HomeMy WebLinkAboutR-1997-092 Third Party Unemployment CompensationRESOLUTION NO. R-97- 92
A RESOLUTION authorizing and directing the City Manager and the City
Clerk of the City of Yakima to execute a "Professional
Services Agreement" between the City of Yakima and
Gibbens Co., Inc. for the purpose of obtaining unemployment
cost control management services.
WHEREAS, the City desires unemployment cost control management
services; and
WHEREAS, the City does not have the personnel and specialized
expertise for such services; and
WHEREAS, Gibbens Co., Inc. has the experience and expertise to provide
unemployment cost control management services to the City; and
WHEREAS, pursuant to an agreement executed in 1977, the Gibbens
Co., Inc. has been providing these services to the City for many years in a
satisfactory and appropriate manner; and
WHEREAS, the Gibbens Co., Inc. has offered to provide these services at
a reduced cost in accordance with the terms and conditions of the attached
agreement; and
WHEREAS, the City Council has determined that it is in the best interest
of the City to enter into a professional services agreement with the Gibbens Co.,
Inc. in accordance with the terms and conditions of the attached agreement,
now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City Manager and the City Clerk are hereby authorized and directed
to execute the attached and incorporated "Professional Services Agreement"
between the City of Yakima and Gibbens Co., Inc for the purpose of obtaining
unemployment cost control management services.
ADOPTED BY THE CITY COUNCIL this /61- day of , 1997.
ATTEST: 74-4-t
ynn Buchanan, Mayor
JKAwA-ed
aklrts/WAtrrunemployment/pm
City Clerk
PROFESSIONAL SERVICES AGREEMENT
THIS AGREEMENT is made and entered into by and between the City
of Yakima, a Washington State municipal corporation, hereinafter the
"City," and the Gibbens Co., Inc., hereinafter the "Contractor."
WHEREAS, the City desires unemployment cost control management
services.
WHEREAS, Contractor has experience and expertise to provide
unemployment cost control management services, and is willing to provide
these services to the City in accordance with the terms and conditions set
forth in this Agreement.
NOW, THEREFORE, in consideration of the mutual covenants, promises,
and agreements set forth herein, it is agreed by and between the City and
the Contractor as follows:
1. Scope of Training Services/Materials. Contractor shall provide
the following services to the City:
a. Review payroll procedures to assure that proper
consideration has been given to sick leave pay, vacation
leave pay, and other forms of remuneration which should
not be used as a basis for claiming unemployment
compensation benefits.
b. Conduct workshops with appropriate City personnel to
review unemployment compensation, stressing potential
liabilities involved and the importance of proper handling
of these matters to prevent unwarranted costs.
c. Review and record past and present payroll reports and
benefit charges which can affect current and future
unemployment compensation costs.
d. Provide sample personnel forms to be utilized in properly
documenting employee changes.
e. Serve as a reference guideline in the development of
policies that influence the City's unemployment liability.
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f. Assist City personnel in developing employment practices
that will serve to control unemployment compensation
costs.
g.
Process all claims for unemployment benefits.
h. Take exception to claims of questionable benefit.
i. Participate in hearings where benefit liability is at issue,
as permitted by state law and regulations.
J.
Calculate account liability on valid claims where pertinent
and possible.
k. Audit benefit charge statements and protest questionable
and/or erroneous charges.
1. Inform interested personnel of account activity through
telephone communications, service letters and periodic
service bulletins.
m. Issue periodic data processing activity and summary
reports to serve as management tools.
n. Perform a continuing audit of City benefit charges and
review alternative funding methods.
o. Review with City personnel the accomplishments,
procedures, pertinent developments and/or problem
areas.
The services provided under this Agreement shall be in strict compliance
with all applicable rules and regulations of state unemployment agencies
and shall specifically exclude any services which now or in the future may
be deemed the practice of law.
2. Consideration. The City agrees to provide the Contractor a total of
Fourteen Thousand Four Hundred Dollars ($14,400.00) as full
compensation for all services performed under and pursuant to this
Agreement. Said sum shall be divided and paid on a quarterly basis
during the term of this Agreement. The Contractor shall submit quarterly
documentation/invoice evidencing said services to the City Personnel
Officer for the quarterly period in which services are provided to the City.
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The City shall make payment to the Contractor within thirty (30) calendar
days upon receipt of each quarterly invoice. All payments are expressly
conditioned upon the Contractor providing services hereunder that are
satisfactory to the City.
3. Term of Agreement. This Agreement shall be in effect for a
three-year period commencing upon execution hereof and terminating on
Twic 3,D , 2000, unless sooner terminated by either party
in accordance with Section 11 of this Agreement.
4. Status of Contractor. The Contractor and the City understand and
expressly agree that the Contractor is an independent contractor in the
performance of each and every part of this Agreement. Contractor and its
employees shall make no claim of City employment nor shall claim any
related employment benefits, social security, and/or retirement.
5. Taxes and Assessments. Contractor shall be solely responsible for
and shall pay all taxes, deductions, and assessments, including but not
limited to, sales tax, federal income tax, FICA, social security tax,
assessments for unemployment and industrial injury insurance, and other
deductions from income which may be required by law or assessed against
either party as a result of this Agreement. In the event the City is
assessed a tax or assessment as a result of this Agreement, Contractor shall
pay the same before it becomes due.
