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RES 1997-2737 - Contract with Milliman and Robertson Inc for valuation services for civilian employees retirement system F F°MAHA. , RECEIVED U���`�� 7 Finance Department s t;K +(� Omaha/Douglas Civic Center • t�` y 4 1819 Farnam Street,Suite 1004 ®, ' r� � � 97 SEP 29 PM2• �� Omaha,Nebraska 68183-1004 ` (402)444-5416 ° 4. IP.,4 FeeR°1,s• Telefax(402)444-5423 CITY CLERK City of Omaha O M A H A, N E #A S i 4 Louis A.D'Ercole Director Hal Daub,Mayor September 30, 1997 Honorable President and Members of the City Council, The City of Omaha received four proposals to provide actuarial services to the City of Omaha Employees Retirement System on August 27, 1997. Following is a recap of the cost of the proposals: The Segal Company, Englewood, CO $14,500 Milliman and Robertson, Inc., Omaha,NE $14,900 Mammel Associates, Inc., Omaha,NE $15,000 Coopers and Lybrand, LLP, Dallas, TX $34,500 A Pension Board committee consisting of Douglas Schrawger, Buster Brown and Stanley Timm heard presentations from the three firms that submitted the lowest priced proposals on September 12, 1997. On September 17, 1997 the Pension Board passed by unanimous vote of six of its seven members a recommendation to the City Council to hire Milliman and Robertson,Inc. to perform the services. Milliman and Robertson performed the actuarial study in 1995 to the satisfaction of the City. Milliman and Robertson is a local firm. This fact expedites availability if Pension Board members need to contact the firm with questions about any portion of the study or any additional concerns that may arise at a later date. The Pension Board hereby recommends adoption of the attached resolution to hire the second low bid to perform the actuarial services for the City Civilian Pension System. Sincerely, A oved: 7 9, 29 Stanley P. T mm Date Louis A. D'Erco e ate System Administrator Finance Director App e : Refe o ity nc.1 for Consideration: ° d3 7Ø7 vis Date Mayor's Officecate Human Rel ions Director P:\FIN\6800.SKZ I CONTRACT THIS CONTRACT is entered into by and between the City of Omaha, a municipal corporation of the State of Nebraska, and the City of Omaha Civilian Employees Retirement System Board of Trustees, also collectively referred to as "City" and Milliman and Robertson, Inc., also referred to as "Contractor". PROVISIONS OF THE CONTRACT 1. EQUAL EMPLOYMENT OPPORTUNITY Annexed hereto as Exhibit "A" and made a part hereof by reference are the equal employment provisions of this Contract. Refusal by the Contractor or subcontractor to comply with any portion of this program as therein stated and described will subject the offending party to any or all of the following penalties: (1) Withholding of all future payments under the involved contracts to the Contractor in violation until it is determined that the Contractor or subcontractor is in compliance with the provisions of the Contract; (2) Refusal of all future bids for any contracts with the City or any of its departments or divisions until such time as the Contractor or subcontractor demonstrates that he has ' • established and shall carry out the policies of the program as herein outlined. 2. NON-DISCRIMINATION The Contractor shall not, in the performance of this Contract, discriminate or permit discrimination in violation of federal or state laws or local ordinances because of race, color, sex, age, political or religious opinions, affiliations or national origin or on the basis of disability as defined by the Americans with Disabilities Act of 1990 and Omaha Municipal Code (13-82) and shall take all action necessary to comply with the Americans with Disabilities Act of 1990 and Omaha Municipal Code(Chapter 13) including,but not limited to reasonable accommodation. 3. SERVICES Contractor covenants that it shall perform the following services: (1) Consultation and advisory services relative to plan design. This will include assessing the validity of current actuarial assumptions and method, alternatives as appropriate, and commentary as to whether the existing assumptions are overly liberal or too conservative. (2) Contractor will conduct and submit an actuarial valuation report reflecting the assets and liabilities of the plan as of July 1, 1997. (3) Contractor will attend three meetings in Omaha, Nebraska. The focus of the first meeting will include the review of assumptions, plan design and other topics as appropriate. Subsequent to the planning meeting, there will be two additional meetings to present the results of the study to the Board of Trustees,the City Council and the membership of the System. (4) Contractor will prepare an experience analysis which reviews plan experience through July 1, 1997. (5) Contractor will prepare estimated costs for the special topics referenced in Exhibit "1" and the "Addendum" to the request for proposals. 