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HomeMy WebLinkAboutRFP - P988 ACTUARIAL SERVICES AND POLICY REVIEW GERPREQUEST FOR PROPOSAL CITY OF FORT COLLINS City of Fart Collins P988 ACTUARIAL SERVICES AND POLICY REVIEW ENEULEMPLOYEES' RETIREMENT PLAN (GERP or the "PLAN") 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. Firms seeking this service engagement are to submit written proposals eight (8) copies to the City of Fort Collins' Purchasing Division, , Fort Collins, Colorado 80524. The Purchasing Division will receive proposal until 3:00 p.m. (our clock), May 3, 2005. Proposal No. P988. A copy of the Proposal may be obtained as follows: 1. Download the Proposal/Bid from the BuySpeed Webpage, https:Hsecure2.fcqov.com/bso/login.*sp. 2. Come by Purchasing at 215 North Mason St., 2"d floor, Fort Collins, and request a copy of the Bid. Questions concerning the scope of the project should be made in writing to James B. O'Neill II, CPPO, FNIGP Director of Purchasing and Risk Management, (970) 221-6775. Responses to questions will be made available to all parties interested in presenting a proposal. 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. Sincerely, J B. O eill II, CPPO, FNIGP re for of Purchasing & Risk Management 215 North Mason Street - 2" FlmW m P-0. Box 580 * Fort Collins, CO 80522-0580 m (970) 221-0775 • Fax (970) 221-6707 www.fcgov.com SOURCES OF RETIREMENT INCOME Social Security - The current Social Security system allows you to begin receiving reduced benefits at age 62. Social Security benefits are adjusted annually for changes in cost of living. For an estimate of your Social Security benefit using your personal earnings history (which may include other previous employment contributions), you can call the Social Security Administration at 1-900-772-1213 or visit their website at www.ssa.gov to request a statement. Employer -Provided Benefits - A. The General Employees' Retirement Plan provides unreduced retirement benefits at normal retirement age of 65. This is based on a formula using years of Credited Service x 1.5% x Final Average Monthly Compensation (the 60 consecutive calendar months out of the last 10 years of your eligible employment with the City that produced the highest average). Reduced retirement benefits may begin as early as age 55. Optional forms of payment and benefits for a spouse or beneficiary will reduce the amount of payment. B. The 457 Deferred Compensation Plan offers you the ability to save and invest income on a pre- tax basis. This means that you do not pay federal or state taxes on any contributions to this plan until the money is withdrawn at a later date. You may voluntarily contribute to the 457 Deferred Compensation Plan. if you are not participating in the 401(a) Money Purchase Plan, you may be eligible for a matching contribution to the 457 DCP of up to 3% from the City. The maximum deferral to a 457 Deferred Compensation Plan is either 100% of includible compensation or $14,000 (effective January 1, 2005) per year, whichever is less. Plan benefits are based on the total amount of money in your account at retirement, C. The 401(a) Money Purchase Plan also offers you the ability to save and invest income on a pre- tax basis. If you participate in the 401(a) Money Purchase Plan, both your contribution and the City's contribution are a fixed percentage of your salary. This cannot be changed. Plan benefits are based on the total amount of money in your account at retirement. Other - You may have other sources of retirement income, such as an Individual Retirement Account, personal savings or investments, and/or benefits payable by a prior employer, These other sources are not included in this Personal Retirement Planning Statement projection. Note: this statement does not take into account any Domestic Relations Order. Questions? Call Human Resources at (970) 221-6562 The projected benefits shown on this statement are only estimates and are not guarantees. You may want to consult your personal financial advisor regarding these projections. If there is any inconsistency between this statement and the Plans, the Plan documents will govern. Page 3 WOPSA January, 2005 PLANNING YOUR ICMA RETIREMENT CORPORATION (RC) INVESTMENT STRATEGY The ICMA-Retirement Corporation offers abroad range of funds specifically designed for public sector 401(a) money purchase and 457 deferred compensation plans. Most investment professionals agree that allocating your assets among several funds provides you with greater diversity, enhanced stability, and improved long-term returns. For more complete information on these funds. see the 1CIAA Retirement Corporation's Retirement Intusinient Guides available font the Human Resources Deparnnent. For more information on your ICMA RU fund, call 1-800-669-7400, or visit the ICMA R(' web site al tvww.icmarcunrg. Fund Name Degree of Market Risk' Morningstar Rating Equity Funds Fquilq Income Cirowill & Income Moderate Average * * * ** Growtb�- _* Above average — _. _ �_- AgCrtsciveoppornituttes ---. Significant -Significant --- *A, — Inter annual NtA c00 Stock Index Moderate Ilroad Market Index Moderate to above average Klid;Small Company Index Significant Overseas FilLity Index Significant Lord Abbett Largc Company Value Moderate American Century Value Moderate * * Or Calvert Social Investment Moderate to above average Fidelity Contrafund Moderate to above average: Moderate to above average Fidelity Magellan Moderate to above average i Gabelh Value MFS Large. Company Growth Moderate to above average American Crntury Ultra Significant T Rowc Price Small Clap Stuck Above Average T, Rowe Price :imali Cap Valux• Above Average ! * * * * lnvewo Small Company Growth Significant * k BalancedAsset Allocation Moderate * t Funds Fidelity Puritan Moderate Fixed Income I ftiancytilatitet Low *'A Low to moderate; subject to Funds U.S. Government bccurifies } cnangcc in Interest rates 'rate_subject to Core lined index changes in Interest rates Pimco Total Return Moderate: subject to changes in interest rates _ Pimco High Yield Above Atera$e * + - ' Cask Funds PLUS Low, principal backed by .. companies issuing unttracts WA ICMA vses historical asset class volatilay to deter-mme degree ofnv.rket -isk, and within each asset clu ; the g-}'ear standard deviation l] LLled ltl dc`if:lilP i1 IISI; (trfte2 Atler the nil: curd'r is CAlculakcd' bused km A3SVli clasi'r and gitndar(t devi2uon, the dcC clluh'C llL umcr ut votatility words am dotted into tlic iarikinp system- Lna Vlodera¢-. ,l vetvge, Ahaae Ave -age, and Dignifisant- tiote that rniatiiny orange's ,Over time. v,rgN WOPSA January, 2005 PROFESSIONAL SERVICES AGREEMENT WORK ORDER TYPE 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 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 any project Work Orders for , issued by the City. A blank sample of a work order is attached hereto as Exhibit "A", consisting of (_) page and is incorporated herein by this reference. 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. [Option 1] This Agreement shall commence and shall continue in full force and effect until , 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 (_) additional one year periods. Renewals and pricing WOPSA January, 2005 changes shall be negotiated by and agreed to by both parties. The Denver Boulder Greeley CPIU published by the Colorado State Planning and Budget Office will be used as a guide. Written notice of renewal shall be provided to the Service Provider and mailed no later than ninety (90) days prior to contract end. 4. Contract Period. This Agreement shall commence , and shall continue in full force and effect until , 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 (_) 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 shall be provided to the Service Provider and mailed no later than ninety (90) 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: Professional: City: In the event of any such early termination by the With Copy to: , 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. WOPSA January, 2005 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 designs, plans, reports, specifications, and drawings 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 attorney's fees arising directly or indirectly out of the Professional's negligent performance of any of the services furnished under this Agreement. The Professional shall maintain commercial general liability insurance in the amount of $ combined single limits and errors and omissions insurance in the amount of 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 _ (_) page(s), 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 the Work Order and upon approval of the Professional's direct reimbursable expenses. Final 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. 