HomeMy WebLinkAboutC2005-444 - 7/26/2005 - NAACTUARIAL SERVICES AGREEMENT
I'his Agreement for secu~-~ professional actuarial servicm is eumut imo by and
between the City of Corpus Christi (~ity"), a home role city under the laws of the Stare of
Texas. and Mercer Ri~k, Finnnee & h-mmmce Con~ultin.q ("Con~ltant~. Thi= ~
ix-comes effective upon signing by the Director of Human Resources c~ her designee.
Thc City seek~ the services of Conmlmm to perform aa actuarial ..~ly~ of the City'~
scl f-insummm acfivitie~ within the employee benefits fund: ~
The Consultant will pre'pare and isme a written report which doeumcm~
rc~om melxt~tiorm:
In consideration of lhe stated mutual eovemmt~ ~ and eomicka~
parties ~xee ~ follow~:
l~iq- 1, Co~tra_~ Admiuh1~tor
The City's conlxacl, ac[rn~d~nr ("Contre~ Administmlor") for thi. Agrcmncnt is th~ Di~ctor
or' Hum-- Rmources, Cynthia Garda, or her de, ghee. The Conm~ Admlnief~or i~ re~onaible
for all phases of the CID", performance and opemfiom under thi, Agreemm~, h~clucling
am. hori~ationa for paymcm. All nofice~ or commtmieatiom l'.~ardin~o thi. Agr~lxle~ ~ be
directed to the Contrnct Admini~'ator ~ to Section 18, below.
HEALTH BENEFITS
Thc ('onsulmm shall provide professional actuarial services for the Health ~ Program_
The actuarial analysis will be a cost projection for the City's four self-fumled ~ plans
(('itica~, Cificarc Basic, Citicmr-Fir~, Public Safer/ Citicare and Retirees for each plan)
covering the projected risc. al years 8/01/05 to 07/31/06, 8/1/06 to 7/31/07, 8/1/07 to 7/31/08.
Additionally, ~n update of ~ia projecfiorm slmll be peffo,~ocd ~ on Jmxum'y 31, 2006, a.*.
The annly~iz will include nctive employees, vefireez nnd COBRA p~'dci~. The .n. ly~ will
al~o inclucl~, the following:
1 Project eom to the current eotm'ibutions and funding rate~ to determine their likely
ad~luacy throughout the forlheomin~ fiscal years for all four pl.n,;
2 R~:ommemt~l plan design clumge~:
3 Proposed p~l~.m ~ for pm'ticipmat~ both active and retiree;
4 Cnmments aborn currem indus,' practices dong with ~m:qxiste recommemel=~'iona for
~mprovmnenIs in the City's plan design s~uctute:
2OO5-444
Mererr Rftk. Finance & Insurtace
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Evaluation of each plan comparing projected cost to project~ revenu~ including arty
contributions to re~rves;
6
Review of stop-loss insurance coverage to de~.nim if retemion levels for specific stop-lo~s
and ~lt~7.lm~ent point for asgr~gnte stop-loss ar~ reasonable based on i.,-h,.tt-y standm'ds;
Affirm GASB Stmement Number 10 compliance. Provi~ n st~am~ll: ~ffarming the
conclusions in the acm.wy study ar~ com~istem with GASB Statement Number 10.
The Coraullmat shall perform services requital he,in and i~ovicie
recommendations in a draft report within f~ (14) calendar daD mf~r (1) authorization of
thc City U, commence, unless an ~xtc'nsion is gnmmd in writi%o by the City;, ~d, (2) upon
acknowledged r~ceip~ by Consultant of complete and ~fi~£actory ~ chi& Th~ draft t'~,port
shall be consist~m with GASB Smu,~nent No.10. The conclusiona and recommend~cms shah be
clear, concise nnd easily ~ by non-nctundes. The report shnll imlude charts, graphs and
other docum~on sull]cient to sttpport all comlusions and re~c~mendatiom. Th~ consultant
slutil be a~ailable, at th~ City's convenience, for discussion or l~e~ntions x~gm'ding the dm~
report's conclusions and r~x>mmendations after submis~on of the ~ r~xtrt. Based on any
no tater thnn twemy-one ~21) day~ after attthorization by the City to ~me~'e, unless an
ext~sion is grouted in writir~ by the CID'.
A tom1 price for ~.-rvice~ performed as r~luired in Sections 1, 2, nnd 3 will not ~ceed Twmty
four Thounnnd Seven H~mir~l FHly Doilm~ ($24~750.lN}). The Consulla~ will submit an
invoice to th~ City which itemizes the services performed. Within thirty (30) days of the City's
accepmme of the draft rr'port, the City will pay th~ Conzultam fifty pca'c~t (.~4Di) of the f~e.
