SELF INSURANCE ACTUARY AGREEMENT (5)AGREEMENT
THIS AGREEMENT, made and entered into this s day of , t ) , 2017, by and
between the CITY OF CLEARWATER, FLORIDA, a municipal corporation, hereinafter eferred to as "City", and
Madison Consulting Group, Inc., an actuarial consulting Firm, located at 200 North Second Street, Madison,
Georgia, 30650 hereinafter referred to as "Contractor ";
WITNESSETH
WHERAS, 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 providing 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 years ending September 30, 2017 thru 2021. This
agreement may be terminated by either party with 30 days written notice.
2. The Contractor shall perform an actuarial analysis of the City's general, automobile, property, and Workers
Compensation liability accruals, currently accounted for as part of the City's Central Insurance Fund, and
provide the City with a written report of its analysis on an annual basis. The analysis will include, but not
necessarily be limited to, a computation of the "IBNR" (incurred but not reported) liabilities as of the
September 30 fiscal year -end. The Contractor will include in the annual report all disclosures necessary to
comply with GASB Statement No. 10.
3. Following the completion of the actuarial review, the Contractor shall issue a report (six bound copies and
one electronic) which summarizes 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 the working papers
available, upon request, to the following parties or their designees:
D City of Clearwater
D City's external auditors
5. The Contractor shall prepare and submit to the City no later than October 16th of each year a detailed list of
all documents needed from the City and the date of the City's required response. The City will provide the
requested information by the date required. The Contractor shall complete the performance under this
contract by December 4th of each year.
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. The total amount of this contract, including travel and other
out -of- pocket expenses, shall not exceed $5,000 per year for fiscal years 2017 thru 2021. 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 for each year. The final payment for each
year will be made within 30 days of receipt of the final actuarial reports.
1
7. The Contractor shall provide and maintain in force at all times during the agreement with the City, such
insurance as follows:
a. Commercial General Liability Insurance coverage, including but not limited to, premises operations,
products /completed operations, products liability, contractual liability, advertising injury, personal
injury, death, and property damage in the minimum amount of $1,000,000 (one million dollars) per
occurrence and $2,000,000 (two million dollars) general aggregate.
b. Professional Liability/Malpractice /Errors or Omissions Insurance coverage appropriate for the type of
business engaged in by the Respondent with minimum limits of $2,000,000 (two million dollars) per
occurrence. If a claims made form of coverage is provided, the retroactive date of coverage shall be no
later than the inception date of claims made coverage, unless the prior policy was extended indefinitely
to cover prior acts. Coverage shall be extended beyond the policy year either by a supplemental
extended reporting period (SERP) of as great a 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.
IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed the day and year first
above written.
Approved as to form:
Paul Ricliard Hull
Assistant City Attorney
2
CITY OF CLEARWATER, FLORIDA
By: W
g. ILAAAVE.
William B. Horne, II
City Manager
Attest:
'Rosemarie Call
City Clerk
MADISON CONSULTING GROUP, INC.
By:
ohn Gleba
Secretary/Treasurer