HomeMy WebLinkAboutR-95-0789J-95-959
11/7/95
RESOLUTION NO. 9 5 ` 789
A RESOLUTION, WITH ATTACHMENT(S), AUTHORIZING
THE CITY MANAGER TO EXECUTE AN AGREEMENT, IN
SUBSTANTIALLY THE ATTACHED FORM, WITH THE
FIRM OF A. FOSTER HIGGINS & CO., INC., TO
PROVIDE EXPERT ACTUARIAL ASSISTANCE FOR THE
PERIOD OF OCTOBER 1, 1995 THROUGH
SEPTEMBER 30, 1996; ALLOCATING FUNDS
THEREFOR, IN AN AMOUNT NOT TO EXCEED
$50,000.00, FROM THE PENSION ADMINISTRATION
TRUST FUND FOR SAID SERVICES.
WHEREAS, the City of Miami is concerned about the fiscal
stability of its municipal operation; and
WHEREAS, State laws require annual actuarial evaluation
reports; and
WHEREAS, the City must contribute on an actuarial basis to
the pension plans for its employees; and
WHEREAS, the firm of A. Foster Higgins & Co., Inc. is
extremely knowledgeable about the City's retirement programs,
their history and communications with the Pension Boards;
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.
'ATTACHMUNT (S)
1 CONTAINED
CITY CODOTISSION
MEETUM OF
Acsoluticn No.
95- 789
Section 2. The City Manager is hereby authorized to
execute an agreement, in substantially the attached form, with
the firm of A. Foster Higgins & Co., Inc. to provide expert
actuarial. assistance for the period of October 1, 1995 through
September 30, 1.996, with funds therefor., in an amount not to
exceed $50,000.00, hereby allocated from the Pension
Administration Trust Fund for said services.
9Section 3. This Resolution shall become effective
immediately upon its adoption.
PASSED AND ADOPTED this 16th day of November 1995.
1; to
_ e
ST HEN P. CLA , MAYOR
ATTEST:
WALTER J. O MAN
CITY CLERK
FINANCIAL AND BUDGETARY REVIEW:
MANOHAR S.SURANA
ASSISTANT CITY MAMA
APPROVED AS TO FORM AND CORRECTNESS:
A. QUZ JO ES, III
CITY AT O EY
BSS:W427
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CITY OF MIAM1, FLORIDA
INTER -OFFICE MEMORANDUM
TO : The Honorable Mayor and DATE November 2. 1995 FILE
Members of the City Commission
SUBJECT A. FOSTER HIGGINS
& CO., INC.
Cesar 1 )
FROM : City REFERENCES.
ENCLOSURES
RECOMMENDATION
It is respectfully recommended that a resolution be passed authorizing the City Manager
to execute a Professional Services Agreement, in substantially the attached form, with the
firm A. Foster Higgins & Co., Inc., for expert actuarial assistance at the cost not to
exceed $50,000, for the period of October 1, 1995 through September 30, 1996 allocating
funds therefor from the Pension Administration Trust Fund.
BACKGROUND
The City of Miami, which contributes on an actuarial basis to the pension plan for its
employees, is concerned about the fiscal stability of its municipal operation. Also, state
laws require annual actuarial evaluation reports. The firm A. Foster Higgins & Co., Inc.,
previously contracted by the City of Miami to perform these services, is extremely
knowledgeable about the city's retirement programs, their history and communications
with the Pension Board.
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Professional Services Agreement
This Agreement entered into this day of �, 1995, by and between the
City of Miami, a municipal corporation of the State of Florida, hereinafter referred to as
"City" and A. Foster Higgins & Co., Inc. hereinafter referred to as "Consultant."
{
Recital
Whereas, the City of Miami, Florida requires professional services, in the nature of
actuarial consulting; and
Whereas, the Consultant has expressed a desire to perform the required actuarial services
for the City; and
Now, Therefore, in consideration of the promises and the mutual covenants and
obligations herein contained, and subject to the terms and conditions hereinafter stated,
the parties hereto understand and agree to follow
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Term
The term of this Agreement shall be from October 1, 1995 through September 30, 1996.
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Scope of Service
The Consultant may provide the following professional services as part of this
Agreement, as needed:
1. Assist the City Administration in the preparation of policies related to the City's
pension plans and retirement related expenses.
2. Present and explain pension policies to the City Commission.
3. Prepare special actuarial reports for both City pension plans.
4. Analyze and explain to the City Administration and the City Commission
actuarial requirements as proposed by both pension plans.
5. Prepare funding alternatives for the City's pension plans and other post retirement
benefits.
6. Assist the City Administration in complying with the requirements of Florida's
Public Employee's Retirement Benefit Act.
7. X.-eep City Administration informed on Federal and State laws affecting pension
plans and other post retirement benefits.
8. Provide expert testimony in litigation's related to pension matters including, but
not limited to, methodology and soundness of pension systems.
