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02-16-1999i?•,f; ?' ??. ?`t'r r ?.t.5 'S •r ?. r;' ; ` ' .yi r ?' 'I ., r .. .• 1 •, .. ;• ='s '???!?'.;t...!".?Us.I?, 's:r'?1 t^•:rr• a` yf:.'."`:''?? _ •?'S.r i'' }r.'` +f 'rIi•`"!?_.?''?:`kf-7?34.l.yrrL. °3 .i .yr.>Y,{.? ?t• ;,,..:sc,..' `kr ;? b5:;?.;' ;;4"'t.,y; r," ???:,;,;+ ?;: '?';ti 3;'` rr?r? •*sit ?y, :??:#?jSk,?'?'.?• .r, .:¢,,3..:'.{.•.. er 5'?`j^ a???l:?? .1,.. 'tl: II... s.,.• e`'<;1 1: ,i ?? ,r..'f? .??c?4?.f.f.'+t? i},rY.t•???.*??'i,•".r..r-: ?. .,?, ,:'r,'Fy,'.'S.i.'' •a.t, d,l a•L .yY! '.F t 1. Mt >I.?><? r; ;t r4.7,S ?•I1-rr ?fi,j!?a?S, tiSld. :a •.'? j? '1'.?.+':1 :r,?•r:< ,f •r ,;1 '!t .?. :.1.•, ..r ?t;r t5,. .t.:,. 't. , sp ?r ; P6 f1 x•.?• , i., R+l:. : r.-.. r, r.??.. {a a} • j il': 433E .: t t? , ?°- +ri. '';/,c<?y-.r r ` •?r°',?a .?.. Ir• rfr s ?' r'1, .r'" rFr•. ?r.`{ 't: '.!. i. ?+• lt.:#'!. •rR?ab:?C:r:i..r,fls,i.b? .r4. 'r•. .t E' 'f'?;. 1?'. `C•.; 'i _! ,?. r.? yY.F}, r .. .. ? r:?, ,. v; ... ..::5 <r`i?'.,.r('.', •??:? ..lf` + 'S' enion ` enda s I 2 t ' I ' ® ? I - ' i • ,• Ell 5 • , t , ' • ' `S i - • • , ' • 1 ' • , • r ! ` ' ' , f • r - • ' ' r • , l?f, .5 .?.!il,.'r r:ai...: 7'r,e :Yrs.. ,.Y=•. ... ., •.r ?.ry... e7e`?. ,, ;1. Yfi', .fi. .' ,! .. .1 ... .. _ _ ' r i ' ACTION AGENDA i Board of Trustees of the Employees' Pension Fund February 16, 1999 ' 1. ' Call to Order' - 9:24 a.m. j 2: Approval of, Minutes: 1119199 -Approved as submitted. 3.. Request for acceptance into membership: Hiep Nguyen, Tim Grosso, Scott Batten, Michael Vacca, Shirley Kennedy, Kathryn Collart, Kerstin Wilson, Almedina ' Imamovich, Kenneth Schuffert, Steven Katches, Sinta McCall, Harry Kaferlein; Robert . -Hays, Louis Lopez,.Daron Green & James Cooper - Approved. ' 4. Regular Pension(s) to be granted: Randy Costenbader, Anthony J. Wilhelmi, Amos Green & Josephine Dixon - Approved.' 5. Pension(s) to.be vested: Joseph W. Reilly, Jr., Sabrina Chute, & James. L. McCulley, Jr. - Approved. 6. Contract to PricewaterhouseCoopers LLP for actuarial services for Employees' Pension .'. Plan & other, related services for 3 year period ending 1213112001, total 'cost not to exceed $105,000 - Approved. 7. Discuss procedure to be used to select Pension Attorney Services - Joint Meeting of PAC & Vustees to be scheduled to receive presentations from the respondents of the RFP. _ B. Other Business - None. 9. Adjourn - 9:29 a.m. ; r Meeting Date: Approved by Trustees CITY OF CLEARWATER EMPLOYEES' PENSION PLAN PENSION ADVISORY COMMITTEE TO: Pension Trustees FROM: Pension Advisory Committee SUBJECT: Recommendation for Acceptance Into Pension Plan DATE: January 14, 1999 As Trustees of the City of Clearwater Employees' Pension Fund, you are hereby notified that the employee(a) listed below have boon duly examined by a local physician and each has been designated as a "first class risk". The employment of these individuals brings the number of FTE's as of this date to 1640.9 out of 1735.6 budgeted positions (including the City Commission). These employees are eligible for pension membership as noted In the Pension El igibility Date column below, and it is the recommendation of the Pension Advisory Committee that they, be accepted into membership. Pension flip. Namojob, lass _D.DRLIix, iH re Datg pma Hiep Nguyen, Systems Analyst Prog./General Sup. Services 11/16/98 11/16/98 'tam Grosso, Maint. Worker It/General Support Services 11/23/98 11/23/98 Scott Batten, Public Set. Tech. I/Public Works 11/23/98 11/23/98 Michael Vacca, Public Set. Tech. I/Public Works 11/23/98 11/23/98 Shirley Kennedy, Librarian IVI-ibrary 11/23/98 11/23/98 Kathyrn Collart, Pol. Cam. Opor. Trainee/Police 1217198 1217198 Kerstin Wilson, Pot. Cam. Oper, Trainee/Police 12/7198 1217/98 Almedina Imamovich, Pol. Cam. Operator/Police 1217198 1217/98 Kenneth Schuffert, Public Set, Tech. I/Public Works 12/7198 12/7198 Steven Katches, Maint. Worker It/General Sup. Services 12/7/98 1217198 Sinta McCall, Senior PlanninglPlanning & Dev. Services 12/14/98 12/14/98 Harry Kaferlein, Gas Technician I/Gas 12/21/98 12121198 Robert Hays, Dev. Set. Coordinator/Planning & bev. Services 1217/98 1217198 Louis Lopez, Equipment Operator I/Parks & Recreation 12/21/98 12/21198 Doran Green Maintenance Worker 1/Parks & Recreation 7121198 12/21/98 ' , James Cooper, Solid Waste Equip. Oper./Solid Waste 11/10/86 12/17/98 " 'originally hired as an emergency 7/21/98; changed to perma nent full-time an 1 2/21/98 • ` originally hired 11110/86 and denied pension participation; reexami d 12117/98 and eligible for pension participation as of that date 4 ' Pension Advi Commi a Chair w SUBJECT/RECOMMENDATION: Trustees of the Employees' Pension Plan Agenda Cover Memorandum iritof kM14 tian Item #: RAAftA9&rkftdtM"1M Meeting Date: 21t 8199 Randy Costenbader, Police Department; Anthony J. Wilhelmi, Solid Waste Department; Amos Green, Marine Department; and Josephine Dixon, Public Works Department, be granted regular pensions under Section(s) 2.393 and 2.397 of the Employees' Pension Plan as approved by the Pension Advisory Committee. D and that the appropriate officials be authorized to execute some. SUMMARY: Randy Costenbader, Police Captain, Police Department, was employed by the City on May 2, 1977, and his pension service credit is effective on that date. His pension will be effective November 1, 1999. Based on an average salary of approximately $65,088 per year over the past five years, the formula for computing regular pensions, and Mr. Costenbader's selection of the Life Annuity, this pension will approximate $43,517 annually. Anthony J. Wilhelmi, Solid Waste Equipment Operator, Solid Waste Department, was employed by the City on July 12, 1971, and his pension service credit is effective on that date. His pension will be effective February 1, 1999. Based on an average salary of approximately $34,830 per year over the past five years, the formula for computing regular pensions, and Mr. Wilhemi's selection of the 100% Joint and Survivor Annuity, this pension will approximate $25,624 annually. Amos Green, Custodial Worker, Marine Department, was employed by the City on February 13, 1979, and his pension service credit is effective on that date. His pension will be effective March 1, 1999. Based on an average salary of approximately $25,152 per year over the past five years, the formula for computing regular pensions, and Mr. Green's selection of the Joint and Survivor Annuity, this pension will approximate $13,839 annually. Reviewed by: Legal Budget Purchasing Aisk Mgmt. Is ACM Other Originating Department- NA HUM RESOURCES NA NA tfsor Department: NA NA NA Submitted by: City Manager ') Printed on recycled paper Costs: Commission Action: ? Approved Total ? Approved wlConditions ? Denied Currant Fiscal Venr ? Continued to, Funding Source: ? Capital lWmvornent: Advtrtieed: ? oper¦ting.. Date: ? Attachments: other; Pension Paper: ? Not Required Appropriation Code Affected Parties: 646-07410.514100.585-000 ? Notified ? None ? Not Required i&'?':5'. ..k •'.`. ir''t r.;'.?(F.S,, w ca.'. °Y`.' ?-. ?' ., .. L. .. .. ,n r Regular Pensions Page 2 February 16, 1999 Josephine Dixon, Assistant Wator Superintendent, Public Works Department, was employed i by the: City on May 14, 1975, and her pension service credit is effective on that date. Her pension will be effective March 1, 1999. E Based on an average'salary of approximately $43,533 per year over the past five years, the formula for cornputing regular pensions, and Ms. Dixon's selection of the Joint and Survivor Annuity, this pension will approximate $28,426 annually. These pensions were approved by the Pension Advisory Committee on January 14, 1999. Section-2.393 (p) provides for normal retirement eligibility when a participant has completed twenty years' of credited service in a type of employment described as "hazardous duty" and further specifically defines service as a Police Captain as meeting the hazardous duty criteria: Mr. Costenbader qualifies under the hazardous duty criteria. Section 2.393 (p) also provides for normal retirement eligibility when a participant has reached age 55 and completed twenty years of credited service or has completed 30 years of credited service. Mr. Wilhemi, Mr. Green, and Ms. Dixon qualify under the age 55 and 20 years of service criteria. Trustees of the Employees' Pension Plan Agenda 'Cover Memorandum VV014MQs44an Item #: 9 Meeting Date: 2l1 Bl99 SUBJECT/RECOMMENDATION: Joseph W. Reilly, Jr., General Support Services Department, Sabrina Chute, General Support Services Department, and James L. McCulley, Jr., Gas Department, be allowed to vest their pensions under Section(s) 2.397 and 2.398 of the Employees' Pension flan as approved by the Pension Advisory Committee. 119 and that the a ra riate officials be authorized to execute same. SUMMARY: Joseph W. Reilly, Jr., Tradesworker 11, General Support Services Department, was employed by the City on February 19, 1985, and his pension service credit is effective on that date. Sabrina Chute, Network Support Technician II, General Support Services Department, was employed by the City on December 12, 1988, and her pension service credit is effective on that date. James L. McCulley, Jr., Gas Technician 11, Gas Department, was employed by the City on July 11, 1988, and his pension service credit is effective on that date. The Employees' Pension Plan provides that should an employee cease to be an employee of the City of Clearwater after completing ton or more years of creditable service (pension participation), then such employee shall acquire a vested interest in the retirement benefits. Vested pension payments commence on the first of the month following the month in which the employee normally would have been eligible for retirement. Mr. Reilly would have completed at least twenty years of service and reached age 55 on February 19, 2005. His pension will be effective on March 1, 2005. Ms. Chute would have completed at least twenty years of service and reached age 55 on September 7, 2018. Her pension will be effective on October 1, 2018. Mr. McCulley would have completed at least thirty years of service on July 11, 2018. His pension will be effective on August 1, 2018. These requests to vest pensions were approved by the Pension Advisory Committee on January 14, 1999. Reviewed by: Legal Budget Purchasing Rick Mgmt. is ACM Other Originating Department: NA HUMAN RESOURCES NA Ifjy NA User Department: NA NA NA COY Submitted by: City Manager + printed on recycled paper wr. Costs: _ tt Totel Current Fiscal Year Funding Source: ? Capital impmvoment; Advertised: ? apalating: Date: ? othan Pension Paper: ? Not Required Appropriation Code Affected Parties: 646-07410-514100.585-000 ? Notified ? Not Required Commission Action: CI Approved D Approved w/Conditions 13 Denied ? Continued to, Attachments: ? None • Trustees of the Employees' man Pension Plan Rfml Agenda Item # cx?7 Agenda Cover Memorandum Meeting Date: a SUBJECT/RECOMMENDATION: Award contract to PricewaterhouseCoopers LLP for actuarial services for the Employees' Pension Plan and other related services for the three year period ending December 31, 2001, at a total cost not'to exceed $105,000, © and that the appropriate officials be authorized to execute same. SUMMARY: • PricewaterhouseCoopers LLP was chosen after evaluation of responses to RFP150-98. The five-member evaluation committee was composed of employees from Human Resources, Public Works Administration, and Finance. • PricewaterhouseCoopers (previously Coopers & Lybrand) has performed actuarial services for the Employees' Pension Plan for the past ten years. • Fees included in the requested "not to exceed" amount include: fixed fees for the annual actuarial report of $16,000, $16,500, and $17,000 for the three-year period; and estimated fees for preparation of annual pre-retirement workbooks and individual employee benefit statements, quarterly retirement planning seminars, employee retirement counseling, and actuarial advice to City staff. • Funding is available in the Employees' Pension Fund. • The contract document is available for review in the City Clerk Department. Reviewed by Legal Info Srvc NIA Budget Public Works NIA Purchasing DCIvt/ACM Risk Mgmt *NA Other Submitted by: a. City Manager Prinlevl an rrevcled saner Originating Dept: Costs Finance Administration ?,? Total $105,0oo User Dept. Funding Source: Finance & Human Resources Current FY $34,000 Cl Attachments OP Employers, Oth Pension Plan er ? None Appropriation Code: 646-07410-530100-5135-000 Rev. 2190 L. , AGREEMENT FOR ACTUARIAL SERVICES This AGREEMENT made this day of, 199, by and between the City of Clearwater, Florida (City), P. O. Box 4748, Clearwater Florida 33758,' and PRICEWATERHOUSECOOPERS LLP, 101 East Kennedy Boulevard, Suite 1500, Tampa, Florida 33602 (Consultant),- a Florida limited liability partnership. WHEREAS, City issued Request for Proposal No. 150-98 for Actuarial and Other Services to the Clearwater Employees Pension Plan (Plan) (See Exhibit "A"); and WHEREAS, City selected Consultant to provide actuarial and other related services (Project) according to Consultant's response to Request for Proposal No. 150- 98 (See Exhibit "B"). NOW THEREFORE, the City and Consultant do hereby Incorporate all terms and conditions in Exhibit "A' and Exhibit "B" and mutually agree as follows: 1. SCOPE OF PROJECT. Consultant agrees to provide actuarial and other related services under the terms and conditions described in Request for Proposal No. 150-98. 2. TIME OF PERFORMANCE. Project will commence on January 1, 1999 and shall terminate on December 31, 2001. 3. REPORTS. Consultant agrees to provide to City reports on the Project upon request by the City and under the terms provided in the Request for Proposal No. 150-98. 4. COMPENSATION. The City will pay Consultant a sum not to exceed the following amounts: $16,000.00 for 1999; $16,500.00 for 2000; and $17,000.00 for 2001. City agrees to pay Consultant 50% of the amount due each year upon commencement of the services, and 50% upon acceptance by City of the final actuarial i f I report, Any additional services related to the Project must be approved by the City Project Manager. The City may, from time to time, request changes in the scope of the project of Consultant to be performed hereunder. Such changes, including any Increase or decrease in the amount of Consultant's compensation and changes in the terms of this Agreement which are mutually agreed upon by and between City and Consultant shall be effective when Incorporated in written amendment to this Agreement. 6. METHOD OF PAYMENT. Consultant shall bill City according to the payment schedule, and City agrees to pay after approval by the' City Project Manager under the terms of the Florida Prompt Payment Act F.S. 218.70. 6. CONTACTS FOR RESPONSIBILITY. Stephen M. Metz will be designated as Project Director for this project by Consultant to manage and supervise the performance of this Agreement on behalf of Consultant. Associated with the Project Director will be staff members whose experience and qualifications are appropriate, for this Project. The City will be represented by Michael J. Roberto, or his designee for all matters relating to this Agreement. 7. TERMINATION OF CONTRACT. The City at its sole discretion may terminate this contract by giving Consultant ten (10) days written notice of its election to do so and by specifying the effective date of such termination. The Consultant shall be paid for its services through the effective date of such termination. Further, if Consultant shall fall to fulfill any of Its material obligations hereunder, this Agreement shall be in default, the City may terminate the contract, and Consultant shall be paid only for work completed. 8. NON-DISCRIMINATION. There shall be no discrimination against any employee who is employed in the work covered by Consultant, or against applicants for such employment, because of race, religion, color, sex, or national origin. This provision 2 i shalt, include, but not be limited to the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rate of pay or other forms of compensation; and selection for training, including apprenticeship. 9. INTERESTS OF PARTIES. Consultant covenants that its, officers, employees and shareholders have no interest and shall not acquire any interest, direct or indirect, which would conflict in any manner or degree with the performance of services required to be performed under this Agreement. 10. INDEMNIFICATION 'AND INSURANCE. Consultant agrees to protect, defend, indemnify and hold the City and its officers, employees and agents free and harmless from and against any and all losses, penalties, damages, settlements, costs, charges, professional fees or other expenses or liabilities of every kind and character arising out of or due to any negligent act or omission of Consultant or its employees in connection with or arising directly or indirectly out of this Agreement and/or the performance hereof. Without limiting its liability under this Agreement, Consultant shall procure and maintain during the life of this Agreement liability insurance coverage as described in Exhibit "K. This provision shall survive the termination of this Agreement. 11. PROPRIETARY MATERIALS. Upon request by City, Consultant shall transfer, assign and make available to City or its representatives all property and materials in Consultant's possession belonging to the City, or originally produced by Consultant as a deliverable hereunder. 12. ATTORNEYS FEES. In the event that either party seeks to enforce this Agreement through attorneys at law, then the parties agree that each party shall bear its own attorney fees and costs, and that jurisdiction for such an action shall be in a court of competent jurisdiction in Pinellas County, Florida. 3 Li. . 13. WARRANTIES. Consultant warrants that the service provided will be performed and supervised by qualified personnel. notwithstanding anything to the contrary contained' in this agreement, consultant makes no other warranties, express or implied, or whether arising by operation of law, course of performance or dealing, custom, usage in the trade or profession or otherwise, including without limitation implied waranties of merchantability and fitness for a particular purpose. Except as expressly provided in the engagement letter, Consultant is not providing any Year 2000 services (for example, Year 2000 assessment, conversion or testing) nor making any warranties with respect to the products or services provided by Consultant or by third parties under this Agreement to correctly process, provide and/or receive date data within and between the twentieth and twenty-first centuries. 14. LIMITATION OF LIABILITY. Other than the City's obligations to make payments that are due and owing under this Agreement, a party's and Its affiliates' entire and collective liability arising out of or relating to this Agreement, including without limitation on account of performance or nonperformance of obligations hereunder, regardless of the form of the cause of action, whether in contract, tort (including without ' limitation negligence), statute, or otherwise, shall in no event exceed in the aggregate the amounts paid to Consultant under this Agreement. notwithstanding anything to the contrary contained in this agreement, neither party nor its affiliates shall, under any circumstances, be liable to the other party or its affiliates for any claim based upon any third party claim or for any consequential, incidental, indirect, punitive, exemplary or special damages of any nature whatsoever, or for any damages arising out of or in connection with any malfunctions, delays, loss of data, loss of profit, interruption of service or loss of business or anticipatory profits, even if a party or its affiliates have been advised of the likelihood of such damages occurring. No action, regardless of 4 M7 form, arising out of this Agreement may be brought by either party more than one (1) year after the cause of the action has accrued. 