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Home My WebLink About17024 1 RESOLUTION NO. 17,024 2 3 A RESOLUTION TO AMEND LITTLE ROCK, ARK. RESOLUTION NO. 4 16,151 (NOVEMBER 7, 2023) TO AUTHORIZE THE CITY MANAGER 5 TO ENTER A CONTRACT WITH JTS FINANCIAL SERVICES, LLC, IN 6 AN 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 13 Plan Consulting Services, including but not limited to plan recommendations, data analytics, 14 reconciliation services, web-based benefit administration and enrollment services with Affordable Care 15 Act reporting; 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 I 985(" COBRA"),Flexible Spending Accounts,Dependent Care Plans; and, 19 WHEREAS, the City entered into a one (1)- year contract with JTS 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 23 contract for five(5)additional one(1)-year terms and adopted Little Rock, Ark., Resolution No. 15, 969 24 (May 2, 2023), authorizing a one (1) - year extension of the agreement to May 4, 2023, to May 4, 2024, 25 with the 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, 27 2024) authorizing a one (1)- year extension of the agreement to May 4, 2024, to May 4, 2025, with the 28 option to 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, 30 2025) authorizing a one (1)- year extension of the agreement to May 4, 2025, to May 4, 2026, with the 31 option to 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 2027;and [Page 1 of 31 1 WHEREAS, the cost for the services shall not exceed Three Hundred Ninety-Five Thousand Dollars 2 ($395,000.00), plus applicable taxes and fees; 3 NOW,THEREFORE,BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY 4 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 15 Care Act Reporting, and for any additional items the City opts for, from May 5, 2026, to May 6, 2027. 16 The amount the City will pay JTS for this contract for said services will be in an amount not to exceed 17 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(1)- 19 year terms. 20 Section 4. If the Board of Directors decides to transitions to a partially Self-Insured Medical Plan in 21 2027, JTS will only be compensated as a percentage of the savings the City derived from prescription 22 rebates and the reduction of administrative plan expenses. JTS will receive incentive compensation of 23 20% of medical plan savings based on the 2026 fully insured medical plan costs versus a partially self- 24 insured plan structure in 2027,an 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 Board of Directors decides that it wants JTS to provide a Dedicated Customer 34 Service Platform for all City employee benefits, the City will provide JTS additional compensation based [Page 2 of 3] 1 on a per participating employee per month charge of Four Dollars ($4.00), in an amount not to exceed 2 One Hundred 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 with the 5 additional services adopted. 6 Section 2. Funds are available from Accounting Unit No. 101003 and Account No 63211. 7 Section 3. Severability. In the event any portion of this Resolution is declared or adjudged to be 8 invalid or unconstitutional, such declaration or adjudication shall not affect the remaining portions of this 9 Resolution, which shall remain in full force and effect as if the portion so declared or adjudged invalid or 10 unconstitutional was not originally a part of this Resolution. 11 Section 4. Repealer. All ordinances and resolutions, and parts thereof, which are in conflict with 12 any provision of this ordinance are hereby repealed to the extent of such conflict. 13 ADOPTED: April 21,2026 14 ATTEST: APPROVED: 15 16 _ 2‘y, - 17 Allison Segars,City Cle Frank Scott,Jr.,Mayor 18 APPROVED AS TO LEGAL FORM: 19 20 61► ' �L 21 Thomas M. Carpenter,City Attorne 22 // 23 // 24 // 25 // 26 // 27 // 28 // 29 // 30 // 31 // 32 // 33 // 34 // [Page 3 of 3]