HomeMy WebLinkAboutR-98-0032J-98-71
1 /6/98
RESOLUTION NO. 9 32
A RESOLUTION AUTHORIZING THE CITY MANAGER TO
EXECUTE A PROFESSIONAL SERVICES AGREEMENT, IN A
FORM ACCEPTABLE TO THE CITY ATTORNEY, WITH
WILLIAM R. MERCER FOR THE PROVISION OF ACTUARIAL
SERVICES TO THE CITY FOR THE FISCAL YEAR 1997/1998,
IN THE AMOUNT OF $45,000; ALLOCATING FUNDS
THEREFOR FROM NON -DEPARTMENTAL ACCOUNTS, NO.
001000.921 122.6.930
WHEREAS, the City of Miami has need of actuarial services to make estimates of
the cost impact of any benefit changes resulting from negotiations; and
WHEREAS, William R. Mercer has provided these services to the City for several
years; and
WHEREAS, after providing these services, the costs of imputing the necessary data
has been previously paid; and
WHEREAS, these cost savings are reflected in the reduction in the maximum
contract price from $50,000 to $45,000;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF
MIAMI, FLORIDA:
Section 1. The recitals and findings contained in the Preamble to this Resolution
are hereby adopted by reference thereto and incorporated herein as if fully set forth in this
Section.
CITY COV13MI ION
MEETING OF
JAN 1 3 1998
Resolution I"
98- 32
Section 2. The City Manager is hereby authorized' to execute a Professional
Services Agreement, in a form acceptable to the City Attorney, with William R. Mercer for
the provision of actuarial services to the City for the Fiscal Year 1997/1998, in the amount
of $45,000, with funds therefor hereby allocated from Non -Departmental Accounts, No.
001000.921 122.6. 930.
Section 3. This Resolution shall become effective immediately upon its adoption.
PASSED AND ADOPTED this 13th day of January , 1998.
ATTEST:
WALT R J. OEMAN
CITY CL K
PREPARED AND APPROVED BY
RAFAEL 0. DIAZ
DEPUTY CITY ATT NEY
W2169:CSK
4,_
AVIER L. JSUAREZ, MAYOR
APPROVED AS TO FORM AND
CORRECTNESS:
A. a N J S, II
CITY ATTOAEY
' The herein authorization is further subject to compliance with all requirements that may be imposed by the
City Attorney, including but not limited to those prescribed by applicable City Charter and Code provisions.
2-
98- 32
SENT BY:CITY OF MIAMI 1- 7-88 ; 2:26PM ; MAYOR XAVIER SUAREZ' 4162075;# 1/-6
CITY OF MIAMI, FLORIDA CA=36
INTER -OFFICE MEMORANDUM
TO
Honorable Mayor and Members nATI : January 7, 1998 FILE
of the City Commission
FMOM : Jose Ciaaia-Prddrosa
City M&Ngcr
bUKlt�i l Prakask,wj gra v iwb
Agreement for Actuarial
Services
REFERENCF5
CNCW3URE3 .
It is rcc mmcnded tlmt (he City Commission adopt the resolution authorizing a
Prufcssional Service Ag=uwnt with William M. Mercer for the 1997198 Fiscal Year.
The firm of William M. Murder has provided actuarial services to the City of Miami in
conjunction with the annual valuations of the two pension systems and to assist the City
in coating PnPows reladn w ith VaLLmvu l,cue,:hls In nvgodadons tar we iast Uve years.
The firm has the information on our pension systwim in house and will not mquire any
data collection and irgmt time in order to respond to rcquests. The contract amount has
been $50,000 for the last five years and we are reeronuncuding that the contract maximwn
be established at $45,000 for this fiscal year.
- 32 1
OCT 031997
N
October 31, 1997
Ms. Sue Weller
Labor Relations Officer
Department of Labor Relations
City of Miami
444 Southwest Second Avenue, 7"' Floor
Miami, FL 33130
Re: 1997/1998 contract
Dear Sue:
LALPuA RELATIONS
Enclosed is the 1997/1998 fiscal year contract for consulting services to the City of
Miami. Below I've outlined what I anticipate are recurring services and some
nonrecurring services that might come up in the next year.
Recurring Work
During the next year we will again be reviewing the actuarial valuations for both
FIPO and GESE retirement programs. Our review of the valuations includes an
analysis of the reasonableness of the numbers, interview with the actuaries to
determine any significant changes and attendance at the board meetings when
results of the actuarial valuations are presented to the boards.
For the elected officers' plan we need to bring the valuations up to date and make
them comply with the State of Florida statutes. This will require finalizing some of
the plan interpretations and adjusting historic records based on those
interpretations. Specifically, issues relating to appropriate compensation must be
addressed.
Nonrecurring Work
I understand there may be contracts negotiated this year. We will be prepared to
assist the City in making financial estimates of the cost impact of benefit changes
for these negotiations. Depending on the importance and nature of the retirement
programs in negotiating those contracts, our services can extend from making
reasonable estimations based on valuation results to actually running study
valuations in order to provide the City with alternative financial cost impact.
William M. Mercer, Incorporated Phone 202 785 9080
One Lafayette Centre Fax 202 331 0486
1120 20th Street, NW
Suite 800
Washington, DC 2DO36
3
A Marsh & McLennan Company
WI LLIAM h
MERCER
Ms. Sue Weller
October 31, 1997
Page 2
This Year's Contract
In this year's contract I have changed some of the hourly rates to reflect cost -of -
living adjustments to salaries. I've also decreased the maximum contract amount
from $50,000 to $45,000. You should be aware that we have been at $50,000 for at
least five years running. However, last year our charges for the year were just
about half of the contract maximum. It is on this basis that I reduced the total
contract amount and still believe even with the negotiations that the charges should
stay within this maximum.
I have also included all of the changes that were made to the contract last year in
the hope that we can expedite getting this year's contract signed. If you have any
questions call me.
Sincerely,
Kenneth A. Kent, FSA, FCA
KAK:rk
MFCL7029.RK1
Enclosure
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