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HomeMy WebLinkAbout142-10 RESOLUTIONRESOLUTION NO. 142-10 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 3rd day of August, 2010. APPROVED: By: L ONELD J 1 J' N, Mayor ATTEST: By: SONDRA E. SMITH, City Clerk/Treasurer 0eanrinreoo > V• ••�; •• • : FAY ETT EVI LLE ; ,'-.7,P,<, K•A N P• J ��`Ooe�GT0IA c%%%%% City of Fayetteville, Arkansas Ref: RFP 07-08, Benefits Consulting and Insurance Brokerage Services Contract Third Amendment This Third 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 by that certain Second Amendment dated as of July 15, 2009; 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 a period of one year, beginning on July 17, 2010 and ending on July 17, 2011. 2. For the period from July 17, 2010 through July 17, 2011, the City of Fayetteville shall pay Stephens Insurance, LLC twelve (12) equal monthly installments of $4,424.33 ($53,092 on an annualized basis) for the Base Services described in the Fee Schedule. This amount represents an increase of 2.2% over the fees paid to Stephens Insurance, LLC during the immediately preceding renewal term. It is the intent of the parties that on July 17, 2011 this Agreement shall be renewed for an additional renewal year. The fees payable for the Base Services during such renewal year shall be increased 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 2010 through April 2011. For example, if the CPI -U for April 2011 is 5% higher than the CPI -U for April 2010, then the monthly installments payable for the Base Services during the renewal year from July 17, 2011 through July 17, 2012 shall be $4,645.55 (i.e., $4,424.33 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 such 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. 3. All capitalized terms used in this Third 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 Third Amendment shall remain unchanged and in full force and effect. WITNESS OUR HANDS THIS 3rO DAY OF J 0. STEPHENS I SURANCE, LLC BY: / /./1,. 7 or' .Ar S' .nate Printed Nam6 and Title CITY OF FAYETTEVILLE, ARKANSAS B ATTEST. By: 6/10J 6 Sondra Smith, ity Clerk e< Lio Jordan, Mayor AT ST: CONSIJJ ANT FIRM' ECRETARY tak-C1--13 Pamela Brown 111 Center Street, Little Rock, Arkansas 72201 •••\,- • %r• 1 . � •�_ cv• •. FAYETTEVILLE: Missy Leflar Submitted By City of Fayetteville Staff Review Form City Council Agenda Items and Contracts, Leases or Agreements 8/3/2010 City Council Meeting Date Agenda Items Only Human Resources Division Action Required: Finance & Internal Services Department Staff recommends the annual renewal of the 2007 five year contract with Stephens, Inc. for benefits brokerage services. $53,092 Cost of this request 1010.1220.5314.00 Account Number N/A Project Number 54, 000.00 Category / Project Budget Personnel Services Program Category / Project Name Citywide Funds Used to Date Program / Project Category Name 54,000.00 Citywide Remaining Balance Fund Name Budgeted Item X Budget Adjustment Attached sko/laze-1044__0 Depart i • Director Da ( 7-(G-- ib Date orney Fina nd Internal Services Director Date l'141 Date Previous Ordinance or Resolution # Original Contract Date: Original Contract Number: Receivarrdr-1 0 PO3 : 00 RCVD Clerk's Office Mayor Comments: Revised January 15, 2009 aF�eville THE CITY OF FAYETTEVILLE, ARKANSAS DEPARTMENT CORRESPONDENCE www.accessfayetteville.org CITY COUNCIL AGENDA MEMO To: Mayor Lioneld Jordan and City Council members Thru: Paul Becker, Director of Finance and Internal Services