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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. blk /City of Yakima /2d