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24 Fiscal Management CITY COUNCIL AGENDA ITEM BRIEFING SHEET Agenda Item No.: Submittal Date: Originating Department: Presented By: 2-16-2009 Gene Anderson 24• Council Date: Finance 3-23-2009 RECOMMENDED MOTION: North Central Texas City Manager to negotiate Iland Move to approve a resolution authorizing an agreement the Governments for shared GASB 45 actuarial services and authorizing the execute all necessary documents. POLICY ISSUE(S): Fiscal Management ion of other The Governmental Accounting Standards Board Statement cie45 s. requires An employer's substantivetcommitment post-employment benefits (OPEB) programs offered by to provide OPEB triggers the standard. The City currently id OPEB so that it may be proper yhe evaluation will calculate the dollar amount of the City's liability for order to reflected on the City balance sheet along with providing other Council approve recommending that he minimize the cost of this study and future studies, the Cy using a shared actuarial services agreement available through North Central Texas proposals for actuarial seirvices Governments (NCTCOG). The NCTCOG coordinate quest or these Usin the services negotiating with several actuarial consultants to obtaiNCTCOGfwas able to obtain fa ogable prospect of multiple city valuations as a negotiating point, pricing for this service. So far, 101 cities have taken advantage of the NCTCOG shared services agreement This agreement. The estimated cost of services for the City of Paris is $,7whhch was based on the amount is within the budgeted amount in the City s 200809 budget ($10,000) City contracting on its own for these services. It will take approximately 90 days from signing of the contract until the study is complete. BOARD/COMMISSION RECOMMENDATION: NONE EXHIBITS: Resolution, Master Agreement, Pricing Estimate, Interlocal Agreement BUDGET INFO: ACTION: ❑ Financial Report E] Minute Order Expense $5,720 ❑ Department Report ® Resolution Budgeted Amt. $10,000 ❑ Presentation ❑ Ordinance YTD Actual $0 ❑ Public Hearing ❑ Other Acct. Name Contract Services Acct. Number 01-0318-21-00 and 10-0318-81-00 FISCAL NOTES: None REVIEWED AND APPROVED BY: EMS/IT ®Finance ❑ Fire ® Administration ® City Clerk ❑ Community Development ❑ ❑ Municipal Court ® Legal ❑ Library ❑ Police ❑ Eng./Public Works ❑ Utilities Revised 2/04/08 City of Paris UUU11~, DRAFT attorney\reswork\current\GASB & NCTCOG Agreements Actuarial Services Res 2009 RESOLUTION NO. INTO PARIS, A RESOLUTION OF THE CITY CITY COUNCIL TO THE CITY TEXAS, AUTHORIZING THE INTERLOCAL COOPERATION AGREEMENT WITH NORTH COMPANY (NCTCOG) TO CENTRAL TEXAS COUNCIL M SMITH & GOVERNMENTS CONDUCT HIRE GABRIEL ROEDER S ACTUARIAL CONSULTING SERVICES OF THE CITY'S OTHER POST EMPLOYMENT BENEFITS AS REQUIRED BY GOVERNMENTAL ACCOUNTING STANDARDSOVISBOARD STATEMENT 45; MAKING IONS RELATED O THE SUBJECT• OTHER FINDINGS AND PR AND DECLARING AN EFFECTIVE DATE. WHEREAS, the Governmental Accounting Semployment andarBoard (OPEB) requires an actuarial evaluation of other post program offered by cities; and, WHEREAS, the City of Paris currently provides OPEB for its qualified ou sheet liability retirees and the evaluation will calculate the on dollar the amount along with OPEB so that it may be properly reflected City balance providing other useful financial information; and, WHEREAS, in order to minimize the cost of this study and future studies, the City is recommending that the Council North Central TexaseCounclrlof services agreement available through the Governments (NCTCOG); and, WHEREAS the NCTCOG has coordinated a request for proposals for in the best actuarial services negotiating with several roastlof multiple city ~aluaations as a price for these services and using the prospect negotiating point, NCTCOG was able to obtain favorable pricing for this service; and, WHEREAS, NCTCOG selected Gabriel Roeder Smith & Company located in services Irving, Texas to conduct the actuarial study and the for these ac estimated a~ al services; ands the City of Paris is $5,720 through this agreement WHEREAS, the City Council hereby finds that it is in the best interest of the City of Paris and its citizens that the City enter to a Agreement with provide North Central Texas Council of Governments (NCTCO ) r these actuarial services to the City of Paris and that erelCity Manager ated to con duct ng GASB authorized to execute any and all necessary documents 45 actuarial services. