Req. #1 1527
"SOLUTIONNO. 37284
A RESOLUTION relating to the Tacoma Employes' Retirement System;
I authorizing an amendment to the agreement with Wilshire Associates
2 Incorporated for investment services.
3 WHEREAS the Board of Administration ("Board") of the Tacoma Employes'
4 Retirement System ("TERS") is responsible for the proper and prudent investment
5 of the funds for TERS, and
6
WHEREAS the Board finds it necessary to employ a consultant to provide
7
pension and investment consulting services for the Board, and
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9 WHEREAS the Board, at its meeting held on August 23, 2007,
10 recommended that the City Council authorize the Board to enter into the fourth
I 1 and fifth year renewal options to the three-year agreement with Wilshire
1 2 Associates Incorporated ("Wilshire") for the provision of pension consulting
1 3 services, in the amount of $165,000 for the period of October 1, 2007, through
14
September 30, 2008, and in the amount of $175,000 for the period of
1 5
16 October 1, 2008, through September 30, 2009, budgeted from the Retirement
17 Fund, for a cumulative total of $760,000 for the five-year contract, and
18 WHEREAS it appears to be in the best interests of the City and TERS to
1 9 enter into such agreement; Now, Therefore,
20 BE IT RESOLVED BY THE COUNCIL OF THE CITY OF TACOMA:
21
That the Board of Administration of the Tacoma Employes' Retirement
22
System is hereby authorized to amend the existing contract with Wilshire
23
24 Associates Incorporated to provide pension consulting services for the Tacoma
25 Employes' Retirement System through September 30, 2009, said agreement
26
resl 1527.doc-SG/mds
LEG 004 (11/89)
for the two-year renewal period to be in the estimated total amount of
$340,000, budgeted from the Retirement Fund, and in substantial accordance
2
with the proposed agreement on file in the-office of the City Clerk.
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4 Adopted SEP 1 8 ZOO?
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Mayor
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Attest:
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9 City Clerk
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I I Approved as to form:
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Assistant City Attorney
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2 -
3 res11527.doc-SG/mds
LEG 004 (11/89)
CITY CLERK USE ONLY
"QUEST FOR Request _r.
Tacoma
El ORI)INANCE 2 "SOLUTION Ord./Res. 27 2 8 4
1. DATE: August 23, 2007
2. SPONSORED BY: COUNCIL MEMBER(s) N/A (If no sponsor, enter "N/A")
3a. REQUESTING 4a. CONTACT (for questions): PHONE: 591-5897
DEPARTMENT/DIVISION/PROGRAM Maggie Coleman
Retirement
3b. Do PASS FRom Retirement Board 4b. Person Presenting: PHONE: 591-5897
E Yes Maggie Coleman
EJ No 4c. ATTORNEY: PHONE: 591-5632
E:]Did not go before a Committee ChervI Carlson
tor
5. REQUESTED EFFECTIVE DATE: October 1/2007 (Council m/eing date of'SVtember 18, 2007)
Our contract with Wilshire Associates Incorporated expires on September 30, 2007 and we would
therefore need this before the City Council in time to renew prior to that date.
6. SUMMARY AGENDA TITLE: (A concise sentence, as it will appear on the Council agenda.
Authorizing the Board of Administration of the Tacoma Employes' Retirement System to execute the
fourth and fifth-year renewal options to the three-year agreement with Wilshire Associates in the amount
of $165,000 for the period of October 1, 2007 through September 30, 2008 and $175,000 for the period
of October 1, 2008 through September 30, 2009, budgeted from the Retirement Fund, for the provision of
pension consulting services, for a cumulative total for the five-year contract of $760,000.
7. 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?)
A request for proposal was completed in 2004 and Wilshire Associates was awarded a three-year
contract with fourth and fifth year renewal options. This amendment would exercise the options and
extend the agreement for the optional fourth and fifth years.
