1993-056J:\WPDOCS\ORD\COOPER.ORD
ORDINANCE NO. -'D
AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN
THE CITY OF DENTON AND COOPERS & LYBRAND FOR PERSONAL AND PROFES-
SIONAL SERVICES RELATED TO THE CITY'S EMPLOYEE HEALTH INSURANCE
PROGRAM; AND PROVIDING AN EFFECTIVE DATE.
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION I. That the City Council hereby approves the
agreement between the City of Denton and Coopers & Lybrand for
personal and professional services related to the City's employee
health insurance program.
SECTION II. That the City Council approves the expenditure of
funds for said agreement as authorized in the 1992-93 Annual
Program of Services.
SECTION III. That this ordinance shall become effective
immediately upon its passage and approval.
PASSED AND APPROVED this the ~ day of ,
1993.
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
~y
APPROVED AS rO LEGAL FORM:
DEBRA A. DRAYOVITCH, CITY ATTORNEY
BY:
MAR 2 4 19M
AGREEMENT BETWEEN THE CITY OF DENTON
AND COOPERS & LYBRAND I a M I y Ail g: 18
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:
L SERVICES TO BE PERFORMED
City hereby retains Consultant to perform the hereinafter designated professional services.
Consultant agrees to perform the following services:
A. Network Management
► Consultant will assist in directing the Provider Utilization program to
monitor provider utilization. Provider Utilization reports will be
developed and communicated semi-annually or as appropriate. The
following providers will be involved in the program:
• HCA Denton Community Hospital
• Denton Regional Medical Center
• Denton Independent Physicians Association
• Psychologists, Licensed Professional Counselors, and other
mental health providers.
• North Texas Medical/Surgical, P.A.
It is understood that Consultant will be responsible for analyzing data
as appropriate and direct the meetings.
► Utilization parameters under review include patient days per 1,000
participants, admission per 1,000 participants, individual physician
practice patterns, hospital cost per day, cost per stay, network vs. non-
network utilization and a comparison of plan to State and National
data.
[Z :6 1 c~`,'
1
Prepared: 01/27/93
► Maintain the Network Provider Listing.
Direct a total of four (4) meetings to discuss utilization review issues.
B. Financial Management
► Utilizing claims history data, enrollment data, and plan design data,
negotiatewith Philadelphia American Life Insurance Company(PALICO)
renewal effective 01 /01 /94.
► Provide Profit & Loss report on monthly basis.
C. Data Management
► Obtain claims history data tape from PALICO and perform statistical
claims analysis regarding plan utilization as appropriate. Submit claims
data to providers identified above for analysis as appropriate and
ensure that results are communicated to Human Resources staff.
► Perform a post-implementation, on-site claims review of the PALICO
claims office to determine that claims are being processed in
accordance with plan design and advise management on results of on-
site review.
D. Retiree Issues
► Assist City in defining its short-term and long-term positions relative to
offering health benefits to retirees. In performing this analysis
Consultant will work with current carrier (PALICO) to assess projected
costs and rates for retiree population.
► Report on general State and National trends regarding retiree health
benefits.
► Assist in developing a questionnaire to be used to survey City of
Denton's employees on the issues of retiree benefits.
► Attend a total of three (3) on-site meetings to discuss retiree issues with
EIC, and City management.
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E. Wellness Program
► Work with City's existing Wellness Committee, in a limited capacity to
assist the Committee in reviewing alternatives and options available to
the City.
► Provide Committee with specific claim experience data as appropriate
in connection with development of standard management reports.
► Attend two (2) meetings with the Wellness Committee to discuss issues
and provide recommendations as necessary.
F. Report to Council Annually
► Consultant will develop management letter outlining activities of the
year and present to Council annually.
G. On-Site Meetings
► Consultant agrees to meet with City's representatives to review plan
experience and management issues as follows:
• City Management Meetings - - 3 meetings
• Employee Insurance Committee Meetings - - 10 meetings
• Provider Utilization Meetings - - 4 meetings
• Wellness - 2 meetings
H. 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.
11. TERM OF AGREEMENT
Consultant shall commence rendering services immediately upon receiving notification of
contract approval. This arrangement will be evaluated semi-annually and remain intact
through December 31, 1993.
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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, from hereunder at the hourly rate set forth in
Attachment A.
ESTIMATED
TASK C&L HOURS FEES
1. Network Mana eg ment 50 $6,000
• Direct Provider Utilization
program by developing data
requested by PALICO for
Provider Utilization meetings
• Schedule four (4) meetings
of Provider Utilization Committee
• Maintain Network Provider Listing
2. Financial Management 32 31300
• Assist the City in developing new
rate structure based upon plan
utilization and level of coverage.
For example, new coverage levels
could be:
- Employee Only
- Employee + 1 Dependent
- Employee + 2
- Employee + Family
• Negotiate PALICO renewal for
01/01/94 plan.
• Provide financial and renewal
updates as appropriate.
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TASK
3. Data Management
• Obtain claims history data tape
from PALICO and perform stat-
istical analysis as appropriate.
• Develop Executive Summary of
claims data using appropriate
descriptive state and national
statistics.
4. Retiree Issues
• Assess projected costs/benefits
as proposed by PALICO.
• Assist in developing employee
questionnaire and management
position paper.
• Attend three (3) on-site meetings
• Present data on State and National
trends.
5. Wellness Program
• Meet with Wellness Committee
to discuss goals.
• Present health data/utilization.
• Develop alternatives to adjust
premiums based upon health
factors.
• Present data on industry standards.
6. Report to Council Annually
Present management report to
Council outlining activities and
status of the plan.
ESTIMATED
C&L HOURS
65
36
20
20
FEES
61500
5,600
3,000
3,200
5
ESTIMATED
TASK C&L HOURS FEES
7. On-Site Meetings
• EIC Meeting - - 10 meetings 40 6,400
• City Management/Directors - - 12 1,800
3 meetings
• Wellness Committee - - 2 meetings 8 11200
Total Hours 283 371000
Estimated out-of-pocket expenses 1,300
(Travel, FAX, Federal Express, etc.)
TOTAL FEES & EXPENSES 38 300
Consultant will charge the City based on actual professional time spent and
expenses incurred. In no event will the total project cost exceed $38,300 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 processing with any.
additional tasks.
Consultant and City expressly understand and agree that Consultant shall not
receive any compensation for the services provided for herein, 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.
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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, worker's 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, omission, or negligent act of Consultant, if officers, agents, employees, invitees,
and other persons from whom it is legally liable, in the course of the performance 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.
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VIII. CANCELLATION
City and Consultant each reserve the right to cancel this Agreement at ?gy,{'i'F3 lag~ilgiQir~l
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 incurred prior to notice of cancellation.
Executed this the CG/` day of 1993.
CITY OF DENTON, TEXAS
BY:
ATTEST:
JENNIF WALTERS, CITY . SECRETARY
BY: V,44 to j
APPROVED AS TO LEGAL FORM:
DEBRA DRAY OVIT CITY ATTORNEY
BY: /
BOB CASTLEBERRY, MA
COOPERS & LYBRAND
BY:
TITLE:
DATE:
The Director of Human Resources for the City of Denton, Texas is hereby authorized to carry
out the terms of this agreement on behalf of the City of D ton, Texas.
i
Lloyd V. Harrell
City Manager
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