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 WOPSA January, 2005 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. Project Drawings. Upon conclusion of the project and before final payment, the Professional shall provide the City with reproducible drawings of the project containing accurate information on the project as constructed. Drawings shall be of archival, prepared on stable mylar base material using a non -fading process to provide for long storage and high quality reproduction. "CD" disc of the as -built drawings shall also be submitted to the owner in and AutoCAD version no older then the established city standard. 10. Monthly Report. Commencing thirty (30) days after Notice to Proceed is given on any Work Order and every thirty days thereafter, Professional is required to provide the City Representative with a written report of the status of the work with respect to the Work Order, 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. 11. 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. 12. 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. 13. 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 WOPSA January, 2005 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. 14. 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 . 15. Remedies. In the event a party has been declared in default, such defaulting party shall be allowed a period of ten (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. 16. 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. 17. 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. 18. Special Provisions. 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. WOPSA January. 2005 THE CITY OF FORT COLLINS, COLORADO By: James B. O'Neill II, CPPO, FNIGP Director of Purchasing & Risk Management Date: ATTEST: City Clerk APPROVED AS TO FORM: Assistant City Attorney [Insert Professional's name] or [Insert Partnership Name] or [Insert individual's name] Doing business as [insert name of business] Title: CORPORATE PRESIDENT OR VICE PRESIDENT Date: ATTEST: Corporate Secretary WOPSA January, 2005 (Corporate Sea[) EXHIBIT "A" WORK ORDER FORM PURSUANT TO AN AGREEMENT BETWEEN THE CITY OF FORT COLLINS AND DATED: Work Order Number: Purchase Order Number: Project Title: Commencement Date: Completion Date: Maximum Fee: (time and reimbursable direct costs): Project Description: Scope of Services: Acceptance 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. Professional By: Date: User The attached forms consisting of _ (_) pages are hereby accepted and incorporated herein, by this reference, and Notice to Proceed is hereby given. City of Fort Collins By: James B. O'Neill II, CPPO, FNIGP Director of Purchasing and Risk Management (over $30,000.00) Date: A MILLIMAN GLOBAL FIRM 9 Milliman Consultants and Actuaries May 2, 2005 Mr. James B. O'Neill II, CPPO, FNIGP Director of Purchasing & Risk Management City of Fort Collins' Purchasing Division 215 North Mason Street, 2nd Floor Fort Collins, CO 80524 RE: Proposal to Provide Actuarial Services for the City of Fort Collins General Employees' Retirement Plan, Proposal No. P988 Dear Mr. O'Neill: 1099 Eighteenth Street, Suite 3100 Denver, CO 80202-1931 Tel +1 303 299.9400 Fay +1 303 299.9018 www.milliman.com Enclosed are eight copies of our proposal to provide actuarial services for the City of Fort Collins General Employees' Retirement Plan. Please let us know if you have questions or would like further information. We look forward to discussing our proposal with you. Sincerely, Patricia Ann Kahle, F.S.A., E.A. Principal and Consulting Actuary PAK:wp Enclosure j:docs:proposals:05 City of Ft. Collins cove�Fs IN PRINCIPAL CITIES WORLDWIDE loc REQUEST FOR PROPOSAL CITY OF FORT COLLINS P988 ACTUARIAL SERVICES AND POLICY REVIEW GENERAL EMPLOYEES' RETIREMENT PLAN (GERP or the "PLAN") INTRODUCTION 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. A. Scope of Services 1. Perform an annual actuarial valuation of its General Employees' Retirement Plan (GERP) including a summary of the valuation results, and information about all significant assumptions and findings noted. The actuarial valuation as of January 1, 2006, should be completed no later than May 15, 2006. 2. 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 the following: • Evaluation of the Plan's actuarial cost method • Valuation procedures • Economic assumptions • Demographic assumptions • Actuarial value of assets 3. Perform on -going pension consulting services for the GERC. 4. 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. 5. The actuary shall on an annual basis provide Personal Retirement Planning Statements to members of the Plan by March 31 of each year. See Exhibit A for sample format. 6. 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 2005 in order to become familiar with the Plan and the issues the Committee is currently working on. The actuary will be expected to attend meetings of the Committee held on the first Thursday of each month at 1:15pm 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. Administrative Service Purchasing Divison REQUEST FOR PROPOSAL CITY OF FORT COLLINS City of Fort Collins P988 ACTUARIAL SERVICES AND POLICY REVIEW GENERAL EMPLOYEES' RETIREMENT PLAN (GERP or the "PLAN") 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. Firms seeking this service engagement are to submit written proposals eight (8) copies to the City of Fort Collins' Purchasing Division, , Fort Collins, Colorado 80524. The Purchasing Division will receive proposal until 3:00 p.m. (our clock), May 3, 2005. Proposal No. P988. A copy of the Proposal may be obtained as follows: 1. Download the Proposal/Bid from the BuySpeed Webpage, https://secure2.fcqov.com/bso/login.msp. 2. Come by Purchasing at 215 North Mason St., 2nd floor, Fort Collins, and request a copy of the Bid. Questions concerning the scope of the project should be made in writing to James B. O'Neill II, CPPO, FNIGP Director of Purchasing and Risk Management, (970) 221-6775. Responses to questions will be made available to all parties interested in presenting a proposal. 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. Sincerely, James B. O'Neill II, CPPO, FNIGP Director of Purchasing & Risk Management 215 North Mason Street • 2nd Floor • P.O. Box 580 • Fort Collins, CO 80522-0580 • (970) 221-6775 • Fax (970) 221-6707 wwwkgov.com Administrative Service Purchasing Divison REQUEST FOR PROPOSAL CITY OF FORT COLLINS City of Fort Collins P988 ACTUARIAL SERVICES AND POLICY REVIEW GENERAL EMPLOYEES' RETIREMENT PLAN (GERP or the "PLAN") 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. Firms seeking this service engagement are to submit written proposals eight (8) copies to the City of Fort Collins' Purchasing Division, , Fort Collins, Colorado 80524. The Purchasing Division will receive proposal until 3:00 p.m. (our clock), May 3, 2005. Proposal No. P988. A copy of the Proposal may be obtained as follows: 1. Download the Proposal/Bid from the BuySpeed Webpage, https://secure2.fcqov.com/bso/login.msp. 2. Come by Purchasing at 215 North Mason St., 2nd floor, Fort Collins, and request a copy of the Bid. Questions concerning the scope of the project should be made in writing to James B. O'Neill II, CPPO, FNIGP Director of Purchasing and Risk Management, (970) 221-6775. Responses to questions will be made available to all parties interested in presenting a proposal. 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. Sincerely, James B. O'Neill II, CPPO, FNIGP Director of Purchasing & Risk Management 215 North Mason Street • 2nd Floor • P.O. Box 580 • Fort Collins, CO 80522-0580 • (970) 221-6775 • Fax (970) 221-6707 wwwkgov.com Administrative Service Purchasing Divison REQUEST FOR PROPOSAL CITY OF FORT COLLINS City of Fort Collins P988 ACTUARIAL SERVICES AND POLICY REVIEW GENERAL EMPLOYEES' RETIREMENT PLAN (GERP or the "PLAN") 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. Firms seeking this service engagement are to submit written proposals eight (8) copies to the City of Fort Collins' Purchasing Division, , Fort Collins, Colorado 80524. The Purchasing Division will receive proposal until 3:00 p.m. (our clock), May 3, 2005. Proposal No. P988. A copy of the Proposal may be obtained as follows: 1. Download the Proposal/Bid from the BuySpeed Webpage, https://secure2.fcqov.com/bso/login.msp. 2. Come by Purchasing at 215 North Mason St., 2nd floor, Fort Collins, and request a copy of the Bid. Questions concerning the scope of the project should be made in writing to James B. O'Neill II, CPPO, FNIGP Director of Purchasing and Risk Management, (970) 221-6775. Responses to questions will be made available to all parties interested in presenting a proposal. 