4. FEES The total amount payable under this contract shall not exceed$14,900. Said fee shall be paid according to the general schedule as follows: (1) Actuarial valuation and report, meetings $14,100 and special topic analysis and report (2) Update per Government Accounting 800 Standards Board- 1997 TOTAL $14,900 5. CAPTIONS Captions used in this contract are for convenience and are not used in the construction of this contract. 6. APPLICABLE LAW Parties to this contract shall conform with all existing and applicable City ordinances, resolutions, State laws, Federal laws, and all existing and applicable rules and regulations. Nebraska law will govern the terms and performance under this contract. 7. INTEREST OF THE CITY Pursuant to Section 8.05 of the Home Rule Charter, no elected official or any officer or employee of the City shall have a financial interest, direct or indirect, in any City contract. Any violation of this section with the knowledge of the person or corporation contracting with the City shall render the contract voidable by the Mayor or Council. - 2 - a p. 8. INTEREST OF THE CONTRACTOR The Contractor covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which would conflict with the performance of services required to be performed under this contract. It further covenants that in the performance of this contract, no person having any such interest shall be employed. 9. MERGER This contract shall not be any mer ed intoother oral or written contract. This is the complete g p and full agreement of the parties. 10. MODIFICATION This contract contains the entire agreement of the parties. No representations were made or were relied upon by either party other than those that are expressly set forth herein. No agent, employee or other representative of either party is empowered to alter any of the terms hereof unless done in writing and signed by an authorized officer of the respective parties. 11. ASSIGNMENT The Contractor may not assign its rights under this contract without the express prior written consent of the City. 12. STRICT COMPLIANCE All provisions of this contract and each and every document that shall be attached shall be strictly complied with as written and no substitution or change shall be made except upon written direction from an authorized representative. AUTHORIZED REPRESENTATIVE In further consideration of the mutual covenants herein contained,the parties hereto expressly agree that for purposes of notice including legal service of process, during the term of this contract and for the period of any applicable statute of limitations thereafter,the following named individuals shall be the authorized representatives of the parties. (1) City of Omaha (2) Milliman and Robertson, Inc. Civilian Employees Retirement System 10050 Regency Circle, Suite 500 Stanley P. Timm, Administrator Omaha,NE 68114 Omaha/Douglas Civic Center 1819 Farnam Street, Suite 1004 Omaha NE 68183 - 3 - 4 Executed by the City of Omaha this 171 day of ali‘4' , 1997. ATTEST: CITY OF OMAH A , A MUNICIPAL CORPORA IO it(fi By C y Clerk Mayor PPROVED AS TO FORM: RECOMMENDED: i Attor Administrate , City of Omaha Civilian Employees Retirement System Executed by Milliman and Robertson, Inc. this a 74.day of p bee , 1997. WITNESS: MILLIMAN AND ROBERTSON, INC. QAtth, By 624 alety14 P:\FIN\6802.SKZ -4 - EXHIBIT "A" EQUAL EMPLOYMENT OPPORTUNITY CLAUSE During the performance of this contract, the Contractor agrees as follows: (1) The Contractor shall not discriminate against any employee or applicant for employment because of race,religion,color,sex,national origin,or disability as defined by the Americans With Disabilities Act of 1990 and Omaha Municipal Code 13-82. The Contractor shall take affirmative action to ensure that applicants are employed and that employees are treated during employment without regard to their race, religion, color, sex or national origin. The Contractor shall take all actions necessary to comply with the Americans With Disabilities Act of 1990 and Omaha Municipal Code (Chapter 13) including, but not limited to, reasonable accommodation. As used herein, the word "treated" shall mean and include, without limitation, the following: Recruited, whether advertising or by other means; compensated; selected for training,including apprenticeship;promoted; upgraded; demoted; downgraded; transferred; laid off; and terminated. The Contractor agrees to and shall post in conspicuous places, available to employees and applicants for employment, notices to be provided by the contracting officers setting forth the provisions of this nondiscrimination clause. (2) The Contractor shall, in all solicitations or advertisements for employees placed by or on behalf of the Contractor, state that all qualified applicants will receive consideration for employment without regard to race, religion, color, sex, national origin, or disability as recognized under 42 USCS 12101 et seq. (3) The Contractor shall send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding a notice advising the labor union or worker's representative of the Contractor's commitments under the Equal Employment Opportunity Clause of the City and shall post copies of the notice in conspicuous places available to employees and applicants for employment. (4) The Contractor shall furnish to the contract compliance officer all federal forms containing the information and reports required by the federal government for federal contracts under federal rules and regulations, and including the information required by Sections 10-192 to 10-194, inclusive, and shall permit reasonable access to his records. Records accessible to the Contract Compliance Officer shall be those which are related to Paragraphs (1)through (7) of this subsection and only after reasonable notice is given the Contractor. The purpose for this provision is to provide for investigation to ascertain compliance with the program provided for herein. (5) The Contractor shall take such actions with respect to any subcontractor as the City may direct as a means of enforcing the provisions of Paragraphs(1)through(7)herein, including penalties and sanctions for noncompliance; however, in the event the Contractor becomes involved in or is threatened with litigation as the result of such directions by the City, the AN • 4 City will enter into such litigation as necessary to protect the interests of the City and to effectuate the provisions of this division; and in the case of contracts receiving federal assistance, the Contractor or the City may request the United States to enter into such litigation to protect the interests of the United States. (6) The Contractor shall file and shall cause his subcontractors, if any,to file compliance reports with the Contractor in the same form and to the same extent as required by the federal government for federal contracts under federal rules and regulations. Such compliance reports shall be filed with the Contract Compliance Officer. Compliance reports filed at such times as directed shall contain information as to the employment practices, policies, programs and statistics of the Contractor and his subcontractors. (7) The Contractor shall include the provisions of Paragraphs (1) through (7) of this Section, "Equal Employment Opportunity Clause", and Section 10-193 in every subcontract or purchase order so that such provisions will be binding upon each subcontractor or vendor. P:\LA W\STORED\EEOC-A.FMT - 2 - Exhibit 1 1997 ACTUARIAL VALUATION CITY OF OMAHA EMPLOYEES' RETIREMENT SYSTEM Special Topics The following items are requested to be valued by the actuary performing the 1997 actuarial valuation once the financial soundness of the system has been established: - Increase service retirement factor from 1.667% to 1.75% and incrementally .05% thereafter to 2.00% for service years beginning in 1998. - Increase service retirement factor from 1.667% to 1.70% and incrementally .025% thereafter to 2.00% retroactive for all years of service. - Change rule of 85 to rule of 80. - Annual savings to the system for each 1% reduction in the interest rate paid upon withdrawals of contributions due to separations from service (currently maximum of 5%). - If you retire prior to meeting the rule of 85, reduce 8% per year in the pension amount for each year under the total of 85. - If you retire prior to meeting the rule of 85, reduce 10% per year in the pension amount for each year under the total of 85. asA CITY OF OMAHA LEGISLATIVE CHAMBER • Omaha,Nebr September 30: 19 97 RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA: WHEREAS, an actuarial valuation of the Civilian Employees Retirement System is periodically required to review the system's assets and liabilities and to review the appropriateness of the assumptions upon which the system is designed; and, WHEREAS, the Civilian Employees Retirement System Board of Trustees on September 17, 1997 voted to recommend a contract with Milliman and Robertson,Inc., a copy of which is attached and by this reference made a part hereof,for such actuarial valuation services; and, WHEREAS, Milliman and Robertson, Inc. will undertake the actuarial services detailed in the agreement for a fee of$14,900.00. NOW,THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA: THAT,the contract with Milliman and Robertson,Inc.for actuarial valuation services for the Civilian Employees Retirement System is approved. THAT, the Finance Department is authorized to pay the cost of actuarial valuation services performed under this contract from the Civilian Employees Pension System Actuarial Analysis Organization 1730. APPROVED AS TO FORM: f SS ST Y ATTORNEY DATE P:\FIN\6801.SKZ c _ By Councilmember Adopted SEP 0 i9974,/‘ . ity Clerk Approved.... ... .. .. .. ... O� a or 1- 0 1 .1" a n ; m 0 7d Xi h--' 8- v ON CA CO ii , CD a. ;. - _ o cm N aa � o � y 5 O -,:., a M I f ,{.may.. c ' a n , CD CFD CD � PD ' CCDD �ii• tn. P. ....s.\ \\ f . [I. \ • N. 4„r: f