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HomeMy WebLinkAboutR-94-0675J-94-753 9/12/94 RESOLUTION NO. 94— 675 A RESOLUTION, WITH ATTACHMENT(S), AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT, IN SUBSTANTIALLY THE ATTACHED FORM, WITH THE FIRM OF A. FOSTER HIGGINS & CO., INC., FOR EXPERT ACTUARIAL ASSISTANCE AT A COST NOT TO EXCEED $50,000, FOR THE PERIOD OF OCTOBER 1, 1994 THROUGH SEPTEMBER 30, 1993; ALLOCATING FUNDS THEREFOR FROM THE PENSION ADMINISTRATION TRUST FUND. 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 oommunioations 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 referenoe thereto and incorporated herein as if fully set forth in this Section. ATTA CKIft►2.NT(5) �rsI111�2 CITY COMMISSION MEETING OF S E P 2 2 1,994 Resolution No. 94— 675 Section 2. The City Manager is hereby authorized to execute a professional services agreement, in substantially the attached form, with A. Foster Higgins & Co., Inc., for expert actuarial assistance at a cost not to exceed $50,000, for the period October 1, 1994 through September 30, 1995, with funds therefor hereby allocated from the Pension Administration Trust Fund. Section 3. This Resolution shall become effective immediately upon its adoption. PASSED AND ADOPTED this 22nd day of September 1994. STEPHEN P. C ARK, MAYOR CITY CLERK BUDGETARY REVIEW: MANOHAR S. S ASSISTANT CI PREPARED AND APPROVED BY: 4u lljltrn� �11&v'-4 OLG RAMIREZ-SE A ASS TANT CITY XTTMNEY CSK:M4610 4 APPROVED AS TO FORM AND CORRECTNESS: -2- 94- 675 W Professional Services Agreement This Agreement entered into this day of , 1994, by and between the City of Miami, a municipal corporation of the State of Florida, hereinafter referred to as "City" and A. 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 follows: I Term The term of this Agreement shall be from October 1, 1994 through September 30, 1995. WHEN RETURNING FOR FURTHER 1 REVIEW, PLEASE IDENTIFY AS 675 II 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 Benefits Act. 7. Keep City Administration informed on Federal and State laws affecting pension plans and other post retirement benefits. 8. Provide expert testimony in litigations 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. 2 94- 675 III Compensation A. The City shall pay the Consultant, as compensation for the services required pursuant to Section 11 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 expense charges which, at this date, are approximately as follows: 1. Professional fees - hourly rates October 1, 1994 - September 30, 1995 Chief Actuary $ 280 Senior Consultant/Actuary/Attorney $150 - 230 Consultants/Actuary $115 - 150 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, name and qualifications of any subcontractor for review and approval, prior to the award of any assignment in accordance with Section VII of this contract. The Consultant's discretion will be 3 94- 675 W based on the value and cost savings such subcontracting will provide as part of the Consultant's services 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, terminal 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 ($600) 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. 4 94- 675 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 City of Miami 3500 Pan American Drive Miami, FL 33133 Consultant A. Foster Higgins & Co., Inc. One Lafayette Center 1120 20th Street, NW, Suite 800 Washington, DC 20036 5 94- 675 1 B. Title and Paragraph headings are for convenient reference and are not part of this Agreement. C. In the event of conflict between terms of this Agreement and any terms or conditions contained in any attached documents, the terms in this Agreement shall rule. D. No waiver oi-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. E. Should any provision, paragraphs, sentences, words or phrases contained in this Agreement be determined by a court of competent jurisdiction to be invalid, illegal, or otherwise unenforceable under 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 full force and effect. iT Ownership of Documents All documents developed by the Consultant under 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 or limitation on its use. Consultant agrees that all documents maintained and generated pursuant to this contractual relationship between City 94- 675 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, writings, maps, contract documents, reports, or any other matter whatsoever which is given by City to Consultant pursuant to this Agreement shall, at all times, remain the property of City and shall not be used by Consultant for any other purposes whatsoever without the written consent of City. VII Nondelegability The obligations undertaken by Consultant pursuant to this Agreement shall not be delegated or assigned to any other person or firm unless City shall first consent, in writing, to the performance or assignment of such service or any part thereof by another person or firm. VIII Audit Rights City reserves the right to audit the records of Consultant pertaining to this agreement at any qW2. (3) time during its' performance of this Agreement and for a period of 9vK yeaijafter final payment is made under this Agreement. 7 94- 675 IX Award of Agreement Consultant warrants that he/she has not employed or retained any person employed by the City to solicit or secure this Agreement and that he/she has not offered 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. X Construction of Agreement This Agreement shall be construed and enforced according to the laws of the State of Florida. XI Successors and Assigns This Agreement shall be binding upon the parties herein, their heirs, executors, legal representatives, successors, and assigns. 8 94-- 675 a XII 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, judgements, or decrees which may be entered from and against all costs, attorney's fees, expenses and liabilities incurred in the defense of any such claims, or in the investigation thereof. XIII Conflict of Interest A. Consultant covenants that no person under 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 further 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. 9 94- 675 XIV 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. 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 sum whatsoever. 10 94- 675 XVI Nondiscrimination d-dr— � Consultant agrees that it shall not discriminate as to race, sex, color, cr national origin or handicap 'in connection with his/her performance under this Agreement. EALVWi 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. XVIII 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. 11 94- 675 XIX 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 Consultant, 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. XX 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. 12 94- 675 -IF Amendments No amendments to this Agreement shall be binding on either party unless in writing and signed by both patties. 13 94- 675 In Witness Whereof, the parties hereto have caused this instrument to be executed by the respective officials thereunto duly authorized, this the day and year first above written. ATTEST: RattyCity ClerlE ATTEST: V'4 9pift APPROVED BY: OLGA RAMIREZ-SEWAS Assistant City Attorney City of Miaml, a municipal corporation of the State of Florida BY: Cesar H. Odio, City Manager Consultant: A. Foster Higgins & Co., Inc. y: Kenneth A. Kent Managing Consultant APPROVED AS TO FORM AND CORRECTNESS: FRANK K. ROLLASON t Risk Management Department APPROVED AS TO LEGAL FORM AND CORRECTNESS: QuinnA. Jones City Attorney SM0481 i.RKN 14 94- 675 CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUA TO ; The Honorable Mayor and Members DATE : August 23, 1994 FILE of the City Commission SUBJECT : Annual Actuarial Services - A. Foster R Higgins & Co., Inc. FROM : REFERENCES: des dio city agar ENCLOSURES: ' RECOMMENDATION It is respectfully recommended that the City Commission authorize by resolution the City Manager to enter into a professional services agreement in substantially the form attached hereto with A. Foster Higgins & Co., Inc. for FY'95 in the amount of $50,000. BACKGROUND For many years, the actuarial firm of A. Foster Higgins & Co., Inc., has performed expert pension -related actuarial services for the City of Miami. A. Foster Higgins & Co., Inc. is extremely knowledgeable with respect to the City's pension programs, administration, history and communications with the pension boards. The effective performance of annual actuarial services and the accurate projection of the City's contributions to the pension trusts is of considerable importance since the City's contributions to the two pension trusts will exceed $22 million in FY'95. Funding for actuarial services is available from the Pension Administration Trust Fund. 94- 6'75 e,�0 f7