HomeMy WebLinkAboutC2005-466 - 8/25/2005 - NAACTUARIAL SERVICES AGREEMENT
Workem' Compmmatkm & General I.l~bllltlee
'lhis Agreement for securing profesaional a~mrial ~'viees__ is eaxte:mcl into by and
between the City. of Corpus C~n'isti ("City"). a home rule city under the lawa of the ~ of
rex,,,,, and Mercgr Olivcr Wyman ('Commtt~t'L This ~ becotm~ effe~tiv~ utaon
si~ing by the Di~'tor of Humaa Resourc~ or her
Tbe City .seeks the servicea of Consultant to perform an actuarial analyais of the City's
~elf-inaurance activities within the workers' compertsation and general liability funda; and
The Consultam viii prepare and issue a written report which doeumems im findings and
recommendations.
In considermion of the stated mutual coven~tts, undermldngs mad comider~tions the
pm'ti~s ~u'ee as follow~:
8.g]~l 1. Coatrlgt ,Mtmilimmor
I'he Cit} 's commo ~lminis~_!_nr ("Contract Admini~t__of') for thig Conl;tl~; ia the ~ of
Human ~ Cynthia Gan:ia. or her designee. The Cmmact Administrator is rt,ponsible
tb~ all phmes of the City's perforn~mce and OlX-mtions under thi~ Cotma~ including
amhnfizations for payment..MI nofieea or commtmicationa regnrding thi~ ~ si:roll be
directed to the Contact Administrant pursuant to Section 17 below.
S~'tion 2. Ba~ Servi~ to I~ Performed
Cor~ulmnt ~ clearly and precisely idenfi~ ~ to be provided by City under the term~ of mit
Agreement Upon ~ receipt of all sue. h required ~hs, Conaulmm almll perform the
Ibllowi~ services:
u. Estimate outstanding losses, including nil _oe~ ~ loss adjustment expenses, for fiacal y~ar end
July a 1, 2005, and provide a long-range forer, ast for fiscal year coding July 31, 2006, July 31,
2007 and July 31. 2008. 'lhe outstanding Iosnes are the cost of tmpaid ~ im:luding case
m's~-v~, the developmem of known cl~ir~ snd imurmd but not r~ort~d ~ Alloc~t~l
Iov~ adjustment expenses are the dh-eot settlea~lertt expetmea for llpecific ¢lnimz. primarily
leLzal expemses. Co~ultant will provide the projeo'__eO_ percz'nta~ of oummmting losaea ~
b~ ~.'ar to provide detail for the prt~mt value calofl,,tlona. Outstanding losa~ will be
provided as expected, and at 60~ 70%, 80% and 90~ confidence levels. Confi&mc~ levels
r~flect the degr~ of statistical confide~tce the provider holds that funds will be sufl%ient to
meet Ioases. For ex~mple, a q0% confidence level means ~ in nine years out of tm, the~
unll be mffi¢~em funds.
Me[ce[ Oliver NXymnn
1005-466
Project the financial position as of July 31. 2005, July 31. 2006, July 31, 2007 nnd July 31,
2008 The finnncial position is a comparison of e~drnn~i O~t~h,ntlln~ 10~0~ with ~
earmarked Io meet the self-insurance activity. The projection of the financial position shall
consider: ctn'r~nt ~ budge'ted re*venue to fiscal year*end, nntici~ ~ ira:onto,
budgeted expenses paid to fiscnl year-end and project_~ losses paid to fiscal y~m*-end.
Project futuze Ioases and allocated Io~ adjustment expensea for ~ years 2005-2006,
_9006-2007 and 2007-2008. aeparatcly by fiscal year. T~ fum~ lo~m m~ tl~ ns~-ual valu~
ot' losses with accident dat~ in 2005-2006 to 2007-2008, p~-gnzdl~___ of rw~rt o~ paymeat
date. The futut~ losses shall be shown on a full value basis (not di~xmnt~l for ~
earnings) and preaent value basis (discoun~ for investment eaminga). Tl~ futu~ lomm
~hall he ~o~ as exp~. and at 60%, 70%. 80% and 90% comSdenc~ Icrc, Is.
