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HomeMy WebLinkAboutBartel Associates, LLC - 2015-12-21Dept ID FN15-019 Page 1 of 2 Meeting Date 12/21/2015 �W*04� *F-o CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION MEETING DATE: 12/21/2015 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A Wilson, City Manager PREPARED BY: Lori Ann Farrell Harrison, Director of Finance SUBJECT: Approve and authorize execution of a Professional Services Contract with Bartel Associates, LLC, in the amount of $126,200 to perform actuary consulting services Statement of Issue City Council approval is requested to approve and authorize a professional services contract with Bartel Associates, LLC, in the amount of $126,200 over a three-year period, to perform actuarial services for the City's Supplemental Retirement and Retiree Medical Plans and to perform additional as needed actuarial services Financial Impact The total cost of the contract is $126,200 The first year cost of the contract is $51,300 Sufficient appropriation is available in FY 2015/16 for year one of the contract ($26,500 in business unit 70235202, $14,800 in business unit 70335203, and $10,000 in business unit 10040101) These services are necessary to comply with Governmental Accounting Standards Board (GASB) rules regarding government accounting for retirement benefits The remaining two years of the contract will be budgeted in FY 2016/17 and FY 2017/18 respectively Recommended Action Approve and authorize the Mayor and City Clerk to execute the "Professional Service Contract Between the City of Huntington Beach and Bartel Associates, LLC, for Actuary Consulting Services " Alternative Action(s) Do not approve the recommended action and direct staff accordingly Analysis The City of Huntington Beach has two plans which require actuarial valuations and reporting the City's Supplemental Retirement Plan, and the City's Retiree Medical Plan Under Governmental Accounting Standards Board (GASB) Statements 67 and 68 for the Supplemental Retirement plan and GASB Statement 75 for the Retiree Medical plan, the City of Huntington Beach is required to obtain an independent actuarial valuation report from an outside consultant The actuarial reports are necessary to properly disclose the assets and liabilities for these plans and to prepare the City's Comprehensive Annual Financial Report and achieve a clean (or unmodified) opinion from the City's Independent Auditors Item 9. - I HB -122- Dept ID FN15-019 Page 2 of 2 Meeting Date 12/21/2015 Staff sent out a Request for Proposals (RFP) for actuary services for the City's Supplemental Retirement and Retiree Medical Plans to actuaries who had requested to be on a bidders' list or were listed on the California Society of Municipal Finance Officers' website In addition, the RFP was posted on the City's website Three proposals were received The actuary firms were asked to submit cost proposals for three years of actuarial services for the City's Supplemental Retirement and Retiree Medical Plans The not -to -exceed cost proposals were as follows Name 3 Year Cost Milliman $110,000 Bartel Associates, LLC $ 96,200 Govinvest $ 64,500 Staff analyzed and reviewed all three proposals based on a variety of factors including the firm's references, responsiveness to the RFP, qualifications, relevant experience, and resumes of key staff to be assigned on the engagement Staff is recommending Bartel Associates, LLC, to perform actuary services for the City of Huntington Beach given the breadth and depth of their experience performing these services for government agencies throughout California, and superior feedback from their references It is also recommended that the scope of work include additional as -needed actuarial services Additional actuarial services may be necessary to ensure the City can properly plan to fund and pay down the City's CalPERS plans amidst future changes in discount rates, actuarial assumptions, and market fluctuations An amount of $30,000 has been added to the original proposed cost to address this potential need for a total not -to -exceed amount of $126,200 for the three year contract Environmental Status Not Applicable Strategic Plan Goal Strengthen economic and financial sustainability Attachment(s) 1 Professional Services Agreement with Bartel Associates, LLC 2 Certificate of Insurance HB -123- Item 9. - 2 PROFESSIONAL SERVICES CONTRACT BETWEEN THE CITY OF HUNTINGTON BEACH AND BARTEL ASSOCIATES, LLC FOR ACTUARY CONSULTING SERVICES THIS AGREEMENT ("Agreement") is made and entered into by and between the City of Huntington Beach, a municipal corporation of the State of California, hereinafter referred to as "CITY," and Bartel Associates, a Limited Liability Corporation hereinafter referred to as "CONSULTANT" WHEREAS, CITY desires to engage the services of a consultant to perform actuary services for the City's Supplemental Retirement and Retiree Medical Plans and to perform additional as needed actuarial services, and Pursuant to documentation on file in the office of the City Clerk, the provisions of the