The purpose of this Mayor and Council Communication (M&C) is to seek authorization to amend the agreement with PFM Group Consulting LLC, PFM Financial Management Advisors LLC, and PFM Asset Management LLC (collectively PFM) for benefit modeling and actuarial services necessary to evaluate benefit and funding options for City consideration in order to increase total contract amount to $363,617.00.
On May 16, 2017, City Council authorized execution of an agreement for professional services with PFM to assist the City in evaluating a variety of retirement benefit options and to provide actuarial analysis of how various options would impact the Fort Worth Employees' Retirement Fund and the City's current and future operating budgets with a total authorized contract amount of $285,106.00 (M&C C-28238).
Following approval of that M&C and execution of Fort Worth City Secretary Contract No. 49145, staff and PFM realized that the original contract and M&C failed to account for reimbursement of anticipated expenses totaling an estimated $28,511.00. Using the delegated authority under Section 2-9 of the City Code, the City Manager's Office executed an amendment to the agreement (CSC No.49145-A1) to provide for reimbursement of those expenses, which increased the total contract amount to $313,617.00.
In light of the ongoing discussions regarding potential pension changes and the need to evaluate additional proposals that have been brought forward, staff is proposing to increase the contract amount by an additional $50,000.00, which would bring the total contract amount to $363,617.00 for fees and expenses. The total expenditure will be based on actual services provided not to exceed $363,617.00.
The combined amount of the prior and proposed amendment is less than $100,000.00 and therefore within the delegated authority of Section 2-9. However, it was decided to bring the second amendment forward to City Council in order to provide additional transparency and enhanced awareness of the costs being incurred given the heightened level of interest in the ongoing pension discussions.