HomeMy WebLinkAboutR-1997-127 1997-1998 Workers Compensation Program•
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RESOLUTION NO. R-97- 127
A RESOLUTION authorizing the City Manager and the City Clerk of the City of
Yakima to execute an On -Line Data Services Agreement with Scott
Wetzel Services, Inc.
WHEREAS, the City of Yakima desires on-line data services in order to assist
with the administration of its workers' compensation claims; and
WHEREAS, the City does not have the staffing levels or specialized expertise
necessary to provide said on-line data services; and
WHEREAS, Scott Wetzel Services, Inc. has the experience and expertise
necessary to perform said on-line data services; and
WHEREAS, in 1996 the City entered into an agreement with Scott Wetzel
Services, Inc. for said on-line data services but that agreement expired at midnight
on June 30, 1997; and
WHEREAS, Scott Wetzel Services, Inc. is willing to perform said on-line data
services to assist with the administration of the City's workers' compensation claims
in accordance with the terms and conditions of the attached agreement; and
WHEREAS, the City Council deems it to be in the best interest of the City of
Yakima to contract with Scott Wetzel Services, Inc. whereby said entity will provide
on-line data services in accordance with the terms of the attached agreement, 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 On -Line Data Services
Agreement with Scott Wetzel Services, Inc. for the purpose of obtaining on-line data
services to assist with the administration of its workers' compensation claims.
ADOPTED BY THE CITY COUNCIL this `�� day of OcV�
, 1997.
ATTEST: John Puccinelli, Mayor Pro Tern
Q 2h e-,--- „Xi/
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City Clerk
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ON-LINE DATA SERVICES AGREEMENT
THIS AGREEMENT is made and entered into by and between SCOTT
WETZEL SERVICES, INC., a Washington corporation, with its principal place of
business at 101 East Kennedy Blvd., Suite 2980, Tampa, Florida 33602
hereinafter referred to as "SWS") and the CITY OF YAKIMA, a municipal
corporation, with its principal place of business at 129 North Second Street,
Yakima, Washington 98901 (hereinafter referred to as "City"):
WHEREAS, City maintains a self-insured plan to cover its workers'
compensation exposures, and SWS provides claims administration services in
connection therewith as set forth in the separate service Agreement between
SWS and City.
WHEREAS, City desires that SWS perform additional on-line data
services in connection therewith, as herein set forth.
NOW, THEREFORE, in consideration of the mutual covenants, promises,
and conditions set forth herein, it is agreed by and between the City and SWS
as follows:
1. Scope of Services. During the period of proprietary software necessary
to access on-line data services to the City as follows:
(a) Allow use of proprietary software necessary to access and utilize
SWS data base.
(b) Provide system access during normal weekday business hours
(generally, 5:00 a.m. to 5:00 p.m. Pacific Standard Time) with user
help response staffing from 8:00 a.m. to 5:00 p.m. Pacific Standard
Time.
(c) Provide up to two (2) hours of telephonic technical support per
month.
Subsequent expansion or modification of services, at the option of SWS,
may be subject to additional charges.
2. Term of Agreement: Unless sooner terminated by either party in
accordance with Section 6 of this Agreement, the term of this Agreement shall
be for a period of one (1) year commencing July 1, 1997 and terminating at
12:00 p.m. on June 30, 1998; provided, however, that the parties may agree to
extend this Agreement for two (2) additional one (1) year periods. In no event
shall this Agreement extend beyond 12:00 p.m. on June 30, 2000.
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3. Consideration. In consideration of the services to be performed by SWS
hereunder, the City shall pay to SWS:
(a) A system access charge based on two hundred fifty dollars ($250)
per month which will be billed on a quarterly basis upon
installation and includes up to 240 CPU seconds usage per month.
(b) A charge of seventy-five dollars ($75) per month to cover SWS in-
coming telephone service costs which will be billed on a quarterly
basis upon installation.
(c) A service charge based on twenty-one cents ($.21) per CPU second
which will be billed on a quarterly basis for usage in excess of 240
CPU seconds per month.
(d) A rate of three hundred dollars ($300) per day for supplemental
training.
(e) All travel costs associated with supplemental training, including
SWS vehicle mileage at thirty-one cents ($.31) per mile, and such
will be billed to the City upon completion of training.
