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Home My WebLink AboutContract 49145-A3 CITY SECRETARY CONTRACT NO.. THIRD AMENDMENT TO FORT WORTH CITY SECRETARY CONTRACT NO.49145 AGREEMENT FOR CONSULTING SERVICES This Third Amendment to Fort Worth City Secretary Contract No. 49145 ("Third Amendment") is made and entered into by and between the City of Fort Worth, a home rule municipal corporation of the State of Texas ("City"), and PFM Group Consulting LLC, a Delaware limited liability company (the "Contractor" or "PFM Consulting"), together with its affiliates, PFM Financial Advisors LLC, a Delaware limited liability company ("Financial Advisors"), and PFM Asset Management LLC, a Delaware limited liability company ("Investment Advisors"). "Financial Advisors" and "Investment Advisors" are referred to collectively as the"Affiliates." WHEREAS, the parties entered into an agreement for professional consulting services related to the Fort Worth Employees'Retirement Plan,the same being Fort Worth City Secretary Contract No.49145(the"Contract");and WHEREAS, the parties subsequently amended the Contract to (i) add language addressing reimbursement of the reasonable expenses of the Contractor and Affiliates and (ii) provide for further services and additional payment therefor and revise other terms, those amendments being Fort Worth City Secretary Contract Nos.49145-A1 and 49145-A2;and WHEREAS, the parties wish to again amend the Contract to increase the total contract amount in order to accommodate services and compensation associated with implementation of recently approved Plan and contribution changes and with evaluation of legislation that might be fled regarding the Plan during the currently pending Texas legislative session. NOW, THEREFORE, City, Contractor and Affiliates, acting herein by and through their duly authorized representatives,do hereby agree as follows: 1. That Fort Worth City Secretary Contract 49145, as previously amended by Fort Worth City Secretary Contract Nos. 49145-AI and 49145-A2, is hereby further revised to delete Paragraph 5, "Maximum Expenditure," of Section III, "COMPENSATION," in its entirety and to enact a new Paragraph 5 to read as follows: 5. Meximum_Expaditure The City's combined total obligations for both fees and reimbursable expenses under Paragraphs 1, 2, and 3 shall not exceed Four Hundred and Thirty Eight Thousand Six Hundred and Seventeen Dollars($438,617.00). and that all other portions of Section III, "COMPENSATION," as amended by Fort Worth City 'third Amwdma u Page 1 of 2 OFFICIAL,REC CITY SECRE'L FT: WORTH,TX Secretary Contract No. 49145-A2 that are not expressly amended herein shall remain in full force and effect. 2. That all other provisions of Fort Worth City Secretary Contract 49145, as amended by Fort Worth City Secretary Contract 49145-Al and 49145-A2, that are not expressly amended herein shall remain in full force and effect. Executed on this the �day of 6L-� 2019. CITY OF ORT WORTH: PFM GROUP CONSULTING LLC By: By: Susan Atis Name: Michael Nadol Assistant City Manager VoRr Title: President/Managing Director tea. ...� ,orf ATTEST: :.� „PFM FINANCIAL ADVISORS LLC f 0 By: 1A, - . .1 y: Mar "ysekJ11 N V Alt Name: City Secretary Title: t APPROVED AS TO FORM PFM ASSET MANAGEMENT LLC ITY,: --� By: C By: Denis C. Troy Name L(-NT% �• •r l K � Assistant City Atto Title: M`�` 11 N� Di QL-CTO�- Contract Authorization: M&C C-29001 0 t/aq/a0 t 9 -HID 129S: Q019-445911k CONTRACT COMPLIANCE MANAGER: By signing I acknowledge that I am the person responsible for the monitoring and administration of this contract, including ensuring all performance and reporting requirements. Nathan Gregory,A tart HR Director Third Amendnwat Page 2 of 2 OFFICIAL RECohI CITY SECRETA?r F'T. WORTH,TX 3/21/2019 M&C Review Of ial site of the City of Fort Worth,Texas CITY COUNCIL AGENDA FORTWOR^TN COUNCIL ACTION: Approved on 1/29/2019 DATE: 1/29/2019 REFERENCE..0-29001 LOG 14PFM 3D AMENDMENT-ACTUARIAL NO.: NAME: AND CONSULTING SERVICES CODE: C TYPE: CONSENT PUBLIC NO HEARING: SUBJECT: Authorize Third Amendment of Agreement with PFM Group Consulting,LLC,PFM Financial Advisors LLC,and PFM Asset Management,LLC,for Actuarial and Consulting Services Related to the City's Retiree Benefits to Increase Contract Amount by $75,000.00,for a Revised Total Contract Amount of$438,617.00,Including Fees and Expenses(ALL COUNCIL DISTRICTS) RECOMMENDATION: It is recommended that the City Council authorize the City Manager to execute a third amendment to Fort Worth City Secretary Contract No.49145 with PFM Group Consulting LLC,PFM Financial Advisors LLC, and PFM Asset Management LLC for actuarial and consulting services for the City's retiree benefits to increase the contract amount by$75,000.00,for a total revised contract amount of$438,617.00,including fees and reimbursement of expenses. DISCUSSION: 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 proposed benefit and contribution changes that may be proposed in connection with the ongoing legislative session. Approval of this M&C would increase the contract amount by$75,000.00 for a revised total contract amount of$438,617.00. PFM's engagement was originally approved in May 2017 with a total authorized contract amount of $285,106.00,for professional services 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(M&C C-28238). An amendment was administratively executed to increase the contract amount by$28,511.00 for anticipated expenses that had been omitted from the original contract. Consideration of alternative benefit and contribution options proposed throughout the second half of 2018 required more analysis to be performed,resulting in additional costs.In September 2018,the City Council approved additional funding,bringing the total contract amount to$363,617.00 for fees and expenses. (M&C C-28849). A member election on contribution rates is scheduled to occur in February 2019,but the results of the election cannot be predicted. Because the Texas Legislature is currently in session and legislation affecting the City's pension could be filed regardless of how the election turns out,staff is recommending an additional amendment be authorized so that PFM is at the ready to analyze the impact of any changes proposed in Austin. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that funds are available in the current operating budget,as appropriated in the Human Resources Department within the General Fund.Prior to an expenditure being incurred,the Human Resources Department has the responsibility to validate the availability of funds. TO Fund Department Account Project Program Activity Budget Reference# Amount ID ID Year Chartfieid 2 FRQM Fund Department Account Project Program Activity I Budget Reference# Amount t ID I I ID Year Chartfield 2 Submitted for City Manager's Office by_ Susan Alanis(8180) riginating—DaDartment Head: Brian Dickerson(7783) Additional Information Contact: Brian Dickerson(7783) http://apps.cfwnet.org/cou ncil_packet/mc_review.asp?ID=26719&councildate=1/29/2019 1/2 3/21/2019 M&C Review ATTACHMENTS Jan 2019 PFM 1295(DOB redacted).pdf http://apps.cfwnet.org/council_packet/mc_review.asp?ID=26719&councildate=1/29/2019 2/2