HomeMy WebLinkAbout27360Cheiron
2014 SEP -2 AH II : I 2 County of Fresno
INTERNAL SERVICES DEPARTMENT
ROBERT BASH, DIRECTOR -CIO
facility Services • Fleet Services • Graphics
Information Technology • Purchasing
Security • Telecommunications
PROCUREMENT AGREEMENT
Agreement Number P-14-488-N
August 21,2014
1750 Tysons Boulevard, Suite 1100
Mclean, VA 22102
The County of Fresno (County) hereby contracts with Cheiron (Contractor) to update savings
information on projected retirement savings in accordance with the text of this agreement and
Attachment "A", by this reference made a part hereof.
TERM: This Agreement shall become effective August 21, 2014 and shall remain in effect
through August 20, 2015.
MINIMUM ORDERS: Unless stated otherwise there shall be no minimum order quantity. The
County reserves the right to increase or decrease orders or quantities.
CONTRACTOR'S SERVICES: Contractor shall perform the services as described in
Attachment "A" attached, at the rates set forth in Attachment "A".
··ORDERS: Orders will be placed on an as-needed basis by Fresno County Personnel
Department under this contract.
PRICES: Prices shall be firm for the contract period.
MAXIMUM: In no event shall services performed and/or fees paid under this Agreement be in
excess of twelve thousand dollars ($12, 000) total contract amount.
ADDITIONAL ITEMS: The County reserves the right to negotiate additional items to this
Agreement as deemed necessary. Such additions shall be made in writing and signed by both
parties.
DELIVERY: The F.O.B. Point shall be the destination within the County of Fresno. All orders
shall be delivered complete as specified. All orders placed before Agreement expiration shall
be honored under the terms and conditions of this Agreement.
4525 E. Hamilton Avenue 1 Fresno, California 93702-4599/ (559) 600-7110 1 Fax (559) 600-7126
PROCUREMENT AGREEMENT NUMBER: P-14-488-N
Cheiron
August 21, 2014
Page 2
DEFAULT: In case of default by Contractor, the County may procure the articles/services from
another source and may recover the loss occasioned thereby from any unpaid balance due the
Contractor or by any other legal means available to the County. The prices paid by County shall
be considered the prevailing market price at the time such purchase is made. Inspection of
deliveries or offers for delivery, which do not meet specifications, will be at the expense of
Contractor.
INVOICING: An itemized invoice in duplicate shall be mailed to requesting County department
in accordance with invoicing instructions included in each order referencing this Agreement.
The Agreement number must appear on all shipping documents and invoices. Invoice terms
shall be Net 45 Days.
INVOICE TERMS: Net forty five {45) days from the later of (1) Receipt of invoice or (2) Date of
project completion.
TERMINATION: The County reserves the right to immediately terminate this Agreement upon
written notice to the Contractor. In the event of such termination, the Contractor shall be paid
for satisfactory services or supplies provided to the date of termination.
LAWS AND REGULATIONS: The Contractor shall comply with all laws; rules and regulations
whether they be Federal, State or municipal, which may be applicable to Contractor's business,
equipment and personnel engaged in service covered by this Agreement.
AUDITS AND RETENTION: Terms and conditions set forth in the agreement associated with
the purchased goods are incorporated herein by reference. In addition, the Contractor shall
maintain in good and legible condition all books, documents, papers, data files and other
records related to its performance under this contract. Such records shall be complete and
available to Fresno County, the State of California, the federal government or their duly
authorized representatives for the purpose of audit, examination, or copying during the term of
the contract and for a period of at least three years following the County's final payment under
the contract or until conclusion of any pending matter (e.g., litigation or audit), whichever is later.
Such records must be retained in the manner described above until all pending matters are
closed.
·LIABILITY: The Contractor agrees to:
Pay all claims for damage to property in any manner arising from Contractor's operations under
this Agreement.