Consultant will r~x:ommend an ovendl fimding level for fiscal years 2005-2006 to 2007-
2008. sepamlely by fiscal yo~r. The r~commended funding r~_ecs__n pmjecl~ f-utu~
amicq:~t~:l mvesUnea~ income, thc financial posifon of the City's seff-insutan~ amivity
a rea.',~aabl¢ p~oviaion for comingertciea. If the s~lf-insm'an~ activity within the liability
Ihnd ~xhowa a poai6ve fund balance. Conaullant will outline a prud~xt plan to w, lea~ th~
equit.~. If the self-innutance activity within the liability fund show~ a deficit, ~ will
outline a Iong-t~xm stingy (three lo five years) to r~duce the aborffall.
Conatdtnm will perform a cash flow nnalynis to p~ject clnims diabul~ne~ durio2 the
~ years 2005-2006 th.m-Eh 2007-2008. nq~nY~ly by fiscal y~nr. The cLaims
disb~r~nx ~s the cash value of ioas~ with paymenl dnt~ chain8 2005-2006 through 2007-
2008. ~'~rdlesa ofreport ,ffaccidenl date.
I. Consultant viii discuss any observations that Consultant may have, including a ~-q,,iew of
claim fzvquency and claim severity lU~n~ns for the pa~ five fiscal y~trs. Significant
differed:es from prex ious actuarial studies that Consultant has condtu:t~d, if m~y, will b~
,denufied and explained.
g. Cl~ultant will provide a stntement a~xming the conclusions in tl~ nctuntial study
conaistem with the GASB Statement No. 10.
Items "a" through "e" nbove shall be ulxlnt~ based on ac~,,*! claim, experience for the time
period August 1, 2005 through Jnnum'y. 31,2006.
3, Reu m,
The C. onsulmm stroll perform s~vic~ r~luired ~ nmi provide it~ conclmiom nnd
re~ommendations in a draft report within fourt,~c-n (14) cnlendar dayn afk~r (1) m~borb~6on of
the City to commeace, ,m~ess an extension is gtm~,-d in wriling by the City, and (2) upon
acknowledged receil~ by the consultant of complete and safiafactory ~cal dam. The dr~
repor~ qhnllt be consistent with GASB St_~_,~nem No. 10. The concl-~ions and r~0s~n,~stlonn
shall be clear, coricisc and easily undemood by non-sctum'ics. The ~ shall include char~
graph~ and other doc~mentmlon sufficient to support ~11 coflclu~ions and r~com~ The
consultant shall be avmhblc for discussion or l~CScnmfions r~gm~lin5 the dr~ report's
conclusions ami reco~mendmions af~ submi~aion of the dfl~ rclxn't sfl the City's com, coi~ce,
Based on any n,~ facts a._~_~t, ained, the consultant shall revise the draft report and issue a final
written tx3x~ no laler th~n twenty-one (21) days after authori~on by thc City to commence,
~mles~ an extension is granted in writing by the City
S~Ct~Oa 4. Prtcc snd l~tvm~mt Terl~
A to(al price for services pcrfo,~ed as rcqui~:l in Sections 1, 2, 3, and 4 will not
Twenty-four Thounnd Dolhrs ($24,000.00). The Consultant will subfl~t an invoice to the Ci~
which itemizes thc services performed. Within thirty (30) days of l:lJe City's acceplm~ of the
draft relx~t, the City will pey the Consultant fif~' pcrcc~t (50%) of the fcc, W'flhin thirty (30)
days of the City's acceptance of the final report the City will pay the Con~lMnl the lesser of the
remaining fifty pereem (¢~5~ of the fee, or the halame of the amount due on the immized
SecCk)n 5. T~of A.~mneut
This Agr~eme~ commences upon execution by the Director of Hnm~ Resources. or h~
designee and continues for a period of twelve (12) months tl~r~f~.
