2009-028-RES-AUTHORIZING THE CITY TO ENTER INTO AN INTERLOCAL COOPERATION AGREEMENT WITH NORTH CENTRAL TX COUNCIL OF GOVERNMENTSRESOLUTION 1V0. 2009-028
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS,
TEXAS, AUTHORIZING THE CITY TO ENTER INTO A1V
INTERLOCAL COOPERATION AGREEMENT WITH NORTH
CENTRAL TEXAS COUNCIL OF GOVERNMENTS (NCTCOG) TO
HIRE GABRIEL ROEDER SMITH & COMPANY TO CONDUCT
ACTUARIAL CONSULTING SERVICES OF THE CITY'S OTHER POST
EMPLOYMENT BENEFITS AS REQUIRED BY GOVERNMENTAL
ACCOUNTING STANDARDS BOARD STATEMENT 45; MAKING
OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT;
AND DECLARING AN EFFECTIVE DATE.
WHEREAS, the Governmental Accounting Standards Board Statement 45
requires an actuarial evaluation of other post employment benefits (OPEB)
program offered by cities; and,
WHEREAS, the City of Paris currently provides OPEB for its qualified
retirees and the evaluation will calculate the dollar amount of the City's liability for
OPEB so that it may be properly reflected on the City balance sheet along with
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 approve using a shared actuarial
services agreement available through the North Central Texas Council of
Governments (NCTCOG); and,
WHEREAS the NCTCOG has coordinated a request for proposals for
actuarial services negotiating with several actuarial consultants to obtain the best
price for these services and using the prospect of multiple city valuations as a
negotiating point, NCTCOG was able to obtain favorable pricing for this service;
and,
WHEREAS, NCTCOG selected Gabriel Roeder Smith & Company located in
Irving, Texas to conduct the actuarial study and the estimated cost of services for
the City of Paris is $5,720 through this agreement for these actuarial services; and,
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 into an Agreement with North
Central Texas Council of Governments (NCTCOG) in order to provide these
actuarial services to the City of Paris and that the City Manager should be
authorized to execute any and all necessary documents related to conducting GASB
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
entering into a shared services agreement with North Central Texas Council of
Governments for Governmental Accounting Standards Board Statement 45
actuarial services.
Section 3. The City Manager be, and he is hereby authorized and directed
to execute on behalf of the Ciry 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 accordance with the forms attached hereto as
Exhibits A and B, and any and all other necessary documents related to conducting
CASB 45 actuarial services.
Section 5. This resolution shall be effective immediately upon passage.
pE1SSED AND ADOPTED this 23rd day of March, 2009.
ATTEST:
C nice Ellis, City Clerk
APPROVED AS TO FORM:
W. Kent Ilya City Attorney
esse Ja s Freelen, Mayor
Gabriel Roeder Smith & Company 5605 N. MacArchur Blvd. 469.524.0000 phone
GRS Consultants & Actuaries 5uite 870 469.524.0003 fax
Irving, TX 75038-2631 www.gabrielroeder.com
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 the
(name 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. Aggregate 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 GOVERNMENT has the right to review
the supporting documentation for any hourly charges or out of pocket expenses
assessed to the CONTRACTING GOVERNMENT under the fee schedule.
J. Termination. Both CONTRACTING GOVERNMENT and GRS will have the
right to terminate this agreement through written notice. CONTRACTING
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-
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. Indenendent Contractor. All the services provided by GRS will be as an
independent contractor. None of the terms in the engagement letter will be
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.
N. Term. The term of this master agreement will be governed by the afore referenced
NCTCOG RFP and will expire on September 30, 2012.
0. Comqlete Agreement. This letter combined with the specific engagement letter
and as clarified by the RFP and Proposal set forth the entire agreement between the
CONTRACTING GOVERNMENT and GRS.
P. Indemnification. GRS covenants and agrees to indemnify and hold hannless 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 on
the part of the contractor, its officers, agents, servants, employees, or
subcontractors, and the contractar 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,
riots, war, rebellion, and sabotage. If a delay or failure of performance by either
party to this contract results from the occurrence of a force majeure event, the delay
, • , , • -
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
engagement and follow all professional standards ascribed by the American
Academy of Actuaries and the Governmental Accounting Standards Board.
GABRIEL, ROEDER, SMITH & CO.