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS THAT: Section 1. The findings set out in the preamble to this resolution are hereby in all things approved. Section 2. The City Council of the City of Paris does hereby approve Board Texas entering into a shared services agreementinwith Central Governments for Governmental Accounting Standards actuarial services. Section 3. The City Manager be, and he is hereby authorized and directed to execute on behalf of the City of Paris a Master Agreement with Gabriel Roeder Smith & Company, Consultants and Actuaries ("GRS") for actuarial consulting services and an Interlocal Agreement for Cooperative Purchasing for Actuarial Shared Services substantially in the necessary documents related to conducting Exhibits A and B, and any and all o CASB 45 actuarial services. Section 5. This resolution shall be effective immediately upon passage. PASSED AND ADOPTED this 23rd day of March, 2009. Jesse James Freelen, Mayor ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: W. Kent McIlyar, City Attorney 000111S INTERLOCAL AGREEMENT FOR COOPERATIVE PURCHASING FOR ACTUARIAL SHARED SERVICES THIS INTERLOCAL AGREEMENT ("Agreement"), made and entered into pursuant to the Texas Interlocal Cooperation Act, Chapter 791, Texas Government Code (the "Act"), by and between the North Central Texas Council of Governments, hereinafter referred to as "NCTCOG," having its principal place of business at 616 Six Flags Drive, Arlington, Texas 76011, and (name of entity) a local government, created and operated to provide one or more governmental functions and services, hereinafter referred to as "Participant," having its principal place of business at: WITNESETH WHEREAS, NCTCOG is a regional planning commission and political subdivision of the State of Texas operating under Chapter 391, Texas Local Government Code; and governmental WHEREAS, pursuant to the Act, NCTCOG is authorized to contract with eligible entities to perform g functions and services, including the development of a standard approach for acquiring actuarial services; and WHEREAS, in reliance on such authority, NCTCOG has a cooperative purchasing program under which it contracts with eligible entities under the Act; and Act, Action tha has WHEREAS, Participant has represented that it is an eligible entity and h under ithe t desires tot ontAdmi is NCTCOG on the with authorized this Agreement on (Date) terms set forth below; NOW, THEREFORE, NCTCOG and the PARTICIPANT do hereby agree as follows: the under NCTCOG ARTICLE 1: LEGAL AUTHORITY e to (2) it pos a eligibles adequate clegallau hor ty to enter into th is Act The Participant represents and warrants ned n the Act, that because its a local government, as defined Contract. during the ~rm of this Agreement. with all applicable rules, ARTICLE 2: APPLICABLE LAWS in accor NCTCOG and the Participant agree to conduct gall activities regulations, and ordinances and laws in effect promulgated ARTICLE 3: WHOLE AGREEMENT This Agreement and any attachments, as provided herein, constitute the complete contract between the parties hereto, and supersede any and all oral and written agreements between the parties relating to matters herein. ARTICLE 4: BILLINGS and will include Billings will be generated for the Actuarial Shared Services through Gabriel Roeder Smith & Company an Administrative Fee of $100 per valuation cycle (annually or biennially) payable to NCTCOG. any except ARTICLE 5: CHANGES AND AMENDMENTS parties alternatio This Agreement may be amended only by a written amendment hare requir d bytcha ges in Federaltand State lawnor which additions, or deletions to the terms of this Agreement regulations are automatically incorporated into this Agreement without written amendment hereto and shall become effective on the date designated by such law or regulation. NCTCOG reserves the right to make changes in the scope services offered through the Cooperative Purchasing Program to be performed hereunder. EXHIBIT . II()U11 THIS INSTRUMENT HAS BEEN EXECUTED IN TWO ORIGINALS BY THE PARTIES HERETO AS FOLLOWS: *Denotes required fields NOTE: Facsimile copies o this document shall not be acce table as ORIGINALS. I _nterstate vl rev. 10105 * North Central Texas Council of Governments Name of Participant (local government, agency, or