HomeMy WebLinkAboutR-90-0852J-90-9b3
10/25/90
RESOLUTION NO. 90-- 852
A RESOLUTION, WITH ATTACHMENT, AUTHORIZING
THE CITY MANAGER TO EXECUTE A PROFESSIONAL
SERVICES AGREEMENT, IN SUBSTANTIALLY THE
ATTACHED FORM, WITH THE CERTIFIED PUBLIC
ACCOUNTANT FIRM OF COOPERS AND LYBRAND FOR
ACTUARIAL SERVICES TO THE CITY'S SELF-
INSURANCE AND INSURANCE TRUST FUND FOR THE
1990-1991 FISCAL YEAR; ALLOCATING FUNDS
THEREFOR IN AN AMOUNT NOT TO EXCEED $12,500
FROM DEPARTMENT OF PERSONNEL MANAGEMENT, RISK
MANAGEMENT DIVISION.
WHEREAS, the City of Miami needs actuarial services for the
Self -Insurance
and
Insurance
Trust
Fund; and
WHEREAS,
said
services
will
allow the City's insurance
program to operate and function in a manner similar to a
commercial insurance pursuant to City Code Sectiion 18-103;
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 Service Agreement, in substantial the attached
form, with the certified public accountant firm of Coopers and
Lybrand for actuarial services to the City's Self -Insurance and
Insurance Trust Fund for the 1990-1991 fiscal year at a cost not
to exceed $12,500, with funds therefore hereby allocated the
Department of Personnel Management, Risk Management Division
Operating Budget for Fiscal Year 1990-91, Account No. 2700401-
270.
AT fl A�HMENTJ
CONTAINED
CITY CO SSION
_, MEETING OF
NOV 8 1990
90-- 852
SIN M.
Secti on 3 . Thi s Resolution shal 1 become effective
immediately upon its adoption.
PASSED AND ADOPTED this 8th d of
1990.
ATTEST:"'"
XAV1LK L. J
!' MAT
RATTT—�HIRAI, CITY CLERK
FINANCIAL REVIEW AND APPROVAL:
�QCtA"
qARGIA, DIRECTOR
FINANCE DEPARTMENT
BUDGETARY RF,39EW AND APPROVAL:
� X,
MAROHAR S.S-dR,8 DIRECTOR
BUDGET DEPARTME;.
PREPARED AND APPROV BY:
ASSISTANT CITY ATTORNEY
APPROVED AS TO FORM AND CORRECTNESS:
C TY AV. FffERr-NDEZ
TTORNE
)er ,
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s
V
PROFESSIONAL SERVICES AGREEMENT
This Agreement is 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
Coopers and Lybrand, Certified Public Accountants, Actuarial
Benefits and Compensation, hereinafter referred to as
"CONSULTANTS".
R E C I T A L S
WHEREAS, the City of Miami Commission on ,
1990, adopted Resolution allo . authorizing the City
Manager to execute a Professional Services Agreement, in
substantially the form attached, with the certified public
accountant firm of Coopers and Lybrand for actuarial services to
the City's Self -Insurance and Insurance Trust Fund for the 1990-
1991 fiscal year; allocating funds therefor in an amount not to
exceed $12,500 from the Department of Personnel Management, Risk
Management Division operating budget for FY 1990-91, Account No.
270401-270.
WHEREAS, the resolution became effective immediately upon
its adoption.
1 WHEREAS, the City of Miami needs actuarial services for the
Self -Insurance and Insurance Trust Fund; and
WHEREAS, said services will allow the City's insurance
program to operate and function in a manner similar to a
commercial insurance company as per City Code Section 18-103;
I. TERM
The term of this Agreement shall commence upon execution of
same, and shall terminate upon completion of CONSULTANT'S
responsibilities as outlined below in Section II, entitled "SCOPE
OF SERVICE".