From: Missy Leflar, Human Resources Director A4 Date: July 15, 2010 Subject: Annual renewal of 2007 Five Year Contract with Stephens, Inc. PROPOSAL: Staff recommends that the City Council approve the 2010 annual renewal of the 2007 Five Year Contract previously approved by the City Council. Per prior agreements anticipating increases tied to the Consumer Price Index, this renewal would increase the price 2.2% (an increase of $95.16 per month), per the attached Consumer Price Index documentation. A copy of the proposed renewal agreement is also attached and labeled "RFP 07-08, Benefits Consulting and Insurance Brokerage Services Contract, Third Amendment". RECOMMENDATION: Staff recommends approval of the annual renewal of this contract. Stephens, Inc. once again provided valuable benefits brokerage services for the City and also assisted staff in individually assisting employees so they could obtain maximum coverage their benefits. Although health insurance premiums may go up 2% (subject to Council approval), they could have gone up substantially more but for Stephens, Inc.'s negotiating efforts. Last year Stephens oversaw negotiations for an employee paid life insurance "takeover" from a company which was not performing well for employees to one that has provided superior customer service and reduced legal risk. Thanks to these efforts, during 2010 the takeover transition has gone extremely smoothly (not the case when the City previously had a life insurance takeover supervised by a different benefits broker.) Stephens is similarly assisting with the proposed "takeover" concerning the City paid life insurance, City paid long term disability, and employee paid short term disability. Further, when Blue Cross unexpectedly changed the criteria for insuring employee dependents after the City's annual benefits enrollment for 2010 had already occurred, Stephens jumped in and assisted City staff with the subsequent unscheduled "mini -enrollment" so that no employee would miss coverage for their children. The fact of Health Care Reform is common knowledge but the detailed regulations governing how employers should handle it is not. Employers who fail to comply with the complicated tangle of Health Care Reform laws will be subject to expensive government penalties. However, the federal regulations have not yet been completely written, so the guidance keeps changing. Stephens has proactively helped City staff with Heatlh Care Reform by hosting seminars, providing ongoing educational materials on new developments, answering daily questions, attending City staff meetings, and proofreading enrollment flyers being sent to employees. BUDGET IMPACT: Limited impact. This item has already been approved for the 2010 budget, except for the 2.2% increase ($95.16 per month) occurring in the latter half of this year. Subject to Council approval it will be a budgeted item for 2011. RESOLUTION NO. 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 3`d day of August, 2010. APPROVED: ATTEST: By: By: LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer Apr t a:D(© Vefort Table 1. Consumer Price Index for All Urban Consumers (CPI -U): U.S. city average, by expenditure category and commodity and service group (1982-84=100, unless otherwise noted) Item and group Relative importance, December 2009 Unad usted indexes Unadjusted percent change to Apr. 2010 from- Seasonally adjusted percent change from - Mar. 2010 Apr. 2010 Apr. 2009 Mar. 2010 Jan. to Feb. Feb. to Mar. Mar. to Apr. Expenditure category