HomeMy WebLinkAboutRFP - P748 ACTUARIAL PENSION CONSULTING SERVICESAdminis. ..live Services
Purchasing Division
City of Fort Collins REQUEST FOR PROPOSAL
CITY OF FORT COLLINS
GENERAL EMPLOYEE RETIREMENT PLAN (GERP or the "PLAN")
ACTUARIAL AND POLICY REVIEW
PROPOSAL NO. P- 748
The General Employees Retirement Committee ("GERC" or the "Committee") of the City of Fort
Collins is requesting proposals from qualified actuarial consultants to perform annual GERP
actuarial studies for a five-year period. The attached Scope of Work defines the background
and needs for the Committee.
A review board will rank interested firms based on their written proposals, using the ranking
system set forth in the City's procedure for acquisition of professional services. A copy of the
rating criteria is attached. The three highest ranked firms may receive an invitation to appear
before the review board for further assessment of qualifications. The successful firm may be
selected without an interview.
Firms seeking this service engagement are to submit written proposals ten (10) copies to the
City of Fort Collins' Purchasing Division, 256 West Mountain Avenue, Fort Collins, Colorado
80521. The Purchasing Division will receive proposal until 3:00 p.m. (our clock), April 10, 2000.
Proposal No. P-748.
A copy of the Request for Proposal may be obtained as follows:
1. Call the Purchasing Fax -line, 970-416-2033 and follow the verbal instruction to
request document #30748.
2. Download the Bid from the Purchasing Webpage, Current Bids page, at:
www.ci.fort-collins.co.us\CITY_HALL\PURCHASING\INDEX.htm then via the
Current Bids pushbutton.
3. In person, you may visit the Purchasing Division Office at 256 W. Mountain Ave.,
Fort Collins, and request a copy of the Request for Proposal.
The proposals submitted shall include:
Three references of work similar to this project, preferably municipalities or public
agencies within Colorado.
2. Resumes of key personnel involved. Include information about credentials held,
professional organization memberships, involvement with Employee Retirement
Plans. Indicate who would provide backup if the primary actuary could not
complete the study.
1
256 W. Mountain Avenue • P.O. Box 580 • Fort Collins, CO 80522-0580 • (970) 221-6775 • FAX (970) 221-6707
REVIEW AND ASSESSMENT
Professional firms will be evaluated on the following criteria. These criteria will be the basis for
review of the written proposals and interview session.
The rating scale shall be from 1 to 5, with 1 being a poor rating, 3 being an average rating, and 5
being an outstanding rating.
WEIGHTING
QUALIFICATION
STANDARD
FACTOR
2.0
Scope of Proposal
Does the proposal show an understanding of the
project objective, methodology to be used and results
that are desired from the project?
2.0
Assigned Personnel
Do the persons who will be working on the project
have the necessary skills? Are sufficient people of
the requisite skills assigned to the project?
1.0
Availability
Can the work be completed in the necessary time?
Can the target start and completion dates be met?
Are other qualified personnel available to assist in
meeting the project schedule if required? Is the
project team available to attend meetings as required
by the Scope of Work?
1.0
Motivation
Is the firm interested and are they capable of doing
the work in the required time frame? Does the firm
appear to be ready to provide timely response to
questions.
2.0
Cost and
Do the proposed cost and work hours compare
Work Hours
favorably with the project Manager's estimate? Are
the work hours presented reasonable for the effort
required in each project task or phase?
2.0
Firm Capability
Does the firm have the support capabilities the
assigned personnel require? Has the firm done
previous projects of this type and scope?
1
Reference evaluation (Top Ranked Firm)
The project Manager will check references using the following criteria. The evaluation rankings
will be labeled Satisfactory/Unsatisfactory.
QUALIFICATION
STANDARD
Overall Performance
Would you hire this Professional again? Did
they show the skills required by this project?
Timetable
Was the original Scope of Work completed
within the specified time? Were interim
deadlines met in a timely manner?
Completeness
Was the Professional responsive to client
needs; did the Professional anticipate
problems? Were problems solved quickly and
effectively?
