HomeMy WebLinkAbout106536 MILLIMAN USA - CONTRACT - RFP - P748 ACTUARIAL PENSION CONSULTING SERVICESPROFESSIONAL SERVICES AGREEMENT
WORK ORDER TYPE
ACTUARIAL & PENSION CONSULTANTS
THIS AGREEMENT made and entered into the day and year set forth below by and between THE
CITY OF FORT COLLINS, COLORADO, a Municipal Corporation, hereinafter referred to as the
"City" and MILLIMAN & ROBERTSON, Inc., hereinafter referred to as "Professional".
WITNESSETH:
In consideration of the mutual covenants and obligations herein expressed, it is agreed by and
between the parties hereto as follows:
1. Scope of Services
The Professional agrees to provide services in accordance with this Agreement and any project
Work Orders for Actuarial Consulting , issued by the City. A blank sample of a work order is
attached hereto as Exhibit "A", consisting of one (1) page and is incorporated herein by this
reference. No Work Order shall exceed $30,000. The City reserves the right to independently bid
any project rather than issuing a Work Order to the Professional for the same pursuant to this
Agreement.
2. The Work Schedule
The services to be performed pursuant to this Agreement shall be performed in accordance with
the Work Schedule stated on each Work Order.
3. Time of Commencement and Completion of Services
The services to be performed pursuant to this Agreement shall be initiated as specified on each
Work Order. Time is of the essence. Any extensions of any time limit must be agreed upon in
writing by the parties hereto.
4. Contract Period
This Agreement shall commence July 1, 2000 and shall continue in full force and effect until June
30, 2001, unless sooner terminated as herein provided. In addition, at the option of the City, the
Agreement may be extended for additional one year periods not to exceed four (4) additional one
year periods. Pricing changes shall be negotiated by and agreed to by both parties and may not
exceed the Denver - Boulder CPI-U as published by the Colorado State Planning and Budget Office.
Written notice of renewal will be provided to the Professional and mailed no later than sixty (60)
days prior to contract end.
5. Early Termination by City/Notice
Notwithstanding the time periods contained herein, the City may terminate this Agreement at any
time without cause by providing written notice of termination to the Professional. Such notice shall
be delivered at least fifteen (15) days prior to the termination date contained in said notice unless
otherwise agreed in writing by the parties. All notices provided under this agreement shall be
effective when mailed, postage prepaid and sent to the following address:
WOPSA 10/97
: '
rAK § •CEA�IRCATE NVMSEA Rx:'i'
.. F I w. € .:•"' H' .. ...
+^dk.; ...:£v..# ♦ei.+. LS:r,. J'1 ff. S
: ;fi _. z u. A OD06002-00234 .
14 ` e: '3•
PRODUCER
THIS CERTIFICATE 18 ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS
Marsh USA Inc.
NO RIQHTB UPON THE CERTff1CATE HOLDER OTHER^THAN THOSE PROVIDED IN
The Financial Center
THE POLICY. THIS cwmFiCAIB DOES NOT AME t, EXTEMP OR ALTER 1HE
1215 4th Avenue. Suite P300
COVERAGE AFPOrOW BY THE POLICIES DESCRIBED NEREII, '
Seattle, WA 96161
COMPANIES AFFORDING C VERAGE
COMPANY ,
duo Carpenter
A AMERICAN & FoREIGN INS a1
INSUAED
COMPANY
MTTTiman & Robertson, Inc-
B
Mr. John C1eaTman, CFO
1301 5th Avenue, Suite 3600
COMPANY
Seattle. AW 98101
COMPANY ,
D�!
