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
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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
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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
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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
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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
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