HomeMy WebLinkAboutR-2005-025 Pension Plan Review RESOLUTION NO. 2005-025
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DANIA
BEACH, FLORIDA, APPOINTING THE LAW FIRM OF LEWIS, LONGMAN
& WALKER, P.A., AS SPECIAL CITY ATTORNEYS TO PROVIDE LEGAL
SERVICES TO THE CITY IN CONNECTION WITH A COMPREHENSIVE
REVIEW OF THE CITY PENSION PLANS; PROVIDING FOR CONFLICTS;
FURTHER, PROVIDING FOR AN EFFECTIVE DATE.
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DANIA
BEACH,FLORIDA:
Section 1. That the law firm of Lewis, Longman & Walker, P.A. is appointed by the
Dania Beach City Commission to serve as Special City Attorneys to the City in connection with
a comprehensive review of the City pension plans and for such other related matters as may be
authorized by the City Commission. The services shall include actuarial services rendered by a
consultant to the firm. The services shall also consist of identification and evaluation of pension
options and their implementation. All services rendered shall not exceed the sum of$75,000.00
inclusive of expenses.
Section 2. That a copy of the letter sent by James W. Linn, on behalf of the law firm, to
the City Manager is attached. All services rendered and fees, expenses and costs incurred shall
be monitored and approved by the City Manager and the City Attorney.
Section 3. That the Director of Finance is authorized to transfer the actual expenses of
an amount not to exceed $75,000.00 from the Contingency account to the Legal Department
Professional Services account.
Section 4. That all resolutions or parts of resolutions in conflict with this Resolution are
repealed to the extent of such conflict.
Section 5. That this Resolution shall be in force and take effect upon adoption.
PASSED AND ADOPTED on February 9, 2005.
�WA
C.K. VCffLYtA
MAYOR—COMMISSIONER
AT-TEST: ROLL CALL:
_ _ 1 COMMISSIONER ANTON- YES
COMMISSIONER CHUNN -NO
LOUISE STILSON COMMISSIONER FLURY - YES
CITY CLERK VICE-MAYOR MIKES - YES
. MAYOR MCELYEA -NO
APPROVED AS TO O AND CORRECTNESS:
BY:
THOMA§ J. �KNSBRO
CITY ATTORNEY
2 RESOLUTION#2005-025
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ATTORNEYS AT LAW
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FLORLDA'S Ft"Vi _EH� REPLY To: T.ALLAHASSEE
www.11w-law.com
January 31, 2005
Ivan Pato, City Manager
City of Dania Beach
100 W.Dania Beach Blvd.
Dania Beach, FL 33004
Re: Review of City Pension Plans
Dear Mr. Pato:
It was a pleasure to meet you and members of your staff, and to discuss the critical
pension issues facing the City. As reflected in the enclosed materials, a significant portion of my
practice is devoted to governmental retirement plans and issues. We would be pleased to assist
the City in evaluating its current pension plans, identifying options for plan revision and/or
restructuring, and developing and implementing an action plan for accomplishing the City's
short and long-range pension objectives. To accomplish this, we propose the following project
plan:
1. Project Plan.
Phase I: We will conduct a comprehensive review of the City's two pension
plans, and identify options for controlling and reducing the City's pension costs. The work will
be performed by my firm and by Michael J. Tierney, an independent actuary and president of
Actuarial Concepts. This phase would include a review of all relevant plan documents and
actuarial reports, necessary legal research, and identification of strategic options. We will then
work closely with you and your staff to refine the options and provide a cost projection for each
option that is selected for further study. We would plan to attend a meeting at the City during
this phase of the project. We will identify the options within 21 days following approval of this
phase of the project; and actuarial cost projections will be provided within 35 days following the
selection of an option for further study, assuming the necessary demographic and financial data
on all City pension plans has been provided to us. We would then assist the City in evaluating
the various options.
Bradenton Jacksonville Tallahassee West Palm Beach
1001 3rd Avenue West 9428 Baymeadows Road Post Office Box 10788 (32302) 1700 Palm Beach Lakes Blvd.
Suite 670 Suite 625 125 South Gadsden Street,Suite 300 Suite 1000
Bradenton, FL 34205 Jacksonville. FL 32256 Tallahassee.FL 32301 West Palm Beach,FL 33401
(941) 708-4040 (904)737-2020 (850) »2-,7 2 (-61)640-6820
Fax:(941)708-4024 Fax:(904)737-3221 Fax: (850)224-9242
Fax:(561)640-8202
Ivan Pato
February 1, 2005
. ` Page 2
Phase II (Optional): Working in close coordination with City staff and labor
counsel, we would assist the City in implementing the option or options decided upon in Phase I.
Because changes in employee pension benefits are a mandatory subject of collective bargaining
under Florida law, this "implementation phase" would necessarily take place in conjunction with
future negotiations between the City and its employees. Included in this phase would be the
drafting of specific language for collective bargaining and plan amendments, or the preparation
of new pension plan documents. We would also plan to attend a meeting at the City during this
phase of the project.
2. Professional Fees and Expenses. I will be the primary attorney working on this
project, and my standard hourly rate is $225. I may assign work to other attorneys or paralegals
within my firm, depending upon who can best do the work in the most efficient manner. The
hourly rates for other attorneys range from $145 to $185. The hourly rates for paralegals/law
clerks range from $95 to $115. These rates will be in effect through December 2005 and will be
modified annually thereafter in January of each subsequent year. We will provide you with our
new rates along with the firm's statement of services rendered in January of each year. In
addition to attorney's fees, our bills will include professional fees incurred by Actuarial Concepts
in costing out and evaluating the pension options that the City selects for additional study. It
should be noted that the costing out of pension options can be performed more efficiently and
. economically if the necessary demographic and financial data on all City pension plans is
available at the time such studies commence. If the necessary demographic and financial data on
all City pension plans is not available at the time the cost studies commence, it may be necessary
to adjust the Phase I amount reflected below. The firm also charges for costs and expenses
incurred on your behalf for this project. Attachment 1 sets forth the most commonly incurred
costs and expenses.