16. CONFIDENTIALITY. Each party agrees to take measures to protect the confidentiality of the other party's Confidential Information that, in the aggregate, are no less . protective than those measures it used to protect the confidentiality of its own Confidential Information, but at a minimum, each party shall take reasonable steps to advise their employees (and, in the case of the Consultant, its subcontractors) of the confidential nature of the Confidential Information and of the prohibitions of copying or revealing such Confidential Information contained herein. Consultant and City each agree to require that the other party's Confidential Information be kept in a reasonably secure location. Notwithstanding anything to the contrary contained in this Agreement, neither party shall be obligated to treat as confidential, or otherwise be subject to the restrictions on use, disclosure or treatment contained in this Agreement for, any information disclosed by the other party (the "Disclosing Party") which: (1) is rightfully known to the recipient prior to its disclosure by the Disclosing Party; (2) is generally known or easily ascertainable by non-parties of ordinary skill in computer or process design or programming or In the business of the Consultant; (3) is released by the Disclosing Part to any other person, firm or entity (including governmental agencies or bureaus) without restriction; (4) is independently developed by the recipient without any reliance on Confidential Information; or (5) is or later becomes publicly available without violation of this Agreement or may be lawfully obtained by a party from any nonparty. Neither party will be liable to the other for Inadvertent or accidental disclosure of Confidential Information if the disclosure occurs notwithstanding the party's exercise of the same level of protection and care that such party customarily uses in safeguarding its own Confidential Information. 5 ,: ?. ', ?' ? 6 CITY OF CLEARWATER, FLORIDA 1 REQUEST FOR PROPOSAL FOR ACTUARIAL AND OTHER SERVICES RFP # 150-98 A. INTRODUCTION / BACKGROUND The City of Clearwater (hereinafter "City") is requesting proposals from qualified firms of actuarial consultants interested in providing actuarial and other related services to the City of Clearwater Employees' Pension Plan (hereinafter. "Plan"). A Selection Committee (hereafter "Committee"), has been formed to facilitate the selection process. The'Committee is composed of five (5) City appointees. The Plan, is a contributory, defused benefit pension plant for eligible City employees. Members presently contribute 8.0% of their earnings on a pre-tax basis to the plan until time of retirement, while the City, contributes the balance required as determined by the actuarial valuation. The plan requires a minimum City contribution of 7.0%. Thts Plan includes a disability retirement provision for members who become disabled, The Employees' Pension Plan is governed by the member of the City Commission who serve as the Plan Trustees. The City is a City Manager/Commission form of local government which offers a traditional mix of municipal services to a population of approximately 104,000. For the 1998199 fiscal year, the total of all City operating and capital budgets is approximately $192 million. Of this amount 573.4 million is budgeted for the General Fund, $70.7 million for proprietary fund activities, and S46 million for capital budgets. The proprietary fund activities include primarily the provision of water, sewer, gas and sanitation utility services and the operation of a toll bridge, marina and parking facilities. The City employs approximately 1,700 persons, over 1,450 of whom are members of the Employee Pension Plan. The Plan assets had a market value of S358 million as of January 1, 1998, B. REQUIRED SERVICES AND PERFORMANCE STANDARDS Actuarial Review (1) The valuation must be performed in accordance with accepted actuarial principles including the use of appropriate actuarial assumptions. The financial information produced, including the employer's pension expense for the current year and the relationship between the plan assets and the pension benefit obligation, must be in accordance with gener.slly accepted accounting principles, including full compliance widt Governmental Accounting Standards Board (GASB) statements. The actuarial report must provide sufficient information to enable the City to make all footnote disclosures required by GASB statements. (2) The techniques and assumptions used and the content of the report issued must conform to the requirements of all applicable laws and rules including Florida Statutes and Chapter 22 of the Florida Administrative Code, and the fee quoted is to include responses by the actuary to the State Board of Administration as necessary. (3) Actuarial studies must be completed and the reports thereon must be rendered within 120 days of the date the contract is signed. Fplyyce Pre-Retirement Planning Workbooks Request For Proposal For Actuarial Strvices RFPM 150-98 1 City of Clearwater, Florida EXHIBIT "A" k The existing workbook will be reviewed and will be revised due to material changes In law, the pension plan, Social Security, or any other reason. If the workbook needs to be revised, an updated version in camera-ready format will be delivered to the City within 30 days of the date the contract is signed. The City will handle the printing, duplication, and distribution of the workbooks. Employe Benefit Statemcnts Individual employee benefit statements wilt be prepared and delivered to the City far distribution to employees. The benefit statements will include such information as projected plan benefits, employee contributions, accrued plan benefits, date of 100% vesting, etc. The statements will be delivered.to the City by April I, 1999 for distribution to employees. Quarterly Pre-Retirement- Seminars I Quarterly pre-retirement seminars will be conducted by the firm. These seminars will be targeted to employees approaching retirement and will be presented in a workshop format to groups of employees (size at the option of the City). These worPahops will assist the employees In identifying their retirement goals and objectives and the actions required to achieve them. The seminars will be used to educate employees on investment strategy, plan options and the retirement planning process. Tell hone Pension Advise and Counseling Services The firm will provide counseling to employees within one year of retirement on benefit estimates and .options. The counseling will be up to I hour of counseling per employee. The firm will get approval from the City prior to counseling any employee. Advise to City Staff on Tax and Plan Issues The firm will be available to advise City staff' on issues pertaining to tax and plan considerations such as plan design, estimated funding requirements of various alternative plan designs, and detailed actuarial reports and impact statements related to the Employees' Pension Plan. Recognizing that service providers and clients have an on-going need for communications, the service provider will advise the City when discussions are such that a billing will occur. Pees will typically be based on a fee per hour, however, for large projects, a per project fee will be negotiated. C. INDEMNIFICATION AND INSURANCE REQUIREMENTS Indemnification: The proposer shall hold harmless, indemnify and defend the City, its elected officials, officers and employees, against any claim, action, lawsuit, loss, damage, injury (whether mental or physical, and include death to persons, or damage to property), liability, cost and expense of whatsoever kind or nature including, but not by way of limitation, attorney's fees and court costs, caused by negligent sects or omissions of Actuarial Services, The City shall also be held harmless against all claims for financial loss with respect to the provision of or failure to provide professional or other services resulting in professional malpractice, or errors or omissions liability arising out of performance of the agreement or contract, unless such claims are a result of the city's own negligence. Request For Proposal For Actuarial Str vices RFF# 154-98 2 City clClearaater, Florid& ¦' nua . (1) Without limiting its liability under the contract, the proposer shall procure and. maintain at its sole expense during the life of the contract, insurance of the types and the minimum amounts stated. Type Amount' Professional Liability $2,000,000 Comprehensive or Commercial General Liability $500,000 Comprehensive or Business Automobile Liability $500,000 Workers' Compensation Coverage as imposed by State Law $ Statutory Employers Liability $100,0001$100,0001$500,000 (2) The proposer comprehensive general liability policy shall include contractural liability on a blanket or specific basis to cover this indemnification. (3) Such insurance shall be written by a company or companies licensed to do business in the State of Florida and satisfactory to the City. Prior to commencing any work under this contract, certificates evidencing the maintenance of said insurance shall be furnished to and approved by the City's Risk Management Division. (4) . The insurance coverages and conditions required shall not be suspended, voided, cancelled or modified except after thirty (30) days prior written notice has been given by certified mail, return receipt requested, to the City's Risk Management Division Office. (2) The City may, at its option, require a copy of the Proposer's insurance; policies. (6) All insurance policies required within this RFP and any contract subsequently entered into between the parties shall provide full coverage from the first dollar of exposure unless otherwise stipulated. No deductibles or self-insurance retention will be accepted without prior approval from the City. The proposer's deductible/Self-insurance retentions (SIRS) shall be disclosed to the City and may be disapproved by the City. They shall be reduced or eliminated at the option of, the City. The proposer is responsible for the amount of any deductible or SIR. (7) Except for workers' compensation and professional liability insurance, the proposer's insurance policies shall be endorsed to name the City as an additional insured to the extent of the city's interest. Request For Proposal For Actuarial Services RFPH 150.98 3 City of Clearwater, Florlds W 1 (8) insurance required of the proposer or any other insurance carried by the proposer sKall be considered primary and any ,insurance of the City shall be comidered excess as may be applicable to claims under anycontract or agreement between City'and proposer, (9) Any party providing services or products to the City will be expected to enter into a written agreement; contract, or purchase order with the City that incorporates, either in writing or by reference, all of the pertinent provisions relating to insurance and insurance requirements as contained herein. A failure to do so, may, at the sole discretion of the City, disqualify any party from performing services or selling products to the city provided, however, the City reserves the right to waive any such requirement. (i0) 'If delaims made form of professional liability coverage is provided, the retroactive date of coverage shall be no later than the, inception date. of claims