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HomeMy WebLinkAboutCORRESPONDENCE - RFP - P748 ACTUARIAL PENSION CONSULTING SERVICES (9)Adminisf-ative Services Purchasin6 Division City of Fort Collins July 6, 2000 Milliman & Robertson, Inc. Suite 3100, 1099 18"' St. Denver, CO 80202-2431 Re: Actuarial & Pension Consultants Professional Services Agreement Enclosed please find your copy of the signed contracts for the above -mentioned matter. Sincerely, c Jam B. O'Neill Il, CPPO Dire for of Purchasing and Risk Management enc JBO/jbe cc: Dept. File 256 W. Mountain Avenue • P.O. Box 580 • Fort Collins, CO 80522-0580 • (970) 221-6775 • FAX (970) 221-6707 F (o Fax >>> Memorandum <<< Fax Date: May 10, 2000 To: Nancy Wagner and Gary Heaston Milliman & Robertson, Inc. From: Jim Hume, Buyer Phone: 970-221-6776 Fax: 970-221-6707 Re: Questions for the interview of May 17, 2000 The City personnel who will be at the interview have submitted the following questions: 1. Occasionally, the GERC is presented with a Domestic Relations Order ("DRO"). Is your firm able to analyze the DRO with respect to federal and state law and the ti5o Plan provisions, and provide an opinion to the GERC as to whether or not the DRO should be honored by the GERC? If yes, will your opinion take into account applicable Colorado statutory law? What is your cost for providing this service? 2, Describe the staffing resources that your firm has available to provide advice concerning compliance with Colorado and federal laws. Describe the fee ✓ ,� structure for such advice. �•+' 3. The GERC has identified a need to re -state the Plan (consolidate the several amendments to the Plan that have occurred over the past few years) and to incorporate changes required by federal law prior to the end of 2000. Is your firm 'L© able to draft a re -stated Plan that incorporates federal requirements before the end of 2000? If yes, what is your cost for providing this service? 4. The GERC is considering recommending a Plan amendment that would change the benefits accrued by employees moving from part-time to full-time and vice versa. Assuming that you understand the concept of the proposed amendment, is your firm able to recommend the actual language for the Plan amendment that would accomplish the GERC's intent? If yes, what is your cost for providing this service? City of FortCollins, Purchasing one:970-221-6775 PO Box 580, Fort Collins, CO 80522 Fax: 970-221-6707 5. What are the specific fees for questions that arise regarding the Plan? Can you give us an idea of the timeframe you will need to answer those questions, It,o identifying what types of questions/subject matter will take longer to research, `n, hich ones you can pull from records, and the fees for each. 6. ✓/ Do you have a lawyer on the payroll who is familiar with Colorado law? If not, how do you propose to advise us on such issues? 7. What are your requirements for an employee salary database, and what format/medium will be compatible with your system? 8� Does M&R calculate retirement benefits, or do you provide us with software to do y; a the calculations ourselves? 9. i What would be the cost for you to do benefit calculations, and what would be the cost for us to do the calculations with an M&R review? 10. Please provide a sample benefit calculation. 11. ,., Do you publish a newsletter with updates on regulatory and legislative trends? If so, may we see a sample? These questions came from different people, so some may be redundant, in part. I've not changed any of them except for very minor editing, as I don't want to inadvertently leave anything out. I need to let you know that your firm was the top scoring one of the four proposals received and evaluated. If the interview group can be assured that M&R understands the needs of the City and we can come to basic agreement on a Scope of Work for any contract, we will be awarding the contract to your firm with no further interviews. The Scope of Work will use the one in the RFP as a basis and some of the information obtained in the interview will be incorporated in it, as appropriate. Please contact me with any questions. Thanks. This fax consists of 2 pages, including this cover page. City of FortCollins, Purchasing one: 970-221-6775 PO Box 580, Fort Collins, CO 80522 Fax: 970-221-6707 MILLIMAN & ROBERTSON, INC. Actuaries & Consultants Internationally WOODROW MILLMAN Suite 3100, 1099 Eighteenth Street, Denver, Colorado 80202-2431 Telephone: 303/299-9400 Fax:303/299-9018 June 30, 2000 Mr. Jim Hume, CPPB Buyer P.O. Box 580 Fort Collins, CO 80522-0580 RE: Actuarial Consulting Agreement Dear Jim: Enclosed are the signed copies of the actuarial consulting agreement you sent to me along with a copy of the certification of our corporate secretary indicating that I am authorized to sign contracts on behalf of M&R. I have requested that a copy of our general liability insurance be faxed to your attention directly from our broker. If this is not forthcoming, please let me know and I will pursue the issue with them to ensure that you receive a copy. Best personal regards. Sincerely, )," R . Nancy R. Wagnei''F S.A. Consulting Actuary NRW:wp Albany, Atlanta, Boston, Chicago, Dallas, Denver, Hartford, Houston, Indianapolis, Irvine, Los Angeles, Milwaukee, Minneapolis, New York, Omaha, Philadelphia, Phoenix, Portland, ME, Portland, OR, St. Louis, Salt Lake City, San Diego, San Francisco, Seattle, Tampa, Washington, D.C., Bermuda, Tokyo