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RESOLUTION NO. 87-234
A RESOLUTION AUTHORIZING THE CITY MANAGER TO
NEGOTIATE AND EXECUTE A PROFESSIONAL SERVICES
AGREEMENT, IN SUBSTANTIALLY THE FORM ATTACHED
HERETO, WITH THE FIRM OF EDWARD H. FRIEND & CO.,
A DIVISION OF JOHNSON & HIGGINS OF WASHINGTON,
D.C., INC., FOR EXPERT ACTUARIAL ASSISTANCE IN
PENSION MATTERS AT A COST NOT TO EXCEED $48,000
WITH FUNDS THEREFOR ALLOCATED FROM SPECIAL
PROGRAMS AND ACCOUNTS.
WHEREAS, 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, Edward H. Friend & Co., is an expert 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 City Manager is hereby authorized to
negotiate and execute a professional services agreement, in
substantially the form attached hereto, with the firm of Edward H.
Friend & Co., a Division of Johnson & Higgins of Washington, D.C.,
INC., for expert actuarial assistance in pension matters at a cost
not to exceed $48,000, with funds therefor allocated from Special
Programs and Accounts,
PASSED AND ADOPTED this 13th day of March , 1987.
XAVIER L. SUA Z, MAYOR
ATT
MATEY HIRAI, CITY CLERK
APPRO ED BY:
ROBERT F. CLARK
CHIEF DEPUTY CITY ATTORNEY
APPROVED IX7170 FORM
AND CO TNESS:
BUDGET REVIEW:
Abo
MANOHAR NA, DIRECTOR
MANAGEMENT UDGET DEPT.
FINANCE REVIEW:
LUCIA A. DOUGHERTY GAkOS E. GARCIACITY ATTORNEY ��#W7
� j; 'ODE ARTMENT OF FI A41.CQ�
AWED
- - MAR 1
40 0
CITY OF MIAMI. FLORIDA
INTER -OFFICE MEMORANDUM
TO. Honorable Mayor and Members
of the City Commission
FROM
Cesar H. Odio
City Manager
Recommen dati on :
DATE: MAR 5 1987 FILE:
SUBJECT: Resolution Authorizing
City Manager to Negotiate
Professional Services
Agreement With Edward H.
REFERENCES: Friend & Company
ENCLOSURES: Agenda Item for 3/13/87
It is respectfully recommended that the City Commission adopt the
attached resolution authorizing the City Manager to execute and
negotiate a professional services contract with Edward H. Friend
& Company, a Division of Johnson & Higgins, of Washington, D. C. ,
Inc., for pension actuarial services and other related matters.
Background:
The Finance Department recommends extending the current contract
with Edward H. Friend & Company, for pension actuarial services,
related to the preparation of the Annual Pension Valuation
Report, as required by the State of Florida. In addition, this
firm has assisted the City in other related pension matters such
as the preparation of cost information for labor negotiation. At
this time the firm is also engaged in solving a difference with
the Pension Boards' actuaries as to the interest assumption used
to compute the annual City contribution to the pension funds.
It is necessary at this time to enter into a new contract with
the firm extending their services through fiscal year 1987, at a
cost not to exceed $48,000.
Appropriated funds are available under Special Programs and
Accounts for this purpose.
cc: Law Department
0
87-234
G
PROFESSIONAL SERVICES AGREEMENT
This Agreement entered into this day of 19879
by and between the City of Miami; a municipal corporation of Dade
County, Florida, hereinafter referred to as "CITY" and Edward H.
Friend & Company, a Division of Johnson & Higgins of Washington,
D. C., Inc., hereinafter referred to as "CONSULTANT".
WITNESSETH:
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:
TERM
The term of this Agreement shall be from October 1, 1986
through September 30, 1987.
II. '
SCOPE OF SERVICES
t The CONSULTANT will provide the following professional
! services as part of this Agreement:
(1) Prepare annual supplementary reports for both City
pension plans.
(2) Analyze and explain to the City Administration and the
City Commission actuarial requirements as proposed by
both pension plans.
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877234
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(3) Assist the City Administration in complying with the
requirements of Florida's Public Employees' Retirement
Benefits Act.
(4) Keep City Administration informed on Federal and State
laws affecting pension plans.
(6) Other pension related activities and additional work as
required by the City Manager.
