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Home My WebLink AboutProfessional Services Contract - PricewaterhouseCoopers LLP - Police and Fire Pension Plan for GASB 67 and 681316 COUNTY -CITY BUILDING 227 W. JEFFERSON BOULEVARD SOUTH BEND. INDIANA 46601-1830 .� 150U TH 8�� u W PB.1CF '�J t 7965 CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR BOARD OF PUBLIC WORKS January 24, 2017 Cindy Fraterrigo PricewaterhouseCoopers, LLP One North Wacker Drive Chicago, IL 60606 RE: Professional Services Contract Dear Ms. Fraterrigo: PHONE 574/235-9251 FAX 574/235-9171 The Board of Public Works, at its meeting held on January 24, 2017, approved the above referenced contract for police and fire department pension plan GASB 67 and 68 valuation reporting in the amount of $3,000 each for a total of $6,000. Enclosed please find the original of the contract for your signature. Please sign and return the original agreement to our office and retain a copy for your records. If you have any further questions regarding this matter, please call this office at (574) 235- 9251. Sincerely, Linda M. Martin, Clerk l Enclosure c: John Murphy, Administration and Finance GARY A. GILOT SUZANNA M. FRITZBERG ELIZABETH A. MARADIK JAMEs A. MUELLER THERESE J. DORAU CONTRACT FOR SERVICES This Contract For Services ("Contract") is made effective as of February 1 , 2017and between City of South Bend, Indiana ("Rmniover") and PricewaterhouseCoopers LLP WHEREAS, The Indiana Public Retirement System ("INPRS") administers the Pension Relief Fund for the benefit of employers participating in the 1925 Police Pension Fund, the 1937 Firefighters Pension Fund, and/or the 1953Police Pension Fund for Indianapolis (collectively referred to as the "Old Police and Fire Funds"); WHEREAS, Employer participates in one or more of the Old Police and Fire Funds for the benefit of certain of its current and former employees and is required to report its net pension liability, pension expenses, deferred inflows and outflows of resources, and other items associated with its participation in accordance with Governmental Accounting Standards Board Statement Numbers 67 and 68 ("GASB 67" and "GASB 68"); WHEREAS, the Old Police and Fire Funds are classified as single employer plans under GASB 67 and GASB 68 and Employer requires an actuarial valuation of its net pension liability, pension expenses, and deferred inflows and outflows of resources associated with its participation. WHEREAS, Contractor currently performs an annual actuarial valuation of the liabilities associated with each employer participating in the Old Police and Fire Funds as part of its Contract with INPRS; WHEREAS, Employer desires to leverage the Contractor's work for INPRS and engage the Contractor to provide an actuarial valuation report containing its net pension liability, pension expenses, deferred inflows and outflows of resources, and other items associated with its participation in the Old Police and Fire Funds in accordance with GASB 67 and GASB 68; WHERAS, Contractor desires to leverage the data provided by INPRS and utilized in the annual actuarial valuation of the liabilities associated with the Employer's participation in one or more of the Old Police and Fire Funds, and to leverage the existing relationship between INPRS and the Employer, for the purpose of preparing employer -level accounting information in accordance with GASB 67 and GASB 68 to the Employer; NOW, THEREFORE, the parties agree as follows: 1. Scope Contractor will prepare financial reporting information in accordance with GASB 67 and GASB 68 pertaining to the Employer's participation in the Old Police and Fire Funds, including calculation of the Employer's net pension liability, pension expense, and deferred inflows and outflows of resources for the annual period ending on the measurement date, based on information provided by INPRS. 2. Deliverables Contractor will deliver an actuarial report to the Employer for its participation in each of the Old Police and Fire Funds that includes the following: • Actuarial certification by the Contractor of the valuation results and GASB 67 and GASB 68 financial reporting amounts contained in the report, based on the underlying census data provided by INPRS, as well as the actuarial assumptions and methods selected and approved by the INPRS Board. • Employer specific GASB 67 and GASB 68 information, including net pension liability as of the end of the year, pension expense for the fiscal year, a summary of outstanding deferred inflow and outflow amortization bases provided, and other note disclosures and required supplementary tables. • A summary of the census data underlying the valuation, including comparative statistics between the current year and prior year, based on the information provided to the Contractor by INPRS. • Disclosure of all assumptions and methods utilized in the valuation, as selected and approved by the INPRS Board. • Disclosure of the relevant plan provisions reflected in the valuation, based on relevant Indiana statutes at the time of the valuation. 