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Home My WebLink AboutR-1994-112 Scott Wetzel Services, Inc.• RESOLUTION NO. R-94-__112_ • A RESOLUTION authorizing the City Manager and City Clerk of the City of Yakima to execute an amendment to the Workers' Compensation Third Party Administrators Agreement with Scott Wetzel Services, Inc for workers' compensation services for the years 1994 and a portion of 1995 WHEREAS, the City of Yakima and Scott Wetzel Services, Inc entered into an agreement entitled "Workers' Compensation Third Party Administrators Agreement" on or about September 20, 1998, whereby Scott Wetzel Services, Inc agreed to investigate, settle, and otherwise administer the City's workers' compensation claims; and WHEREAS, the parties have previously amended the aforementioned Agreement in 1989, 1990, 1991, and 1992 by substitution of a new Appendix "B", and WHEREAS, the parties to the aforementioned agreement desire to amend the compensation provisions of said Agreement utilizing the proposed 1994 Amendatory Agreement, and by substitution of a new Appendix "B," a copy of both is attached hereto, and WHEREAS, except as amended in the provisions of the proposed 1994 Amendatory Agreement, all other provisions of the Workers' Compensation Third Part) Administrators Agreement, entered into by the parties on or about September 20, 1988, shall remain in full force and effect; and WHEREAS, the City Council deems it to be in the best interest of the City of Yakima to enter into the proposed 1994 Amendatory Agreement of said Agreement with Scott Wetzel Services, Inc for the administration of the City's workers' compensation claims, nog., therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager and City Clerk of the City of Yakima are hereby authorized and directed to execute the attached and incorporated 1994 Amendment to Workers' Compensation Third Party Administrators Agreement with Scott Wetzel Services, Inc. ADOPTED BY THE CITY COUNCIL this 23rd day of August , 1994 ATTEST City Clerk (lar..'9d ..t;.. ...ndwenc.7. 1994 AMENDMENT TO WORKERS' COMPENSATION THIRD PARTY ADMINISTRATORS AGREEMENT WHEREAS, the City of Yakima and Scott Wetzel Services, Inc. entered into an agreement entitled "Workers' Compensation Third Party Administrators Agreement" on or about September 20, 1988; and WHEREAS, the parties to the aforementioned Agreement desire to amend the compensation provisions of that Agreement; and WHEREAS, the parties have previously amended the aforementioned Agreement in 1989, 1990, 1991, and 1992, by substitution of a new Appendix "B," now, therefore, the City of Yakima and Scott Wetzel Services, Inc. hereby amend the aforementioned amended Agreement by substitution of a new Appendix "B" to such Agreement which is attached and incorporated herein. Except as amended in the previous paragraph of this amendatory Agreement, all other provisions of the Workers' Compensation Third Party Administrators Agreement, entered into by the parties on or about September 20, 1988, shall remain in full force and effect. CITY OF YAKIMA SCOTT WETZEL SERVICES, INC. By: Dick Zais, City Manager By: Its: . %; DATE: ,` �: ` DATE: ATTEST: City Clerk '7 MT MIER" STATE OF WASHINGTON ) :ss. County of Yana ) I certify that I know or have satisfactory evidence thatoC= is the person who appeared before me, and said person acknowledged that he/she signed this instrument, on oath stated that he/she was authorized to execute the instrument and acknowledged it as the J 3`' of Scott Page 1 of 2 (1s)agr/94 wetzel amendment pm Wetzel Services, Inc., to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. DATED: -tW Page 2 of 2 (1s)agr/94 wetzel amendment pm NOTARY PUBLIC in and for the State of Washington, residing at My commission expires: 1 7 APPENDIX B ADMINISTRATIVE COMPENSATION A. In consideration of the services to be performed by Administrator here- under, City shall pay to Administrator: For the term 10/1/88 - 10/1/89 an annual minimum and fee of $13,500 due in equal quarterly installments during the contract year. The minimum fee will be adjusted on the basis of the following fees: Medical Only $ 65 Indemnity $285 A fee of $4,875 for 75 hours of loss prevention services will be included in such minimum fee. Loss prevention services requested by City in excess of 75 hours annually will be available at the rate of $65 per hour. Industrial hygiene services requested by the City will be avail- able at the rate of $80 per hour. For the term 10/1/89 - 10/1/90 an annual minimum and fee of $13,500 due in equal quarterly installments during the contract year. The minimum fee will be adjusted on the basis of the following fees: Medical Only $ 65 Indemnity $295 A fee of $4,875 for 75 hours of loss prevention services will be included in such minimum fee. Loss prevention services requested by City in excess of 75 hours annually will be available at the rate of $65 per hour. Industrial hygiene services requested by the City will be avail- able at the rate of $80 per hour. For the term 10/1/90 - 10/1/91 an annual minimum and fee of $15,000 due in equal quarterly installments during the contract year. The minimum fee will be adjusted on the basis of the following fees: Medical Only $ 68 Indemnity $325 A fee of $5,250 for 75 hours of loss prevention services will be included in such minimum fee. Loss prevention services requesred by City