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HomeMy WebLinkAbout4554 Vendor Subject Department Status Code Amount Begin Date End Date Review Date Insurance Comments Contract Number 4554 WILLIS NATIONAL ACTUARIAL PRACTICE Consultant - Actuarial Services City Clerk PRO File Class LEG 12-1 $20000.00 05/17/2006 11/30/2006 02/15/2008 GL $ AL $ E&O $ Insurance Total $ Insurance Review Date Vault 01/01/2008 PROFESSIONAL SERVICES AGREEMENT Willis National Actuarial Practice The City of Bremerton ("City") and Willis National Actuarial Practice ("Consultant"), referred to collectively as the "Parties," enter into the following Agreement for professional services: I. Scope: The Consultant agrees to perform the services more specifically described in the Scope of Work attached hereto as Exhibit A, which is incorporated by reference herein. The Scope of Work may be modified only pursuant to Section VILG. of this Agreement. If the Scope of Work provides for unspecified additional services such services shall only be performed upon the express written request of the City. Consultant further represents that the services furnished under this Agreement will be performed in accordance with generally accepted professional practices in effect at the time such services are performed. II. Term: The City and the Consultant agree that work will begin on the tasks described in Exhibit A immediately upon execution of this Agreement. The parties agree that the work described in Exhibit A is to be completed as provided for in the work schedule attached hereto as Exhibit B; provided however, that additional time shall be granted by the City for excusable delays or extra work as provided for in section IX (A) of this agreement. III. Compensation: In consideration of the services provided pursuant to this Agreement, the City shall pay Consultant in an amount not to exceed Twenty Thousand Dollars ($20,000). This amount assumes that the presentation and discussion of the report by the actuarial team as describe in the scope of work will be done by conference call. This approach is effective, will facilitate proceeding more rapidly and keeps expense down. Should a member of Consultant's team be asked to attend a meeting in person, travel expense will be billed at cost in addition to the aforementioned compensation. Consultant's charges and bills shall conform to the fee schedule attached hereto as Exhibit C and incorporated herein by this reference. \ \ The C~nsultant shall submit regular billing statements detailing work performed and amount charged on each task or portion thereof. The descriptions shall conform to and fall within the categories set out in the Scope of Work and/or Fee Schedule. Upon receipt of a conforming billing statement, the City shall promptly process payment. PROVIDED, HOWEVER, the City reserves the right to prioritize scoped work and accelerate and/or delay work tasks under the time frame set forth in Section II herein. The Consultant's labor rates and bil-ling fees shall be as delineated in Exhibit C. Bremerton/Willis National Actuarial Practice Valuate Retiree Medical Plan Costs Page 1 of9 Consultant shall not perform work beyond the Scope of Work, nor shall be compensated for such work, unless the Scope of Work or amount of compensation is modified pursuant to this Agreement. Consultant shall only be compensated for additional services if requested pursuant to Section I and, if not otherwise provided, such compensation shall be in accordance with Exhibit C. If a billing statement does not conform to this Agreement, the City may withhold payment until the statement is brought into compliance. Such withholding does not relieve Consultant of its obligations under this Agreement. IV. Relationship of Parties: Consultant represents that it is skilled in the matters addressed in the Scope of Work and is performing independent functions and responsibilities within its field of expertise. Consultant and its personnel are independent Consultants and not employees of the City. Consultant and its personnel have no authority to bind the City or to control the City's employees and other Consultants. None of the benefits provided by the City to its employees, including, but not limited to, compensation, insurance, and unemployment insurance are available from the City to the employees, agents, representatives, or sub-Consultants of the Consultant. Consultant will be solely and entirely responsible for its acts and for the acts of Consultant's agents, employees, representatives and sub-Consultants during the performance of this Agreement. The City may, during the term of this Agreement, engage other independent Consultants to perform the same or similar work. As an independent Consultant, Consultant is responsible for its own management. The City's administration and enforcement of this Agreement shall not be deemed an exercise of managerial control over Consultant or its personnel. As an independent Consultant, Consultant is responsible for payment of all taxes and licensing fees necessary to perform its obligations under this Agreement. These taxes and fees include but are not limited to State industrial insurance, Business & Occupation, State professional licensing, and City business licensing. If any taxes or fees due the City have been declared delinquent, the City may withhold the delinquent amount, plus any additional charges arising from the delinquency, from any payments due Consultant. V. Indemnification: Consultant shall defend, indemnify and hold the City, its officers, officials, employees, agents and volunteers harmless from any and all claims, injuries, damages, losses or suits, including all legal costs and attorney fees, arising out of or in connection with the performance of this Agreement, except for that portion of the injuries and damages caused by the City's sole negligence. The City's review or acceptance of any of the work when completed shall not be grounds to avoid any of these covenants of indemnification. Bremerton/Willis National Actuarial Practice Valuate Retiree Medical Plan Costs Page 2 of9 Should a court of competent jurisdiction determine that this Agreement