By:
Date:
Title:
CONTRACTING GOVERNMENT
By
Title:
Date:
- , • , , I - 11 -
Attachment A
Pricing of Services - Calendar Year 2007*
Em lo er
First Year
Hourly Rate for
Governments by Total OPEB Participants
Annual
Biennial
Options Study
Additional
Services
1
Less than 100-Insured 1 health lan
$4,000
$5,000
$750/Stud
See Below
1 a
Less than 100-per additional health or
retirement lan
$1,000
$1,000
$750/Stud
See Below
2
Between 100 and 249-Insured 1 health
lan
$4,500
$5,500
$750/Stud
See Below
2a
Between 100 and 249-per additional
health or retirement lan
$1,000
$1,000
$750/Stud
See Below
3
Between 100 and 249-Self Insured 1
health lan
$6,000
$7,000
$750/Stud
See Below
3a
Between 100 and 249-per additional self
insured health or retirement lan
$1,000
$1,000
$750/Stud
See Below
4
Between 250 and 499-Insured 1 health
lan
$4,500
$5,500
$750/Stud
See Below
4a
Between 250 and 499-per additional
health or retirement lan
$1,000
$1,000
$750/Stud
See Below
5
Between 250 and 499-Self Insured 1
health lan
$6,000
$7,000
$750/Stud
See Below
Sa
Between 250 and 499-per additional self
insured health or retirement lan
$1,000
$1,000
$750/Stud
See Below
6
Between 500 and 749-Insured 1 health
lan
$4,500
$5,500
$750/Stud
See Below
6a
Between 500 and 749-per additional
health or retirement lan
$1,000
$1,000
$750/Stud
See Below
7
Between 500 and 749-Self Insured 1
health lan
$6,000
$7,000
$750/Stud
See Below
7a
Between 500 and 749-per additional self
insured health or retirement lan
$1,000
$1,000
$750/Stud
See Below
8
Between 750 and 999-Insured 1 health
lan
$4,500
$5,500
$750/Stud
See Below
8a
Between 750 and 999-per additional
health or retirement lan
$1,000
$1,000
$750/Stud
See Below
9
Between 750 and 999-Self Insured 1
health lan
$6,000
$7,000
$750/Stud
See Below
9a
Between 750 and 999-per additional self
insured health or retirement lan
$1,000
$1,000
$750/Stud
See Below
10
Between 1000 and 1499-Insured 1 health
lan
$5,000
$6,000
$750/Stud
See Below
10a
Between 1000 and 1499-per additional
health or retirement lan
$1,000
$1,000
$750/Study
See Below
- , , I a_ -
11
Between 1000 and 1499-Self Insured 1
health lan
$6,500
$7,500
$750/Stud
See Below
11 a
Between 1000 and 1499-per additional
self insured health or retirement lan
$1,000
$1,000
$750/Stud
See Below
12
Between 1500 and 1999-Insured 1 health
lan
$5,000
$6,000
$750/Stud
See Below
12a
Between 1500 and 1999-per additional
health or retirement lan
$1,000
$1,000
$750/Stud
See Below
13
Between 1500 and 1999-Self Insured 1
health lan
$6,500
$7,500
$750/Stud
See Below
13a
Between 1500 and 1999-per additional
self insured health or retirement lan
$1,000
$1,000
$750/Stud
See Below
14
Between 2000 and 2499-Insured 1 health
lan
$5,000
$6,000
$750/Stud
See Below
l 4a
Between 2000 and 2499-per additional
health or retirement lan
$1,000
$1,000
$750/Study
See Below
15
Between 2000 and 2499-Self Insured 1
health lan
$6,500
$7,500
$750/Stud
See Below
15a
Between 2000 and 2499-per additional
self insured health or retirement lan
$1,000
$1,000
$750/Study
See Below
16
Between 2500 and 5000-Self Insured 1
health lan
$7,000
$8,000
$750/Stud
See Below
16a
Between 2500 and 5000-per additional
self insured health or retirement lan
$1,500
$1,500
$750/Stud
See Below
r. r - I r i 1 •.i o_ -
Plans (if
a licable)
First Year
Hourly Rate for
Governments by Total OPEB Participants
Annual
Biennial
Options Study
Additional
Services
1
Less than 100-Insured 1 health lan
$0
$0
$750/Stud
See Below
1 a
Less than 100-per additional health or
retirement lan
$0
$0
$750/Stud
See Below
2
Between 100 and 249-Insured 1 health
lan
$0
$0
$750/Stud
See Below
2a
Between 100 and 249-per additional
health or retirement lan
$0
$0
$750/Stud
See Below
3
Between 100 and 249-Self Insured 1
health lan
$0
$0
$750/Stud
See Below
3a
Between 100 and 249-per additional self
insured health or retirement lan
$0
$0
$750/Stud
See Below
4
Between 250 and 499-Insured 1 health
lan
$0
$0
$750/Stud
See Below
4a
Between 250 and 499-per additional
health or retirement lan
$0
$0
$750/Stud
See Below
5
Between 250 and 499-Self Insured 1
health lan
$0
$0
$750/Stud
See Below
Sa
Between 250 and 499-per additional self
insured health or retirement lan
$0
$0
$750/Stud
See Below
6
Between 500 and 749-Insured 1 health
lan
$0
$0
$750/Study
See Below
6a
Between 500 and 749-per additional
health or retirement lan
$0
$0
$750/Stud
See Below
7
Between 500 and 749-Self Insured 1
health lan
$0
$0
$750/Stud
See Below
7a
Between 500 and 749-per additional self
insured health or retirement lan
$0
$0
$750/Stud
See Below
8
Between 750 and 999-Insured 1 health
lan
$0
$0
$750/Stud
See Below
8a
Between 750 and 999-per additional
health or retirement lan
$0
$0
$750/Study
See Below
9
Between 750 and 999-Self Insured ]
health lan
$0
$0
$750/Study
See Below
9a
Between 750 and 999-per additional self