S~'q~on 6. Termlu-ttoa ~f A~v~Bmt
The City may, at any time, wrth or without cause, terminnte this Agr~a:n~xt h.nmoclismly tqaon
wl'i~___~_ notice to tile C. onsultlmL Upon termination of this Agreement, all finished or Imfini~led
doeume~ data, stud~ or reports prepam:l by the Consul,,,,t, atthe option of the City, will be
delivered to the City and become the property of the City.
S~q~k)u 7. ~ Yctr ~tud ADDFOOrtStlnu!
All parties r~xq0~ze that tl~ continuation of any %omcmcm after July 31, th~ close of any fiacnd
y~a' of tbe City, will be .,mbjcct to appmpfimions and budget apgroval providing for ~
~uch Agre~nent as ~m ~xp~ditm'¢ in lh~ ImdS~-t. The City ahall not be obli? to p~f~'m
under th,s Agreemem if the City Council declines to ~l~X)~ ftmds ~ to ~
Consult~t. S~m~larly. in thst event Con~ulMnt shall ~ no obligmion to comim~ ~
under this Asmem~.
S~*tion 8.
]'he Consultant will not assign, transfer, or delegate any of its oblig~ons or duties in thin
.Ag~:ement to ~ny other peraon without thc prior writma cons~ of the City. The lm'fonnan~ of
this Ag~-ement by Consultam is the ess~cc of this ~ and City's risht to withhold
con~nt to ~h a~gnmem will bc with/n thc ~!~ discretion of the City on ~ny grout~
what~e','er.
~[t~n ~. lndgl~ltdpnt Colllzllg~or
Consultant wifl perform all profe~ional ~'vicez az an indepe~le~ conlzactor ~ will fumi~
s~h services in itz own manner and method, and under no ci.n:umntanc:ea or conditiom will an
agenL ~rv~mt, or ~'nploy~ of thc Consultam bc comidered an employ~ oftbe City. Any ~
servm~t and empioy~ of the Consultant nMigntd to perform servi_,~__ trader thi,~ Al~,~.,eat
be competent, capable, qualified and duly licensed under the laws of the Siai~ of Texas to
$~ctl~n 10. Subtontnt~or.
Consultant may use subeonmmtors in connection with the work pa'formed uncl~r thi~
Agr~menL When using subcontractors, however. Con.sult~mt must obtain written, approval f~m
the City. In using subeontmetom Consultant agrem to be responalbl¢ for all ~ a~ts mad
,waiMions to the s~,e extent as if the sutnamtractm mad its employes w~ employem of the
Consultant. All requirements set forth as parl of thi. A_m~nmmt will be applicable to all
suborners and their employees to the same extent as ifthe Col:l~llmnt ~ its employom had
Soction 11, ~n~tl~bl~ ~
This Agreemeal is subject m all Fedenil ~ and lawn oftbe State of Texas including thos~ lawn
related to Equal Oppommity and to Per,ns with Disabilities.
The place of perfornumce under this Agre~mem will be in Cotpm Cla'isti. Nuec~ County,
Texas. VcmJc fi~' any l_,~n] action will be to the appsup['~e Court In the Sm~e of Tt~ma.
12. Au~orit~
(_'on~tPmnt and the City each repre~e'm ttmt the individual ai~anin~ on it~ behalf lma ttm power and
audxmty to eater into this Agmemem. and thai this ~ COl'L~hd~ I1 valid ~d binding
obli~tion of each party.
Set'flon 13. Wpivtr
No waiver of any hmacJa of any to,m, or condition of the Agreement, will be comtrued to waive
any ~ubsequent breach of the aame.
