City of San Antonio - File #: 19-9072

• File #: 19-9072
• Type: Miscellaneous Item
• In control: City Council A Session
• On agenda: 1/16/2020
• Posting Language: Ordinance approving a Professional Services Agreement with Pinnacle Actuarial Resources, Inc. to provide actuarial services to the City for a 3 year term beginning February 1, 2020, and ending January 31, 2023, with an option to extend, subject to future funding by City Council, with total compensation not to exceed $85,000.00. The estimated annual expense is approximately $17,000.00 and funds in the amount of $17,000.00 are included in the FY 2020 Adopted Budget in the Liability and Workers’ Compensation Funds. [Ben Gorzell, Chief Financial Officer; Debra M. Ojo, MPA, Director, Office of Risk Management]

Date	Ver.	Action By	Action	Result
1/16/2020	1	City Council A Session	adopted	Pass

DEPARTMENT: Office of Risk Management


DEPARTMENT HEAD: Debra M. Ojo, MPA, Director


COUNCIL DISTRICTS IMPACTED: Citywide


SUBJECT:

Actuarial Services for Self-Funded Workers' Compensation & Liability

SUMMARY:
This ordinance authorizes the City Manager or his/her designee to enter into a contract with Pinnacle Actuarial Resources, Inc. to provide actuarial services for the City of San Antonio, Office of Risk Management Department. The term of this contract is three (3) years, beginning February 1, 2020, and ending January 31, 2023, with an option to extend the contract for up to two (2) one (1) year extensions, subject to and contingent upon funding by City Council, with total compensation not to exceed $85,000.00. The estimated annual expense is approximately $17,000.00.
BACKGROUND INFORMATION:

The City maintains Workers' Compensation and General Liability Self Insurance Funds ("WC/GL Self Insurance Funds") from which it pays approximately 1,700 workers' compensation and 1,000 general liability claims annually. The City retains the services of a licensed Independent Consulting Actuary who is a member of the Casualty Actuarial Society to conduct a comprehensive annual actuarial analysis and a mid-year adjustment to the annual actuarial analysis of the City's self-insured workers' compensation and liability programs to ensure the program is adequately funded. The actuarial analysis includes estimated claim reserves which are annually tested by the City's external auditors as part of their determination of the reasonableness and fair presentation of the City's financial statements. The City may also request the Consulting Actuary to evaluate the existing methodology for City-wide assessments to be charged against individual City department's cost centers within the City budget, which will enhance the current process. The assessment methodology will be created by utilizing the Consultant's expertise, skills and identified industry best practices.

A Re...