THIS 18 TO CERTIFY THAT POLICIES OF INSURANCE DESCRIBED HEREIN HAVE BEEN ISSUED TO THE INSURED NAMED HEREIN FOR TH6POLICY PERIOD INOICATED-
NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESrECT TO WHICH;THE CERTIFICATE MAY
BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCAMED HEREIN 15 SUBJECT TO ALL THE TERMS, CONDITIONS AND EXCLUSIONS
OF SUCH POLICIES, LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS,
CO
LTR
TYPE OF INSVIMCE
pOUCY NUMBER
PPLICYvrEDTrvE
PATE (MM(DD(M
POUGYPJG'BIATION
DATE(MMfDO/YYi
OMITS
A
QENERAL
UABIVTY
ASVO35990
6130199
8114100
.ENERALAGOREGAIt
S 2,000,000
COMMERCIAL GENERALUABILTTY
PRODUCTS- COMP(OP AOG
a 2, 000, 000
CLAIMS MADE 1 X IOCCVR
'> •�
f ER90NAL A ADV INJURY
S 1, 000, 000
OWNER'$ t, CONTRACT, OR'S FPOT
EACH OCCURRENCE
L 1,000,000
•
'MRE DAMAGE (Any. om Oral
+ 500,000
MILD EXP (Any oni pe nl
= 30,000
AVTOMORILE
UAIWTY
ANY AUTO
cOMOMCD SINGLE LIMIT
A
ALL OWNED AUTOS
SCHEDULED AVYOS
BODILY INJUFK
Rer paponl '
_
HIRED AUTOS
NOWOWNED AUTOS
BODILY YOU
k"t)
S
PROPERTY DAMAGE
a
GARAGE
UAEIUTY
AUTO ONLY - IA ACCIDENT
!
ANY AUTO
i OTHER THAN AUTO ONLY:
E•
p
I� EACH ACCIDENT
AGORSOATE f
!
MOM UAEIUTY
EACH OCCURRENCE
!
UMBRELLA FORM
AGGREGATE
!
OTHER THAN UMBRELLA FORM
!
WOMIER'S COMPENSATION ANP
T CC ALL E H-
EMPLOY111V UABIUTY
EL EACH ACCIDENT ,
a
-
THE FROPRIITOR( INCL
PARTNERSAIICECUTNE
EL DIGEASE • POLICY LIMTT
!
ELDIEEASE-EAEMPLOYEE is
OFFICERS ARE; E)(CL
OTHER
DEDCAIPTOM OF OPERATIONS / LOCATIDNB / YBHICLES / SPECIAL ITEMS
EVIDENCE OF INSURANCE
SHOULD ANY Of THE POLICIES DESCRIBED HEREIN 68 CANCELLED BEFORE THE
CITY OF FORT COLLINS
EXPIRATION DATE THEREOF, THE INSURER AFFORDING COVERAQE WILL ENDEAVOR
ATTN: JIM MANE
TO MAIL 45 DAYS WRITTEN NOTICII TO TWITCERTLFICATE HOLDER NAMED
HERFJN, BUT FAILURE TO MAIL SUCFI NOTICE SHALL; IMPOSE NO OBLIGATION OR
LIABILITY OP ANY IOND UPON THE INSURER AFFORD,INQ COVERAGE, ITS AGENTS
OR REPRESENTATIVES,
Main USA Ina.
BY:
(* 10 DAYS FOR AW-PAYMENT) BROKER COPY
CERTIFICATION OF CORPORATE SECRETARY
State of Washington)
*l
County of King )
OF
MILLIAlAN & ROBERTSON, INC.
Brian S. Pollack, being first duly sworn upon oath, deposes and says:
I am the duly qualified and acting Corporate Secretary of Milliman & Robertson, Inc.
2. The following resolution was duly adopted by the Board of Directors of the corpora-
tion on July 7, 1997.
BE IT HEREBY RESOLVED, that each Principal of the corporation is hereby
granted the authority to individually negotiate and enter into any and all proposals, engagement
letters, contracts, letters of intent, and other documents on behalf of the corporation for the
purpose of providing consulting, actuarial, and other professional services.
3. Nancy R. Wagner is as of the date of this Certificate a duly elected
and acting Principal of the corporation.
DATED this 21 st of June , 2000.
