HomeMy WebLinkAboutR-2009-029 Actuarial Services Agreement with Milliman, Inc. for Pension Plans and Post-Employment BenefitsRESOLUTION NO. R-2009-029
A RESOLUTION authorizing the execution of a Consulting Services Agreement with Milliman, Inc.
Actuaries and Consultants for an actuarial study for the purposes of determining
the City's estimated liabilities relating to pensions and other post -employment
benefits for LEOFF and PERS members in order to meet the City's financial
reporting requirements and bond issuance disclosure obligations.
WHEREAS, every five years the City is required to have an actuarial study performed for the
purposes of determining an estimated liability for pension and other postemployment benefits; and
WHEREAS, for the December 315', 2008 Financial Statements this study is required by
Generally Accepted Accounting Principles under amended regulations GASB 43 and 45; and
WHEREAS, Milliman, Inc. has experience and expertise in providing actuarial analysis and has
agreed to provide those services on behalf of the City under the terms and conditions of the attached
and incorporated Professional Services Agreement; and
WHEREAS, the actuarial pension and employment benefit analysis requested from Milliman,
Inc. is required information for documents pertaining to the issuance of publicly offered bonds issued
by the City of Yakima and;
WHEREAS, the City Council deems it to be in the best interests of the City of Yakima to have
an actuarial study of retirement and other postemployment benefits performed for the December 315`,
2008 Financial Statements, Now, Therefore
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City Manager is hereby authorized and directed to execute the attached and incorporated
Consulting Services Agreement with Milliman, Inc. for the provision of professional actuarial analysis
of the City's pension and post -employment benefits.
ADOPTED BY THE CITY COUNCIL this 3'd day of February, 2009.
ATTEST:
City Clerk
res/Milliman Actuarial Consulting
Agreement
0 i
David dler, Mayor
CONSULTANT AGREEMENT
FOR PROFESSIONAL SERVICES
for
City of Yakima, Washington
This Agreement is made and entered into on this max' day of February, 2009, between
the CITY OF YAKIMA, WASHINGTON, a municipal corporation hereinafter referred to
as "CLIENT", and MILLIMAN, INC., hereinafter referred to as "CONSULTANT"
CLIENT and CONSULTANT for mutual consideration hereinafter set forth, agree as
follows:
OBJECTIVES
This Agreement represents the terms and conditions agreed upon by the parties hereto
for CONSULTANT'S services provided on behalf of CLIENT as specifically described in
Appendix A, attached hereto and incorporated herein by this reference. The specified
services may be modified by written agreement of the parties to include, in addition to
the specifically described services, general actuarial consulting services.
II. SCOPE OF SERVICES
The CONSULTANT shall provide CLIENT actuarial valuations in accord with the
specifications set forth in Appendix A, attached hereto and incorporated herein by this
reference, for the City of Yakima Firefighter's Pension Plan at the agreed cost of Eight
Thousand Dollars ($8,000.00); of the Police Pension Plan at the agreed cost of Eight
Thousand Dollars ($8,000.00); and of other post -employment benefits for Law
Enforcement Officers and Firefighters (LEOFF 1) and retirees accounted for in the City's
Firefighters Pension Fund and Police Pension Plan, accounted for in the City's General
Fund, including Medical Benefits and Long -Term Care, at the agreed total cost of
Sixteen Thousand Dollars ($16,000.00). Solely for the purpose of calculating the City's
liabilities CONSULTANT shall also provide actuarial valuations for other post -
employment benefits for other non-LEOFF 1 retirees eligible to remain on the City's self-
insured medical plan at the agreed cost of Eighteen Thousand Dollars ($18,000.00).
The total compensation agreed upon between the parties hereto for the services
specified herein and included in Appendix A — "Actuarial Valuations" shall not exceed
Fifty Thousand Dollars ($50,000.00) unless additional work and compensation is agreed
to in writing between the parties prior to any additional services being provided on behalf
of CLIENT. In the event the parties agree, in writing, to CONSULTANT'S provision of
additional services, said additional services shall be compensated at the hourly rates set
forth in Appendix A, plus pre -approved out-of-pocket expenses incurred.
