Loading...
HomeMy WebLinkAboutActuarial Services Agreement - Cavanaugh MacDonald Consulting LLC - Annual Fire and Police Pension Relief Valuations1316 COUNTY —CITY BUILDING 227 W.JEFFERSON BOULEVARD SOI ITH BEND. INDIANA 46601-1930 CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR BOARD OF PUBLIC WORKS December 20, 2018 Brent Banister Cavanaugh MacDonald Consulting, LLC 3550 Busbee Parkway, Suite 250 Kennesaw, GA 30144 RE: Actuarial Services Agreement Dear Mr. Banister: PHONE 574/235-9251 FAx 574/235-9171 The Board of Public Works, at its meeting held on December 20, 2018, approved the above referenced agreement regarding annual Police and Fire Department pension relief valuations under GASB 68 in the amount of $6,400. Enclosed please find the original of the agreement 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, a Linda M. Martin, Clerk Enclosure GARY A. GILOT SUZANNA M. FRITZBERG ELIZABETH A. MARADIK JAMES A. MUELLER THERESE J. DORAU ACTUARIAL SERVICES AGREEMENT THIS AGREEMENT, made and entered into effect this W day of D(,MW, 20S by and among the City of South Bend, Indiana, acting by and through its Board of Public Works (hereinafter referred to as "Sponsor") and CAVANAUGH MACDONALD CONSULTING, LLC, a Georgia corporation, 3550 Busbee Parkway, Suite 250, Kennesaw, Georgia 30144, (hereinafter referred to as "CMC") WITNESSETH: WHEREAS the SPONSOR is desirous of retaining professional actuarial and pension consulting services to the SPONSOR; and WHEREAS the SPONSOR selected CMC for that purpose; NOW, THEREFORE, in consideration of the premises and of the mutual covenants and promises therein contained, the parties hereto agree as follows: 1. Annual GASB 68 Actuarial Valuations, At the direction of the SPONSOR, CMC shall prepare an actuarial valuation as of January 1" of each year for disclosure under GASB 68. Such valuations are to be based on detailed and up-to-date tabulations of active and inactive participants, current pensioners, and any other such detailed information as CMC and the SPONSOR may mutually determine to be pertinent to the purpose of the review. Such actuarial valuation shall provide all financial and statistical information as may be now required to prepare financial statements under generally accepted accounting principles (GAAP). 2. T rin and Termination — The performance of this Agreement shall commence on the date first hereinabove recited. This Agreement may be terminated: (a) by CMC by providing written notice to the SPONSOR at least sixty (60) days prior to such termination, or (b) by the SPONSOR by providing written notice to CMC at least thirty (30) days prior to such termination provided, however, that this Agreement may be terminated by CMC pursuant to clause (a) above only for reasonable cause relating to CMC's continued ability to provide effective services to the SPONSOR, with such reasonable causes including but not limited to insolvency, sale of the business, or substantial turnover of key personnel; and further provided that this Agreement may be terminated by the SPONSOR pursuant to clause (b) above for any reason or no reason. In the event the Contract is terminated, CMC shall be paid for work actually performed to the date of termination, plus bona fide expenses to date of termination, less the cost to the SPONSOR of making good any deficiencies, correcting all work improperly performed and any additional cost to the SPONSOR for removing or replacing CMC exclusive of fees to firm(s) hired to replace CMC. Said final payment shall be made to CMC within 30 days of the date of final invoice. Miscellaneous Provisions — This Agreement constitutes the entire Agreement and understanding between the SPONSOR and CMC with respect to all matters contained herein, including the following: ACTUARIAL SERVICES AGREEMENT a. CMC agrees to make no assignment of any of its rights, duties or obligations under this Agreement without the specific approval of the SPONSOR. b. CMC agrees to indemnify and hold harmless the SPONSOR and its officers, employees or agents, including but not limited to the Plan Administrator for any claims or causes of action which may arise against the SPONSOR as a result of any negligence or malfeasance on the part of CMC in the performance of its duties under this Agreement. C. This Agreement shall be construed in accordance with the laws of the State of Indiana and any remedies of the parties pertaining thereto shall likewise be governed by the laws of the State of Indiana. d. CMC agrees to abide with all applicable federal, state and local laws and rules and agrees to act in accordance with the standards of the actuarial profession. e. CMC agrees to carry a limit of liability of at least one million dollars in Errors & Omissions Insurance coverage, exclusive of defense costs. f. This Agreement, constituting the entire Agreement and understanding between the SPONSOR and CMC shall be construed to be in accordance with the laws of the State of Indiana and any remedies of the parties pertaining thereto shall likewise be governed by the laws of the State of Indiana. 