90-- 852
II. SCOPE OF SERVICES
The CONSULTANT shall evaluate the experience of the CITY'S
self-insurance program and provide an indication of needed IBNR
reserves. The self-insurance coverages to be reviewed shall
i ncl ude:
General Liability
Public Officials Liability
• Police Professional Liability
• Automobile Liability
• Parks and Recreation Facilities Liability
• Workers' Compensation
. Other Related Work
The CONSULTANT shall prepare a report relying on claim
tabulations, exposures and other information provided by the Risk
Management Division of the City. The following data provided by
the City shall receive reasonable consistent and routine audit or
verification:
The description of loss and exposure information separated
into data required for the Workers' Compensation portion of the
study and data needed for the liability coverages. Data provided
net and gross of recoveries/recoverables for each coverage for
fiscal year prior to 1980 combined, and fiscal year 1980 through
1990, individually. All evaluation dates as of September 30,
1990.
Workers' Compensation - Loss and Expense Data
Paid Loss - Separately for medical and
indemnity
• Paid allocated loss adjustment expense (ALAE)
• Incurred losses (paid + case reserves) -
separately for medical indemnity
• Incurred ALAE
• Reported claim counts
Closed claim counts (closed with payment (CWP)
and closed without payment (CWOP) on a separate
basis)
The number and amount of losses paid and
reserved by accident period associated with
heart claims
All claims, open or closed, with indemnity over
$100,000
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Workers' Compensation - Exposure Data
Total payroll separated by occupation classification
for fiscal year 1990.
Liability Coverages - Loss and Expense Data
• Paid losses - separated by coverage component
(e.g. general liability, general liability -
special events, policy professional liability -
off duty, police professional liability -on duty,
parks liability, public officials liability on -
duty, public of official off -duty, automobile
liability).
. Subrogation recoveries
. Paid ALAE (allocated loss adjustment expense)
. Incurred losses - (paid + case reserves)
. Incurred ALAE
• Reported claim counts
Closed claikm counts (separately for CWP and
CWOP)
All claims, open or closed with a loss amount
over $100,000
Liability Coverages - Exposure Data
Number of automobiles operated by the City
during fiscal year 1990. To the extent data is
available separate police automobiles from all
others.
Total City Expenditures for fiscal year 1990
III. CITY REQUIREMENTS
The City is required to provide to the CONSULTANT all data
detailed in Section II immediately upon execution of this
Agreement.
IV. COMPENSATION
A. The CITY shall pay the CONSULTANT, as maximum
compensation for the services performed, a fee not to exceed
$12,500. This fee includes an initial planning meeting to
discuss items for consideration during the study and any special
data requirements that may be required to explore changes which
may be impacting the self-insurance program. The above fee
estimate does include the cost of a final meeting and one
90- 852
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V lip
additional meeting that may be requested at the conclusion of
this study.
V. COMPLIANCE WITH FEDERAL, STATE AND LOCAL NEWS
Both parties shall comply with all applicable laws,
ordinances and codes of federal, state and local governments.
VI. GENERAL CONDITIONS
A. All notices or other communications which shall or my
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 or.time.
B. The compensation shall be paid on the following
basis:The CONSULTANT shall bill the CITY upon conclusion and
presentation of the actuarial study to the CITY.
C. City shall have the right to review and audit the
related records of the CONSULTANT pertaining to any payments by
the CITY.
CITY OF MIAMI CONSULTANT
Risk Management Division Coopers and Lybrand
Olympia Building 1100 Campanie Bldg.
174 E. Flagler Street, 7th Floor 1155 Peachtree Street
Miami, Florida 33131 Atlanta, Georgia 30309-3630
a
VII. OWNERSHIP OF DOCUMENTS
All documents developed by CONSULTANT under this Agreement
shall be delivered to CITY by CONSULTANT upon completion of the
services required pursuant to Section II hereof and shall become
the property of CITY, without restriction or limitation on their
use. CONSULTANT agrees that any and 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 (1987).
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'1'i V
It is further understood by and between the parties that any
documents which are given by CITY to CONSULTANT pursuant to this
Agreement shall at all times remain the property of the CITY and
shall not be used by CONSULTANT for any other purpose whatsoever
without the written consent of CITY.