Indemnify, save and hold harmless, and at County's request defend the County, its officers,
agents and employees from any and all claims for damage or other liability, including costs,
expenses, causes of action, eleifll'ls or judgments resulting out of or in any way connected with
GeAtt"eeter's t'SffefflleAee er feilt~re te ~erferl¥1' by Contractor, its agents, officers or employees ~
under this Agreement. 1\ • .L... • l _ L \ \~
Cl\'\'1 \?reetdl\ of "-1X o\?\ I ~VI. -hwtS UJ\.dtv kill{ (M '\V2tC\ \'V<:, \
INSURANCE: ~ \
Without limiting the COUNTY's right to obtain indemnification from CONTRACTOR or any third
parties, CONTRACTOR, at its sole expense, shall maintain in full force and effect, the following
insurance policies or a program of self-insurance, including but not limited to, an insurance
pooling arrangement or Joint Powers Agreement (JPA) throughout the term of the Agreement:
G:\PUBLIC\~CTS&EXTRACTS\N\P-14-488-N AGREEMENT.DOC
PROCUREMENT AGREEMENT NUMBER: P-14-488-N
Cheiron
August 21, 2014
A. Commercial General Liability
Page3
Commercial General Liability Insurance with limits of not less than One Million Dollars
($1 ,000,000.00} per occurrence and an annual aggregate of Two Million Dollars
($2,000,000.00). This policy shall be issued on a per occurrence basis. County may require
specific coverage including completed operations, product liability, contractual liability,
Explosion-Collapse-Underground, fire legal liability or any other liability insurance deemed
necessary because of the nature of the contract.
B. Automobile Liability
Comprehensive Automobile Liability Insurance with limits for bodily injury of not less than
Two Hundred Fifty Thousand Dollars ($250,000.00) per person, Five Hundred Thousand
Dollars ($500,000.00) per accident and for property damages of not less than Fifty
Thousand Dollars ($50,000.00), or such coverage with a combined single limit of Five
Hundred Thousand Dollars ($500,000.00). Coverage should include owned and non-owned
vehicles used in connection with this Agreement.
C. Professional Liability
If Contractor employs licensed professional staff, (e.g., Ph.D., R.N., L.C.S.W., M.F.C.C.) in
providing services, Professional Liability Insurance with limits of not less than One Million
Dollars ($1 ,000,000.00) per occurrence, Three Million Dollars ($3,000,000.00} annual
aggregate.
D. Worker's Compensation
A policy of Worker's Compensation insurance as may be required by the California Labor
Code.
Contractor shall obtain endorsements to the Commercial General Liability insurance naming the
County of Fresno, its officers, agents, and employees, individually and collectively, as additional
insured, but only insofar as the operations under this Agreement are concerned. Such
coverage for additional insured shall apply as primary insurance and any other insurance, or
self~insurance, maintained by.County, .its officers, agents and employees shall be excess only
and not contributing with insurance provided under Contractor's policies herein. This insurance
shall not be cancelled or changed without a minimum of thirty {30) days advance written notice
given to County.
Within Thirty {30) days from the date Contractor signs and executes this Agreement, Contractor
shall provide certificates of insurance and endorsement as stated above for all of the foregoing
policies, as required herein, to the County of Fresno, Fresno County Personnel Department,
2220 Tulare Street, 14th Floor, Fresno, CA, 93721, stating that such insurance coverage have
been obtained and are in full force; that the County of Fresno, its officers, agents and
employees will not be responsible for any premiums on the policies; that such Commercial
General Liability insurance names the County of Fresno, its officers, agents and employees,
individually and collectively, as additional insured, but only insofar as the operations under this
Agreement are concerned; that such coverage for additional insured shall apply as primary
insurance and any other insurance, or self-insurance, maintained by County, its officers, agents
and employees, shall be excess only and not contributing with insurance provided under
G:\PUBLIC\CXNrRACTS & EXTRACTS\N\P-14-488-N AGREEMENT .DOC
PROCUREMENT AGREEMENT NUMBER: P-14-488-N
Cheiron
August 21, 2014
Page4
Contractor's policies herein; and that this insurance shall not be cancelled or changed without a
minimum of thirty (30) days advance, written notice given to County.
In the event Contractor fails to keep in effect at all times insurance coverage as herein provided,
the County may, in addition to other remedies it may have, suspend or terminate this Agreement
upon the occurrence of such event.
All policies shall be with admitted insurers licensed to do business in the State of California.
Insurance purchased shall be purchased from companies possessing a current A.M. Best, Inc.
rating of A FSC VII or better.
COMING ON COUNTY PROPERTY TO DO WORK
Contractor agrees to provide maintain and furnish proof of Comprehensive General Liability
Insurance with limits of not less than $500,000 per occurrence.
INDEPENDENT CONTRACTOR: In performance of the work, duties and obligations assumed
by Contractor under this Agreement, it is mutually understood and agreed that Contractor,
including any and all of Contractor's officers, agents, and employees will at all times be acting
and performing as an independent contractor, and shall act in an independent capacity and not
as an officer, agent, servant, employee, joint venturer, partner, or associate of the County.