4. Nondiscrimination. Clause — In performing work hereunder, CMC shall comply with all applicable laws and regulations in its hiring and employment practices and policies for any activity covered by this Agreement. CMC shall also comply with all federal, state, and municipal laws, regulations, and standards applicable to its activities pursuant to this Agreement including, but not limited to, the requirements imposed by Ind. Code 22-9-1- 10 (non-discrimination) and the provisions of Ind. Code 22-5-1.7 (requiring E-Verify for new employees and prohibiting employment of unauthorized aliens). 5, Ownership of Data and Work Product — The SPONSOR will permit the Indiana Public Employees Retirement System to provide CMC such data related to the SPONSOR and the participants, beneficiaries and other individuals interested therein (collectively, the "Data") as is necessary to permit the services to be provided by CMC under this Agreement. In addition, all materials prepared by CMC specifically and exclusively for the SPONSOR pursuant to this Agreement ("work product") shall be exclusively owned by the SPONSOR and shall be deemed works made for hire. In the event any work product may not, by operation of law, be works for hire, CMC hereby assigns to the SPONSOR all of its rights in such work product and copyrights therein. 6. Fees and Charges Annual GASB 68 Actuarial Valuation (Fire Department) $ 3,200 Annual GASB 68 Actuarial Valuation (Police Department) $ 3,200 Total $ 6,400 These rates shall remain fixed for the 2018 and 2019 valuations. ACTUARIAL SERVICES AGREEMENT IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective on the date first hereinabove recited. SPONSOR Name: 'i 4 8eard of I)kthlic Worliq By: c Printed Name: Title:_ . Address:..... ,...._ __. _ Phone: E-mail: CAVANAUGH MACDONALD CONSULTING, LLC By: �.._... ................ Brent A. Banister, FSA, FCA, MAAA Title: Chief Actuary BOARD OF PUBLIC WORKS AGENDA ITEM REVIEW REQUEST FORM Date December 12, 2018 Name _§en Department jqq�in Dougherty Admin & Finance . ................... .... .......... . . . ........................ .... . . . . . ........... . .................... BPW Date December 20, 2018 Phone Extension 7678 .......... . .................................. L .. ............. .............. ...... Required Prior to Submittal to Board ----- - — Legal x Elliot Anderson — ----------------- --- Controller review is required for all Contracts $5,000.00 or more Controller and greater than one year in length per the City Purchasing Policy Purchasing [:] Check the A F-1 Agreement F-1 Professional Services Fj Bid Opening R Quote Opening El Chg Order No. F-1 Ease./Encroach. � Other: Company or Vendor Name New Vendor MBE/WBE Contractor Project Name Project Number Funding Source Account No. Amount Terms of Contract iropriate Item for AlSubmissions . ....... . ..... . — Required [:] Contract [ Proposal El Amendment F-1 Bid Award El Req. to Advertise El Quote Award E] C/O & PCA No. EJ PCA Traffic Control F] Resolution [j Claim Required Information Addendum 0 Title Sheet Cavanaugh Macdonald Consult_ipg,, LLC F1 Yes F-1 If Yes, Approved by Purchasing No WBE MBE Completed E-Verify Form Attached ❑Nos Pension Relief Actuarial Valuations as of 12/31/2018 ......... ..................................... ................... None 701-0903-645.31-06; 702-0803-645.31-06 t-6—,"4­0 0ib"O-------------- . . . . . . ........................ Purpose/Description Contract for professional services of actuarial consultant selected by INPRS for annual police and fire pension relief valuations under GASB 68. For Change Orders 0 . ..... n_y__ Amount of increase $ ............ F ] Decrease $ Previous Amount $ Current Percent of Change: % New Amount $ Total Percent of Change: % Time Extension: Dispersal After Approval Copy Original