1989-0942735E
NOTE THIS ORDINANCE HAS BEEN AMENDED BY ORDINANCE NO 89-167
NO F9 09y
AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT
WITH COOPERS & LYBRAND FOR CONSULTING SERVICES IN DEVELOPING A
PROVIDER PLAN FOR THE CITY'S INSURANCE PLAN, 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~etween the City of Denton and Coopers & Lybrand for
consulting services in developing a provider plan for the City's
insurance plan, under the terms and conditions contained in
agreement, a copy of which is attached hereto and made a part
hereof
SECTION II That the City Council hereby authorizes the
expend t- ure oT funds not to exceed Twenty Thousand ($20,000)
Dollars
SECTION III That this ordinance shall become effective
imme ate y upon its passage and approv 1
PASSED AND APPROVED this the /y of I~L , 1989
J E HOPKINS
ATTEST
CITY _S7ECRETARY
0 h' ALT RES, '
APPROVED AS TO LEGAL FORM
DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY
BY
THE STATE OF TEXAS § AGREEMENT BETWEEN 1HE CITY OF
DENTON AND COOPERS & LYBRAND
COUNTY OF DENTON §
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, a corporation hereinafter called 'Consultant', hereby
mutually agree as follows
I SERVICES TO BE PERFORMED
A Consultant agrees to develop providers arrangements for the City
of Denton for Plan Year beginning November 1, 1989 Arrangements will
be developed and presented to the City for review by their internal
counsel for final review and signature
B Consultant will provide the following services
Meet with City management to develop
Provider negotiation strategies includingnegotiations with local hospitals, physicians
groups, individual physicians, and metroplex
hospitals
Meet with AMI Denton Regional Medical Center
representatives and Denton Community Hospital
representatives to review their proposals
(anticipated approximately three meetings with
each of these facilities)
Based upon additional data analysis, Consultant
will meet with selected metroplex facilities to
establish an arrangement this area of negotiations
may best be pursued through ECHO group
Consultant will negotiate either directly with the
Denton area physicians (with letters of agreement
outlining plan design, describe contractual
arrangements, and request whether or not the
physician desires to be a network provider), or
representatives of the Denton IPA and North Texas
Physicians & Surgeons Association (Consultant will
develop a proposal and initiate negotiations with
representatives from these groups)
HOURS
15
30
39
30
- 2 -
Upon conclusion
consultant will
a status report
Consultant will
the appropriate
and submit it t
of initial meetings with providers,
meet with City management to provide
develop a final draft contract with
hospitals and identified physicians
D the City for finalization
II TERM OF AGREEMENT
22
20
Consultant shall commence rendering services immediately upon
receiving notification of contract approval Consultant agrees to
develop providers arrangements for City for Plan Year beginning
November 1, 1989
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 Professional
,
C&L Hours Fees
Develop providers
arrangements for Plan Year 156 19,500
beginning November 1, 1989
Estimated out-of-pocket
expenses (travel, 1AX, 500
Federal Express, etc )
TOTAL FEES AND EXPENSES
Consultant will charge the City an hourly rate of $125 00 per hour
based on actual professional and staff time spent and expenses
incurred In no event will the total project cost exceed $20,000 for
Consultant's fees and expenses unless Consultant is requested to
performitasks outside the scope presented in the proposal if
additional assistance is requested from the Consultant, estimates of
professional fees will be provided and this agreement shall be amended
b Dates of Payment
city will pay Consultant on a monthly basis, within thirty (30)
days of receipt of invoices for completion of services provided
for herein
I
-3-
IV SUPERVISION AND CONTROL BY CITY
It is mutually understood and agreed to by and between City and
Consultant that Consultant is an independent Consultant 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 City shall not have supervision and control of
Consultant and any employee of Consultant 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
general 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 of Denton from any and all damages, loss or liability
of any kind whatsoever, by reason of injury to property or third
persons to the extent directly and proximately caused by the error,
omission or negligent act of Consultant, its officers, agents,
employees, invitees, and other persons for 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
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 incurred prior to notice of cancellation
- 4 -
Executed this the zr~tay of July, 1989
CITY
BY
ATTEST
'
CIT
Y S
UR
TR
,
APPROVED AS TO LEGAL FORM
DEBRA A DRAYOVITCH, CITY ATTORNEY
BY
TEXAS
COOPERS & LYBRAND
BY
DATE 7
That Thomas W Klinck, is
administer the provisions of
,7 - / 1'
DAME
hereby designated as the person to
this agreem ntAME
/
4~
LL, CITY MANGER
0
5597P