14. Diatlo~r~ d lnt~Ft~t]
Consultant further ag~-,~ in compliance with City of Corpus Chr~ Ordimmce No. 17112, to
complete, aa part of thi_q Agre~ent, thc Disclosure of Interest form pmvide~ to Consultant, a
copy of which is a~m,-hed aa Exhibit I
S~:~on I~. ln[m'nn~
('onaultant shall procure and maintain t~ ~ coverages re~luiz~l uncl~ thla .A. greell:lff~
that are outlined in F. xahibit 2. which is atlac~ to and i~ in thia ~ by
reference
16. ltld,'mnift~tion
CONSULTANT SHALL FUI.I.Y INDEMNIFY, SAVE, AND HOLD HARMLESS ~
CITY AND THE CITY'S OFFICERS, EMlq.O~ REPRESENTATIVE~ AND
AGENTS AGAINST ANY AND ALI. DAMAGe-q, LOSSF_~ JUDGMlOq'I~ CLAIM~ OR
OTI4E~ MONETARY LOSSES RECO~D FROM THE CITY ON ACCOUNT OF
PERSONAL INJURIlZ. S INCLUDING, WITHOUT LIMITATION, WORKIt~RS'
COMPENSATION, DEATH CLAIMS, PROPERTY LOSS OR DAMAGE OF ANY
KIND, OR ANY OTHER KIND OF DAMAGE~ WHICH ARE A'I'FRIBUTABL~ TO
CONSULTANT'S GROSS NEGLIGENCE OR WILLFUL ACTS OR OMIR~IONS (AS
DETERMIN~I~ BY FINAL JUDGMENT OF A COURT O]t COMPETI~IT
JURISDICTION WHICH IS NO LONGER S~ TO APPEAL OR FURTI~R
REVIEW) WHILE IN PERFORMANCE OF THIS CONTRACT AND INCLUDING ,ALIJ
EXPENSF.~ OF LITIGATION, COURT COSTS, AND A'I'FORN~YS' lrgA~ INCURRED
BY THE CITY IN CONNECTION WTFH DEi~NDING 1TSlZLIt IN ANY ACTIONS
RESULTING IN SUCH MONETARY LOSSES.
TO TI4~ EXTENT NOT PROHIBFFED BY THE STATUTF~ OF ~ STATE OF
TEXAS AND ~ TIEILAS CONSTITUTION, TH~ CITY SHALL lrUI.I.y INDF31NIFY,
SAVE, AND HOI.II HARMLESS THE CONSULTANT AND ITS OFFICERS,
EMPLOYEF~ RIZPRESENTA~ AND AGEN'I~ AGAINST ANY AND
DAMAGE-g, LOSST~ ~E.MlCNT~ CLAIMS OR OTI~R MONI~TARY
RECOVFA~ED FROM THE CONSULTA.N'T ON ACCOUNT Oil' PERfiONAL INJURIF~
INCLUDING, WTTHOUT LIMITATION, WORKERS' COMPENSATION, DEATH
CLAIMS, PROPERTY LOSS OR DAMAGE OF ANY KIND, OR ANY ~ KIND
OF DAMAGE~ WlIICH ARE ATTRIBUTABI.I~. TO ~ ~ GROS~
NEGLIGE_NCE OR WIl.l.gUL ACT8 OR OMISSIONS (AS Dg'/"R, RMIIN~gD BY
JUDGEME.NT OF A COURT OF COMPETENT JURISDICTION NVI:~CH I~ NO
LONGILR SU'B. JECT TO APPEAL OR FURTHER R~VI~W) ~rl:m.l~ ~G
~;ERV'ICE~ UNDER TIH.~ CONTRACT AND INCLUDING ,AI.I. E, XPI~NS~ OF
LmGATION, COURT COSTS, AND A~FORNEYS' FF_A~ INCURRI~D BY
CONSULTANT IN CONNECTION WITH DEFENDING IT~ilt. l.F IN ANY ACTIONS
R~qULTING IN SUCH MONETARY LOSSES.
