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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) NA NA NA 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). 63 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. 64 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 65