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Home My WebLink About255-09 RESOLUTIONRESOLUTION NO. 255-09 A RESOLUTION TO APPROVE THE 2009 ANNUAL RENEWAL OF THE CONTRACT WITH STEPHENS, INC. IN THE AMOUNT OF $51,950.00 FOR BENEFITS CONSULTING AND INSURANCE BROKERAGE SERVICES 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 attached contract renewal for 2009-2010 with Stephens, Inc. in the annual amount of $51,950.00 for benefits consulting and insurance brokerage services. PASSED and APPROVED this 15th day of December , 2009. APPROVED: By ATTEST: • I 1 ELD J 1 `I I , Mayor By: SONDRA E. SMITH, City Clerk/Trea ev'm,,, :U• A g;FAYETTEVILLE; 3 PEP cil irk 300;3 RIg1111 Missy Leflar Submitted By City of Fayetteville Staff Review Form City Council Agenda Items and Contracts, Leases or Agreements 12/15/2009 City Council Meeting Date Agenda Items Only N/A Division Action Required: Human Resources Department Staff requests approval of the 2009 annual renewal of the 2007 Five Year Contract with Stephens, Inc. previously approved by the City Council. The monthly payment price remains unchanged from the 2008 renewal. There is no budget impact, as the amounts have already been approved for the 2009 and 2010 budgets. 51,950 Annual Cost Cost of this request 1010.1210.5314.00 Account Number Project Number $ 202,222.00 Category / Project Budget 112,301.00 Services & Charges Program Category / Project Name Human Resources Funds Used to Date Program / Project Category Name 89,921.00 General Remaining Balance Fund Name Budgeted Item X Budget Adjustment Attached Departmen erector 21 City Attorney 1/.rfi 141Alt�_. n Date (2-8-oy Date It ce and Internal Services Director Chief of Sta ayor to Previous Ordinance or Resolution # Original Contract Date: Original Contract Number: Received in City Clerk's Office ENTERED t2 $-Cf� Received in Mayor's Office 3 T 1 Comments: Revised January 15, 2009 Trete_le THE CITY OF FAYETTEVILLE, ARKANSAS DEPARTMENT CORRESPONDENCE ARKANSAS www.accessfayetteville.org CITY COUNCIL AGENDA MEMO To: Mayor Lioneld Jordan and City Council members Thru: Don Marr From: Missy Leflar Date: December 8, 2009 Subject: Annual renewal of 2007 Five Year Contract with Stephens, Inc. PROPOSAL: Staff recommends that the City Council approve the 2009 annual renewal of the 2007 Five Year Contract previously approved by the City Council. The monthly payment price remains unchanged from the 2008 renewal. A copy of said document is attached and labeled "RFP 07-08, Benefits Consulting and Insurance Brokerage Services Contract, Second Amendment". RECOMMENDATION: Staff recommends approval of the annual renewal of this contract. Stephens, Inc. once again provided valuable money saving services for the City and also assisted staff in individually assisting employees so they could obtain maximum coverage their benefits. Although health insurance premiums went up 7.5%, they could have gone up between 21.39% and 45.07% but for Stephens' competitive shopping for the City. Stephens also oversaw negotiations for an life insurance "takeover" from a company which was not performing well for employees to one that should provide superior customer service and reduced legal risk. In addition, Stephens has assisted with numerous employee situations where the medical insurance initially was not paying everything it could have and should have. Stephens also routinely and timely assists with any types of issues City staff or employees have with obtaining any type of benefit coverage. This is a significant benefit to the employees. Stephens also again satisfactorily oversaw the annual contract renewals with for the twelve employee benefits offered by the City, advising the City as to industry standards and expectations. Stephens oversaw the annual discussions with the City's benefits enrollment software vendor, to ensure a smooth transition into the new enrollment period. In addition, when Blue Cross changed the coverage rules after employee enrollment had occurred, Stephens assisted City staff with making the necessary adjustments such that no employee would miss the additional opportunities. Stephens also assisted with a last minute enrollment issue staff experienced with one of the insurance companies. Stephens is always there to assist City staff' with any issue, large or small, that occurs between the City staff/City employees and the various insurance companies the City deals with. BUDGET IMPACT: No impact. This item has already been approved for the 2009 and 2010 budgets. RESOLUTION NO. A RESOLUTION TO APPROVE THE 2009 ANNUAL RENEWAL OF THE CONTRACT WITH STEPHENS, INC. IN THE AMOUNT OF $51,950.00 FOR BENEFITS CONSULTING AND INSURANCE BROKERAGE SERVICES 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 attached contract renewal for 2009-2010 with Stephens, Inc. in the annual amount of $51,950.00 for benefits consulting and insurance brokerage services. PASSED and APPROVED this 15'" day of December , 2009. APPROVED: ATTEST: By: By: LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer • City of Fayetteville, Arkansas Ref: RFP 07-08, Benefits Consulting and Insurance Brokerage Services Contract Second Amendment This Second 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"), which was previously extended and modified by that certain First Amendment dated as of July 15, 2008; and WHEREAS, City of Fayetteville and Stephens Insurance, LLC desire to further 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, 2009 and ending on July 17, 2010. 2. For the term of the Agreement running from July 17, 2009 through July 17, 2010, 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 in the Fee Schedule. This amount was determined by continuing the same fees payable for the Base Services that were applicable during the prior renewal term which ran from July 17, 2008 through July 17, 2009. It is the intent of the parties that this Agreement be renewed on an annual basis for two additional years following July 17, 2010. The fees to be paid to Stephens Insurance LLC for the Base Services during each such renewal year shall be increased for each renewal year by a percentage equal to the percentage increase 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 of the preceding year through April of the then -current year. For example, if the CPI -U for April 2010 is 5% higher than the CPI -U for April 2009, then the monthly installments payable for the Base Services during the renewal year from July 17, 2010 through July 17, 2011 shall be $4,545.63 (i.e., $4,329.17 x 105%). It is 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, any April to April percentage increase in the CPI -U shall be rounded to the tenth of a percent (e.g. 3.9%). 3. All capitalized terms used in this Second 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 Second Amendment shall remain unchanged and in full force and effect. WITNESS OUR HANDS THIS DAY OF> as, 2009. STEPHENS INSURANCE, LLC BY: itrizelSignau : CITY OF FAYETTEVILLE, ARKANSAS B ATTEST: By: � A%» G4 fi/,oS®o Panted Name and Tif AST: CONSU C // ` Iiamela Brown wn 11 Center Street, Little Rock, Arkansas 72201 T FIRM'S SECRETARY Jordan, Mayor Sondra Smith, City Clerk n�Il `��.G�FK/TR�'''. kC • °G�tY O,d.S,G•,�c' V ' n FAYETTEVILLE: � :9'y�k4NSGOJ��