YIII. NON-DELEGADILITY
The obligation undertaken by CONSULTANT pursuant to this
Agreement shall not be delegated or assigned to any other person
unless CITY shall first consent in writing to the performance or
assignment of such services or any part thereof by another person
or firm.
IX.,, AUDIT RIGHTS
CITY reserves the right to audit the records of CONSULTANT
pertaining to any billings to CITY for time or expenses at any
time during the performance of the Agreement and for a period of
one year after final payment is made under this Agreement.
X. AWARD OF AGREEMENT
CONSULTANT warrants that it has not employed or retained any
person employed by CITY to solicit or secure this Agreement and
that it has not offered to pay, paid, or agreed to pay any person
employed by CITY any fee, commission percentage, brokerage fee,
or gift of any kind contingent upon or resulting from the award
of this agreement.
XI. CONSTRUCTION OF AGREEMENT
This Agreement shall be construed and enforced according to
the laws of the State of Florida.
XII. SUCCESSORS AND ASSIGNS
This Agreement shall be binding upon the parties herein, their
hei rs, executors,
authorized assigns.
legal representatives,
successors, and
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XIII. INDEMNIFICATION
CONSULTANT shall indemnify and save CITY and its officials
harmless from and against any and all claims, liabilities,
losses, and causes of action, which may arise out of CONSULTANT's
performance under the provisions of the Agreement, including all
acts or omissions to act on the part of CONSULTANT, including any
person performing under this Agreement for or on CONSULTANT's
behalf, provided 'that any such claims, liabilities, losses and
causes of such action are attributable to the fault of
CONSULTANT, and, from and against any orders, judgments or
decrees which may be entered and which may result from
CONSULTANT's performance under this Agreement, and from and
against all costs, attorneys' fees, expenses and liabilities
incurred in the defense of any such claim, or the investigation
thereof.
XIY. CONFLICT OF INTEREST
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, in the work product of this
Agreement.
CONSULTANT further covenants that, in the performance of
this Agreement, no person having such conflicting interest shall
be employed. Any such interests on the part of CONSULTANT or its
employees must be disclosed in writing to CITY. CONSULTANT, in
the performance of this Agre..:ment, shall be subject to the more
restrictive law and/or guidelines regarding conflict of interest
promulgated by federal, state or local government.
CONSULTANT is aware of the conflict of interest laws of the
City of Miami (City of Miami Code Chapter 2, Article Y), Dade
County Florida (Dade County Code Section 2-11.1) and the State of
Florida, and agrees that it will fully comply in all respects
with the terms of said laws.
XV. INDEPENDENT CONTRACTOR
CONSULTANT and its employees, SUBCONSULTANTS, and agents
shall be deemed to be independent contractors, and not agents or
employees or the 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
employes; furthermore, its agents or employees shall not be
deemed entitled to the Florida Workers' Compensation benefits as
an employee of CITY.
k
XVI. TERMINATION OF AGREEMENT
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 its receipt of the 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 under the terms of this Agreement. If CONSULTANT is in
default, CITY shall in no way be obligated and shall not pay to
the CONSULTANT any further sum whatsoever and shall, upon
request, be reimbursed for any past payments.
It is further understood that should CONSULTANT fail to
perform any of the services under this Agreement, CITY agrees
that CONSULTANT's entire liability and CITY's sole and exclusive
remedy for claims in connection with or arising of the form of
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9, r
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action, shall be CITY's fees Linder this Agreement, which fees
were received by CONSULTANT.
XVII. NONDISCRIMINATION
CONSULTANT agrees that is shall not discriminate as to race,
sex, color, creed, age, national origin, or handicap, in
connection with its performance under this Agreement.
XVII-I. MINORITY PROCUREMENT COMPLIANCE
CONSULTANT acknowledges that it has been furnished a copy of
Ordinance No. 10062 as amended by Ordinance No. 10583, the
Minority and Women Business Affairs and Procurement Ordinance of
the City of Miami, and agrees to comply with all applicable
substantive and procedural provisions therein, including any
amendments thereto.
