Req. #10160
"SOLUTION NO. %S'6305
1 WHEREAS the Board of Administration ("Board") of the Tacoma Employes'
2 Retirement System ("System") is responsible for the proper and prudent
3 investment of the funds of the System, and
4 WHEREAS the Board finds it necessary to employ a consultant to provide
5 pension and investment consulting services for the Board, and
6
WHEREAS the Board, at its meeting held on June 10, 2004, determined
7
8 that it was reasonable and prudent to distribute a Request for Proposal ("RFP")
9 for pension consulting services and commenced said process in July 2004, and
10 WHEREAS, at the conclusion of said RFP process, and after a
I I thorough, deliberative review of proposals submitted from ten different firms,
12 the Board, at its meeting held on August 19, 2004, selected Wilshire Associates
13
Incorporated ("Wilshire") as the best firm to provide pension consulting services
14
based upon Wilshire's demonstrated ability to meet the needs of public sector
15
16 defined benefit pension systems, demonstrated consultant success as
17 evidenced by the rates of return achieved for clients, and the overall quality of
18 client services, and
19 WHEREAS the Board further recommended that the City Council
20 authorize the Board to enter into a three-year agreement with Wilshire, with two
21
one-year renewal options, per the terms of the RFP, with the fee for the
22
23 three-year period of October 1, 2004, through September 30, 2007, to be an
24 estimated $140,000 per year, for a total estimated amount of $420,000 for the
25 three-year period, and
26
res10160.doc-CFC/mds
LEG 004 (11/89)
WHEREAS it appears to be in the best interests of the City and the System
to enter into such agreement; Now, Therefore,
2
3 BE IT RESOLVED BY THE COUNCIL OF THE CITY OF TACOMA:
4 That the Board of Administration of the Tacoma Employes' Retirement
5 System is hereby authorized to employ Wilshire Associates Incorporated to
6 provide pension consulting services for the Tacoma Employes' Retirement
7 System for the three-year period of October 1, 2004, through September 30,
8
2007, with two one-year renewal options, said agreement for the three-year
9
10 period to be in the estimated total amount of $420,000, and in substantial
1 1 accordance with the proposed agreement on file in the office of the City Clerk.
12 Adopted SEP 2 1 2004
13
14 Mayor
15 Attest:
16
17 City Clerk
18
19
Appr ed as to form and legality:
20
21 A-A <_@
22 i City Attorney
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24
25
26
2 -
res10160.doc-CFC/mds
LEG 004 (11/89)
ITY,CLERK USE
REQUEST FOR O"INANCE Request
OR RESOLUTION"".
Ordinance
bcma
Resolution
1. DATE: August 23, 2004
2. REQUESTING DEPARTMENT/DivISION/PROGRAM 3. CONTACTPERSON(to'rAuestion@qPHONE/EXTENSION
Retirement Patricia Pabst 2038
4. PREPARATION OF A RESOLUTION IS REQUESTED FOR THE CITY COUNCIL MEETING OF TUESDAY, SEPTEMBER 21, 2004.
5. SUMMARY TITLE/RECOMMENDATION: (A concise sentence, as it will appear on the Council Agenda)
Authorize the Board of Administration of the Tacoma Employes' Retirement System to execute an agreement with
Wilshire Associates, Inc., to provide pension consulting services for the period October 1, 2004, through September
30, 2007, for an estimated amount of $420,000 ($140,000/year).
6. BACKGROUND INFORMATION/GENERAL DISCUSSION: (Why is this request necessary? Are there legal requirements?
What are the viable alternatives? Who has been involved in the process?)
The Request for Proposal (RFP) process for Pension Consulting Services was commenced in July, 2004. Ten
different firms submitted proposals. The Retirement Board of Administration reviewed all proposals submitted for
essential criteria such as public sector defined benefit clients, rates of return, fees and services. Supplemental
information was requested from proposers to clarify certain information. Five candidate firms were interviewed.
After a thorough, deliberative review, the Board of Administration selected Wilshire Consulting at its August 19, 2004
meeting based upon its demonstrated ability to meet the needs of public sector defined benefit clients, demonstrated
consultant success as evidenced by client rates of return, competitive fees, quality client services and Wilshire's
demonstrated ability to achieve significant cost savings for the plan over the past five years. The Board is
recommending the Council authorize its entering into a three-year agreement with Wilshire, with two one-year
renewal options, per the terms of the RFP. The fee for the three-year period of October 1, 2004 through September
30, 2007 is estimated at $420,000.
7. FINANCIAL IMPACT: (Future impact on the budget.)
This amount is budgeted.
8. LIST ALL MATERIAL AVAILABLE AS BACKUP INFORMATION FOR THE REQUEST AND INDICATE WHERE FILED:
Source Documents/Backup Material Location of Document
Draft August 19, 2004, Retirement Board Minutes Retirement Office/City Clerk
Agreement Retirement Office/City Clerk
Request for Proposal Policy Retirement Office/City Clerk
9. FUNDING SOURCE: (Enter amount of funding from each source)
Fund Number & Name: State $ City $ Other $420,000 Total Amount $420,000
6100 Retirement
If an expenditure, is it budgeted? Z Yes 0 No Where? Org# 850010 Acct# 5310100
10. ATTORNEYCONTACT: (EnterNameofAttorneythatyou'vebeenworkingwith)
Cheryl Carlson
I 1. Depar"nt Director, Apprq d as ailability of Funds ity Manager
r of Finance
G:\LEG\CONTAGM'nWilshire2OO4ResReq
Resolution No.
Adopted: SEP 2 1 2004
Maker of Motion:
Seconded:
Roll Call Vote:
MEMBERS AYES NAYS ABSTAIN ABSENT
Ms. Anderson
Mr.Evans
Ms. Ladenburg
Mr. Lonergan
Mr. Manthou
Mr. Phelps
Mr. Stenger
Mr. Talbert
Mayor Baarsma
MEMBERS AYES NAYS ABSTAIN ABSENT
Ms. Anderson
Mr.Evans
Mr. Ladenburg
Mr. Lonergan
Mr. Manthou
Mr. Phelps
Mr. Stenger
Mr. Talbert
Mayor Baarsma
g1cityclWorms IresoL doc