6. Non -Discrimination. During the performance of this Agreement,
the Contractor shall not discriminate on the basis of race, age, color, sex,
religion, national origin, creed, marital status, political affiliation, or the
presence of any sensory, mental, or physical handicap. This provision shall
include but not be limited to the following: employment, promotion,
demotion, transfer, recruitment, advertising, layoff, termination, rates of
pay, compensation, and selection for training.
7. Compliance With Law. Contractor agrees to perform all services
under and pursuant to this Agreement in full compliance with any and all
applicable laws, rules, and regulations adopted or promulgated by any
governmental agency or regulatory body, whether federal, state, local, or
otherwise.
8. No Insurance. It is understood the City does not maintain liability
insurance for Contractor and/or its employees.
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9. Indemnity and Hold Harmless. Each party agrees to be
responsible for its own negligence or deficient performance under this
Agreement and agrees to hold harmless and indemnify the other, and the
other's elected officials, officers, agents, employees, and assigns against any
and all claims, demands, losses, liens, liabilities, penalties, fines, lawsuits,
judgments, awards, costs, and expenses (including attorney's fees and
disbursements) resulting or allegedly resulting from such negligence or
deficient performance.
10. Assignment. This Agreement, or any interest herein, or claim
hereunder, shall not be assigned or transferred in whole or in part by the
Contractor to any other person or entity without the prior written consent
of the City. In the event that such prior written consent to an assignment
is granted, then the assignee shall assume all duties, obligations, and
liabilities of Contractor as stated herein.
11. Termination. If the Contractor shall fail to provide in a timely and
proper manner any of the services required under this Agreement, or if
the Contractor violates any of the covenants, terms, and conditions of this
Agreement, the City shall have the right to terminate this Agreement. The
City shall provide the Contractor a written notice describing the default
and/or violation ten (10) calendar days prior to the effective date of
termination.
12. Non -Waiver. The failure of the City to insist upon strict
performance of any provision of this Agreement or to exercise any right
based upon a breach thereof or the acceptance of any performance during
such breach shall not constitute a waiver of any right under this
Agreement.
13. Severability. If any portion of the Agreement is changed per
mutual agreement or any portion is held invalid, the remainder of the
Agreement shall remain in full force and effect.
14. Integration. This written document constitutes the entire
Agreement between the parties. No changes or additions to this
Agreement shall be valid or binding upon either party unless such change
or addition be in writing and executed by both parties.
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15. Notices. Unless stated otherwise herein, all notices and demands
shall be in writing and sent to the parties at their addresses as follows:
To City:
To Contractor:
Personnel Officer
Human Resources Division
129 North Second Street
Yakima, WA 98901
Senior Account Executive
Gibbens Company
P.O. Box 97094
Kirkland, WA 98083
or to such addresses as the parties may hereafter designate in writing.
Notices and/or demands shall be sent by registered or certified mail,
postage prepaid. Such notices shall be deemed effective when mailed or
hand -delivered at the addresses specified above.
16. Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of Washington.
17. Venue. The venue for any action to enforce or interpret this
Agreement shall lie in the Superior Court of Washington for Yakima
County, Washington.
CITY OF YAKIMA GIBBENS CO., INC.
By: By: ir
R. A. Zais, Jr.
City Manager
Date: 7 _ g -9 Date:
ATTEST:
A r
1 i ftd City (Clerk
City Contract No. 9 7 7c:2
Resolution No. R_o 9
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Martha S. Ligocli
Senior Account Executive
(
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. /
For Meeting Of July 1, 1997
ITEM TITLE: Third Party Unemployment Compensation Service Contract with
Gibbens Company
SUBMl'1'1LD BY: Archie M. Sutton, Personnel Officer
CONTACT PERSON/TELEPHONE: Archie M. Sutton / 575-6090
SUMMARY EXPLANATION:
In the 19 years that Gibbens Company has been the City of Yakima's third party
unemployment compensation administrator, there has been changes in several related
areas. In the original agreement, the fee was based on a percentage of payroll.
Nineteen years ago this method made sense because inflation caused unpredictable
changes in costs and payroll followed those trends. However, over the years advanced
technology and a more stable economic environment has reduced the overall costs.
Payroll fees for the past five years were: 1992 - $6,247; 1993 - $6,480; 1994, $6,613;
1995 - $6,895; and 1996 - $7,501.
The attached new service agreement proposes a flat fee of $4,800 for a three year
period. The proposed fee shall reflect a 63.9% reduction over the 1996 cost of $7,501.
Resolution X Ordinance Contract
Funding Source
Other (Specify)Services Agreement
Unemployment Compensation Budget 512
APPROVED FOR SUBMITTAL:
City Manager
STAFF RECOMMENDATION: Approve Contract
BOARD/COMMISSION RECOMMENDATION:
COUNCIL ACTION: Resolution adopted. RESOLUPION NO. R-97-92
Legal/BD
Agenda Stmt. M