9. Other actuarial -related activities and additional work as required by the City
Manager.
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Compensation
A. The City shall pay the Consultant, as compensation for the services required
pursuant to Section II hereof, a fee not to exceed Fifty Thousand Dollars
($50,000), to be calculated and billed upon a time -and -expense basis based on the
Consultant's standard hourly rate schedules and expenses basis based on the
Consultant's standard hourly rate schedules and expense charges which, at this
date, are approximately as follows:
1. Professional fees - hourly rates
October 1, 1.995-September 30, 1996
Chief Actuary $ 280
Senior Consultant/Actuary/Attorney $150-230
Consultants/Actuary $115-160
Computer Systems Manager $100-155
Junior Consultant/Actuary $ 90-120
Actuarial Associates/
Senior Administrative Staff $ 45- 80
Secretary/Clerical $ 30- 40
2. The Consultants may subcontract to a Minority Employer up to 10% of the
contract maximum fee, when appropriate, based on the assignments received by
the Consultant. The Consultant will submit to the City, the name and
qualifications of any subcontractor for the City's review and approval, prior to
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the award of any assignment in accordance with Section VII of this contract. The
Consultant's discretion will be based on the value and cost savings such
subeontractin-R «gill provide as part of the Consultant's sen ices to the City.
3. Computer expense charges - 150% of costs is charged directly to the client
accounts; of which the 50% margin covers unassigned overhead costs associated
with computer processing; efforts relating to generalized sub -routine development
and analysis, training, tenninal, maintenance, record keeping, auditing of invoice
charges, management, etc.
4. Additional expense costs not included in professional fees (other than computer
charges) - 100% of the cost for travel is charged directly to the client account
without additional margin.
B. Such fee shall be paid upon submission by the Consultant of monthly billings;
such monthly billings shall be paid within fifteen (15) days of submission by the
Consultant. The City shall have the right to review and audit the time records and
related records of the Consultant pertaining to any such billings.
C. Notwithstanding the above rates or the time and cost involved, the Consultant
shall be reimbursed for attending meetings in Miami at a cost not to exceed Six
Hundred and fifty (S650) for any one meeting.
D. The Consultant and the City hereby agree that the maximum amount payable
under this contract shall not exceed fifty thousand dollars ($50,000), and that any
party may immediately and at any time terminate this Agreement when the costs
hereinabove reaches fifty thousand dollars.
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E. City shall have the right to review and audit the time records and related records
of Consultant pertaining to any payment by the City.
IV
Compliance With Federal, State, and Local Laws
Both parties shall comply with all applicable laws, ordinances, and codes of Federal,
State, and local Government.
V
General Condition
A. All notices or other communications which shall or may be given pursuant to this
Agreement shall be in writing and shall be delivered by personal service, or by
registered mail, addressed to the other party at the address indicated herein or as
the same may be changed from time to time. Such notice shall be deemed given
on the day after being posted or the date of actual receipt, whichever is earlier:
City of Miami Consultant
City of Miami A. Foster Higgins, & Co., Inc.
3500 Pan American. Drive One Lafayette Center
Miami, Florida 33133 1120 20th Street, NW, Suite 800
Washington, DC 20036
i3. 'Title and Paragraph headings are for convenient reference and are not part of this
Agreement.
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C. In the event of conflict between terns of this Agreement and any terms or
conditions contained in any attached documents, the terns in i.lus Agreement shall
rule.
No waiver or breach of any provision of this Agreement shall constitute a waiver
of any subsequent breach of the same or any other provision hereof, and no waiver
shall be effective unless made in writing.
1✓. Should any provision, paragraph, sentences, words or phrases contained in this
Agreement be determined by a court of competent jurisdiction to be invalid,
illegal, or otherwise unenforceable wider the laws of the State of Florida or the
City of Miami, such provisions, paragraphs, sentences, words, or phrases shall be
deemed modified to the extent necessary in order to conform with such laws or, if
not modifiable to conform with such laws, then same shall be deemed severable
and, in either event, the remaining terms and provisions of this Agreement shall
remain unmodified and in fiill force and effect.
VI
Ownership of Documents
All documents developed by the Consultant wider this Agreement shall be delivered to
City by said Consultant upon completion of the services required pursuant to Section II
hereof and shall become the property of City, without restriction of limitation on its use.
Consultant agrees that all documents maintained and generated pursuant to this
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contractual relationship between City and Consultant shall be subject to all provisions of
the Public Records Law, Chapter 119, Florida Statutes.
It is further understood by and between the parties that any information, writing, to the
performance or assignment of such service or any part thereof by another person or firm.
Vin
Audit .Rights
City reserves the right to audit the records of Consultant pertaining to this agreement at
any time during its' performance of this Agreement and for a period of three (3) years
after final payment is made under this Agreement.