III. PAYMENT
a. The CONSULTANT will use its best efforts to submit a complete final
report in accord with the work scope attached hereto as Appendix A within the time
agreed upon by the parties hereto. CONSULTANT shall bill CLIENT for the complete
final report upon submission of the report to CLIENT. CLIENT shall provide payment to
CONSULTANT as agreed herein within thirty (30) days after CLIENT'S receipt of the
final report and written acceptance thereof. CLIENT'S written acceptance or denial of
the complete final report shall be provided to CONSULTANT within ten (10) days of
CLIENT'S receipt thereof. In the event of rejection of the final report CLIENT shall
specify any deficiencies observed in the written notice to CONSULTANT. Upon receipt
of CLIENT'S written explanation of deficiencies in the complete final report the
CONSULTANT may resubmit an amended report that addresses the problem(s)
identified.
b. The CONSULTANT shall not be paid for services rendered under the
Agreement unless and until they have been performed to the satisfaction of the attached
scope of work and acceptance of the CLIENT, which shall not be unreasonably withheld
or delayed.
c. In the event the CONSULTANT has failed to perform any substantial
obligation to be performed by the CONSULTANT under this Agreement and such failure
has not been cured within ten (10) days following notice from the CLIENT, then the
CLIENT may, in its sole discretion, upon written notice to the CONSULTANT, withhold
any and all monies due and payable to the CONSULTANT, without penalty until such
failure to perform is cured or otherwise adjudicated. "Substantial" for purposes of this
Agreement means faithfully fulfilling the terms of the Agreement with variances only for
technical or minor omissions or defects.
d. Unless otherwise provided for in this Agreement or any exhibits or
attachments hereto, the CONSULTANT will not be paid for any billings or invoices
presented for payment prior to the execution of the Agreement or after its termination.
IV. RETAINER
Retainer is waived for CLIENT.
V. STANDARD PROVISIONS
1. TERM OF AGREEMENT
The term of this Agreement shall begin on the date last executed below, and
shall expire upon CLIENT'S receipt and acceptance of the completed final report
described in the attached Appendix A, and issuance of payment to CONSULTANT in
accord with ,the terms agreed upon herein. The Agreement may also be terminated by
either party upon thirty (30) days written notice, unless terminated earlier by the CLIENT
in accordance with subparagraph 6 of this Section of this Agreement. Upon termination,
the CONSULTANT shall be entitled to compensation to the extent of actual work
performed and provided to the CLIENT, consistent with the compensation provisions set
forth in paragraph III, above..
2. PARTY REPRESENTATIVES
- Each party to this Agreement shall have a representative. Each party may
change its representative upon providing written notice to the other party. The parties'
representatives are as follows:
a. For CONSULTANT:
Name of Representative:
Title:
Mailing Address:
City, State and Zip Code:
Telephone Number:
Fax Number:
E-mail Address:
b. For CLIENT:
Name of Representative:
Title:
Mailing Address:
City, State and Zip Code:
Telephone Number:
Fax Number:
E-mail Address:
Frank Thoen
Principal
1301 Fifth Avenue, Suite 3800
Seattle, WA 98101
206-504-5695
206-623-3485
frank.thoen@milliman.com
Tim Jensen
Treasury Services Officer
129 North Second Street
Yakima, WA 98901
509-576-6639
509-576-6364
tjensen@ci.yakima.wa.us
3. AMENDMENTS AND CHANGES IN WORK
a. CONSULTANT shall use reasonable efforts to identify errors in data and
obtain corrections to erroneous data, but CONSULTANT cannot warrant the correctness
of data supplied by CLIENT or other parties, nor can CONSULTANT be responsible for
data not provided in a timely manner.
Any information received from CLIENT will be considered "Confidential
Information." However, information received from CLIENT will not be considered
Confidential Information if (a) the information is or comes to be generally available to the
public during the course of CONSULTANT'S work; or (b) was independently developed
by CONSULTANT without resort to information from the CLIENT.
In the event of any errors or omissions by the CONSULTANT in the performance of
any work required under this Agreement, the CONSULTANT shall make any and all
necessary corrections without additional compensation. All work submitted by the
CONSULTANT shall be certified by the CONSULTANT and checked for errors and
omissions. Except as otherwise provided in this Agreement, the CONSULTANT shall be
responsible for the accuracy of the work, even if the work is accepted by the CLIENT.
b. No amendment, modification or renewal shall be made to this Agreement
unless set forth in a written Amendment, signed by both parties and attached to this
Agreement. Work under an Amendment shall not proceed until the Amendment is duly
executed by the CLIENT.