17. Notice
Ail notices, demands, requests, or replies provided for or pennitled under ~hi~ p. Erc~ by
eith~ party must be in ~riling and must be delivered by one of tl~ followlnE methods, unless
aaother section of this Agr~mem di~t,~ ~ particular m~d, in which c~e the lmrticu~
method ]angu~¢ conlxols: (1) by personal delivery: (2) by deposit with the United ~_,~ Po~tal
S~vice ~ __orrti_ 'fi~ or ~si~tered m~il. r~lrn ~c~ipt mquc~d. ~ laq~i~ (3) by
telegrm~: (4) by deposit with an ovemisht express delivery ~a-vi~, for which service h~ bom
prepmd; (,r (5) by fax uan~udssion. Nolice depo~iled with the United Statez ~ Service in the
manner de~'ibed above will be deemed effective two (2) b~inezz days ~ delx~it with the
I lnilecl SI~,~-~ Postal ,~xx'ice. Notice b).' telegram or ovo.dsht exlxe~ delivery ~ervice will be
deemed effective one ( 1 ) buziness clay after lx~nsmi~ion to the telesmph ~y or ovo'nil~t
express carrier. Notice by fax transmission will be deemed effective upon tnm~mizzion, with
proof of _mc~__ipt. All ~uch communications muzt only' be made to the following:
IFTO CITY:
CBy of Corp-, Christi
Direetor, Hmmmn
P.O. Box
CorIm~ Chri~lt, T~ 78469-9277
PHONE: O61)
FAX: (~1) 880-~697
IF TO CONSULTANT:
Mercer Oliver Wyman
Consulting
Arm: Ted Z~bulmke, FCAS, ~
116~ Aveome of the Amedc~, l~th flo~r
New York, New York 10~6-27~8
PHONE: (212) 34.q-3~9
FAX: (212) 34~-2382
[:.ith~r party may cha~e the address m which notice iz sent by Ua/ha a method set o~t ~ve.
('onsulumt shall notify thc Cit~ of an addre~ Orange within thirty (30) days ~ the addr~zz iz
cliniC.
In the ~.went thai any one or more of the pmvi~ionz of this Agreement shall, for a~y r~son, b~
held invalid, illegal, or unenforceable in any respect, sach invalidity, illc?lity, or
unenfo _ro~__bility sl~ll not ~fffect an)' other la. vision of this Agreeammt
19, H,.-8~,!
l'he hesdinas used in this Asleement are for convenience only stat are not to !~ constn~ as part
of this Agre~menl.
Sm~ton ;tO,
No modification or ,~met)dment of this Agreement shall be binding unlem it i~ in tl~ form of a
wfitum m ref~zrinE t~ this Asz*etmmI and ~isz~l by ~thmiz~d ~qa~,ml~llv~ of the
City and Consultant.
APPROVED AS TO FORM thia~.., ofi
.2005.
CONSUI.TANT: M~r~r Oliver Wyman
Date:__ "~\ L L~X
KXlJmlT I
CITY OF COIU~US Cl:LRl~i-~l
DISCLOS~R~ OF IN'rK]JlL,~l~
C~' of Coq}m (~riJfi Ordi~m~ 17112 m mn,mdgd, mqukt~ ~JI ix~oas ~ ~ ~{du~ Io 8o bu~tmm~ ~d~h Ibm
4. ,%uoci~Jtm ( ) 5. ~ I )
SolcO~mr ( )
DIS(1.0S1J RE I;llJ ESTIONS
i Sm~the~mmofem~"m~-of~Cl~ ofC. oq~m(.'l~i~ilmdnSm"~rwm~hipim~~
,.'omthulb~ ]% or mom of ~ ow~hip in the ~ove t~m~d "Pmpo~r.'
