CITY COUNCIL: Resolution Awarding Professional Services Agreement for Actuarial Valuarion Services to Nicolay Consulting Group

Meeting Date: January 6, 2009
Prepared by: Joyce Giuffre,
Admin Svcs Director

City Council
Agenda Item Summary

Name: Consideration of a Resolution awarding a professional services agreement for actuarial valuation services to Nicolay Consulting Group in an amount not to exceed $5,500.

Description: On October 31, 2008, the City circulated a Request for Proposals (RFP) for an actuarial review of the City’s post-employment benefits package for retired employees.

The review will allow implementation of the Governmental Accounting Standards Board (GASB) rules regarding accounting for Other Post-Employment Benefits (OPEB). GASB Statement 45 requires disclosure of OPEB liabilities on the City’s financial statements beginning in FY 2008/09. An actuarial valuation will determine the outstanding and future liabilities associated with the City’s OPEB package.

The following summarizes the proposals from the three firms responding to the RFP:
Proposal Cost
Hourly Fee for Add’l Services
Nicolay Consulting Group $ 5,500 $175 (Sr. Actuary)
Bickmore Risk Services $ 7,250 $275 (Sr. Actuary)
Bartel Associates $10,000 $300 (Sr. Actuary)

After reviewing and conducting phone interviews with each firm, staff recommends awarding the agreement to Nicolay Consulting Group, which offers the City the necessary expertise and experience to adequately the actuarial services for compliance with GASB 45 (see Exhibit “A”) at the lowest cost.

Overall Cost: City Funds: $5,500 to be funded from Administrative Services Department Account 01-67051.

Staff Recommendation: Adopt the Resolution.

Important Consideration: To comply with GASB 45, the City must disclose its OPEB liabilities beginning in FY 2008/09.

Reviewed By:

______________________________ ______________________
Rich Guillen, City Administrator Date

CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
RESOLUTION 2009 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA AWARDING A PROFESSIONAL SERVICES AGREEMENT FOR ACTUARIAL VALUATION SERVICES TO NICOLAY CONSULTING GROUP IN AN AMOUNT NOT TO EXCEED $5,500
________________________________________________________________________
WHEREAS, on October 31, 2008, a request for proposals was circulated for an actuarial review of the City’s post-employment benefits package to allow for implementation of the Governmental Accounting Standard Board (GASB) rules regarding accounting for other post-employment benefits; and

WHEREAS, the lowest complete, responsible proposal which met all proposal qualifications was submitted by Nicolay Consulting Group at a price of $5,500.

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA DOES:

1. Award the bid for the actuarial valuation services to Nicolay Consulting Group in an amount not to exceed $5,500.

2. Authorize the City Administrator to sign the contract agreement.

3. Authorize staff to expend funds from account 01-67051 for the services provided by Nicolay Consulting Group.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA this 6th day of January 2009, by the following roll call vote:

AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:

SIGNED,

_______________
Heidi Burch, City Clerk

ATTEST:

_________________________
SUE McCLOUD, MAYOR