Budget
Was the original Scope of Work completed
within the project budget?
Job Knowledge
a. If a study, did it meet the Scope of Work?
b. Is the firm knowledgeable about actuarial
and retirement matters.
PROFESSIONAL SERVICES AGREEMENT
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 , [insert either a corporation, a partnership or an individual, doing
business as 1, 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
the scope of services attached hereto as Exhibit "A", consisting of ( ) page[s], and
incorporated herein by this reference.
2. The Work Schedule. [Optional] The services to be performed pursuant to this
Agreement shall be performed in accordance with the Work Schedule attached hereto as Exhibit
"B", consisting of () page[s], and incorporated herein by this reference.
3. Time of Commencement and Completion of Services. The services to be performed
pursuant to this Agreement shall be initiated within () days following execution of this
Agreement. Services shall be completed no later than . Time is of the essence. Any
extensions of the time limit set forth above must be agreed upon in writing by the parties hereto.
4. Early Termination by City. 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 addresses:
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Professional: Copy: With Copy to:
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.
5. Project. Indemnity 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 plans and reports 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 $500,000
combined single limits, and errors and omissions insurance in the amount of
6. Compensation. [Use this paragraph or Option 1 below.] In consideration of the
services to be performed pursuant to this Agreement, the City agrees to pay Professional a fixed
fee in the amount of ($ ) plus reimbursable direct costs. All such fees and costs shall
not exceed ($ ). 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
hereto and upon the City's approval of the Professional's actual reimbursable expenses. Final
PSA 10/97
2
payment shall be made following acceptance of the work by the City. Upon final payment, all
designs, plans, reports, specifications, drawings, and other services rendered by the Professional
shall become the sole property of the City.
6. Compensation. [Option 1] In consideration of the services to be performed
pursuant to this Agreement, the City agrees to pay Professional on a time and reimbursable direct
cost basis according to the following schedule:
Hourly billing rates:
Reimbursable direct costs:
with maximum compensation (for both Professional's time and reimbursable direct costs) not to
exceed ($ ). Monthly partial payments based upon the Professional's billings and
itemized statements of reimbursable direct costs 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 hereto and upon the City's approval of the Professional's reimbursable
direct costs. Final payment shall be made following acceptance of the work by the City. Upon final
payment, all plans, reports, drawings and other services rendered by the Professional shall become
the sole property of the City.
7. 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.
8. Monthly Report. Commencing thirty (30) days after the date of execution of this
Agreement and every thirty (30) days thereafter, Professional is required to provide the City
Representative with a written report of the status of the work with respect to the Scope of Services,
Work Schedule, and other material information. Failure to provide any required monthly report
may, at the option of the City, suspend the processing of any partial payment request.
PSA 10/97
3
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 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 drawings, designs, plans,
specifications, reports, and incidental work or materials 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
non -defaulting party for the non -defaulting party's reasonable attorney fees and costs incurred
because of the default.
PSA 10/97
4
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.
16. Special Provisions. [Optional] Special provisions or conditions relating to the
services to be performed pursuant to this Agreement are set forth in Exhibit "C, consisting of
() page[s], attached hereto and incorporated herein by this reference.
PSA 10/97
5
THE CITY OF FORT COLLINS, COLORADO
M
John F. Fischbach
City Manager
By:
James B. O'Neill II, CPPO
Director of Purchasing & Risk Management
DATE:
ATTEST:
City Clerk
APPROVED AS TO FORM:
Assistant City Attorney
PROFESSIONAL
By:
Print Name
Title:
CORPORATE PRESIDENT OR VICE PRESIDENT
Date:
ATTEST:
Corporate Secretary
PSA 10/97
(Corporate Seal)
C
EXHIBIT C
YEAR 2000 COMPLIANCE CERTIFICATION AND INDEMNITY
Section 1. Contractor hereby certifies that all information resources or systems to be provided
or used in connection with the performance of this Agreement are "Year 2000 Compliant", except
as otherwise expressly described in Section 2, below. "Year 2000 Compliant" shall mean that
information resources meet the following criteria:
a. Data structures (e.g., databases, data files) provide 4-digit date century recognition.
