October 6, 2026
Finance Department
DATE: October 6, 2026
TO: Mayor Martinez and Members of the City Council
FROM: Emily Combs, Director of Finance
Mubeen Qader, Deputy Director of Finance
Jerry Gurule, Accounting Manage
Subject: Contract Amendment No. 1 with Nicolay Consulting Group to Provide Additional Actuarial Services
FINANCIAL IMPACT: The contracted amount of $35,000 is included within the approved Fiscal Year 2026-27 Finance Department
budget (Account String: 01175715 – 400201).
PREVIOUS COUNCIL
ACTION:
June 24, 2025
STATEMENT OF THE
ISSUE:
The City requires actuarial services to support
administration of its pension and Other Post-Employment Benefit (OPEB) plans and related labor negotiations. As negotiations progressed, additional actuarial modeling, analysis, and revisions were needed beyond the original scope. Amendment No. 1 expands the scope of services
and increases the contract amount.
RECOMMENDED ACTION: APPROVE the first amendment to the contract with Nicolay Consulting Group for actuarial services for the City’s Other Post-Employment Benefit Plans, expanding
the scope of services to include additional modeling,
analysis, and reporting, and increasing the payment limit by $35,000, for a total contract amount not to exceed
$91,800, with a term ending June 30, 2028 – Finance
Department (Emily Combs 510-620-6740/Mubeen Qader
510-412-2077/Jerry Gurule 510-620-6591).
AGENDA
REPORT
October 6, 2026
DISCUSSION:
The City of Richmond is required to complete annual actuarial reports for its pension and Other Post-Employment Benefit (OPEB) plans, in accordance with Government Accounting Standards Board (GASB) requirements. The City administers two closed pension plans and two OPEB plans, including the Richmond Police Officers Association (RPOA) OPEB.
In March 2026, the City entered into an engagement with Nicolay Consulting Group to provide actuarial services related to plan design scenarios for the RPOA OPEB Plan, supporting ongoing labor negotiations. The original scope included 30-year projections of assets, liabilities, and contributions for several plan design scenarios, with deliverables to support City staff and labor discussions.
As negotiations progressed, the City requested additional analyses, revisions, and meeting support beyond the original scope. The contract amendment expands the scope of services to include:
Revised modeling of retiree health plan caps and alternative employee contribution methodologies.
Updated actuarial liability, Normal Cost, Actuarially Determined Contribution (ADC), asset, funded status, City cash outlay, and long-term projections for alternative scenarios.
Review and clarification of plan provisions, including medical, dental, and vision benefits, and quantification of actuarial impacts.
Preparation and revision of reports, exhibits, and presentation materials for City Council and RPOA representatives.
Participation in meetings with City staff, City Council, and RPOA representatives to communicate actuarial results and address questions.
The expanded scope is necessary to address the complexity of the RPOA retiree health plan design analysis and to provide comprehensive support for labor negotiations.
Services will continue to be billed on a time and expense basis, with estimated total fees for the engagement now in the range of $30,000 to $35,000, reflecting the additional analyses and negotiation support required.
City staff recommend approval of the contract amendment no. 1 to increase the payment limit by $35,000, for a total contract amount not to exceed $91,800 with a term ending June 30, 2028, to ensure compliance with GASB standards, support informed decision-making during labor negotiations, and maintain the integrity of the City’s pension and OPEB administration.
DOCUMENTS ATTACHED:
Attachment 1 – Original Contract
Attachment 2 – Contract Amendment No. 1