HomeMy WebLinkAboutR-1990-D5839 Scott Wetzel RESOLUTION NO. 0839
A RESOLUTION authorizing the City Tanager and the City Clerk
to execute an amendment to the agreement. with
Scott Wetzel Services, Inc. for workers' compen-
sation services.
WHEREAS, the City of Yakima has a labor force in excess
of 500 persons who during the normal course of employment
generate workers' compensation claims against the City of
Yakima. and
WHEREAS, Scott Wetzel Services, Inc., entered into an
agreement on or about September 20, 1988 pursuant to City of
Y akima Resnlution Number D -5502 whereby Scott Wetzel agreed to
in` e1 ; gate , settle, and otherwise administer the City's
wk r compensation claims; and
W1ER£AS, the parties to the aforementioned agreement wish
to amc nd th, compensation provisions of that agreement; and
WHEREAS, City Counc.I deems it to be in the best interest
of tht2 City of ' ,Akima to enter into an amendment to the con-
tract „_'h Scott Wetzel Services, Inc. for the administration
of '_I Cwt.'s workers' compensation claims, now, therefore,
BI' IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The C]ty Manager and th( City Clerk of the City of Yakima
hereb\ authorized and directed to execute the attached and
it vorp')rated 1'a: +0 Amendment to Workers' Compensation Third
Parr Administrator's Agreement with Scott Wetzel Services,
It .
ADOPTED BY THE CITY COUNCIL this ,/,75 day of iVrA/042 1-,
1990. C;}
Mayor
ATTEST:
City Clerk
(res wetzol )
1990 AMENDMENT TO WORKERS' COMPENSATION
THIRD PARTY ADMINISTRATOR'S AGREEMENT
RECITAL
WHEREAS, the City of Yakima and Scott Wetzel. Services, Inc.
entered into an agreement entitled "Workers Compensation Third
Party Administrator's 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 aforemen-
tioned agreement in 1989 by substitution of a new Appendix B, now,
ther
The City of Yakima and Scott Wetzel Services, Inc. hereby
amend the aforementioned amended agreement by the substitution of a
new Appendix 1 3 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 Administrator's Agreement, entered into by the parties on or
about September 20, 1988, shall remain in full force and effect.
)70-
The Amendatory Agreement is entered into this .>/y of
November, 1990.
\
Lorr..4 41 -
CITY MANAG-. 'H:TAT
CITY CLERK BY it :LLC - Z, ) l6 - g'OC.. , -'1:1"r
an wawa ma /
) -5
(agr/wetzel)
APPENDIX B
ADMINISTRATIVE COMPENSATION
A. In consideration of the services to be performed by Administrator here-
under, 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 avail-
able 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 the 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 avail-
able 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 the 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 avail-
able at the rate of $80 per hour.
At the end of each contract year 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 adminis-
tration 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, or $5,250 for 10/1/90 - 10/1/91,
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 term there are 65 Medical Only and 17 Indemnity claims reported
which occurred during the contract term, the billing would be:
65 Medical Only x $68 $ 4,420
17 Indemnity x $325 5,525
Loss Control 5,250
Total $15,195
Less: Minimum and Deposit Fee Paid (15,000)
Additional Fees Due $ 195
However, if one quarter (3 months) later, late reported claims occurring
during the contract increase the totals to 70 Medical Only and 20 Indem-
nity claims, the billing would then be:
70 Medical only x $68 $ 4,760
20 Indemnity x $325 6,500
Loss Control 5,250
Total $16,510
Less: Minimum and Deposit Fee Paid (15,195)
Additional Fees Due $1,315
B. Fees will be due within twenty (20) days of commencement of this Agree-
ment 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.
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 con-
tained in the computer reports required by Appendix B of the Agreement.
A final adjustment of fee will be made as of eighteen (18) months fol-
lowing the end of the contract term. Any claims occurring during the
term of this Agreement shwich 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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