(f) A rate of seventy-five dollars ($75) per hour for technical support
services in excess of two (2) hours per month and such will be
billed to the City on a quarterly basis.
(g) Additional services requested by City will be compensated at such
fee and payment terms as mutually agreed by both parties.
(i) Direct costs associated with on-line data services. Such costs shall
include but not be limited to: telephone line installation for both
City and SWS locations; monthly telephone service costs for City
locations; and hardware costs. These costs will be paid directly by
City to the respective providers or, if initially paid by SWS,
reimbursed to SWS by City.
4. Payment. Except as otherwise provided in Section 3 of this Agreement,
SWS shall submit satisfactory documentation/invoice evidencing services
provided pursuant to this Agreement to the City Personnel Officer at the end of
each month in which such services are provided to the City. The City shall
make payment to SWS within sixty (60) calendar days of receipt of each
monthly billing; provided, however, that all such payments are expressly
conditioned upon SWS provided services hereunder that are satisfactory to the
City.
5. City Cooperation. The obligation of SWS to perform its duties
hereunder is conditioned upon the City's cooperation with SWS with respect to
the activities of SWS.
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6. Termination. The City or'SWS may terminate this Agreement, with or
without cause, by giving not less than sixty (60) calendar days written notice of
termination to the other party; provided, however, that SWS may terminate this
Agreement, at its option, after providing the City with ten (10) calendar days
notice in the event that the City fails to pay SWS for a valid SWS invoice within
sixty (60) calendar days of receipt by the City of the SWS invoice.
7. Status of Contractor. SWS and . the City understand and expressly
agree that SWS is an independent contractor in the performance of each and
every part of this Agreement. SWS and its employees shall make no claim of
City employment nor shall claim against the City any related employment
benefits, social security, and/or retirement.
8. Indemnification. SWS will indemnify and hold harmless the City from
any and all loss, cost or expense to which the City may be subjected solely as a
consequence of the willful misconduct or negligent acts or omissions of SWS
and/or its employees in connection with fulfilling its obligation under this
Agreement.
The City will indemnify and hold harmless SWS from any and all loss,
cost or expense to which SWS may be subjected solely as a consequence of the
willful misconduct or negligent acts/omissions of the City and/or its officers,
employees, or agents in connection with fulfillingits obligations under this
Agreement.
9. No Insurance. It is understood the City does not maintain liability
insurance for SWS and/or its employees.
10. Nondiscrimination Provision. During the performance of this
Agreement, SWS 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, upgrading, demotion,
transfer, recruitment, advertising, layoff or termination, rates of pay or other
forms of compensation, and selection for training.
11. The Americans With Disabilities Act. SWS agrees to comply with the
Americans With Disabilities Act of 1990, 42 U.S.C. § 12101 et seq. (ADA), and
its implementing regulations. The ADA provides comprehensive civil rights to
individuals with disabilities in the area of employment, public
accommodations, state and local government services, and telecommuni-
cations.
12. Compliance With Law. SWS agrees to perform those 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.
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13. Non -Waiver. The waiver by SWS or the City of the breach of any
provision of this Agreement by the other party shall not operate or be construed
as a waiver of any subsequent breach by either party or prevent either party
thereafter enforcing any such provision.
14. Assignment. This Agreement, or any interest herein, or claim
hereunder, shall not be assigned or transferred in whole or in part SWS 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 SWS as stated
herein.
15. Severability. If any portion of this Agreement is changed per mutual
agreement or any portion is held invalid, the remainder of the Agreement shall
remain in full force and effect.
16. Arbitration. Any unresolved dispute between the City and SWS which
may arise from the obligations of either party as set forth herein, will be
resolved by arbitration. Such arbitration shall be binding upon the City and
SWS. Each party will select an arbitrator. The two arbitrators will select a
third. If they cannot agree within thirty (30) calendar days, either may request
that selection be made by a judge of a court having competent jurisdiction.
Each party will pay the expenses it incurs and bear the expenses of the third
arbitrator equally. The arbitration shall be held at a mutually agreed location
in Yakima, Yakima County, Washington.
17. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Washington.