XIX. CONTINGENCY CLAUSE
Funding for this Agreement is contingent on the availability
of funds and is subject to amendment or termination due to lack
of funds, or authorization, reduction of funds, and/or change in
regulations.
XX. DEFAULT PROVISION
In the event that 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 and upon written notice to CONSULTANT,
may cancel and terminate this Agreement, an 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 provided CONSULTANT was given
written notice of such default and the opportunity to cure the
same, but failed to do so.
90- 852
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XXI. ENTIRE AGREEMENT
This instrument and its attachments constitute the sole and
only Agreement of the parties hereto relating to said services
and correctly set for 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 this
Agreement are of no force or effect.
XXII. AMENDMENTS
No amendments to this Agreement shall be binding on either
party unless in writing and signed by both parties.
91
IN WITNESS WHEREOF, the parties hereto have caused this
instrument to be executed by the respective officials thereunto
duly authorized, this day and year first above written.
ATTEST:
CITY CLERK
WITNESS:
APPROVED AS TO INSURANCE
REQUIREMENTS:
INSURA�-CO��TUR�P-
CITY OF MIA14I a municipal
corporation of the State
of Florida:
By:
V %- jr%%% 11 • Vv►V
C3�"AN7p,
( \ /1
B y : A,
J JA nADKA 7
RECTOR
RISK MANAGEMENT
CONSULTANT:
Coopers and Lybrand
PARTNER
EXECUTE INSTRUMENTS ON
BEHALF OF THE FIRM
APPROVED AS TO LEGAL FORM
AND CORRECTNESS:
— LRIARML2'
4TY . - bf�
J
NEY
-9- 90-- 852
Pi
11
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
CA-8
TO Honorable Mayor and Members of DATE October 29, 1990 FILE
the City Commission
SUBJECT : Resolution for
Professional Services
Agreement: Actuarial
FROM REFERENCES: Services to the City's
Cesar Odio Self -Insurance and
City Manage ENCLOSURES: Insurance Trust Fund
(Committee Meeting of
Recommendation:
11/8/90)
It is respectfully recommended that the City Commission adopt the
attached resolution authorizing the City Manager to enter into a
professional services agreement in an amount not to exceed
$12,500.00, a copy of which is incorporated herein, with the
certified public accountant firm of Coopers and Lybrand for
actuarial services to the Self -Insurance and Insurance Trust Fund
for the fiscal year ending September 30, 1990. The recommended
service review is an intricate part of the City's insurance
program that operates and functions in a manner similar to a
commercial insurance company pursuant to City Code Section 18-
103. The Consultant' s expertise i n the speci al ized area of
certified public accounting and actuarial services will aid the
City's Self -Insurance and Insurance Committee as well as the
Self -Insurance Trustees to evaluate the experience of the Self -
Insurance Program and provide an indication of needed fund
reserves at September 30, 1990. It is imperative that the City
proceed with this agreement in order to ensure the timely
operational procedures pursuant City Code Section 18-103.
Background:
The Department of Personnel Management, Risk Management Division
operating under the same procedures and guidelines as the
previously known Law Department, Claims Division has investigated
the utilization of an actuary to ascertain that the City's
financial interest is fully protected with the appropriate
reserves recommendation for payments of claims and judgments
against the City involving the acts of officers or employees of
the City or property belonging to the City and cost of operating
the fund.
Four other firms besides the one recommended have been contracted
and reviewed for the actuarial service. Two minority firms were
included amount the above. All firms declined indicated the need
for "extra" time to become familiar with the City's operations
and systems. All firms declined also indicated the need to input
all claim data dating back to 1980 into the computers for
9COAF 8 5 2
0
analysis. Hence i n an effort to mi nimi ze cost to the Ci ty i n
repeating work which has already been analyzed and approved, and
to minimize time of performance by the consultant and cost. The
firm which has in previous years shown a reasonably effective
actuarial report has been recommended for the term of one
actuarial review.
As per the consultant's the actuarial study will be completed by
December 31, 1990.
SRP/drg
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90-
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