j:docs:cfc:000101 WOODROW MILLIMAN Member Firms in Principal Cities Worldwide im um e - e: Contract` age From: <nancy.wagner@milliman.com> To: FC1.PURCHASING(JHUME),FC1.GWIA("gary.heaston@milli. Date: Mon, Jun 19, 2000 10:51 AM Subject: Re: Contract We have reviewed the latest draft of the Professional Services Agreement you faxed over to us this morning (and the additional modification you suggested for item 7, Exhibit C), and only found one additional item that you will probably want to fix: Item 2 of Exhibit C: "my March 31st" should be "by March 31st". Otherwise, it looks fine and we are comfortable with your interpretation on the ownership of deliverables. I will be signing the agreement here and I do not have access to the corporate seal (it's in Seattle, presumably). My title for this purpose would be "Principal". Nancy MIME:JHUME@CI.FORT-COLLINS.CO.US on 06/19/2000 10:26:19 AM To: Gary Heaston@MRUS, Nancy R Wagner@MRUS cc: Subject: Re: Contract Nancy and Gary, I just faxed a revised copy of the Agreement. Added text in the Scope, clarifying who is responsible for coordinating those extra charges for calculations, reivews, and verifications which require more time than specified. Also added the due dates for the valuation report. I discussed the property sentence in the Agreement with Jim O'Neill. No one has ever raised the issue of ownership for internal company material relating to an agreement before. Our interpretation is as I wrote the other day. The sentence refers to deliverables. Let me know if the changes I've made and the explanation on the ownership issue is satisfactory. If so, I'll send down copies of the Agreement for signature. One thing you might tell me is the name and title of the person who will be signing the agreement. Also note that the agreement has a place on the signature page for the corporate seal. If that's a problem, let me know. We have an alternate procedure. Jim Hume, Buyer This communication is intended solely for the addressee and is confidential. If you are not the intended recipient, any disclosure, copying, distribution or any action taken or omitted to be taken in reliance on it, is prohibited and may be unlawful. 1'irri Hume. , e: 6 --tract ° . 1 a u age 1 From: <nancy.wagner@milliman.com> To: FC1.PURCHASING(JHUME),FC1.GWIA("gary.heaston@milli... Date: Fri, Jun 16, 2000 2:03 PM Subject: Re: Contract Jim: Don't feel obligated to include the timing of the report - we just thought it was odd that it wasn't in there. I heard back from our corporate people who had some minor suggestions on the wording, as follows: Item 7: Compensation The last sentence of this section says: "Upon final payment, all reports, specifications, and other services rendered by the Professional shall become the sole property of the City" There is a concern that this could somehow be construed as prohibiting us from keeping copies of our work. Could we change the sentence to read: "Upon final payment, all reports, specifications, and other services rendered by the Professional shall become the sole property of the City, which shall not deprive the Professional of retaining copies of such reports, specifications and other services for documentation purposes." I'm not wed to that language if you want to modify it. Appendix C, Item 7: We should probably modify the first sentence to clarify that calls are expected to be returned within the two hour timeframe during regular business hours. (I wouldn't want to have to monitor my voice mail 24-hours a day to make sure that calls are returned when they come in after hours, although I can't imagine this would ever happen.) That's it on our comments on the agreement Nancy MIME:JHUM E@CI.FORT-COLLINS.CO.US on 06/16/2000 10:18:17 AM To: Nancy R Wagner@MRUS cc: Subject: Re: Contract Nancy, I think the issue of fees for complex calculations will be handled by the HR representative. When something other than a routine calculation is requested, that person will authorize additional billing for the extra time, without needing to get approval from the City representative. I think that's clear, but if it isn't we can look at the language. I'll take a look at it. The timing of the report can be included. It was probably just dropped somewhere. Jim This communication is intended solely for the addressee and is confidential. If you are not the intended recipient, any disclosure, copying, distribution or any action taken or omitted to be taken in reliance on it, is prohibited and may be unlawful. aim Hume -Re: oritract ' � � � � age�1 ? From: <nancy.wagner@milliman.com> To: FC1.PURCHASING(JHUME),FC1.GWIA("gary.heaston@milli... Date: Fri, Jun 16, 2000 10:09 AM Subject: Re: Contract I wanted our corporate office to look through the agreement to make sure that they didn't have any problems, so I've faxed it to them to look at and haven't gotten their response back yet. We have looked at the agreement here and our only comments involve Exhibit B and the fees listed for benefit calculations. Although I think the fees outlined there will work if everything is straightforward, I am worried that there will be some calculations involving complicated breaks in service or other strange situations for which $150/$75 will be too low. I see that on page 2 of exhibit B you've specified that calculations, verifications and reviews requiring more than the specified time shall be billed at the appropriate