14150 1 RESOLUTION NO. 14,150
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 2015; 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 a renewal effective July 1, 2015,
14 with a 7.4% change in premium rate; and,
15 WHEREAS, options to reduce the rate result in substantially greater risk to the Self-Funded Plan;
16 and,
17 WHEREAS,this renewal represents the third year of a maximum (7)-year policy period noted in the
18 most recent RFP;
19 WHEREAS, NOW, THEREFORE,,BE IT RESOLVED BY THE BOARD OF DIRECTORS
20 OF THE CITY OF LITTLE ROCK,ARKANSAS:
21 Section 1. The Board of Directors hereby authorizes the City Manager to enter into a contract with
22 Safety National to provide Workers' Compensation Stop-Loss Coverage to the City for one (1)-year,
23 effective July 1, 2015, with an initial deposit premium of Two Hundred Forty-Three Thousand, Five
24 Hundred Thirteen Dollars ($243,513.00), with the final amount subject to audit at the end of the policy
25 year.
26 Section 2. Funds for the renewal coverage were provided in the 2015 Budget line item for the
27 Workers' 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34 resolution are hereby repealed to the extent of such inconsistency.
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1 ADOPTED: July 7,2015
2 A APPROVED:
3 It*
4 , th
5 'us• i •y, City Clerk Mark Stodola,Mayor
6 APP I 1 AS TO LEGAL FORM:
7
8
9 Thomas M. Carpenter, ity Att ney
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