Loading...
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. Page 1 of 5 (Ik)agr/gibbens/unemploymont/pm 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. Page 2 of 5 (Ik)agr/gibbens/unemploymentlpm 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. Page 3 of 5 (Ik)agdgibbens/unempbymentlpm 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. Page 4 of 5 (Ucja8dgibbens/unemploymenVpm 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 Page 5 of 5 (lk)agr/gibbens/unemploymenl/pm 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