayetteville Staff Review Form City Council Agenda Items and Contracts, Leases or Agreements 7/15/2008 City Council Meeting Date Agenda Items Only Human Resources Division Action Required: 7/7 & /?3 St Ian; //lc, Operations Department Staff recommends that the Council approve the renewal of the City's contract, as amended, with Stephens, Inc., the City's Benefits Broker and Advisor. $53,000 (July '08 - July '09) Cost of this request 1010.1220.5314 'OD Account Number Project Number Budgeted Item X 98,495.00 Category / Project Budget 29,960.21 Funds Used to Date 68,534.79 Remaining Balance Budget Adjustment Attached Professional Services Program Category / Project Name Benefit Review / Renewal / Planning Program / Project Category Name General Fund Fund Name cis a F3 De nmemo Date De rtment D c Date CNI 01 j r /. / R City Attorney 1/�A�/ 7/f ler Date Finance and Internal Service Director Date Previous Ordinance or Resolution # Original Contract Date: Original Contract Numb r: i Received in City Clerk's Office 4 7-02 Comments: Revised April 16, 2007 • a e evi le y ARKANSAS CITY COUNCIL AGENDA MEMO City Council Meeting of July 15, 2008 TO: THRU: FROM: DATE: SUBJECT: Mayor Dan Coody and the City Cou Gary Dumas, Operations Directo Missy Leflar, Human Resources rvision Manager 4/ June 27, 2008 Renewal of Stephens, Inc. contract Recommendation Staff recommends the Council approve the renewal of the City's contract with Stephens, Inc., the City's Benefits Broker and Advisor. Discussion Stephens, Inc. has saved the City money with its services, most notably when it vetted the City's final bill from the City's former health insurance carrier. Stephens took the carrier to task on the proposed final bill and, as a result of its efforts, saved the City approximately $200,000. Stephens' negotiations with the present health insurance carrier have resulted in the City's 2009 health insurance premiums not going up at all, despite 8% - 10% being the expected increase according to national averages. This will save money for the City in 2009. In addition, Stephens, Inc has provided highly professional, benefits related regulatory and other expertise. They have used their understanding of insurance industry standards and regulations to guide the City into some new best practices efforts. Stephens' assistance has also included providing valuable assistance in resolving employee insurance related issues — especially health insurance - in as satisfactory a manner as possible. Their services as a very effective liaison between the City and the insurance companies are utilized by the City on a daily basis, and it would not be an exaggeration to say that they have caused many employee health related claims to be paid in a more timely manner than they otherwise would have been. In some instances, they have likely caused some claims to be paid that might otherwise not have been paid at all. Stephens has requested an amendment to the contract which would increase their annual base fee commensurate with increases in the Consumer Price Index. The Budget Division has reviewed and interpreted the calculations to ensure they meet the intent of the City's agreement with Stephens. The added cost of such an increase is estimated at approximately $3,000 a year for 2009. Budget Impact This contract expense can be met within City's existing budget. The base fee is already budgeted. The Consumer Price Index percentage increase could be met with an internal HR budget reallocation, due to this year's Rule 32 Workers Compensation Commission mandatory safety requirements being less expensive than anticipated. RESOLUTION NO. A RESOLUTION APPROVING THE RENEWAL OF THE CONTRACT WITH STEPHENS, INC , AS AMENDED TO ACT AS THE CITY OF FAYEIThVILLE'S BENEFITS BROKER AND ADVISOR. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas, hereby approves the renewal of the contract with Stephens, Inc., as amended, to act as the City of Fayetteville's Benefits Broker and Advisor. A copy of the amended contract, marked Exhibit "A," is attached hereto and made a part hereof PASSED and APPROVED this 15th day of July, 2008. APPROVED: ATTEST: By: By: DAN COODY, Mayor SONDRA E SMITH, City Clerk/Treasurer City of Fayetteville, Arkansas Ref: RFP 07-08, Benefits Consulting and Insurance Brokerage Services Contract First Amendment This First Amendment is made and entered into by and between City of Fayetteville, Arkansas, 113 W. Mountain Street, Fayetteville, AR 72701 and Stephens Insurance, LLC. WHEREAS, City of Fayetteville and Stephens Insurance, LLC are parties to that certain Benefits Consulting and Insurance Brokerage Services Contract dated as of July 17, 2007 (the "Agreement"); and WHEREAS, City of Fayetteville and Stephens Insurance, LLC desire to extend the term of the Agreement, and modify the terms thereof, as provided herein. NOW, THEREFORE, in consideration of the mutual promises contained herein, the parties hereby agree as follows: 1. The term of the Agreement is hereby extended for an additional period of one year, beginning on July 17, 2008 and ending on July 17, 2009 (the "First Extended Term"). 2. For the renewal term of the contract running from July 17, 2008- July 17, 2009, the City of Fayetteville shall pay Stephens Insurance, LLC twelve (12) equal monthly installments of $4,329.17 ($51,950 on an annualized basis) for the Base Services described on the Fee Schedule. This amount was determined by increasing the fees payable for the Base Services just prior to the renewal (i.e., $50,000 per year) by a percentage increase equal to the percentage increase of 3.9% in the "Consumer Price Index for All Urban Consumers: US City Average, All Items, Index Base Penod 1982-84=100, before seasonal adjustment" (referred to herein as the "CPI -U", as published by the U.S. Bureau of Labor Statistics) from April 2007 (206.686) to April 2008 (214.823). It is the intent of the parties that this Agreement be renewed on an annual basis for three additional years following July 17, 2009. The fee to be paid to Stephens Insurance, LLC for the Base Services during each renewal term shall be increased for each successive renewal term in an amount for each annual renewal determined by utilizing the same formula, based on increases (if any) in the above described CPI -U during the one-year April to April time period preceding the applicable date of renewal, in calculating additional percentage increases upon renewal, should the CPI -U have gone up. It is further agreed that should the CPI -U decrease during such April to April time period, then the monthly installments payable for the Base Services for the next following renewal year shall remain unchanged. It is also agreed that for purposes of the calculations described above the CPI -U percentage shall be rounded at one decimal, i.e. 3.9%. 3. All capitalized terms used in this First Amendment which are not defined herein shall have the meanings ascribed to them in the Agreement. 4. All terms and conditions of the Agreement not specifically modified, amended, or superseded in this First Amendment shall remain unchanged and in full force and effect. WITNESS OUR HANDS THIS DAY OF JULY, 2008. CITY OF FAYETTEVILLE, ARKANSAS By: Dan Coody, Mayor STEPHENS INSURANCE, LLC BY: ATTEST: Authorized Signature By: Sondra Smith, City Clerk Printed Name and Title ATTEST: CONSULTANT FIRM'S SECRETARY Pamela Brown 111 Center Street, Little Rock, Arkansas 72201 (7.21.08) Clarice Pearman - Res.143-08 From: To: Date: Subject: Attachments: Clarice Pearman Leflar, Missy 7.21.08 1:35 PM Res.143-08 143-08 Stephens Inc -Ins broker.pdf CC: Audit Missy: Attached is a copy of the above resolution passed by City Council, July 15, 2008, regarding Stephens, Inc. Please let me know if there is anything else needed for this item. Have a good day. Thanks. 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