2009-2042009-204
Resolution Authorizing the Purchase of Software in Accordance with Revised GASB
Standards of Municipal Reporting
At a regular meeting of the Town Board of the Town of Wappinger, Dutchess County,
New York, held at Town Hall, 20 Middlebush Road, Wappingers Falls, New York, on June 8,
2009.
The meeting was called to order by Christopher Colsey, Supervisor, and upon roll being
called, the following were present:
PRESENT: Supervisor - Christopher J. Colsey
Councilmembers
ABSENT:
William H. Beale
Vincent F. Bettina
Maureen McCarthy
Joseph P. Paoloni
The following Resolution was introduced by Councilwoman McCarthy and seconded by
Councilman Bettina.
WHEREAS, the Town of Wappinger Final Budget for Fiscal Year 2009, as adopted on
November 19, 2008, has provided for expenses related to increasing standards from the
Governmental Accounting Standards Board (GASB) in respect to Post Employment Benefits,
Other Than Pensions, statement No. 45, reporting from budget line A7110.105; and
WHEREAS, the Town Accountant researched and interviewed firms for the purpose of
this function and received two proposals reflecting one (1) year agreements; and
WHEREAS, the proposal from Harbridge Consulting group was $3,500.00 and the
proposal from Harbridge-Markoff was $4,000.00; and
WHEREAS, the Town Accountant further researched software packages to perform such
function on an in-house basis and was able to locate one provider; and
WHEREAS, a proposal for a two (2) year agreement was gained from Milliman, Inc., for
a software package that offers compliance with GASB 43 and GASB 45 governmental
accounting standards at a cost of Two Thousand, Eight Hundred Dollars ($2,800.00); and
WHEREAS, the Town Accountant requests authority to purchase the GASB help
software package from Milliman, Inc., a sole source provider, for the purpose of compliance with
the standards of GASB 45 and for such function to be handled on an in-house basis.
NOW, THEREFORE, BE IT RESOLVED, that the Town Accountant is hereby
authorized to purchase GASB help software from Milliman, Inc., 80 Lamberton Road, Windsor,
CT, 06095, at a cost not to exceed Two Thousand, Eight Hundred Dollars ($2,800.00) for a
contractual term of two (2) years for the purpose of compliance with the increased standards of
GASB 45 in respect to Post Employment Benefits Other Than Pensions from budget line
A7110.105.
The foregoing was put to a vote which resulted as follows:
CHRISTOPHER COLSEY, SUPERVISOR
Voting:
AYE
WILLIAM H. BEALE, COUNCILMAN
Voting:
AYE
VINCENT F. BETTINA, COUNCILMAN
Voting:
AYE
MAUREEN McCARTHY, COUNCILWOMAN
Voting:
AYE
JOSEPH P. PAOLONI, COUNCILMAN
Voting:
AYE
Dated: Wappingers Falls, New York
6/8/2009
The Resolution is hereby duly declared adopted.
TOHF4-C. MASTERSON, TOWN CLERK
IEngagement Fees
Our proposed fees for services outlined in the Scope of Services on page 4 of the proposal are
detailed below. These fees are all-inclusive of services to be provided.
Valuation under the Alternative Measurement Method - to provide
an estimate of postretirement health care benefits under GASB Statement $3,500/fiscal year
No. 45 for all employees and retirees (estimation to be completed by
Harbridge Consulting Group).
Our fees will be billed on a milestone basis following the schedule below, with payment due
' within 60 days of the invoice date.
Data request mailed to client: 25%
Data request completed and returned: 50%
Valuation results completed and sent to client: 25%
Timing
tWe anticipate summary valuation results will be completed within three weeks of receipt of
complete and accurate data from The Town. A final detailed valuation report will be completed
within two weeks of the completion of valuation results (within five weeks of receipt of complete
and accurate data).
Terms
This engagement is subject to mutual acceptance of terms of engagement by The Town and
Harbridge Consulting Group. Harbridge Consulting Group is not authorized to practice law;
therefore, this engagement does not include any legal services or assurances regarding legal
compliance. We recommend that The Town seek advice from its legal counsel regarding legal
issues.
Harbridge Consulting Group, LLC
6
00932183.
Part II — Fee for Actuarial Services:
Based on the size of your plan population, the fee to perform the required actuarial services for
the Town for FYE 2008 will be $4,000.
Part III - Additional Information
Item 1- References:
Annexed as Exhibit C are references for both government agency and post -employment benefit
plan clients.
Item 2 — Documentary Evidence to Practice in New York:
Annexed as Exhibit D.
Item 3 — Sample Data Request:
Enclosed. Danziger & Markhoff is flexible with regard to the formats of which we can accept
census data. Data can be provided in spreadsheet format (i.e., Excel), or in a regular text format
(i.e., space delimited). We can prepare a custom data layout if you wish.
Item 4 — Sample' Cony of Re,ori: Enclosed.
DANZIGER &_
MARKHOFF LLP
A t t o r n e y s a t L a w
Operations Center 5/28/2009 10:20 AM PAGE
Payment Page
AccountNumber. 6035 3225 0402 6943
Payment Due Date: 05/11/2009
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04/19/2009
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Previously Billed Open Items
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GASB 45 Statement and the Alternative Measurement Method
The Governmental Accounting Standards Board (GASB) issued statement No. 45, Accounting
and Financial Reporting by Employers for Post Employment Benefits other than Pensions, which
include retiree healthcare coverage subsidies and prescription benefits. The new reporting of
GASB 45 will require employers to value post employment benefits using accrual accounting
rather than a current obligation, pay-as-you-go approach. Post employment benefits include
health care benefits, life insurance benefits, and, in some cases, sick pay accrual. These
benefits arise from an exchange of salaries and benefits for employee services rendered and
constitute part of the compensation for those services. The goal of this statement is to measure
and recognize the cost of post employment benefits during the period when employees render
the services and to provide relevant information about obligations and the extent to which
progress is being made in funding these obligations.
Within the guidelines of GASB 45, sole employers in a plan with fewer than one hundred total
plan members (including employees in active service, terminated emp oyees who have
accumuTaTeU benefits but are not yet receiving them and retirees and beneficiaries currently
receiving benefits) have the option to apply a simplified aitemative measurement method
instead of obtaining actuarial valuations. `
Based on our understanding of The Town's postretirement health plan, the alternative
measurement method would provide significant cost savings in comparison to a "full" actuarial
valuation, and can provide a quick, cost efficient solution to quantifying The Town's commitment
to retiree health benefits.
GASBhelp Invoice
Fredrick Awino
Town Accountant
Town of Wappinger
20 Middlebush Road
Wappingers Falls, NY 12590
1lllilliman
Milliman, Inc.
Attn: GASBhelp
Tel +1 860 687.0148
Fax +1 860 687.2111
www.milliman.com
24 -month total access to the GASB 45 and GASB 43 tool for smaller government entities.
Total access to the website will begin on the day that payment is received.
Total Current Charges: $2800
PLEASE MAKE CHECKS PAYABLE TO:
Milliman, Inc.
& MAIL TO ATTN:
Anna Ortiz
Milliman, Inc.
80 Lamberton Rd.
Windsor, CT 06095
Promotional Code: abc123
2982-1