Loading...
HomeMy WebLinkAboutAON Consulting & Insurance Services - 2006-04-172006 APR -6 Ali O 11T f Gt Council/Agency Meeting Held Fiiir t a►�G1 Deferred/Continued to pproved ❑ Conditionally Approved ❑ Denied City Clerk s Signature Council Meeting Date 4/17/2006 Department ID Number FN 06 001 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO HONORABLE MAYOR AND CITY O NCIL MEMBERS SUBMITTED BY PENIiLOPE C LBRETH-GRAFT DPA CITY ADMINIS�RATOE�' l PREPARED BY DAN T VILLELLA CPA DIRECTOR OF FINANCE SUBJECT Approve Agreement between the City of Huntington Beach and Aon Consulting & Insurance Services for Actuarial Services Statement of Issue Funding Source Recommended Action Alternative Action(s) Analysis Environmental Status Attachment(s) Statement of Issue The City s Supplemental Retirement and Retiree Medical Plans require actuarial studies as part of the City s annual audit Funding Source This contract will be paid from appropriations made in Business Unit 70235202 Retirement Medical Supplement Fund in the 2005/06 budget Recommended Action Motion to Approve the agreement between the City of Huntington Beach and Aon Consulting & Insurance Services for Actuarial Services required for the City s annual audit and for the preparation of the Comprehensive Annual Financial Report Alternative Action(s) Do not approve the agreement between the City of Huntington Beach and Aon Consulting & Insurance Service and direct staff to solicit more bids Analysis The Government Accounting Standards Board (GASB) requires detailed disclosures for pension plans and other post -employment benefit plans The City of Huntington Beach maintains two pension plans (normal and supplemental) and one post - retirement plan (retiree medical plan ) The City s normal pension plan is administered by the California Public Employment Retirement System (CaIPERS) and all the required studies are processed by CaIPERS The City s other two plans (supplemental retirement and retiree medical) are self-administered 6?t 'JEfl 2006 APR -6 Ali O 11T f Gt Council/Agency Meeting Held Fiiir t a►�G1 Deferred/Continued to pproved ❑ Conditionally Approved ❑ Denied City Clerk s Signature Council Meeting Date 4/17/2006 Department ID Number FN 06 001 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO HONORABLE MAYOR AND CITY O NCIL MEMBERS SUBMITTED BY PENIiLOPE C LBRETH-GRAFT DPA CITY ADMINIS�RATOE�' l PREPARED BY DAN T VILLELLA CPA DIRECTOR OF FINANCE SUBJECT Approve Agreement between the City of Huntington Beach and Aon Consulting & Insurance Services for Actuarial Services Statement of Issue Funding Source Recommended Action Alternative Action(s) Analysis Environmental Status Attachment(s) Statement of Issue The City s Supplemental Retirement and Retiree Medical Plans require actuarial studies as part of the City s annual audit Funding Source This contract will be paid from appropriations made in Business Unit 70235202 Retirement Medical Supplement Fund in the 2005/06 budget Recommended Action Motion to Approve the agreement between the City of Huntington Beach and Aon Consulting & Insurance Services for Actuarial Services required for the City s annual audit and for the preparation of the Comprehensive Annual Financial Report Alternative Action(s) Do not approve the agreement between the City of Huntington Beach and Aon Consulting & Insurance Service and direct staff to solicit more bids Analysis The Government Accounting Standards Board (GASB) requires detailed disclosures for pension plans and other post -employment benefit plans The City of Huntington Beach maintains two pension plans (normal and supplemental) and one post - retirement plan (retiree medical plan ) The City s normal pension plan is administered by the California Public Employment Retirement System (CaIPERS) and all the required studies are processed by CaIPERS The City s other two plans (supplemental retirement and retiree medical) are self-administered 6?t 'JEfl 2006 APR -6 Ali O 11T f Gt Council/Agency Meeting Held Fiiir t a►�G1 Deferred/Continued to pproved ❑ Conditionally Approved ❑ Denied City Clerk s Signature Council Meeting Date 4/17/2006 Department ID Number FN 06 001 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO HONORABLE MAYOR AND CITY O NCIL MEMBERS SUBMITTED BY PENIiLOPE C LBRETH-GRAFT DPA CITY ADMINIS�RATOE�' l PREPARED BY DAN T VILLELLA CPA DIRECTOR OF FINANCE SUBJECT Approve Agreement between the City of Huntington Beach and Aon Consulting & Insurance Services for