HomeMy WebLinkAbout16716 1 RESOLUTION NO. 16,716
2
3 A RESOLUTION TO AMEND LITTLE ROCK, ARK., RESOLUTION NO.
4 16,151 (NOVEMBER 7,2023),TO AUTHORIZE THE CITY MANAGER TO
5 ENTER A CONTRACT WITH JTS FINANCIAL SERVICES, LLC, IN AN
6 AMOUNT NOT TO EXCEED THREE HUNDRED NINETY-FIVE
7 THOUSAND DOLLARS ($395,000.00), PLUS APPLICABLE TAXES AND
8 FEES; FOR EMPLOYEE BENEFIT CONSULTATION SERVICES AND
9 FOR OTHER PURPOSES.
10
11 WHEREAS, Little Rock, Ark., Resolution No. 15, 449 ( May 2021), authorized the City Manager to
12 enter into an agreement with JTS Financial Services,LLC,("JTS"),to provide City Employee Benefit Plan
13 Consulting Services, including but not limited to plan recommendations, data analytics, reconciliation
14 services, web-based benefit administration and enrollment services with Affordable Care Act reporting;
15 and
16 WHEREAS, in addition to providing a dedicated customer service platform, JTS also provides the
17 City with the option to include additional administrative services for Consolidated Omnibus Budget
18 Reconciliation Act of 1985(" COBRA"), Flexible Spending Accounts, Dependent Care Plans; and,
19 WHEREAS, the City entered into a one (1)- year contract with JRS from July 13, 2021, to July 12,
20 2022, with the option to extend the contract for six(6)additional one(1)-year terms; and
21 WHEREAS,the Board of Directors adopted Little Rock, Ark., Resolution No. 15, 698(June 7, 2022),
22 authorizing a one(1)-year extension to May 4,2022.to July 12,2023,with the option to extend the contract
23 for five(5)additional one(1)-year terms and adopted Little Rock, Ark., Resolution No. 15, 969 (May 2,
24 2023), authorizing a one (1) - year extension of the agreement to May 4, 2023, to May 4, 2024, with the
25 option to extend the contract for four(4)additional one(1)-year terms; and
26 WHEREAS,the Board of Directors adopted Little Rock,Ark. Resolution No. 16,295(April 16,2024)
27 authorizing a one (1)-year extension of the agreement to May 4, 2024, to May 4, 2025,with the option to
28 extend the contract for three(3)additional one(1)-year terms; and
29 WHEREAS,the Board of Directors adopted Little Rock,Ark. Resolution No. 16,566(April 15,2025)
30 authorizing a one(1)-year extension of the agreement to May 4, 2025,to May 4,2026, with the option to
31 extend the contract for two(2)additional one(1)-year terms; and
32 WHEREAS, the City wishes to amend Resolution No. 16, 566, to allow the City to transition to a
33 partially self-insured medical plan in 2026;and
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1 WHEREAS, the cost for the services shall not exceed Three Hundred Ninety-Five Thousand
2 Dollars($395,000.00), plus applicable taxes and fees;
3 NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE
4 CITY OF LITTLE ROCK,ARKANSAS:
5 Section 1. The City Manager is authorized to enter into an agreement in the amount of Three
6 Hundred Ninety-Five Thousand Dollars ($395,000.00), plus applicable taxes and fees, with JTS Financial
7 Services, LLC ( JTS), to provide Consulting Services by reviewing the City' s Employee Benefit Plan
8 options and making recommendations for Employee Benefit Plans and associated items, i.e., Data
9 Analytics, Reconciliation Services, Web- Based Benefit Administration and Enrollment Services, and
10 Affordable Care Act Reporting. The City has the option to have JTS perform additional Administrative
11 Services for it regarding COBRA Administration, Flexible Spending Account Administration and
12 Dependent Care Plan Administration and to provide a Dedicated Customer Service Platform.
13 Section 2. JTS will provide these consulting and Administrative Services for Data Analytics,
14 Reconciliation Services,Web-Based Benefit Administration and Enrollment Services,and Affordable Care
15 Act Reporting, and for any additional items the City opts for, from May 4, 2021, to May 4, 2022. The
16 amount the City will pay JTS for first year of this contract for said services will be in an amount not to
17 exceed Ninety-Five Thousand Dollars($95,000.00).
18 Section 3. The City will have the option to extend its contract with JTS for two (2)additional one
19 (1)-year terms.
20 Section 4.If the City transitions to a partially Self-Insured Medical Plan in 2026, JTS will only be
21 compensated as a percentage of the savings the City derived from prescription rebates and the reduction of
22 administrative plan expenses. JTS will receive incentive compensation of 20% of medical plan savings
23 based on the 2025 fully insured medical plan costs versus a partially self-insured plan structure in 2026,an
24 amount not to exceed Two Hundred Thousand Dollars($200,000.00).
25 Section 5. In the event the City decides to remain fully insured, JTS will not receive any standard
26 commissions for medical plan consulting services. However, JTS will retain the ability to receive
27 commissions from Dental, Vision, Long- Term Disability, Life Insurance, Accidental Death and
28 Dismemberment Insurance and any other voluntary benefit insurance product.
29 Section 6. In the event the City extends this contract with JTS and the City maintains the partially
30 Self Insured Medical Plan,the City may opt to compensate JTS based on a per participating employee per
31 month charge of Five Dollars ($5.00), assuming Medical Plan Consulting Services only, in an amount not
32 to exceed Two Hundred Thousand Dollars($200,000.00).
33 Section 7.If the City decides that it wants JTS to provide a Dedicated Customer Service Platform
34 for all City employee benefits, the City will provide JTS additional compensation based on a per
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1 participating employee per month charge of Four Dollars($4.00), in an amount not to exceed One Hundred
2 Thousand Dollars($100, 000. 00).
3 Section 8. The amount of the contract between the City and JTS shall not exceed Three Hundred
4 Ninety-Five Thousand Dollars($395,000.00)for each year the parties enter into the contract
5 Section 9. Funds are available from Accounting Unit#101003 and Account#63211.
6 Section 10.Severability. In the event any portion of this Resolution is declared or adjudged to be
7 invalid or unconstitutional, such declaration or adjudication shall not affect the remaining portions of this
8 Resolution, which shall remain in full force and effect as if the portion so declared or adjudged invalid or
9 unconstitutional was not originally a part of this Resolution.
10 Section 11.Repealer.All ordinances and resolutions, and parts thereof, which are in conflict with
11 any provision of this ordinance are hereby repealed to the extent of such conflict.
12 ADOPTED: June 3,2025
13 ATTEST: APPROVED:
14 _
15
16 Allison Segars,City Frank Scott,Jr.,Mayor
17 APPROVED AS TO LEGAL FORM:
18
19 e'
20 Thomas M. Carpenter,City Attor y
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