HomeMy WebLinkAboutR-90-08510
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J-90-964
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RESOLUTION NO.
90__ 951
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 IN PENSION MATTERS AT A COST NOT
TO EXCEED $25,000 WITH FUNDS THEREFOR
ALLOCATED FROM THE FY 190-91 PENSION
ADMINISTRATION TRUST FUND, ACCOUNT
NO. 440103-270, PROJECT NO. 681001.
WHEREAS, the City of Miami is concerned about the fiscal
stability of its municipal operation; and
WHEREAS, State laws require annual actuarial valuation
reports; and
WHEREAS, the City of Miami must make contributions on an
actuarial basis to the pension plans of its employees; and
WHEREAS, the firm of A. Foster Higgins & Co., Inc. has
expertise in the area of pension and is extr•_nely knowledgeable
about the City's pension program;
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.
Section 2. The City Manager is hereby authorized to
execute a professional services agreement,/ in substantially the
attached form, with the firm of A. Foster Higgins & Co., Inc.,
for expert actuarial assistance in pension matters at a cost not
to exceed $25,000, with funds therefor being hereby allocated
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.
FR�� CSTTTA H
co �^��I�-IE-
CITY COD.'MSSION
MEETING OF
N 0 V 8 1990
UT,� - ski 1
from the FY '90-91 Pension Administration Trust Fund, Account No.
440103-270, Project No. 681001.
Section 3. This Resolution shall become effective
immediately upon its adoption.
PASSED AND ADOPTED this 8th day of November , 1990.
t
XAVIER L. S AREZ, YOR
ATTES .
MAT HIRAI
CITY CLERK
BUDGETARY REVIEW:
MANOHAR lS/ j/ANA, DIRECTOR
DEPARTMENT W)F/ BUDGET
FINANCIAL R7VIEW:
Gin, c.`Z
CARLOS . GARCIA, DIRECTOR
DEPARTMENT OF FINANCE
APPROVED AS TO FORM AND CORRECTNESS:
JO E L. NANDEZ
CITY ATTOR EY
bss:M1817
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PROFESSIONAL SERVICES AGREEMENT
This Agreement entered into this — day of
1990, 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
WHEREAS, the City Commission authorized the City Manager to
negotiate and execute a professional service agreement by
Resolution No. .
NOW, THEREFORE, in consideration of the promises and the
mutual convenants and obligations herein contained, and subject
to the terms and conditions hereinafter stated, the parties
hereto understand and agree to follows:
TERM
The term of this Agreement shall be from October 1, 1990
through September 30, 1991.
II.
SCOPE OF SERVICE
The CONSULTANT i«ay 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.
(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 requireinents as proposed by
WHEN RETURNING FOR FUNTI R
both pension plans. REVIEW, PLLXA IDENTIFY AS
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(5) Prepare funding alternatives for the City's pension
plans.
(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.
(8) Provide expert testimony in litigations related to
pension matters, including but not limited to
methodology and soundness of pension systems.
(9) Other pension related activities and additional work as
required by the City Manager.
III.
COMPENSATION
(A) The CITY shall pay the CONSULTANT, as compensation for the
services required pursuant to Paragraph 2 hereof, a fee not
to exceed Twenty Five Thousand Dollars ($25,000), 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, 1990 - September 30, 1991
Chief actuary $ 252.00
Senior consultants/actuaries 140.00 - 200.00
Consultants/actuaries 106.00 - 139.00
Junior consultants/actuaries 71.00 - 105.00
Actuarial associates/senior
administrative staff 34.00 - 70.00
Computer systems manager 85.00 - 135.00
Statisticians/clerical 22.00 - 33.00
(2) 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,
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record keeping, auditing of invoice charges, management,
etc.
(3) Additional expense costs not included in professional fees
(other than computer charger) - 100% of the cost for the
items listed below are charged directly to the client
account without additional margin.
(a) copying/printing
(b) postage
(c) telephone
(d) delivery
(e) travel
(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 rive hundred &
Twenty Five Dollars ($525.00) for any one meeting. All
expenses relating to travel shall be approved in advance by
the CITY.
(D) The CONSULTANT and the CITY hereby agree that the maximuri
amount payable under this contract shall not exceed twenty
five thousand dollars ($25,000), and that any party may
immediately and at any time terminate this Agreement when
the costs hereinabove reaches twenty five thousand dollars.
(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.
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V.
GENERAL CONDITION%
A. All notices or other cormnunications 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 fro►n time to time.
Such notice shall be deemed given on the day on which
personally served; or, if by mail, on the fifth 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 1800 K Street, N. W., Suite 500
Miami, Florida 33133 Washington, D.C. 20006
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 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 inade 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.
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VI.
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 paragraph 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 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
-11 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
That 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.
AUDIT RIGHTS
CITY reserves the right to audit the records of CONSULTANT
at any time during the performance of this Agreement and for
a period of one year after final payment is made under this
Agreement.
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
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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 ASSIGN
This Agreement shall be binding upon the parties herein,
their heirs, executors, legal representatives, successors,
and assigns.
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 and from
and against all costs, attorney's fees, expenses and
liabilities incurred in the defense of any such claims, or
in the investigation thereof.
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 the 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.
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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.
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 paragraph 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
r
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..
XVI.
NONDISCRIMINATION
CONSULTANT agrees that it shall not discriminate as to race,
sex, color, creed, or national origin or handicap in
connection with his/her performance under this Agreement.
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XVII.
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 amendinent or termination due to lack of
funds, or authorization, reduction of funds, and/or change
in regulations.
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 agreements,
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.
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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:
MATTY HIRAI, CITY CLERK _ __
ATTEST:
CORPORATE SECRETARY
APPROVED BY:
HUMBERTO HERNANDEZ
ASSISTANT CITY ATTORNEY
CITY OF MIAMI, a municipal
corporation of the State of
Florida
BY —CESAR H. ODIO,
CITY MANAGER
CONSULTANT: A FOSTER HIGGINS &
CO., INC.
BY:
APPROVED AS TO FORM AND CORRECTNESS:
SEGUNDO R. PEREZ
INSURANCE COORDINATOR
APPROVED AS TO LEGAL FORM
AND CORRECTNESS:
JORGE L. FERNANDEZ
CITY ATTORNEY
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90- 851
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO :
Honorable Mayor and Members
of The City Commission
e"
FROM A?se�z_
Cesar H. Odio
City Manager
RECOMMENDATION:
CA-7
13c; C�i 22., 3 -,
DATE : �flE 24
OCT 3 01990
SUBJECT :
Resolution Authorizing
City Manager to
Negotiate Professional
REFERENCES
tervices Agreement
with A. Foster Higgins
ENCLOSURES,
& CO. Inc.
It is respectfully recommended that the City Commission adopt the
attached resolution authorizing the City Manager to execute a
professional services agreement with A. Foster Higgins & Co.,
Inc., for expert actuarial assistance in pension matters at a
cost not to exceed $25,000.
BACKGROUND:
The Finance Department recommends executing an agreement with A.
Foster Higgins & Co., Inc., for professional services, related to
pension issues, such as the review of the Annual Pension
Valuation Reports presented to the City by the Independent
Retirement Board, the preparation of cost information for labor
negotiations, and other related pension matters.
It is necessary at this
these services for fiscal
and available in account
Administration Trust Fund.
time to execute an agreement to cover
year 1990-91. Funds are appropriated
440103-270, project 681001, Pension
90-- 851
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