Actuarial Services Statement of Issue Funding Source Recommended Action Alternative Action(s) Analysis Environmental Status Attachment(s) Statement of Issue The City s Supplemental Retirement and Retiree Medical Plans require actuarial studies as part of the City s annual audit Funding Source This contract will be paid from appropriations made in Business Unit 70235202 Retirement Medical Supplement Fund in the 2005/06 budget Recommended Action Motion to Approve the agreement between the City of Huntington Beach and Aon Consulting & Insurance Services for Actuarial Services required for the City s annual audit and for the preparation of the Comprehensive Annual Financial Report Alternative Action(s) Do not approve the agreement between the City of Huntington Beach and Aon Consulting & Insurance Service and direct staff to solicit more bids Analysis The Government Accounting Standards Board (GASB) requires detailed disclosures for pension plans and other post -employment benefit plans The City of Huntington Beach maintains two pension plans (normal and supplemental) and one post - retirement plan (retiree medical plan ) The City s normal pension plan is administered by the California Public Employment Retirement System (CaIPERS) and all the required studies are processed by CaIPERS The City s other two plans (supplemental retirement and retiree medical) are self-administered 6?t 'JEfl REQUEST FOR ACTION MEETING DATE 4/3/2006 DEPARTMENT ID NUMBER FN 06-001 GASB 45 a new accounting pronouncement relating to Retiree Medical Plans will require additional professional services for the City s retiree medical plan The actuarial studies must be performed at least once every two years and updated on the off -years The purpose of the study is to supply the City with information regarding plan liabilities actuarially determine funding costs and financial statement disclosures in accordance with applicable GASB pronouncements The City conducted a Request for Proposal (RFP) and received four responses Three applicants complied with the fee proposal required Listed below are fee schedules from three proposals Firm Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Actuarial & Financial $45 000 $12 500 $48 500 $13 750 $0 $0 Consulting Segal $52 500 $52 500 $56 000 $56 000 $61 000 $61 000 Aon Consulting & Insurance Services $34 000 $11 000 $37 000 $12 500 $40 000 $14 000 Based on total weighted scores resulting from the review and evaluation of the proposals staff is recommending Aon Consulting & Insurance Services to perform the actuarial studies Aon Consulting & Insurance Services has provided actuarial studies to the City of Huntington Beach in prior years and has given satisfactory competent service Environmental Status Not Applicable Attachment(s) 1 I Agreement between the City of Huntington Beach and Aon Consulting & Insurance Services 2 1 Certificate of Insurance H \Actuarial Study\RCA Routing Sheet update 2005_Actuarial doc 2 3/9/2006 8 05 AM ATTACHMENT #1 PROFESSIONAL SERVICES CONTRACT BETWEEN THE CITY OF HUNTINGTON BEACH AND AON CONSULTING & INSURANCE SERVICES FOR ACTUARIAL SERVICES Table of Contents 1 Scope of Services 1 2 City Staff Assistance 2 3 Term, Time of Performance 2 4 Compensation 2 5 Extra Work 3 6 Method of Payment 3 7 Disposition of Plans Estimates and Other Documents 3 8 Hold Harmless 3 9 Professional Liability Insurance 4 10 Certificate of Insurance 5 11 Independent Contractor 6 12 Termination of Agreement 6 13 Assignment and Delegation 6 14 Copyrights/Patents 7 15 City Employees and Officials 7 16 Notices 7 17 Consent 8 18 Modification 8 19 Section Headings 8 20 Interpretation of this Agreement 8 21 Duplicate Original 9 22 Immigration 9 23 Legal Services Subcontracting Prohibited 9 24 Attorney's Fees 10 25 Survival 10 26 Governing Law 10 27 Entirety 10 PROFESSIONAL SERVICES CONTRACT BETWEEN THE CITY OF HUNTINGTON BEACH AND AON CONSULTING & INSURANCE SERVICES FOR ACTUARIAL SERVICES THIS AGREEMENT ("Agreement") is made and entered into this A0 �� day of �13F-Uh-P-`f 2006 by and between the City of Huntington Beach a municipal corporation of the State of California, hereinafter referred to as "CITY and AON Consulting & Insurance Services, a California corporation hereinafter referred to as "CONSULTANT" WHEREAS CITY desires to engage the services of a consultant to provide actuarial services, and Pursuant to documentation on file in the office of the City Clerk, the provisions of the Huntington Beach