4. LIMITATION OF LIABILITY, HOLD HARMLESS AND INDEMNIFICATION
a. CONSULTANT will perform all services in accordance with applicable
professional standards. The parties agree that CONSULTANT, its officers,
directors, agents and employees, shall not be liable to CLIENT, under any theory
of law including negligence, tort, breach of contract or otherwise, for any
damages in excess of five (5) times the professional fees paid to CONSULTANT
with respect to the work in question. In no event shall CONSULTANT be liable for
any type of incidental or consequential damages. These specific limitations shall
not apply (i) in the event of the intentional fraud or willful misconduct of
CONSULTANT, or (ii) to CONSULTANT's indemnification obligations set forth in
Section 4(b) herein.
The parties recognize and agree that it is the intent of the parties, as
sophisticated parties represented by counsel, that the Limitation of Liability
section in this Agreement should be enforced in its entirety.
b. The CONSULTANT shall hold harmless, indemnify and defend the CLIENT,
its officers, officials, employees and agents, from and against any and all claims, actions,
suits, liability, losses, expenses, damages, and judgments of any nature whatsoever,
including costs and reasonable attorneys fees in defense thereof, for (i) injury, sickness,
disability or death to persons or damage to property, to the extent caused by or arising
out of the CONSULTANT'S acts, errors or omissions in the performance of this
Agreement, and (ii) claims that any deliverable supplied by the CONSULTANT infringes
any patent, copyright, trademark, trade name, or otherwise results in an unfair trade
practice. The CONSULTANT'S obligations hereunder shall not extend to injury,
sickness, death or damage caused by or arising out of the negligence of the CLIENT, its
officers, officials, employees or agents. In the event of the concurrent negligence of the
parties, the CONSULTANT'S obligations hereunder shall apply only to the percentage of
fault attributable to the CONSULTANT, its employees or agents.
c. In any and all claims against the CLIENT, its officers, officials, employees and
agents by any employee of the CONSULTANT, anyone directly or indirectly employed
by any of them, or anyone for whose acts any of them may be liable, the indemnification
obligation under this Section shall not be limited in any way by any limitation on the
amount or type of damages, compensation, or benefits payable by or for the
CONSULTANT under Worker's Compensation acts, disability benefits acts, or other
employee benefits acts, it being clearly agreed and understood by the parties hereto that
the CONSULTANT expressly waives any immunity the CONSULTANT might have had
under such laws. By executing the Agreement, the CONSULTANT acknowledges that
the foregoing waiver has been mutually negotiated by the parties and that the provisions
of this Section shall be incorporated, as relevant, into any agreement the CONSULTANT
makes with any other subconsultant or agent performing work hereunder.
d. Subject to the limitation in section 4(b) above, the CONSULTANT shall hold
harmless, indemnify and defend the CLIENT, its officers, officials, employees and
agents, from and against any and all third party claims, actions, suits, liability, losses,
expenses, damages, and judgments of any nature whatsoever, including costs and
reasonable attorneys fees in defense thereof, to the extent caused by or arising out of
the CONSULTANT's negligent act or omission in the performance of this Agreement, or
breach of any applicable laws or statutes by the CONSULTANT, the CONSULTANT'S
employees or agents.
e. CLIENT shall hold harmless, indemnify and defend the CONSULTANT, its
officers, officials, employees and agents, from and against any and all third party claims,
actions, suits, liability, losses, expenses, damages, and judgments of any nature
whatsoever, including costs and reasonable attorneys fees in defense thereof, to the
extent arising out of any bond or securities offering by CLIENT. CLIENT shall not be
required to indemnify CONSULTANT in the event of CONSULTANT's intentional fraud
or willful misconduct.
5. TOOL DEVELOPMENT
CONSULTANT shall retain all rights, title and interest (including, without
limitation, all copyrights, patents, service marks, trademarks, trade secret and other
intellectual property rights) in and to all technical or internal designs, methods, ideas,
concepts, know-how, techniques, generic documents and templates that have been
previously developed by CONSULTANT or developed during the course of the provision
of the Services provided such generic documents or templates do not contain any
CLIENT Confidential Information or proprietary data. Rights and ownership by
CONSULTANT of original technical designs, methods, ideas, concepts, know-how, and
techniques shall not extend to or include all or any part of the CLIENT'S proprietary data
or CLIENT Confidential Information. To the extent that CONSULTANT may include in
the materials any pre-existing CONSULTANT proprietary information or other protected
CONSULTANT materials, CONSULTANT agrees that CLIENT shall be deemed to have
a fully paid up license to make copies of the CONSULTANT owned materials as part of
this engagement for its internal business purposes and provided that such materials
cannot be modified or distributed outside the CLIENT without the written permission of
CONSULTANT except as permitted in Section 6 (Limited Distribution to Third Parties).