in excess of 75 hours annually will be available at the rate of $80 per hour. Industrial hygiene services requested by the City will be avail- able at the rate of $80 per hour. For the term 10/1/91 - 12/31/92 a minimum and fee of $15,000 due in equal quarterly installments during the first twelve (12) months. The minimum fee will be adjusted on the basis of the following fees: Medical Only $ 73 Indemnity $348 A fee of $5,625 for 75 hours of loss prevention services to be provided during the first twelve (12) months of the term, will be included in such minimum fee. Loss prevention services requested by City in excess of 75 hours will be available at the rate of $85 per hour. Industrial hygiene services requested by the City will be available at the rate of $127.50 per hour. For the term 1/1/93 - 6/30/94 a minimum and fee of $15,000 due in equal quarterly installments during the contract term. The minimum fee will be adjusted on the basis of the following fees: Medical Only $ 80 Indemnity $375 A fee of $6,240 for 75 hours of loss prevention services will be included in such minimum fee. Loss prevention services requested by City in excess of 75 hours annually will be available at the rate of $85 per hour. Industrial hygiene services requested by the City will be avail- able at the rate of $127.50 per hour. For the term 7/1/94 - 6/30/95 an annual minimum and fee of $21,275 due in equal quarterly installments during the contract year. The minimum fee will be adjusted on the basis of the following fees: Medical Only $ 85 Indemnity $400 A fee of $1,600 for administrative services and a fee of $6,375 for 75 hours of loss prevention services will be included in such minimum fee. Loss prevention services requested by City in excess of 75 hours annually will be available at the rate of $85 per hour. Industrial hygiene services requested by the City will be available at the rate of $127.50 per hour. At the end of each contract term the number of medical only claims and the number of indemnity claims incurred by the City during the annual term of the Agreement administered by Administrator will be multiplied by the per claimant fees quoted to produce the total annual claims adminis- tration fee. The fee for 75 hours of loss control, either $4,875 for 10/1/88 - 10/1/89 and 10/1/89 - 10/1/90, $5,250 for 10/1/90 - 10/1/91, or $5,625 for 10/1/91 - 12/31/92, $6,240 for 1/1/93 - 6/30/94 or 75 hours of loss control for $6,375 for 7/1/94 - 60/30/95, will be added to such total fee. Such total fee will be compared to the minimum fee already paid by the City. If such total fee is less than, or equal to, the minimum fee already paid, no additional fees will be due. If such total fee is more than the minimum fee, the City will be liable for the difference between such total fee and the minimum fee. Thus, for example, if at the end of an annual term there are 65 Medical Only and 20 Indemnity claims reported which occurred during the contract term, the billing would be: 65 Medical Only x $85 20 Indemnity x $400 Administrative Fee Loss Control $ 5,525 8,000 1,600 6,375 Total $21,500 Less: Minimum and Deposit Fee Paid (21,275) Additional Fees Due $225 However, if one quarter (3 months) later, late reported claims occurring during the contract increase the totals to 70 Medical Only and 22 Indem- nity claims, the billing would then be: 70 Medical Only x $85 22 Indemnity x $400 Administrative Fee Loss Control $ 5,950 8,800 1,600 6,375 Total $22,725 Less: Minimum and Deposit Fee Paid (21,500) Additional Fees Due $1,225 B. Fees will be due within twenty (20) days of commencement of this Agree- ment and subsequent fees shall be due within twenty (20) days of the beginning of each quarter thereafter. C. Additional services requested by the City will be compensated at such fee and payment terms as mutually agreed by both parties. D. Invoices not paid on a timely basis will be surcharged a finance fee of 12% annual interest rate unless there is a bona fide dispute as to the amount owed. E. Billing for excess claims will be submitted at the end of the annual term and quarterly thereafter based upon the cumulative claim count as con- tained in the computer reports required by Appendix B of the Agreement. A final adjustment of fee will be made as of eighteen (18) months following the end of the contract term. Any claims occurring during the term of this Agreement which are reported more than eighteen (18) months following the end of the contract term will be subject to additional fees for administration to be agreed upon by the parties. lw/City of Yakima/DSAVE APPENDIX B ADMINISTRATIVE COMPENSATION A. In consideration of the services to be performed by Administrator here- under, City shall pay to Administrator: For the term 10/1/88 - 10/1/89 an annual minimum and fee of $13,500 due in equal quarterly installments during the contract year. The minimum fee will be adjusted on the basis of the following fees: Medical Only $ 65 Indemnity $285 A fee of $4,875 for 75 hours of loss prevention services will be included in such minimum fee. Loss prevention services requested by City in excess of 75 hours annually will be available at the rate of $65 per hour. Industrial hygiene services requested by the City will be avail- able at the rate of $80 per hour. For the term 10/1/89 - 10/1/90 an annual minimum and fee of $13,500 due in equal quarterly installments during