Furthermore, County shall have no right to control or supervise or direct the manner or method
by which Contractor shall perform its work and function. However, County shall retain the right
to administer this Agreement so as to verify that Contractor is performing its obligations in
accordance with the terms and conditions thereof. Contractor and County shall comply with all
applicable provisions of law and the rules and regulations, if any, of governmental authorities
having jurisdiction over matters the subject thereof.
Because of its status as an independent contractor, Contractor shall have absolutely no right to
employment rights and benefits available to County employees. Contractor shall be solely liable
and responsible for providing to, or on behalf of, its employees all legally-required employee
benefits. In addition, Contractor shall be solely responsible and save County harmless from all
matters relating to payment of Contractor's employees, including compliance with Social
Security, withholding, and all other regulations governing such matters. It is acknowledged that
during the term of this Agreement, Contractor may be providing services to others unrelated to
the County or to this Agreement.
NON-ASSIGNMENT: Neither party shall assign, transfer or sub-contract this Agreement nor
their rights or duties under this Agreement without the written consent of the other party.
AMENDMENTS: This Agreement constitutes the entire Agreement between the Contractor and
the County with respect to the subject matter hereof and supersedes all previous negotiations,
proposals, commitments, writings, advertisements, publications, Request for Proposals, Bids
and understandings of any nature whatsoever unless expressly included in this Agreement.
This Agreement supersedes any and all terms set forth in Contractor's invoice. This Agreement
may be amended only by written addendum signed by both parties.
INCONSISTENCIES: In the event of any inconsistency in interpreting the documents which
constitute this Agreement, the inconsistency shall be resolved by giving precedence in the
following order of priority: (1) the text of this Agreement (excluding Attachment "A") and (2)
Attachment "A".
G: \PUBLIC\ CONTRACTS & OORACTS\N\P-14-488-N AGREEMENT. OOC
PROCUREMENT AGREEMENT NUMBER: P-14-488-N
Cheiron
August 21, 2014
Page 5
GOVERNING LAWS: This Agreement shall be construed, interpreted and enforced under the
laws of the State of California. Venue for any action shall only be in County of Fresno.
Please acknowledge your acceptance by returning all pages of the signed original of this
Agreement to my office, retaining a copy for your files.
Please refer any inquiries in this matter to Gary Cornuelle, Purchasing Manager, at (559) 600-
7114 or gcornuelle@co.fresno.ca.us.
FOR THE COUNTY OF FRESNO
~ e_c:;;;,~
Gary ~muelle ~
Purchas1 g Manager
4525 East Hamilton Avenue
Fresno, CA 93702-4599
Date:
GEC:jeb
G:\PUBLIC\~ & EXTRACTS\N\P-14-488-N AGREEMENT.DOC
PROCUREMENTAGREEMENTNUMBER:~1448~N
Cheiron
August 21J 2014
CONTRACTOR TO COMPLETE:
Company: C. ft£ I R. 0 tJ :C IJC,...
Type of Entity:
0 Individual
0 Sole Proprietorship
f0"Corporation
0 Limited Liability Company
0 limited Liability Partnership
0 General Partnership
Signedby: ~~
UJNs1: fY/ /k.A le..o W., o red-e. .52
Signed by:
Print Name and Title Date
PageS
1'1~0 fitsoi"'S. Blvd Ste. /loo \)f}-22-/0Z......
Address City State Zip
Cfl111-U R-D §c),e, r-oll). us
TELEPHONE NUMBER FAX NUMBER E-MAIL ADDRESS
ACCOUNTING USE ONLY
ORG No.: 10100500
Account No.: 7295
Requisition No.: 1011500009
(04/14)
G: \PUBLIC\C<M"RAcrs & EXTRACTS\N\P-14-488-N AGREEMENT' .OOC
.ft"
This is 1a draft subject to edits after discussion with Cheiron on any clarification and price
quote which is still pending.
Scope of Work for Agreement with Cheiron
Cheiron will update projections on cost savings with Fresno County's implementation of Retirement Tiers IV and
V. Requested report is not a GC §7507 report, but rather a report that will be used internally for Fresno County
discussions on labor relations and budgetary issues; the report may be used in public meetings. Specifically, County
would like the Table below, that was included in the January 2012 Cheiron report, updated and expanded as detailed
below. Since the 2012 report, the County implemented Tier IV in June 2012 and Tier V (CaiPEPRA) in January 2013.
The cost savings report should include:
• Updated long term projections of savings with Retirement Tiers IV and V (with annual FY projections}
• Short term projections over next 5-10 years (with annual FY projections)
• Include in the projection table/chart not only the savings, but the projected/actual cost of retirement (not just
the savings) which will show where we were before Tier IV and V were implemented (i.e., in FY 2011-12 and
2012-13) and projected savings with Tiers IV and V.
r··--·~----;-····~-~-~.~--.---~-,~·labl; 1-4 . --~----·--·1
. ' j Projected County Normal Cost Savings I
p::::::~::::::=·::::::::::-::::::;:·;·;-:.--:;::::.::-::::.~..::.:~~=::.: -·~··---· ~ . .... -· -... --·=::::=::::t
1\m Tier Brnl'lil Formula 2013-14 2018·19 2023·24 2028-29 2033-34 1038-39 l t.~=~·~=-=--""·"''-=<>:~~'"'""-''·~·'·7·~'"""""·=.:.o=--==,===--=--:t::o::='"·"---··--·--·····-=-{ ~cr~l \lemi~!:.J:~.-----------------------·----. _ .. _____ _j
! P:l1iWedi\~wTi;:rPa\roil S 24J S 158.6 S 31<1.9 S 486.1 S 680.3 S 903.!f !--·---"'--------·-····'·····-···-·"-·-·----····--·--· ---------·--·-----1 rs~;;~~~~:~~~~?},U~l:i_iL _________ ~_ ... Jn s __ l-+Ll._}.~:_--~--44~--~-~i_S_ 1~
r·[)~~;f~;td 1\~~T;:.~."fi,;.;;~i---.. ----· ...... s-----·;::-0J-:;---, -4S ~-s-s~ :; -" p.:; 1 s !71 1 '-
!itJ~;j(~~;,-.·;;~sil;-·~:.~: __ --------5---():~ -s·-----~:; ~--·;):~-·-s---7~:0 ~ ~~~-s-· ~;~
~--------··"······• ..... , .......... ·····--····--·----·------~---·----·-~·-··-----·---~
~!!!£~~~-li.LJ22.~.LLLJ2~
Any other work under this agreement would be directly related to the report and ancillary to the updated projected
County Normal Cost Savings. For example, this may include request to update other charts that were in the January
2012 report (e.g., pages 1, 7, 11, 13, 14, 16, 18) or other related discussions.
Time line
Cheiron will complete requested updated chart and deliver to the County by September 30, 2014.
Project cost not to exceed-=----------
Hourly rates (Listed below by Jobtitle)
-£+IE ~.RON Classic Values. Innovative Advice
August21, 2014
Ms. Beth Bandy
Deputy Director
Personnel Services
County of Fresno
2220 Tulare Street, Suite 1600
Fresno, CA 93721
Re: Additional Services
Dear Beth:
~j·)... of3
As requested, we are providing a description of our understanding and estimated fees for
additional services to the County of Fresno. Cheiron is prepared to work with the Board of
Supervisors and their designees in updating projections on cost savings with Tier IV and Tier
V. This report will be used internally for our discussions on labor relations and budgetary
discussions. This update will now not only include Tier IV implemented in June 2012, and
also Tier V (CalPEPRA) implemented January 2013. We include long term and detailed
short term projections for the next 5-IO years on a fiscal year basis.
Based on our discussions we don't anticipate a meeting to present these results but there is
the potential for one meeting to discuss our results. This additional analysis will be based on
the data previously used and updated based on the FCERA actuary's latest actuarial valuation
reports and any additional information needed from the actuary to reasonably interpret the
assumptions they have used in measuring the potential impact of the new tiers.
We understand that this project is a high priority for the County and are prepared to begin
work immediately.
Our anticipated fee for these services is $8,000 to $12,000 based on time charges as they
accrue.
The following table identifies the Cheiron team and their hourly rates considered in our fee
estimate.
Category I Consultant
Co-Lead Actuary (Kent)
Co-Lead Actuary (Schmidt)
Backup/Special Resource (Halhnark)
Assisting Actuary (Harper)
Other Actuarial Assistance
Hourly Rate
$458
$372
$400
$275
$140 ~ $260
1750Tysons Boulevard, Suite 1100, Mclean, VA 22102 Tel: 703.893.1456 Fax: 703.893.2006 www.cheiron.us
Ms. Beth Bandy
August 21,2014
Page2
If you have any questions, please let us know.
Sincerely,
Cheiron
Graham Schmidt, ASA
Consulting Actuary
cc: DeAnn VonBerg
/~C./~
Kenneth A. Kent, FSA, FCA, EA, MAAA
Principal Consulting Actuary
-(-HEtRON