Municipal Code Chapter 3 03 relating to procurement of professional service contracts have been complied with, and CONSULTANT has been selected to perform these services, NOW, THEREFORE, it is agreed by CITY and CONSULTANT as follows 1 SCOPE OF SERVICES CONSULTANT shall provide all services as described in Exhibit "A," which is attached hereto and incorporated into this Agreement by this reference These services shall sometimes hereinafter be referred to as the "PROJECT " CONSULTANT hereby designates Bradley J Au, who shall represent it and be its sole contact and agent in all consultations with CITY during the performance of this Agreement aoree/06/AON Consulting I 2 CITY STAFF ASSISTANCE CITY shall assign a staff coordinator to work directly with CONSULTANT in the performance of this Agreement 3 TERM, TIME OF PERFORMANCE Time is of the essence of this Agreement The services of CONSULTANT are to commence as soon as practicable after the execution of this Agreement by CITY (the "Commencement Date") This Agreement shall expire five years from the commencement date, unless sooner terminated as provided herein All tasks specified in Exhibit "A" shall be completed no later than each January 31 for the preceding fiscal year These times may be extended with the written permission of CITY The time for performance of the tasks identified in Exhibit "A" are generally to be shown in Exhibit "A " This schedule may be amended to benefit the PROJECT if mutually agreed to in writing by CITY and CONSULTANT 4 COMPENSATION In consideration of the performance of the services described herein, CITY agrees to pay CONSULTANT on a time and materials basis at the rates specified in Exhibit "B," which is attached hereto and incorporated by reference into this Agreement, a fee including all costs and expenses, not to exceed the following amounts per fiscal year FY 2004-05 $34,000 FY 2005 06 $11,000 FY 2006 07 $37,000 FY 2007-08 $12,500 FY 2008-09 $40,000 FY 2009 10 $14 000 agree/06/AON Consulunb 2 5 EXTRA WORK In the event CITY requires additional services not included in Exhibit "A" or changes in the scope of services described to Exhibit "A," CONSULTANT will undertake such work only after receiving written authorization from CITY Additional compensation for such extra work shall be allowed only if the prior written approval of CITY is obtained 6 METHOD OF PAYMENT CONSULTANT shall be paid pursuant to the terms of Exhibit "B if 7 DISPOSITION OF PLANS, ESTIMATES AND OTHER DOCUMENTS CONSULTANT agrees that title to all materials prepared hereunder, including, without limitation, all original drawings, designs reports both field and office notices calculations computer code, language, data or programs maps, memoranda, letters and other documents shall belong to CITY and CONSULTANT shall turn these materials over to CITY upon expiration or termination of this Agreement or upon PROJECT completion, whichever shall occur first These materials may be used by CITY as it sees fit 8 HOLD HARMLESS CONSULTANT hereby agrees to protect defend indemnify and hold harmless CITY, its officers elected or appointed officials, employees agents and volunteers from and against any and all claims damages, losses, expenses, judgments, demands and defense costs (including without limitation, costs and fees of litigation of every nature or liability of any Lind or nature) arising out of or in connection with CONSULTANT's (or CONSULTANT's subcontractors if any) negligent performance of aoree/06/AON Consulting this Agreement or its failure to comply with any of its obligations contained in this Agreement by CONSULTANT its officers agents or employees except such loss or damage which was caused by the sole negligence or willful misconduct of CITY CONSULTANT will conduct all defense at its sole cost and expense and CITY shall approve selection of CONSULTANT's counsel This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable The policy limits do not act as limitation upon the amount of indemnification to be provided by CONSULTANT 9 PROFESSIONAL LIABILITY INSURANCE CONSULTANT shall obtain and furnish to CITY a professional liability insurance policy covering the work performed by it hereunder This policy shall provide coverage for CONSULTANT s professional liability in an amount not less than One Million Dollars ($1 000 000 00) per occurrence and in the aggregate The above - mentioned insurance shall not contain a self -insured retention "deductible" or any other similar