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. Sincerely, James B. O'Neill II, CPPO, FNIGP Director of Purchasing & Risk Management 215 North Mason Street • 2nd Floor • P.O. Box 580 • Fort Collins, CO 80522-0580 • (970) 221-6775 • Fax (970) 221-6707 wwwkgov.com REQUEST FOR PROPOSAL CITY OF FORT COLLINS P988 ACTUARIAL SERVICES AND POLICY REVIEW GENERAL EMPLOYEES' RETIREMENT PLAN (GERP or the "PLAN") INTRODUCTION 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. A. Scope of Services 1. Perform an annual actuarial valuation of its General Employees' Retirement Plan (GERP) including a summary of the valuation results, and information about all significant assumptions and findings noted. The actuarial valuation as of January 1, 2006, should be completed no later than May 15, 2006. 2. 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 the following: • Evaluation of the Plan's actuarial cost method • Valuation procedures • Economic assumptions • Demographic assumptions • Actuarial value of assets 3. Perform on -going pension consulting services for the GERC. 4. 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. 5. The actuary shall on an annual basis provide Personal Retirement Planning Statements to members of the Plan by March 31 of each year. See Exhibit A for sample format. 6. 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 2005 in order to become familiar with the Plan and the issues the Committee is currently working on. The actuary will be expected to attend meetings of the Committee held on the first Thursday of each month at 1:15pm 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. 7. The City normally calculates benefit options for retirees. However, the actuary must have 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. 8. The actuary will be expected to be completely familiar with the Plan documents. If needed, the actuary will assist the Committee in drafting changes to the Plan documents. 9. 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. 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. 10. The Committee and support staff may have questions of the actuary that need to be answered on a timely (same day, within hours) basis. B. City Responsibilities 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 b. General Employees' Retirement Plan Actuarial Valuation Report c. General Employees' Retirement Summary Plan Description d. Minutes of meetings of the GERC e. Payroll and other employee information as needed 2. The City will not reimburse responding firms for any expenses incurred in preparing proposals in response to this request. 3. Proposals submitted will be reviewed by an evaluation committee consisting of representatives from the Committee, Plan support staff, and the Purchasing Division. 4. 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, 2005. It is expected that a contract will be executed between both parties by June 15, 2005. C. Proposal Requirements 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. 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. A "not to exceed" cost estimate of the Actuarial Reports and an approximate time frame to complete it after information is provided to you by January 31, 2006. Note: The Committee needs a draft report by March 31, 2006 and a final report by May 15, 2006. 5. If possible, an "not to exceed" estimate of the cost of the Personal Retirement Planning Statements should be provided. Note: Statements must be distributed to Plan Participants by March 31. 6. Costs should also be provided for attendance of meetings and hourly rates for special projects. 7. A sample actuarial report that your firm has completed within the last year covering similar services to those requested in this proposal. D. 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. 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. Possess the ability to discuss, in laymen's terms, actuarial theory, basis for assumptions, and other actuarial matters. E. Term of Engagement The original term of this agreement shall be from July 1, 2005 to May 31, 2006. 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. F. Contact Persons The consultant's principal contact with the City will be the 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 Milliman USA as actuary and consultant for its General Employees' Retirement Plan (GERP). A copy of the actuarial report prepared by Milliman USA for the plan year beginning January 1, 2005 is available upon request. G. Proposal Calendar The following is a list of key dates up to and including the date oral interviews are conducted: Request for proposal issued April 11, 2005 Due date for proposals May 3, 2005 Ratings completed; short list developed May 16, 2005 Interviews; selection of top firm May 23, 2005 Contract date July 1, 2005 Selected firm meeting with the Committee July 7, 2005 H. 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. 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 processional services. 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. 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? 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? 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) If Professional administered a construction contract, was the project functional upon completion and did it operate properly? Were problems corrected quickly and effectively? WOPSA January, 2005 .. : PERSONAL RETIREMENT PLANNING STATEMENT Prepared especially for: Sample Using data as of: December 31, 2004 Social Security Number: 5555 Date of Birth: January 01, 1943 Date of Hire: January 01, 1990 Adjusted Credited Service Date: January 01, 1990 Normal Retirement Date: January 01, 2008 Annual Pay Rate as of 12/3112004: $35,000 Note: These statements are prepared only for members remaining in the GERP after January 1, 2005. Retirement projections are based on the pay rate shown above. PURPOSE ICMA RC Contributions 457 Deferred Compensation Plan 401(a) Money Purchase Plan Total f 12/31/2004 12/31/2004 City Employee Balance 0.0% 1.8% $15,000 3.0% 3.0% 20,000 3.0% 4.8% $35,000 This Personal Retirement Planning Statement from the General Employees' Retirement Committee and the Human Resources Department provides you with a projection of your personal retirement income through your employment with the City of Fort Collins. This projected income is compared to the estimated income you will need at retirement. In some cases, your projected income may be inadequate at the age you would like to retire, so steps to reduce any shortfall are suggested. YOUR PROJECTED RETIREMENT INCOME In order to maintain your standard of living, some financial experts estimate that you will need retirement income equal to about 80% of your annual income just prior to your retirement, depending upon your individual circumstances. Here is your projected retirement income based upon your participation in the General Employees' Retirement Plan (GERP), Social Security, the 457 Deferred Compensation Plan (457 DCP), and/or the 401(a) Money Purchase Plan (401(a) MPP), compared to the 80% target: zoo ae a 'm 10o% 0 (m 55 60 62 65 70 Projected Income Retirement Age Available N/A N/A 59% 90% 116% Shortfall N/A N/A 21 % 0% 0% 0401(a) MPP and 457 DCP ® Social Security' GBH- - 60% Target * No Social Security is shown for ages 55 and 60 because age 62 is the earliest a benefit is payable. ** The GERP benefit is calculated based on the employee's life only. Optional forms of payment with benefits for a spouse or beneficiary will reduce the amount of the payment. The increases in GERP benefits are due to increases in the number of years of service with the City. Sample Location Code 1004 WOPSA January, 2005 IF YOU HAVE A SHORTFALL If you have a shortfall at the age you would Iike to retire, you may choose to contact a financial planner. You may want to take the actions listed below to reduce a projected shortfall. Contact Human Resources for information about #I and #2. 1. Increase your contribution to the 457 Deferred Compensation Plan or your personal savings. 