made coverage, unless prior policy was extended indefinitely to cover prior acts. Coverage shall be extended beyond the policy year either by a supplemental extended reporting period (ERP) of as great duration as available, and with no less coverage and with reinstated aggregate limits, or by requiring that any. new policy provide a retroactive date no later than the inception date of claims made coverage. D. RFP ITME TABLE The anticipated schedule for the UP and contract approval is as follows: RFP available for distribution September 18, 1998 Deadline for receipt of questions October 9, 1998 Deadline for receipt of proposals Tuesday, October 20, 1998,4:00p,m. Evaluation / Selection process: Review of proposals October 21, 1998 Selection of Candidates to make presentations Week of November 2, 1998. Staff Recommendation. Monday, November 9, 1998 City begins contract negotiations Monday, November 9, 1998 Recommendation to Pension Trustees Monday, December 7, 1998 . Projected Contract award and start date Rtqucsl For Proposal For Actuarial Services RFFN I W" January 1, 1999 4 City or Clearwater, Florida r E. RFP • AVAILABILITY Copies of the RFP are available by contacting George McKibben at (727) 5624634, or by visiting the Purchasing Division located at the Municipal Services Building, 3' Floor/Finance, 100 South Myrtle Avenue, Clearwater, Florida 33756.5520, E. PROPOSAL SUBMISSION One original and rive copies (a total of six) shall be delivered to the city of Clearwater, Purchasing Manager, 100 South Myrtle Avenue, Clearwater, FL 33756-5520, prior to the opening time of 4:00 p.m,, EDT, on Tuesday, October 20, 1998. Proposals shall be as brief and to the point as possible while still meeting proposal requirements. The delivery of proposals to the City of Clearwater Purchasing Office prior to the specified date and time,is solely and strictly the responsibility of the proposing fu-m. The City shall not, under any circumstances, be responsible for delays caused by the United States Postal Service or any private delivery service, or for other delays. All responses must be manually and duly signed by an authorized authority to bind said firm, and proposers) must affix their company's corporate seal to the Proposal. In the absence of a corporate seal, the Proposal must be notarized by a Notary Public The submittal ofa proposal by a preparer will be considered by the City as constituting an offer by the Proposer to perform the required services at the stated fees. The stated fees shall be considered Iacked in for 180 days from the time of receipt. All responses must be marked on the outside: "Request For Proposal For Actuarial Services for the City of Clearwater, Florida RFP 150-98 To be opened at 4:60 PM, EDT, October; 20,1998." Each proposer is solely responsible for reading and completely understanding the requirements of this RFP. The opening time shall be and must be scrupulously observed. Under no circumstances will proposals delivered af3er the specified delivery time be considered. Late submissions shall be returned unopened to the firm with ilte notation "The Proposal was received after the delivery time designated for the receipt and opening of the proposals." All proposals shall be prepared and submitted in accordance with the provisions of this RFP, However, the City may waive any informalities, irregularities, or variances, whether technical or substantial in nature, or reject any and all proposals at its discretion. Any proposal may be withdrawn prior to the indicated time for•opening of proposals for authorized proponent thereof. No firm may withdraw a proposal within ninety (90) days after the actual date of the proposal's opening. Promotional material may be included as supplemental information, but will constitute a proposal itself. G. INQUIRIES AND ADDENDA Each firm shall examine all RFP documents and shall judge all matters relating to the adequacy and accuracy of such documents. Any inquiries, suggestions or requests concerning interpretation, clarification, or additional information pertaining to the RFP shall be made in writing a minimum of rive (5) working days prior to due date through the City of Clearwater's Purchasing Manager, George McKibben, at P.O. Box 4748, Clearwater, FL 33758- 4748; or FAX 727-562-4635. Facsimiles must have a cover sheet which includes, at a minimum, the proposer's name, address, number of pages transmitted, phone number, and facsimile number. It is the proposer's responsibility to be sure all addenda were received. Requcst For Proposal For Actuarial Services 070150.93 5 City or Mama ur, Flodds 4 . l Tbc City shall not be responsible for oral interpretations given by any City employee, representative, or others, The issuance of a written addendum is the only official method whereby interpretation, clarification, or additional information may be given. If any addenda are issued to this UP, the City will attempt to notify all prospective firms who have secured same, However, it shall be the responsibility of each firm, prior to submitting the proposal, to contact the City of Clearwater's Purchasing Manager (727.562-4634) to determine if addenda were issued and to make such addenda a part of the proposal. H. LATE PROPOSALS PROPOSALS, LATE MODIFICATIONS AND LATE WITHDRAWALS Proposals received after the Proposal Due Date and time are laic and will not be considered. Letters of withdrawals received after the Proposal Due Date or after contract award, whichever is applicable, are late and will not be considered. . I. RFP POSTPONEMENT I CANCELLATION 7be City may, at its sole and absolute discretion, reject any and all, or parts of any and all, proposals; re-advertise this RFP; postpone or cancel, at any time, this RFP process; or waive any minor or immaterial irregularities In this UP or in the proposals received as a result of this RFP. J. COSTS INCURRED BY PROPOSERS All expenses involved with the preparation and submission of proposals to the City, or any work performed in connection therewith shall be borne by the proposer(s). No payment will be made for any responses received, nor for any other effort required of or made by the proposer(s) prior to commencement of work as defined by a contract approved by the City Commission. K. ORAL PRESENTATION A formal oral presentation may be required by each firm that is selected daring the initial review process (at the sole option of the City). If required, presentations should be in support of the firm's proposal or to exhibit or otherwise demonstrate the information contained therein. If the Committee wishes additional clarification of any information or additional information, any of the firms may be requested to submit that information in writing. L+ EXCEPTION TO THE RFP Proposers may take exceptions to any of the terms of this RFP unless the RFP specifically states where exceptions may not be taken. Should a proposer take exception where none is permitted, the proposal will be rejected as non- responsive. All exceptions taken must be specific, and the Proposer must indicate clearly what alternative is being offered to allow the City a meaningful opportunity to evaluate and rank proposals. Whcre exceptions are permitted, the City shall determine the acceptability of the proposed exceptions and the proposals will be evaluated based on the.proposals as submitted. 'rte City, after completing evaluations, may accept or reject the exceptions. Where exceptions are rejected, the City may request that the Proposer furnish the services or goods described herein, or negotiate an acceptable alternative. M. PROPRIETARY INFORMATION Request For i'ropo3al For Actuarial Services MM 154-98 6 City of Clearwater, Florida Responses to this Request for Proposals upon receipt by the City become public records subject to the provisions of Chapter 119 F.S., Florida's Public Records Law. If you believe that any portion or all of your response Is confidential and/or proprietary, you should clearly assert such exemption and the specific legal authority of the asserted exemption. All material that. you asset qualifies for exemption from Chapter 119 must be submitted in a separate envelope, clearly identified as 'TRADE SECRETS EXCEPTION," with your firm's name and the proposal number marked on the outside. Please be aware that the designation of an item as a trade secret by you may be challenged in court by any person. By your designation of material in your proposal as a "trade secret" you agree to hold harmless the City for any award to a plaintiff for damages, costs or attorneys' fees and for costs and attorneys' fees incurred by the City by reason of any legal action challenging your claim. You may be required to pay any costs of fees incurred In defending such a charge if the City declines to do so. N. QUALIFICATIONS AND OTHER FACTUAL INFORMATION (1) Firm Qualifications A. Indicate size of firm, organizational structure, location of management and charter authorization and licenses to do business in the State of Florida. B. Describe in general your firm's national, statewide and local service capabilities to perform the required services as stated In Section B of this RFP. C. Describe resources available to your firm such as computer capability, personnel with specialized knowledge and expertise in the governmental (including tax exempt) field. D. Describe your firm's experience in serving as a actuary and consultant to local governmental units including your most recent clients within the State of Florida, including the names, addresses, and phone numbers of contact persons; briefly describe the services performed for these clients. E. Indicate whether your firm qualifies as an "Enrolled Actuary" as defined in Chapter 22D-1.02(e) of the Florida Administrative Code. F. Please provide information on litigation your firm has been a party to during the past three (3) years. (2) Familiarity with GASB Statement Requirements Please indicate your familiarity with GASB Statement requirements relating to Pension Plans by providing a brief summary of the requirements and your experience in providing required disclosures. (3) Qualifications of Personnel to be Assigned Provide resumes of the personnel who would be directly involved in performing actuarial and consulting services for the City, including but not limited to: (i) formal and supplemental education; Regrreat For Proposal For Actuarial Services RFP# ISO-99 7 City of Clearwater. Florida 1 (ii) Experience in performing actuarial services and consultation regarding employee benefit programs including governmental client names where possible; (iii) Knowledge of State of Florida regulatory requirements applying to municipal pension plans; (iv) Experience, if any, in performing valuations in compliance with GASB Statements. (v) Memberships in professional organizations; and (vi) Professional recognition and awards. (4) Costs to Provide the Various Services A. Provide full information on the cost for'each of the required services idcnti[icd in Section B of the RFP including whether or not the fee is on the project basis and the total cost, on an hourly basis and the estimated number of hours and total cost, and any. other costs which would be reasonable expected to be incurred as a result of the performance of the service. Costs should be quoted on each service as follows: • Actuarial Review (project basis) • Employee Pre-Retirement Planning Workbooks (project basis) Employee Benefit Statements (project basis) • Quarterly Pre-Retirement Seminars (hourly basis) • Telephone Pension Advise and Counseling Services (hourly basis) • Advise to City Staff on Tax and Plan Issues (hourly basis) 0. NEGOTIATIONS The City may award a contract on the basis of initial offers received, without further negotiations or may negotiate a final contract. 