July 2, 2024
Finance Department
DATE: July 2, 2024
TO: Mayor Martinez and Members of the City Council
FROM:
Andrea Miller, Director of Finance
Mubeen Qader, Deputy Director of Finance
Jerry Gurule, Accounting Manager
Subject:
Proposed Fourth Amendment to the Contract with Via
Actuarial Services Formerly Known as Van Iwaarden
Associates
FINANCIAL IMPACT: The contract in the amount of $21,500 will be funded in the Finance Department Budget in Fiscal Year 2024-
2025 (Account String: 01175715-400201)
PREVIOUS COUNCIL
ACTION:
None.
STATEMENT OF THE
ISSUE: Staff is seeking approval to amend its contract with VIA Actuarial Services for actuarial services related to retiree healthcare plans and pension fund management.
Services include preparing actuarial valuation reports for the Police and Firemen’s Pension Plan, the General
Pension Plan, and the Other Post Employment Benefits
(OPEB) plans.
RECOMMENDED ACTION:
APPROVE the fourth 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 $21,500 for a total not to exceed amount of $166,500, and extend the contact
term through June 30, 2025 – Finance Department
(Andrea Miller/Mubeen Qader 510-620-6740).
AGENDA
REPORT
July 2, 2024
DISCUSSION:
The City of Richmond is required to complete an actuarial valuation report to comply with the Governmental Accounting Standards Board (GASB) Statements No. 68 and No. 75 on a biennial basis for the Police and Firemen's Pension Plan, the General Pension Plan, and the two OPEB Plans (City and RPOA).
In the summer of 2020, 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 comprised 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 t he period from July 1, 2021, to June 30, 2022, with two (2) one -year extensions was approved June 15, 2021. The First contract amendment increases the contract payment limit amount by $8,000. The Second contract amendment increased the amount by $64,500 and extended the contract term to June 30, 2023. The Third contract amendment increase d the amount by $46,500 and extended the contract term to June 30, 2024.
The City’s Director of Finance would like to extend the contract term by an additional one year with VIA Actuarial Services based on satisfactory performance and the need to complete required reports in a timely manner for the year-end audit. The contract term will be extended to June 30, 202 5. VIA Actuarial Services will be providing the C ity with the required valuation reports for the Fiscal Year ending June 30, 2024, that comply with the Governmental Accounting Standards Board (GASB) Statements No. 68 and No. 75. Also, VIA Actuarial Services will be providing the city with supplemental an alysis 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
Attachment 5 – Contract Amendment No. 4