the contract year. The minimum fee will be adjusted on the basis of the following fees: Medical Only $ 65 Indemnity $295 A fee of $4,875 for 75 hours of loss prevention services will be included in such minimum fee. Loss prevention services requested by City in excess of 75 hours annually will be available at the rate of $65 per hour. Industrial hygiene services requested by the City will be avail- able at the rate of $80 per hour. For the term 10/1/90 - 10/1/91 an annual minimum and fee of $15,000 due in equal quarterly installments during the contract year. The minimum fee will be adjusted on the basis of the following fees: Medical Only Indemnity $ 68 $325 A fee of $5,250 for 75 hours of loss prevention services will be included in such minimum fee. Loss prevention services requesred by City in excess of 75 hours annually will be available at the rate of $80 per hour. Industrial hygiene services requested by the City will be avail- able at the rate of $80 per hour. For the term 10/1/91 - 12/31/92 a minimum and fee of $15,000 due in equal quarterly installments during the first twelve (12) months. The minimum fee will be adjusted on the basis of the following fees: Medical Only $ 73 Indemnity $348 A fee of $5,625 for 75 hours of loss prevention services to be provided during the first twelve (12) months of the term, will be included in such minimum fee. Loss prevention services requested by City in excess of 75 hours will be available at the rate of $85 per hour. Industrial hygiene services requested by the City will be available at the rate of $127.50 per hour. For the term 1/1/93 - 6/30/94 a minimum and fee of $15,000 due in equal quarterly installments during the contract term. The minimum fee will be adjusted on the basis of the following fees: Medical Only $ 80 Indemnity $375 A fee of $6,240 for 75 hours of loss prevention services will be included in such minimum fee. Loss prevention services requested by City in excess of 75 hours annually will be available at the rate of $85 per hour. Industrial hygiene services requested by the City will be avail- able at the rate of $127.50 per hour. For the term 7/1/94 - 6/30/95 an annual minimum and fee of $21,275 due in equal quarterly installments during the contract year. The minimum fee will be adjusted on the basis of the following fees: Medical Only $ 85 Indemnity $400 A fee of $1,600 for administrative services and a fee of $6,375 for 75 hours of loss prevention services will be included in such minimum fee. Loss prevention services requested by City in excess of 75 hours annually will be available at the rate of $85 per hour. Industrial hygiene services requested by the City will be available at the rate of $127.50 per hour. At the end of each contract term the number of medical only claims and the number of indemnity claims incurred by the City during the annual term of the Agreement administered by Administrator will be multiplied by the per claimant fees quoted to produce the total annual claims adminis- tration fee. The fee for 75 hours of loss control, either $4,875 for 10/1/88 - 10/1/89 and 10/1/89 - 10/1/90, $5,250 for 10/1/90 - 10/1/91, or $5,625 for 10/1/91 - 12/31/92, $6,240 for 1/1/93 - 6/30/94 or 75 hours of loss control for $6,375 for 7/1/94 - 60/30/95, will be added to such total fee. Such total fee will be compared to the minimum fee already paid by the City. If such total fee is less than, or equal to, the minimum fee already paid, no additional fees will be due. If such total fee is more than the minimum fee, the City will be liable for the difference between such total fee and the minimum fee. Thus, for example, if at the end of an annual term there are 65 Medical Only and 20 Indemnity claims reported which occurred during the contract term, the billing would be: 65 Medical Only x $85 20 Indemnity x $400 Administrative Fee Loss Control $ 5,525 8,000 1,600 6,375 Total $21,500 Less: Minimum and Deposit Fee Paid (21,275) Additional Fees Due $225 However, if one quarter (3 months) later, late reported claims occurring during the contract increase the totals to 70 Medical Only and 22 Indem- nity claims, the billing would then be: 70 Medical Only x $85 22 Indemnity x $400 Administrative Fee Loss Control $ 5,950 8,800 1,600 6,375 Total $22,725 Less: Minimum and Deposit Fee Paid (21,500) Additional Fees Due $1,225 B. Fees will be due within twenty (20) days of commencement of this Agree- ment and subsequent fees shall be due within twenty (20) days of the beginning of each quarter thereafter. C. Additional services requested by the City will be compensated at such fee and payment terms as mutually agreed by both parties. D. Invoices not paid on a timely basis will be surcharged a finance fee of 12% annual interest rate unless there is a bona fide dispute as to the amount owed. E. Billing for excess claims will be submitted at the end of the annual term and quarterly thereafter based upon the cumulative claim count as con- tained in the computer reports required by Appendix B of the Agreement. A final adjustment of fee will be made as of eighteen (18) months following the end of the contract term. Any claims occurring during the term of this Agreement which are reported more than eighteen (18) months following the end of the contract term will be subject to additional fees for administration to be agreed upon by the parties. lw/City of Yakima/DSAVE