HomeMy WebLinkAboutR-89-1033J-89-1059
11/6/89
RESOLUTION N0. 89�-1033
A RESOLUTION# WITH ATTACHMENT, AUTHORIZING
THE CITY MANAGER TO EXECUTE A PROFESSIONAL
SERVICES AGREEMENT, IN SUBSTANTIALLY THE
FORM ATTACHED HERETO, WITH THE FIRM OF A.
FOSTER HIGGINS & CO., INC., FOR EXPERT
ACTUARIAL ASSISTANCE IN PENSION MATTERS AT
A COST NOT TO EXCEED $409000 WITH FUNDS
THEREFOR ALLOCATED FROM SPECIAL PROGRAMS
AND ACCOUNTS.
WHEREASt the City of Miami is concerned about the fiscal
stability of it 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 for its employees; and
WHEREAS, the firm of A. Foster Higgins & Co., Inc. has
expertise in the area of pension and is extremely 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
execiite a professional services agreement;) in substantially the
form attached hereto, with the firm of A. Foster Higgins Co.,
Inc. for expert actuarial assistance in pension matters at a cost
not to exceed $40,0000 with funds therefor allocated from Special.
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Programs and Accounts,
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/ The herein authorization is further subject to
1.481:
aomP ca t a _ requirements that may be am -
posed by the City Attorney, including but not
col
Iftited to
those prescribed by applicable City
'
Charter
Code provisions.
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ATTACHMENTS
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PROFESSIONAL SERVICES AGREEMENT
This Agreement entered into this day of , 1989,
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 covenants and obligations herein contained, and subject to
the terms and conditions hereinafter stated, the parties hereto
understand and agree as follows:
I. —
TERM
The term of this Agreement shall be from October 1, 1989, {'
through September 30, 1990..i
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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 o
' policies related to the City's pension plans.
(2) Present and explain pension policies to the Ctty 4
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Commission.
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(3) Prepare special actuarial reports for both C.- y pen�'���
` plans •4 —
! Analyze and explain to the City As ainistratU�
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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 Employees' 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.
COMPENSATION
i
(A) The CITY shall pay the CONSULTANT, as compensation for the
services required pursuant to Paragraph 2 hereof, a fee not
to exceed Forty Thousand Dollars ($40,000), to be calculated
- and billed upon a time and expense basis based on the
' CONSULTANT'S standard hourly rate schedules and expense
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charges which, at this date, are approximately as follows:
(1)
Professional fees - hourly rates
October 1, 1989 - September 30, 1990
Chief actuary $
2 5 .002
,.._.,::.
Senior consultants/actuaries
140.00 - 200.00
Consultants/actuaries
106.00 - 13900
Junior Consultants/actuaries
71.00 - 10500
Actuarial associates/senior
Admiinistrative:staff
34.00--:`7000
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Computer systems manager
85--00 13509
Statisticians/Clerical.
22.00-`'33:00
(2)
'Computer expense charges -`150% of costs is
charged Olrecttiy
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to. theclient account; of which the 50% margin covers
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unassigned overhead costs associated
with a1up ter
processing; efforts relating to generalized
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development and analysis, training, terminal maintenance,
record keeping, auditing of invoice charges, management,
= etc.
(3) Additional expense costs not included in professional fees
(other than computer charges) - 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 Five Hundred &
Twenty Five Dollars ($525.00) for any one meeting. All
R expenses relating to travel shall be approved in advance by
the CITY. *§"
(D) The CONSULTANT and the CITY hereby agree that the maximum
amount payable under this contract shall not exceed Forty, w'
Thousand Dollars ($40v000)q and that any Party may
�immediately and at any time terminate this Agreement when:,:.
the costa here nabove reaches Forty -Eight Thousand Dollars.:: '
(E) City shall have the right to review and audit the time
' -
_' records and related records of CONSULTANT pertaining to any
r payment by the CITY,
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4.
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IV.
COMPLIANCE WITH FEDERAL, STATE, AND LOCAL LAWS:
Both parties shall comply with all applicable lawst
ordinances, and codes of Federal, State, and Local
Government.
V.