3. Fees Fees for services and deliverables provided by the Contractor under this Contract will be $3,000 for each actuarial report provided to the Employer. A separate report will be provided for each of the Old Police and Fire Plans in which the Employer participates. 4. Coordination with INPRS Employer shall coordinate with INPRS personnel to request an actuarial valuation and report from the Contractor. All work performed and deliverables prepared by the Contractor will be at the direction of INPRS on behalf of the Employer. S. Timing Contractor will begin work only after execution of this Contract and upon receiving such direction from INPRS. This Contract will terminate upon delivery of the actuarial report to the Employer. 6. Terms and conditions incorporated by reference The following terms and conditions of the Contract for Services between INPRS and the Contractor, dated June 7, 2010, and as amended to date (the "INPRS Contract for Services"), are incorporated herein by this reference: • Sections 5 through 7 • Sections 9 through 20 • Section 22 • Sections 24 through 27 • Section 29 • Section 32 • Sections 34 through 37 • Section 39 • Section 41 • Sections 43 through 50 For purposes of this Contract, all references to "PERF", "Fund", or "INPRS" in the above incorporated terms and conditions shall mean the Employer and all references to "Contractor" shall mean PricewaterhouseCoopers LLP. A complete copy of the INPRS Contract for Services can be provided by INPRS. 7. Notice to Parties Whenever any notice, statement, or other communication shall be sent to the Employer or Contractor, it shall be sent to the following address, unless otherwise specifically advised. Notices to the Employer shall be sent to: City of South Bend Dept. of Administration & Finance 227 W. Jefferson Blvd. South Bend, IN 466 Notices to the Contractor shall be sent to: Cindy Fraterrigo, Principal PricewaterhouseCoopers LLP One North Wacker Drive Chicago, IL 60606 IN WITNESS WHEREOF, the parties, having read and with full understanding of the foregoing terms of the contract, so by their respective signatures dated below hereby agree to the terms herein. This Contract may be signed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and same instruments. Employer: Contractor: APPROVED By: Baud of P' "hli,. m . By: Name: Title: Date: Name: Title: Date: 3 BOARD OF PUBLIC WORKS AGENDA ITEM REVIEW REQUEST FORM Date 1/13/17 Name John Murphy Department Adm/Finance BPW Date 1/24/16 Phone Extension 7678 Required Prior to Submittal to Board Legal ® Attorney Name Michael Schmidt Controller ® Controller review is required for all Contracts $5,000.00 or more and greater than one year in length per the City Purchasing Policy Purchasing ® George King Check the Appropriate Item Type — Required for All Submissions ❑ Agreement ❑ Contract ❑ Proposal ❑ Addendum ❑ Professional Services ® Resolution ❑ Bid Opening ❑ Bid Award ❑ Req. to Advertise ❑ Title Sheet ❑ Quote Opening ❑ Quote Award ❑ Change Order No. ❑ C/O & PCA No. ❑ PCA ❑ Ease/Encroach. ❑ Traffic Control ❑ Other: Required Information Company or Vendor Name Pricewaterhousecoopers LLP New Vendor ❑ Yes ® No ❑ If Yes, Approved by Purchasing MBEM/BE Contractor ❑ MBE ❑ WBE Project Name 2016 Police and Fire Pension Plan GASB 67 & 68 Valuation Reports Project Number None Funding Source Police Pension Plan and Fire Pension Plan Account No. 702-0803-645-31-06 $ 701-0903-645-31-06 Amount $ $3,000.00 lump sum for each report, $6,000.00 total cost. Terms of Contract Required valuation reports for the Police and Fire Pension plans as mandated by GASB 67 & 68. Pricewaterhousecoopers is the suggested provider for services for Indiana cities by the Indiana Public Retirement System. The City of South Bend has contracted with them successfully for these services the roast two vears. Purpose/Description ❑ Required Contractor's Certification Form Attached (Non - Collusion, Non -Discrimination, Non -Debarment, E-Verify, Iran, etc. Required For Chanqe Orders Onlv Amount of 0 Increase Decrease Previous Amount Current Percent of Change: New Amount Total Percent of Change: Copy Original ❑ ❑ ❑ ❑ 7 ❑ Dispersal After