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AN ORDINANCE WAIVING COMPETITIVE BIDDING FOR GROUP HEALTH AND LIFE INSURANCE COVERAGE
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WHEREAS, it is the desire of the City of Jonesboro, Arkansas to extend the current group health and life insurance contract in order to conform with the City's Section 125 plan and,
WHEREAS, Arkansas Blue Cross and Blue Shield has offered to extend said contract to expire on December 31, 1997 and
WHEREAS, Arkansas Blue Cross and Blue Shield has proposed a rate increase of fourteen percent, with new rates for health coverage of $160.51 monthly for individual coverage and $344.85 monthly for family coverage, with group no change to existing group life insurance premiums and
WHEREAS, it has been determined by the City Council that competitive bidding for this contract is not feasible nor practical due to the change in plan year and due to the group's experience in the existing plan year.
THEREFORE BE IT ORDAINED as follows:
SECTION 1: That an extension of the current contract is necessary in order to conform with the city's Section 125 plan and it is deemed not feasible or practical to place said extension for public bids, and therefore public bidding for provision of those services is hereby waived.
SECTION 2: That the Mayor upon proper authorization by the City Council is hereby empowered to extend the contract with Arkansas Blue Cross and Blue Shield until December 31, 1997 for provision of said services.
SECTION 3: It is hereby found and declared that an emergency exists and that this ordinance, being necessary the preservation of the public peace, health and safety, shall take effect from and after its passage and approval.
PASSED AND ADOPTED this 5th day of August, 1996.