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HomeMy WebLinkAboutR-1996-089 Amendment / Scott Wetzel. Svcs / Agreement / Workers Compensation Services• t • RESOLUTION NO. R-96- 8 9 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 1996 and a portion of 1997 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, 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, 1992, 1993, 1994, and 1995 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 1996 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 1996 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; and WHEREAS, the City Council deems it to be in the best interest of the City of Yakima to enter into the proposed 1996 Amendatory Agreement of said Agreement with Scott Wetzel Services, Inc for the administration of the City's workers' compensation claims, now, 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 1996 Amendment to Workers' Compensation Third Party Administrators Agreement with Scott Wetzel Services, Inc ADOPTED BY THE CITY COUNCIL this /611-Itday of , 1996 ATTEST ynn chanan, Mayor City Clerk (1s)res/96 wetzel amendment pm 1996 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, 1992, 1993, 1994 and 1995 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 Its: e• 9, DATE: -1'i') 4//c1(00 ATTEST: City Cle � -7 CITY CONTRACT NO: RESOLUTION NO: - STATE OF WASHINGTON ) :ss. County of Yakima) i DATE: , '/::::`, ;/ . s) (y ; /0"/ I certify that I know or have satisfactory evidence tha L ' 1 %_! is the person who appeared before me, and said person acknowledged that he/she •igned this instrument, on oath stated that he/she was authorized to execute the instrument and acknowledged it as the of Scott Wetzel Services, Inc., to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. DATED: r %. OTARY r UBLI in an FLORIPti -IvIkashifigteit residing at My commission expires. APPENDIX B ADMINISTRATIVE COMPENSATION A. In consideration of the services to be performed by Administrator hereunder, 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 available 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 available 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 requested 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 available 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 (ls)agr/96 wetzel amendment.pm 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 available 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. For the term 7/1/95 - 6/30/96, an annual minimum and fee of $24,280 due in equal quarterly installments during the contract year. The minimum fee will be adjusted on the basis of the following fees: Medical Only $ 90 Indemnity $430 For the term 7/1/96 - 6/30/97, an annual minimum and fee of $25,000 due in equal quarterly installments during the contract year. The minimum fee will be adjusted on the basis of the following fees: Medical Only $ 100 Indemnity $ 455 The fee of $2,300 for administrative services and a fee of $7,125 for 75 hours of loss prevention services will be included in such minimum fee. Loss prevention requested by the City in excess of 75 hours annually will (ls)agr/96 wetzel amendment pm be available at the rate of $95. 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 administration 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; $5,625 for 10/1/91 - 12/31/92; $6,240 for 1/1/93 - 6/30/941 $6,375 for 7/1/94 - 6/30/95; $6,750 for 7/1/95 - 6/30/96, or 75 hours of loss control for $7,125 for 7/1/96 - 6/30/97 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 tern there are 65 Medical Only and 20 Indemnity claims reported which occurred during the contract term, the billing would be: 65 Medical Only x $100 $ 6,500 20 Indemnity x $455 9,100 Administrative Fee 2,300 Loss Control 7.125 Total $25,025 Less: Minimum and Deposit Fee Paid(25,000) Additional Fees Due $25.00 However, if one quarter (3 months) later, late reported claims occurring during the contract increase the totals to 70 Medical Only and 22 Indemnity claims, the billing would then be: 70 Medical Only $100 $ 7,000 22 Indemnity x $455 10,010 Administrative Fee 2,300 Loss Control 7.125 Total $26,435 Less: Minimum and Deposit Fee Paid(25,000) Additional Fees Due $1,435 B. Fees will be due within twenty (20) days of commencement of this Agreement 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. (1s)agr/96 wetzel amendment.pm 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 contained 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. (ls)agr/96 wetzel amendment.pm B .INESS OF THE CITY COUN _ YAKIMA, WASHINGTON AGENDA STATEMENT Item No. / 0 For Meeting Of 7/16/96 ITEM TITLE: Amendment to Workers Compensation Program, Third party Adminis- trators Agreement, Appendix B Compensation SUBMITTED BY: Archie M. Sutton, Personnel Officer CONTACT PERSON/TELEPHONE: Archie M. Sutton, 575-6124 SUMMARY EXPLANATION: The attached Resolution, upon City Council approval, will allow the City Manager to execute the attached Amendment Agreement conceming Scott Wetzel Services, Inc., Third Party Administration Fee for the City's Workers Compensation Program. The amended administrative compensation fees reflect an increase of $25.00 for indemnity claims or 5.8% from $430 to $455 per claim, and $10.00 for medical -only claims or 11.1% from $90 to $100 per claim. Total annual minimum administrative fee shall be $25,000 for the contract period paid in equal quarterly installments, which includes $2,300 for administrative services and $7,125 for 75 hours of Toss prevention training. The balance of the minimum ($20,175) will be audited at a rate of $455 per time Toss claim and $100 per medical only. Resolution X Ordinance — Contract Other (Specify) Amendment Agreement Funding Source 514 Workers Compensation Pro ram APPROVED FOR SUBMITTAL: City Manager STAFF RECOMMENDATION: Pass Resolution and approve Amendment Agreement BOARD/COMMISSION RECOMMENDATION: COUNCIL ACTION: Resolution adopted. Resolution No. R-96-89 Legal/BD Agenda AMS/5