13919 RESOLUTION NO. 13,919
2
3 A RESOLUTION TO AUTHORIZE THE CITY MANAGER TO ENTER
4 INTO A CONTRACT FOR A TWELVE (12)-MONTH EXTENSION OF
5 THE CURRENT POLICY FOR WORKERS' COMPENSATION STOP-
6 LOSS COVERAGE WITH SAFETY NATIONAL EFFECTIVE JULY 1,
7 2014; AND FOR OTHER PURPOSES.
8
9 WHEREAS, the City has operated a self-funded Workers' Compensation program since 1985 and
10 relies upon Stop-Loss coverage to cap the cost of individual claims; and,
11 WHEREAS, the Arkansas Workers' Compensation Commission requires that self-insured programs
12 purchase this Stop-Loss coverage; and,
13 WHEREAS, Safety National, the incumbent carrier, has offered an additional one-year extension of
14 the current policy with an approximate 12% increase in current premium rates; however, options to
15 reduce the rate result in substantially greater risk to the Self-Funded Plan; and,
16 WHEREAS, Safety National was selected after review of the responses to the most recent RFP and
17 was determined to have offered the most attractive package of premium and coverage;
18 WHEREAS, this renewal represents the second year of a maximum seven (7)-year policy period
19 noted in the RFP.
20 WHEREAS, NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS
21 OF THE CITY OF LITTLE ROCK,ARKANSAS:
22 Section 1. The Board of Directors hereby authorizes the City Manager to enter into a contract with
23 Safety National to provide Workers' Compensation Stop-Loss coverage to the City for one (1)-year,
24 effective July 1, 2014, for a total premium of Two Hundred Twenty-Four Thousand, Five Hundred
25 Twenty-Seven Dollars($224,527.00).
26 Section 2. Funding for the renewal is provided in the budget line items for the Workers'
27 Compensation Program.
28 Section 3. Severability. In the event any title, section, paragraph, item, sentence, clause, phrase, or
29 word of this resolution is declared or adjudged to be invalid or unconstitutional, such declaration or
30 adjudication shall not affect the remaining portions of the resolution, which shall remain in full force and
31 effect as if the portion so declared or adjudged invalid or unconstitutional were not originally a part of the
32 resolution.
33 Section 4. Repealer. All ordinances, resolutions, bylaws, and other matters inconsistent with this
34 resolution are hereby repealed to the extent of such inconsistency.
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I ADOPTED: July 1,2014
2 A S • APPROVED:
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i/ / /
5 tusan a �.J City Clerk Mafk Stodola,Mayor
6 �J
7 APPRO ED AS TO LEGAL FORM:
89 e27"40-24....--07 LA
10 Thomas M. Carpenter,City Ai i rney
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