City Council Agenda Report
Meeting Date: June 4, 2024
From: Jessica Alcaraz, Financial Services Administrator Department: Finance
Submitted by: Javier Valdez, Business and Account Supervisor Subject
Services Agreement with Aon Risk Insurance West, Inc. for Actuarial Analysis Services Recommendation
Approve and authorize the City Administrator to execute a Services Agreement with Aon Risk Insurance Services West, Inc., in substantially the same form as submitted, for actuarial analysis services for a total amount not-to-exceed $21,750, for a three-year term effective July 1, 2024 through June 30, 2027.
Background
Pursuant to the informal selection process defined by Vernon Municipal Code (VMC) Section
3.32.100(D), on March 21, 2024, the Finance Department sought proposals for a three-year agreement to provide actuarial analysis required for financial statements disclosure. Six potential firms were formally invited and one proposal was received. The proposal submitted by Aon Risk Insurance West, Inc. (Aon) was responsive to the City’s needs and deemed adequate to perform actuarial analysis and develop independent data on the workers' compensation and general liability for inclusion in the audited financial statements.
Staff recommends approval to award the service agreement to Aon for actuarial analysis services for an annual amount not-to-exceed $7,250 per year with a three-year total not-to-exceed $21,750 effective July 1, 2024, and ending June 30, 2027. Pursuant to VMC Section
3.32.030(B), City Council approval is required if, in the (12) months preceding the effective date of a proposed new, renewed, or otherwise amended contract, the City has paid or awarded the vendor more than $100,000. On March 5, 2024, Council approved a three-year agreement with Aon for $462,500 to serve as the City’s professional property/casualty insurance broker of record, thus Council approval is required for the proposed new agreement for actuarial analysis services.
Fiscal Impact
The fiscal impact is $7,250 per year, with a total not-to-exceed $21,750 for the duration of the three-year term of the services agreement. Sufficient funds are included in the General Fund, Finance Department, Professional Services – Technical, Account No. 011-010-130-529225 proposed fiscal year 2024-25 budget and will be budgeted in subsequent years.
Attachments
1. Aon Risk Insurance Services West, Inc. – Services Agreement