'Merefore, each initial offer should contain the proposer's best terms from a cost or price and technical standpoint. The City reserves the right to enter into contract negotiations with the selected proposer. If the City and the selected proposer cannot negotiate a successful contract, the City may terminate said negotiations and begin negotiations with the next selected proposer. This process will continue until a contract has been executed or all proposers have been rejected. No proposer shall have any rights against the City arising from such negotiations. P. RIG11IT TO PROTEST Any actual or prospective Proposer who is aggrieved in connection with the solicitation or award of a contract may seek resolution of its complaints by contacting the Purchasing Manager. Q. RULES; REGULATIONS; LICENSING REQUIREMENT The proposer shall comply with all laws, ordinances and regulations applicable to the services contemplated herein, including those applicable to conflict of interest and collusion. Proposers are presumed to be familiar with all Federal, State and local laws, ordinances, codes and regulations that may in any way affect the services offered. R. EVALUATION CRITERIA AND RANKING PROCESS R queat For Proposal For Actuarial Services RFF# 1%98 $ City of Clearwater, Florida 1 NE , The evaluation and ranking of all competitive proposals received shall be accomplished utilizing the criteria described in this Section. Information and data included in the Actuarial Services proposal shall be considered in the evaluation and ranking process. COMPLETENESS OF COMPETITIVE PROPOSALS Following the receipt of competitive proposals, the City shall review all proposals with respect to completeness and conformance with the instructions and requirements specifically indicated in this RFP. •Proposals which are deemed incomplete and/or non-conforming with instructions and requirements of this UP may not,bu given further evaluation. The City reserves the right to reject any or all proposals and to waive any irregularity, variance or Informality whether technical or substantial in mature, in keeping with the best interest of the City. SELECTION CRITERIA All proposals shall be equally evaluated with respect to the completeness of the data provided, support for all claims made, and the overall approach taken. The following criteria shall be utilized in the evaluation of the proposal: 30% (X) Firm Qualifications 20% (2) Familiarity with GASB Statement Requirements 20% (3) Qualifications of Personnel to be Assigned 20% (4) Costs to Provide the Various Services 10% (5) References References may be called regarding the level of satisfaction with services rendered by the proposing firm, technical ability, cost, education of and presentation to governing bodies. Request For Proposal For Actuarial Services RF'PN 150-48 9 City of Clearwater, Florida Note:.tfyou do not intend to respond to tilts bid request, please complete and return this'sheet to: City of Clearwator Purchasing Department P.O. Box 4748 Clearwater, FL 33768-4748 We, the undersigned, have declined to bid on the above noted Invitation for Bid for the following reason(s): insufficient time to respond to invitation for Bid. Do not offer this product/service, Our schedule will not permit us to perform. Unable to meet specifications. Unable to meet insurance requirements. Specifications unclear (please explain below.) Remove us from your "Bidder Mailing List." Other (please explain below.) Remarks: We understand that if a "no bid" statement is not returned, our name may be removed from the Bidder's List of the City of Clearwater. Company Name: Address: City, State, Zip: Telephone: Date: Signature: Request For Aropoul For Attuarlal Services RFPM 150-99 10 City of Gleanvater, Florida { I l 1 I I i fJ? Cateh ?Qonida Request For Proposal For Actuarial Services RFP #150-98 ' 1-(30PER5 ftjCeA1ATMOUS ? EXHIBIT „Bu PRUCEWATERHOUSECOOPERS LLP People PwC creates customtzed stratcgles that' Address, the needs of your organUadon and your employees.:,,,, An organization" poople' strategy diri;ctl?. adacts 'fundamental _a >. business issues, such as`produetivit}i, rofila?iility and innovation. The 'ability ;tq attlact,., inanagc;;''nim?otivatc ;and~'reward :human resources creates,,. a '.critical. "ridvan6gc` ;We;,casi•. _help"your orgaiuzatson develop strategles;to=successNy;dnve':ifie behaviors. '- ... ??- ?i' -Y?r} •.: , ?. st'!. ?r' ? ?Pdnl'11?ti?a +?r .•s'al and wind"actsoas: of,,rour : emppoyes.. ESL •hi•? /?.'?• '? : 1S?`1?i?'.k• 1? lw"M VrA appropriate HR?.,strategy e s?o ti as". Qn,$. r.S' ..y. '1`SiKti 1• ?11. uel 1* T ORI W-' I h 'tlie metho4s and-resqumcsr Q,1 ur' ,? 3 grosindbrea sing-work it is area d?r`aws?upan. a of?dis yp es:- Lea rning; and.r.Chsin e.. -"develom o eaderhip i? 3$;F•N?sr "t:x X71` ?2' •8•• ?. : cas?petencses Y aL gnt:?f Pm r, es: et ientaLion ion Li.rt Y. ?3I. ., ofappropn 9 I r •["? ?Z?"Y7l'..'•'':.?:yiy ......-WyT?r l??r ' , ??:?`LI r' .ir Compensation riu ` on _ erformaace. .t?gi1.Fiw' ?.:lyttry-sly i= v? { *4:. ?w 1 'mans emeritx?' •Diverstty and Wor" e; Proge m? dev ingrawarcness of tfe iiced" fo a' a' dfversP_w,9,rI o, ce and. . ? ng .balance •Y.. • • . F? t •ttiM1.: between work and life,comr* tinens; = .: ?' i',?? "• :r ~'_. ' PWC can hetp.y ' you "rein ouropTerations efficiend Processes Does the _ 4!anagement;:. ocgamzatioa,., si? sEcture:,o:- your'•HR activities add valise to;yourusiness7 $y collaboi` ng with you, we can measure the 'value : genei$tcd'`tiYai?t;roxiiy;; current HR Processes :and:identifyr opportunities far change--and'improyement. We IieI youL'ere-te 'J. Iear, com llmgi-bussnessa.case` to gain manage mcnt's? approval for any_ szvesfsii'ent : requir?c - can also help you to construct a realistic plan to guide implementation. Our approach encompasses: t• Strategy -'a review of what HR needs to do and why Business Process Reengineering.'. how to improve workflow and efficiency Implementation - the who, what and'where of improving administration Operation - the system of continuous improvement Merger and Acquisition Support - due diligence on assets, liabilities and corporate philosophises PRtCEWATERHOUSECOOPERS LLP 3 •4 Partnering PwC can help you- ocus on strate&.1nidatives. ?Y Whey erhployers`fiad that large. percentages of their. budget and manageri cut,'time arc consumed by activities-that?'dan't. directly euliance tlieir-`financ:al or: semce.aressults outsourcii; c?anM be e - 'r: it j pc.rJ eW olu6oo. We • can ;addrvatue' to your: or nation. by talung J.. ri ?,?_ . ?.. •;i' f ?i ? L•?`3.:.2t. a1?.".'.+r• • t ?'• '. ? ?. res?onsi*bility. f r? non-'stzaSm a;;f+t?ausacttoff u I6Ive' c vi es 50iur. •r.•y?ly, y,?LW-m-1 prafessioiats:caiirunprov •one, i, cc?: r? . ? L yourempox?}ff;?vsuQQnsis?]g-r'+'?sk •. t? K 'Y"w7" si:.. assoc iiated • ith .:cob liannre, ffessing+; errors.-mi .asta'turnover • % ti an s??``tt11 S l?nirm?n?s'o ' tM ditto 'dad t?ve ? n?r1RD Y i 4 '? '? ?.• R' L :1.,&0 tsourcmg.?Vero ''' ?ns-'t?ent?-'accua, li-yuiillit - ervice - an?w em to 'grec n RIl i 4 +CI t mQ Vu, a `?r ue e, _ ' ``?t?iahng r= ee essin a {•? " $o ? t custom n ena Ln?;em o Mato use 12-vace respr?nse syste m service enter oar e. emef to n?e in sand es ct:o ' w C'e' rin a min strat?on= increas g.j efficiency, ?.g..? :?5.' • fG=.~n• : ?•I- ?? .:C3''? y'Y't!L%L•i..•'?•_??!;-+ s}?t' !?r? ?. •. ?.iA?: R' ? timeliness and cualitx:.. :,? f.. • -??- -_ ; a f_? State-af?ttie-art'fechnoli?gy ; '.,.relieving your organ nation 4. i?t}3e SuldCII O CAIltlI3L4Q S 2lZVCStI2?CLltS 1I1 5jenM5 ?:?', C?;?i. PRtCEWATEMOUSECOOPERS LLP 4 1 t Specifically for the City of Clearwater, we have in-depth resources in Tampa, backed up by additional resources in Atlanta, Philadelphia and throughout the U.S., to provide the services required by your RFP. in fact, we have been providing these services to the City for the past ten years. Our Florida Global Human Resource Solutions practice is based in Tampa and includes actuaries and benefits consultants as well as tax and accounting specialists. We have completed actuarial reviews for Clearwater and other governmental agencies, employee pre-retirement planning workbooks, benefits statements, pre-retirement seminars, telephone advice and counselling services as well as advice on tax and plan issues. Here in Tampa, our Global HR Solutions practice is recognized by the Tampa Bay Business Journal as the largest fee for service benefits consulting practice in the region. We are the largest Big Five firm as well. Some of our Florida clients include Hillsborough County, Hillsborough County School District, and the City of Clearwater on the West Coast; Darden Restaurants and Dixon Ticonderoga in Orlando; The City of Jacksonville, Blue Cross/Blue Shield of Florida and the PGA Tour in North Florida; and Jackson Memorial Hospital, Carnival Cruise Line, and Palm Beach County in South Florida; and Sarasota Memorial Hospital. We have extensive knowledge of governmental retirement issues and work with numerous governmental employers on issues regarding the Florida Retirement System and stand-alone defined benefit, defined contribution and hybrid plans. Our Tampa GHRS