Phase I—Identify and Evaluate Options: Not to exceed $47,500
Phase II -- Implementation (Optional): Not to exceed$25,000
The above amounts do not include travel expenses in connection with meetings at the City in
connection with the project.
3. Billing and Payment. We will bill you on a monthly basis for professional
services rendered and expenses incurred in connection with this matter, less any retainer amounts
applied against these services and expenses. You agree to pay the amount of each statement in
full within twenty (20) days of the billing date. Should you question or dispute any items or any
statement, you agree to notify us in writing of any such question or dispute within fifteen (15)
•t
Ivan Pato
February 1, 2005
F Page 3
days of the billing date, and we will assume you do not have any dispute if we do not hear from
you in that time. Any amounts remaining unpaid for more than thirty (30) days from the date of
billing shall bear interest at the rate of twelve (12%) percent per annum, compounded daily, until
paid.
Thank you for giving us an opportunity to submit this proposal. If you agree with the
foregoing terms and conditions, please sign in the space provided at the bottom of the letter,
return the original to me and retain a copy for your records. We look forward to working with
the City of Dania Beach.
Sincerely,
�JamW. Linn
JWL/es
Enclosure
ACCEPTED BY.
City of Dama Beh: '
Jiv7 Pato
)-itle: C-0ty Mana ex
Date: I.
,2if 1
s
• ATTACHMENT 1
Cost/Expense Typical Charges
Computer Research Actual usage +proportionate share of base subscription.
Court Reporters Direct invoice from vendor to client or paid from retainer.
Delivery Charges i Actual amount invoiced to firm.
Mode of delivery based on need and economy.
Messenger Service Actual amount invoiced to the firm.
Overnight Express Actual amount invoiced to the firm.
Telefacsimile Outgoing: Actual telephone charge+ $1.25/page.
Incoming: No charge
Photocopying Inside copies: $0.20/page
Outside services: Actual amount invoiced to firm.
Secretarial Overtime No charge
Telephone Charges Actual long distance and cellular charges +proportionate share
of base subscriptions.
Temporary Help Actual amount invoiced to the firm.
Travel-Local/Surface Reasonable mileage or actual rental charges.
Travel-Out-of-Town Intrastate: Actual common carrier charges for coach.
• Interstate: Actual common carrier charges for business
class.
.............................................................................................................................................................I.......................
Meals/Accommodations: Lowest corporate seasonal rate
available, reasonable business related meal expenses.
Word Processing No charge
Other Expenses Actual cost invoiced to the firm. In selected cases, these items
may be directly invoiced from vendor to client.
Bradenton Jacksonville Tallahassee West Palm ACeach
1001 3rd Avenue west 9428 Baymeadows Road Post Office Box 10788(32302) 1700 Palm Beach Lakes Blvd.
Suite 670 Suite 625 125 South Gadsden Street,Suite 300 Suite 1000
Bradenton,FL 34205 Jacksonville, FL 32256 Tallahassee, FL 32301 hest Palm Beacii,FL 33401
(941)708-4040 (904)737-2020 (850)222-5702 (561)640-6820
Fax:(941) 708-4024 Fax: (904)737-3221 Fax: (850)224-9242 Fax: (561)640-8202
CITY OF DANIA BEACH
DEPARTMENT OF FINANCE
MEMORANDUM
TO: Ivan Pato, City Manager Memo- DF-04-43
FROM: Patricia Varney, Director of Finance
DATE: February 1, 2005
SUBJECT: Pension Consultant
As requested, I have tried to obtain some more quotes for the pension consultant. I talked to two
pension attorneys, Steven Cypen and Lee Dehner who are quite reputable in the municipal pension
plan environment. However, both attorneys indicated that they are unable to provide me with an
estimate because they are already engaged by pension boards of different cities and did not feel
comfortable in representing the City. However, both attorneys have referred Mr. Linn for me to
contact as he has performed the most work in representing cities. I was also informed that it is not a
common practice for pension attorney to act as union attorney simultaneously.
I also obtained references from the following cities regarding Mr. Linn and the actuary Mr. Tierney
services:
1) City of Boca Raton—Linda Davidson,OMB Director
Ms. Davidson indicated that Mr. Linn is very familiar with the Statutes, and has provided options
to the City's Plan. His latest service was to address the senior staff 401A plan. Mr. Linn is very
involved with the legislation and is very responsive to the City's needs.
2) City of Hollywood—Gail Reinfeld, HR Director
Ms. Reinfeld stated that one of Mr. Linn's responsibilities were to review the General Employee
Pension Plan, provided options, and rewrote the plan ordinance and summary plan document.
Mr. Linn is very knowledgeable and can advise the board with issues immediately. Does not need
to wait for research to be done. He also is very familiar with labor issues and knows what
changes need to be bargain for and what does not. The actuary, Mr. Tierney, is very creative. She
highly recommends engaging them for the service.
+S
3) City of Sunrise —Kim Register, City Attorney
Ms. Register indicated that Mr. Linn is engaged as an outside special counsel to revise the City's
sion law changes. Mr. Linn is very responsive'and
plan and to keep the City abreast of any pen
based on the complexity of their city's issues, his response time is very good. Ms. Register also
stated that Mr. Linn provides good analysis of their City's pension plans and he is very
knowledgeable with the current law.
•