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HomeMy WebLinkAboutContracts & Agreements_101-2022AGREEMENT TO PERFORM PROFESSIONAL SERVICES This agreement for the provision of actuarial services ("Agreement") is made and entered in this 15th day of June, 2022 ("Effective Date"), by and between the City of Redlands, a municipal corporation ("City") and Bickmore Actuarial Corporation("Consultant") City and Consultant are sometimes individually referred to herein as a "Party" and, together, as the "Parties " In consideration of the mutual promises contained herein, City and Consultant agree as follows ARTICLE 1— ENGAGEMENT OF CONSULTANT 1 1 City hereby engages Consultant to provide actuarial services for City (the "Services") 1 2 The Services shall be performed by Consultant in a professional manner, and Consultant represents that it has the skill and the professional expertise necessary to provide the Services to City at a level of competency presently maintained by other practicing professional consultants in the industry providing like and similar types of Services ARTICLE 2 — SERVICES OF CONSULTANT 2 1 The Services that Consultant shall perforrn are more particularly described in Exhibit "A," titled "Scope of Services," which is attached hereto and incorporated herein by this reference 2.2 Consultant shall comply with applicable federal, state and local laws and regulations in the performance of this Agreement including, but not limited to, any applicable State prevailing wage laws ARTICLE 3 — RESPONSIBILITIES OF CITY 31 City designates Danielle Garcia, Director of Management Services, as City's representative with respect to performance of the Services, and such person shall have the authority to transmit instructions, receive information, interpret and define City's policies and decisions with respect to performance of the Services. ARTICLE 4 — PERFORMANCE OF SERVICES 4 1 The Consultant shall complete the Services by June 1, 2024, unless the Services are terminated earlier or extended as provided for herein. 4.2 If Consultant's Services include deliverable electronic visual presentation materials, such materials shall be delivered in a form, and made available to City, consistent with City Council -adopted policy for the same It shall be the obligation of Consultant to obtain a copy of such policy from City staff. 1 L.\ea\Agreements\Biekmore Agreement GASB IO.PS-1 1.FY21-0147.doc.jn ARTICLE 5 — PAYMENTS TO CONSULTANT 5 1 Total compensation for the Consultant's performance of the Services shall be in the amount of six thousand eight hundred dollars (6,800 00) City shall pay Consultant on a time and materials basis up to the not to exceed amount in accordance with Exhibit "C," titled "Fee Schedule" which is attached hereto and incorporated herein by this reference 5.2 Consultant shall submit monthly invoices to City describing the Services performed during the preceding month. Consultant's invoices shall include a brief description of the Services performed, the dates the Services were performed, the number of hours spent and by whom, and a description of reimbursable expenses related to the Services City shall pay Consultant no later than thirty (30) days after receipt and approval by City of Consultant's invoice 5.3 Any notice or other communication required, or which may be given, pursuant to this Agreement, shall be in wrrtrng. Any such notice shall be deemed delivered (i) on the date of delivery in person, (ii) five (5) days after deposit in first class registered mail, with return receipt requested, (ui) on the actual delivery date if deposited with an overnight courier, or (iv) on the date sent by facsimile or electronic mail transmission (including PDF), if confirmed with a copy sent contemporaneously by first class, certified, registered or express mail, in each case properly posted and fully prepaid to the appropriate address set forth below, or such other address as a Party may provide notice in accordance with this section. CITY. City Clerk City of Redlands 35 Cajon Street P 0 Box 3005 (mailing Redlands, CA 92373 jdonaldson@cityofredlands.org Phone (909) 798-7531 CONSULTANT. Nina Gau, VP & Principal, Operations Bickmore Actuarial 180 Promenade Circle, Suite 300 Sacramento, California 95834 P 0 Box 3005 (maihng) ngau@bickmoreactuarial.net Phone 916-244-1160 ARTICLE 6 — INSURANCE AND INDEMNIFICATION 6 1 The following insurance coverage required by this Agreement shall be maintained by Consultant for the duration of its performance of the Services Consultant shall not perform any Services unless and until the required insurance listed below is obtained by Consultant. Consultant shall provide City with certificates of insurance and endorsements evidencing such insurance prior to commencement of the Services. Insurance policies shall include a provision prohibiting cancellation or modification of the policy except upon thirty (30) days prior written notice to City A. Workers' Compensation and Employer's Liability insurance m the amount that meets statutory requirements with an insurance carrier acceptable to City, or certification to 2 L.