18. Notices. Unless stated otherwise herein, all notices and demands shall
be in writing and sent to the parties to their addresses as follows:
TO CITY: Personnel Officer
City of Yakima
129 N. 2nd St.
Yakima, WA 98901
,tTO SWS: C4e,� C «,j(�t� (r2 . V -P ,ak.
SCOTT wCm :L SLI -W SLS, INC.
101 , Kcnn y Filvd., Suite 2980
Tampa, FL, CO2
or to such other 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.
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19. Integration and Supersession. This Agreement sets forth all of the
terms, conditions, and agreements .of the parties relative to the subject matter
hereof and supersedes any and all such former agreements which are hereby
declared terminated and of no further force and effect upon the execution and
delivery hereof. There are no terms, conditions, or agreements with respect
thereto, except as herein provided and no amendment or modification of this
Agreement shall be effective unless reduced to writing and executed by the
parties.
CITY OF YAKIMA SCOTT WETZEL SERVICES, INC.
By:
R. A. Zais, Jr., City Manager Its:
Date: /G/1 `f"7c/ 7
ATTEST:
City Clerk
Date:
City Contract No.: 9 '7- -C
RESOLUTION NO.:57" i -?
State of Washington
County of Yakima
)
ss.
Ii,ereby certify that I know or have satisfactory evidence that
�
.e,. r -x-lis the person who appeared before me, and said person
acknowledged that he/she signed this instrument, and on oath stated that
he/ he w4..s authorized to execute the instrument and acknowledged it as the
-t..a: je. of Scott Wetzel Services, Inc., to be the free and voluntary
act of such party for the uses and purposes mentioned in this instrument.
DATED: / 6/2 79 7
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CHEQUITA L. MURPHY
MY COMMISSION # CC 654572
EXPIRES: June 10, 2001
Bonded Thru Notary Public Underwriters
Pri 'ame .art 2.
NOTARY PUBL C in and for ; e t. to
of Washington, residing a
My commission expires: 6
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ITEM TITLE:
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. I U
For Meeting Of /-3/ 7 /c 7
Amendment to the 1997-98 Workers Compensation Program, 1997-98 Third Party '
Administrator Agreement, and 1996 Year-end Comparative Statistical Analysis
Report
SUBMITTED BY: Archie M. Sutton, Personnel Officer
Izzy Robinson, Personnel Technician
CONTACT PERSON/TELEPHONE: Archie M. Sutton, 575-6090
SUMMARY EXPLANATION:
Attached is our 1994-1996, Self -Insurers Workers Compensation annual statistical analysis for your review.
The report reflects a dramatic 30% decrease in overall costs (severity) to the City's Workers Compensation
Program in 1996 over 1995, in spite of an increase of 6% in accident frequency (experience). This decrease is
attributable to the professional working relationship between Human Resources and Scott Wetzel Services
Inc., which involves direct PC access, precise loss control measures, accountability and support of our
rograms. With the successful implementation of Return to Work Program procedures, early
intervention/investigation(s), increased workplace safety awareness, and management/injured worker
involvement, we have experienced a dramatic decrease in costs experience, which has saved the City of
Yakima approximately $81,500 over this period.
The attached Resolution authorizes the City Manager to execute an amendment to the service agreement
with Scott Wetzel Services, Inc. (SWS), the City's third party administrator for our Self -Insurers Workers
Compensation Program. The amendment adjusts the fee structure by increasing the charge to process
indemnity (time loss ) claims from $455 to $475 or 4.4% per claim. Rates for medical only claims will
remain the same, at $100 per claim. Based on previous claim history, the estimated annual administrative
fee to SWS is $25,100. This estimated amount includes $2,300 in administrative expenses, $7,125 for 75
hours of accident prevention training (loss control) and the balance in individual claims cost
administration. Any loss control hours in excess of 75 contract hours will be billed at $105 per hour. In the
event claims exceed the estimated annual fee, an adjustment per claim will be assessed at the rates shown
above.
Resolution X Ordinance X Contract Other (Specify) Report
Funding Source Workers Com sation Fund
APPROVED FOR SUBMITTAL:
City Manager
STAFF RECOMMENDATION: Enact Resolution and accept report.
BOARD/COMMISSION RECOMMENDATION:
COUNCIL ACTION: