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RESOLUTION NO.~~-t/
A RESOLUTION of the City of Port Angeles
authorizing the Mayor and City Clerk to
execute an agreement between the City of
Port Angeles and Scott Wetzel Services
of Bremerton, Washington for administration
of the City's self-insurance plan.
WHEREAS, the City of Port Angeles City Council voted to
self-insure the City's automobile, general, and public official's
liability exposures; and
WHEREAS, it is necessary and desirable for the City to
etain professional administrators for the purposes of claims
dministration and providing adjusting services; and
WHEREAS, the firm of Scott Wetzel Services Inc. is pres-
ntly the professional administrator for the City's workmen's com-
ensation liabilities and is capable of assuming administrative
unctions for the City's automobile, general,. and public official's
iability exposures; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT
NGELES, as follows:
Section 1. The Mayor and City Clerk are hereby authorized and
irected to, execute a properly completed and acceptable as to form
greement between the City of Port Angeles and Scott Wetzel Service
nc. for the administration of the City's self-insurance program.
DATED this /4+ day of September, 1981.
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arlan~~. Parrish; City Clerk
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PPROVED AS TO FOro~:
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Attorney
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TO:
August 28, 1981
Dave l'lodstrom, Mayor Hague\;ood and COlmCf1Iem,).rs
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Robert E. Orton r ])l.rector of F J..nance and [I'd nmnstra"tl vc Serv:i.'.~es.
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FROr,j:
BE: Self-Insurance Administration Contract
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As the Council knows, we became self-insured for our automobile and
gl2neral liability risks earlier this month.
Part of the self-insurnncc proposal was to hire a professional claims
administrator to assist us in making determinations of liability, and
assuming responsibility for any adjustment work needed to be done on
city claims.
The firm of Scott Wetzel Services, Inc. l5 a self-insurance administrator
for our workmen's compensation plan but is in fact, better known for
its professional administration of auto and general liabilities.
I have been very satisfied with the assistance and administration of
the workmen's compensation program provided by Scott Wetzel.
The attached resolution authorizes the Mayor and Clerk to execute
an agreement between the City and Scott Wetzel for administrution of
the auto and general liability portion of our self-insurance plan.
The annual fee for the service is $10,500. Originally, the firm
wanted $10,500 plus $200 for each claim over 40 in one year.
However, I was able to talk them out of this latter requirement.
'rl:e fee is some $3,000 higher than I ha(1 originally anticipated.
My initial quotations were based upon telephone conversations with
two separate administrative agencies and I used the more optimistic
estimate of the two. However, the one quotation was from a firm
who would not carry the contract unless we allowed them to underwrite a
surplus insurance policy. This is an alternative which we could not
accept because the overall cost of the plan would have been increased
by about $20,000.
Owing to the fact that we need to retain a professional administrator
as soon as possible and that Scott Wetzel has performed more than an
adequate job for us on "che \.;orkmcn I s compensation side I I )~ecommcnd
acceptance of Scott \-Jetzel's proposal 'and recommend that the City
Council act favorably on the attached resolution for the Mayor to
execute a one year agreement with the firm.
Thank you.
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