is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the Consultant and the City, its officers, officials, employees, agents and volunteers, the Consultant's liability hereunder shall be only to the extent of the Consultant's negligence. IT IS FURTHER SPECIFICALLY AND EXPRESSLY UNDERSTOOD THAT THE INDEMNIFICATION PROVIDED HEREIN CONSTITUTES THE CONSULTANT'S WAIVER OF IMMUNITY UNDER INDUSTRIAL INSURANCE, TITLE 51 RCW, SOLELY FOR THE PURPOSES OF THIS INDEMNIFICATION. THE PARTIES FURTHER ACKNOWLEDGE THAT THEY HAVE MUTUALLY NEGOTIATED THIS WAIVER. The provisions of this section shall survive the expiration or termination of this Agreement. VI. Insurance: The Consultant shall procure and maintain for the duration of the Agreement, Professional Liability insurance with limits no less than $1,000,000 limit per occurrence/claim. Any payment of deductible or self insured retention shall be the sole responsibility of the Consultant. All required policies shall be provided on an "occurrence" basis except professional liability insurance (if required), which may be provided on a "claims-made" basis. VII. General Conditions: A. Reports and Information: When requested by the City, Consultant shall furnish periodic reports and documents on matters covered by this Agreement. The reports and documents shall be furnished in the time and form requested. Consultant shall maintain accounting records in accordance with Generally Accepted Accounting Principles (GAAP) to substantiate all billed amounts. B. Ownership and Use of Records and Documents: Original documents, drawings, designs and reports, including those in electronic format, developed under this Agreement are the property of the City. All written information submitted by the City to the Consultant in connection with the services performed by the Consultant under this Agreement will be safeguarded by the Consultant to at least the same extent as the Consultant safeguards like information relating to its own business. If such information is publicly available or is already in Consultant's possession or known to it, or is BremertonlWillis National Actuarial Practice Valuate Retiree Medical Plan Costs Page 3 of9 rightfully obtained by the Consultant from third parties, Consultant shall bear no responsibility for its disclosure, inadvertent or otherwise. All data, documents and files created by Consultant under this Agreement may be stored at Consultant's office in Milwaukee, Wisconsin. Consultant shall make such data, documents, and files available to the City upon its request at all reasonable times for the purpose of editing, modifying and updating as necessary until such time as the City is capable of storing such information in the City's offices. Duplicate copies of this information shall be provided to the City upon its request, and at reasonable cost. All documents, including all reports, drawings, specifications, computer software or other items prepared or furnished by Consultant pursuant to this Agreement, are instruments of service with respect to the project and are the property of the City. Any reuse by the City for other than the specific purpose intended will be at City's sole risk. C. Work Performed at Consultant's Risk: Consultant shall take all precautions necessary and shall be responsible for the safety of its employees, agents, and sub- consultants in the performance of the work hereunder and shall utilize all protection necessary for that purpose. All work shall be done at Consultant's own risk, and Consultant shall be responsible for any loss of or damage to materials, tools, or other articles used or held for use in connection with the work. D. Place of Work: The Consultant shall perform the work authorized under this Agreement at its offices in Milwaukee, Wisconsin. Meetings with the City staff as described in Exhibit A, Scope of Work, shall take place at the City's offices, or at locations mutually agreed upon by the parties. E. Entire Agreement: This Agreement and its Exhibits constitutes the entire agreement between the Parties, and the Parties acknowledge that there are no other agreements, written or oral, that have not been set forth in the text of this Agreement. F. Severability: Should any part of this Agreement be found void, the balance of the Agreement shall remain in full force and effect. G. Modification: This Agreement may only be modified by written instrument signed by both Parties. H. Written Notices: All communications regarding this Agreement shall be sent to the parties at the addresses listed below by registered or 1 st class mail, or by personal service, and shall be deemed sufficiently given if sent to the addressee at the address stated in this Agreement or such other address as may be hereafter specified in writing. Bremerton/Willis National Actuarial Practice Valuate Retiree Medical Plan Costs Page 4 of9 City Address City of Bremerton Attn: Paula Johnston, City Clerk 345 6th Street, Suite 600 Bremerton, W A 98337 Consultant Address Willis National Actuarial Practice Attn: C fe.te.. AV\.det$:>1A) 330 E. Kilbourn Avenue, Suite 1400 Milwaukee, WI 53202-3195 1. Waiver: Failure to enforce any provision of this Agreement shall not be deemed a waiver of that provision. Waiver of any right or power arising out of this Agreement shall not be deemed waiver of any other right or power. J. Non-Waiver of Breach: The failure of the City to insist upon strict performance of any of the covenants and agreements contained herein, or to exercise any option herein conferred in one or more instances shall not be construed to be a waiver or relinquishment of said covenants, agreements or options, and the same shall be and remain in full force and effect. K. Compliance with Laws: Consultant shall comply with all applicable Federal, State, and local laws in performing its obligations under this Agreement. L. Choice of Law and Venue: This Agreement shall be interpreted according to the laws of the State of Washington. Any judicial action to resolve disputes arising out of this Agreement shall be brought in Kitsap County Superior Court. M. Attorneys' Fees: In the event of litigation to enforce any of the terms or provisions herein, each party shall pay all its