All items 100.000 217.631 218.009 0.2 0.0 0.1 -0.1 All items (1967=100) - 651.925 653.059 - - - - Food and beverages 14.795 219.378 219.536 .5 .1 .0 .2 .2 Food 13.738 219.032 219.218 .5 .1 .1 .2 .2 Food at home 7.801 215.623 215.737 .0 .1 .1 .5 .2 Cereals and bakery products 1.108 250.930 250.425 -.9 -.2 .0 -.1 -.3 Meats, poultry, fish, and eggs 1.745 202.812 205.178 -.3 1.2 .4 .2 1.4 Dairy and related products 1 .820 198.814 197.308 .1 -.8 -.1 .0 -.8 Fruits and vegetables 1.153 280.431 279.272 1.8 -.4 -.1 3.4 -.2 Nonalcoholic beverages and beverage materials .952 162.666 162.128 -.5 -.3 -.4 .0 .4 Other food at home 2.023 190.991 191.017 -.2 .0 .2 -.2 .0 Sugar and sweets .295 199.917 200.775 1.8 .4 1.4 -1.1 .1 Fats and oils .232 198.567 197.749 -1.4 -.4 -.1 -.5 .7 Other foods 1.496 204.952 204.947 -.4 .0 .0 .0 -.2 Other miscellaneous foods 1 2 .439 122.318 122.298 -.5 .0 -.3 .9 .0 Food away from home.' 5.937 224.991 225.276 1.1 .1 .1 .0 .1 Other food away from home.' 2 .326 158.657 158.738 2.3 .1 .7 .1 .1 Alcoholic beverages 1.056 222.521 222.299 1.2 -.1 -.2 .0 .0 Housing 41.960 216.023 215.798 -.6 -.1 .0 .0 -.1 Shelter 32.289 248.052 248.031 -.7 .0 .0 -.1 .0 Rent of primary residence 3 5.966 249.089 249.012 .0 .0 .0 .1 .0 Lodging away from home 2 .769 133.075 134.331 -2.4 .9 .1 .3 1.4 Owners' equivalent rent of residences 3 4 25.206 256.272 256.170 -.2 .0 .0 -.1 .0 Owners' equivalent rent of primary residence 3 4 23.593 256.266 256.165 -.2 .0 .0 -.1 .0 Tenants' and household insurance 1 2 .347 124.416 124.879 3.5 .4 .1 .0 .4 Fuels and utilities 5.081 212.295 211.726 2.2 -.3 .5 1.1 -.2 Household energy 4.028 187.864 187.054 1.2 -.4 .4 1.3 -.4 Fuel oil and other fuels 1 .276 276.027 278.080 21.9 .7 -1.3 -.5 .7 Gas (piped) and electricity 3 3.752 191.280 190.284 -.2 -.5 .5 1.4 -.5 Water and sewer and trash collection services 2 1.052 168.521 169.116 6.6 .4 .7 .5 .6 Household fumishings and operations 4.590 126.750 125.997 -2.8 -.6 -.4 -.4 -.5 Household operations 1 2 .781 149.999 150.068 -.5 .0 .1 .2 .0 Apparel 3.695 122.073 122.143 -.9 .1 -.7 -.4 -.7 Men's and boys' apparel .903 113.104 113.692 -3.0 .5 -.5 -.7 -.6 Women's and gids' apparel 1.580 111.730 110.816 -.9 -.8 -.9 -.5 -1.5 Infants' and toddlers' apparel .196 115.920 116.469 -.5 .5 -1.1 .4 .2 Footwear .721 128.525 129.432 1.1 .7 -.5 -1.0 .0 Transportation 16.685 192.130 193.994 12.8 1.0 -.1 -.1 -.5 Private transportation 15.497 187.796 189.503 13.1 .9 -.1 -.1 -.7 New and used motor vehicles 2 6.386 97.032 96.815 4.8 -.2 .4 .2 -.2 New vehicles 3.573 138.600 138.174 2.5 -.3 .1 .1 .0 Used cars and trucks 2.012 140.797 141.315 16.6 .4 .7 .5 .2 Motor fuel 4.525 237.671 244.801 38.1 3.0 -1.3 -1.1 -2.3 Gasoline (all types) 4.337 237.356 244.347 38.3 2.9 -1.4 -.8 -2.4 Motor vehicle parts and equipment 1 .401 135.523 135.701 .8 .1 .3 -.1 .1 Motor vehicle maintenance and repair 1 1.167 246.624 247.355 1.9 .3 .2 .3 .3 Public transportation 1.187 244.766 249.135 8.4 1.8 -.1 .5 1.7 Medical care 6.513 387.142 387.703 3.6 .1 .5 .3 .2 Medical care commodities 1 1.611 314.023 314.535 3.5 .2 .8 .4 .2 Medical care services 4.902 409.687 410.256 3.7 .1 .4 .3 .3 Professional services 2.796 326.206 327.015 2.9 .2 .2 .0 .2 See footnotes at end of table. 