Within thirty (30) day~ of the City's ac__oepmnce of the final report, the City will pay the
C'onsullanl the lesser of the remaining flay percent (50%) of the fee, or the balance of the
amoum due on the itemized statements.
This ~ ¢omm~ll~..~ upon ~tl:tion by ~ ~ of Human ~ or
desili~ee ~d continue~ for a period of twelve (12) months.
~ 6, Tm"-~n-~ of Am~ot
The City may, ,rt any time, with or without catty, t~wmlnnte fi'ds Agmem~t immorllnt~ly upon
writtcm nolice to th~ Consultant. Upon tm'minntion of this Agreemenl, sll ~ or ~mfird-h~d
docmnen~ dins, studies, or rq~orts pr~'pm~ by tim Consultnm, stth~ option of the City, will be
delivered to the City nmi become the property of the City.
Pa~ 2 of 6
~.el,~- 7. ~ ,nd ~notoDrintln-.
All parties r~,o?i~e ~ the contino~io~ of any Agr~',ment n_f~r July 31, the close of az~y fiscal
year of the City, will be subject to app~optintions nad budl~"t sppmvnl pmvialn~ f~r covering
such Ag~ement ns nn expemiitu~ in the budget. The City shall no~ be obli~ to perform
un~-r this Agra-merit ff the City Council declines to spprop6-t~ fumis sulk'lent m pay
Consultnat. Simihtrty, in Ii'mt evem Cons~tnm shall have no oblil~tion to contizme pen'fotmance
under th~s ~tgr~ement.
The Consultnnt will not n~?: transfer, or deleg,,~ nny of its oblignfion~ or clut~ under
Agrcemem To nny other person without the prior wr~ten consem of the City. The ~ of
this Agreement by Con~ulUmt i~ the es~oce of thi~ Agr~nent nad CiPy's rl.oh~ to with~ld
omsent u~ such n~?mem will be witl~in the sole discrc-tion of the City.
Sectbon 9. ]adg~d~nt Comtrac~r
agent, serving, or employee of~e Consultnnt be con~der~ an employee ofth~ City. Any agcnt,
servant and employee of the Consulmm nssii~d to perform service~ under this A~Gtt ,hnll
bc competem, cnpeble, qualified and duly licensed under the lnws of the St,,~ of Texas to
per~rm their service~.
S,,~nn 10. ~ub~mtrK~rs
C'tn~utm may use subco~mictors in connection with the work performed ~ this
Agl'~'l~ellL ~ tt~ill~ ~ub{x)lTlI~-'tor~, howe'veT, Con~u~nnt must obtnin written nl~mval ~um
the C~. In using subeommctors, Coztsultnnt ~ to be r~alx)nn'ble f~r aU their scm and
omission~ to the same extent as if the subcontractor nad its employees w~re employees of the
('onsultnm. All r~q~ents set forth ns pm't of Ihis Agreement will be appli~ble m nil
subcom~'nctors nmi their employees to the same extent ns if the Consultnnt and its emp~ had
~ ~nor~He !
('onsuitnm ~ to sbi~ ~ all Fedcml and TOY,, lnw, includi~ those htw~ r~la~d to Equal
(.~q~o~,nlxy ~Kl to Persons will] Disabilities.
'['he place of perfonnnnce under fl~i, Agra-mere will be in Corpus Christi, ~ County,
'l exas. Venue for any legnl ~'tion will be to the nppropfint~ Court in the ~ of Texns.
Pn~ 3 of 6
Consultant and the City each repreaent that the individual aigoin~ on ita behalf hH the pow~ and
auuhorit) w enm' into ~ Age-mem. and ~ this Agn~nent con~tin~'~ a valid taxi binding
obligation of each party.
~oa 13. Walv~
No wxiver of any breach ofaay term, or condition of the Agreement, will be construed m waive
an) subaequ~nt b~'~aeh of the mme.
Cormultam further a_on~, in eompliame with City of Corpm ChH~ Ordinanee No. 17112, to
complete, aa part of thia Ag, r~ement, the D~lo~u~ of lntm'mt form provide! to Cormflta~ A
c~py of the Di~cloaur~ of Intelsat is attached H Exhibit 1.
C,.~l~!mnt qhnll proGm~ ~ mKiatai~ ~ ~ C~ l'~qu.il~l ~ thin forth in the ma~ched F_,xhib~t 2.
