R05-121
II
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3 RESOLUTION NO. R05- llA I
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5 A RESOLUTION OF THE CITY OF BOYNTON
6 BEACH, FLORIDA, APPROVING THE AWARD OF
7 RFP #037-1410-05/JA TO THE SEGAL COMPANY
8 FOR PENSION CONSUL TING SERVICES;
9 AUTHORIZING THE CITY MANAGER TO
10 EXECUTE AN AGREEMENT BETWEEN THE
11 PARTIES; AND PROVIDING AN EFFECTIVE DATE.
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14 WHEREAS, on May 11, 2005, Procurement Services opened and tabulated five
15 (5) proposals to the RFP "Pension Consulting Services"; and
16 WHEREAS, after review and evaluation it has been determined appropriate by
17 staff to recommend award of this RFP to The Segal Company of Atlanta, Georgia whose
18 RFP was overall responsive and responsible proposer; and
19 WHEREAS, upon recommendation of staff, the City Commission of the City of
20 Boynton Beach does hereby approve the award of RFP No.037-1410-05/JA to The Segal
21 Company of Atlanta, Georgia, Florida.
22 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION
23 OF THE CITY OF BOYNTON BEACH, FLORIDA, THAT:
24 Section 1. The foregoing "Whereas" clauses are hereby ratified and confirmed
25 as being true and correct and are hereby made a specific part of this Resolution upon
26 adoption hereof.
27 Section 2. The City Commission of the City of Boynton Beach, Florida,
28 hereby approves the award ofRFP No. 037-1410-05/JA to The Segal Company of Atlanta,
29 Georgia, for Pension Consulting Services.
30 Section 3. That the City Manager is hereby directed to execute a one (1) year
S:\CA\RESO\Agreements\Bid Awards\Award of RFP - Pension Consulting.doc
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1 contract with the option to renew the contract at the same terms, conditions and prices for
2 three (3) additional one (1) year periods for Pension Consulting Services between the City
3 of Boynton Beach and The Segal Company of Atlanta, Georgia, a copy of which is
4 attached hereto.
5 Section 4. That this Resolution shall become effective immediately.
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7 PASSED AND ADOPTED this ,q day of July, 2005.
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25 ATTEST:
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S:\CA\RESO\Agreements\Bid Awards\Award of RFP - Pension Consulting.doc
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CONSULTANT AGREEMENT FOR
PENSION CONSULTING SERVICES
THIS AGREEMENT is entered into between the City of Boynton Beach, hereinafter referred to
as "the City", and The Seeal Company , hereinafter referred to as "the
Consultant", in consideration of the mutual benefits, terms, and conditions hereinafter specified.
1. PROJECT DESIGNATION. The Consultant is retained by the City to perform
CONSULTANT servIces III connection with the project designated PENSION
CONSUL TING SERVICES.
2. SCOPE OF SERVICES. Consultant agrees to perform the services, identified on Exhibit
"A" attached hereto, including the provision of all labor, materials, equipment and supplies.
3. PAYMENT. The CITY shall pay PENSION CONSULTANT in accordance with the Fee
Schedule, pursuant to Attachment A, which is attached hereto as part ofthis agreement.
4. OWNERSHIP AND USE OF DELIVERABLES. Except to the extent that they incorporate
the Consultant's proprietary methodologies and report formats (collectively, "Consultant's
Proprietary Information"), all documents, data, and other tangible materials authored or
prepared and delivered by the Consultant to the City under this agreement (collectively,
"Deliverables"), are the sole and exclusive property of the City. To the extent that
Consultant's Proprietary Information is incorporated into such Deliverables, the City shall
have a perpetual, nonexclusive, worldwide, royalty-free license to use, copy, and modify such
Consultant Proprietary Information as part of the Deliverables, in the normal course of its
business. Notwithstanding anything herein to the contrary Consultant may retain archival
copies of the Deliverables.
5. COMPLIANCE WITH LA WS. Consultant shall, in performing the services contemplated by
this service agreement, faithfully observe and comply, with all federal, state and local laws,
ordinances and regulations that are applicable to the services to be rendered under this
agreement.
