From
Lisa Norris
Title
Renewal of Professional Services agreement for actuarial analysis with Rudd and Wisdom, Inc. in the annual amount of $13,000 for a two-year term with up to four two-year renewal terms totaling $69,020 if all renewal periods are exercised and authorize the City Manager to execute any additional renewals with aggregate price fluctuations of up to $50,000 so long as sufficient funding is appropriated by the City Council to satisfy the City’s obligation during the renewal term(s).
Presenter
Lisa Norris, Human Resources Director
Recommended Action
Approve
Analysis
The City has used Rudd and Wisdom for over a decade for property, casualty, and Worker’s Comp actuarial analysis. This service qualifies as a "Professional Service" in Chapter 2254 of the Local Government Code, Professional Services Procurement Act. Therefore, selection and award of a service provider is allowed on the basis of demonstrated competence and qualifications to perform the services; and, for a fair and reasonable price.
This year’s renewal will cause the cumulative amount of the current contract’s renewal terms to reach $50,000, therefore, requiring City Council approval. Years beyond the one requested tonight, may be possible so long as Rudd and Wisdom Inc. continues to demonstrate competence and qualifications to perform these services for a fair and reasonable price. Rudd and Wisdom is projected to increase every two years at a rate of 3% over the prior contract, so that is factored into each year following the period of October 2020-September 2022 contract as shown below.
Contract Term Expenditure Requested
Oct14’-Sep16’ $12,000.00
Oct16’-Sep18’ $12,000.00
Oct18’-Sep20’ $13,000.00
Previously Spent $37,000.00
Oct20’-Sep22’ $13,000.00* ($50,000 cumulative total requiring council approval)
Oct22’-Sep24’ $13,390.00 3% increase
Oct24’-Sep26’ $13,792.00 3% increase
Oct26’-Sep28’ $14,206.00 3% increase
Oct28’-Sep30’ $14,632.00 3% increase
Requested: $69,020.00
Grand Total $106,020.00 if all renewals are extended
*City Council Approval is required for the current renewal term since the cumulative expenditure of this amount will equal $50,000.
Financial Consideration
Funding is available in the FY 2020/2021 Risk Fund (212010-61485) and will be charged accordingly on orders through the end of the current fiscal year. Funding for future fiscal years will be paid from that year’s approved budgets.