4.42.240 Self-insurance - third party administrator.
(1) The county may contract with a third party administrator, in accordance with the standards and procedures set forth in subsections (2) and (3) of this section, to handle the claims administration process as defined in WAC 200-110-120 and as the same may be hereafter amended.
(2) The director of finance shall select a third party administrator utilizing the following competitive selection process:
(a) In advance of any negotiation on any contract for third party administrator services, the finance department shall publish an announcement stating concisely the general scope and nature of the services which are required and the address of the finance department to which inquiries for further details can be directed.
(b) Prior to award of a contract with a third party administrator, the finance department shall solicit and evaluate statements of qualifications and performance data submitted by potential contractors regarding the proposed contract.
(c) The finance department and the human resource department shall select from the interested potential contractors, the potential contractor deemed most highly qualified to provide the services required for the proposed contract.
(d) The finance department shall then attempt to negotiate the terms of a contract with the most qualified potential contractor at a price which the finance department determines is fair and reasonable. In making its determination, the finance department shall take into account the estimated value of the services to be rendered as well as the scope, complexity, and professional nature thereof.
(e) If the finance department is unable to negotiate a satisfactory contract with a potential contractor selected at a price the finance department determines to be fair and reasonable, negotiations with that potential contractor shall be formally terminated and the finance department shall select other potential contractors in accordance with subsections (2)(b) and (c) of this section and continue in accordance with this subsection until an agreement is reached or the process is terminated.
(f) After negotiating the terms of a contract acceptable to the finance department with a potential contractor selected as provided above, the finance department shall refer the contract to the executive together with a record of the negotiations conducted with any other potential contractor. The executive may then approve or reject the contract or refer it back to the finance department for further negotiations or for any other reason. An approved contract shall be signed by the executive.
(3) Any contract with a third party administrator shall:
(a) Include, among other provisions, a written description of the services to be provided, the remuneration levels to be paid the administrator and the contract period;
(b) Provide for the confidentiality and ownership of the information, data and other intellectual property developed or shared during the course of the contract;
(c) Provide for the express authorization of the county to enter the third party administrator’s premises to inspect and audit the records and performance of the third party administrator which pertains to the self-insurance program; and
(d) Require that the third party administrator comply with all applicable local, state and federal laws. (Added by Emerg. Ord. 01-025, Mar. 28, 2001, Eff date Mar. 28, 2001; Reenacted by Ord. 07-006, Feb. 14, 2007, Eff date Feb. 25, 2007; Amended by Ord. 13-115, Jan. 15, 2014, Eff date Jan. 27, 2014; Amended by Ord. 13-115, Jan. 15, 2014, Eff date Jan. 27, 2014).