form of limitation on the required coverage except with the express written consent of CITY A claims -made policy shall be acceptable if the policy further provides that A The policy retroactive date coincides with or precedes the initiation of the scope of work (including subsequent policies purchased as renewals or replacements) B CONSULTANT shall notify CITY of circumstances or incidents that might give rise to future claims CONSULTANT will make every effort to maintain similar insurance during the required extended period of coverage following PROJECT completion If insurance is abreel06JAON Consulund 4 terminated for any reason, CONSULTANT agrees to purchase an extended reporting provision of at least two (2) years to report claims arising from work performed in connection with this Agreement 10 CERTIFICATE OF INSURANCE Prior to commencing performance of the work hereunder CONSULTANT shall furnish to CITY a certificate of insurance subject to approval of the City Attorney evidencing the foregoing insurance coverage as required by this Agreement the certificate shall A provide the name and policy number of each carrier and policy, B state that the policy is currently in force and C promise that such policy shall not be suspended, voided or canceled by either party, reduced in coverage or in limits except after thirty (30) days prior written notice, however ten (10) days prior written notice in the event of cancellation for nonpayment of premium CONSULTANT shall maintain the foregoing insurance coverage in force until the work under this Agreement is fully completed and accepted by CITY The requirement for carrying the foregoing insurance coverage shall not derogate from CONSULTANT's defense hold harmless and indemnification obligations as set forth in this Agreement CITY or its representative shall at all times have the right to demand the original or a copy of the policy of insurance CONSULTANT shall pay in a prompt and timely manner the premiums on the insurance hereinabove requned a,ree/06/AON Consulting 5 11 INDEPENDENT CONTRACTOR CONSULTANT is, and shall be acting at all times in the performance of this Agreement as an independent contractor herein and not as an employee of CITY CONSULTANT shall secure at its own cost and expense, and be responsible for any and all payment of all taxes social security, state disability insurance compensation, unemployment compensation and other payroll deductions for CONSULTANT and its officers, agents and employees and all business licenses, if any in connection with the PROJECT and/or the services to be performed hereunder 12 TERMINATION OF AGREEMENT All work required hereunder shall be performed in a good and workmanlike manner CITY may terminate CONSULTANT's services hereunder at any time with or without cause and whether or not the PROJECT is fully complete Any termination of this Agreement by CITY shall be made in writing, notice of which shall be delivered to CONSULTANT as provided herein In the event of termination, all finished and unfinished documents exhibits report, and evidence shall at the option of CITY become its property and shall be promptly delivered to it by CONSULTANT 13 ASSIGNMENT AND DELEGATION This Agreement is a personal service contract and the work hereunder shall not be assigned delegated or subcontracted by CONSULTANT to any other person or entity without the prior express written consent of CITY If an assignment delegation or subcontract is approved all approved assignees delegates and subconsultants must satisfy the insurance requirements as set forth in Sections 9 and 10 heremabove aoree/06/AON Consulhn, 6 14 COPYRIGHTS/PATENTS CITY shall own all rights to any patent or copyright on any work, item or material produced as a result of this Agreement 15 CITY EMPLOYEES AND OFFICIALS CONSULTANT shall employ no CITY official nor any regular CITY employee in the work performed pursuant to this Agreement No officer or employee of CITY shall have any financial interest in this Agreement in violation of the applicable provisions of the Califoi nia Govei nment Code 16 NOTICES Any notices certificates or other communications hereunder shall be given either by personal delivery to CONSULTANT's agent (as designated in Section 1 hereinabove) or to CITY as the situation shall warrant or by enclosing the same in a sealed envelope postage prepaid and depositing the same in the United States Postal Service, to the addresses specified below CITY and CONSULTANT