8. LIST ALL MATERIAL AVAILABLE AS BACKUP INFORMATION FOR THE REQUEST AND INDICATE IWCRE FILED:
Source Documents/Backu Material Location
p of Document
Drafted August 23, 2007 Quarterly Managers Retirement Office/City Clerk@S OfficR)
Minutes
Drafted Contract Amendment Retirement Office/City Clerkg:,Office-,
Original Approved Contract Retirement Office/City Clerkl@ ,Office_:@_
9. FINANCIAL IMPACT: A. Fj No IMPACT (NO FISCAL NOTE)
B. YES,OVER$100,000,FiscaiNoteAffached
C. YES, UNDER $1 00,000, (NO FISCAL NOTE) Provide funding source
information below:
FUNDING SOURCE: (Enter amount of funding from each source)
Fund Number & Name: State $ city $ Other $ Total Amount
If an expenditure, is it budgeted? E Yes El No Where? Cost Center: 850010
Acct #: 5010100
\gensvcs\offsys\web page document5\RequestResolutionOrdinance.doc Office of the City Clerk (05107)
11 5i@ @
3 7 2 8.4
FISCAL NOTE
Each piece of legislation that has a financial impact or creates positions authority requires a fiscal
note. After preparation by departmental staff, the Budget and Research Division will review the
fiscal note and make any necessary revisions before transmittal to the Legal Department for
legislation preparation.
DEPARTMENT: CONTACT PERSON/PHONE: OMBA
CONSULTANT/PHONE:
Retirement Maggie Coleman / 5897
Is it currently budgeted? E Yes No
Is this a grant? F1 Yes No If Yes, R Operating R Capital
EXPENDITURES:
FUND NAME & NUMBER COST CENTER WBS AccouNT 2007-2009 EXPENDITURES
Retirement Adm 61 00 - 850010 '5010i0o $340,000
Adm
TOTAL
*General Fund: Include Deparftnent
Purpose: [Click Here and Type or Press Delete to Clear]
]REVENUES:
FUNDNAmE&NUMBER COSTCENTER WBS AccouNT 2007-2009REVENIJES
Retirement 61 00 850000 6011000 $340,000
TOTAL
Notes: [Click Here and Type or Press Delete to Clear]
POSITION IMPACT:
POSITION TITLE PERMANENT/PROJEcT/TEMPORARY POSITION 2007 FUTURE
POSITION END DATE FTE FTE
Totalpositions created or abrogated through this legislation, including FTE impact. FTE impact
for temporary employees is estimated.
@GensvcslcityclkRequestfor Ordinance-Mar2OO5.doc Office of the C
3 72 84
LONG-TERM FINANCIAL IMPACT OF LEGISLATION:
SPEND*G PLAN & 2007 2008 2009 2010 2011 TOYAL
BUOUT
Salaries/Benefits
Start-up
On-going
Maintenance & $41,250 $167,500 $131,250 $340,000
Operations
Capital
TOTAL 1 $41,250 1 $167,500 1 $131,250 1 1 1 $340,000
FVNWNG SOURCE 2007 2008 2009 2010 2011 ToTAL
Investment $41,250 $167,500 $131,250 $340,000
Revenues
L- TOTAL , $41,250 1 $167,500 1 $131,250 $ 3@4@0, 0 @OO
The financial cost of not implementing the legislation:
Loss of investment returns.
Estimate the cost to the City if the legislation is not implemented, including the
potential conflicts with regulatory requirements, cost avoidance, or otherpotential
costs.
OTHER ISSUES:
[Click Here and Type or Press Delete to Clear]
lGemvcs@citycWRequestfor Ordinance-Ma,2005.doc Office of the C
Resolution No. 372 8,4
'i--P 1 8 200?
Adopted: "-)-,
Maker of Motion:
Seconded: Amtr4oyq
Voice Vote:
MEMBERS AYES NAYS ABSTAIN ABSENT
Ms. Anderson
Mr.Evans
Mr. Fey
Ms. Ladenburg
Mr. Lonergan
Mr. Manthou
Mr. Stenger
Mr. Talbert
Mayor Baarsma
Roll Call Vote:
MEMBERS AYES NAYS ABSTAIN ABSENT
Ms. Anderson
Mr.Evans
Mr. Fey
Ms. Ladenburg
Mr. Lonergan
Mr. Manthou
Mr. Sten er
Mr. Talbert
Mayor Baarsma
k @citycWcityclkVbrmskresol. doc