SR 09-12-2023 5A
City Council
Report
City Council Meeting: September 12, 2023
Agenda Item: 5.A
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To: Mayor and City Council
From: Lori Gentles, Chief People Officer, Human Resources Department
Subject: Approval of Professional Services Agreement with Nationwide Retirement
Solutions, Inc. for Deferred Compensation Plan Administrator Services
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of no possibility of significant effect pursuant to Section
15061(b)(3) (Common Sense Exemption) of the California Environmental Quality
Act (CEQA) Guidelines; and
2. Authorize the City Manager to negotiate and execute an agreement with
Nationwide Retirement Solutions, Inc. (Nationwide) for deferred compensation
plan administrator services for a period of five years with two additional one-year
renewal options. This recommended award is made as an exception to the
competitive bidding process pursuant to Section 2.24.250 (b).
.
Summary
The City offers a 457(b) Deferred Compensation plan for permanent employees, an
OBRA-PST (Omnibus Budget Reconciliation Act - Part-time, Seasonal, Temporary)
Deferred Compensation Plan for as-needed / temporary employees, Post Employment
Health Plans (PEHP), and a 401(a) Money Purchase Pension Plan through Nationwide
Retirement Solutions, Inc. (Nationwide). The OBRA-PST plan provides a retirement
alternative to Social Security for non-benefited as-needed / temporary workers.
Discussion
Nationwide has provided these plans to City staff since 2008. As of July 2023, 5,542 full
and part time employees and retirees participate in the supplemental retirement plans.
Current employees have the option to contribute a percentage or flat dollar amount
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each pay period. Retirees and separated employees may continue to have funds on
deposit and manage their investment options.
As the current plan administrator, Nationwide provides plan administration,
recordkeeping, and extensive educational services. Educational services include on -site
and one-on-one sessions with City employees. Pending expiration of the current
agreement on December 31, 2023, the City requested that Nationwide update and
reduce their fees. As a result of these efforts, the City successfully negotiated a 34%
reduction in participant administration fees from 0.035% to 0.023%.
Executing a new agreement with Nationwide will provide service continuity and
administrative ease for staff and participants. Nationwide is a leader in the industry and
has a proven ability to cost effectively meet the City’s complex needs.
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Vendor Selection
Exception to Competitive Bidding
Staff recommends Nationwide to provide def erred compensation plan administrator
services as an exception to competitive bidding per Santa Monica Municipal Code
Section 2.24.250 (b). Competition does not reasonably exist because Nationwide
possesses the unique capability to meet the particular requirements of the solicitation.
Nationwide currently provides deferred compensation, PEHPs and Money Purchase
Pension Plans to 5,542 full- and part-time employees and retirees and has been
providing such services since 2008. Extending the term with Nationwide will maintain
continuity in service for the over 5,000 current and past employees that utilize these
plans. Further, it is unlikely that completing a competitive procurement process would
result in cost-competitive proposals from other sources, particularly given that
Nationwide agreed to a 34% reduction in participant administration fees, and
Nationwide has agreed to continue to provide extensive educational services, including
on-site and one-on-one sessions with City employees.
Based on Nationwide’s continued ability to successfully provide the full scope of
services needed to maintain a positive plan participant experience, continuity in HR
operations, and a 34% reduction in participant fees, staff recommends a contract with a
five-year term with two one-year renewal options (for a total 7-year contract).
Environmental Impact
The agreement for a deferred compensation plan administrator is exempt pursuant to
Section 15061(b)(3) (Common Sense Exemption) of the California Environmental
Quality Act (CEQA) Guidelines, which states that CEQA does not apply, where it can be
seen with certainty that there is no possibility that the activity in question may have a
significant effect on the environment. The agreement would provide administrative
services to the City and would not result in physical effects. No further environmental
review is necessary.
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Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of the
recommended action. All fees relating to the services are borne by plan participants, not
the City.
Prepared By: Mark Brower, Deputy Director
Approved
Forwarded to Council
Attachments:
A. OAKS Signed 8-22-23
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Please attach additional pages if more space is required.
CITY OF SANTA MONICA
OAKS INITIATIVE NOTICE
NOTICE TO APPLICANTS, BIDDERS, PROPOSERS
AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS,
OR OTHER BENEFITS FROM THE CITY OF SANTA MONICA
Santa Monica’s voters adopted a City Charter amendment commonly known as
the Oaks Initiative. The Oaks Initiative requires the City to provide this notice and
information about the Initiative’s requirements. You may obtain a full copy of the Initiative’s
text from the City Clerk.
This information is required by City Charter Article XXII—Taxpayer Protection. It
prohibits a public official from receiving, and a person or entity from conferring, specified
personal benefits or campaign advantages from a person or entity after the official votes,
or otherwise takes official action, to award a “public benefit” to that person or entity. The
prohibition applies within and outside of the geographical boundaries of Santa Monica.
All persons or entities applying or receiving public benefits from the City of Santa
Monica shall provide the names of trustees, directors, partners, and officers, and names
of persons with more than a 10% equity, participation or revenue interest. An exception
exists for persons serving in those capacities as volunteers, without compensation, for
organizations exempt from income taxes under Section 501(c)(3), (4), or (6), of the
Internal Revenue Code. However, this exception does not apply if the organization is a
political committee or controls political committees. Examples of a “public benefit” include
public contracts to provide goods or services worth more than $25,000 or a land use
approval worth more than $25,000 over a 12-month period.
In order to facilitate compliance with the requirements of the Oaks Initiative, the City
compiles and maintains certain information. That information includes the name of any
person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an
entity, rather than an individual person, the information includes the name of every person
who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent
interest in the entity. Therefore, if you are seeking a “public benefit” covered by the Oaks
Initiative, you must supply that information on the Oaks Initiative Disclosure Form. This
information must be updated and supplied every 12 months.
DocuSign Envelope ID: F5EEE526-BF65-46BE-BB52-DB3D85514B01
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Packet Pg. 17 Attachment: OAKS Signed 8-22-23 (5890 : Deferred Compensation Administration Agreement)
Please attach additional pages if more space is required.
CITY OF SANTA MONICA
OAKS INITIATIVE DISCLOSURE FORM
In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles
and maintains certain information. That information includes the name of any person or persons
who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an
individual person, the information includes the name of every person who is: (a) trustee, (b)
director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity.
Public benefits include:
1. Personal services contracts in excess of $25,000 over any 12-month period;
2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12-month
period;
3. Purchase, sale or lease of real property to or from the City in excess of $25,000 over a 12-
month period;
4. Non-competitive franchise awards with gross revenue of $50,000 or more in any 12-month
period;
5. Land use variance, special use permit, or other exception to an established land use plan,
where the decision has a value in excess of $25,000;
6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12-month
period; or
7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12-month
period.
Name(s) of persons or entities receiving public benefit:
Name(s) of trustees, directors, partners, and officers:
Name(s) of persons with more than a 10% equity, participation, or revenue interest:
Prepared by: ____________________________Title: __________________________
Signature: ______________________________________ Date: ________________
Email: ____________________________________ Phone: ____________________
Nationwide Retirement Solutions
Kirt Walker -Chief Executive Officer
John Carter -President &COO,NW Financial
Timothy Frommeyer -EVP,Chief Financial Officer
N/A
Catherine Moore AVP Operations
moorek3@nationwide.com 614-435-6998
DocuSign Envelope ID: F5EEE526-BF65-46BE-BB52-DB3D85514B01
8/22/2023
5.A.a
Packet Pg. 18 Attachment: OAKS Signed 8-22-23 (5890 : Deferred Compensation Administration Agreement)