may designate different addresses to which subsequent notices, certificates or other communications will be sent by notifying the other party via personal delivery a reputable overnight carrier or U S certified mail -return receipt requested TO CITY City of Huntington Beach ATTN Finance Officer 2000 Main Street Huntington Beach, CA 92648 agree/06/AON Consulting 7 TO CONSULTANT Bradley J Au, Vice President AON Consulting & Insurance Services 707 Wilshire Blvd , Suite 5700 Los Angeles CA 90017 354 3 17 CONSENT When CITY's consent/approval is required under this Agreement its consent/approval for one transaction or event shall not be deemed to be a consent/approval to any subsequent occurrence of the same or any other transaction or event 18 MODIFICATION No waiver or modification of any language in this Agreement shall be valid unless in writing and duly executed by both parties 19 SECTION HEADINGS The titles captions section paragraph and subject headings, and descriptive phrases at the beginning of the various sections in this Agreement are merely descriptive and are included solely for convenience of reference only and are not representative of matters included or excluded from such provisions and do not interpret, define, limit or describe, or construe the intent of the parties or affect the construction or interpretation of any provision of this Agreement 20 INTERPRETATION OF THIS AGREEMENT The language of all parts of this Agreement shall in all cases be construed as a whole, according to its fair meaning and not strictly for or against any of the parties If any provision of this Agreement is held by an arbitrator or court of competent jurisdiction to be unenforceable, void, illegal or invalid such holding shall not invalidate or affect the remaining covenants and provisions of this Agreement No covenant or provision shall be deemed dependent upon any other unless so expressly provided here As used in this Agreement the masculine or neuter gender and singular or plural number shall be deemed to include the other whenever the context so indicates or requires agree/06/AON Consulting 8 Nothing contained herein shall be construed so as to require the commission of any act contrary to law, and wherever there is any conflict between any provision contained herein and any present or future statute, law, ordinance or regulation contrary to which the parties have no right to contract, then the latter shall prevail and the provision of this Agreement which is hereby affected shall be curtailed and limited only to the extent necessary to bring it within the requirements of the law 21 DUPLICATE ORIGINAL The original of this Agreement and one or more copies hereto have been prepared and signed in counterparts as duplicate originals each of which so executed shall irrespective of the date of its execution and delivery be deemed an original Each duplicate original shall be deemed an original instrument as against any party who has signed it 22 IMMIGRATION CONSULTANT shall be responsible for full compliance with the immigration and naturalization laws of the United States and shall, in particular comply with the provisions of the United States Code regarding employment verification 23 LEGAL SERVICES SUBCONTRACTING PROHIBITED CONSULTANT and CITY agree that CITY is not liable for payment of any subcontractor work involving legal services and that such legal services are expressly outside the scope of services contemplated hereunder CONSULTANT understands that pursuant to Huntington Beach City Charter Section 309 the City Attorney is the exclusive legal counsel for CITY, and CITY shall not be liable for payment of any legal services expenses incurred by CONSULTANT aeree/06/AON Consulting 9 24 ATTORNEY' S FEES In the event suit is brought by either party to construe, interpret and/or enforce the terms and/or provisions of this Agreement or to secure the performance hereof each party shall bear its own attorney s fees, such that the prevailing party shall not be entitled to recover its attorney's fees from the non -prevailing party 25 SURVIVAL Terms and conditions of this Agreement which by their sense and context survive the expiration or termination of this Agreement shall so survive 26 GOVERNING LAW This Agreement shall be governed and construed in accordance with the laws of the State of California 27 ENTIRETY The parties acknowledge and agree that they are entering into this Agreement freely and voluntarily following extensive