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Home My WebLink AboutAgreement - Actuarial Services Study of SBFD & SBPD Pension Funds - Cavanaugh MacDonald Consulting, LLC.NT 1316 COUNTY -CITY BUILDING rif PHONE 574/ 235-9251 227 W. JEFFERSON BOULEVARD °- .- rwC" FAX 574/ 235-9171 SOi1TH BEND_ INDfANA 46601-1 R30 " I ` u w ua Ind CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR December 10, 2019 Mr. Brent Banister Cavanaugh MacDonald Consulting, LLC. 3550 Busbee Pkwy., Suite 250 Kennesaw, GA 30144 RE: Actuarial Services Agreement Dear Mr. Banister: The Board of Public Works, at its meeting held on December 10, 2019, approved the above referenced agreement for the annual actuarial study of the South Bend Fire and Police pension funds in the amount of $3,500 per plan, with possibility of adding $1,300 per plan. 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, Linda M. Martin, Clerk Enclosure GARY A. GILOT GENEVIEVE E. MILLER ELIZABETH A. MARADIK LAURA L. O'SULLIVAN THERESE J. DORAU ACTUARIAL SERVICES AGREEMENT This Actuarial Services Agreement (this "Agreement") is made and entered into effect this day of December, 2019, 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"). 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 GASBu68 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. "1"ern anci 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 thirty (30) days of the date of final invoice. 3. 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 and agents from and against 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. CMC agrees to act in accordance with the standards of the actuarial profession. d. CMC agrees to carry a limit of liability of at least one million dollars in Errors & Omissions Insurance coverage, exclusive of defense costs. e. 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. Compliance witli I.aw — 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). Ownerslii p of Data and Work Product — The SPONSOR will permit the Indiana Public 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. Fees and Charges Annual GASB 68 Actuarial Valuation (Fire Department) $ 3,500 Annual GASB 68 Actuarial Valuation (Police Department) $ 3,500 Total: $ 7,000 Additions (if needed): Annual GASB 68 Discount Rate Determination (per plan) $ 1,300 2 ACTUARIAL SERVICES AGREEMENT IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective on the date first hereinabove recited. SPONSOR Name: 000,a( BY: m . rr .rd of pjjj� 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 12/2/2019 Name Daniel Parker Department Admin & Finance BPW Date 12/10/2019 Phone Extension 9822 �...........�................ �............. Required Prior to Submittal to Board BPW Attorney Attorney Name Clara Daniels Dept. Attorney Z Attorney Name Elliot Anderson _ Purchasing Z Michael Schmidt Check the AIT., opriate Item Type .- lieq!,, ❑� Professional Services Agreement 0 Contract E] Open Market Contract 0 Amendment/Addendum ❑ Bid Opening ❑ Bid Award Quote Opening El Quote Award EJ Proposal Opening EJ C/O & PCA No. Chg. Order, No. F-1 Traffic Control Other: Retwired Information (1,16r All Submissions F Proposal Special Purchase, QPA Q Req. to Advertise ❑ Title Sheet ❑ Reject Bids/Quotes PCA Resolution Q Ease./Encroach Company or Vendor Name Cavanaugh MacDonald Consulting, LLC ................... New Vendor ❑ Yes❑ If Yes, Approved by Purchasing ® No MBE/WBE Contractor ❑ MBE Completed E-Verify Form Attached EJYes ❑ WBE . ] No Project Name ..................ITITITITmm... Project Number xliters w..,. _.... �... .. Funding Source l-°°��rcl� lite s Pension fund #701 & Police Pension Fund #702 Account No. 701-0903-645..,, - _ � � 31-06 702-0803-645.31-06 with otential additional $2.600 if needed; tota Amount $ 7,000 p.. 1 $9,600 Terms of Contract $3,500 per plan, with possibilit oyf adding $1,300 per plan Purpose/Description Annta,al actuarial study of City pension funds as required by GASB 68. INPRS selects the vendor for this study and re uires, us to complete it. For Change..Orders fatly` Amount of ❑ $ increase E Decrease Previous Amount $ ........ __ ... ................ Increase % Current Percent of Change: Decrease.' .................. ojo........,.....,..................._..,.._,..,... New Amount $ Increase % Total Percent of Change: Decrease ( %A Time Extension Amount: New Completion Date: