ORDINANCE No. 182924

* Authorize five-year agreement with Richard E. Sherman & Associates, Inc. for actuarial services not to exceed $118,130 (Ordinance)

The City of Portland ordains:

Section 1. The Council finds:

1.  The City Charter requires the fund responsible for the City’s liability coverage (Insurance & Claims Fund) to be maintained on an actuarially sound basis.

2.  State statute ORS 646.407 requires self-insured entities to maintain annual budget and reserves for workers’ compensation on an actuarially sound basis.

3.  A regular professional, independent review of the City’s funding for self-insured reserves and annual claims payments is important to ensure actuarial soundness of the funds responsible for the City’s liability and workers’ compensation coverage.

4.  Funds are available for these services in both the Insurance & Claims and Workers’ Compensation funds.

NOW, THEREFORE, The Council directs:

a.  The Mayor and Auditor are hereby authorized to execute an agreement with R. E. Sherman & Associates, Inc. for actuarial consulting services not to exceed $118,130.

b.  OMF/Business Operations, Risk Management Division is directed to carry out this Agreement on behalf of the City.

Section 2. The Council declares that an emergency exists to prevent delay in beginning the actuarial studies for the Risk Management funds in the first week of July 2009. The results of the studies must be included in the FY 2008-09 CAFR and are required to be competed by mid-September to meet the City’s outside auditor’s deadline. Therefore, this ordinance shall be in full force and in effect after its passage by Council.

BACKING SHEET INFORMATION

AGENDA NO. 847-2009

ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. 182924