2020-25 GovInvest, Inc - Actuarial Consulting & Technology ServicesMEMORANDUM
DATE:
TO:
FROM:
RE:
Please list the Contracting Party / Vendor Name, type of agreement to be executed, including any change orders or
amendments, and the type of services to be provided. Make sure to list any related Project No. and Project Name.
Authority to execute this agreement is based upon:
___ Approved by City Council on ___________________________________________
__ City Manager’s signing authority provided under the City’s Purchasing Police
[Resolution No. 2019-021] for budget expenditures of $50,000 or less.
___ Department Director’s or Manager’s signing authority provided under the City’s
Purchasing Policy [Resolution No. 2019-021] for budget expenditures of $15,000 and
$5,000, respectively, or less.
Procurement Method (one must apply):
___ Bid ___ RFP ___ RFQ ___ 3 written informal bids
___ Sole Source ___ Select Source ___ Cooperative Procurement
Requesting department shall check and attach the items below as appropriate:
___ Agreement payment will be charged to Account No.: _____________________
___ Agreement term: Start Date ________________ End Date ________________
___ Amount of Agreement, Amendment, Change Order, etc.: $____________________
REMINDER: Signing authorities listed above are applicable on the aggregate Agreement amount,
not individual Amendments or Change Orders!
___ Insurance certificates as required by the Agreement for Risk Manager approval
Approved by: ______________________________ Date: _______________
___ Bonds (originals)as required by the Agreement (Performance, Payment, etc.)
___ Conflict of Interest Form 700 Statement of Economic Interests from Consultant(s)
NOTE: Review the “Form 700 Disclosure for Consultants” guidance to determine if a Form 700 is
required pursuant FPPC regulation 18701(2)
___ Business License No. __________________; Expires: __________________
___ Requisition for a Purchase Order has been prepared (Agreements over $5,000)
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City of La Quints
CITY COUNCIL MEETING November 17, 2020
STAFF REPORT
CONSENT CALENDAR ITEM NO. 5
AGENDA TITLE: APPROVE AGREEMENT FOR CONTRACT SERVICES WITH
GOVINVEST, INC. FOR ACTUARIAL CONSULTING AND TECHNOLOGY SERVICES
RECOMMENDATION
Approve Agreement for Contract Services with GovInvest, Inc. for actuarial
consulting and technology services for a total not to exceed contract amount of
$106,000; and authorize the City Manager to execute the agreement.
EXECUTIVE SUMMARY
• The City issued a Request for Proposals (RFP) for Actuarial services on
September 25, 2020.
• Two Financial Advisory Commissioner's (FAC) were appointed to serve on
the review and selection committee (Committee).
• Actuarial services are required to meet Governmental Accounting
Standards Board (GASB) financial statement reporting guidelines.
• Staff recommends a multi -year contract with GovInvest, Inc.
FISCAL IMPACT
If approved, the first three years ($64,000) would be paid in advance. Advance
payments would be recognized as pre -paid expenses and allocated to each
fiscal year's budget as indicated in the chart below.
FISCAL YEAR
CONTRACT AMOUNT
$22,000
2020/21
2021/22
$20,000
2022/23
$22,000
2023/24
$20,000
2024/25
$22,000
TOTAL
$106,000
Pension and OPEB software module fees would be paid from the Information
Technology Fund (Account No. 502-0000-60301, Software Licenses) and annual
GASB Reports from the Finance Department's Budget (Account No. 101-1006-
60104, Consultants).
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BACKGROUND/ANALYSIS
The City of La Quinta (City) issued an RFP to seek a qualified third -party
consulting firm to provide required annual Pension and Healthcare Actuarial
Services. These services are required in order to comply with GASB Statements
68 and 75 which establish standards for the measurement, display, and
recognition of Pension and Other Post -Employment Benefits (OPEB) expenses
and liabilities.
Staff sought participation from the FAC to review proposals and select an
appropriate consultant for these services. Commissioners Twohey and Hunter
joined the City's Accouting Manager and Finance Director on the Committee.
RFP responses were evaluated on the following qualificiations:
• Qualified actuarial staff to perform Scope of Services included in the RFP
• Demonstrated experience working with GASB Statements and ability to
implement any future statements
• Previous experience working with public entities who have award winning
Comprehensive Annual Financial Reports (CAFR)
• Experience working with Pension and CaIPERS's CERBT Trust accounts
• Abiltity to provide added value services such as access to long-term
projections, presentation assistance, ongoing training and/or periodic
updates pertaining to pension and OPEB reporting requirements, and
analysis for labor negotiations or other similar services.
The City received two RFP responses from Lepton Actuarial and Consulting, LLC.
and GovInvest, Inc. The Committee recommends a multi -year contract with
GovInvest. To obtain a lower rate, the first three years would be paid in
advance and the final two years in 2024 and 2025. GovInvest has provided
actuarial services to the City since December 2017.
The following tables summarizes the multi -year contract services and pricing.
CONTRACT BASED ON CALENDAR YEAR
2021 2022 2023 2024 2025
Pension Module $ 8,000 $ 8,000 $ 8,000 $ 8,000 $ 8,000
OPEB Module $ 8,000 $ 8,000 $ 8,000 $ 8,000 $ 8,000
GASB 75 Report $ 6,000 $ 4,000 $ 6,000 $ 4,000 $ 6,000
GASB 68 Report $ - $ - $ - $ - $ -
Total $22,000 $20,000 $22,000 $20,000 $22,000 $106,000
Note: GASB 68 and 75 Reports are completed by November 1st of each calendar year for the fiscal year
ending June 30th, therefore the contract is presented on a calendar year basis. The final report for fiscal year
2024/25 would be due by November 1, 2025.
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ALTERNATIVES
Staff does not recommend other alternatives.
Prepared by: Karla Romero, Finance Director
Approved by: Jon McMillen, City Manager
Attachment: 1. Agreement for Contract Services
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