arm's length negotiation and that each has had the opportunity to consult with legal counsel prior to executing this Agreement The parties also acknowledge and agree that no representations inducements promises, agreements or warranties oral or otherwise have been made by that party or anyone acting on that party's behalf which are not embodied in this Agreement and that that party has not executed this Agreement in reliance on any representation inducement, promise, agreement warranty, fact or circumstance not expressly set forth in this Agreement This Agreement, and the attached exhibits, contain the entire agreement between the parties respecting the subject matter of this Agreement and supersede all prior agree/06/AON Consultin, 10 -----RPR-03-2006--10 01 —Y— --RUN EBCG �- -- _ _ - 213 996 1752 P 02 understandings and agreements whether oral or in writing between the parties respecting the subject matter hereof 1N WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authonzed offices the day month and year first above wrl tten AON CONSULTING & INSURANCE SERVICES a California Corp tion — Z�� ", By t7(zR� y A pnnt name ITS (circle one) Chairman/11residen ice President By print name P,IC ITS (circle one) Sccrctary/Chiet F - s�trtar a W Agrrt1MAON Consulting CITY OF HUNTINGTON BEACH a municipal corporation of the State of California { Mayor r� City Clerk d E 3r art APPROVED AS TO FORM nalORce L Y Y� n!p City Attorney �s�o6 REVIEW AND APPROVED City Administrator INITIATED AND APPROVED Finance Officer 11 MRR-31-2026 09 36 APR-03-2006 10 41 TOTAL P 02 31 .:!) -%a A, z-Z TOTAL P 02 213 996 1762 99/ P 02 understandings and agreements whether oral or in writing between the parties respecting the subject matter hereof IN WITNESS WHEREOF the parties hereto have caused this Agreement to be executed by and through their authorized offices the day, month and year first above written AON CONSULTING & INSURANCE CITY OF HUNTINGTON BEACH, SERVICES, a California Corporation a municipal corporation of the State of California Mayor By print name ITS (cucle one) Chairman/PrestdentNice President I % City Clerk By C print n-ime 1� i and r Tarr APPROVED AS TO FORM ITS (circle one) Secretary/Chiet Ft anctal Office Asst - aw City Attorney REVIEW AND APPROVED COS City Administrator INITIATED AND APPROVED Finance Officer Agree/06/AON Consulting I I f1HP-71-220b 12 45 J12 391 01J3 P 02 02 understandings and agreements whether oral or in writing between the parties respecting the subject matter hereof IN WITNESS WHEREOF the parties hereto have caused this Agreement to be executed by and through their authorized offices the day month and year first above written AON CONSULTING & INSURANCE SERVICES a California Corpor tion iA. - By ��R R Di.r✓ y_ pnnt name ITS (circle one) Chairman/Presidcnt/Vi,a President print name 'Rt(� ITS (circle one) Secrctary/Chief E ecr Q W Agree/061AO`1 Comulung CITY OF HUNTINGTON BEACH a municipal corporation of the State of California Mayor City Clerk CTO—Lrry APPROVED AS TO FORM I office Asst II City Attorney REVIEW AND APPROVED City Administrator INITIATED AND APPROVED Finance Officer f1HP-31-290b 09 :�6 312 351 ©133 98 TOTAL P ©2 P 02 EXHIBIT "A" A STATEMENT OF WORK (Narrative of work to be performed) Consulting firm will perform actuarial valuations for the Retirement Supplement Plan and the Retiree Medical Subsidy Plan including the liabilities for the implicit subsidy These valuations will be in accordance with the current GASB requirements for Statements 12 and 27 and future reporting under Statement 45 B CONSULTANT'S DUTIES AND RESPONSIBILITIES 1 Determination of the annual required contribution (ARC) under GASB accounting rules and for budgeting purposes This will be shown both as an annual amount and as a percentage of payroll The ARC will be broken down by normal cost rate and unfunded service liability rates Additionally liabilities will be provided based on employee group (fire lifeguard and miscellaneous ) 2 Determination of the annual costs and benefit obligations and disclosure information necessary under applicable GASB statements 3 Projection of cash flow requirements for both plans 4 Recommendations regarding actuarial methods and assumptions 5 Full valuation reports will be provided in the first and third years of the contract with updates in the second and fourth years The update valuations will include contribution rates and required GASB disclosures based on certain limited additional data