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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Administrative Services
Meeting Date: April 21, 2025
Report #:2502-4134
TITLE
Approval of Amendment Number 1 to Contract Number S22184359 With Prime Actuarial Consulting, LLC dba Bickmore Actuarial, in the Amount of $27,000, for a new Total Not-to- Exceed Contract Amount of $67,500 for Actuarial Services Related to the Workers’ Compensation and the General Liability Programs and to Extend Term for an Additional Two Years; CEQA Status – Not a Project
RECOMMENDATION
Approve and authorize the City Manager or designee to execute Amendment No. 1 to contract S22184359 (Attachment A) with Prime Actuarial Consulting, LLC dba Bickmore Actuarial for actuarial services and analysis of the workers’ compensation and general liability programs and to extend term for an additional two years in an amount not-to-exceed $27,000, for a revised total contract not-to-exceed amount of $67,500 over the five-year term of the agreement.
Council approval is needed to extend the term of the agreement from 3 years to 5 years since the City Manager is authorized to approve terms of up to 3 years.
BACKGROUND
On July 1, 2022, staff entered into a contract with Prime Actuarial Consulting, LLC dba Bickmore Actuarial, for the analysis of both workers’ compensation and liability programs for the Administrative Services Department. The contract had a three-year term with an annual amount of $13,500, for a total not-to-exceed amount of $40,500. The contract expires on June 30, 2025. Staff recommends amending the contract to extend the term by two additional years, through June 30, 2027, at $13,500 per year, for a new total not-to-exceed amount $67,500.
ANALYSIS
The City requires actuarial services to accurately estimate the costs and liabilities associated with its workers’ compensation and liability programs, as well as for cost allocation. This provides guidance on appropriate funding to cover potential claims, avoid unexpected financial burdens, and ensure accurate budgeting. It also ensures compliance with the Government
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Accounting Standards Board (GASB) No. 30 “Risk Financing Omnibus,” which governs the accounting and reporting requirements related to self-insurance, pooled insurance arrangements, and other risk financing activities. City staff do not possess actuarial expertise therefore this contract is needed to develop the specific actuarial costs estimates that apply to Palo Alto and are used for financial planning purposes and incorporated into City audited financial statements.
FISCAL/RESOURCE IMPACT
This recommendation has no financial impact for Fiscal Year 2025. Funding for this amendment in subsequent years will be subject to City Council’s approval as part of the annual budget process.
STAKEHOLDER ENGAGEMENT
This contract was reviewed and coordinated with internal departments including Legal and Purchasing to ensure alignment with City policies and procedures.
ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by CEQA because a contract for actuarial studies is an administrative activity which does not involve any commitment to any specific project which will not result in direct or indirect physical changes in the environment. CEQ Guidelines section 15378(b)(5).
ATTACHMENTS
Attachment A - Prime Actuarial Consulting, LLC dba Bickmore Actuarial, Contract S22184359 Amendment 1
APPROVED BY:
Lauren Lai, Administrative Services Director