TITLE
Recommendation to adopt resolution authorizing City Manager to execute an agreement and all related documents with Bartel Associates, LLC to provide actuarial services for the Public Agency Retirement System (PARS) Defined Benefits Plan Trust, in an amount not to exceed $25,000 annually. (Citywide)
DISCUSSION
The City's temporary and contract employees receive retirement benefits through the Public Agency Retirement System (PARS) Defined Benefit Plan Trust (Plan). PARS, the Trust Administrator, is a 401 (a) tax-qualified multiple employer trust composed of various California governmental agencies including cities, school districts, community colleges, counties and other special districts.
Since the Plan's inception, Bartel Associates, LLC has performed the actuarial function under a consolidated contract with PARS. To increase transparency, the attached Resolution segregates the services of Bartel Associates, LLC into a separate contract. PARS has been and will remain responsible for the day-to-day administration of and record-keeping for the Plan. Union Bank of California N.A. is the trustee for the Plan, and is responsible for investing contributions, safeguarding assets and distributing benefits to eligible Plan participants or their beneficiaries.
Bartel Associates, LLC has assisted the City with California Public Employees Retirement System (CaIPERS) and PARS actuarial valuations since 1992. Bartel Associates, LLC is the premier actuarial services provider to cities, based on their particular expertise on CalPERS issues, and have proven to be an extremely valuable resource for the City. A primary function of actuarial professionals is to ensure the Plans' trust estates are sufficient to meet the projected benefit obligation to the participants. Additionally, Bartel Associates, LLC is an expert in Other Post Employment Benefits and defined-contribution retirement plans. Bartel Associates, LLC is currently advising the City on these issues as well.
The expertise, experience and intimate knowledge of the City's various retirement plans uniquely qualify Bartel Associates, LLC for this engagement.
This matter was reviewed by Deputy City Attorney Lori Conway on October 1, 2007 and Budget and Performance Management Bureau Manager David Wodynski on September 20, 2007.
TIMING CONSIDERATIONS
Council adoption of the Resolution is requested on October 9, 2007 to ensure continuity of services.
FISCAL IMPACT
There is no direct fiscal impact to the General Fund for the Plan administration or actuarial services. These costs are directly borne by the Plan itself.
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT WITH BARTEL ASSOCIATES, LLC WITHOUT ADVERTISING FOR BIDS TO PROVIDE ACTUARIAL SERVICES FOR THE PUBLIC AGENCY RETIREMENT SYSTEM (PARS) DEFINED BENEFITS PLAN TRUST
Respectfully Submitted,
DAVID S. NAKAMOTO
CITY TREASURER
LORI ANN FARRELL
ACTING DIRECTOR OF FINANCIAL MANAGEMENT
NAME |
APPROVED: |
TITLE |
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ANTHONY W. BATTS |
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CITY MANAGER |