non-profit 616 Six Flags Drive, Arlington, Texas 76011 corporation) *By: Mailing Address Signature of Authorized Official * State ZIP Code City Typed Name of Authorized Official *By: Signature of Authorized Official Typed Title of Authorized Official Date * Typed Name of Authorized Official * Typed Title of Authorized Official Date . ()0012d 0 5605 N. MacArthur Blvd. 469.524.0000 phone Gabriel Roeder Smith & Company Suite 870 469.524.0003 fax GRS Consultants & Actuaries Irving, TX 75038-2631 www.gabrielroedeccom MASTER AGREEMENT Pursuant to the award of Joint Actuarial Services by the North Central Texas Council of Governments (NCTCOG), this agreement confirms the terms under which of government) hereinafter referred to as `CONTRACTING GOVERNMENT" has engaged Gabriel, Roeder, Smith & Co. hereinafter referred to as "GRS" to perform actuarial consulting services. In as much as this relationship will involve several actuarial reviews and other services that will be governed by the Request for Proposal issued by NCTCOG on May 31, 2006 and our subsequent response to that proposal, we have agreed to establish this "master agreement" defining the general terms and conditions for all work performed. This agreement will not, by itself, authorize the performance of any services. Rather specific services will be authorized through a separate engagement letter that references this master agreement and details the services to be provided and the timeframe and fees required. In the event of an inconsistency between this master agreement and an individual engagement letter, the master agreement will be followed. As described in the above referenced Request for Proposal the following terms apply: A. Tax Exempt Entities. CONTRACTING GOVERNMENT is exempt from manufacturer's federal excise tax and states sales tax. Tax exemption certificates will be issued upon request. B. Role of NCTCOG. NCTCOG has served as a facilitator to the RFP and award process but the contractual relationship is between GRS and the CONTRACTING GOVERNMENT. C. Aggreffate Information. GRS agrees to supply NCTCOG with the specified results from the valuations and to aggregate that information with that of other governments for the purpose of benchmarking. D. Fees. GRS agrees to follow the attached pricing schedule ("Attachment A") for pricing of its services. 1. Review of Charges. CONTRACTING hourly or outs othe f righ tto review pock expenses the supporting documentation for any Y charges assessed to the CONTRACTING GOVERNMENT under the fee schedule. J. Termination. Both CONTRACTING GOVERNMENT ~ttn noticed GRS will have the right to terminate this agreement through GOVERNMENT will pay any charges or prorate fees incurred to the date the termination notice is received and actuary will cease any in progress work unless specific stopping points are provided in the letter. EXHIBIT A- . 0OU121 K. Work Product. The final work product will be the property of the CONTRACTING GOVERNMENT to be used as stated in the specific engagement letter. Ancillary use of the product is permitted but GRS is not responsible for the reliability of those projections. It is understood that all reports are subject to the open records laws of the State of Texas and the contracting jurisdiction. L. Independent Contractor. one 11 the ~e services terms provided the engagement letter will be independent contractor. No interpreted to create an agency or employment relationship. M. Biennial Reviews. CONTRACTING GOVERNMENT agrees to provide census data in off years using the same cut off date and delivery dates as used for the year of review. Actuary agrees to review the off year census data and provide CONTRACTING GOVERNMENT with timely feedback regarding deficiencies in the data. will be 30, 2012 governed by the afore referenced N. Term. The term of this master agreement NCTCOG RFP and will expire on September letter 0. Complete Agreement. This letter combined mb t forth the ent re agreement the and as clarified by the RFP and Proposal CONTRACTING GOVERNMENT and GRS. P. Indemnification. GRS covenants and agrees to indemnify and hold harmless and defend and does hereby indemnify, hold harmless, and defend NCTCOG and CONTRACTING GOVERNMENTS, its officers and employees, from and against any and all suits or claims for damages or injuries, including death, to persons or property, whether real or