12 CPI Detailed Report -April 2010 /kr (J®oel Re-roft Table 1. Consumer Price Index for All Urban Consumers (CPI -U): U.S. city average, by expenditure category and commodity and service group (1982-84=100, unless otherwise noted) Item and group Relative importance, December 2008 Unad usted indexes Unadjusted percent change to Apr. 2009 from- Seasonally adjusted percent change from - Mar. 2009 Apr. 2009 Apr. 2008 Mar. 2009 Jan. to Feb. Feb. to Mar. Mar. to Apr. Expenditure category All items 100.000 212.709 213.240 -0.7 0.2 0.4 -0.1 0.0 All items (1967=100) - 637.182 638.771 - - - - - Food and beverages 15.757 218.794 218.364 3.3 -.2 -.1 -.1 -.2 Food 14.629 218.600 218.162 3.3 -.2 -.1 -.1 -.2 Food at home 8.156 217.110 215.783 2.3 -.6 -.4 -.4 -.6 Cereals and bakery products 1.150 253.698 252.709 5.3 -.4 -.5 -.2 -.7 Meats, poultry, fish, and eggs 1.898 206.348 205.699 2.5 -.3 -.1 -.9 .0 Dairy and related products 1 .910 199.687 197.124 -5.1 -1.3 -2.4 -2.4 -1.3 Fruits and vegetables 1.194 274.759 274.297 .6 -.2 .4 .2 .0 Nonalcoholic beverages and beverage materials .982 165.656 162.889 2.0 -1.7 -.4 1.0 -1.0 Other food at home 2.022 192.234 191.352 5.3 -.5 -.3 .0 -.8 Sugar and sweets .300 197.137 197.301 6.7 .1 .0 .2 -.5 Fats and oils .241 204.776 200.464 5.2 -2.1 -1.1 .1 -1.4 Other foods 1.481 206.367 205.734 5.0 -.3 -.2 .0 -.8 Other miscellaneous foods 1 2 .433 122.402 122.883 3.7 .4 -1.2 -.1 .4 Food away from home 1 6.474 222.216 222.905 4.6 .3 .3 .1 .3 Other food away from home 1 2 .314 154.414 155.099 4.3 .4 .9 -.2 .4 Alcoholic beverages 1.127 219.999 219.671 2.9 -.1 -.2 .1 -.1 Housing 43.421 217.374 217.126 1.0 -.1 .0 -.1 -.1 Shelter 33.200 249.597 249.855 1.6 .1 .0 .0 .2 Rent of primary residence 3 5.957 248.639 248.899 3.1 .1 .1 .2 .2 Lodging away from home 2 2.478 137.715 137.700 -5.9 .0 -1.8 -2.4 .5 Owners' equivalent rent of primary residence 3 4 24.433 256.321 256.622 2.1 .1 .1 .2 .1 Tenants' and household insurance 1 2 .333 120.737 120.675 1.9 -.1 .2 .0 -.1 Fuels and utilities 5.431 210.501 207.175 -2.9 -1.6 -.1 -1.4 -1.7 Household energy 4.460 188.736 184.903 -4.7 -2.0 -.2 -1.8 -2.2 Fuel oil and other fuels .301 230.837 228.107 -33.5 -1.2 -1.8 -7.7 -2.1 Gas (piped) and electricity 3 4.159 194.752 190.686 -1.9 -2.1 .0 -1.4 -2.2 Water and sewer and trash collection services 2 .971 158.052 158.698 6.1 .4 .1 .4 .6 Household furnishings and operations 4.790 129.669 129.654 1.8 .0 .2 .3 .0 Household operations 1 2 .781 150.914 150.809 3.4 -.1 -.2 .5 -.1 Apparel 3.691 122.545 123.208 .9 .5 1.3 -.2 -.2 Men's and boys' apparel .923 117.748 117.195 .5 -.5 2.8 -.3 -1.7 Women's and girls apparel 1.541 111.079 111.871 .6 .7 .8 -.7 .2 Infants' and toddlers' apparel .183 115.548 117.084 .6 1.3 -1.1 .6 1.3 Footwear .688 126.707 128.057 1.5 1.1 .7 .2 .4 Transportation 15.314 169.647 171.987 -13.4 1.4 1.9 -1.1 -.4 Private transportation 14.189 165.023 167.516 -13.9 1.5 2.2 -1.1 -.3 New and used motor vehicles 2 6.931 92.109 92.381 -1.7 .3 .5 .0 .4 New vehicles 4.480 134.611 134.863 -.2 .2 .8 .6 .4 Used cars and trucks 1.628 121.061 121.213 -11.4 .1 -1.7 -1.7 -.1 Motor fuel 3.164 168.404 177.272 -39.8 5.3 7.6 -4.4 -2.6 Gasoline (all types) 2.964 167.826 176.704 -39.5 5.3 8.3 -4.0 -2.8 Motor vehicle parts and equipment 1 .382 134.484 134.640 6.8 .1 .5 .3 .1 Motor vehicle maintenance and repair 1 1.188 242.118 242.649 5.3 .2 .3 .2 .2 Public transportation 1.125 230.735 229.827 -5.9 -.4 -1.9 -1.0 -.8 Medical care 6.390 373.189 374.170 3.0 .3 .3 .2 .4 Medical care commodities 1.625 302.908 303.979 2.4 .4 .6 .2 .3 Medical care services 4.765 394.837 395.753 3.3 .2 .3 .2 .4 Professional services 2.702 317.460 317.661 2.7 .1 .1 .0 .1 Hospital and related services 3 1.545 560.995 564.785 6.5 .7 .8 .6 .9 See footnotes at end of table. 11 CPI Detailed Report -April 2009