2. Reallocate your investments in the 457 Deferred Compensation Plan, the 401(a) Money Purchase Plan, and/or personal savings (see page 4 for ICMA RC fund comparison). 3. Retire at a later age or work part-time after retirement. ASSUMPTIONS USED FOR PROJECTED FIGURES ON GRAPH Return on Investments -The assumed annual return on the assets you have invested in the City of Fort Collins 457 Deferred Compensation and the 401(a) Money Purchase Plans is based on the following data: Allocation of Your Current Historical Type of Investment Contributions Returns Equities 100% Refer to your 1CMA RC 8.5% per year Fixed Income and Cash 0% Statement (Quarterly Financial Report) for your 3.5% per year fund allocations Total 100% These projections estimate your long-term annual return will be about 8% per year. Social Security - If you were to continue working and were to retire at age 65, your monthly Social Security benefit is estimated to be $1,172, based on your estimated Social Security contributions. This assumes that the current law remains in effect unchanged until your retirement. Under the current law, unreduced benefits are payable if you retire at age 66. Salary Increases - Salary assumptions used in projecting the increases in benefits shown on the graph are based on an increase of 3% per year, beginning in 2006. _ Inflation - These projections assume inflation will be NTb per year. This is consistent with historical levels. GERP BENEFITS Age 65 Retirement Benefit - Your monthly benefit at age 65 is estimated to be $1,000, which you would receive for the rest of your life. This benefit estimate assumes your pay remains the same as the annual amount shown on page 1 for the rest of your working career and that you choose a benefit payable for your life only. Earned Benefits Based on Current Vesting Status - You have earned an approximate monthly benefit of $500 based on 100% vesting for 12.66 years of employment as of December 31, 2004. This amount is calculated using pay you received and your years of credited service. It is the benefit you could receive at age 65 if you were to leave City employment now and elect a benefit payable for your life only. However, you can not receive less than your minimum monthly benefit of $750 as of une WOPSA January, 2005 SOURCES OF RETIREMENT INCOME Social Security - The current Social Security system allows you to begin receiving reduced benefits at age 62. Social Security benefits are adjusted annually for changes in cost of living. For an estimate of your Social Security benefit using your personal earnings history (which may include other previous employment contributions), you can call the Social Security Administration at 1-800-772-1213 or visit their website at www.m.gov to request a statement. Employer -Provided Benefits - A. The General Employees' Retirement Plan provides unreduced retirement benefits at normal retirement age of 65. This is based on a formula using years of Credited Service x 1.5% x Final Average Monthly Compensation (the 60 consecutive calendar months out of the last 10 years of your eligible employment with the City that produced the highest average). Reduced retirement benefits may begin as early as age 55. Optional forms of payment and benefits for a spouse or beneficiary will reduce the amount of payment. B. The 457 Deferred Compensation Plan offers you the ability to save and invest income on a pre- tax basis. This means that you do not pay federal or state taxes on any contributions to this plan until the money is withdrawn at a later date. You may voluntarily contribute to the 457 Deferred Compensation Plan. If you are not participating in the 401(a) Money Purchase Plan, you may be eligible for a matching contribution to the 457 DCP of up to 3% from the City. The maximum deferral to a 457 Deferred Compensation Plan is either 100% of includible compensation or $14,000 (effective January 1, 2005) per year, whichever is less. Plan benefits are based on the total amount of money in your account at retirement. C. The 401(a) Money Purchase Plan also offers you the ability to save and invest income on a pre- tax basis. If you participate in the 401(a) Money Purchase Plan, both your contribution and the City's contribution are a fixed percentage of your salary. This cannot be changed. Plan benefits are based on the total amount of money in your account at retirement. Other - You may have other sources of retirement income, such as an Individual Retirement Account, personal savings or investments, and/or benefits payable by a prior employer. These other sources are not included in this Personal Retirement Planning Statement projection. Note: this statement does not take into account any Domestic Relations Order. Questions? Call Human Resources at (970) 221-6562 The projected benefits shown on this statement are only estimates and are not guarantees. You may want to consult your personal financial advisor regarding these projections. If there is any inconsistency between this statement and the Plans, the Plan documents will govern. Page 3 WOPSA January, 2005 PLANNING YOUR ICMA RETIREMENT CORPORATION (RC) INVESTMENT STRATEGY The ICMA-Retirement Corporation offers a broad range of funds specifically designed for public sector 401(a) money purchase and 457 deferred compensation plans. Most investment professionals agree that allocating your assets among several funds provides you with greater diversity, enhanced stability, and improved long-term returns. For more complete information on these funds, see the ICMA Retirenent Corporation's Retirement Investment Guides available from the Human Resources Department. For more information on your ICMA RC fund, call 1-800-669-7400. or visit the ICMA RC vvcb site at www.icmarc.orQ. Fund Name Degree of Market Risk* Morningstar Rating Equity Funds Equity Income Moderate * 4 Growth & Income Average Growth Above average Aggressive Opportunities Significant N/A International Significant 500 Stock Index Moderate �► Broad Market Index Moderate to above average Mid/Small Company Index Significant * tt Overseas Equity Index Significant * it Lord Abbett Large Company Value Moderate American Century Value Moderate _ Calvert Social Investment Moderate to above average Fidelity Contrafund Moderate to above average Moderate to above average Fidelity Magellan Gabelli Value _ Moderate to above average Moderate to above average * * k t * # MFS Large Company Growth American Century Ultra Significant T. Rowe Price Small Cap Stock Above Average * tk T, Rowe Price Small Cap Value Above Average Invesco Small Company Growth Significant * * f Balanced Funds Asset Allocation Moderate Fidelity Puritan Moderate Low N/A Low to moderate; subject to changes in interest rates Fixed Income Funds Money Market U.S. Government Securities Core Bond Index Moderate; subject to changes in interest rates Pimco Total Return Moderate; subject to changes in interest rates Pimco High Yield Above Average Cash Funds PLUS Low; principal backed by companies issuing contracts N/A • ICMA uses historical asset class volatility to determine degree of market risk; and within each asset class the 3-year standard deviation is used to develop a risk order. After the risk order is calculated, based on asset class and standard deviation, the descriptive historical volatility words are slotted into the ranking system: Low, Moderate, Average, Above Average, and Significant. Note that volatility changes over time. Page d WOPSA January, 2005 PROFESSIONAL SERVICES AGREEMENT WORK ORDER TYPE 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 "Professional". WITNESSETH: hereinafter referred to as 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 any project Work Orders for , issued by the City. A blank sample of a work order is attached hereto as Exhibit "A", consisting of (_) page and is incorporated herein by this reference. 