6. LIMITED DISTRIBUTION TO THIRD PARTIES
CONSULTANT's work is prepared solely for the internal use and benefit of CLIENT in
accordance with its statutory and regulatory requirements and for the usual and
customary use of such work in the CLIENT's Comprehensive Annual Financial Report
(CAFR). CONSULTANT recognizes that materials it delivers to CLIENT may be public
records subject to disclosure to third parties, however, CONSULTANT does not intend to
benefit and assumes no duty or liability to any third parties who receive CONSULTANT's
work and may include disclaimer language on its work product so stating. CLIENT
agrees not to remove any such disclaimer language from CONSULTANT's work. To the
extent that CONSULTANT's work is not subject to disclosure under applicable public
records laws, CLIENT agrees that it shall not disclose CONSULTANT's work product to
third parties without CONSULTANT's prior written consent; provided, however, that
CLIENT may distribute CONSULTANT's work to (i) its professional service providers
who are subject to a duty of confidentiality and who agree to not use CONSULTANT's
work product for any purpose other than to provide services to CLIENT, or (ii) any
applicable regulatory or governmental agency, as required. CLIENT specifically asserts
that it shall place no reliance whatsoever upon CONSULTANT's work product to support
funding decisions for the Plan groups identified in Appendix A of this Agreement.
7. INSURANCE
Prior to providing services under this Agreement, the CONSULTANT shall
provide Certificates of Insurance reasonably satisfactory to the CLIENT as evidence that
policies providing the following coverage and limits of insurance are in full force and
effect. The CLIENT and the CLIENT'S officers, principals, employees, representatives,
and agents shall be designated as additional insureds on all such policies except for
professional liability and Worker's Compensation. The commercial general and
automobile liability insurance shall be primary to the extent covered as additional
insureds and other insurance maintained or carried by the CLIENT shall be separate and
distinct and shall not be contributing with the insurance listed hereunder.
a. Commercial general liability insurance, including personal injury liability,
blanket contractual liability, and broad -form property damage liability coverage. The
combined single limit for bodily injury and property damage shall not be Tess than one
million dollars ($1,000,000) per occurrence/aggregate.
b. Automobile bodily injury and property damage liability insurance covering
owned, non -owned, rented, and hired cars. The combined single limit for bodily injury
and property damage shall not be less than one million dollars ($1,000,000) per
occurrence.
c. Statutory workers' compensation and employer's liability insurance as required
by state law.
d. Professional liability insurance. The limit of professional liability insurance
coverage shall not be less than one million dollars ($1,000,000) for any one claim and
policy aggregate.
The CLIENT and the CLIENT'S officers, principals, employees, representatives,
and agents shall have no obligation for payment of premiums because of being named
as additional insureds under such insurance None of the policies issued pursuant to the
requirements contained herein shall be canceled, allowed to expire, or materially
changed until thirty (30) days after written notice to the CITY of such intended
cancellation, expiration or material change.
The CONSULTANT or its broker shall make available for review a copy of any
and all insurance policies specified in this Contract upon request of the CLIENT.
8. TERMINATION
a. The CLIENT may terminate this Agreement in whole or in part whenever the
CLIENT determines, in its sole discretion, that such termination is in the best interests of
the CLIENT. The CLIENT may terminate this Agreement upon giving thirty (30) days
written notice by Certified Mail to the CONSULTANT'S Representative. In that event,
the CLIENT shall pay the CONSULTANT for all costs incurred by the CONSULTANT in
performing the Contract up to the termination date. Payment shall be made in
accordance with Section III of this Contract.
b In the event that funding for the services provided under this Agreement is
withdrawn, reduced or limited in any way after the effective date of this Agreement, the
CLIENT may summarily terminate this Agreement notwithstanding any other termination
provision of the Agreement. Termination under this paragraph shall be effective upon
the later of (a) the date specified in the written notice of termination sent by the CLIENT
to the CONSULTANT, or (b) the date such written notice is received by the
CONSULTANT. After the effective termination date, no charges incurred under this
Agreement are allowable.