6. INDEMNIFICATION. Consultant shall indemnify, defend and hold harmless the City, its
officers and employees, from and against any and all claims, losses or liability, including
attorneys fees and costs, arising from injury or death to persons, including injuries, sickness,
disease or death to Consultant's own employees, or damage to property (collectively
"Claims") resulting from the gross negligence of Consultant. Notwithstanding anything to
the contrary herein, the Contractor shall not be liable for any portion of any Claims that result
from the acts or omissions of the City or its officials, employees, contractors or agents.
7. INSURANCE. The Consultant shall secure and maintain in force throughout the duration of
this contract comprehensive general liability insurance with a minimum coverage of
$1,000,000 per occurrence and $1,000,000 aggregate for personal injury; and $1,000,000 per
occurrence/aggregate for property damage, and professional liability insurance in the amount
of $1,000,000.
Said general liability policy shall name the City of Boynton Beach as an additional insured
and shall provide that the insurer shall endeavor to provide thirty (30) days written notice to
the City prior to any cancellation of said policy. Certificates of coverage as required by this
section shall be delivered to the City within fifteen (15) days of execution of this agreement.
8. INDEPENDENT CONTRACTOR. The Consultant and the City agree that the Consultant is
an independent contractor with respect to the services provided pursuant to this agreement.
Nothing in this agreement shall be considered to create the relationship of employer and
employee between the parties hereto. Neither Consultant nor any employee of Consultant
shall be entitled to any benefits accorded City employees by virtue of the services provided
under this agreement. The City shall not be responsible for withholding or otherwise
deducting federal income tax or social security or for contributing to the state industrial
insurance program, otherwise assuming the duties of an employer with respect to Consultant,
or any employee of Consultant.
9. COVENANT AGAINST CONTINGENT FEES. The Consultant warrants that he has not
employed or retained any company or person, other than a bonafide employee working solely
for the Consultant, to solicit or secure this contract, and that he has not paid or agreed to pay
any company or person, other than a bonafide employee working solely for the Consultant,
any fee, commission, percentage, brokerage fee, gifts, or any other consideration contingent
upon or resulting from the award or making of this contract.
For breach or violation of this warranty, the City shall have the right to annul this contract
without liability or, in its discretion to deduct from the contract price or consideration, or
otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift,
or contingent fee.
10. DISCRIMINATION PROHIBITED. The Consultant, with regard to the work performed by
it under this agreement, will not discriminate on the grounds of race, color, national origin,
religion, creed, age, sex or the presence of any physical or sensory handicap in the selection
and retention of employees or procurement of materials or supplies.
11. ASSIGNMENT. The Consultant shall not sublet or assign any of the services covered by this
agreement without the express written consent of the City.
12. NON-WAIVER. Waiver by the City of any provision of this agreement or any time
limitation provided for in this agreement shall not constitute a waiver of any other provision.
13. TERMINATION.
a. The City reserves the right to terminate this agreement at any time by giving ten (10) days
written notice to the Consultant.
b. In the event of the death of a member, partner or officer of the Consultant, or any of its
supervisory personnel assigned to the project, the surviving members of the Consultant
hereby agree to complete the work under the terms of this agreement, if requested to do
so by the City. This section shall not be a bar to renegotiations of this agreement between
surviving members of the Consultant and the City, if the City so chooses.
14. DISPUTES. Any dispute arising out of the terms or conditions of this agreement shall be
adjudicated within the courts of Florida. Further, this agreement shall be construed under
Florida Law.
15. NOTICES. Notices to the City of Boynton Beach shall be sent to the following address:
City of Boynton Beach
P.O. Box 310
Boynton Beach, FL 33425-0310
Notices to Consultant shall be sent to the following address:
Mr. Leon (Rocky) Joyner
2018 Powers Ferry Road, Suite 850
Atlanta, GA 30339
With a copy to:
General Counsel
One Park Avenue
New York, NY 10016
16. INTEGRATED AGREEMENT. This agreement, together with attachments or addenda,
represents the entire and integrated agreement between the City and the Consultant and
supersedes all prior negotiations, representations, or agreements written or oral. This
agreement may be amended only by written instrument signed by both City and Consultant.
DATED this j 2. 1. h day of S<e-pf e '-- bQ-r"-- , 200 ~
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City -~. ~~
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Attest! Authenticated: \/''c~ f..a<;~ ~cJ' C)\,..,.d 1- f-.:-o,":J
Title ,,~
(Corporate Se(lJ)
Approved as to Form: Attest! Authenticated:
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0 e of the City Attorney Secretary
EXHffiIT "A"
INTRODUCTION
The City of Boynton Beach is seeking proposals from qualified actuaries to provide Pension
Consulting Services in connection with its three (3) Defined Benefit Retirement Plans -
Firefighters', Police Officers' and General Employees, as governed by each plan's Board of
Trustees.
