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Home My WebLink About1992-040cooplyb o ORDINANCE NO, AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF DENTON AND COOPERS & LYBRAND RELATING TO PROFESSIONAL CONSULTING SERVICES FOR THE CITY'S EMPLOYEE HEALTH INSURANCE PROGRAM, AUTHORIZING THE EXPENDITURE OF FUNDS THEREFORE, AND PROVIDING AN EFFECTIVE DATE THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION I That the City Manager is authorized to execute an agreement between the City of Denton and Coopers & Lybrand, for the performance of specific management tasks relating to the City's Employee Health Insurance Program under the terms and conditions contained within SECTION II That the City Council hereby authorizes the expen- diture of funds not to exceed $37,000 SECTION III That this ordinance shall become effective imme- diately upon its passage and approval PASSED AND APPROVED this the 1L day of , 1992 BOB CASTLEBERRY, ATTEST JENNIFER WALTERS, CITY SECRETARY BY APPR ED AS TO LEGAL FORM DEBRA A DRAYOVITCH, CITY ATTORNEY AGREEMENT BETWEEN THE CITY OF DENTON AND COOPERS & LYBRAND, INC The City of Denton, Texas, a Municipal Home Rule City situated in Denton County, Texas, hereinafter called "City", acting herein by and through its City Manager and Coopers & Lybrand, Inc, a professional corporation doing business in Texas, hereinafter called "Consultant", hereby mutually agree as follows I SERVICES TO BE PERFORMED 0ty hereby retains Consultant to perform the hereinafter designated professional services Consultant agrees to perform the following services Oversee/manage provider contracts within the network Consultant will establish a Provider Utilization pro am to momtor provider utilization gr Provider Utilization reports will be communicated quarterly or as appropriate The following providers will be involved in the program • HCA Denton Community Hospital • Denton Regional Medical Center • Psychologists, Licensed Professional Counselors, and other mental health providers • Denton Independent Physicians Association • North Texas Medical/Surgical, P A • Harris Methodist Hospital • Harris H-E-B Hospital • Humana Medical City Dallas Hospital Utilization parameters under review include patient days per 1,000 participants, admission per 1,000 participants, individual provider practice patterns, hospital cost per day, cost per stay, and network vs non -network utilization Develop and maintain Network Provider listing Develop Plan Profit & Loss report monthly and communicate results to Personnel department Utilizing claims history data, enrollment information and plan design information, we will negotiate the Philadelphia American Life Insurance Company (PALICO) renewal effective O1/O1/p93 on behalf of the City 382 We will obtain claims history data tope from PALICO and perform statistical claims analysis to better monitor and control plan utilization In addition, as part of our Provider Utilization Program, we will forward specific claims data to providers identified above for assistance in analyzing and enforcing proper treatment protocols I. ; - I , , , , I I Consultant will develop management letter outlining activities of the year and present to Council annually F, a ,T Consultant agrees to meet with City's representatives quarterly to review plan experience and management issues F Consultant shall exercise the same degree of care, skill and diligence in the performance of these services as is ordinarily provided by professionals under similar circumstances II TERM OF AGREEMENT Consultant shall commence rendering services immediately upon receiving notification of contract approval The City shall evaluate Consultant's performance midyear and the contract shall terminate December 31, 1992 III COMPENSATION TO BE PAID CONTRACTOR City agrees to pay Consultant for the services performed hereunder as follows A. Amount of Payment For Services City agrees to pay Consultant for the services performed hereunder as estimated below ESTIMATED TASK C&L HOURS FEES 1 Network Management Oversee provider network On -going $4,400 contracts to ensure 32 hours coordination and compliance under contracts Seven (7) provider contracts will be managed in terms of Provider/Plan Utilization 2 383 ESTIMATED TASK C&L HOURS fu$ Communicate with providers 56 8,200 quarterly to discuss plan performance and utilization Communicate with City quar- 10 1,400 terly to discuss plan performance Develop and maintain Network 36 3,600 Provider listing 2 Financial Management Develop Plan Profit & Loss 32 4,800 update report monthly and forward to City to analyze information Negotiate PALICO renewal for 01/01/93 plan 3 Data Management Obtain claims history 58 5,800 data tape from PALICO and perform statistical analysis as appropriate C&L will produce MedBase report package sent -annually to review plan utilization 4 Report to Council Annually Prepare for and present management 16 3,000 letter to Council outlining activities and status of the plan 5 On -site Meetings Prepare for and attend quarterly 20 3,000 meeting with City representatives to discuss plan activities Anticipate attending four addi- tional meetings during year to discuss plan status Total Hours 260 34,200 Estimated out-of-pocket expenses (Travel, FAX, Federal Express, etc) 2.800 TOTAL FEES & EXPENSES $37,000 3 Consultant will charge the City based on actual professional time spent and expenses incurred In no event will the total project cost exceed $37,000 for Consultant's fees and expenses unless Consultant is requested to perform tasks outside the scope presented in the proposal If additional assistance is required from the Consultant, estimates of professional fees will be provided and presented to City management for approval before proceeding with any additional tasks Tiiodf Consultant and City expressly understand and agree that Consultant shall not �Ol receive any compensation for the services provided for herein fm—die-Exy, from any other source, including, but not limited to PALICO B Dates of Payment The City will pay Consultant on a monthly basis, within thirty (30) days of receipt of invoices for completion of services provided for herein IV SUPERVISION AND CONTROL BY CITY It is mutually understood and agreed to, by, and between City and Consultant that Consultant is an independent contractor and shall not be deemed to be or considered an employee of the City of Denton, Texas for the purposes of income tax, withholding, social security taxes, vacation or sick leave benefits, workers compensation, or any other City employee benefit The City shall have supervision and control of Consultant and any employee while on City premises, and it is expressly understood that Consultant shall perform the services hereunder according to the attached Consultant's proposal at the direction of the City Manager of the City of Denton or his designee under this agreement V SOURCE OF FUNDS All payments to Consultant under this Agreement are to be paid by the City from funds appropriated by the City Council for such purposes in the Budget of the City of Denton VI INSURANCE Consultant shall provide at its own cost and expense workmen s compensation insurance, liability insurance, and all other insurance necessary to protect Consultant in the operation of Consultant's business VII INDEMNIFICATION Consultant shall and does hereby agree to indemnify and hold harmless the City from any and all damages, loss, or liability of any kind whatsoever to the extent proximately caused by the error, omissto% or negligent act of Consultant, its officers, agents, employees, invitees, and other persons from whom it is legally liable, in the course oftheperformance of this Agreement, and Consultant will, at its cost and expense, defend and protect the City of Denton against any and all such claims and demands The acceptance of Consultant's services by the City shall not operate as a waiver of such right of indemnification 385 VIII CANCELLATION City and Consultant each reserve the right to cancel this Agreement at any time by giving the other party fourteen (14) days written notice of its intention to cancel If the agreement is cancelled before completion, the City agrees to compensate Consultant for services provided and expenses furred prior " to notice of cancellation Executed this the .3 day of //t.&,.t1992 CITY OF DENTON, TEXAS m ATTEST JENNIFER WALTERS, CITY SECRETARY �A . : Pi —WO ./.M�M' • �' • M COOPERS BY TITLE :. ♦? DATE Z41?1t� The Director of Personnel/Employee Relations for the City of Denton, Texas is hereby authorized to carry out the terms of this agreement on behalf of City of Denton, Texas & /11 LLOYD V HARRE CITY MANAGER � �-_ __ � E t i i Ei r r x f it i i i r �i �k �� I { I I �' � � �i � t 4 � i I i , i i 4 � I f�( 1� _ A .�_ �