Stt'tkm 16, Ind~n~
CONSULTANT Slt~l.l. FULLY INDEMNIFY, SAVE, AND HOLD HAR_MLg,~S THE
CITY AND THF. CITY'S OFFICERS, EMPLOYEES, IaRPR.ESENTATIVES, AND
AGENTS AGAINST ANY AND ALi. DAMAGES, LOSSES, JU1M~MENTS, CLAIMS OR
OTIIER MONETARY LOSSES RECOVERED FROM ~ CITY ON ACCOUNT OF
PERSONAL INJURIES INCLUDING, WITHOUT LIMITATION, WO]HCRR~'
COMPENSATION, DEATH CLAIMS, PROPERTY LOS8 OR DAMAGE OF ANY
KIND, OR ANY OTHER KIND OF DAMAGES WHICH ARE ATYRIBUTABI.~ TO
CONSULTANT'S NEGLIGENCE OR WILLFUL ACTS OR OM[]SIONS (AS
DETERMINED BY FINAL JUDGMENT OF A COURT OF COMPETENT
,H_~RISDICTION WHiCH [] NO LONGER SUBJECT TO APPEAL OR FUR'IT~R
REVIEW) W'I:IlI.E IN PERFORMANCE OF THLq AGREEMENT AND INCLUDING
ALL EXPENSES OF LITIGATION, COURT COSTS, AND A'I'I'OR.NEYS' IrEE8
INCURRED BY ~ CITY IN CONNECTION WITH DEFENDING ITSRLF IN ANY
ACrlONS RESULTING IN SUCH MONETARY LOSSES.
TO THE F. XTRNT NOT PROI:fl~ITED BY ~ STATUTI~ OF TUR STATE OF
TEXAS AND TUg. TEXAS CONSTITUTION, THF~ CITY 8HAl.I, INDI~,INIgY, SAVE,
AND HOLD HARMLESS THE CONSULTANT AND ITS OFFI~ ILMPLOYEF, S,
REPIO;.$ENTATIVES, AND AGENTS AGAINST ANY AND Al,l, DAMAGF, S, LOSSE~
JUDGEMF~N'I~ CLAIMS OR O'[T~R MONETARY LOSSES RECO _V_~En FROM
THE CONSULTANT ON ACCOUNT OF PERSONAL INJURII~q INCLUDING~
WITHOUT LIMITATION, WORKERS' COMPENSATION, DEATH CR,AIM~
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PROPI~RTY LOSS OR DAMAGE OF ANY KIND, OR ANY ~R KIND Oi~
DAMAGES WHICH ARE A~13HRUTABI.g. TO T~ CITY'8 GRO~8 NEGLIG~NC~
OR WILLFUL ACT~ OR OMISSIONS (AS Di~TERMINI~D BY FINAL JUDGEMg~NT
OF A COURT OF COMPETENT JURISDI~ON WHICH
TO APPEAL OR FURTIIER REVIEW) W~mJE RECg~IVING SERVICE8 UNDRR
AGREEMENT AND INCLUDING ALL F. XPENSES OF LITIGATION, COURT CO~T~
AND A3'FORNEYS' FEES INCURRED BY THE CONSULTANT IN CO~ON
WITH DIH~NDING ITSELF IN ANY ACTIONS RESULTING IN SUCH MONI~TARY
LOSSl~S.
17. NoO~
IF TO CITY:
IF TO CONSTULTANT:
City of Corpu~ Christi
Cynthia
Director, Human
P.O. Box 9277
Corl:n~ ChriS, TexA- 7846%9277
PHONE: (361) 880-3315
FAX: (3611 880-3697
Mercer Risk. Fimmce & Inm~n~
Com ti
I 166 Aveaue of the America~, ,~ floor
New York, New York 10036-2774
PHONE: (212) 345-7000
FAX: (212) 345-231E2
E~tl~r ~ m~y chang~ th~ ~ to which notice is ~nt by using a method ~t out
Consultant shsll notify the City of an addreu ch~n~l~ within I~hlrty (30) ~ after th~ ~,.~,
chang, ed.
In the event tlmt any one or mom of the provisions of this Agr~em~nI ~ l'ot shy r~zon, b~
held invalid, illeg~, or unenforceable in any r~pect, such inv~dity, ilL--g~i~, or
uncnforce~bility ~all not affect any ~ provi~on offl~i, Agn:ement
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~ 19. H~dlup
The headings used in this Ag~nent nrc for convenience only nnd ~re not to be consm~ ns Imrt
of this Agreement_
~10. ~m~mdm~t
No modifien6on or amendment of this Agr~emem shall be binding unle~ it is in the form of a
~riuen document refuting to this Agreement and ~ed by m~ r,."presem~vea of the
City and Consultam
EXECUTED IN DUPLICATE, e~ch of which will be considered an originS, this .~
'~.. _,, ..,,, _ 2005.
..~
CITY OF CORPUS CTIRI~FI
./
Cynthlt Onmis, Director. Human Resources
day of
Senior AssistnnI Ci.ty Attorney
CONSULTANT: Mercer Rink, Finance & lnnl'nne~ Connlllag
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