practice includes over 20 professional consultants in a variety of employee benefit specialties. We design, consult on and administer defined benefit and defined contribution plans, so we are extremely familiar with the features of both types of plans. We are also familiar with governmental employers in Florida and the unique issues they face. We have five actuaries in the Tampa office as well as three defined contribution consultants. We do not accept any commissions or sell any insurance or investment products so our advice is totally objective. PRtCEWATEMOUSECOOPERS LLP S I C. Describe resources available to your fir,n Stich as computer capability, personnel with specialized knowledge and expertise In the governmental (including tax exempt) field, Computer Capabilities Our actuarial valuation software platform consists of a database management system, a pension valuation system, a retiree medical 'valuation system, workpapers and reports based in the Microsoft Application Suite. Our database management system, BENEFACTOR, supports our defined contribution recordkeeping practice, has been installed at major clients and continually improved in its network version. PENVAL, our pension valuation system, is flexible and comprehensive; it values all pension plan benefits explicitly. During the early phases of the FEI Field Test, we recognized that traditional software developed for pension actuarial valuations would not adequately address the unique nature of health benefits and the additional assumptions needed to measure retiree health obligations. Accordingly, a team of our firm's health care actuaries, pension actuaries with substantial valuations experience, EDP professionals, and accountants designed RETIItEASE, our proprietary software package. RETIREASE fully automates the calculation of retiree health and life insurance obligations and expense through the use of two modules--the Liability Module and the Expense Module. Actuarial assumptions, plan provisions, asset information and financial reporting policy are entered through the use of a series of menu-driven screens. The system automatically provides obligations for retirees, active employees fully eligible for benefit and active employees not yet fully eligible, in conformance with the actuarial method and attribution period required under FASB Statement 106. In addition, the software allows you to use a different actuarial method to project contributions for funding purposes. i The system goes beyond the determination of expense by providing results for year-end disclosure. In addition, obligations may be generated by plan as well as by other breakdowns (e.g, location, subsidiary). Expense amounts may be determined under a variety of options, recognizing both current accounting policy and options available under FASB Statement 106. 1 PRtCEWATMWOUSECOOPERS LLP 6 lu With this software, our actuaries can meet a client's varied needs for information including: ?. Using either net claims cost data or recognizing cost components by age, sex and status. ¦ Modeling changes in actuarial assumptions. ' Modeling alternative substantive plan approaches. ¦ Analyzing the effect 'of alternative delivery systems and other cost containment methods and other plan design changes with greater flexibility than typically available from other programs. • Recognizing health care cost trends that vary by year, type of medical service, claim component and age (over/under age 65). » Performing multiple-year projections of obligations an expense, using an open group methodology (e.g., forecasting new hires to produce estimates for management beyond what is needed for Statement 106). ¦ Reflecting alternate dates for the adoption of Statement 106. Maintaining easy access to all results for use in generating customized reports and quickly responding to special client requests. Specialized Knowledge and Knowhow Our Tampa practice provides actuarial services in all aspects of benefit plan design, implementation, compliance, administration and employee communications, as well as financial analysis and reporting. Our actuarial expertise encompasses pension plans, retiree life and medical plans (SPAS #106), disability plans, life insurance plans, Supplemental Executive Retirement Plans and severance plans (SPAS #112). The Tampa office of the GHRS group has been providing defined benefit actuarial services since its inception in 1985. We are particularly proud of our track record in serving clients throughout Florida. In fact, throughout the thirteen years we've been serving clients through our Tampa office, we have never lost an actuarial client to a competitor. The Tampa GHRS practice includes two actuarial principals and 25 professional staff.members. This office serves clients throughout Florida, providing the full range of our f'irm's human resource advisory services. Our Florida practice is supported by our National Technical Consulting Unit in Washington, D.C., a key resource for research as well as up-to-date information on legislative and regulatory activities. The National Technical Services Unit sends out technical memoranda to our practice offices.daily via our intranet - The Knowledge Curve. This unit also acts as our liaison with government agencies to obtain information through key contacts and to obtain formal rulings. PRICEWA'YERHOUSECOOPERS LLP L 'I- Our Accounting, Auditing, and SEC Consulting Services Directorate and Tax Directorate also maintain research units. Specialists in these groups bring their expertise to emerging issues. Our work on the FERF Research Project and the Fb Field Test on post-retirement benefits arc specific examples of these multidisciplinary research units working together. This extensive work required the involvement 'of group and pension actuaries, health care and benefits consultants, and accounting and tax professionals from both practice offices and research units. More recently, the research units are analyzing the impact of the proposed change in accounting treatment of stock based compensation. Keeping our consultants informed on emerging issues, legislative changes and research results is a top priority for us and at the core of our high-quality, responsive service. We get the information out quickly so your team can help you respond before there is a negative impact on your business. And, with our contacts in Washington, D.C., and representation on various committees, the City can be confident that the information is accurate and timely. The National GHRS library, which is part of the NTCU, is staffed by two librarians specializing in employee benefits and human resources. The mission of this library is primarily to provide research support to all GHRS practice offices worldwide. Such specialized research is provided through the use of print, sources, on-line data bases, and CD-ROM technology., In addition, the library maintains a clearinghouse of reports issued by the GHRS practice. The GHRS practice is kept abreast of recent practice and legislative developments through the issuance of monthly annotations of the trade press. Extensive employee benefits and human resources subject files are maintained and the library currently subscribes to more than 100 periodicals specific to the human msources/crnployee benefits field. Extensive survey information is also maintained in order to provide competitive intelligence to consultants and clients. Our firm also maintains other libraries to meet the diverse needs of our clients. The National Library is staffed by five librarians and provides research support to all of our offices worldwide. This library maintains a laser disk collection of all SEC filings and has a collection of more than 10,000 volumes and more than 500 periodicals covering all of our areas of service and the industries in which the Firm has clients. This collection covers each company on the New York and American Stock Exchanges and more than 2,500 over- the-counter companies. A health care library, staffed by two health librarians is housed in the Chicago office. This library has an extensive collection of mcdical and health-related publications and provides research support. PRICEWATERHOUSECOOPERS LLP 8 The Firm's GHRS practice also uses a wide variety of communication vehicles to disseminate technical information and the related business issues to our consultants across the country on a timely basis. These communication methods include: The Knowledge Curve - our Intranet - as well as specialized data libraries on our Lotus Notes servers. These arc core resources we use to keep current with information in the office or on the road, using worldwide dial-up capability. The Knowledge Network provides our professionals with access to firmwide discussion groups for each of our various disciplines. Through these discussion groups, your engagement team learns about current developments and is able to exchange ideas with PwC professionals across the country. Monthly national conference calls and several annual national meetings are held to share technical opinions and creative solutions to client problems as well as to discuss ways to meet new client service needs. To inform consultants of particularly significant developments or projects, we conduct seminars across the country. We recently participated in Discovery - our Firm's national human resources educational meeting for major clients and annually participate in the Cash Balance Plan Forum. On a local basis, we have. committed to providing local benefits briefings to . address emerging human resources issues affecting our clients. Over the past several years, our Benefits Briefings have addressed the Pension Protection Act, HIPAA, and other timely matters. We also offer an internet service to our clients, The Tax News Network. This on-line: service includes ongoing analysis and information about national benefits legislation and regulations. The Tax News Network is on the World Wide Web at www.ta news.com, D. Describe yourfirm's experience in serving as an actuary and consultant to local governmental units including your most recent clients within the State of Florida, Including the names, addresses, and phone numbers of contact persons; briefly describe lire services performed for these clienm Governmental employers must address challenges different from those of private companies. In most cases, this includes a larger, more diverse work force and . separate and distinct compliance