For example, "1996" provides date century recognition; "96" does not.
b. Stored data contains date century recognition, including (but not limited to) data
stored in databases and hardware/device internal system dates.
C. Calculations and programs logic accommodate both same century and multi -century
formulas and date values. Calculations and logic include (but are not limited to) sort algorithms,
calendar generation, event recognition, and all processing actions that use or produce date values.
d. Interfaces (to and from other systems or organizations) prevent non -compliant dates
and data from entering any state system.
e. User interfaces (i.e., screens; reports; etc.) accurately show 4 digit years.
Year 2000 is correctly treated as a leap year within all calculation and calendar logic.
Section 2. Contractor agrees to notify the City immediately of any information resources or
systems that are not Year 2000 Compliant upon encountering the same in connection with the
performance of the Agreement, including without limitation any information resources or systems
in use by Contractor in the performance of the Agreement or information resources or systems of
the City regarding which Contractor obtains information in the course of its performance of the
Agreement.
Section 3. Contractor agrees to permit examination, by the City or agents thereof, of any and
all information resources and systems in use in connection with this Agreement, and related Year
2000 Compliance implementation plans, in order to evaluate Year 2000 Compliance and potential
implications of the same for the City and for performance of the Agreement.
Section 4. The Contractor shall indemnify and hold harmless the City, and its officers, agents
and employees, from and against all claims, damages, losses, and expenses, including attorneys
fees, arising out of or resulting from the Contractor's information resources or systems that are not
Year 2000 Compliant.
PSA 10/97
1
GENERAL EMPLOYEES RETIREMENT PLAN
ACTUARIAL VALUATION REPORT
COPY AVAILABLE UPON REQUEST
GENERAL EMPLOYEE'S RETIREMENT
EMPLOYEE HANDBOOK
COPY AVAILABLE UPON REQUEST
7
City of Fort Collins
Admini itive Services
Purchasing Division
REQUEST FOR PROPOSAL
CITY OF FORT COLLINS
GENERAL EMPLOYEE RETIREMENT PLAN (GERP or the "PLAN")
ACTUARIAL AND POLICY REVIEW
PROPOSAL NO. P-748
PROPOSAL DATE: 3:00 p.m. (our clock) APRIL 10, 2000
256 W Mountain Avenue • P.O. Box 580 • Fort Collins, CO 80522-0580 • (970) 221-6775 • FAX (970) 221-6707
TABLE OF CONTENTS
Request for Proposals
Page
1-2
Scope of Services
Page
3-4
Contact Persons
Page
5
Time Requirements
Page
5-6
Assistance to be Provided to the Consultant
Page
6
Copy Available on Request
Page
7
Review and Assessment Page 1
Reference evaluation Page 2
Professional Services Agreement (Sample) Page 1-6
Exhibit C Page 1
REQUEST FOR PROPOSAL
CITY OF FORT COLLINS
GENERAL EMPLOYEE RETIREMENT PLAN (GERP or the "PLAN")
ACTUARIAL AND POLICY REVIEW
PROPOSAL NO. P- 748
The General Employees Retirement Committee ("GERC" or the "Committee") of the City of Fort
Collins is requesting proposals from qualified actuarial consultants to perform annual GERP
actuarial studies for a five-year period. The attached Scope of Work defines the background
and needs for the Committee.
A review board will rank interested firms based on their written proposals, using the ranking
system set forth in the City's procedure for acquisition of professional services. A copy of the
rating criteria is attached. The three highest ranked firms may receive an invitation to appear
before the review board for further assessment of qualifications. The successful firm may be
selected without an interview.
Firms seeking this service engagement are to submit written proposals ten (10) copies to the
City of Fort Collins' Purchasing Division, 256 West Mountain Avenue, Fort Collins, Colorado
80521. The Purchasing Division will receive proposal until 3:00 p.m. (our clock), April 10, 2000.
Proposal No. P-748.
A copy of the Request for Proposal may be obtained as follows:
Call the Purchasing Fax -line, 970-416-2033 and follow the verbal instruction to
request document #30748.
