HomeMy WebLinkAbout20051218.tiff RESOLUTION
RE: APPROVE ENGAGEMENT LETTER AND AUTHORIZE CHAIR TO SIGN - MERCER
HUMAN RESOURCE CONSULTING
WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to
Colorado statute and the Weld County Home Rule Charter, is vested with the authority of
administering the affairs of Weld County, Colorado, and
WHEREAS,the Board has been presented with an Engagement Letter for valuation of the
Weld County Post-retirement Medical Program between the County of Weld,State of Colorado,by
and through the Board of County Commissioners of Weld County, on behalf of the Department of
Personnel, and Mercer Human Resource Consulting, with further terms and conditions being as
stated in said contract, and
WHEREAS,after review,the Board deems it advisable to approve said contract,a copy of
which is attached hereto and incorporated herein by reference.
NOW,THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld
County, Colorado, that the Engagement Letter for valuation of the Weld County Post-retirement
Medical Program between the County of Weld, State of Colorado, by and through the Board of
County Commissioners of Weld County, on behalf of the Department of Personnel, and Mercer
Human Resource Consulting, be, and hereby is, approved.
BE IT FURTHER RESOLVED by the Board that the Chair be,and hereby is,authorized to
sign said letter.
The above and foregoing Resolution was,on motion duly made and seconded,adopted by
the following vote on the 18th day of April, A.D., 2005.
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
William H. ke, Chair
1861 el$County Clerk to the Board
ct y
% N r /AAA a eile, Pro e
Deputy Clerk to the Board `\
941aVd . g
RO DA ___Wil-
e D. Masd��n
unty Attonley //
GI nn Vaadv
Date of signature: /4/
2005-1218
PE0024
MERCER
Human Resource Consulting 1225 17th Street,Suite 2200
Denver,CO 80202-5854
303 376 5917 Fax 303 376 0087
lee.gold@mercer.com
www.mercerHR.com
April 1, 2005
Mr. Donald D. Warden
Director, Finance and Administration
Weld County
P.O. Box 758
Greeley, CO 80632
Via Email
Subject:
Engagement Letter - Weld County Postretirement Medical Liabilities
Dear Don:
This letter is in response to your letter dated March 7, 2005 requesting a quote for services
related to the valuation of Weld County's postretirement medical program. As stated in our
general engagement letter dated January 9, 2004, this letter will address our understanding of the
services and deliverables we will provide, as well as the associated costs.
Accounting Issues
The Governmental Accounting Standards Board (GASB) issued Statement No. 45 on August 2,
2004, which addresses how state and local governments should account for and report their costs
related to postemployment healthcare. Although these standards are not effective for periods
beginning before December 15, 2006, Weld County has requested that Mercer complete an
actuarial analysis of its retiree medical and life insurance benefits. This will help clarify the
accounting impacts and the associated liability when the accounting standard becomes effective.
Scope of Services in 2005
Mercer Human Resource Consulting, Inc. ("Mercer")will perform the following services (the
"Services") in 2005:
• Collect plan and participant information,to include any participants in the retiree medical
program that Mercer does not currently have.
• Set actuarial assumptions and perform claims analysis.
• Provide information to help Weld County and the auditor determine the discount rate for use in
these calculations.
• Determine liabilities and annual other postemployment benefit (OPEB) cost.
• Prepare a presentation documenting results, plan provisions,plan population, and actuarial
assumptions and methods.
• Meet with Weld County to discuss these results.
Marsh&McLennan Corn--
2005-1218
MERCER
Human Resource Consulting
Page 2
April 1, 2005
Mr. Donald D. Warden
Weld County
Scope of Services in 2007
Mercer will perform the following Services in 2007:
• All of the services associated with the work done in 2005.
• Prepare a formal valuation report documenting results, plan provisions, plan population, and
actuarial assumptions and methods.
Staffing
The Project Manager for this engagement will be Marlise Bruno. She will be assisted by two
actuarial analysts in development of liabilities and postretirement expense. In addition, the work
will be peer reviewed by another actuary experienced in public sector work with similar
experience and qualifications to Marlise. Additional staff will be added as necessary.
Information to be Provided
We will assume the information you supply(or which is supplied on your behalf) is accurate and
complete. Our responsibilities (and the associated project fees) do not include independent
verification of required information. Problems with information quality and/or delays in
providing such information may result in a delay in the project delivery date or an increase in
fees. Please advise us if you have concerns about information availability or quality.
Fees and Expenses
Our professional fees for the Services to be performed in 2005 will be $25,000 and an additional
$25,000 for the Services in 2007. If the scope of services or staffing requirements change,then the
professional fees will be adjusted in advance by mutual agreement.
Other Terms and Conditions
This work is subject to provisions of the general letter of engagement dated January 9,2004 and
executed by Claud Hanes.
MERCER
Human Resource Consulting
Page 3
April 1, 2005
Mr. Donald D. Warden
Weld County
Summary
We look forward to deepening our close professional relationship with your organization. We
have found that clarifying our terms of engagement in advance prevents any misunderstandings
in the future. Consequently, this engagement, once accepted by both of us by our signatures
below, will reflect our full and complete understanding and agreement of the terms of our
relationship. If you have any questions about these terms,please do not hesitate to call me. If not,
please indicate your agreement to the terms of this engagement by signing a copy of this letter
and returning it to us.
MERCER HUMAN RESOURCE CONSULTING,INC.
Name: Lee D. Gold, A.S.A.,E.A. Date: April 1, 2005
(Please Print)
ACCEPTED AND AGREED
WELD COUNTY COLORADO
by:
��
--i,
Name: William H. Jerke. Chair Date: ^ 1_R`7QBL
(Please Print) u
BOARD OF COUNTY COMMISSION S , `S ��) �r
ATTEST:
j �/
RCB:MSB:MLC:mlb WELD COUNTY CLERK T BO 61
91.raclmtr.11weld\gasb451ymysald.c. i
D PUTY CLER O THE BOARS p '
Ja-r
Hello