Huntington Beach Municipal Code, Chapter 3 03, relating to procurement of professional service contracts have been complied with, and CONSULTANT has been selected to perform these services, NOW, THEREFORE, it is agreed by CITY and CONSULTANT as follows 1 SCOPE OF SERVICES CONSULTANT shall provide all services as described in Exhibit "A," which is attached hereto and incorporated into this Agreement by this reference These services shall sometimes hereinafter be referred to as the "PROJECT " CONSULTANT hereby designates John E Bartel who shall represent it and be its sole contact and agent in all consultations with CITY during the performance of this Agreement 2 CITY STAFF ASSISTANCE CITY shall assign a staff coordinator to work directly with CONSULTANT in the performance of this Agreement agree/ surfnet/professional svcs mayor 1 of 11 10/12 3. TERM; TIME OF PERFORMANCE Time is of the essence of this Agreement. The services of CONSULTANT are to commence on V)5U4!?6g::1L 2/ , 20_LS' (the "Commencement Date"). This Agreement shall automatically terminate three (3) years from the Commencement Date, unless extended or sooner terminated as provided herein. All tasks specified in Exhibit "A" shall be completed no later than 3 years from the Commencement Date The time for performance of the tasks identified in Exhibit "A" are generally to be shown in Exhibit "A." This schedule may be amended to benefit the PROJECT if mutually agreed to in writing by CITY and CONSULTANT. In the event the Commencement Date precedes the Effective Date, CONSULTANT shall be bound by all terms and conditions as provided herein 4. COMPENSATION In consideration of the performance of the services described herein, CITY agrees to pay CONSULTANT on a time and materials basis at the rates specified in Exhibit "B," which is attached hereto and incorporated by reference into this Agreement, a fee, including all costs and expenses, not to exceed One Hundred Twenty Six Thousand Two Hundred Dollars ($126,200) 5. EXTRA WORK In the event CITY requires additional services not included in Exhibit "A" or changes in the scope of services described in Exhibit "A," CONSULTANT will undertake such work only after receiving written authorization from CITY Additional compensation for such extra work shall be allowed only if the prior written approval of CITY is obtained 6. METHOD OF PAYMENT CONSULTANT shall be paid pursuant to the terms of Exhibit "B." agree/ surfnet/professional svcs mayor 2 of 11 10/12 7. DISPOSITION OF PLANS, ESTIMATES AND OTHER DOCUMENTS CONSULTANT agrees that title to all materials prepared hereunder, including, without limitation, all original drawings, designs, reports, both field and office notices, calculations, computer code, language, data or programs, maps, memoranda, letters and other documents, shall belong to CITY, and CONSULTANT shall turn these materials over to CITY upon expiration or termination of this Agreement or upon PROJECT completion, whichever shall occur first These materials may be used by CITY as it sees fit. 8. HOLD HARMLESS CONSULTANT hereby agrees to protect, defend, indemnify and hold harmless CITY, its officers, elected or appointed officials, employees, agents and volunteers from and against any and all claims, damages, losses, expenses, judgments, demands and defense costs (including, without limitation, costs and fees of litigation of every nature or liability of any kind or nature) ansing out of or in connection with CONSULTANT's (or CONSULTANT's subcontractors, if any) negligent (or alleged negligent) performance of this Agreement or its failure to comply with any of its obligations contained in this Agreement by CONSULTANT, its officers, agents or employees except such loss or damage which was caused by the sole negligence or willful misconduct of CITY CONSULTANT will conduct all defense at its sole cost and expense and CITY shall approve selection of CONSULTANT's counsel. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as limitation upon the amount of indemnification to be provided by CONSULTANT 9. PROFESSIONAL LIABILITY INSURANCE CONSULTANT shall obtain and furnish to CITY a professional liability insurance policy covering the work performed by it hereunder. This policy shall provide coverage for CONSULTANT's professional liability in an amount not less than One Million Dollars agree/ surfnet/professional sves mayor 3 of 11 10/12 ($1,000,000.00) per occurrence and in the aggregate. The above -mentioned insurance shall not contain a self -insured retention without the express written consent of CITY; however an insurance policy "deductible" of Ten Thousand Dollars ($10,000 00) or less is permitted. A claims -made policy shall be acceptable if the policy further provides that A. The policy retroactive date coincides with or precedes the initiation of the scope of work (including subsequent policies purchased as renewals or replacements). B. CONSULTANT shall notify CITY of circumstances or incidents that might give rise to future claims. CONSULTANT will make every effort to maintain similar insurance during the