2. Download the Bid from the Purchasing Webpage, Current Bids page, at:
www.ci.fort-collins.co.us\CITY_HALL\PURCHASING\INDEX.htm then via the
Current Bids pushbutton.
3. In person, you may visit the Purchasing Division Office at 256 W. Mountain Ave.,
Fort Collins, and request a copy of the Request for Proposal.
The proposals submitted shall include:
1. Three references of work similar to this project, preferably municipalities or public
agencies within Colorado.
2. Resumes of key personnel involved. Include information about credentials held,
professional organization memberships, involvement with Employee Retirement
Plans. Indicate who would provide backup if the primary actuary could not
complete the study.
3. A specific description of information, including electronic data formats, that the
firm would need from the City to complete the study and services.
4. An estimate of the study's cost and an approximate time frame to complete it
after information is provided to you by January 31, 2001. Note: The Committee
needs a draft report by March 31, 2001 and a final report by May 15, 2001.
If possible, a "not to exceed" dollar figure should be provided. Costs should also
be provided for attendance of meetings and hourly rates for special projects.
5. A sample actuarial report that your firm has completed within the last year
covering similar services to those requested in this proposal.
Questions concerning the scope of the project should be made in writing to Jim Hume CPPB,
Project Manager, (970) 221-6776. Responses to questions will be made available to all parties
interested in presenting a proposal.
Questions regarding proposals submittal or process should be directed to James B. O'Neill II,
CPPO, Director of Purchasing and Risk Management, (970) 221-6775.
Sales Prohibited/Conflict of Interest: No officer, employee, or member of City Council, shall
have a financial interest in the sale to the City of any real or personal property, equipment,
material, supplies or services where such officer or employee exercises directly or indirectly any
decision -making authority concerning such sale or any supervisory authority over the services
to be rendered. This rule also applies to subcontracts with the City. Soliciting or accepting any
gift, gratuity favor, entertainment, kickback or any items of monetary value from any person who
has or is seeking to do business with the City of Fort Collins is prohibited.
Collusive or sham proposals: Any proposal deemed to be collusive or a sham proposal will be
rejected and reported to authorities as such. Your authorized signature of this proposal assures
that such proposal is genuine and is not a collusive or sham proposal.
The City of Fort Collins reserves the right to reject any and all proposals and to waive any
irregularities or informalities.
;incerely,
(DsB. ONeill II, CPPO
or of Purchasing & Risk Management
E
I. INTRODUCTION
A. Scope of Services
The General Employees Retirement Committee ("Committee") of the City of Fort Collins
is requesting proposals from qualified firms of independent pension actuaries and
consultants to:
(a) perform an annual actuarial valuation of its General Employees
Retirement Plan (GERP); and
(b) perform on -going pension consulting services for the General Employees
Retirement Committee (GERC). As part of this engagement, the
Committee wishes to contract for the following services:
The firm will be expected to meet with the GERC 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.
Significant 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. Based on the meeting referenced above and employee and financial data
provided by the Committee and the City, the actuary shall 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.
3. The actuary shall, 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), including any assistance
needed in the drafting of financial statements, notes, and disclosures.
4. The actuary shall on an annual basis provide Personal Retirement Planning
Statements to members of the Plan by March 31 of each year.
5. The actuary will be expected to attend meetings of the Committee (usually held
once per month) and will provide on -going advice to the Committee to assist in
its administration of the Plan. Because the Plan and Committee were formed by
action of the Fort Collins City Council, the actuary may be called upon to attend
Council meetings to discuss significant issues concerning the Plan.
3
6. The actuary will provide personal computer based software capable of
calculating benefit options for retirees. Such software is to be updated annually
after implementation of pay adjustments within 30 days of completion of such
adjustments.
6. The actuary will be expected to be completely familiar with the Plan documents.
If needed, the actuary will assist the Committee draft changes to the Plan
documents.
7. From time -to -time, the Committee may request special reports, research, and
analysis of topics to be prepared by the actuary and discussed at one of its
regular monthly meetings. If needed, the actuary shall discuss such reports with
appropriate City personnel prior to such meeting and make revisions, if
appropriate, prior to the meeting.