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. [Option 11 This Agreement shall commence , and shall continue in full force and effect until , 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 (_) additional one year periods. Renewals and pricing WOPSA January, 2005 changes shall be negotiated by and agreed to by both parties. The Denver Boulder Greeley CPIU published by the Colorado State Planning and Budget Office will be used as a guide. Written notice of renewal shall be provided to the Service Provider and mailed no later than ninety (90) days prior to contract end. 4. Contract Period. This Agreement shall commence and shall continue in full force and effect until , 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 (_) 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 shall be provided to the Service Provider and mailed no later than ninety (90) days prior to contract end. 5. Early Termination bV 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: Professional: City: 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. WOPSA January, 2005 6. Design, Protect 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 designs, plans, reports, specifications, and drawings 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 attorney's fees arising directly or indirectly out of the Professional's negligent performance of any of the services furnished under this Agreement. The Professional shall maintain commercial general liability insurance in the amount of $ combined single limits and errors and omissions insurance in the amount of 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 (_) page(s), 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 the Work Order and upon approval of the Professional's direct reimbursable expenses. Final 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. 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 WOPSA January, 2005 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. Project Drawings. Upon conclusion of the project and before final payment, the Professional shall provide the City with reproducible drawings of the project containing accurate information on the project as constructed. Drawings shall be of archival, prepared on stable mylar base material using a non -fading process to provide for long storage and high quality reproduction. "CD" disc of the as -built drawings shall also be submitted to the owner in and AutoCAD version no older then the established city standard. 10. Monthly Report. Commencing thirty (30) days after Notice to Proceed is given on any Work Order and every thirty days thereafter, Professional is required to provide the City Representative with a written report of the status of the work with respect to the Work Order, 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. 11. 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. 12. 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. 13. 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 WOPSA January, 2005 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. 14. 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 . 15. Remedies. In the event a party has been declared in default, such defaulting party shall be allowed a period of ten (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. 16. 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. 17. 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. 18. Special Provisions. 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. WOPSA January, 2005 THE CITY OF FORT COLLINS, COLORADO M James B. O'Neill II, CPPO, FNIGP Director of Purchasing & Risk Management Date: ATTEST: City Clerk APPROVED AS TO FORM: Assistant City Attorney [Insert Professional's name] or [Insert Partnership Name] or [Insert individual's name] Doing business as [insert name of business] go Title: CORPORATE PRESIDENT OR VICE PRESIDENT Date: ATTEST: Corporate Secretary WOPSA January, 2005 (Corporate Seal) EXHIBIT "A" WORK ORDER FORM PURSUANT TO AN AGREEMENT BETWEEN THE CITY OF FORT COLLINS AND DATED: Work Order Number: Purchase Order Number: Project Title: Commencement Date: Completion Date: Maximum Fee: (time and reimbursable direct costs): Project Description: Scope of Services: Acceptance 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. Professional By: User The attached forms consisting of (_) pages are hereby accepted and incorporated herein, by this reference, and Notice to Proceed is hereby given. City of Fort Collins By: James B. O'Neill II, CPPO, FNIGP Director of Purchasing and Risk Management (over $30,000.00) Date: Date: Administrative Service Purchasing Divison REQUEST FOR PROPOSAL CITY OF FORT COLLINS City of Fort Collins P988 ACTUARIAL SERVICES AND POLICY REVIEW GENERAL EMPLOYEES' RETIREMENT PLAN (GERP or the "PLAN") 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. Firms seeking this service engagement are to submit written proposals eight (8) copies to the City of Fort Collins' Purchasing Division, , Fort Collins, Colorado 80524. The Purchasing Division will receive proposal until 3:00 p.m. (our clock), May 3, 2005. Proposal No. P988. A copy of the Proposal may be obtained as follows: 1. Download the Proposal/Bid from the BuySpeed Webpage, https://secure2.fcqov.com/bso/login.msp. 2. Come by Purchasing at 215 North Mason St., 2nd floor, Fort Collins, and request a copy of the Bid. Questions concerning the scope of the project should be made in writing to James B. O'Neill II, CPPO, FNIGP Director of Purchasing and Risk Management, (970) 221-6775. Responses to questions will be made available to all parties interested in presenting a proposal. 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. Sincerely, James B. O'Neill II, CPPO, FNIGP Director of Purchasing & Risk Management 215 North Mason Street • 2nd Floor • P.O. Box 580 • Fort Collins, CO 80522-0580 • (970) 221-6775 • Fax (970) 221-6707 wwwkgov.com REQUEST FOR PROPOSAL CITY OF FORT COLLINS P988 ACTUARIAL SERVICES AND POLICY REVIEW GENERAL EMPLOYEES' RETIREMENT PLAN (GERP or the "PLAN") INTRODUCTION 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. A. Scope of Services 1. Perform an annual actuarial valuation of its General Employees' Retirement Plan (GERP) including a summary of the valuation results, and information about all significant assumptions and findings noted. The actuarial valuation as of January 1, 2006, should be completed no later than May 15, 2006. 2. 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 the following: • Evaluation of the Plan's actuarial cost method • Valuation procedures • Economic assumptions • Demographic assumptions • Actuarial value of assets 3. Perform on -going pension consulting services for the GERC. 4. 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. 5. The actuary shall on an annual basis provide Personal Retirement Planning Statements to members of the Plan by March 31 of each year. See Exhibit A for sample format. 6. 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 2005 in order to become familiar with the Plan and the issues the Committee is currently working on. The actuary will be expected to attend meetings of the Committee held on the first Thursday of each month at 1:15pm 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. 7. The City normally calculates benefit options for retirees. However, the actuary must have 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. 8. The actuary will be expected to be completely familiar with the Plan documents. If needed, the actuary will assist the Committee in drafting changes to the Plan documents. 9. 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. 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. 10. The Committee and support staff may have questions of the actuary that need to be answered on a timely (same day, within hours) basis. B. City Responsibilities 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 b. General Employees' Retirement Plan Actuarial Valuation Report c. General Employees' Retirement Summary Plan Description d. Minutes of meetings of the GERC e. Payroll and other employee information as needed 2. The City will not reimburse responding firms for any expenses incurred in preparing proposals in response to this request. 3. Proposals submitted will be reviewed by an evaluation committee consisting of representatives from the Committee, Plan support staff, and the Purchasing Division. 4. 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, 2005. It is expected that a contract will be executed between both parties by June 15, 2005. C. Proposal Requirements 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. 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. A "not to exceed" cost estimate of the Actuarial Reports and an approximate time frame to complete it after information is provided to you by January 31, 2006. Note: The Committee needs a draft report by March 31, 2006 and a final report by May 15, 2006. 5. If possible, an "not to exceed" estimate of the cost of the Personal Retirement Planning Statements should be provided. Note: Statements must be distributed to Plan Participants by March 31. 6. Costs should also be provided for attendance of meetings and hourly rates for special projects. 