issues, among others. Governmental employers in Florida must also comply with Chapter 112 of Florida Statutes, which contains specific funding requirements for pension plans. We would like to point out our extensive experience with governmental clients in Florida. We have worked extensively with government clients, including several government owned hospitals and health systems. PR1CEwATERHOUSECOOPERS LLp Most specifically, we served as actuaries and consultants to the City of Clearwater for the past ten years and we are proud of our track record of service. Examples of our assistance to the City include the following; We worked closely with City staff in developing a revised pension ordinance effective January 1,' 1996 subject to collective bargaining. This process required frequent and difficult efforts on sbort notice. We also worked at the side of City staff to ensure that an agreement was reached with the collective bargaining units without subjecting the City to excessive cost or risk of future cost increases. We received corrancridations from several members of the City's staff following the completion of the process. We have assisted the City in developing creative actuarial methods and techniques to make its pension plan costs more manageable. These include developing an asset averaging approach and establishing a credit balance for City contributions above those required by State law. The result of these: changes has been to greatly reduce the volatility of the City's funding requirements, stabilizing its costs for several years. We assisted the City in responding to the Snair lawsuit as we'll as a number of other pension and retirement issues. We have been holding pre-retirement seminars for City employees for the past two years and have received overwhelmingly positive responses via employee: surveys. Employees have unanimously responded that the seminars are effective and informative. We are also proud of the services we've provided to other clients, both .here in Florida and around the world. We encourage you to contact these Tampa office clients regarding the quality and responsiveness of our service. City of Clearwater Relationship: 1988 to present 100 S. Myrtle Avenue Clearwater, FL 34618-4748 Ms. Margaret Simmons, Finance Director (813) 562-4538 Sarasota Memorial Hospital Relationsfup: 1994 to present 1700 S. Tamiami Trail Sarasota, FL 34231-3555 Mr. Walter L. George, Vice President, Duman Resources (941) 917-1955 Ms. Bonnie Gustafson, Manager, Compensation & Benefits (941) 917-1407 PIUCEWATERHOUSECQOPERS LLP 10 a Clay of Dunedin Relationship: 1496 to present 542 Main Street Dunedin, FL 34698 Ms. Maureen Freaney, Director of Administration (813) 738-1802 University Afedical Center Relationship: 1995 to present 655 West 8th Street Ms. Julie Crist, Manager, Compensation & Benefits (944) 549-4847 BayCare Health System Relationship: 1996 to present 701 6th Street South, St, Petersburg, FL 33701 Ms. Debbie Dewitt, Retirement Manager (941) 893-6793 E., indicate whether your firm qualifies as an "Enrolled actuary" as dicfned in Chapter 22D-1.02c of the Florlda Administrative Code- PricewaterbouseCoopers qualifies as an ' "Enrolled Actuary" under the definition of the Florida Administrative Code and has been actively serving in this capacity since 1985. F. Please provide information on lidgation your firin has been a party to during the past three years. The increase in litigation experienced by the business community over the past several years affects all professional services firms. PricewaterhouseCoopers and our competitors must expend significant amounts of time and capital refitting an increasing number of unwarranted claims for alleged professional malpractice. Consistent with the experience of other major firms, our firm or its predecessor firms, Coopers & Lybrand L.L.P. and Price Waterhouse LLP have been named as a defendant in numerous civil actions. Many of tbese are merely attempts by investors to recoup losses from third-party sources. Others are attempts to shift responsibility for management fraud and deception to the accounting profession. We believe our Firm has adequate defenses to the lawsuits in which it is named. PRtCEWAT'ERNOUSECOOPERS LLP FAMILIARITY WITH GrASB STATEMENT REQUIREMENTS Please indicate your familiarity with GASB Statements requirements relating to Pension Plans by providing a brief summary of the requirements acrd your experience In providing required disclosures. PricewaterhouseCoopers has extensive knowledge of GASB requirements as well as experience working with governmental units in Florida and throughout the country in the implementation of GASB statements. Our knowledge extends throughout our human resources, ,. _... . business assurance and tax and legal services Repruenradvc CovtrnMental ' :,:'•:'?tudllCltei:es; 4 practice, including all asp" 4. ? - ,,: T :.;' •' is of the GASBs requirements. •%"?'"??.:. °•?.?- -s • a . Most importantly, as the City of Clearwatees C tot e` v c'ey'a5 i;-;• actuaries, we assisted in the implementation of qty O`'? `t a`•:: GASB 25 and 27. Citypf(MSII -•_ t4TL??. As the largest of the Big Five accounting firms, city 0 s?: r . PricewaterhouseCoopers LLP has extensive Cipnse° uruty,??- -:be_vcl?men Ltnci experience in auditing governmental entities and assisting our clients with required Metro Dadti:SWatcr &,Scwer .: disclosures. Supporting this business assurance Disc,=r:' ''tir°n' practice, we put extensive resources in keeping Oja°.& C°`-'niyl current on GASB, FASB, PEI, SEC, AICPA p0 and FICPA as well as other regulatory and j $arasata;AuportAithority r x::ce•r- . µCou?ncr,.,,:r:.• • .•• oversight bodies that affect our clients' financial Sc3by j statements. Spflceport Flor) Authority " VolWia Comity :.: Here in Florida, we have an extensive governmental audit practice, serving as' public accountants for many of the state's largest cities, counties and special districts. PIUCEWATERHOUSECOOPERS LLP 12 m QUALIFICATIONS OF PERSONNEL TO BE ASSIGNED The right people--the advanced techniques in the world will not help if we do not have the right people to employ them. That is why we have taken care in choosing the PricewaterhouseCoopers team for you. We are sensitive to your need for cost-effective service, a broad range of capabilities, a business orientation and, most essentially, the people skills without which no professional relationship can succeed. Your PricewaterhouseCoopers team has all these attributes. We depend upon the skills and experience of our professional staff to deliver the high quality of service described in this proposal. The commitment of our Firm to anticipate, and meet the needs of the City of Clearwater has been demonstrated through our ten-year track record of services and continues through our commitment of partners and consultants to this engagement, PRICEIVATERHOUSECOOPERS LLP 13 • I . r top - STEPHEN M. META Global Human Resource Solutions Principal PricewaterhouseCoopers LLP, Tampa, Florida V Professional Experience Steve Metz is the partner in charge of Global Human Resource Solutions services for Florida and Puerto Rico. He is a pension actuary with more than 15 years of experience in human resource consulting and employee benefits. His experience includes employee benefits plan design, funding and administration and he consults with clients in all areas of compensation and benefits. Mr. Metz has lead numerous compensation and benefits engagements for employees in Florida including compensation and benefits surveys, employee communications, and the design of qualified and nonqualified programs. Significant Clients Served Blue Cross/Blue Shield of Florida City of Clearwater Florida Rock Industries, Inc. City of Dunedin Intracoastal Health Care System Hillsborough County School Board The PGA Tour Martin County School Board Rooms To Go Jackson Memorial Hospital Sarasota Memorial Hospital University Medical Center Education B.A. from the University of North Florida ProfessionallCommunity Affiliations Associate of the Society of Actuaries Enrolled Actuary Member of the American Academy of Actuaries Past President, Florida West Coast Employee Benefits Council Member, United Way of Hillsborough County Distribution Committee Member, Southern Employee Benefits Conference PRICEWATERHOUSECOOPERS LLP 14 6 -1 M MICHAEL CAREY Global Human Resource Solutions Senior Consultant' PrlcewaterhouseCoopers, Tampa, Florida Professional Experience Mr, Carey is a senior consultant in the Global Human Resource Solutions Group with ton years of experience in defined benefit and defined contribution consulting. He has significant f t I f ='. i Ll. PRICEWATERHOUSECOOPERS LLP experience: in per orming actuana va cations Or government, private sector and not-for- profit plans ranging in size from 100 to 10,000 participants, Over the past few years, Mr. Carey has worked with various clients on retirement plan analysis. • These projects included conversion analysis from traditional defined benefit plans to defined contribution plans. Mr. Carey's experience has allowed him to work with several employers offering hybrid retirement plans that combined features of both defined benefit and defined contribution plans. Mr. Carey has performed several studies on retirement benefits, assessing individual employee benefits, to determine what type of benefit plan best, fits the employers needs. Mr. Carey has worked on three major Voluntary Compliance Reviews for Florida employers, On these engagements, he reviewed all facets of the defined benefit and parts of the defined contribution plans to identify areas of noa-compliance and recommend improvements to the administration of these plans. Mr. Carey's experience also includes significant work in preparing and reviewing government filings, principally Form 5500s and PBGC filings. Significant Clients Served Carnival Cruise Line Hillsborough County School District Intracoastal Health Systems Jackson Memorial Hospital Martin Memorial Hospital PGA Tour St. Joseph's-St Anthony's Health System Sarasota Memorial Hospital Martin County School Munroe County School Education B.S. in Mathematics from State Universityof New York College at Buffalo ProfessionallCommunity Afliadens Member, Tampa Connection Past President, Toastmasters International 15 A 1 • CHRISTINA M. SWANSON Global Human Resource Solutions Senior Consultant Pricewaterhousetoopers LLP,'Tampa, Florida Pro,,ressionat Experience Ms. Swanson is a Senior Consultant