HomeMy WebLinkAboutAgenda Statement 1979/02/20 Item 13CITY OF CHULA VISTA
COUNCIL AGENDA STATEMENT
"Item No. 13
For meeting of 2/20/79
ITEM TITLE Resolution y-~~-~- Accepting Proposal from Coates, Herfurth and England for
Actuarial Evaluation, and Appropriating Funds Therefor
SUBMITTED BY City Manager
ITEM EXPLANATION
(4/5TH'S VOTE REQUIRED YES NO )
Existing Memoranda of Understanding with the City's police and fire fighters associations
include a commitment to perform a study on the cost of the PERS 2% at 50 Safety ~~1ember Re-
tirement Plan. The original deadline for this report was February 1, 1979. However,
after some weeks of research and investigation, in-house staff found that a valid study of
pension systems required specialized technical skills which we did not possess. The normal
approach of researching "comparable jurisdictions" was not applicable in this instance as
each pension group must be considered as a unique entity. On January 26, 1979 letters were
forwarded to the presidents of our safety employee associations explaining the situation, and
it was stated that staff would be seeking proposals from a consulting actuary. In addition,
it~was noted that the original deadline could not be met but that an accurate study could
be performed prior to commencement of meet and confer sessions in April, 1979.
On January 30, 1979, a Request for Proposal was sent to seven firms qualified to perform
actuarial evaluations and they were given until February 12, 1979 to respond. Study pro-
posals were received from the San Francisco firms of Milliman & Robertson as well as
Coates, .Herfurth and England. The submissions from these organizations were reviewed by
the City Manager's Office and references were contacted. Although both firms are well
qualified to perform the study the City has requested, it is recommended that Coates,
Herfurth and England be designated to perform the work. Their proposal was the most respon-
sive to our RFP (attached) and the total projected cost is lower than the competing firm.
With regard to cost, Milliman & Robertson have bid $3,500 for a written report and $1,000
additional for a follow-up conference with City officials. This total of $4,500 exceeded
Coates, Herfurth and England's bid of $4,050 by $450. The latter organization believes a
conference is essential and included it in their basic bid. Staff agrees with this stand
as any study of this sort will incorporate technical terms and assumptions which are best
explained on a face-to-face basis.
continued on Supplemental Page 2
Agreement Resolution X
X-Request for Proposal
Other X-Proposal ENVIRONMENTAL
EXHIBITS -
Ordinance
Plat Notification List
DOCUMENT: Attached Submitted on
FINANCIAL IMPACT
Appropriate $4,050 from the unappropriated balance of the General Fund and place in
Account 100-0210-5201 (Professional Services)
STAFF RECOMMENDATION
Adopt resolution
BOARD/COMMISSION RECOMMENDATION
COUNCIL ACTION
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Supplemental Page 2
Item No. 13
Meeting of 2/20/79
If the Council approves staff's recommendation for acceptance of the consulting
actuary's proposal, a special appropriation of $4,050 will be required. It is felt
that this expenditure is justified as there are significant cost implications in any
contemplated change in pension programs. At present the City contributes over $300,000
annually for safety employee retirement, and there is clear evidence that public retire-
ment systems have faced difficulties throughout the nation. The firm designated has broad
experience in public and private pension plans and has ongoing relationships with both
county and municipal jurisdictions.
Your approval is recommended.
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