\ca\Agreements\Bickmore Agreement GASB 10.PS-1 1.FY21-0147.doc.jn City that Consultant is self -insured or exempt from the workers' compensation laws of the State of California. Consultant shall execute and provide City with Exhibit "C," titled "Workers' Compensation Insurance Certification," which is attached hereto and incorporated herein by this reference, prior to performance of the Services B Comprehensive General Liability insurance with carriers acceptable to City in the minimum amount of One Million Dollars ($1,000,000) per occurrence and Two Million Dollars ($2,000,000) aggregate, for public liability, property damage and personal injury is required. City shall be named as an additional insured and such insurance shall be primary and non-contributing to any insurance or self-insurance maintained by City C Consultant shall secure and maintain professional liability insurance throughout the term of this Agreement in the amount of One Million Dollars ($1,000,000) per claim made. D Business Auto Liability coverage, with minimum limits of One Million Dollars ($1,000,000) per occurrence, combined single limit bodily injury hability and property damage liability This coverage shall include all Consultant owned vehicles used in connection with Consultant's provision of the Services, hired and non -owned vehicles, and employee non -ownership vehicles City shall be named as an additional insured and such insurance shall be primary and non-contributing to any insurance or self-insurance maintained by City E Consultant is expressly prohibited from assigning or subcontracting any of the Services without the prior written consent of City In the event of mutual agreement by the Parties to assign or subcontract a portion of the Services, Consultant shall add such assignee or subcontractor as an additional insured to the insurance policies required hereby and provide City with the insurance endorsements prior to any Services being performed by the assignee or subcontractor 6.2 Consultant shall defend, indemnify and hold harmless City and its elected and appointed officials, employees and agents from and against any and all claims, losses or hability, including attorneys' fees, arising from injury or death to persons or damage to property occasioned by any negligent act or omission by, or the willful misconduct of, Consultant, or its officers, employees and agents in performing the Services. ARTICLE 7 — CONFLICTS OF INTEREST 7 1 Consultant covenants and represents that it does not have any investment or interest in any real property that may be the subject of this Agreement or any other source of income, interest in real property or investment that would be affected in any mariner or degree by the performance of Consultant's Services. Consultant further covenants and represents that in the performance of its duties hereunder, no person having any such interest shall perform any Services under this Agreement. 3 L:\ca\Agreements\Bickmore Agreement GASB 10.PS-1 1.FY21-0147.doc.jn 7.2 Consultant agrees it is not a designated employee within the meaning of the Political Reform Act because Consultant. A. Does not make a governmental decision whether to (i) approve a rate, rule or regulation, or adopt or enforce a City law; (ii) issue, deny, suspend or revoke any City permit, license, application, certification, approval, order or similar authorization or entitlement; (iii) authorize City to enter into, modify or renew a contract; (iv) grant City approval to a contract that requires City approval and to which City is a party, or to the specifications for such a contract; (v) grant City approval to a plan, design, report, study or similar item, (vi) adopt, or grant City approval of, policies, standards or guidelines for City or for any subdivision thereof B Does not serve in a staff capacity with City and in that capacity, participate in making a governmental decision or otherwise perform the same or substantially the same duties for City that would otherwise be performed by an individual holding a position specified in City's Conflict of Interest Code under Government Code section 87302 7 3 In the event City determines that Consultant must disclose its