HomeMy WebLinkAboutR-1995-102 Scott Wetzel Services, Inc.RESOLUTION NO. R 95
A RESOLUTION authorizing the City Manager and City Clerk of the City of Yakima
to execute an amendment to the Workers' Compensation Third Party
Administrators Agreement with Scott Wetzel Services, Inc. for
workers' compensation services for the years 1995 and a portion of
1996.
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WHEREAS, the City of Yakima and Scott Wetzel Services, Inc. entered into an
agreement entitled "Workers' Compensation Third Party Administrators Agreement"
on or about September 20, 1988, whereby Scott Wetzel Services, Inc. agreed to
investigate, settle, and otherwise administer the City's workers' compensation claims;
and
WHEREAS, the parties have previously amended the aforementioned
Agreement in 1989, 1990, 1991, 1992, 1993, and 1994 by substitution of a new Appendix
"B"; and
WHEREAS, the parties to the aforementioned agreement desire to amend the
compensation provisions of said Agreement utilizing the proposed 1995 Amendatory
Agreement, and by substitution of a new Appendix "B," a copy of both is attached
hereto; and
WHEREAS, except as amended in the provisions of the proposed 1995
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; and
WHEREAS, the City Council deems it to be in the best interest of the City of
Yakima to enter into the proposed 1995 Amendatory Agreement of said Agreement
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 City Clerk of the City of Yakima are hereby authorized
and directed to execute the attached and incorporated 1995 Amendment to Workers'
Compensation Third Party Administrators Agreement with Scott Wetzel Services, Inc.
ADOPTED BY THE CITY COUNCIL this !Sthday of July , 1995.
ATTEST: May r Pro Tem
/2-6--6,4-4.._
City Clerk
)res 195 wettel eaendmeat.ye
1995 AMENDMENT
TO WORKERS' COMPENSATION
THIRD PARTY ADMINISTRATORS AGREEMENT
WHEREAS, the City of Yakima and Scott Wetzel Services, Inc. entered
into an agreement entitled 'Workers' Compensation Third Party Administrators
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, 1991, 1992, 1993, and 1994 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
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.
CITY OF YAKIMA
By:
D k Tais, ity Manager
/J/g93"
DATE:
ATTEST:
T1 Clerk'-?
CSN R CT NO. -I'S. E (-qc
STATE OF WASHINGTON )
:ss.
County of Yakima
SCOTT WETZEL SERVICES, INC.
By:
Its:
DATE:
',A/J/1
I certify that I know or have satisfactory evidence that
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the person who appeared before me, and said person acknowledged that
he/she signed this instrument, on oath stated that he/she was authorized to
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execute the instrument and acknowledged it as the I, Vof Scott
Wetzel Services, Inc., to be the free and voluntary act of such .arty the uses
and purposes mentioned in the instrument.
DATED: g"/ivAS—
,oS�eY.>''B'' ELLEN M. HEITMANN
= MY COMMISSION # CC 440475
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EXPIRES: February 21, 1999
"%; q ;4Q' Bonded Thru Notary Public Underwriters
Page 2 of 2
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NOTARY PUBLIC in and
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APPENDIX B
ADMINISTRATIVE COMPENSATION
A. In consideration of the services to be performed by Administrator
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 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 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 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 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 10/1/91 - 12/31/92, a minimum and fee of $15,000 due in
equal quarterly installments during the first twelve (12) months. The
minimum fee will be adjusted on the basis of the following fees:
Medical Only $ 73
Indemnity $348
A fee of $5,625 for 75 hours of loss prevention services to be provided
during the first twelve (12) months of the term, will be included in such
minimum fee. Loss prevention services requested by City in excess of 75
hours 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.
For the term 1/1/93 - 6/30/94, a 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 fees:
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.
For the term 7/1/94 - 6/30/95, an annual minimum and fee of $21,275
due in equal quarterly installments during the contract year. The
minimum fee will be adjusted on the basis of the following fees:
Medical Only $ 85
Indemnity $400
A fee of $1,600 for administrative services and a fee of $6,375 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.
For the term 7/1/95 - 6/30/ an annual minimum and fee of $24,280
due in equal quarterly installments during the contract year. The
minimum fee will be adjusted on the basis of the following fees:
Medical Only $ 90
Indemnity $430
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The fee of $2,280 for administrative services and a fee of $6,750 for 75
hours of loss prevention services will be included in such minimum fee.
Loss prevention requested by the City in excess of 75 hours annually will
be available at the rate of $90. Industrial hygiene services requested by
the City will be available at the rate of $127.50 per hour.
At the end of each contract term, 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, $5,250 for 10/1/90 -
10/1/91, or $5,625 for 10/1/91 - 12/31/92, $6,240 for 1/1/93 -
6/30/94= $6,375 for 7/1/94 - 6/30/95, or 75 hours of loss control for
$6,750 for 7/1/95 - 6/30/96 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 20 Indemnity claims reported which
occurred during the contract term, the billing would be:
65 Medical Only x $90 $ 5,850
20 Indemnity x $430 8,600
Administrative Fee 2,280
Loss Control 6.750
Total $24,280
Less: Minimum and Deposit Fee Paid(24,280)
Additional Fees Due -0-
However, if one quarter (3 months) later, late reported claims occurring
during the contract increase the totals to 70 Medical Only and 22
Indemnity claims, the bilking would then be:
70 Medical Only $90 $ 6,300
22 Indemnity x $430 9,460
Administrative Fee 2,280
Loss Control 6.750
Total $24,790
Less: Minimum and Deposit Fee Paid(24,280)
Additional Fees Due $510
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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.
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