8. The Committee and support staff may have questions of the actuary that need to
be answered on a timely (same day, within hours) basis.
10. Upon awarding the contract to the successful firm, the actuary, upon direction
from the Committee, will be expected to begin attending meetings of the
Committee for the remainder of 2000 in order to become familiar with the Plan
and the issues the Committee is currently working on.
The City will not reimburse responding firms for any expenses incurred in preparing proposals
in response to this request.
Proposals submitted will be reviewed by an evaluation committee consisting of representatives
from the Committee, Plan support staff, and the Purchasing Division.
The City reserves the right to retain all proposals submitted and to use any ideas in a proposal
regardless of whether that proposal is selected. Submission of a proposal indicates acceptance
by the firm of the conditions contained in this request for proposals, unless clearly and
specifically noted in the proposal submitted and confirmed in the contract between the City and
the firm selected.
It is anticipated that the selection of a firm will be completed by June 1, 2000. It is expected
that a contract will be executed between both parties by June 1, 2000.
B. Standards for Supervising Actuaries
1. Fellow or Associate of the Society of Actuaries or Fellow of the Conference of
Actuaries in Public Practice or Member of the American Academy of Actuaries or
meet standards of a qualified actuary under the provisions of the Employee
Retirement Income Security Act of 1974.
2. Experience as a supervising actuary including consulting services, experience
analysis and valuation assignments for major retirement systems, with specific
reference to involvement with public retirement systems.
4
3. Experience in testifying before legislative and administrative bodies in support of
actuarial positions and the principles used in valuing the system or estimating the
cost of legislation.
4. Ability to discuss, in laymen's terms, actuarial theory, basis for assumptions, and
other actuarial matters.
Note: The relative size and complexity of prior major assignments and other evaluations
of the various material presented to satisfy the experience requirements above will be
important factors in the selection of an actuarial firm. The Committee has not
established fixed standards to use as a benchmark for experience.
C. Term of Engagement
The original term of this agreement shall be from June 1, 2000 to May 31, 2001. In addition,
subject to the annual review of the General Employees Retirement Committee and the
satisfactory negotiation of terms, the Agreement may be extended for additional one-year
periods not to exceed four (4) additional one-year periods.
II. CONTACT PERSONS
The consultant's principal contact with the City will be Alan Krcmarik, Financial Officer of the
City and ex-officio Secretary of the Committee, who will coordinate the assistance to be
provided by the City to the actuary, including scheduling attendance at meetings.
The Committee currently engages the services of Watson Wyatt Worldwide as actuary and
consultant for its General Employee's Retirement Plan (GERP). A copy of the actuarial report
prepared by Watson & Wyatt for the plan year ending December 31, 1999 is available upon
request.
III. TIME REQUIREMENTS
A. Proposal Calendar
The following is a list of key dates up to and including the date oral interviews are conducted:
Request for proposal issued March 17, 2000
Due date for Proposals April 10, 2000
Ratings completed; short list developed April 17, 2000
Interviews; selection of top firm April 27, 2000
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B. Meeting with Committee and Contract Dates
Selected firm meeting with the Committee June 1, 2000
Contract date
C. Schedule for the Engagement
June 1, 2000
1. The actuarial valuation as of December 31, 2000, should be completed no later
than May 15, 2001.
2. From time -to -time, the GERC will request special reports from the actuary to be
presented at its regular monthly meetings. The actuary shall make such reports
available to the GERC members no later than one week prior to the meeting for
which the report is scheduled.
IV. ASSISTANCE TO BE PROVIDED TO THE CONSULTANT
The Finance and Human Resource Departments of the City will provide assistance to the
actuary on an on -going basis. At a minimum, the following information will be provided to the
actuary at the outset of the engagement:
A. Copies of all plan documents.
1) General Employees Retirement Plan Actuarial Valuation Report
2) General Employee's Retirement Employee Handbook
B. Minutes of meetings of the GERC.
C. Payroll and other employee information as needed.
1.1