GBrian S. ack
Corporate Secretary
SUBSCRIBED AND SWORN to before me this 21 stday of June , 2000.
NOTARYi LAW
STATE OF W&%INGTON
CARMY #G. CROSSEN
My Appointment E*= FEB 9. 20M
Not4Pu4in�an�for the State of
Washington residing at Shoreline, WA.
My commission expires 2/09/2003.
MILLIMAN & ROBERTSON, INC.
Professional:
Milliman & Robertson, Inc.
Suite 3100, 1099 18" Street
Denver, CO 80202-2431
City:
City of Fort Collins Purchasing
PO Box 580
Fort Collins, CO 80521-0580
With copy to:
City of Fort Collins G. E. R. C.
PO Box 580
Fort Collins, CO 80521-0580
In the event of any such early termination by the City, the Professional shall be paid for services
rendered prior to the date of termination subject only to the satisfactory performance of the
Professional's obligations under this Agreement. Such payment shall be the Professional's sole right
and remedy for such termination.
6. Design, Project Insurance and Insurance Responsibility
The Professional shall be responsible for the professional quality, technical accuracy, timely
completion and the coordination of all services rendered by the Professional, including but not
limited to reports and specifications and shall, without additional compensation, promptly remedy
and correct any errors, omissions, or other deficiencies. The Professional shall indemnify, save and
hold harmless the City its officers and employees, in accordance with Colorado law, from all
damages whatsoever claimed by third parties against the City and for the City's costs and
reasonable attorneys fees arising directly or indirectly out of the Professional's performance of any
of the services furnished under this Agreement. The Professional shall maintain commercial
general liability insurance in the amount of $500,000 combined single limits.
7. Compensation
In consideration of services to be performed pursuant to this Agreement, the City agrees to pay
Professional on a time and reimbursable direct cost basis designated in Exhibit "B", consisting of
one (1) page, attached hereto and incorporated herein by this reference. At the election of the City,
each Work Order may contain a maximum fee, which shall be negotiated by the parties hereto for
each such Work Order. Monthly partial payments based upon the Professional's billings and
itemized statements are permissible. The amounts of all such partial payments shall be based upon
the Professional's City -verified progress in completing the services to be performed pursuant to this
Agreement or Work Order and upon approval of the Professional's direct reimbursable expenses.
Final payment for services provided under a Work Order shall be made following acceptance of the
work by the City. Upon final payment, all reports, specifications, and other services rendered by
the Professional shall become the sole property of the City.
8. City Representative
The City will designate, prior to commencement of work, its project representative who shall make,
within the scope of his or her authority, all necessary and proper decisions with reference to the
project. All requests for contract interpretations, change orders, and other clarification or instruction
shall be directed to the City Representative.
9. Independent Contractor
The services to be performed by Professional are those of an independent contractor and not of an
employee of the City of Fort Collins. The City shall not be responsible for withholding any portion
WOPSA 10/97 2
of Professional's compensation hereunder for the payment of FICA, Workers' Compensation, other
taxes or benefits or for any other purpose.
10. Personal Services
It is understood that the City enters into this Agreement based on the special abilities of the
Professional and that this Agreement shall be considered as an agreement for personal services.
Accordingly, the Professional shall neither assign any responsibilities nor delegate any duties
arising under this Agreement without the prior written consent of the City.
11. Acceptance Not Waiver
The City's approval of specifications, reports, and incidental work furnished hereunder shall not in
any way relieve the Professional of responsibility for the quality or technical accuracy of the work.
The City's approval or acceptance of, or payment for, any of the services shall not be construed
to operate as a waiver of any rights or benefits provided to the City under this Agreement.
12. Default
Each and every term and condition hereof shall be deemed to be a material element of this
Agreement. In the event either party should fail or refuse to perform according to the terms of this
agreement, such party may be declared in default .