7. A sample actuarial report that your firm has completed within the last year covering similar services to those requested in this proposal. D. 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. 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. Possess the ability to discuss, in laymen's terms, actuarial theory, basis for assumptions, and other actuarial matters. E. Term of Engagement The original term of this agreement shall be from July 1, 2005 to May 31, 2006. 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. F. Contact Persons The consultant's principal contact with the City will be the 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 Milliman USA as actuary and consultant for its General Employees' Retirement Plan (GERP). A copy of the actuarial report prepared by Milliman USA for the plan year beginning January 1, 2005 is available upon request. G. Proposal Calendar The following is a list of key dates up to and including the date oral interviews are conducted: Request for proposal issued April 11, 2005 Due date for proposals May 3, 2005 Ratings completed; short list developed May 16, 2005 Interviews; selection of top firm May 23, 2005 Contract date July 1, 2005 Selected firm meeting with the Committee July 7, 2005 H. 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. 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 processional services. 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. 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? 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? 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) If Professional administered a construction contract, was the project functional upon completion and did it operate properly? Were problems corrected quickly and effectively? WOPSA January, 2005 .. : PERSONAL RETIREMENT PLANNING STATEMENT Prepared especially for: Sample Using data as of: December 31, 2004 Social Security Number: 5555 Date of Birth: January 01, 1943 Date of Hire: January 01, 1990 Adjusted Credited Service Date: January 01, 1990 Normal Retirement Date: January 01, 2008 Annual Pay Rate as of 12/3112004: $35,000 Note: These statements are prepared only for members remaining in the GERP after January 1, 2005. Retirement projections are based on the pay rate shown above. PURPOSE ICMA RC Contributions 457 Deferred Compensation Plan 401(a) Money Purchase Plan Total f 12/31/2004 12/31/2004 City Employee Balance 0.0% 1.8% $15,000 3.0% 3.0% 20,000 3.0% 4.8% $35,000 This Personal Retirement Planning Statement from the General Employees' Retirement Committee and the Human Resources Department provides you with a projection of your personal retirement income through your employment with the City of Fort Collins. This projected income is compared to the estimated income you will need at retirement. In some cases, your projected income may be inadequate at the age you would like to retire, so steps to reduce any shortfall are suggested. YOUR PROJECTED RETIREMENT INCOME In order to maintain your standard of living, some financial experts estimate that you will need retirement income equal to about 80% of your annual income just prior to your retirement, depending upon your individual circumstances. Here is your projected retirement income based upon your participation in the General Employees' Retirement Plan (GERP), Social Security, the 457 Deferred Compensation Plan (457 DCP), and/or the 401(a) Money Purchase Plan (401(a) MPP), compared to the 80% target: zoo ae a 'm 10o% 0 (m 55 60 62 65 70 Projected Income Retirement Age Available N/A N/A 59% 90% 116% Shortfall N/A N/A 21 % 0% 0% 0401(a) MPP and 457 DCP ® Social Security' GBH- - 60% Target * No Social Security is shown for ages 55 and 60 because age 62 is the earliest a benefit is payable. ** The GERP benefit is calculated based on the employee's life only. Optional forms of payment with benefits for a spouse or beneficiary will reduce the amount of the payment. The increases in GERP benefits are due to increases in the number of years of service with the City. Sample Location Code 1004 WOPSA January, 2005 IF YOU HAVE A SHORTFALL If you have a shortfall at the age you would Iike to retire, you may choose to contact a financial planner. You may want to take the actions listed below to reduce a projected shortfall. Contact Human Resources for information about #I and #2. 1. Increase your contribution to the 457 Deferred Compensation Plan or your personal savings. 2. Reallocate your investments in the 457 Deferred Compensation Plan, the 401(a) Money Purchase Plan, and/or personal savings (see page 4 for ICMA RC fund comparison). 3. Retire at a later age or work part-time after retirement. ASSUMPTIONS USED FOR PROJECTED FIGURES ON GRAPH Return on Investments -The assumed annual return on the assets you have invested in the City of Fort Collins 457 Deferred Compensation and the 401(a) Money Purchase Plans is based on the following data: Allocation of Your Current Historical Type of Investment Contributions Returns Equities 100% Refer to your 1CMA RC 8.5% per year Fixed Income and Cash 0% Statement (Quarterly Financial Report) for your 3.5% per year fund allocations Total 100% These projections estimate your long-term annual return will be about 8% per year. Social Security - If you were to continue working and were to retire at age 65, your monthly Social Security benefit is estimated to be $1,172, based on your estimated Social Security contributions. This assumes that the current law remains in effect unchanged until your retirement. Under the current law, unreduced benefits are payable if you retire at age 66. Salary Increases - Salary assumptions used in projecting the increases in benefits shown on the graph are based on an increase of 3% per year, beginning in 2006. _ Inflation - These projections assume inflation will be NTb per year. This is consistent with historical levels. GERP BENEFITS Age 65 Retirement Benefit - Your monthly benefit at age 65 is estimated to be $1,000, which you would receive for the rest of your life. This benefit estimate assumes your pay remains the same as the annual amount shown on page 1 for the rest of your working career and that you choose a benefit payable for your life only. Earned Benefits Based on Current Vesting Status - You have earned an approximate monthly benefit of $500 based on 100% vesting for 12.66 years of employment as of December 31, 2004. This amount is calculated using pay you received and your years of credited service. It is the benefit you could receive at age 65 if you were to leave City employment now and elect a benefit payable for your life only. However, you can not receive less than your minimum monthly benefit of $750 as of une WOPSA January, 2005 SOURCES OF RETIREMENT INCOME Social Security - The current Social Security system allows you to begin receiving reduced benefits at age 62. Social Security benefits are adjusted annually for changes in cost of living. For an estimate of your Social Security benefit using your personal earnings history (which may include other previous employment contributions), you can call the Social Security Administration at 1-800-772-1213 or visit their website at www.m.gov to request a statement. Employer -Provided Benefits - A. The General Employees' Retirement Plan provides unreduced retirement benefits at normal retirement age of 65. This is based on a formula using years of Credited Service x 1.5% x Final Average Monthly Compensation (the 60 consecutive calendar months out of the last 10 years of your eligible employment with the City that produced the highest average). Reduced retirement benefits may begin as early as age 55. Optional forms of payment and benefits for a spouse or beneficiary will reduce the amount of payment. B. The 457 Deferred Compensation Plan offers you the ability to save and invest income on a pre- tax basis. This means that you do not pay federal or state taxes on any contributions to this plan until the money is withdrawn at a later date. You may voluntarily contribute to the 457 Deferred Compensation Plan. If you are not participating in the 401(a) Money Purchase Plan, you may be eligible for a matching contribution to the 457 DCP of up to 3% from the City. The maximum deferral to a 457 Deferred Compensation Plan is either 100% of includible compensation or $14,000 (effective January 1, 2005) per year, whichever is less. Plan benefits are based on the total amount of money in your account at retirement. C. The 401(a) Money Purchase