HomeMy WebLinkAboutResolution - 4511 - Contract - ARMT Inc - Self-Insurance Program - 06/09/1994Resolution No. 4511
June 9, 1994
Item 415
RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to
execute for and on behalf of the City of Lubbock a Contract and all related documents by and
between the City of Lubbock and Advanced Risk Management Techniques, Inc. of Lubbock to
furnish all work necessary for an actuarial study with respect to the self-insurance program for the
City of Lubbock, which contract is attached hereto, which shall be spread upon the minutes of the
Council and as spread upon the minutes of this Council shall constitute and be a part of this
Resolution as if fully copied herein in detail.
Passed by the City Council this 9 ti
AT'T'EST:
Befty M. J hnson, My Se retary
APPROVED AS TO CONTENT:
Scott Snider, Safety Coordinator
PROVED TO FORM:
J hn C. Ross, City Attorney
JI I: dp\axiocs\Advanced. Res
May 31, 1994
CONTRACT FOR ACTUARIAL SERVICES
This contract is made and entered into this 20th day of May, 1994 between Advanced Risk
Management Techniques, Inc. hereinafter referred to as the "Consultant," and the City of
Lubbock, Texas, hereinafter referred to as "the City."
The parties agree as follows:
1. The period of this agreement shall be May 20, 1994 through May 19, 1995.
This agreement shall be subject to cancellation by either party on 30 days' written
notice to the other, delivered to the last known address of the other party.
This contract is renewable at the City's option each year through 1997.
2. The Consultants' activities on behalf of the City, with respect to the City's self-
insurance program, shall be:
a. Estimate outstanding losses (including allocated loss adjustment expenses
(ALAE)) as of September 30, 1993 and September 30, 1994.
b. Project the financial position and recommend a fund balance as of
September 30, 1994.
C. Estimate the outstanding losses as of September 30, 1994 at 50%, 65% and
80% confidence levels (or other reasonable levels set by the City).
d. Project future losses (and ALAE) for the 1994/95 and 1995/96 fiscal years.
e. Recommend an overall funding level for 1994/95 and 1995/96 that reflects
projected future losses, anticipated investment income, the financial position
of the City's risk management fund and a reasonable provision for
contingencies.
f. Project claims disbursements (losses paid) during 1994/95 and 1995/96.
g. Discuss our observations of the City's loss data, loss experience and projected
financial position.
h. Provide a statement affirming the conclusions in the actuarial study are
consistent with GASB Statement No. 10.
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ADVANCED RISK VANAGEMENT TECHNIQUES, INC.
3.
4.
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i. Provide concise written report to the City of Lubbock, Texas within 30 days
of completion of work.
j. Provide proof of insurance coverage by certificate in accordance with RFP
#12876 for actuarial consulting services.
The City shall:
a. Work with the Consultants to provide information and direction necessary to
complete the project.
b. Pay the Consultants a sum not to exceed $4,950 per year upon submission of
acceptable invoices.
This agreement, or any of its rights, obligations, terms or conditions, may not be
assigned by either party without the written consent of the other party.
The Consultants shall render all services herein as an independent contractor and not
as an employee of the City.
This contract shall be governed by the provisions of the Uniform Commercial Code
applying to contracts in the State of Texas.
THE CITY OF LUBBOCK
Title: Mayor
Date: June 9, 1994
ATTEST:
Approved as to Content:
Approved as to Form:
� C
City At
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ADVANCED RISK MANAGEMENT
TECHNIQUES, INC.
(Federal ID #33-0141815)
Title: Principal
Date: S--31-54
ADVANCED RISK MANAGEMENT TECHNIQUES, INC.