HomeMy WebLinkAboutR-1996-089 Amendment / Scott Wetzel. Svcs / Agreement / Workers Compensation Services•
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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
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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
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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
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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.
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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.
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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