financial interests, Consultant shall complete and file a Fair Political Practices Commission Form 700, Statement of Economic Interests, with the City Clerk's office pursuant to the written instructions provided by the City Cleric. ARTICLE 8 — GENERAL CONSIDERATIONS 8 1 In the event any action is commenced to enforce or interpret any of the terms or conditions of this Agreement the prevailing Party shall, in addition to any costs and other relief, be entitled to the recoveiy of its reasonable attorneys' fees, including fees for the use of in-house counsel by a Party 8.2 Consultant shall not assign any of the Services, except with the prior written approval of City and in strict compliance with the terms and conditions of this Agreement. Any assignment or attempted assignment without such prior written consent may, in the sole discretion of City, result in City's immediate termination of this Agreement. 8 3 Consultant is for all purposes under this Agreement an independent contractor and shall perform the Services as an independent contractor Neither City nor any its agents shall have control over the conduct of Consultant or Consultant's employees, except as herein set forth. Consultant shall supply all necessary tools and instrumentalities required to perform the Services Assigned personnel employed by Consultant are for its account only, and in no event shall Consultant or personnel retained by it be deemed to have been employed by City or engaged by City for the account of, or on behalf of City Consultant shall have no authority, express or implied, to act on behalf of City in any capacity 4 L:\ca\Agreements\Bielcmore Agreement GASB 10.PS-1 1.FY21-0147.doc.jn whatsoever as an agent, nor shall Consultant have any authority, express or implied, to bind City to any obligation. 8 4 This Agreement may be terminated by City, in its sole discretion, by providing not less than five (5) days prior written notice to Consultant of City's intent to terminate If this Agreement is terminated by City, an adjustment to Consultant's compensation shall be made, but (1) no amount shall be allowed for anticipated profit or unperformed Services, and (2) any payment due Consultant at the time of termination may be adjusted to the extent of any additional costs to City occasioned by any default by Consultant. Upon receipt of a termination notice, Consultant shall immediately discontinue its provision of the Services and, within five (5) days of the date of the termination notice, deliver or otherwise make available to City, copies (in both hard copy and electronic form, where applicable) of project related data, design calculations, drawings, specifications, reports, estimates, summaries and such other information and materials as may have been accumulated by Consultant in performing the Services Consultant shall be compensated on a pro-rata basis for Services completed up to the date of termination, 8 5 Consultant shall maintain books, ledgers, invoices, accounts and other records and documents evidencing costs and expenses related to the Services for a period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant pursuant to this Agreement. Such books shall be available at reasonable times for examination by City at the office of Consultant. 8 6 This Agreement, including the Exhibits incorporated herein by reference, represents the entire agreement and understanding between the Parties as to the matters contained herein, and any prior negotiations, written proposals or verbal agreements relating to such matters are superseded by this Agreement. Except as otherwise provided for herein, any amendment to this Agreement shall be in writing, approved by City and signed by City and Consultant. 8 7 This Agreement shall be governed by and construed in accordance with the laws of the State of California, without regard to its conflicts of laws provisions. The Parties agree that all actions or proceedings arising in connection with this Agreement shall be tried and litigated only in the state courts located in San Bernardino County, California, and the federal courts located in Riverside County, California. 8 8 If one or more of the sentences, clauses, paragraphs or sections contained in this Agreement is declared invalid, void or unenforceable by a court of competent jurisdiction, the same shall be deemed severable from the remainder of this Agreement and shall not affect, impair or invalidate the remaining sentences, clauses, paragraphs or sections contained herein, unless to do so would deprive a Party of a material benefit of its bargain under this Agreement. 5 L.