C CITY S DUTIES AND RESPONSIBILITIES City to provide necessary data and information to consultant D WORK PROGRAM/PROJECT SCHEDULE To Be Determined jmp/contracts group exA/10/10/05 EXHIBIT "B" Payment Schedule (Alternative # 1) 1 Charges for time during travel are normally not reimbursable and will only be paid if such time is actually used in performing services for City or as otherwise arranged with CITY 2 CONSULTANT shall be entitled to progress payments toward the fixed fee set forth herein in accordance with the following progress and payment schedules Fiscal Year Expenditures Retirement Supplement Original Subsidy Additional GASB Implicit Subsidy Total 2004/05 12 000 12,000 10 000 $34 000 2005/06 4 500 4 500 2,000 $11 000 2006/07 13,000 13,000 11000 $37,000 2007/08 5,000 5 000 2 500 $12 500 2008/09 14,000 14 000 12,000 $40,000 2009/10 5,500 5 500 3 000 $14,000 2 Delivery of work product A copy of every memorandum, letter, report calculation and other documentation prepared by CONSULTANT shall be submitted to CITY to demonstrate progress toward completion of tasks In the event CITY rejects or has comments on any such product, CITY shall identify specific requirements for satisfactory completion 3 CONSULTANT shall submit to CITY an invoice for each monthly progress payment due Such invoice shall A) Reference this Agreement B) Describe the services performed C) Show the total amount of the payment due, D) Include a certification by a principal member of CONSULTANT's firm that the work has been performed in accordance with the provisions of this Agreement and E) For all payments include an estimate of the percentage of work completed agree/06/AON Consulting 12 Upon submission of any such invoice if CITY is satisfied that CONSULTANT is making satisfactory progress toward completion of tasks in accordance with this Agreement CITY shall approve the invoice, in which event payment shall be made within thirty (30) days of receipt of the invoice by CITY Such approval shall not be unreasonably withheld If CITY does not approve an invoice CITY shall notify CONSULTANT in writing of the reasons for non approval and the schedule of performance set forth in Exhibit "A" may at the option of CITY be suspended until the parties agree that past performance by CONSULTANT is in or has been brought into compliance or until this Agreement has expired or is terminated as provided herein 4 Any billings for extra work or additional services authorized in advance and in writing by CITY shall be invoiced separately to CITY Such invoice shall contain all of the information required above, and in addition shall list the hours expended and hourly rate charged for such time Such invoices shall be approved by CITY if the work performed is in accordance with the extra work or additional services requested and if CITY is satisfied that the statement of hours worked and costs incurred is accurate Such approval shall not be unreasonably withheld Any dispute between the parties concerning payment of such an invoice shall be treated as separate and apart from the ongoing performance of the remainder of this Agreement agree/06/AON Consultin, 13 Company Address Cit stzip RFQ Attn R&G Associates 6728 Fair Oaks Blvd Carmichael CA Attn Kent H 95608 Gould Watson Wyatt & Co 10 University City University City CA Attn Deanne Plaza #3500 91608-1108 Whitehead/Tru dy Shar steep Mercer Human 3 Embarcadero San Francisco CA Attn Susan Resource Consulting Center #1500 94111 Snow — DBA William M Mercer Inc Segal Co 330 N Brand Blvd Glendale CA Attn Tom #500 91203 Morrison Actuarial & Financial 27505 Fern Pine Wy Murrieta CA 92562 Attn Mary Consulting Paull Cabriel, Roeder, Smith 9171 Towne Centre San Diego CA Attn Rick & Co Dr #440 92122 Roeder ABD Insurance 21250 Hawthorne Torrance CA Attn Gary Services Blvd #600 90603 Delaney AON Consulting 707 Wilshire Blvd Los Angeles CA Attn Brad Au Services #5700 1 90017 ATTACHMENT #2 �l A_ COF?D CERTIFICATE OF LIABILITY INSURANCE REVISED DATE(MM/DD/YY) _ &- _ g 03/16/2006 PRODUCER Serial # 7464 IS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION LY AND CONFERS NO RIGHTS UPON THE CERTIFICATE AON RISK SERVICES INC OF ILLINOIS LDER THIS CERTIFICATE DOES NOT AMEND EXTEND OR [:ALTER 1000 N MILWAUKEE AVENUE THE COVERAGE AFFORDED BY THE POLICIES BELOW GLENVIEW IL 60025 COMPANIES AFFORDING COVERAGE PHONE 1 866 283 7122 FAX 847 953 5390 COMPANY CONTINENTAL CASUALTY COMPANY INSURED %�L��/ COMPANY TRANSPORTATION INSURANCE COMPANY