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Title:
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Approval of an Amendment to the Existing Professional Services Agreement with AON Consulting for Actuarial Services.
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City of Culver City, California
City Council Agenda Item Report
RECOMMENDATION:
Staff recommends the City Council approve an Amendment to the existing
professional services agreement with Aon Consulting for actuarial services
associated with implementation of Governmental Accounting Standards Board
(GASB) Statement No. 45.
BACKGROUND / DISCUSSION:
On August 13, 2007, City Council approved the release of the Request for
Proposal for Actuarial Services in order to determine the long-term costs of the City
of Culver City’s other post-employment benefits (OPEB) such as medical
insurance for retirees. On November 14, 2007, City Council awarded a
professional services agreement to AON Consulting for preparation of the actuarial
report for the City’s “other post employment benefits” (OPEB). This report was
presented to the City Council on May 5, 2008.
In order to analyze methods and alternatives aimed at lowering the long-term costs
and liabilities associated with post-employment medical insurance, the Human
Resources Department has coordinated the formation of a Health Benefits
Committee. This Committee is made up of Human Resources Department staff,
Finance Department staff, City Manager’s Office staff and representatives from the
City’s various bargaining groups. Part of the process of analyzing alternatives
includes their potential effect on the City’s OPEB liability. AON Consulting was
asked to calculate the actuarial effects of several alternatives using the original
data and assumptions from their prior actuarial analysis. The cost of this additional
work is $9,500.
Meeting Date: 01/26/09 Item Number: C-6
AGENDA ITEM: Approval of an Amendment to the Existing Professional Services
Agreement with AON Consulting for Actuarial Services.
Contact Person/Dept.:
Jeff Muir, Chief Financial Officer
Phone Number: (310) 253-5865
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [ ] Attachments: [X]
Public Notification: AON Consulting (01/21/09); Master E-Mail Notification List
(01/21/09)
Department Approval:
Jeff Muir (01/12/09)
City Attorney Approval:
Carol Schwab (by H. Baker) (01/15/09)
Chief Financial Officer Approval:
Jeff Muir (01/12/09)
City Manager Approval:
Jerry B. Fulwood (01/21/09) City of Culver City, California
City Council Agenda Item Report
FISCAL ANALYSIS:
The budget for fiscal year 2008-09 includes sufficient funding for this amendment.
ATTACHMENTS:
Contract 2007-201 with AON Consulting
MOTION:
That the City Council:
1. Approve an Amendment to the existing professional services
agreement with Aon Consulting for actuarial services by increasing
the not-to-exceed dollar amount by $9,500; and,
2. Authorize the City Attorney to review/prepare the necessary
documents; and,
3. Authorize the City Manager to execute such documents on behalf
of the City.
MEETING DATE: 01/26/09
AGENDA ITEM: Approval of a Contract Amendment with AON
Consulting for Actuarial Services
ATTACHMENTS
Pages
1. Agreement 2007-201 1-7 1234567