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HomeMy WebLinkAboutR-1991-D6016 Scott Wetzel ServicesRESOLUTION NO. D-6016 'A RESOLUTION authorizing. the City Manager and the City Clerk to execute an amendment to the agreement with Scott Wetzel Services, Inc., for workers' compen- sation services in 1992. WHEREAS, the City of Yakima has a labor force in excess of 600 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 Yakima Resolution Number D-5502 whereby Scott Wetzel agreed to investigate, settle, and otherwise administer the City's workers' compensation claims; and WHEREAS, the parties to the aforementioned agreement wish to amend the compensation provisions of that agreement; and WHEREAS, City Council deems it to be in the,best interest of the City of Yakima to enter into an amendment to the con- tract 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 the City Clerk of the City of Yakima. are hereby authorized and directed to execute the attached and incorporated 1991 Amendment to Workers' Compensation Third Party Administrator's Agreement with Scott Wetzel Services, Inc. ADOPTED BY THE CITY COUNCIL this 22nd day of October, 1991. Mayor ATTEST: Ln-�L City Clerk (res/wetzel) 1991 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 and 1990 by substitution of a new Appen- dix B, now, therefore, The City of Yakima and Scott Wetzel Services, Inc. hereby amend the aforementioned amended agreement by the 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 Administrator's Agreement, entered into by the parties on or about September 20, 1988, shall remain in full force and effect. The Amendatory Agreement is entered into this day of October, 1991. CITY MANAGER SCOTT WETZEL CITY CLERK By its: (agr/wetzel) APPENDIX B ADMINISTRATIVE COMPENSATION A. In consideration of the services to be performed by Adminis- trator 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 con- tract 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 con- tract 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 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 con- tract year. The minimum fee will be adjusted on the basis of the following fee: 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 Page 1 of 3 (misc/appendix) services requested by the City will be available at the rate of $80 per hour. For the term of 10/1/91 - 10/1/92 an annual minimum and fee of $15,000 due in equal quarterly installments during the con- tract year. The minimum fee will be adjusted on the basis of the following fee: Medical Only $ 73 Indemnity $348 A fee of $5,625 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. 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 Admin- istrator 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, or $5,250 for 10/1/90 - 10/1/91, or $5,625 for 10/1/91 - 10/1/92, 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 annual 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 $73 17 Indemnity x $348 Loss Control Total Less: Minimum and Deposit Fee Paid $ 4,745 5,916 5,625 $16,286 (15,000) Additional Fees Due $1,286 Page 2 of 3 (misc/appendix) However, if one quarter (3 months later, late reported claims occurring during the contract increases the total to 70 Medi- cal Only and 20 Indemnity claims, the billing would then be: 70 Medical Only x $73 20 Indemnity x $348 Loss Control Total Less: Minimum and Deposit Fee Paid S 5,110 6,960 5,625 $17,695 (16,286) Additional Fees Due $1,409 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. 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. Page 3 of 3 (rnisc i appendix )