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GENERAL CONDITION:
A. All notices or other communications which shall or may be z_
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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 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., Inca
3500 Pan American Drive 125 Broad Street
Miami, Florida 33133 New York, New York 10004
B. Title and Paragraph headings are for convenient reference s
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
l unless made in writing.^
ff; E. Should any provision, paragraphs, sentences, words ...or
phrases contained in this Agreement be determined by'a o�urt k1rFt
of competent p jurisdiction to be invalid, illegal-
s= otherwise unenforceable under the laws of the StatecaF.�-
Florida or the Cityof Miami such rovie.ions -
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p paragraph$
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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
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in full force and effect.-
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VI.
OWNERSHIP OF DOCUMENTS:
}_
All documents developed by CONSULTANT under this Agreement
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shall be delivered to CITY by said CONSULTANT upon
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completion of the services required pursuant to paragraph II
hereof and shall become the property of CITY, without
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restriction or limitation on its use. CONSULTANT agrees
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that all documents maintained and generated pursuant to this
contractual relationship between CITY and CONSULTANT shall
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be subject to all provisions of the Public Records Law,
Chapter 119, Florida Statutes.
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_
It is further understood by and between the parties that any
—
information, writings, maps, contract documents, reports or
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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
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written consent of CITY.
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VII.
NONDELEGABILITY
That the obligations undertaken by CONSULTANT pursuant to
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this Agreement shall not be delegated or assigned to'any
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-jjother
person of firm unless CITY shall first consent.n
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writing to the performance or assignment of such serv:WW- r
any part thereof by another person of firm' -'
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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
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. '
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—� XII.
t INDEMNIFICATION:
F 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"
:°
udder this Agreement, includ.tng all other acts or
to act on: the pact of CONSULTANT, including any prsQn�
acting for or on big/her behalf, ,and, from and;agai.ne
ordera, Judgakento, or decrees which may be entered 440, f
40.11.., atainat all- : cosh, attorne ' 4 fees,
i iabi.. i+�a incurred in the defense of .4ny such, oil
tad eeten there-0
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XIII.
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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 interests 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.
XIV.
INDEPENDENT CONTRACTOR:
r.
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
Workers' -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 require'=
pursuant to paragraph II hereof without ,;penalty to CITY,.,.. In
that- event, notice of= termination of, thin Agreement
in writing to CONSULTANTCox-.,-,;
g .who shall be paid thps�e
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service$ : ,performed prior. to the date of h�e�her .receipt r c#'
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notoe of termination, ,. in- no .cave, ,..however, gill, CTTT F .Yl
CONSULTANT an amount �i�n exval of the {tgtal sum-
:this Agreement.:..
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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 its
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.
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 amendment or termination due to lack of ;.
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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 tQ
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perform any of the terms and conditions contained herein,k.
,. then CITY, at its sole option, upon written notice tQ
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CONSULTANT may cancel and terminate this Agreement, ,and alb'
payxenta_ , advances, or other compensation paid to COWLTANT
by CITY while CONSULTANT was in default of the pr>wles �
herein contained. shall be Forthwith returned =t4 CITY • t _ x��
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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.
XX I .
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 caused this
instrument to be executed by
the respective officials thereunto
duly authorized, this the day
and year first above written.
ATTEST:
CITY OF MIAMI, a municipal
_
corporation of the State of
Florida
MATTY HIRAI, CITY CLERK
By: CESAR H. ODIO,
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CITY MANAGER
ATTEST:
CONSULTANT: A. FOSTER_
HIGGINS & CO., INC.
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By;
CORPORATE SECRETARY
APPROVED BY:
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A. VICKY LEIVA
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ASSISTANT CITY ATTORNEY
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APPROVED AS TO FORM
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AND CORRECTNESS:
C, r
JORGE L FERNANOEZ
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CITY ATTORNEY
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CACITY OF MIAMI. FLORIDA _
INTER -OFFICE MEMORANDUM
Honorable Mayor and Members
To : of The City Commission °A FILE
NOV
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• SUBJECT: Resolution Authorizing
City Manager to
Negotiate Professional
Cesar H. Odio REFERENCES : Services Agreement
FROM: City Manager With A. Foster Higgins
ENCLOSURES : & Co., Inc. _
RECOMMENDATION:
_ 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 $409000.
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. time to execute an agreement .to cover
these services for fiscal- year 1989-90. Funds are appropriated
And available under Special Programs -and Accounts for this
purpose:
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Law ,Department
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