asserted, arising out of any negligent act or omission or the part of the contractor, its officers, agents, servants, employees, subcontractors, and the contractor does hereby assume all liability for injuries, claims or suits for damages to persons, property, or whatever kind of character, whether real or asserted, occurring during or arising out of the performance of a contract as a result of any negligent act or omission on the part of the contractor, its officers, agents, servants, employees, or subcontractors to the extent permitted by law. Please review this master agreement letter and the attached schedules and indicate your acceptance by having an official of CONTRACTING GOVERNMENT sign below. Q. Force Maieure. A force majeure event shall be defined to include governmental decrees or restraints, acts of God (except that rain, wind, flood or other natural phenomena normally expected for the locality, shall not be construed as an act of God), work stoppages due to labor disputes or strikes, fires, explosions, epidemics, either riots, war, rebellion, and sabotage. If occurrence of a force majeuroe event , bh delay party to this contract results from the (~Tl U 12 2 shall be excused and the time fixed for completion of the work extended by a period equivalent to the time lost because of the event. R. Professional Standards. GRS will provide qualified personnel for each stan engagement and follow all professio al 1 Accounting Stand ds the American Academy of Actuaries and the Goverrun GABRIEL, ROEDER, SMITH & CO. By: Date: Title: CONTRACTING GOVERNMENT By Date: Title: ,;'t1 01)12*: Attachment A Pricing of Services - Calendar Year 2007* Employer First Year Hourly Rate for Governments by Total OPEB Participants Annual Biennial Additional Options Study Services 1 Less than 100-Insured 1 health plan $4,000 $5,000 $750/Stud See Below la Less than 100-per additional health or retirement plan $1,000 $1,000 $750/Stud See Below 2 Between 100 and 249-Insured 1 health plan $4,500 $5,500 $750/Stud See Below 2a Between 100 and 249-per additional health or retirement plan $1,000 $1,000 $750/Stud See Below 3 Between 100 and 249-Self Insured 1 health plan $6,000 $7,000 $750/Stud See Below 3a Between 100 and 249-per additional self insured health or retirement plan $1,000 $1,000 $750/Stud See Below 4 Between 250 and 499-Insured 1 health plan $4,500 $5,500 $750/Stud See Below 4a Between 250 and 499-per additional health or retirement plan $1,000 $1,000 $750/Stud See Below 5 Between 250 and 499-Self Insured 1 health plan $6,000 $7,000 $750/Stud See Below 5a Between 250 and 499-per additional self insured health or retirement plan $1,000 $1,000 $750/Stud See Below 6 Between 500 and 749-Insured 1 health plan $4,500 $5,500 $750/Stud See Below 6a Between 500 and 749-per additional health or retirement plan $1,000 $1,000 $750/Stud See Below 7 Between 500 and 749-Self Insured 1 health plan $6,000 $7,000 $750/Stud See Below 7a Between 500 and 749-per additional self insured health or retirement plan $1,000 $1,000 $750/Stud See Below 8 Between 750 and 999-Insured 1 health plan $4,500 $5,500 $750/Stu4See Below 8a Between 750 and 999-per additional health or retirement plan $1,000 $1,000 $750/Stud See Below 9 Between 750 and 999-Self Insured 1 health plan $6,000 $7,000 $750/Stud See Below 9a Between 750 and 999-per additional self insured health or retirement plan $1,000 $1,000 $750/Stud See Below 10 Between 1000 and 1499-Insured 1 health plan $5,000 $6,000 $750/Stud See Below 10a Between 1000 and 1499-per additional health or retirement plan $1,000 $1,000 $750/Stud See Below 1) RO12" 1I Between 1000 and 1499-Self Insured 1 health plan $6,500 $7,500 $750/Stud See Below 11 a Between 1000 and 1499-per additional self insured health or retirement Ian $1,000 $1,000 $750/Stud See Below 12 Between 1500 and 1999-Insured 1 health $5,000 $6,000 $750/Stud See Below Ian 12a Between 1500 and 1999-per additional health or retirement plan $19000 $1,000 $750/Stud See Below 13 Between 1500 and 1999-Self Insured I health plan $6,500 $7,500 $750/Stud See Below 13a Between 1500 and 1999-per additional See Below self insured health or retirement Ian $1,000 $1,000 $750/Stud 14 Between 2000 and 2499-Insured 1 health Ian $59000 $6,000 $750/Stud See Below 14a Between 2000 and 2499-per additional $1,000 $1,000 $750/Stud See Below health or retirement lan 15 Between 2000 and 2499-Self