c. If the CONSULTANT breaches any of its obligations hereunder, and fails to
cure the breach within ten (10) days of written notice to do so by the CLIENT, the
CLIENT may terminate this Agreement, in which case the CLIENT shall pay the
CONSULTANT only for the costs of services accepted by the CLIENT, in accordance
with Section III of this Agreement. Upon such termination, the CLIENT, at its discretion,
may obtain performance of the work elsewhere, and the CONSULTANT shall bear all
reasonable costs and expenses incurred by the CLIENT in completing the work and all
damage sustained by the CLIENT by reason of the CONSULTANT'S breach, subject to
Section 4.
9. ASSIGNMENT, DELEGATION, AND SUBCONTRACTING
a. The CONSULTANT shall perform the terms of the Agreement using only its
bona fide employees or agents, and the obligations and duties of the CONSULTANT
under this Contract shall not be assigned, delegated, or subcontracted to any other
person or firm without the prior express written consent of the CLIENT.
b. The CONSULTANT warrants that it has not paid nor has it agreed to pay any
company, person, partnership, or firm, other than a bona fide employee working
exclusively for CONSULTANT, any fee, commission, percentage, brokerage fee, gift, or
other consideration contingent upon or resulting from the award or making of this
Agreement.
10. NON -WAIVER OF RIGHTS
The parties agree that the excuse or forgiveness of performance, or waiver of
any provision(s) of this Agreement does not constitute a waiver of such provision(s) or
future performance, or prejudice the right of the waiving party to enforce any of the
provisions of this Agreement at a later time.
11. INDEPENDENT CONSULTANT
a The CONSULTANT'S services shall be furnished by the CONSULTANT as an
Independent CONSULTANT and not as an agent, employee or servant of the CLIENT.
The CONSULTANT specifically has the right to direct and control CONSULTANT'S own
activities in providing the agreed services in accordance with the specifications set out in
this Agreement.
b. The CONSULTANT acknowledges that the entire compensation for this
Agreement is set forth in Section II and III of this Agreement, and the CONSULTANT is
not entitled to any CLIENT benefits, including, but not limited to: vacation pay, holiday
pay, sick leave pay, medical, dental, or other insurance benefits, fringe benefits, or any
other rights or privileges afforded to CLINET'S employees.
c. The CONSULTANT shall have and maintain complete responsibility and
control over aII of its subconsultants, employees, agents, and representatives. No
subconsultant, employee, agent or representative of the CONSULTANT shall be or
deem to be or act or purport to act as an employee, agent or representative of the
CLIENT.
d. The CONSULTANT shall assume full responsibility for the payment of all
employment related taxes, or other form of taxes, fees, licenses, excises, or payments
lawfully owed by CONSULTANT hereunder and required by any City, federal or state
legislation which is now or may be enacted during the term of this Agreement as to all
persons employed by the CONSULTANT and as to all duties, activities and
requirements by the CONSULTANT in performance of the work on this project and
under this Agreement and shall assume exclusive liability therefore, and meet all
requirements thereunder pursuant to any rules or regulations.
e. The CONSULTANT shall not be deemed to be a "named fiduciary" or "plan
administrator" as these terms are defined under ERISA or any similar or successor law
12. COMPLIANCE WITH LAWS
The CONSULTANT shall comply with all applicable federal, state and local laws,
rules and regulations in performing this Agreement.
13. INSPECTION OF BOOKS AND RECORDS
The CLIENT may, at reasonable times and upon reasonable advance notice,
inspect the books and records of the CONSULTANT relating to the performance of this
Agreement. The CONSULTANT shall keep all records required by this Agreement for six
(6) years after termination of this Agreement for audit purposes.
14. NONDISCRIMINATION
The CONSULTANT, its assignees, delegatees or subconsultants shall not
discriminate against any person in the performance of any of its obligations hereunder
on the basis of race, color, creed, ethnicity, religion, national origin, age, sex, marital
status, veteran status, sexual orientation or the presence of any disability.
Implementation of this provision shall be consistent with RCW 49.60.400.