COMPENSATION
(A) The CITY shall pay the CONSULTANT, as compensation for the
i
services required pursuant to Paragraph 2 hereof, a fee not
to exceed Forty -Eight Thousand Dollars ($48,000), 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, 1986 - September 30, 1987
i
Chief actuary $ 252.00
Senior consultants/actuaries 40.00 - 200.00
Consul tan is/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 account; 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.
(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 an d 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
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 -
Eight Thousand Dollars ($4$,000,) and that any party may
immediately and at any time terminate this Agreement when
the costs hereinabove 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
payment by the CITY.
IV.
COMPLIANCE WITH FEDERAL, STATE, AND LOCAL LAWS:
Both parties shall comply with all applicable laws, ordin-
ances, and codes of Federal, State, and Local Government.
87-234
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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 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
City of Miami
3500 Pan American Drive
Miami, Florida 33133
CONSULTANT
Edward H. Friend & Company,
A Division of Johnson & Higgins
of Washington, D. C., Inc.
1800 K. Street, N. W.
Suite 500
Washington, D. C. 20006
8. 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 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
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G
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. '
VI.
OWNERSHIP OF DOCUMENTS:
All documents developed by 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
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
g to the performance or assignment of such service or
,rt thereof by another person or firm.
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877234
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.
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; judgments; 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
interests, 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:
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 required
pursuant to paragraph II hereof without penalty to CITY.
r
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.
XVI.
NONDISCIRMINATION:
CONSULTANT agrees that it shall not discriminate as to race,
sex, color, creed, or national origin or handicap in connec-
tion with his/her performance under this Agreement.
XVII.
MINORITY PROCUREMENT COMPLIANCE
CONSULTANT acknowledges that he/she has been furnished a
copy of Ordinance No. 9115, 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
I
funds, or authorization, reduction of funds, and/or change
in regulations.
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XIX.
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, 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 this Agreement are of no force or 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 caused this
instrument to be executed by the respective officials thereunto
duly authorized,, this the day and year first above written.
CITY OF MIAMI, a municipal
ATTEST: corporation of the State of
Florida
MATTY HIRAI, CITY CLERK
ATTEST:
By: CESAR H. ODIO, CITY MANAGER
CONSULTANT: EDWARD H. FRIEND
AND CO., A DIVISION OF JOHNSON
HIGGINS, OF WASHINGTON, D. C.
By:
19
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87-234
APPROVED BY: BUDGET REVIEW:
ROBERT F. CLARK MANOHAR S. SURANA, DIRECTOR
CHIEF DEPUTY CITY ATTORNEY MANAGEMENT & BUDGET DEPT. -
APPROVED AS TO FORM FINANCE REVIEW:
AND CORRECTNESS:
LUCIA A. DOUGHERTY, CARLOS E. GARCIA, DIRECTOR
CITY ATTORNEY DEPARTMENT OF FINANCE
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4
CITY OF MIAMI. FLORIOA
INTER -OFFICE MEMORANDUM
TO. Honorable Mayor and Members DATE: MAR 51987 FILE:
of the City Commission
SUBJECT: Resolution Authorizing
City Manager to Negotiate
Professional Services
FROM REFERENCES: Agreement With Edward H .
Cesar H. Odio Friend & Company
City Manager ENCLOSURES: Agenda Item for 3/13 /87
Recommen dati on :
It is respectfully recommended that the City Commission adopt the
attached resolution authorizing the City Manager to execute and
negotiate a professional services contract with Edward H. Friend
& Company, a Division of Johnson & Higgins, of Washington, D. C.,
Inc., for pension actuarial services and other related matters.
Background:
The Finance Department recommends extending the current contract
with Edward H. Friend & Company, for pension actuarial services,
related to the preparation of the Ann ual Pen si on Val uati on
Report, as required by the State of Florida. In addition, this
firm has assisted the City in other related pension matters such
as the preparation of cost information for labor negotiation. At
this time the firm is also engaged in solving a difference with
the Pension Boards' actuaries as to the interest assumption used
to compute the annual City contribution to the pension funds.
It is necessary at this time to enter into a new contract with
the firm extending their services through fiscal year 1987, at a
cost not to exceed $48,000.
Appropriated funds are available under Special Programs and
Accounts for this purpose.
cc: Law Department
87-234