Submitted By
Steve Drazner, CFO
Reviewed By
A.M. Zayyad, Deputy Village Manager
Agenda Item Title
Title
A Resolution Approving a Professional Services Agreement for Other Post Employment Benefit (OPEB) Valuation Services with Lauterbach & Amen, LLP for Fiscal Years Ending December 31, 2023, 2024, and 2025 for a Total Amount Not to Exceed $6,780, Authorizing its Execution and Waiving the Village’s Bid Process for the Agreement
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Overview
Overview
The Village has contracted with Lauterbach & Amen, LLP to provide Other Post Employment Benefit valuations for the last six fiscal years, the most recent of which ended December 31, 2022. Annual OPEB valuations are required by the Government Accounting Standards Board and the liabilities are included in the Annual Comprehensive Financial Report.
Village staff has been extremely satisfied with the services provided by L&A over the last several years in providing OPEB valuation services. In addition, since Lauterbach has data from prior years and a solid understanding of the Village’s health insurance benefits, this will result in less time and effort in preparing future OPEB valuations compared to a new firm which would require additional effort to become familiar with the Village’s benefits and employee/retiree data.
Although the value of the contract for the three years is well below the $25K threshold requiring Board approval under the purchasing policies, for the reason cited above, staff recommends foregoing the RFP/bidding process for OPEB services and entering into a new contract with L&A. The purpose of this agenda item is therefore for transparency purposes.
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Recommendation
Recommendation
Adopt the Resolution.
Background
Lauterbach & Amen, LLP has been the provider of OPEB valuation services under the recently expired contract. Staff is extremely satisfied with the firm’s services and is recommending an additional three-year contract.
The proposed fees by year are:
2023 $1,030
2024 $4,640
2025 $1,110
Total $6,780
The reason for the higher fees in 2024 is that at least every other year, a “full” valuation is required which takes significantly more time and effort. The last full valuation was in 2022. Therefore, only a minor update is needed for 2023, a full valuation again in 2024, and another minor update for 2025.
Fiscal Impact
Annual expenditures range from $1,030 to $4,640. This will be appropriated in Finance external support 1001.41300.101.530667
DEI Impact
N/A
Alternatives
Reject the recommendation and request staff to go through the RFP process.
Previous Board Action
None
Citizen Advisory Commission Action
N/A
Anticipated Future Actions/Commitments
N/A
Intergovernmental Cooperation Opportunities
N/A