SUBJECT/RECOMMENDATION:
Title
Award a contract for Other Post-Employment Benefits (OPEB) actuarial services for the five-year period ending December 31, 2021 to Gabriel, Roeder, Smith and Company for a not-to-exceed amount of $51,950 and authorize the appropriate officials to execute same. (consent)
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SUMMARY:
At least biennially, the City needs a full actuarial calculation of the City’s OPEB liability. A less expensive “roll-forward” calculation is allowed every other year if there have been no significant changes in OPEB benefits, assumptions, or experience.
Request for Proposals (RFP) 50-16 was issued in September 2016, with proposals received in October. The RFP selection committee consisting of the HR Director, HR Manager, Finance Director, Finance Assistant Director, and the Senior Pension Payroll Analyst, unanimously chose Gabriel, Roeder, Smith & Company (GRS) from the six respondents for OPEB actuarial services. GRS has been the actuary for the OPEB plan since January 2010.
The full actuarial OPEB calculation will be done on a biennial basis with an abbreviated roll-forward prepared for the off-year when appropriate. First year fee for the full OPEB calculation will be $14,500 and the first year roll-forward fee will be $3,500. Subsequent fees will be adjusted annually for inflation, not to exceed 3% annually. If needed, additional services will be provided per various hourly rates provided in the agreement fee schedule, to be adjusted annually.
The full study and roll-forward study fees are inclusive of required reporting per the implementation of Governmental Accounting Standards Board (GASB) Statement #75, to be effective with fiscal year 2017/2018.
APPROPRIATION CODE AND AMOUNT:
Funds are available in cost code 010-09821-530100, Professional Services, to fund this contract.