CITY MANAGER AUTHORITY PROCUREMENT AWARDS
ACTION REQUESTED:
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Approve the award of Option Year Two to Contract 16-259, Actuarial Services, to Foster & Foster Consulting Actuaries, Inc. for an amount not to exceed $37,000
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DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Director
BACKGROUND:
The City is required by state statute to have an independent actuarial valuation completed for its Police and Fire Pension Funds on an annual basis. The information is used in preparation of the City's annual tax levy and Comprehensive Annual Financial report (CAFR).
Additionally, the City is required to have an evaluation performed for other post-employment benefits (OPEB) for final preparation of the CAFR GASB statement disclosure information and required supplementary information. OPEB services are completed every three years and updated annually.
November 2016, the City Manager awarded Contract 16-259, Actuarial Services, to Foster & Foster. The term of the contract was three years beginning January 1, 2017 through December 31, 2019, with two one-year options to extend. The City Manager awarded the first-year option on September 5, 2019.
DISCUSSION:
During the first option year of the contract, Foster and Foster completed reports and provided the City with a pension modeler to better evaluate funding levels on the City's public safety pension funds. Staff recommends approving the second one-year extension.
Foster and Foster agreed to maintain the rates and terms provided under the current agreement. The presented award total is based on average annual expenses with Foster and Foster during the current agreement.
The term of the final option year of the agreement is January 1, 2021 to December 31, 2021.
FISCAL IMPACT:
CIP: N/A
Actuarial Services are expensed to the financial services account listed below. A total of $36,000 is budgeted for actuarial services in 2021. Staff will monitor the account throughout the year to track any impact from t...
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