15. OWNERSHIP OF MATERIALS/WORK PRODUCED
a. Subject to Section 5 (TOOL DEVELOPMENT) and Section 6 (LIMITED
DISTRIBUTION TO THIRD PARTIES), material produced in the performance of the
work under this Agreement shall be as works for hire as defined by the U.S. Copyright
Act of 1976 and shall be owned by the CLIENT. This material includes, but is not limited
to, books, computer programs, plans, specifications, documents, films, pamphlets,
reports, sound reproductions, studies, surveys, tapes, and/or training materials.
b. An electronic copy of all or a portion of material produced shall be submitted
to the CLIENT upon request or at the end of the job.
16. DISPUTES
In the event of any dispute arising out of or relating to the engagement of
CONSULTANT by CLIENT, the parties agree that the dispute will be resolved as follows:
(a) Mediation. In the event of any dispute arising out of or relating to the
engagement of CONSULTANT by CLIENT, the parties agree first to try in good faith to
settle the dispute voluntarily with the aid of an impartial mediator who will attempt to
facilitate negotiations. A dispute will be submitted to mediation by written notice to the
other party or parties. The mediator will be selected by agreement by the parties. If the
parties cannot agree on a mediator, a mediator will be designated by the American
Arbitration Association at the request of a party.
The mediation will be treated as a settlement discussion and therefore will be
confidential. Any applicable statute of limitations will be tolled during the pendency of
the mediation. Each party will bear its own costs in the mediation. The fees and
expenses of the mediator will be shared equally by the parties.
(b) Arbitration. If the dispute has not been resolved within 60 days after the
written notice beginning the mediation process (or a longer period, if the parties agree to
extend the mediation), the mediation will terminate, and the dispute will be resolved by
final and binding arbitration under the Commercial Arbitration Rules of the American
Arbitration Association. The arbitration shall take place before a panel of three
arbitrators. Within 30 days of the commencement of the arbitration, each party shall
designate in writing a single neutral and independent arbitrator. The two arbitrators
designated by the parties shall then select a third arbitrator. The arbitrators shall have a
background in either insurance, actuarial science or law. The arbitrators shall have the
authority to permit limited discovery, including depositions, prior to the arbitration
hearing, and such discovery shall be conducted consistent with the Federal Rules of
Civil Procedure. The arbitrators shall have no power or authority to award punitive or
exemplary damages. The arbitrators may, in their discretion, award the cost of the
arbitration, including reasonable attorney fees, to the prevailing party. Any award made
may be confirmed in any court having jurisdiction. Any arbitration shall be confidential,
and except as required by law, neither party may disclose the content or results of any
arbitration hereunder without the prior written consent of the other parties, except that
disclosure is permitted to a party's auditors and legal advisors
17. CHOICE OF LAW, JURISDICTION AND VENUE
a. This Agreement has been and shall be construed as having been made and
delivered within the State of Washington, and it is agreed by each party hereto that this
Agreement shall be governed by the laws of the State of Washington, both as to its
interpretation and performance.
b. Subject to the parties' agreement to mediate/arbitrate any disputes pursuant
to Section 16, any mediation, arbitration or other action at law, suit in equity, or judicial
proceeding arising out of this Agreement shall be instituted and maintained only in the
CITY OF YAKIMA, Washington.
18. SEVERABILITY
a. If a court of competent jurisdiction holds any part, term or provision of this
Agreement to be illegal, or invalid in whole or in part, the validity of the remaining
provisions shall not be affected and the parties' rights and obligations shall be construed
and enforced as if the Agreement did not contain the particular provision held to be
illegal or invalid; Provided, specifically and singularly with respect to Section V.
paragraphs 4(a) and 16 of this Agreement, if a court of competent jurisdiction
holds any part, term or provision of these two identified paragraphs to be illegal or
invalid, in whole or in part, the offending term or provision will be deemed to be
restated to reflect as nearly as possible the original intent of the Parties in
accordance with applicable law and the validity of the remaining provisions shall
not be affected.
b. If any provision of this Agreement is in direct conflict with any statutory
provision of the State of Washington, that provision which may conflict shall be deemed
inoperative and null and void insofar as it may conflict, and shall be deemed modified to
conform to such statutory provision.
c. Should either party determine that the severed or restated portions
substantially alter this Agreement so that the original intent and purpose of the
Agreement no longer exists, that party may, in its sole discretion, terminate this
Agreement.