.' Stn~ thr nmnea of em:h =offk. isd" of the Cil) of Coq}us Christi havin~ an -~ ~ ~ 3% m' nmm
orlhe o,wne~ ~ ~M' ~ao~e ~ =Proposer"
= S~I~ the nmos of en~h "lx~-d member" of t{~ City of Corpus Clu'lslt hnvtn[ m "ovmernhip ~ ~ 3~
,,r mo~ of,J~e owners~p In the abo~ named -Proposer.'
~ Com~l~ m C~mmlu~e
4 Sl~e the n~ of ~ ~ m offl~r of a "~mulm~" for thc CI~, of Coqam C~i~ wire w~l~ on ~ nmll~
rdm:~l m d~e mb,Jea~ of d~, c~a~m~ m',d hm m~ "owm~h~ im~:" czm~tuS~_ 3% ar mo~ af~ ~ ~ ~
CERTIFICATE
I certify that nil information provided is u'ue and convct as of the ~a~e of this smeme~ that 1
h~ave no~ knowingly withheld disclosure of any information r~quested; and that supplenmnml
.~atement,, will be promptly submitted to the City of Corpus Christi, Texas as ~ occur.
Certi~in8
Title:
DEFINITIONS
a. -Board rnomber.' A member of any ~ commir~ion, or commi~ appoin~t by fl~e City
Codicil of the CiD' of Corpus Christi. Text.
b "Employee.- Any per~m employcd by the Ci~ of Corpm ChriS, Tex~ eittm' on · full or pm't-
t~rn~ basi~ ~ not as an indq:~tc-nt contrnctor.
lim~t~ to. ~mtiti~ ~ in ~ form of sole pmpriete~ip, as · self-~nploy~d peach,
partm~ip, corporm'ion, joim ~:k company, joint vcntu~ recei~p or txu~ ~fit~ which for
ourposes ,:,ftnxnfion are ~LO.a as non-pror~ orsanizmions.
cl. -'Officml.'~ The M~yor. members of the City Council, City Mamq~r, Deputy City M~ms~,
.~sis~nt City Msml~ws, Del~'tmem and Division Hesds, rout Municipal Com't Judi~s office City of
('Orl~ Christi, Texas.
c ~)v, nership interest." Legal or equi'tnblc into-re-st, whether nctunlly or constructively held. In a
I~oposcr, including when such inlt-r~x is held through an N~"nt, Irust. esmlr, or holding entity.
· 'Congouctively held" refers to holdirn_on or control established through voting Uust~ proxies, or
,oxsal terms of ventm~ or pannership agreements.'*
r "Cor~uimm.' Any person or Proposer. such asengineersm~larchitrcts, htred by the City of
Corpus Chri~i for the purpose of profeasional constdtnfion and r~cornmendsfion.
Exhibit 2
Required Insurance Provlaiona
Ct,mmercial generul liability with a combined single limit of coverage of $2.000,000 pet
occurrence and n&Bx~gnte;
F.m:n~ and omissions (prot'essional liability) insurance with a minimum limit coverage of
$2.000,000 per claim and aggregate. Such insm'ance shall cover Consultam's officms,
directors, and employees: and,
Workers' com~ insurance coverin8 all of Cortsulmnt's officers and employees who,
al any time. perform an3 w~nk relatin8 to this Con.ct in City offices.
a. II insurance shall be maintained with insurers which are aCC~l~h~ to thc Conlmct
Administrmor If thc insurance company elects to usc thc standmd ACORD fmTn, thc
cancellation clause located ~m the bottom risht of the ACORD form ahall be amended by adding
the working "m,,m-ially changed or' between "be" and -cancelled," dele~n~ ~ words
"endeavor to". ',md deleting the wording a~r "left".
3 ! Consaltant shall p~ovide workers' compemation covemse through a licensed ~ company
t,r th~>ugh serf-insurance obtained in accordance with Texas law.
(?ortsultam shall ensure that any and all sub-contractors performing services undec Ibis conlzact
meet the insurnnce requirements of this Contract.
10