TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Javier Carcamo, Finance Director
PREPARED BY: Chauntal Anderson, Purchasing and Contracts Coordinator
SUBJECT:
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Agreement with GovInvest, Inc.
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RECOMMENDATION
recommendation
Authorize a three-year software licensing agreement with GovInvest, Inc.;
Authorize the City Manager to execute all necessary documents for a period of three years;
Authorize the City Council to waive the bidding requirements; and
Appropriate additional funding in the Fiscal Years 2023/24 and 2024/25 Operating Budget.
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PRIOR ACTION/VOTE
None.
CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.
BACKGROUND
GovInvest offers financial forecast solutions that are designed specifically for local governments to analyze and run real-time analyses. In April 2019, the City of Murrieta (City) entered into a three-year agreement with GovInvest, Inc. for the use of the standard pension module and the total liability calculator. Since 2019, the (City) has utilized GovInvest financial forecast solutions for pension, Other-Post Employment Benefits (OPEB), and labor costing. GovInvest services include the preparation of OPEB’s actuarial valuation report as required by Government Accounting Standard Board Statement No. 75.
Over the years, GovInvest financial forecast solutions have paid for themselves by saving time and costs by alleviating the enormous tasks of assessing and forecasting pension costs and unfunded liability, preparing the OPEB actuarial valuation report, and automating the labor costing process.
In February 2022, the City entered into a new two-year agreement with GovInvest, Inc. for the use of the standard pension module, other post-employment benefits module, labor costing module for the total liability calculator, and the OPEB module that includes GASB 75 full valuation and roll forward functions, however, upon execution, they noticed that the calculation for the fire pension was missing from the proposal. A first amendment was made in April 2022 to include the calculation of the fire pension, which increased the annual cost. No other changes were made to the original agreement apart from this addition. The current agreement is set to expire on April 15, 2024.
The Finance Department intends to enter into a new three-year agreement with GovInvest, Inc. at the same rates as the previous agreement. The pricing is broken down by modules, including CPI or a 3% increase annually, whichever is higher.
Murrieta Municipal Code Section 3.08.280 allows for exceptions to the competitive bidding process. While evaluating available options, Finance staff determined that GovInvest, Inc. provides a one-of-a-kind software solution. Upon approval, the City Council acknowledges that the bidding process would be deemed inefficient, impractical, and unnecessary to procure these services.
FISCAL IMPACT
The total cost related to this agreement is estimated to be $89,250. The annual cost of this service is $28,875 in year one and will increase each year by the greater of the U.S. CPI or 3%. This expenditure is currently budgeted for in account 1102600-62160 for Fiscal Year 2023/24 and Fiscal Year 2024/25. A budget appropriation of $350 is being requested for Fiscal Year 2023/24, and $560 is being requested for Fiscal Year 2024/25. The final year of this agreement will be included in the next Biennial budget.
ATTACHMENTS
1. Agreement between GovInvest, Inc. and the City