own costs and attorney's fees. N. Assignment: Any assignment of this agreement by the Contractor without the written consent of the City shall be void. VIII. Nondiscrimination: Consultant shall not discriminate in employment or services to the public on the basis of race, color, national origin, sex, religion, age, marital status, or disability, except for employment actions based on bona fide occupational qualification. IX. Termination: This Agreement shall remain in force until completion and acceptance of the services, terminated by written instrument upon mutual consent, or by the City of Bremerton for convenience. This Agreement may be immediately terminated for cause by a Party if the other Party substantially fails to perform through no fault of the terminating Party, and the non-performing Party does not commence correction of the failure of performance within thirty (30) days of the terminating Party's sending notice to the non-performing Party. Any Notice by Consultant shall include a report showing the status of all items listed in the Scope of Work current through the termination date. BremertonlWillis National Actuarial Practice Valuate Retiree Medical Plan Costs Page50f9 If the City receives reimbursement by any federal, state, or other source for work described in Section I herein, and that funding is withdrawn, reduced or limited in any way, or the project is cancelled or substantially reduced after the execution date of this Agreement and prior to the completion of the work, the City may summarily terminate this Agreement. A. Excusable Delays: The right of Consultant to proceed shall not be terminated nor shall Consultant be charged with liquidated damages for any delays in the completion of the work due to: 1) any acts of the federal government in controlling, restricting, or requisitioning materials, equipment, tools, or labor by reason of war, national defense, or other national emergency; 2) any acts of the City, its consultants, or other public agencies causing such delay; and 3) causes not reasonably foreseeable by the parties at the time of the execution of the Agreement that are beyond the control and without the fault or negligence of the Consultant, including, but not restricted to, acts of God, fires, floods, strikes, or weather of unusual severity. PROVIDED, HOWEVER, that the Consultant must promptly notify the City within ten (10) calendar days in writing of the cause of the delay. If, on the basis of the facts and the terms of this Agreement, the delay is properly excusable, the City shall, in writing, extend the time for completing the work for a period of time commensurate with the period of excusable delay. B. Rights Upon Termination: In the event of termination, the City shall pay for all services performed by the Consultant to the effective date of termination, as described on a final invoice submitted to the City. After termination, the City may take possession of all records and data within the Consultant's possession pertaining to this project which may be used by the City without restriction. Any such use not related to the project which Consultant was contracted to perform shall be without liability or legal exposure to the Consultant. c~~ By: CaY-S 8fj?~1'YJ~11 its: MpglJr Date: ;.;'-/7- 01, Date: c~ By: WI [rht" f f/, CR t'l1" /,.tr~ 1" - t(J ;NiJ <J+- its: S-!~/2t.J.D6 W/S~tJ~J, ~ :r,-r R:\Legal\Legal\Contracts\FINANCE\Retiree Medical Plan Cost Valuation.doc Bremerton/Willis National Actuarial Practice Valuate Retiree Medical Plan Costs Page 6 of9 EXHIBIT A SCOPE OF WORK BACKGROUND The City of Bremerton provides lifetime retiree medical and long term care benefits. An upcoming accounting change, GASB No. 45, which will require municipal employers to begin to disclose retiree medical expense and liability in their financial statements, will be effective in a couple of years. The City wants a valuation of these programs to find out how large these amounts are and to allow time for planning for the upcoming accounting change and managing the expense. Also, the long term care benefit is self insured. The City wants to determine whether it would be more cost effective to insure this program or keep it self insured. SCOPE OF SERVICES Our services include: . Determine the actuarial assumptions, . collect data plan information, . perform the valuation, . discuss the preliminary results, . make any revisions as needed and discuss, . provide a final report, signed by a Fellow of the Society of Actuaries, which meets the GASB Statement No. 45 accounting standards and provides all of the financial information needed for the City's financial statement, and shows whether insuring the LTC benefit would be more cost effective, and . answer follow up questions as needed. BremertonlWillis National Actuarial Practice Valuate Retiree Medical Plan Costs Page 7 of9 EXHIBIT B WORK SCHEDULE At the onset of the project Consultant will discuss the data request to make the process as effective and efficient as possible as well as discuss actuarial assumptions. Once Consultant has received the necessary data the draft valuation report will be ready for discussion within two weeks. Consultant will discuss the results and confirm that it has interpreted the plan provisions properly. Part of the project entails determining whether insuring the long term care benefit would be cost effective, which will require getting cost information on LTC policies. This may take additional time depending on the . . carner responSIveness. Bremerton/Willis National Actuarial Practice Valuate Retiree Medical Plan Costs Page80f9 EXHIBIT C LABOR RATES AND BILLING FEES Maximum fee to provide services described in Scope of Work shall be $20,000. Consultants shall keep track of time and will bill for services at the rate of $300 per hour and invoice the actual accrued time. The fee assumes that Consultant's presentation and discussion of the report by the actuarial team will be done by conference call. Should a member of the actuarial team be asked to attend in person, the charge for travel expense will be billed at cost. Bremerton/Willis National Actuarial Practice Valuate Retiree Medical Plan Costs Page 9 of9