Plan also offers you the ability to save and invest income on a pre- tax basis. If you participate in the 401(a) Money Purchase Plan, both your contribution and the City's contribution are a fixed percentage of your salary. This cannot be changed. Plan benefits are based on the total amount of money in your account at retirement. Other - You may have other sources of retirement income, such as an Individual Retirement Account, personal savings or investments, and/or benefits payable by a prior employer. These other sources are not included in this Personal Retirement Planning Statement projection. Note: this statement does not take into account any Domestic Relations Order. Questions? Call Human Resources at (970) 221-6562 The projected benefits shown on this statement are only estimates and are not guarantees. You may want to consult your personal financial advisor regarding these projections. If there is any inconsistency between this statement and the Plans, the Plan documents will govern. Page 3 WOPSA January, 2005 PLANNING YOUR ICMA RETIREMENT CORPORATION (RC) INVESTMENT STRATEGY The ICMA-Retirement Corporation offers a broad range of funds specifically designed for public sector 401(a) money purchase and 457 deferred compensation plans. Most investment professionals agree that allocating your assets among several funds provides you with greater diversity, enhanced stability, and improved long-term returns. For more complete information on these funds, see the ICMA Retirenent Corporation's Retirement Investment Guides available from the Human Resources Department. For more information on your ICMA RC fund, call 1-800-669-7400. or visit the ICMA RC vvcb site at www.icmarc.orQ. Fund Name Degree of Market Risk* Morningstar Rating Equity Funds Equity Income Moderate * 4 Growth & Income Average Growth Above average Aggressive Opportunities Significant N/A International Significant 500 Stock Index Moderate �► Broad Market Index Moderate to above average Mid/Small Company Index Significant * tt Overseas Equity Index Significant * it Lord Abbett Large Company Value Moderate American Century Value Moderate _ Calvert Social Investment Moderate to above average Fidelity Contrafund Moderate to above average Moderate to above average Fidelity Magellan Gabelli Value _ Moderate to above average Moderate to above average * * k t * # MFS Large Company Growth American Century Ultra Significant T. Rowe Price Small Cap Stock Above Average * tk T, Rowe Price Small Cap Value Above Average Invesco Small Company Growth Significant * * f Balanced Funds Asset Allocation Moderate Fidelity Puritan Moderate Low N/A Low to moderate; subject to changes in interest rates Fixed Income Funds Money Market U.S. Government Securities Core Bond Index Moderate; subject to changes in interest rates Pimco Total Return Moderate; subject to changes in interest rates Pimco High Yield Above Average Cash Funds PLUS Low; principal backed by companies issuing contracts N/A • ICMA uses historical asset class volatility to determine degree of market risk; and within each asset class the 3-year standard deviation is used to develop a risk order. After the risk order is calculated, based on asset class and standard deviation, the descriptive historical volatility words are slotted into the ranking system: Low, Moderate, Average, Above Average, and Significant. Note that volatility changes over time. Page d WOPSA January, 2005 PROFESSIONAL SERVICES AGREEMENT WORK ORDER TYPE 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 "Professional". WITNESSETH: hereinafter referred to as 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 any project Work Orders for , issued by the City. A blank sample of a work order is attached hereto as Exhibit "A", consisting of (_) page and is incorporated herein by this reference. 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. [Option 11 This Agreement shall commence , and shall continue in full force and effect until , 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 (_) additional one year periods. Renewals and pricing WOPSA January, 2005 changes shall be negotiated by and agreed to by both parties. The Denver Boulder Greeley CPIU published by the Colorado State Planning and Budget Office will be used as a guide. Written notice of renewal shall be provided to the Service Provider and mailed no later than ninety (90) days prior to contract end. 4. Contract Period. This Agreement shall commence and shall continue in full force and effect until , 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 (_) 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 shall be provided to the Service Provider and mailed no later than ninety (90) days prior to contract end. 5. Early Termination bV 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: Professional: City: 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. WOPSA January, 2005 6. Design, Protect 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 designs, plans, reports, specifications, and drawings 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 attorney's fees arising directly or indirectly out of the Professional's negligent performance of any of the services furnished under this Agreement. The Professional shall maintain commercial general liability insurance in the amount of $ combined single limits and errors and omissions insurance in the amount of 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 (_) page(s), 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 the Work Order and upon approval of the Professional's direct reimbursable expenses. Final 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. 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 WOPSA January, 2005 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. Project Drawings. Upon conclusion of the project and before final payment, the Professional shall provide the City with reproducible drawings of the project containing accurate information on the project as constructed. Drawings shall be of archival, prepared on stable mylar base material using a non -fading process to provide for long storage and high quality reproduction. "CD" disc of the as -built drawings shall also be submitted to the owner in and AutoCAD version no older then the established city standard. 10. Monthly Report. Commencing thirty (30) days after Notice to Proceed is given on any Work Order and every thirty days thereafter, Professional is required to provide the City Representative with a written report of the status of the work with respect to the Work Order, 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. 11. 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. 12. 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. 13. 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 WOPSA January, 2005 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. 14. 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 . 15. Remedies. In the event a party has been declared in default, such defaulting party shall be allowed a period of ten (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. 16. 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. 17. 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. 18. Special Provisions. 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. WOPSA January, 2005 THE CITY OF FORT COLLINS, COLORADO M James B. O'Neill II, CPPO, FNIGP Director of Purchasing & Risk Management Date: ATTEST: City Clerk APPROVED AS TO FORM: Assistant City Attorney [Insert Professional's name] or [Insert Partnership Name] or [Insert individual's name] Doing business as [insert name of business] go Title: CORPORATE PRESIDENT OR VICE PRESIDENT Date: ATTEST: Corporate Secretary WOPSA January, 2005 (Corporate Seal) EXHIBIT "A" WORK ORDER FORM PURSUANT TO AN AGREEMENT BETWEEN THE CITY OF FORT COLLINS AND DATED: Work Order Number: Purchase Order Number: Project Title: Commencement Date: Completion Date: Maximum Fee: (time and reimbursable direct costs): Project Description: Scope of Services: Acceptance 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. Professional By: User The attached forms consisting of (_) pages are hereby accepted and incorporated herein, by this reference, and Notice to Proceed is hereby given. City of Fort Collins By: James B. O'Neill II, CPPO, FNIGP Director of Purchasing and Risk Management (over $30,000.00) Date: Date: 7. The City normally calculates benefit options for retirees. However, the actuary must have 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. 8. The actuary will be expected to be completely familiar with the Plan documents. If needed, the actuary will assist the Committee in drafting changes to the Plan documents. 9. 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. 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. 10. The Committee and support staff may have questions of the actuary that need to be answered on a timely (same day, within hours) basis. B. City Responsibilities 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 b. General Employees' Retirement Plan Actuarial Valuation Report c. General Employees' Retirement Summary Plan Description d. Minutes of meetings of the GERC e. Payroll and other employee information as needed 2. The City will not reimburse responding firms for any expenses incurred in preparing proposals in response to this request. 3. Proposals submitted will be reviewed by an evaluation committee consisting of representatives from the Committee, Plan support staff, and the Purchasing Division. 4. 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, 2005. It is expected that a contract will be executed between both parties by June 15, 2005. C. Proposal Requirements 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. A "not to exceed" cost estimate of the Actuarial Reports and an approximate time frame to complete it after information is provided to you by January 31, 2006. Note: The Committee needs a draft report by March 31, 2006 and a final report by May 15, 2006. 5. If possible, an "not to exceed" estimate of the cost of the Personal Retirement Planning Statements should be provided. Note: Statements must be distributed to Plan Participants by March 31. 6. Costs should also be provided for attendance of meetings and hourly rates for special projects. 7. A sample actuarial report that your firm has completed within the last year covering similar services to those requested in this proposal. D. 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. 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. Possess the ability to discuss, in laymen's terms, actuarial theory, basis for assumptions, and other actuarial matters. E. Term of Engagement The original term of this agreement shall be from July 1, 2005 to May 31, 2006. 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. F. Contact Persons The consultant's principal contact with the City will be the 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 Milliman USA as actuary and consultant for its General Employees' Retirement Plan (GERP). A copy of the actuarial report prepared by Milliman USA for the plan year beginning January 1, 2005 is available upon request. G. Proposal Calendar The following is a list of key dates up to and including the date oral interviews are conducted: Request for proposal issued April 11, 2005 Due date for proposals May 3, 2005 Ratings completed; short list developed May 16, 2005 Interviews; selection of top firm May 23, 2005 Contract date July 1, 2005 Selected firm meeting with the Committee July 7, 2005 H. 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. 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 processional services. 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. 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? 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? 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) If Professional administered a construction contract, was the project functional upon completion and did it operate properly? Were problems corrected quickly and effectively? WOPSA January, 2005 EXHIBIT "A" PERSONAL RETIREMENT PLANNING STATEMENT Prepared espedally for. Sample Using data as of.- December 31, 2004 Social Security Number: 5555 Date of Birth: January 01, 1943 Date of Hire: January 01, 1990 Adjusted Credited Service Date: January 01, 1990 Normal Retirement Date: January 01, 2008 Annual Pay Rate as of 12/3112004: $35,000 Note: These statements are prepared only for members remaining in the GERP after January 1, 2005. Retirement projections are based on the pay rate shown above. PURPOSE ICMA RC Contributions As of 12/31/2004 12/31/2004 City Employee Balance 457 Deferred Compensation Plan 0.0% 1.8% $15,000 401(a) Money Purchase Plan 3.0% 3.0% 20.000 Total 3.0% 4.9% $35,000 This Personal Retirement Planning Statement from the General Employees' Retirement Committee and the Human Resources Department provides you with a projection of your personal retirement income through your employment with the City of Fort Collins. This projected income is compared to the estimated income you will need at retirement. In some cases, your projected income may be inadequate at the age you would like to retire, so steps to reduce any shortfall are suggested. YOUR PROJECTED RETIREMENT INCOME In order to maintain your standard of living, some financial experts estimate that you will need retirement income equal to about 80% of your annual income just prior to your retirement, depending upon your individual circumstances. Here is your projected retirement jncome based upon your participation in the General Employees' Retirement Plan (GERP), Social Security, the 457 Deferred Compensation Plan (457 DCP), and/or the 401(a) Money Purchase Plan (401(a) MPP), compared to the 80% target: 200% a t00% LL O e 0% 55 60 62 65 70 Projected Income Retirement Age Available NIA N/A 59% 80% 116% Shortfall N/A NIA 21 % 0%r. 0% �401(s) MPP and 457 0CP Social Security- Gt3P" —a0%Target No Social Security is shown for ages 55 and 60 because age 62 is the earliest a benefit is payable. *+ The GERP benefit is calculated based on the employee's life only. Optional forms of payment with benefits for a spouse or beneficiary will reduce the amount of the payment. The increases in GERP benefits are due to increases in the number of _scars of service with the City. Sample. Location Code 1004 WOPSA January, 2005 IF YOU HAVE A SHORTFALL If you have a shortfall at the age you would like to retire, you may choose to contact a financial planner. You may want to take the actions listed below to reduce a projected shortfall. Contact Human Resources for information about #1 and #2. t. Increase your contribution to the 457 Deferred Compensation Plan or your personal savings. 2. Reallocate yout investments in the 457 Deferred Compensation Plan, the 401(a) Money Purchase Plan, and/or personal savings (see page 4 for ICMA RC fund comparison). 3. Retire at a later age or work part-time after retirement. ASSUMPTIONS USED FOR PROJECTED FIGURES ON GRAPH Return on Investments -The assurned annual return on the assets you have invested in the City of Fort Collins 457 Deferred Compensation and the 401(a) Money Purchase Plans is based on the following data: Allocation of Your Current ii historical Type of Investment Contributions Returris Equities t00% Refer to your ICMA RC 8.5% per year Fixed Income; and Cash OfO Statement (Quarterly Financial Report) for your 3.5% per year fund allocations Total 100% These projections estimate your long-term annual retum will be. about 8%a per year. Social Security - If you were to continue working and were to retire at age 65, your monthly Social Security benefit is estimated to be $1,172, based on your estimated Social Security contributions. This assumes that the current law remains in effect unchanged until your retirement. tinder the current law, unreduced benefits are payable if you retire at age 66. Salary Increases - Salary assumptions used in projecting the increases in benefits shown on the graph are based on an increase of 3% per year, beginning in 2006, Inflation - These projections assume inflation will be X% per year. This is consistent with historical levels GERP BENEFITS Age 65 Retirement Benefit - Your monthly benefit at age 65 is estimated to be. $1,000, which you would receive for the rest of your life. This benefit estimate assumes your pay remains the same as the annual amount shown an page 1 for the rest of your working career and that you choose a benefit payable for your life only. Earned Benefits Based on Current Vesting Status - You have earned an approximate monthly benefit of $500 based on 100% vesting for 12.66 years of employment as of December 31, 2004. This amount is calculated using pay you received and your years of credited service. It is the benefit you could receive at age 65 if you were to leave City employment now and elect a benefit parable for your life only. oweve,r, you can not WOPSA January, 2005 than your minimum monthly benefit of as rYl�r~ � wa•--���_