Insured 1 health plan $6,500 $7,500 $750/Stud See Below 15a Between 2000 an d 2499-per additional See Below self insured health or retirement Ian $1,000 $1,000 $750/Stud 16 Between 2500 and 5000-Self Insured 1 $7,000 $8,000 $750/Stud See Below health plan 16a Between 2500 and 5000-per additional See Below self insured health or retirement plan $1,500 $1,500 $750/Stud 00111? Plans if a licable) Hourly Rate for First Year Additional Governments by Total OPEB Participants Annual Biennial Options Study Services I Less than 100-Insured 1 health plan $0 $0 $750/Stud See Below 1 a Less than 100-per additional health or $0 $0 $750/Stud See Below retirement plan 2 Between 100 and 249-Insured 1 health $0 $0 $750/Stud See Below Ian 2a Between 100 and 249-per additional $0 $0 $750/Stud See Below health or retirement plan 3 Between 100 and 249-Self Insured 1 $0 $0 $750/Stud See Below health plan 3a Between 100 and 249-per additional self $0 $0 $750/Stud See Below insured health or retirement Ian 4 Between 250 and 499-Insured 1 health $0 $0 $750/Stud See Below Ian 4a Between 250 and 499-per additional $0 $0 $750/Stud See Below health or retirement lan 5 Between 250 and 499-Self Insured 1 $0 $0 $750/Stud See Below health lan 5a Between 250 and 499-per additional self $0 $0 $750/Stud See Below insured health or retirement Ian 6 Between 500 and 749-Insured 1 health $0 $0 $750/Stud See Below Ian 6a Between 500 and 749-per additional $0 $0 $750/Stud See Below health or retirement plan 7 Between 500 and 749-Self Insured 1 $0 $0 $750/Stud See Below health lan 7a Between 500 and 749-per additional self $0 $0 $750/Stud See Below insured health or retirement Ian g Between 750 and 999-Insured 1 health $0 $0 $750/Stud See Below Ian ga Between 750 and 999-per additional $0 $0 $750/Stud See Below health or retirement plan 9 Between 750 and 999-Self Insured 1 $0 $0 $750/Stud See Below health plan 9a Between 750 and 999-per additional self $0 $0 $750/Stud See Below insured health or retirement lan 10 Between 1000 and 1499-Insured 1 health $0 $0 $750/Stud See Below Ian 10a Between 1000 and 1499-per additional $0 $0 $750/Stud See Below health or retirement Ian 11 Between 1000 and 1499-Self Insured 1 $0 $0 $750/Stud See Below health Ian I la Between 1000 and 1499-per additional $0 $0 $750/Stud See Below self insured health or retirement Ian 12 Between 1500 and 1999-Insured 1 health $0 $0 $750/Stud See Below Ian 4812 Between 1500 and 1999-per additional $0 $p $750/Stud See Below a health or retirement plan 13 Between 1500 and 1999-Self Insured 1 $0 $0 $750/Stud See Below health plan 13a Between 1500 and 1999-pe1 additional $0 $0 $750/Stud See Below self insured health or retirement Ian 14 Between 2000 and 2499-Insured 1 health $0 $0 $750/Stud See Below Ian 14a Between 2000 and 2499-per additional $0 $0 $750/Stud See Below health or retirement plan 15 Between 2000 and 2499-Self insured 1 $0 $0 $750/Stud See Below health plan 15a Between 2000 and 2499-per additional $0 $0 $750/Stud See Below self insured health or retirement Ian 16 Between 2500 and 5000-Self Insured 1 $0 $0 $750/Stud See Below health plan 16a Between 2500 and 5000-per additional $0 $0 $750/Stud see Below self insured health or retirement lan ❖ For the first valuation, the prices above include a mandatory kick-off meeting to begin meeting place the project and a meeting to present findings. we will dis~ount the above valuation fees either via web cast or through a conference by $500. via conferenc ❖ For subsequent valuations, we anticipate kickoff the resins can take placeeeithercall web cast. For any participant, if the meeting to p via web cast or through a conference call, we will discount the above valuation fees by $500. Pricing assumes 20% paid upon acceptance by the government of the engagement, 50° o nal • upon receipt tithe draft report pio30% upon acceptance of the nal services tha are not det ermined areports `basic' will ❖ Fees for addrtonal services ad ost be based on the following rates: Senior Consultant GRS Position Title Consultants Senior Analysts Actuarial Analysts Systems Analysts and Programmers T_$110 Administrative Support Staff *Prices will be adjusted annually beginning in January 2008 based on changes in the Consumer his document.. Current rates for your wover ith December Price Index, All Urban Consumers, on a December plan are reflected in the engagement agreement .