ACTUARIAL ANALYSIS
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A G R E E MEN T
THIS AGREEMENT, made and entered into this 2nd day of August,
1993 by and between the CITY OF CLEARWATER, FLORIDA, a municipal
corporation, hereinafter referred to as "City," and Coopers & Lybrand,
a firm of Certified Public Accountants, located at 1100 Campanile
Building, 1155 Peachtree Street, Atlanta, Georgia 30309-3630,
hereinafter referred to as "Contractor;"
WITNESSETH
WHEREAS, the City maintains a self-insurance program and is
desirous of having an actuarial analysis performed on all of its
liability accruals; and
WHEREAS, the Contractor is in the business of public accounting
and providing casualty actuarial services, is fully qualified to meet
the requirements of applicable City, State and Federal law, and
desires to perform the necessary services:
NOW, THEREFORE, the parties agree as follows:
1. This agreement relates specifically to the City's fiscal year
ending September 30, 1993. This agreement may be extended for the two
additional fiscal years ending 9/30/94, and 9/30/95. The fees for
subsequent years are not expected to increase over the amounts stated
herein except for:
(1) Unanticipated significant changes in the
City's future actuarial analysis requirements and (2) a factor which
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recognizes the impact of inflation on the Contractor's cost of
providing the specified services.
The extension of this contract for
subsequent years will be based upon satisfactory services provided by
the Contractor, the determination of which will be at the City's sole
discretion.
2. The Contractor shall perform an actuarial analysis of the
City's general, automobile, and Workers Compensation liability
accruals, currently accounted for as a part of the City's self
insurance fund. The analysis will include, but not necessarily be
limited to, a computation of the "IBNR" (incurred but not reported)
liabilities as of September 30, 1993. The Contractor will include in
the annual report all disclosures necessary to comply with GASB
Statement Number 10.
3. Following the completion of the actuarial review, the
Contractor shall issue a report summarizing the findings of the
actuarial analysis of the Central Insurance Fund.
4. The Contractor shall retain all working papers for a minimum
of three (3) years, unless notified in writing by the City of the need
to extend the retention period. The Contractor shall make working
papers available, upon request, to the following parties or their
designees:
o
City of Clearwater
o
u.s. Department of Housing and Urban Development
o
u.s. General Accounting Office (GAO)
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Parties designated by the federal or state governments
or by the City of Clearwater as part of an audit
quality review process
o
Auditors of entities of which the city of Clearwater is
subrecipient of grant funds
In addition, the Contractor shall respond to the reasonable
inquiries of successor auditors and allow successor auditors to review
working papers relating to matters of continuing accounting
significance.
5. The Contractor shall prepare and submit to the City no later
than September 1, 1993, a detailed schedule of the work to be
performed by them under this contract and the date such work will be
completed. As part of this schedule, a list of documents neede~ and
work to be performed by the City including the related date required
shall be included. The Contractor shall complete performance under
this contract by December 31, 1993.
6. The Contractor shall bill the city and the City shall pay the
Contractor for the performance of the services under this contract on
the basis of the Contractor's normal and customary charges for such
services, plus ordinary out-of-pocket expenses customarily stated
separately by the Contractor in his general practice, the same to be
separately stated and itemized. The total amount of this contract
including out-of-pocket expenses shall not exceed $10,000. The City
may, by amendment of this agreement, increase this maximum fee and/or
extend the completion date upon the Contractor's showing evidence of
conditions which require substantially more time than would generally
be required to perform the prescribed services. Progress payments
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will be made periodically for work completed to date based on invoices
submitted by the Contractor. The sum of such progress payments shall
not exceed 80% of the maximum specified above. The final payment will
be made within 30 days of receipt of the final actuarial report.
IN WITNESS WHEREOF, the parties hereto have caused this agreement
to be executed the day and year first above written:
R1ta Garvey
Mayor-Commissioner
CITY OF CLEARWATER, FLORIDA
By:
Approved as to form
and correctness:
Attest:
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M.A. Galbrai
City Attorne
witnesses:
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Attest:
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