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9 <br />THE CITY OF <br />j~L~E~S~4NTONo CITY COUNCIL AGENDA REPORT <br />May 1, 2007 <br />Finance Department <br />TITLE: APPROVAL OF A SECOND AMENDMENT TO AN AGREEMENT FOR <br />PROFESSIONAL SERVICES WITH BARTEL ASSOCIATES, LLC, FOR <br />ACTUARIAL CONSULTING AND RELATED SERVICES <br />SUMMARY <br />The City Manager approved an agreement with Bartel Associates, LLC, dated July 1, <br />2006, and subsequently Amendment #1, to provide consulting services for preparation <br />of an actuarial study and related consulting services in implementing new accounting <br />and financial reporting requirements for retiree medical benefits. Implementing the new <br />accounting standards will involve actuarial projections, and potentially establishment of <br />an irrevocable trust to fund retiree medical benefits. The City previously has had Bartel <br />Associates conduct similar actuarial studies in 2001 and 2004 in conjunction with setting <br />aside funds in reserve for retiree medical benefit payments. <br />RECOMMENDATION <br />Approve the Second Amendment to Professional Services Agreement with Bartel <br />Associates, LLC, for an additional fee of $ 25,000 and a new total not to exceed <br />$54,000. <br />FINANCIAL STATEMENT <br />The amount expended on the initial contract and Amendment #1 is $29,000. This <br />action requests an additional $25,000. Funding is available in the budget in Special <br />Revenue Funds; Retiree Medical Reserve Fund and LPFD Retiree Medical Reserve <br />Fund. If additional funding is needed, staff will return to Council for an additional <br />appropriation. <br />Because the issue is complex and because it may take some time to develop policy and <br />funding recommendations, actuarial consulting services will be ongoing for a period of <br />time and there is the potential for additional contract amendments. <br />