hourly rates, but I'm not sure I understand exactly how you envision this process working. One other item we noted that was mentioned specifically in the proposal but isn't in the agreement in Exhibit C is the timing for the actuarial report (which presumably would be found in item 2). I will bug our corporate guys today about this and get back to you so we can get this finished up quickly. Nancy MIME:JHUME@CI.FORT-COLLINS.CO.US on 06/16/2000 09:29:52 AM To: Gary Heaston@MRUS, Nancy R Wagner@MRUS cc: Subject: Contract How are things going on your end? I thought I might hear from you by now on the review of the draft agreement, since it was primarily our standard agreement with the Scope mostly from the RFP. Do we need to talk about anything? I'd like to have your company under contract in time for the next meeting. Thanks, Jim Hume, Buyer This communication is intended solely for the addressee and is confidential. If you are not the intended recipient, any disclosure, copying, distribution or any action taken or omitted to be taken in reliance on it, is prohibited and may be unlawful. No Text Fax >>> Memorandum <<< Fax Date: May 10, 2000 To: Nancy Wagner and Gary Heaston Milliman & Robertson, Inc. From: Jim Hume, Buyer Phone: 970-221-6776 Fax: 970-221-6707 Re: Questions for the interview of May 17, 2000 The City personnel who will be at the interview have submitted the following questions: Occasionally, the GERC is presented with a Domestic Relations Order ("DRO"). Is your firm able to analyze the DRO with respect to federal and state law and the Plan provisions, and provide an opinion to the GERC as to whether or not the DRO should be honored by the GERC? If yes, will your opinion take into account applicable Colorado statutory law? What is your cost for providing this service? 2. Describe the staffing resources that your firm has available to provide advice concerning compliance with Colorado and federal laws. Describe the fee structure for such advice. 3. The GERC has identified a need to re -state the Plan (consolidate the several amendments to the Plan that have occurred over the past few years) and to incorporate changes required by federal law prior to the end of 2000. Is your firm able to draft a re -stated Plan that incorporates federal requirements before the end of 2000? If yes, what is your cost for providing this service? 4. The GERC is considering recommending a Plan amendment that would change the benefits accrued by employees moving from part-time to full-time and vice versa. Assuming that you understand the concept of the proposed amendment, is your firm able to recommend the actual language for the Plan amendment that would accomplish the GERC's intent? If yes, what is your cost for providing this service? City of FortCollins, Purchasing one:970-221-6775 PO Box 580, Fort Collins, CO 80622 Fax: 970-221-6707 5. What are the specific fees for questions that arise regarding the Plan? Can you give us an idea of the timeframe you will need to answer those questions, identifying what types of questions/subject matter will take longer to research, which ones you can pull from records, and the fees for each. 6. Do you have a lawyer on the payroll who is familiar with Colorado law? If not, how do you propose to advise us on such issues? 7. What are your requirements for an employee salary database, and what format/medium will be compatible with your system? 8. Does M&R calculate retirement benefits, or do you provide us with software to do the calculations ourselves? 9. What would be the cost for you to do benefit calculations, and what would be the cost for us to do the calculations with an M&R review? 10. Please provide a sample benefit calculation. 11. Do you publish a newsletter with updates on regulatory and legislative trends? If so, may we see a sample? These questions came from different people, so some may be redundant, in part. I've not changed any of them except for very minor editing, as I don't want to inadvertently leave anything out. I need to let you know that your firm was the top scoring one of the four proposals received and evaluated. If the interview group can be assured that M&R understands the needs of the City and we can come to basic agreement on a Scope of Work for any contract, we will be awarding the contract to your firm with no further interviews. The Scope of Work will use the one in the RFP as a basis and some of the information obtained in the interview will be incorporated in it, as appropriate. Please contact me with any questions. Thanks. This fax consists of 2 pages, including this cover page City of FortCollins, Purchasing one: 970-221-6775 PO Box 580, Fort Collins, CO 80622 Fax: 970-221-6707 Administrative Services Purchasii.. Division City of Fort Collins June 28, 2000 Milliman & Robertson Suite 3100, 1099 18`h St. Denver, CO 80202-2431 Re: Actuarial & Pension Consultants I have enclosed 3 copies of documents regarding the above captioned matter. Please sign the three (3) copies, and return ill copies to me along with a current copy of your insurance. After the signatures have been obtained, a copy of the agreement will be sent to you. Please contact Jim Hume, CPPB, Buyer, 970-221-6776, if you have questions. Sincerely, /� �1M mes B. O'Neill II, CPPO Director of Purchasing and Risk Management enc JBO/jbe 256 W. Mountain Avenue • P.O. Box 580 • Fort Collins, CO 80522-0580 • (970) 221-6775 • FAX (970) 221-6707