Loading...
1992-040coop[yb 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 perfor~ance 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 5~(~ day of ~, 1992 BOB CASTLEBERRY, ~OR~ ATTEST JENNIFER WALTERS, CITY SECRETARY APPR~ED AS~TO LEGAL FORM DEBRA A DRAYOVITCH, CITY ATTORNEY AGREEMENT BETWEEN THE CITY OF DENTON AND COOPERS & LYBRAND, INC The Chty of Denton, Texas, a Mumo~>al Home Rule City situated in Denton County, Texas~ hereinafter called "C~ty", acting here~n by and through its City Manager and Coop?rs. & Lybrand, Inc, a professional corporatmn dmng bus~ness ~n Texas, herelnat'ter caneo "Consultant", hereby mutually agree as follows I SERVICES TO BE PERFORMED C~ty hereby retains Consultant to perform the hereinafter designated professional semces Consultant agrees to perform the follovong semces A Oversee/manage prowder contracts within the network C. onsult.ant will estabhsh a Provider Uuhzat~on p. rogram to momtor prowder utmzauon Provider Utihzatmn reports will ~be communicated quarterly or as appropriate The following providers will be revolved in the program · HCA Denton Commumty Hospital · Denton Regional Medical Center · Psychologtsts, Licensed Professional Counselors, and other mental health prowders · Denton Independent Physicians Association · North Texas Medical/Surgical, P A · Harm Methodist Hospital · Hams H-E-B Hospital · Humana Medical C~ty Dallas Hospital Uuhzatwn parameters under rewew include paUent days per 1,000 partlapants, adnnsslon per 1,000 partwlpants, individual provider practice patterns, hospital cost per day, cost per stay, and network vs non-network utd~zat~on Develop and maintain Network Provider hstmg Develop Plan Profit & Loss report monthly and communicate results to Personnel department Utfl~mng clmms hxstory data, enrollment reformation and plan design mformat~on, we will negotmte the Phdadelphm American Life Insurance Company (PA! ICO) renewal effective 01/01/93 on behalf of the C~ty 382 c We will obtmn clmms history data tape from PALICO and perform stat~stical claims analogs to better momtor andeontrol plan utilization In addition, as part of our rrovider Utilization Program, we vail forward specific claims data to providers identified above for assistance m analyzing and enforcing proper treatment protocols D Report to Council Annually Consultant vall develop management letter outhmng actlvmes of the year and present to Council annually E Consultant agrees to meet w~th City's representatives quarterly to review plan experience and management issues F Consultant shall exercise the same degree of care, sNl and d~hgence in the performance of these services as is ordinarily provided by professionals under slmalar circumstances II TERM OF AGREEMENT Consultant shall commence rendenng services immediately .u, pon receiwng notification of contract approval The C~ty shall evaluate Consultants performance madyear and the contract shall termanate December 31, 1992 II1 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 Oversee provider network On-going $4,400 contracts to ensure 32 hours coord~nation and comphance under contracts Seven (7) provider contracts w~ll be managed m terms of Provider/Plan UtlhZatlon 2 383 ESTIMATED TASK ~ FEE~ Commumcate w~th prowders 56 8,200 quarterly to d~scuss p. lan performance and utlhzat~on Commumcate vath City quar- 10 1,400 terl~' to d~scuss plan perxormance Develop and ma]ntmn Network 36 3,600 Prowder hstmg 2 Develop Plan Profit & Loss 32 4,800 update report monthly and forward to C~ty to analyze reformation Negoaate PALICO renewal for 01/01/93 plan 3 ~ Obtain claims history 58 5,800 data tape from PALICO and perform staust~cal analys~s as appropriate C&L w~ll produce MedBase report package serm-annually to review plan utfl]zaaon 4 Report to Council Annually Prepare for and present management 16 3,000 letter to Councd outhmng act]wtxes and status of the plan Prepare for and attend quarterly 20 3,000 meeting w~th C~ty representatives to d~scuss plan actxv~t]es Anticipate attendmlg four add]- aonal meetings dunng year to discuss plan status Total Hours 260 34,200 Estimated out-of-pocket expenses (Travel, FAX, Federal Express, ere ) 2.800 TOTAL FEES & EXPENSES $37,000 3 384 Consultant wall charge the City based on actual professional time spent and expenses incurred In no event wall the total project cost exceed $37,000 for Consultant's fees and expenses unless Consultant ts requested to perform tasks outside the scope presented In the proposal If additional assistance ts required from the Consultant, estimates of professional fees wall be l~rovaded and presented to City management for approval before proceeding vath any additional tasks Consultant and Qty expressly understand and agree that Consultant shall not recewe any compensation tot the services provided for herein f'tn-n'.~*-C-~, from any other source, including, but not llrmted to PALICO B Dates of Payment The City wall pay Consultant on a monthly basts, thirty (30) days of receipt of mvoices for completion of serwces provided for herein IV SUPERVISION AND CONTROL BY CITY It ts mutually understood and agreed to, by, and between City and Consultant that Consultant ~s an independent contractor and shall not be deemed to be or considered an employee of the Qty of Denton, Texas for the purposes of income tax, wathholdmg, social security taxes, vacation or sick leave benefits, worker s compensation, or any other City employee benefit The City shall have superwsion and control of Consultant and any employee while on C;ty preimses, and ~t ts expressly understood that Consultant shall perform the sevaces hereunder according to tile attached Consultant's proposal at the d:rect~on 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 m the Budget of the City of Denton VI INSURANCE Consultant shall provide at its own cost and expense workmen s compensation insurance, habihty ~nsurance, and all other insurance necessary to protect Consultant m the operation of Consultant's bnsmess Vii INDEMNIFICATION Consultant shall and does hereby agree to mdemmfy and hold harmless the City from any and all damages, loss, or hablllty of any kind whatsoever to the extent proximately caused by the error, ormssion, or negligent act of Consultant, its officers, agents, employees, mvatees, and other persons from whom it ts legally liable, in the course of the performance of this Agreement, and Consultant wall, 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 sennces by the City shall not operate as a waiver of such right of lndemmflcauon 4 385 VIII CANCELLATION City and Consultant each reserve the right to cancel this Agreement at any time by glvtng the other party fourteen (14) da~'s written notice of its mtem~on to cancel If the agreement ~s cancelled before completion, the City agrees to compensate Consultant for servtces prowded and expenses ~,~urred prior to nouce of cancellation Executed th~s the ~}~Me~' 'day of 2~~92 CITY OF DENTON, TEXAS BOB CAS ATYEST JENNIFER WALTERS, CITY SECRETARY API]I~OVED~S TO LEGAL FORM DEI~o~ A DtRAYOVITCH, CITY ATTORNEY BY ~ _ ) COOPERS & LYBRAND DATE 5