AON CORPORATION AND l• \ / COMPANY AMERICAN CASUALTY COMPANY OF READING PA AON CONSULTING A' TD ,`�`rx hG�T 200 E RANDOLPH ST CHICAGO IL 60601 C COMPANY I D COVERAGES THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED NOTWITHSTANDING ANY REQUIREMENT TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN THE INSURANCE AFFORDED B Y THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS EXCLUSIONS AND CONDITIONS OF SUCH POLICIES LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS CO LTR TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE DATE (MM/DDIYY) POLICY EXPIRATION DATE (MMIDD/YY) LIMITS A GENERAL LIABILITY GL268255672 06/01/2003 06/01/2006 GENERAL AGGREGATE S 2 000 000 X COMMERCIAL GENERAL LIABILITY PRODUCTS COMP/OPAGG IS 1 000000 —1 CLAIMS MADE ❑X OCCUR PERSONAL 8 ADV INJURY I $ 1 000 000 OWNERS 8 CONTRACTORS PROT EACH OCCURRENCE Is 1 000 000 FIRE DAMAGE (A y fi ) S 1 000 000 MED EXP (A y p ) $ 10 000 A AUTOMOBILE LIABILITY BUA2068255705 06/01/2003 06/01/2006 X ANY AUTO COMBINED SINGLE LIMIT $ 1 000 000 ALL OWNED AUTOS BODILY INJURY $ SCHEDULED AUTOS (Pe person) HHIRED AUTOS BODILY INJURY $ NON OWNED AUTOS (P a ad I) PROPERTY DAMAGE g GARAGE LIABILITY AUTO ONLY EA ACCIDENT I S ANY AUTO OTHER THAN AUTO ONLY EACH ACCIDENT I S AGGREGATE I$ D I EXCESS LIABILITY EACH OCCURRENCE S UMBRELLA FORM AGGREGATE $ FIOTHER THAN UMBRELLA FORM is B WORKER S COMPENSATION AND WC268255624(AZ CO NV OR WI WY) 06/01/2003 06/01 /2006 X RY LAM TS OER B EMPLOYERS LIABILITY WC26:255638(AOS) EL EACH ACCIDENT S 1 000 000 C THE PROPRIETOR INCL WC268255641(CA) EL DISEASE POLICY LIMIT S 1 000000 PARTNERS/ExECUTIVE OFFICERS ARE EXCL EL DISEASE EA EMPLOYEE S 1 000 000 OTHER �C,LyyAttpruN k19 ER Mo RAT�I DESCRIPTION OF OPERATIONS/LOCATION SIVEH IC LE SISP ECIAL ITEMS AON CONSULTING 707 WILSHIRE BOULEVARD SUITE 5700 LOS ANGELES CA 90017 CITY OF HUNTINGTON BEACH ITS AGENTS OFFICERS AND EMPLOYEES AND REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH ARE INCLUDED AS AN ADDITIONAL INSURED WITH RESPECT TO THE GENERAL LIABILITY POLICY CERTIFICATE HOLDER "` CANCELtAT10N SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE CITY OF HUNTINGTON BEACH EXPIRATION DATE THEREOF THE ISSUING COMPANY WILL E9b&A(d6`WC=XmAIL ATTN JANET LOCKHART 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT 2000 MAIN STREET XWx%H�Nl1R➢�4KRt[WxkoDTlGQcstDNc%k50p6JcxA10cFl�pllbx7oRxmf3cMA6[DcpiX HUNTINGTON BEACH CA 92648 OF ANY KIND UPON THE COMPANY ITS AGENTS OR REPRESENTATIVES AUTHORIZED REPRESENTATIVE 1 Aon Risk Services Inc of Ilinois ACORD 25S (1/95) © ACORD CORPORATION'11988 Al 1A r \DOCUMENT PRODUCTION\CHOICES\\ON GLALWCEX 05 06 FPS RCA ROUTING SHEET INITIATING DEPARTMENT Finance Department SUBJECT Approve Agreement between the City and Aon Consulting & Insurance Services COUNCIL MEETING DATE 04 /06 RCA ATTACHMENTS 17 STATUS Ordinance (w/exhibits & legislative draft if applicable) Attached ❑ Not Applicable Resolution (w/exhibits & legislative draft if applicable) Attached ❑ Not Applicable Ej Tract Map Location Map and/or other Exhibits Attached ❑ Not Applicable Contract/Agreement (w/exhibits if applicable) AttachedNot Applicable ® � ❑ (Signed in full by the City Attorney) Subleases Third Party Agreements etc Attached Applicable ElNot (Approved as to form by City Attorney) Certificates of Insurance ( Approved b the Clt Attorne y y y) Attached Not Applicable ® V ❑ Fiscal Impact Statement (Unbudget over $5 000) Attached Applicable ElNot Bonds (If applicable) Attached Applicable ElNot Staff Report (If applicable) Attached Applicable ❑Not Commission Board or Committee Report (If applicable) Attached Applicable ElNot Findings/Conditions for Approval and/or Denial Attached Applicable ❑Not fi EXPLANATION FOR MISSING ATTACHMENTS REVIEWED RETURNED FORWARDED Administrative Staff ( ) ( ) Assistant City Administrator (Initial) ( ) ( ) City Administrator (Initial) ( ) ( ) City Clerk ( ) ` -EXPLANATION FOR RETURN OF ITEM RCA Author CITY OF HUNTINGTON BEACH 2000 MAIN STREET OFFICE OF THE CITY CLERK JOAN L FLYNN CITY CLERK March 23 2006 Bradley J Au Vice President AON Consulting & Insurance Services 707 Wilshire Blvd Suite 5700 Los Angeles CA 90017-3543 Dear Mr Au CALIFORNIA 92648 Enclosed for your records is a copy of the Professional Services Contract Between the City of Huntington Beach and AON Consulting & Insurance Services for Actuarial Services Sincerely Joan L lynn City Clerk JF pe Enclosure Agreement G followup a-rmtltr (Telephone 714 536 5227)