13. Remedies
In the event a party has been declared in default, such defaulting party shall be allowed a period
often (10) days within which to cure said default. In the event the default remains uncorrected, the
party declaring default may elect to (a) terminate the Agreement and seek damages; (b) treat the
Agreement as continuing and require specific performance; or (c) avail himself of any other remedy
at law or equity. If the non -defaulting party commences legal or equitable actions against the
defaulting party, the defaulting party shall be liable to the nondefaulting party for the non -defaulting
parry's reasonable attorney fees and costs incurred because of the default.
14. Binding Effect
This writing, together with the exhibits hereto, constitutes the entire agreement between the parties
and shall be binding upon said parties, their officers, employees, agents and assigns and shall inure
to the benefit of the respective survivors, heirs, personal representatives, successors and assigns
of said parties.
15. Law/Severability
The laws of the State of Colorado shall govern the construction, interpretation, execution and
enforcement of this Agreement. In the event any provision of this Agreement shall be held invalid
or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render
unenforceable any other provision of this Agreement.
WOPSA 10/97 3
THE CITY OF FORT COLLINS, COLORADO
B'�e u�
Jam . O'Neill II, CPPO
Direc of Purchasing & Risk Management
Date: Zz 00
MILLIMAN & ROBERTSON, Inc.
Nancy R. Wagner
Principal
Date: 30z000
WOPSA 10/97 4
EXHIBIT "A"
WORK ORDER FORM
PURSUANT TO AN AGREEMENT BETWEEN
THE CITY OF FORT COLLINS
AND
MILLIMAN & ROBERTSON, Inc.
DATE:
Work Order Number: P748 -
Purchase Order Number:
Project Title:
Commencement Date:
(enter last four digits of purchase order number)
Maximum Fee: (time and reimbursable direct costs)
Project
Completion Date:
Work Order Scope of Services: (attach additional forms, if necessary)
Acceptance
Description:
(Signature of COMMITTEE Chair or Finance Director)
Professional agrees to perform the services identified above and on the attached forms in
accordance with the terms and conditions contained herein and in the Professional Services
Agreement between the parties. In the event of a conflict between or ambiguity in the terms of the
Professional Services Agreement and this work order (including the attached forms) the
Professional Services Agreement shall control.
Milliman & Robertson, Inc.
Date:
The attached forms consisting of _ U pages are hereby accepted and incorporated herein, by
this reference, and Notice to Proceed is hereby given.
City of Fort Collins
By: Date:
Director of Purchasing and Risk Management
WOPSA 10/97 1
Exhibit "B"
Compensation
The schedule below lists the annual total fees for the basic services under the Agreement. If the
work effort required to complete such service results in a lower fee based on the hourly rates, as
set forth below, the Professional shall bill the lower amount. Increases to total annual fees may be
approved by the City Representative in the form of a written Change Order. The Director of
Purchasing and Risk Management may also increase the fees by letter renewing the Agreement
for additional terms.
First Year of the Agreement
Annual Valuation Report $9,000
Preparation of Personal Retirement Planning Statements 5,000
Review and Maintenance of Benefit Software 1,000
Attendance at Monthly General Employee Retirement Committee Meetings
(12 meetings x $600 per meeting, up to 3 hours per meeting, no charge for
travel time or other expenses) 9,600
Total, First Year $24,600
Subsequent Years
Annual Valuation Report $7,500
Preparation of Personal Retirement Planning Statements 2,500
Review and Maintenance of Benefit Software 500
Attendance at Monthly General Employee Retirement Committee Meetings
(12 meetings x $600 per meeting, up to 3 hours per meeting, no charge for
travel time or other expenses) 9,600
Total, Subsequent Years $20,100
Benefit Calculation Charges
Benefit calculations performed by Professional,
not more than one (1) hour required: $150
Benefit calculations performed by City,
verified by Professional, 1/2 hour or less required: $ 75
Domestic Relations Order review and verification of benefit calculations,
on Committee -approved forms: $150
WOPSA 10/97 2
Hourly Billing Rates for Work Orders and Special Projects
Consulting Actuaries $150 — 300 per hour
Associate Actuaries 95 —140 per hour
Actuarial Staff and Analysts 50 — 90 per hour
Support Staff 30 — 60 per hour
If the completion of any calculation, verification, or review generates a lower fee based on the hourly
rates as set forth above, the Professional shall bill the lower amount. For calculations, verifications,
and reviews requiring more than the specified time shall be billed at the appropriate hourly rates as
set forth above. These additional costs shall be coordinated with and approved by the City staff
person normally responsible for initiating such requests for calculation, verification, and review.