071189 0400
2848L
ORDINANCE NO f?-/ AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE CITY
MANAGER TO EXECUTE AMENDMENT NO 1 TO AN AGREEMENT BETWEEN THE
CITY OF DENTON AND COOPERS & LYBRAND, INC RELATING TO
PROFESSIONAL CONSULTING SERVICES, AND PROVIDING AN EFFFCTIVE DATE
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION I That the City Manager is hereby authorized to
execute AmencTment No 1 to the contract between the City of
Denton and Coopers & Lybrand, Inc for professional consulting
services relating to the employer's insurance plan
SECTION II That the City Council hereby authorizes the
expen Cure o unds not to exceed Thirteen Thousand ($13,000 00)
Dollars
SECTION III That the City Secretary is hereby directed to
attac a copy o this ordinance and the amendment to the contract
which is attached hereto, to Ordinance No 89-94, adopted by the
City Council on the 18th day of July, 1989
SECTION IV That this ordinance shall become effective
imme ate y upon its passage and approval
PASSED AND APPROVED this the '90-"day ofd , 1989
, Y61~ -
ATTEST
JENNIFER WALTERS, CITY SECRETARY
BY G!/2
APPROVED AS TO LEGAL FORM
DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY
BY Lka)- G7~ /g 7/ L7L~ /il
THE STATE OF TEXAS § AMENDMENT NO ONE TO AGREEMENT
BETWEEN THE CITY OF DENTON AND
COUNTY OF DENTON § COOPERS & LYBRAND, INC
WHEREAS, on the 18th day of July, 1989, the City of Denton,
Texas ("City") and Coopers & Lybrand, Inc ("Consultant"), a
professional corporation, executed an Agreement ("Agreement") to
provide professional consulting services, and
WHEREAS, the parties wish to make certain amendments to said
Agreement to provide for additional services, NOW THEREFORE, the
City and Consultant agree as follows
I
That Section I Services to be Performed, is hereby amended to
read as follows
1 Implementation Assistance
A Review final status of employees before Sanus/New York
Life effective contract date for consideration of the
following
1 COBRA employees as covered participants,
2 Retirees as covered participants, and
3 Inclusion of employees and dependents of employees
not actively at work on date of contract initiation
B Develop projected run-out of paid claims and assess
adequacy of reserves to cover paid claims and on-going
administrative expenses
C Review employee communication material developed by
Sanus/New York Life and the City of Denton
D Assist city management in assessing and projecting
on-going paid claims of individuals not immediately
covered under the Sanus contract
E Assist City management in the developing additional
prescription drug benefit proposal, projecting costs,
needed revenues and plan participants, and reviewing
contracts of potential providers
2 Plan Renewal Analysis
Perform a preliminary plan renewal analysis based upon data
supplied by Sanus/New York Life This task would be in response
to Sanus, proposed rate increase for the December 1, 1990 plan
renewal year This task does not include the cost of obtaining and
PAGE 1
processing a medical claim history tape for analysis and responding
to proposed Sanus rates
II
That Section II Ter of Agreement, is hereby amended to read
as follows
consultant shall commence rendering services immediately upon
receiving notification of contract approval Consultant agrees to
adhere to the following project schedule
A implementation Assistance
1 Develop projected run-out of paid claims - Not later
than 3 days from receipt of monthly final paid claims
2 Review Employee Communication material - Not later than
3 days from receipt of final material
3 Develop projected paid claims for individuals not
actively at work - Not later than 3 days from receipt
of data from City and Claims Administrator
4 Project costs, revenues, and participant levels for
additional prescription drug benefit, review contracts
- Not later than 3 days from receipt of information
B Plan Renewal Analysis
1 Perform preliminary plan renewal analysis - Not later
than 5 days from receipt of data from Sanus/New York
Life
III
That Section III Compensation to be Paid Contractor, is hereby
amended to read as follows
A Amount of Payment for Services
Estimated Professional
Hours Fees
Implementation Assistance 78 5 $ 7,850
Plan Renewal Analysis 48 5 4,850
Estimated Expenses 300
Total Fees and Expenses $13,000
Consultant will charge the City based on actual professional
time spent and expenses incurred In no event will the total
project cost exceed $13,000 for Consultant's fees and expenses
unless Consultant is requested by City to perform tasks outside the
PAGE 2
scope presented in the proposal If additional assistance is
requested from Consultant, estimates of professional fees will
be provided and presented to City management for approval before
proceeding with any additional tasks
IV
In all other respects, the terms and conditions of the
Agreement shall remain controlling
EXECUTED this day of November, 1989
ATTEST
JENNIFER WALTERS, CITY SECRETARY
BY W
APPROVED AS TO LEGAL FORM
DEBRA A DRAYOVITCH, CITY ATTORNEY
BY A6W
CITY OF DENTON, TEXAS
RAY ST H ENS MAYOR
COOPERS & LYBRAND
BY
TITLE
DATE
PAGE 3