\ca\Agreements\Bickmore Agreement GASB 10.PS-1 1.FY21-0147.doc.jn IN WITNESS WHEREOF, duly authorized representatives of City and Consultant have signed in confirmation of this Agreement CITY OF REDLANDS By BICKMORE ACTUARIAL By Charles M Duggan, City , •'ager Nin iau, Vice President and Principal ATTEST OC/M-ge440D ie Donaldson, City Clerk 6 L \ca\Agreements\Bickmore Agreement GASB 10 PS 1 1 FY21 0147 doc.jn EXHIBIT "A" SCOPE OF SERVICES The City is seeking professional actuarial advice with regard to its self -insured liability and workers 'compensation programs The following is a brief outline of our understanding of the scope of work to be performed and our fees The objective of these studies is to provide an estimate of outstanding liabilities, projection of loss costs, cash flow and investment income Our reports will include the following information ❑ Calculate program funding levels for the 2022-23 and 2023-24 program years at the expected level, as well as at various confidence levels ❑ Determine appropriate rates for claims incurred during the 2022-23 and 2023-24 program years at the expected level, as well as at various confidence levels ❑ Estimate required funding for the program's outstanding losses and loss adjustment expenses for all preceding fiscal years as of June 30, 2022 The outstanding losses and loss adjustment expenses are to be stated at the expected level, as well as at various confidence levels ❑ Provide each of the estimates specified above on both discounted and full value bases ❑ Analysis will be performed using data valued as of June 30, 2022 ❑ Provide a statement of compliance with GASB 10 and 30 ❑ Estimate the program's cash flow requirements for a given number of fiscal years, separately identified for each accident year 7 L:\ca\Agreements\Bickmore Agreement GASB 10.PS-1 1.FY2 1 -0147.doc.jn EXHIBIT "B" FEE SCHEDULE We will agree to complete the scope of work discussed above for the following fees Project Component Fees Work Comp Actuarial Study $4,400 Liability Actuarial Study 4,400 PRISM EGL Actuarial Subsidy -2,000 Total $6,800 Personal visits will be billed for customary travel expenses capped at $1,000 maximum Should other services beyond the scope of work outlined above be required, we will bill for our time and out of pocket expenses at the rates specified below Consultant Hourly Rate FCAS $325 ACAS 275 Actuarial Staff 150 Administrative Staff 75 Upon delivery of a draft report, consultant shall be entitled to the entire fee If this agreement is terminated prior to delivery of a draft report, client agrees to pay contractor for all hours incurred through the date notice of termination is given Such amount shall be limited to the maximum fees stated in this agreement. Our target delivery date for the draft reports will be within four weeks of receipt of complete data 8 L:\ea\Agreements\Bickmore Agreement GASB 10.PS-1 1.FY21-0147.doc.jn EXHIBIT "C" WORKERS' COMPENSATION INSURANCE CERTIFICATION Every employer, except the State, shall secure the payment of compensation in one or more of the following ways (a) By being insured against liability to pay compensation by one or more insurers duly authorized to write cornpensatlon insurance in this State (b) By securing from the Director of Industrial Relations, a certificate of consent to self -insure, either as an individual employer, or as one employer in a group of employers, which may be given upon furmshmg proof satisfactory to the Director of Industrial Relations of ability to self -insure and to pay any compensation that may become due to his or her employees CHECK ONE V I am aware of the provisions of Section 3700 of the Labor Code which requires every employer to be insured against liability for Workers' Compensation or to undertake self- insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the work and activities required or permitted under this Agreement. (Labor Code § 1861) I affirm that at all times, in performing the work and activities required or permitted under this Agreement, I shall not employ any person in any manner such that I become subject to the workers' compensation laws of California. However, at any time, if I employ any person such that I become subject to the workers' compensation laws of California, immediately I shall provide the City with a certificate of consent to self -insure, or a certification of workers' compensation insurance I certify under penalty of perjury under the laws of the State of California that the information and representations made in this certificate are true and correct. BICKMORE CORPORATION Date June 14, 2022 au, Vice President and Principal 9 L.\ca\Agreements\Biekmore Agreement GASB 10.PS-1 1 FY21-0147.doc.jn