in the Tampa office of PricewaterhouscCoopers Global Human Resource Solutions Group. She has over twenty years of experience in benefit management and consulting for private and public sector employers. Prior to joining PricewaterbouseCoopers, Ms. Swanson was Director of Employee Benefts and Risk Management for the School District of Hillsborough County, Florida, the twelfth largest school district in the country. Ms. Swanson's experience includes: ¦ Medical cost containment through managed care programs, plan design and integration, and funding alternatives ¦ Comprehensive analysis of bencfit.plans for strategic planning, cost efficiency and employee satisfaction ¦ Government entity purchasing alliances ¦ Benefit plan communications and employee education • Flexible Benefit Plan design and implementation ¦ Insurance company selection and negotiations ¦ Presentations to employee groups, insurance committees and collective bargaining associations • Analysis of and assistance with compliance requirements of federal and state statutes Workers' Compensation cost control, safety and return-to-work programs Prior to joining the School District, Ms. Swanson was a Senior Consultant with a Florida. based consulting firm, specializing in governmental clients. She has also held employee benefit management positions with Jim Walter Corporation in Tampa and, in Cleveland, Ohio, with British Petroleum, Eaton Corporation and AmeriTrust Bank. Significant Clients Served City of Cocoa Beach City of Melbourne Duval County School District Miami Dade County Hillsborough County City of Ocala/Marion County Hillsborough County Public Osceola County Schools Sarasota County School District City of Jacksonville Volusia County Lee County Volusia County School District Education B.A. from Case-Western Reserve University M.A. from Kent State University J.D. from the Cleveland-Marshall College of Law, Cleveland State University ProfessionaYCommunity Affiliations Admitted to Bar in Ohio Past President, Florida Educational Risk Management Association Past Member, Florida Division of Workers' Compensation Employer Advisory Group PRICEWATERHOUSECOOPERS LLP 17 [Lt." Professional Experience 'Mr. Hanlon is a business assurance partner in the Tampa office with over. 15 years of accounting'and auditing experience. He has provided auditing and consulting services to a wide variety of clients in the utilities, high technology, manufacturing/distribution, not-for-profit and government industries. He • has extensive experience in • mergers and acquisitions, initial public offerings, debt financings and SEC related tatters. Significant Clients Served TECO Energy/Tampa Electric Company Kissimece Utility Authority Medical Manager Corporation MessageQuest, Inc. Integrated Supply Network, Inc. Sarasota Manatee Airport Authority City of New Port Richey Pasco County Education B.S. in Accounting from the University of Florida Profession ai/Community Affiliations American and Florida Institutes of Certified Public Accountants Treasurer, Tampa Crossroads, Inc. Boy Scouts of America Leadership Tampa Alumni PMEWATERHOUSECOOPERS LLP 18 ... r.n Y... e•t , nr .rrY--J , .. .. , ..ln .... ..>. r.4.: ale.. :f,X •.I rl ?' ° '? , .. ? r ? MARK JOHNSON Tax and Legal Services Partner PricewaterhouseCoopers LLP, Tampa, Florida Professional Experience Mr. Johnson has over 20 years of experience providing'tax and financial consultation in connection with various business matters, including tax-exempt financing and employee benefit issues. He has assisted 'clients with the intricacies of defeasance, arbitrage and refundings. W. Johnson frequently speaks on taxation matters to a wide variety of professional groups, has written articles for various publications, and instructs national tax courses for the Firm's partners and managers. Si nil cant Clients Served City of Orlando City of Ocala Orange County Charlotte County Reedy Creek Improvement District Education B.S. in Accounting from Drake University. J.D. from Drake University i Professional/Community Affiliations American, Florida, Virginia and District of Columbia Institutes of Certified Public Accountants American, Iowa and District of Columbia Bar Associations University of Florida Fisher School of Accounting Steering Committee University of Central Florida Tax Advisory Board PR]CEWATEMOUSECOOPERS LLP 19 OW Y :.' COSTS TO PROVIDE THE VARIOUS SERVICES Our fee estimates have been developed in accordance with an hourly rate structure projecting the time requirements of partners and staff for the work involved. If our role in the engagement and the corresponding time requirements should change appreciably in the course of work, it is our policy to review a revised fee estimate with you before proceeding. Plans administered by PricewaterhouseCoopers are monitored on a continuous basis at no additional cost to ascertain the effects of regulatory change on the qualified status of such plans. Other advisory services which PricewatcrbouseCoopers may request or special services necessary to maintain the qualified status of the plans are not contemplated in our fee estimate. In connection with all special work, a separate fee estimate will be discussed . with you before beginning the project. For planning purposes, however, the average rate per consulting hour is estimated to be in the range of $80 to $300, depending upon the staff mix required to complete the assignment. We anticipate providing the actuarial valuation reports within six to eight weeks of receiving the employee census and trust data. 'This anticipated response tine, as well as our fee estimates, is contingent on the employee census data being accurate and complete within reasonable and customary standards. It is our practice to invoice monthly for time and expenses as the work progresses: Each monthly invoice will identify separate totals for professional fees earned and expenses incurred during the previous month. Payment of invoiced amounts is appreciated within thirty days after the invoice is received. PIUCEWA7ERHOVSE000PERS LLP 20 1999 Estimated Fees Recurring Actuarial Services Esdmated Fees 1'. We will-perform the annual valuation of the pension plans, including 526,000 providing a draft report and attend an annual meeting to review the valuation. Employee Pre-Retirement Planning Workbooks We will review and. revise the existing workbooks each year and $500 provide camera-ready publications materials to the City within 30 days of the signing of the contract. Employee Pension'Statements Individual pension plan benefit statements enhance the visibility of $1,000 the pension program to each plan participant. All the information that the participant is entitled to request under ERISA is developed. In addition to the required information, the statements present other useful - benefit information and a description of some of the more important plan provisions. These statements will be delivered to the City by April 1 for distribution to employees. Quarterly Pre-Retirement Seminars We will conduct quarterly pre-retirement seminars, targeting $200 per hour employees approaching retirement. These workshops will assist the employees in identifying their retirement goals and objectives and actions required to achieve them. These seminars will cover investment strategy, plan options and the retirement planning process. Miscellaneous Services We will provide all of the ether services identified by the City in its $$0 to $300 per hour request for proposals, including telephone pension advice and counceling services, advice to the City of Tax and Plan fssues and other communications as required. NJUMATERHOUSECOOPIERS LLP Zt { 1 uearwater FEB Interoffice Correspondence Sheet To: "Mayor and Commissioners t From. Margie Simmons, Financial Services Administrator cc... Mike Roberto, City Manager Date: February 25, 1999 RE; Pension Actuary Selection Commissioner Clark asked a very valid question at the Pension Trustee meeting on February 16'. Basically, the question was whether the recommended actuary was the lowest and most responsible bidder. In order to answer that question thoroughly, I should explain the process used to select the actuary. A request for proposal (RFP) was issued which detailed the requested services to be provided and asked for interested firms to provide proposals. The RFP asked for the proposals to include the following information: Firm Qualifications Familiarity with Governmental Accounting Standards Board (GASB) requirements related to pension plans. • Qualifications of firm personnel • Costs to provide the various services Eight responses were received and an evaluation committee of five (two from Finance, two from Human Resources, and one from Public Works) individually evaluated the proposals using the following criteria: • 30% - Firm qualifications, • 20% - Familiarity with GASB statement requirements, • 20% - Qualifications of firm personnel, • 20% - Cost, and • 10% - References. The composite ranking of the committee ranked the top three firms as ' PriceWaterhouseCoopers, AON Consulting, and EFI Actuaries. The lowest first year cost estimate received was from Pension Board Consultants (ranked 4' by the committee) at approximately $27,870 plus an additional cost for computer runs which was quoted at $1,000 - $1,500 per run. The top ranked firm (PriceWaterhouseCoopers) which was the firm recommended to the Trustees had the second lowest estimated first year cost of $32,350 (with no additional cost for computer runs). I hope this explanation adequately addresses your concerns. Please feel free to contact me at 562-4538 if you have additional questions or comments. I ?hEY'? ?+??' •EV . . - '.!'rY„rJ. ":?;'r..:.ii°F?° 'x.E si.:? ,`f:?' :.' .. s:f6a- .rr?=t: .. ., I ' J ti?...r i ?ti'. "{ 94. „. ., .. ..r Nd•JV.a31F.'1^: ra`-? . ? ".'f5„ :5 ? ,P. .?. .. ., - _ u. Veh5loh --r'US--{-,ce5 t... 91' t. `; .,•- a .. ? ? ??. ' ONE CITY. ONE FUTURE. City Attorney's Office Memorandum TO:. Beard of Trustees'of Employees Pension Plan FROM: Pamela K: AkinVty Attome y RE: RFP for Pension Attorney Services DATE ; . February 4, 1999 The City has received three responses to the Request for Proposals for Pension Attorney Services to the Board of Trustees and Pension Advisory` Committee.' A determination needs to be made on how the selection process will be'handled -and what the involvement of the Pension Advisory Committee will be: PKA:1mp , Copy to: Michael J. Roberto, City Manager..