June 20, 2023
Finance Department
DATE: June 20, 2023
TO: Mayor Martinez and Members of the City Council
FROM:
Nickie Mastay, Deputy City Manager, Internal Services
Mubeen Qader, Deputy Director of Finance
Subject:
Third Amendment to the Contract with Via Actuarial
Services Formerly Known as Van Iwaarden Associates
For Actuarial Services
FINANCIAL IMPACT: The contract amount will be funded by the Finance Budget in the amount of $46,500 in the proposed Fiscal
Year 2023-2024 (Account String: 01175715-400201)
PREVIOUS COUNCIL
ACTION:
None.
STATEMENT OF THE
ISSUE:
City staff is seeking approval to amend its contract with VIA Actuarial Services for actuarial services relating to retiree healthcare plan and pension management.
Services include preparing actuarial valuation reports for the Police and Firemen’s Pension Plan, the General
Pension Plan, the Garfield Pension Plan, and the Other
Post Employment Benefits (OPEB) plans.
RECOMMENDED ACTION:
APPROVE the third amendment to the contract with VIA
Actuarial Services, formerly known as Van Iwaarden
Associates, for actuarial services necessary for retiree healthcare plan and pension fund management,
increasing the contract amount by $46,500, for a total
not-to-exceed amount of $145,000, and extending the
contact term through June 30, 2024 – Finance
Department (Nickie Mastay/Mubeen Qader 510-412-
2077).
AGENDA
REPORT
June 20, 2023
DISCUSSION:
The City of Richmond is required to complete an actuarial valuation report on a biennial basis for the Police and Firemen's Pension Plan, the General Pension Plan, the Garfield Pension Plan, and the two Other Post Employment Benefits (OPEB) Plans (City and Richmond Police Officers Association).
In the summer of 2020, City staff issued a Request for Proposals (RFP) to solicit actuarial firms that best served the public sector pension clients in the State of California. Four proposals were received, from Van Iwaarden Associates, Lauterbach & Amen, LLP, Jefferson Solutions, Inc., and Nyhart. These responses were reviewed by a panel made up of City staff from the Finance Department. After reviewing the four responses and comparing them to the requirements identified in the RFP, the panel selected Nyhart and Van Iwaarden Associates as the most responsive. These firms were then invited to participate in the interview process. The same review panel interviewed representatives from the two firms, with questions focusing on the proposed budget, experience working with governmental agencies, and overall history of the firms.
Van Iwaarden Associates was selected based on their overall experience, as well as their specific experience regarding the City’s specific needs.
Upon considering all aspects of the criteria mentioned above, a contract with Van Iwaarden Associates in the amount of $26,000 for the period from July 1, 2021, to June 30, 2022, with two (2) one-year extensions was approved on June 15, 2021. The First contract amendment was subsequently made to increase the contract payment limit amount by $8,000. The Second contract amendment was subsequently made to increase the amount by $64,500 and extend the contract term to June 30, 2023.
The City’s Deputy Director of Finance would like to exercise the second one-year extension option with VIA Actuarial Services based on satisfactory performance. The contract term will be extended to June 30, 2024. VIA Actuarial Services will be providing the City with the required valuation reports for the Fiscal Year ending June 30, 2023, that comply with the Governmental Accounting Standards Board (GASB) No. 68 and No. 75.
Also, VIA Actuarial Services will be providing the City with supplemental analysis and funding reports related to Pensions and Other Post Employment Benefits.
DOCUMENTS ATTACHED:
Attachment 1 – Original Contract
Attachment 2 – Contract Amendment No. 1
Attachment 3 – Contract Amendment No. 2
Attachment 4 – Contract Amendment No. 3