Inquiries relative to this proposal should be directed to Bill Mummert, Director of Financial
Services, at (561) 742-6311 or he may be reached via e-mail at mummertb@ci.boynton-
beach.fl.us.
BACKGROUND
The City maintains three (3) Defined Benefit Retirement Plans - Firefighters', Polices Officers'
and General Employees' (which covers all general, confidential, professional, supervisory,
management and executive employees).
The Firefighters' PIan covers all ,firefighters and fire department officers. The pIan represents
approximately 150 employees, of which 100 are active. An independent contractor who
provides the general management of the fund administers the fund. A Pension Board oversees
all fund activities. The fund has assets in the $38 million range, which are professionally
managed. A11 employees are within the "contributory" provisions of the PIan and are required to
contribute seven percent (7%) of their gross salary to the Fund. The defined benefit multiplier for
this group is three percent (3%). There is a ten (10) year vesting requirement. The plan is a
defined benefit pIan that includes a Deferred Retirement Option PIan (DROP) provision.
The Police Officers' PIan covers all sworn police department employees. The plan represents
approximately 200 employees, of which 125 are active. An independent contractor who
provides the general management of the fund administers the fund. A Pension Board oversees
all fund activities. The Fund has assets in the $36 million range, which are professionally
managed. A11 employees are within the "contributory" provisions of the Plan and are required to
contribute seven percent (7%) of their gross salary to the Fund. The defined benefit multiplier
for this group is three percent (3%). There is a ten (10) year vesting requirement. The pIan is a
defined benefit pIan that includes a Deferred Retirement Option Plan (DROP) provision.
The General Employees' Plan covers all permanent full-time employees except those covered
by the police and firefighters pension plans. The plan represents approximately 750 employees,
of which 550 are active. An independent contractor who provides the general management of
the fund administers the fund, A Pension Board oversees all fund activities. The Fund has assets
in the $66 million range, which are professionally managed. A11 employees are within the
"contributory" provisions of the PIan and are required to contribute seven percent (7%) of their
gross salary to the Fund. The defined benefit multiplier for this group is three percent (3%).
There is a five (5) year vesting requirement. The plan is a defined benefit plan that includes a
Deferred Retirement Option Plan (DROP) provision.
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EXHIBIT "A"
SECTION II
SCOPE OF SERVICES
The following are tasks that the consultant will be asked to complete for each ofthe City's three
defined benefit plans. The consultant will also act in an advisory capacity to other matters that
arise relevant to this pension plan.
1. Review the existing plan design and general management of the pIan to insure the long-
term stability of pIan assets and make recommendations for change, if needed.
2. Review the existing benefit structure and make recommendations for change, if needed.
a. Current Funding Rate (7%)
b. Current Pension Multiplier (3%)
c. Cost of Living Index
d. Current Pension Maximum
, .
3. Review current actuarial assumptions and funding levels to ensure the long-term
solvency of the plan.
a. Current Methodology
b. Pros and Cons of Smoothing
c. Interest Rate Assumptions
d. Unfunded Liablily
4. Provide analysis of current DROP provisions of each pIan and make recommendations
for change, if needed or to discontinue provision.
5. Provide a written report of findings and recommendations for changes based on the
review of each pIan.
6. Meet with the Board of Trustees of each Fund to explain any finding or
recommendations.
7. Provide ongoing supplemental actuarial and financial analysis to any proposed plan
amendment submitted to either the City Manager or City Commission.
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CITY CLERK'S OFFICE
MEMORANDUM
TO: Janet Allen
Buyer
FROM: Janet M. Prainito
City Clerk
DATE: July 26, 2005
RE: R05-121 - Pension Consulting Services to Segal Company.
Attached for your processing is the partially executed original Agreement between the
City of Boynton Beach and Segal Company. Once the document has been fully
executed, please return the original agreement to this office for our Central File.
Thank you.
(j~'r, 7fL~At:t,
Attachments
c: Central File (w/attachment)
S:\CC\WP\AFTER COMMISSION\Departmental Transmittals\2005\Janet Allen - Segal Company - Pension Consulting Services.doc