ACTUARIAL SERVICES AGREEMENT
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A G R E E MEN T
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THIS AGREEMENT, made and entered into this )$ day of
O~ , 1996 by and between the CITY OF CLEARWATER, FLORIDA, a
municipal corporation, hereinafter referred to as "City", and Ernst &
Young LLP, a firm of Certified Public Accountants, located at 100
North Tampa Street, Tampa, Florida 33601, 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, 1996.
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, 1996. 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.
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4. The Contractor shall retain all working papers for a minimum
of five (5) 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
U.S. Department of Housing and Urban Development
U.S. General Accounting Office (GAO)
Parties designated by the federal or state governments
or by the City of Clearwater as part of an audit
quality review process
Auditors of entities of which the City of Clearwater is
subrecipient of grant funds
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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 October 21, 1996, a detailed schedule of the list of documents
needed from the City including the related date required. The
Contractor shall complete performance under this contract by December
1, 1996.
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 $9,000. The City
may, by amendment of this agreement, increase these maximum fees
and/or extend the completion date upon the Contractor's showing
evidence of conditions which require substantially more time than
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would generally be required to perform the prescribed services.
Progress payments 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 reports.
IN WITNESS WHEREOF, the parties hereto have caused this agreement
to be executed the day and year first above written:
Countersigned:
CITY OF CLEARWATER, FLORIDA
By:
Approved as to form and
legal sufficiency:
Attest:
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Pamela K. Akin r r
City Attorney
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hia E. ~Gdeau '
Clerk /-,
ERNST & YOUNG LLP
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By: 'Z/~'
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Attest: ~!~A'I c2:/J1iZU A~~lj-t-/C/
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