14108 1 RESOLUTION NO. 14,108
2
3 A RESOLUTION TO AUTHORIZE THE CITY MANAGER TO INITIATE
4 A CONTRACT WITH LINCOLN FINANCIAL SERVICES TO PROVIDE
5 LONG-TERM DISABILITY INSURANCE COVERAGE FOR NON-
6 UNIFORM CITY EMPLOYEES FOR A TWENTY-FOUR (24)-MONTH
7 PERIOD EFFECTIVE MAY 1,2015; AND FOR OTHER PURPOSES.
8
9 WHEREAS, in February 2015, a Request for Proposal(RFP)for Long-Term Disability Insurance for
10 Non-Uniform City Employees was issued with a deadline of March 25,2015; and,
11 WHEREAS,at least six(6)recognized carriers of that coverage were notified directly of the RFP and
12 others made aware by advertisement. Multiple carriers declined to bid based on the utilization of our group;
13 and,
14 WHEREAS, two (2) responses were received. The incumbent carrier, Lincoln Financial Services
15 offered a one(1)-year renewal of the current policy but with a substantial increase in premium rates; and,
16 WHEREAS,the proposed premium rate increase is 25.5%which is well below the rate justified by the
17 City's group utilization; and,
18 WHEREAS, Lincoln Financial Services has agreed to a multi-year guarantee agreed to extend the
19 proposed rate for a two(2)-year period; and,
20 WHEREAS,the other proposal submitted by Met Life also offered a multi-year arrangement but at a
21 substantially higher premium rate; and,
22 WHEREAS,Lincoln Financial Services was selected after review of the responses to the previous RFP'
23 and was determined to have offered the most attractive package of premium and benefits; and,
24 WHEREAS, there have been no service issues and previous renewals have been at or below rates
25 expected based on the City's group utilization; and;
26 WHEREAS,amounts required for this coverage were budgeted in the 2015 budget line item for Long-
27 Term Disability insurance coverage; and
28 WHEREAS, it is recommended that the policy to provide Long-Term Disability benefits for Non-
29 Uniform employees be awarded to Lincoln Financial Services for a twenty-four(24)-month period effective
30 May 1,2015.
31 NOW,THEREFORE,BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY
32 OF LITTLE ROCK,ARKANSAS:
33 Section 1. The Board of Directors hereby authorizes the City Manager to initiate a contract with
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1 Lincoln Financial to provide Long-Term Disability insurance coverage for Non-Uniform City Employees
2 for a twenty-four(24)-month period effective May 1,2015. Future renewals are at the City's option based
3 on analysis of renewal proposals
4 Section 2. Severability. In the event any title, section, paragraph, item, sentence, clause, phrase, or
5 word of this resolution is declared or adjudged to be invalid or unconstitutional, such declaration or
6 adjudication shall not affect the remaining portions of the resolution which shall remain in full force and
7 effect as if the portion so declared or adjudged invalid or unconstitutional were not originally a part of the
8 resolution.
9 Section 3. Repealer. All laws, ordinances,resolutions,or parts of the same,that are inconsistent with
10 the provisions of this resolution, are hereby repealed to the extent of such inconsistency.
11 ADOPTED: April 21,2015
12 ATTESAft APPROVED.
13 111111
16, /
14
15 Su•al L. !ley,City Clerk Mark Stodola,Mayor
16 AP' 0\II 1 AS TO LEGAL FORM:
17
18 40.' h. - IAA
19 Thomas M. Carpenter,C ty Attorney
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