HomeMy WebLinkAboutR-1992-D6219 Worker’s CompIle RESOLUTION NO.
D 621
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EXHIBIT I
A RESOLUTION authorizing execution of a 1992 amendment to Workers'
Compensation Third Party Administrator's Agreement with Scott Wetzel
Services, Inc for Worker's Compensation Services for the years 1993 and
a portion of 1994.
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 aforementioned
agreement in 1989, 1990 and 1991 by substitution of a new Appendix B, and
WHEREAS the City of Yakima and Scott Wetzel Services, Inc desire to
amend the aforementioned amended agreement by the substitution of a new
Appendix B to such agreement, and
WHEREAS, except as amended in the provisions of the proposed 1992
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, now, therefore,
BE IT RESOLVED BY THE THE CITY COUNCIL OF THE CITY OF YAKIMA.
The City Manager and the City Clerk are hereby authorized and directed to execute
the attached and incorporated 1992 Amendment to Workers Compensation Third
Party Administrator's Agreement which includes Schedule B
ADOPTED BY THE CITY COUNCIL this e'r day of December 1992.
ATTEST
o £0--6.€
CITY CLERKS
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Qu- Aiity,„64,
MAYOR
1992 AMENDMENT TO WORKER'S COMPENSATION
THIRD PARTY ADMINSTRATOR'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 aforementioned
agreement in 1989, 1990, and 1991, 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 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 Administrators
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 the
1992.
City Manager
City Clerk
City Contract No. cg -! 14 lc)
APPENDIX B
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day of December,
ADMINISTRATIVE COMPENSATION
A. In consideration of the services to be performed by Administrator hereunder,
City shall pay to Administrator:
For the term 1/1/88 - 7/31/89 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 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 $15,0000 due
in equal quarterly installments during the contract 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 services requested by the city will be available at the rate of $80 per
hour.
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For the term of 10/1/91 - 12/31/92 an annual 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 fee:
Medical Only $ 73
Indemnity $348
For the term 1/1/93 to 6/30/94 an annual 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 fee:
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.
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 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, $5,625 for 10/1/91-12/31/92
or $6,240 for 1/1/93 - 6/30/94, 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
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 $80 $5,200.
17 Indemnity x $375 $6,375.
Loss Control $6,240.
Total
Less: Minimum and Deposit Fee Paid
Additional Fees Due
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$17,815.
($17,000.)
$815.
However, if one quarter (3 months later) late reported claims occurring
during the contract increases the total to 70 Medical Only and 20 Indemnity
claims, the billing would then be:
70 Medical Only x $80 $5,600.
20 Indemnity x $375 $7,500.
Loss Control $6,240.
Total
Less: Minimum and Deposit Fee Paid
Additional Fees Due
$19,340.
($17,815.)
$1,525.
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. For the terms 10/1/88 -10/1/89,10/1/89 -10/1/90,10/1/90 -10/1/91 and
10/1/91 - 12/31/92 billing for excess claims will be submitted at the end of the
term and quarterly thereafter based for the term 1/1/93 - 6/30/94, billing for
excess claims will be submitted as soon as the minimum is exceeded and
quarterly thereafter. Billings for all terms will be 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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