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15449 1 RESOLUTION NO. 15,449 2 3 A RESOLUTION TO AUTHORIZE THE CITY MANAGER TO ENTER 4 INTO A CONTRACT WITH JTS FINANCIAL SERVICES, LLC, IN AN 5 AMOUNT NOT TO EXCEED THREE HUNDRED NINETY-FIVE 6 THOUSAND ($395,000.00),FOR EMPLOYEE BENEFIT CONSULTATION 7 SERVICES; AND FOR OTHER PURPOSES. 8 9 WHEREAS, the City of Little Rock, Arkansas, solicited qualifications to hire a firm to review the 10 City's Employee Benefit Plan options and to make recommendations for an Employee Medical Plan and 11 associated items, i.e., Data Analytics, Reconciliation Services, Web-Based Benefit Administration and 12 Enrollment Services,and Affordable Care Act Reporting; and, 13 WHEREAS, the City of Little Rock chose JTS Financial Services, LLC (JTS), after reviewing 14 submitted proposals;and, 15 WHEREAS, after consulting with JTS it was determined that the City has the option to have JTS 16 perform additional Administrative Services for Consolidated Omnibus Budget Reconciliation Act of 1985 17 (COBRA) Administration, Flexible Spending Account Administration and Dependent Care Plan 18 Administration and to provide a Dedicated Customer Service Platform; and, 19 WHEREAS, the City will have the option to extend this contract for six (6) additional one (1)-year 20 terms and the City may opt to purchase some of these services or the Dedicated Customer Service Platform 21 after the first year of the contract with JTS should it decide to extend the contract;and, 22 WHEREAS,for the first year of the contract between the City and JTS,regardless of whether the City 23 opts to extend the contract and regardless of which items or services the City purchases from JTS, the 24 amount of the contract shall not exceed Three Hundred Ninety-Five Thousand Dollars($395,000.00). 25 WHEREAS, professional services of this nature are crucial to ensure that the City will be able to 26 provide its employees with adequate health care options while maintaining City budgetary requirements. 27 NOW,THEREFORE,BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY 28 OF LITTLE ROCK,ARKANSAS: 29 Section 1. The City Manager is hereby authorized to enter into an agreement with JTS Financial 30 Services, LLC (JTS), to provide Consulting Services by reviewing the City's Employee Benefit Plan 31 options and making recommendations for Employee Benefit Plans and associated items, i.e., Data 32 Analytics, Reconciliation Services, Web-Based Benefit Administration and Enrollment Services, and 33 Affordable Care Act Reporting. The City has the option to have JTS perform additional Administrative 34 Services for it regarding COBRA Administration, Flexible Spending Account Administration and 35 Dependent Care Plan Administration and to provide a Dedicated Customer Service Platform. [Page 1 of 3] 1 Section 2. JTS will provide these consulting and Administrative Services for Data Analytics, 2 Reconciliation Services,Web-Based Benefit Administration and Enrollment Services,and Affordable Care 3 Act Reporting, and for any additional items the City opts for, from May 4, 2021, to May 4, 2022. The 4 amount the City will pay JTS for first year of this contract for said services will be in an amount not to 5 exceed Ninety-Five Thousand Dollars($95,000.00). 6 Section 3.The City will have the option to extend its contract with JTS for six(6) additional one(1)- 7 year terms. 8 Section 4. If the City transitions to a partially Self-Insured Medical Plan in 2022, the City will only 9 compensate JTS in an amount that is a percentage of the savings the City derives from prescription rebates 10 and the reduction of administrative plan expenses as a result of the City's implementation of JTS' 11 recommendations. In the event this transition occurs the City will compensate JTS in the amount of 20% 12 of medical plan savings based on the City's 2021 Fully-Insured Medical Plan costs (in lieu of a partially 13 self-insured plan structure), in an amount not to exceed Two Hundred Thousand Dollars ($200,000.00). 14 Any additional plan costs the City incurs as a result of the integration of clinically integrated networks will 15 not be held against JTS when comparing the City's 2022 plan costs to the City's 2021 plan costs with regard 16 to plan savings calculation. 17 Section 5. In the event the City decides to remain fully insured, JTS will not receive any standard 18 commissions for medical plan consulting services. However, JTS will retain the ability to receive 19 commissions from Dental, Vision, Long-Term Disability, Life Insurance, Accidental Death and 20 Dismemberment Insurance and any other voluntary benefit insurance product. 21 Section 6.In the event the City extends this contract with JTS and the City maintains the partially Self- 22 Insured Medical Plan,the City may opt to compensate JTS based on a per participating employee per month 23 charge of Five Dollars ($5.00), assuming Medical Plan Consulting Services only, in an amount not to 24 exceed Two Hundred Thousand Dollars($200,000.00). 25 Section 7. If the City decides that it wants JTS to provide a Dedicated Customer Service Platform for 26 all City employee benefits,the City will provide JTS additional compensation based on a per participating 27 employee per month charge of Four Dollars ($4.00), in an amount not to exceed One Hundred Thousand 28 Dollars($100,000.00). 29 Section 8.The amount of the contract between the City and JTS shall not exceed Three Hundred Ninety 30 Five Thousand Dollars($395,000.00)for each year the parties enter into the contract. 31 Section 9. Severability. In the event any title, section, paragraph, item, sentence, clause, phrase, or 32 word of this resolution is declared or adjudged to be invalid or unconstitutional, such declaration or 33 adjudication shall not affect the remaining portions of the resolution which shall remain in full force and 34 effect as if the portion so declared or adjudged invalid or unconstitutional were not originally a part of the 35 resolution. [Page 2 of 3] 1 Section 10. Repealer.All laws, ordinances, resolutions, or parts of the same,that are inconsistent with 2 the provisions of this resolution, are hereby repealed to the extent of such inconsistency. 3 ADOPTED: May 4,2021 4 ATTEST. APPROVED: 5 6 7 Susan 144 ilhity Clerk Frank Scott,Jr., Ma 8 APPROV I A 0 LEGAL FORM: 9 74(- 10 AAA 14 ,. 11 Thomas M. Carpenter, City Attorne! 12 /I 13 // 14 // 15 // 16 // 17 // 18 // 19 // 20 // 21 // 22 // 23 // 24 // 25 // 26 // 27 // 28 // 29 // 30 // 31 // 32 // 33 // 34 // 35 // 36 // Page 3 of 31