19. NOTICES
Any notices shall be effective if personally served upon the other party or if
mailed by registered or certified mail, return receipt requested, to the addresses set out
in paragraph 2 of this Section. Notice may also be given by facsimile with the original to
follow by regular mail. Notice shall be deemed to be given three (3) days following the
date of mailing or immediately if personally served. For service by facsimile, service shall
be effective upon receipt during working hours. If a facsimile is sent after working hours,
it shall be effective at the beginning of the next working day.
20. ENTIRE AGREEMENT
The parties agree that this Agreement is the complete expression of its terms
and conditions. Any oral or written representations or understandings not incorporated
in this Agreement are specifically excluded.
VI AUTHORIZED SIGNATORS
MILLIMAN, INC.
By: 62&&
Frank Thoen, Principal
Date: 1/mi/20,”
CITY OF YAKIMA
By:
R. A. Zais, Jr' City Manager
Date:
Attest:
21.5 jog
City Clerk
City Contract No.
Resolution No. ,-,,2009-1029
Appendix A
Description of Consulting Services and Fees for the
Actuarial Valuations for the
City of Yakima
For the period commencing on the effective date of this Agreement this Schedule shall be
attached to and part of the Consulting Services Agreement executed by Milliman, Inc and
CLIENT
CONSULTANT agrees to provide the services below:
ACTUARIAL VALUATIONS AND CALCULATIONS OF UNFUNDED LIABILITIES
Firefighters' Pension Plan (FPP)
$ 8,000
Police Pension Plan (PPP)
8,000
Other Post -Employment Benefits (OPEB) for Law Enforcement Officers and
Firefighters Plan 1 (LEOFF 1) and retirees under the City's FPP and PPP
Includes Medical Benefits and Long -Term Care
16,000
OPEB for LEOFF 2 and Public Employees Retirement System (PERS)
members
18,000
Total
$50,000
CONSULTANT shall prepare reports that will include an executive summary, cash flow
projections, and actuarial information for accounting purposes. The reports will also include
appendices to summarize the actuarial assumptions used, the benefit provisions valued, claims
cost information, and the census data used.
The calculations will be done in compliance with GASB Statements Nos 25, 27, 43, and 45. The
accounting section of the reports will contain all schedules required for the financial statements
for the defined benefit pension plans and OPEB plans, as stated above.
The $50,000 fee includes the cost of one in-person meeting to present the report.
CONSULTANT's reports shall be completed and submitted to CLIENT within eight weeks of
receiving a signed contract, and all requested data.
Additional requested work shall be agreed upon by the parties in writing and will be on a time -
and -expense basis at CONSULTANT's standard billing rates shown below:
Consultant Hourly Rate
Senior Actuary $420
Supervising Actuary $335
Support Actuary $275
Senior Actuarial Analyst $205
Entry Analyst $180
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 1
For Meeting Of 2-3-2009
ITEM TITLE: A Resolution authorizing and directing the City Manager to execute an agreement
for actuarial services for certain pension. plans and other post -employment benefits provided by
the City of Yakima
SUBMITTED BY: Rita DeBord, Finance Director.
Tim Jensen, Treasury Services Offic
CONTACT PERSON/TELEPHONE: Tim Jensen, Treasury Services Officer 575-6070
SUMMARY EXPLANATION: As one of the many requirements for receiving an unqualified audit
opinion (the best opinion there is) on the City's Financial Statement, accounting regulations
mandate that cities the size of Yakima have an actuarial study of our own pension plans, (pre-
LEOFF 1 retirees), LEOFF 1 medical benefits and certain other post -employment benefits for all
employees every five years. The City's 2008 financial statements, to be issued in 2009, must
include an updated five-year actuarial study that includes some new costing provisions related to
0 medical costs to comply with the most recent accounting regulations. The contract attached for
your review and approval with Milliman Inc. will provide for those services at a total cost of
$50,000. Under the current accounting regulations, these services will not need to be performed
again until the 2013 Statements are issued in 2014.
Resolution _X_ Ordinance Other (Specify)
Contract X Mail to: Frank Thoen, Principal, Milliman, Inc. 1301 Fifth Ave. STE 3800 Seattle, WA 98101
Phone 206 504-5695 Funding Source General Fund/Fire Pension Fund
Employee Health Benefit Fund
APPROVED FOR SUBMITTAL:
City Manager
STAFF RECOMMENDATION: Adopt Resolution
BOARD/COMMISSION RECOMMENDATION:
COUNCIL ACTION:
Legal/BD
rev. effective 7/21/92