Title
Recommendation to Authorize the City Manager to Execute an Agreement with GovInvest for Pension, Other Post-Employment Benefits (OPEB), and Labor Costing Software, and Governmental Accounting Standards Board Statement 73 and 75 OPEB Actuarial Valuation Reports for Three Years, Plus Two One-Year Renewal Options, at $75,819 Annually for a Total Amount Not-To-Exceed $379,095. (Finance)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
The City of Alameda (City), like many municipalities across California, is confronted with the considerable challenge of managing and accurately forecasting its labor and related benefit costs including pension and retiree health otherwise known as Other Post-Employment Benefits (OPEB) costs and related liabilities. These financial obligations not only impact the City's fiscal health but also its ability to effectively plan and allocate resources for the future. Recognizing the complexity and importance of transparently reporting these liabilities, it is recommended that the City Manager be authorized to execute an agreement with GovInvest for the provision of its Pension, OPEB, and Labor Costing Software, as well as Actuarial Valuation reports for City's self-administered Police and Fire Pension plans and OPEB plan in compliance with Governmental Accounting Standards Board (GASB) Statements 73 and 75. The total cost for these services for five (5) years is not-to-exceed $379,095 ($75,819 per year).
BACKGROUND
Local agencies across the states face a significant challenge in managing their financial obligations related to pension and OPEB liabilities. These liabilities are not only substantial but also complex, requiring sophisticated management and forecasting tools to ensure accurate reporting and compliance with relevant standards, including GASB Statements 73 and 75. The City's ability to effectively manage these liabilities is crucial for its long-term fisca...
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