Before commencing work on any project, the Professional shall provide to the City Representative
an estimate of likely fees to complete such work, sign the Work Order generated to cover the
project. The Professional shall not proceed with the work until the City Representative delivers a
properly executed Work Order covering such project. The Professional shall not exceed the cost
estimate without authorization from the City Representative. If the work effort required to complete
the project generates a lower fee based on the hourly rates, as listed above, the Professional shall
bill the lower amount.
Telephone Consultations
The Professional shall not charge extra for routine phone calls or for telephone consultations
throughout the term of this Agreement, providing such calls and consultations do not exceed one
hour per month.
WOPSA 10/97 3
Exhibit "C"
Scope of Services
The Professional shall perform an annual actuarial valuation of its General Employees Retirement
Plan (Plan); and perform on -going pension consulting services for the General Employees
Retirement Committee ("Committee").
The Professional shall provide the following services:
Meet with the Committee prior to commencement of the annual actuarial valuation study to
discuss the process, report format, scope, and significant assumptions to be used during
the course of the engagement. Such assumptions should include, but are not limited to
(a) evaluation of the Plan's actuarial cost method;
(b) valuation procedures;
(c) economic assumptions;
(d) demographic assumptions; and
(e) actuarial value of assets.
2. Prepare a report of the valuation which shall include a summary of valuation results,
significant data used in the valuation, and information about all significant assumptions and
findings noted. Professional shall present a draft of the valuation report by March 31" and
a final valuation report by May 15t' of each year.
3. On an annual basis, provide all information needed by the Committee and the City to meet
the financial reporting guidelines of Governmental Accounting Standards Board (GASB).
Provide assistance needed in the drafting of GASB financial statements, notes, and
disclosures.
4. On an annual basis, provide Personal Retirement Planning Statements to members of the
Plan by March 31 of each year.
5. Attend monthly meetings of the Committee and provide on -going advice to the Committee
to assist in its administration of the Plan. The City Council created the Plan and the
Committee. The committee may require the Professional to attend Council meetings to
discuss significant issues concerning the Plan.
6. Become and remain completely familiar with the Plan documents. If needed, the actuary
will assist the Committee in drafting changes to the Plan documents.
7. During normal business hours, return calls from Committee members and support staff
within two working hours. Answer questions in the time frame agreed to by the Professional
and the City Representative.
8. Review Domestic Relations Orders ("DRO") that Plan members have presented to the
Committee. For a DRO presented on the form approved by the Committee, Professional
shall verify the accuracy of benefit calculations. Aid the Committee in updating the DRO
procedures and format.
WOPSA 10/97 4
9. Provide technical assistance in a re -statement of the Plan, including suggestions for revised
language and changes needed to make the Plan comply with applicable laws. Assist the
Committee in obtaining legal counsel qualified to assist in the re -statement process.
10. Advise the Committee on existing and proposed Federal legislation.
11. Expert testimony, when requested, concerning the Plan generally, and, in particular,
regarding proposed benefit modifications.
12. Actuarial analysis and technical evaluation of proposed ordinance changes affecting the
Plan.
From time -to -time, the Committee may request special reports, research, and analysis of topics that
the Professional will prepare and discuss at one of the regular monthly meetings. If requested, the
Professional shall discuss such reports with appropriate City staff before such meeting and make
revisions, if appropriate, prior to the meeting.
WOPSA 10/97 5