SELF INSURANCE ACTUARY AGREEMENT (2)
AGREEMENT
THIS AGREEMENT, made and entered into this ^O+L day of OG.:~'Ob~
2006, by and between the CITY OF CLEARWATER, FLORIDA, a municipal corporation,
hereinafter referred to as "City", and Madison Consulting Group, an actuarial consulting
Firm, located at 200 North Second Street, Madison, Georgia, 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 providing actuarial services, is fully
qualified to meet their 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, 2006. The Contractor shall perform an actuarial analysis of the City's general,
automobile, property, 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, 2006. 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 (fifteen copies) summarizing the findings of the actuarial analysis of the Central
Insurance Fund.
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:
~ City of Clearwater
~ U.S. Department of Housing and Urban Development
~ U.SD. 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
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 20,
2006, a detailed schedule of the list of documents needed from the City including the related
date required. The City will provide the requested information by the date required. The
Contractor shall complete performance under this contract by December 15,2006.
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 travel and 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 travel and other
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
would generally be required to perform the prescribed services. Progress payments will be
made on a monthly basis for work completed to-date based on invoices submitted by the
Contractor. The sum of such progress payments shall not exceed 90% 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.
CITY OF CLEARWATER, FLORIDA
By: ~-;,~15 .~7{:
William B. Home, II
City Manager
Approved as to form:
Attest:
U~~l
Paul Richard Hull
Assistant City Attorney
Pl.
thia E. Goudeau
City Clerk
MADISON CONSULTING GROUP, IN
By: t.k~
Attest: /1!~]~y
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