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Award of Agreement
Consultant warrants that he/she has not employed or retained any person employed by the
City of solicit or secure this Agreement and that he/sloe has not olfered to pay, paid, or
agreed to pay any person employed by the City any fee, commission percentage,
brokerage fee, or gift of any kind contingent upon or resulting from the award of this
Agreement.
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Construction of Agreement
This Agreement shall be construed and enforced according to the laws of the State of
Florida.
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Successors and Assigns
This Agreement shall be binding upon the parties herein, their heirs, executors, legal
representatives, successors, and assigns.
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Indemnification
Consultant shall indemnify and save City harmless from and against any and all claims,
liabilities, losses, and causes of action which may arise out of Consultant's activities
under this Agreement, including all other acts or omissions to act on the part of
Consultant, including any person acting for or on his/her behalf and, from and against any
orders, judgments, or decrees wluch may be entered from and against all costs, attorney's
fees, expenses and liabilities inctured in the defense of any such claims, or in the
investigation thereof,
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III
Conflict of Interest
A. Consultant covenants that no person tinder its employ who presently exercises
any functions or responsibilities in connection with this Agreement has any
personal financial interest, direct or indirect with City_ Consultant fitrther
covenants that, in performance of this Agreement, no person having such
conflicting interest shall be employed. Any such interest on the part of
Consultant or its employees must be disclosed in writing to City.
B. Consultant is aware of the conflict of interest laws of the City of Miami (City of
Miami Code Chapter 2, Article V), Dade County, Florida (Dade County Code
Section 2-11.1) and the State of Florida, and agrees that it shall fully comply in
all respects with the terms of said laws.
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Independent Contractor
Consultant and its employees and agents shall be deemed to be independent contractors,
and not agents or employees of City, and shall not attain any rights or benefits under the
Civil Service or Pension Ordinances of City, or any rights generally afforded classified or
unclassified employees; further he/she shall not be deemed entitled to the Florida
Worker's Compensation benefits as an employee of City.
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XV
Termination of Contract
City retains the right to terminate this Agreement at any time prior to the completion of
the services required pursuant to Section II hereof without penalty to City. In that event,
notice of termination of this Agreement shall be in writing to Consultant, who shall be
paid for those services performed prior to the date of his/her receipt of notice of
termination. In no case, however, will City pay Consultant an amount in excess of the
total sum provided by this Agreement.
It is hereby understood by and between City and Consultant that, any payment made in
accordance with this Section to Consultant, shall be made only if said Consultant is not in
default. If said Consultant is in default, then City shall in no way be obligated and shall
not pay to Consultant any swn whatsoever.
XVI
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Nondiscrimination
Consultant agrees that it shall not discriminate as to race, sex, color, religion, age, marital
status, or national origin or handicap in eomiection with his/her performance under this
Agreement.
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XVH
Minority Procurement Compliance
Consultant acknowledges that he/she has been furnished a copy of Ordinance No. 10062,
the Minority Procurement Ordinance of the City of Miami, and agrees to comply with all
applicable substantive and procedural provisions therein, including any amendments
thereto.
XVM
Contingency Clause
Funding for this Agreement is contingent on the availability of funds and continued
authorization for program activities and is subject to amendment or termination due to
lack of funds, authorization, reduction of funds, and/or change in regulations.
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Default Provision
in the event the Consultant shall fail to comply with each and every term and condition of
this agreement or fails to perform any of the terms and conditions contained herein then,
City, at its sole option, upon written notice to C`.nnsultant, may cancel and terminate this
Agreement and all payments, advances, or other compensation paid to Consultant by
City while Consultant was in default of the provisions herein contained, shall be
forthwith returned to City.
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Entire Agreement
This instrument and its attachments constitute the sole and only Agreement of the parties
hereto relating to said grant and correctly sets forth the rights, duties, and obligations of
each to the other as of its date. Any prior agreement, promises, negotiations, or
representations not expressly set forth in the Agreement are of no force of effect.
Xxi
Amendments
No amendments to this Agreement shall be binding on either party unless in writing and
signed by both parties.
In Witness Whereof, the parties hereto have cau,5ed this instrument to be executed by the
perspective officials thereunto duly authorized, this the day and year first above written.
City of Miami, a municipal
corporation of the State of
ATTEST: Florida
Walter Foeman, City Clerk
ATTEST:
Kenneth A. Kent, FCA, EA
Managing Consultant
By: Cesar H. Odio
City Manager
Consultant: A. Foster Higgins &
Co., Inc.
By: John N. Feldtmose
President
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APPROVED BV:
�vz-L it
Olga amirer.-Seij s
Assistant City Attorney
APPROVED AS TO FORM AND CORRECTNESS:
Frank K. Rollason, Deputy Fire Chief
Risk Management Department
APPROVED AS TO LEGAL FORM
AND CORRECTNESS:
A. Quinn Jones
City Attorney
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