insured health or retirement lan
$0
$0
$750/Stud
See Below
10
Between 1000 and 1499-Insured l health
lan
$0
$0
$750/Stud
See Below
10a
Between 1000 and 1499-per additional
health or retirement lan
$0
$0
$750/Stud
See Below
I 1
Between 1000 and 1499-Self Insured l
health lan
$0
$0
$750/Study
See Below
i l a
Between 1000 and 1499-per additional
self insured health or retirement lan
$0
$0
$750/Study
See Below
12
Between 1500 and 1999-Insured 1 health
lan
$0
$0
$750/Stud
See Below
- r • 1 r / 1 • .1 0 - -
4812
Between 1500 and 1999-per additional
a
health or retirement lan
$0
$0
$750/Stud
See Below
13
Between 1500 and 1999-Self Insured 1
health lan
$0
$0
$750/Stud
See Below
13a
Between 1500 and 1999-per additional
self insured health or retirement lan
$0
$0
$750/Stud
See Below
14
Between 2000 and 2499-Insured 1 health
lan
$0
$0
$750/Stud
See Below
14a
Between 2000 and 2499-per additional
health or retirement lan
$0
$0
$750/Stud
See Below
15
Between 2000 and 2499-Self Insured 1
health lan
$0
$0
$750/Stud
See Below
15a
Between 2000 and 2499-per additional
self insured health or retirement lan
$0
$0
$750/Stud
See Below
16
Between 2500 and 5000-Self Insured 1
health lan
$0
$0
$750/Stud
See Below
16a
Between 2500 and 5000-per additional
self insured health or retirement lan
$0
$0
$750/Stud
See Below
❖ For the first valuation, the prices above include a mandatory kick-off ineeting to begin
the project and a meeting to present the findings. If the second meeting can take place
either via web cast or through a conference call, we will discount the above valuation fees
by $500.
❖ For subsequent valuations, we anticipate the kickoff ineeting to be via conference call or
web cast. For any participant, if the meeting to present the results can take place either
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%
upon receipt of the draft report and 30% upon acceptance of the final report.
❖ Fees for additional services and optional services that are not determined as `basic' will
be based on the following rates:
GRS Position Title
Hourly Rates
Senior Consultant
$350
Consultants
$275
Senior Analysts
$175
Actuarial Analysts
$150
Systems Analysts and Programmers
$200
Administrative Support Staff
$110
*Prices will be adjusted annually beginning in January 2008 based on changes in the Consumer
Price Index, All Urban Consumers, on a December over December basis. Current rates for your
plan are reflected in the engagement agreement sent with this document.
i-. r t+ i r o_ i-.
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
WHEREAS, pursuant to the Act, NCTCOG is authorized to contract with eligible entities to perform governmental
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
WHEREAS, Participant has represented that it is an eligible entity under the Act, that by Administrative Action has
autharized this Agreement on (Date)* and that it desires to contract with NCTCOG on the
terms set forth below;
NOW, THEREFORE, NCTCOG and the PARTICIPANT do hereby agree as follows:
ARTTCLE l: LEGAL AUTHORITY
The Participant represents and warrants to NCTCOG that (1) it is eligible to contract with NCTCOG under the Act
because its a local govemment, as defined in the Act, and (2) it possesses adequate legal authority to enter into this
Contract.
ARTICLE 2: APPLICABLE LAWS
NCTCOG and the Participant agree to conduct all activities under this Agreement in accordance with all applicable rules,
regulations, and ordinances and laws in effect or promulgated during the term of this Agreement.
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
Billings will be generated for the Actuarial Shared Services through Gabriel Roeder Smith & Company and will include
an Administrative Fee of $100 per valuation cycle (annually or biennially) payable to NCTCOG.
ARTICLE 5: CHANGES AND AMENDMENTS
This Agreement may be amended only by a written amendment executed by both parties, except that any alternations,
additions, or deletions to the terms of this Agreement which are required by changes in Federal and State law or
regulations are automatically incorparated 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-a
THIS INSTRUMENT HAS BEEN EXECUTED IN TWO ORIGINALS BY THE PARTIES HERETO AS
FOLLOW S:
*Denotes required fields
NOTE• Facsimile copies of this document shall not be acceptable as ORIGINALS. tnterstate vl rev. 10/05
*
Name of Participant (local government, agency, or non profit
corporation)
*
Mailing Address
*
City State ZIP Code
.gy•
Signature of Authorized Official
.
Typed Name of Authorized Official
.
Typed Title of Authorized Official Date
North Central Texas Council of Governments
616 Six Flags Drive, Arlington, Texas 76011
Signature of Authorized Official
.
Typed Name of Authorized Official
*
Typed Title of Authorized Official Da[e