Title
[ITEM PULLED BY ADMINISTRATION] MOTION TO APPROVE THE PROPOSED AGREEMENT BETWEEN THE CITY OF PEMBROKE PINES AND RPW SOLUTIONS, LLC D/B/A BCG PENSION RISK CONSULTANTS (“BCG”) EFFECTIVE ON THE DATE AGREEMENT IS EXECUTED BY BOTH PARTIES FOR A TOTAL AMOUNT NOT TO EXCEED $165,000.
Summary Explanation and Background
PROCUREMENT PROCESS TAKEN:
- Chapter 35 of the City’s Code of Ordinances is titled “PROCUREMENT PROCEDURES, PUBLIC FUNDS.”
- Section 35.18 of the City's Code of Ordinances is regarding "COMPETITIVE BIDDING OR COMPETITIVE PROPOSALS REQUIRED; EXCEPTIONS."
- Section 35.18(C) states, "Only the following situations are exempt from the competitive bid and competitive proposal requirements of this section:"
- Section 35.18 (C)(2) states that “Contracts for professional services involving peculiar skill, ability, experience or expertise, which are in their nature unique and not subject to competitive bidding, or competitive proposals, are exempt from this section; however, state laws, such as the Consultants’ Competitive Negotiation Act of the state statutes, as may be amended from time to time to the extent applicable, shall be followed.”
- Section 35.21 of the City's Code of Ordinances is titled "AWARD OF CONTRACT."
- Section 35.21(A) of the City's Code of Ordinances is titled "City Commission Approval."
- Section 35.21(A)(1) states, "An initial purchase of, or contract for, commodities or services, in excess of $100,000, shall require the approval of the City Commission, regardless of whether the competitive bidding or competitive proposal procedures were followed."
SUMMARY EXPLANATION AND BACKGROUND:
1. The City Administration engaged Ford and Associates, Inc. (Financial Advisors) to work with the City under their current Agreement to assist in the solicitation, review, and analysis of the engagement of a consulting firm to work with the City regarding a possible Pension Risk Transfer (“RPT”) of the General Employee Pension Plan which has been frozen or closed for participants/new hires respectively in 2010 and 2014.
2. The purpose of this process was to obtain bids from qualified firms to furnish consulting services regarding the analysis of the current Plan, obtain solicitation from insurance carriers, evaluation of insurance carriers in compliance with all applicable laws and regulations, participant communication, group annuity agreement terms, RPT process, and recommendations regarding selected insurance carrier acting in a fiduciary capacity.
3. Ford and Associates, Inc., in conjunction with City Administration reviewed the proposals and both recommended that the City select RPW Solutions, LLC d/b/a BCG Pension Risk Consultants (BCG) to be engaged as the City’s consulting firm. This determination was based on BCG’s proposal as well as the firm’s satisfactory references demonstrating successful completion of similar projects.
4. Staff recommends City Commission’s approval to enter into the attached Agreement with BCG with a total cost not to exceed $165,000 for the project. Estimated completion time is approximately six months after the execution of the Agreement by both parties.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: $115,000 (Base Agreement) plus additional fees and expenses estimated to be under $50,000.00 for a total estimated cost of $165,000.
b) Amount budgeted for this item in Account No: Funds are available in account # 001-519-0800-531500-0000-000-0000 (Professional Services - Other) and it will be reimbursed by the General Pension Plan.
c) Source of funding for difference, if not fully budgeted: Not Applicable.
d) 5 year projection of the operational cost of the project Not Applicable.
e) Detail of additional staff requirements: Not Applicable.
FEASIBILITY REVIEW:
A feasibility review is required for the award, renewal and/or expiration of all function sourcing contracts. This analysis is to determine the financial effectiveness of function sourcing services.
a) Was a Feasibility Review/Cost Analysis of Out-Sourcing vs. In-House Labor Conducted for this service? Not Applicable.
b) If Yes, what is the total cost or total savings of utilizing Out-Sourcing vs. In-House Labor for this service? Not Applicable.