required extended period of coverage following PROJECT completion. If insurance is terminated for any reason, CONSULTANT agrees to purchase an extended reporting provision of at least two (2) years to report claims ansing from work performed in connection with this Agreement. If CONSULTANT fails or refuses to produce or maintain the insurance required by this section or fails or refuses to furnish the CITY with required proof that insurance has been procured and is in force and paid for, the CITY shall have the right, at the CITY's election, to forthwith terminate this Agreement. Such termination shall not effect Consultant's right to be paid for its time and materials expended prior to notification of termination. CONSULTANT waives the right to receive compensation and agrees to indemnify the CITY for any work performed prior to approval of insurance by the CITY. 10 CERTIFICATE OF INSURANCE Prior to commencing performance of the work hereunder, CONSULTANT shall furnish to CITY a certificate of insurance subject to approval of the City Attorney evidencing the foregoing insurance coverage as required by this Agreement, the certificate shall: agree/ surfnet/professional svcs mayor 4 of 11 10/12 A provide the name and policy number of each carrier and policy; B. state that the policy is currently in force; and C shall promise that such policy shall not be suspended, voided or canceled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice; however, ten (10) days' prior written notice in the event of cancellation for nonpayment of premium CONSULTANT shall maintain the foregoing insurance coverage in force until the work under this Agreement is fully completed and accepted by CITY. The requirement for carrying the foregoing insurance coverage shall not derogate from CONSULTANT's defense, hold harmless and indemnification obligations as set forth in this Agreement CITY or its representative shall at all times have the right to demand the original or a copy of the policy of insurance. CONSULTANT shall pay, in a prompt and timely manner, the premiums on the insurance heremabove required. 11 INDEPENDENT CONTRACTOR CONSULTANT is, and shall be, acting at all times in the performance of this Agreement as an independent contractor herein and not as an employee of CITY. CONSULTANT shall secure at its own cost and expense, and be responsible for any and all payment of all taxes, social security, state disability insurance compensation, unemployment compensation and other payroll deductions for CONSULTANT and its officers, agents and employees and all business licenses, if any, in connection with the PROJECT and/or the services to be performed hereunder 12 TERMINATION OF AGREEMENT All work required hereunder shall be performed in a good and workmanlike manner. CITY may terminate CONSULTANT's services hereunder at any time with or without cause, and whether or not the PROJECT is fully complete. Any termination of this Agreement by CITY shall agree/ surfnet/professional svcs mayor 5 of 11 10/12 be made in writing, notice of which shall be delivered to CONSULTANT as provided herein. In the event of termination, all finished and unfinished documents, exhibits, report, and evidence shall, at the option of CITY, become its property and shall be promptly delivered to it by CONSULTANT. 13 ASSIGNMENT AND DELEGATION This Agreement is a personal service contract and the work hereunder shall not be assigned, delegated or subcontracted by CONSULTANT to any other person or entity without the prior express written consent of CITY If an assignment, delegation or subcontract is approved, all approved assignees, delegates and subconsultants must satisfy the insurance requirements as set forth in Sections 9 and 10 hereinabove 14 COPYRIGHTS/PATENTS CITY shall own all rights to any patent or copyright on any work, item or material produced as a result of this Agreement 15 CITY EMPLOYEES AND OFFICIALS CONSULTANT shall employ no CITY official nor any regular CITY employee in the work performed pursuant to this Agreement. No officer or employee of CITY shall have any financial interest in tlus Agreement in violation of the applicable provisions of the California Government Code. 16 NOTICES Any notices, certificates, or other communications hereunder shall be given either by personal delivery to CONSULTANT's agent (as designated in Section 1 hereinabove) or to CITY as the situation shall warrant, or by enclosing the same in a sealed envelope, postage prepaid, and depositing the same in the United States Postal Service, to the addresses specified below. CITY and CONSULTANT may designate different addresses to which subsequent notices, certificates or agree/ surfnet/professional sves mayor 6 of 11 10/12 other communications will be sent by notifying the other parry via personal delivery, a reputable overnight carrier or U. S. certified mail -return receipt requested. TO CITY: City of Huntington Beach ATTN: Dahle Bulosan 2000 Main Street Huntington Beach, CA 92648 17 CONSENT When CITY's consent/approval TO CONSULTANT Bartel Associates, LLC ATTN: John E Bartell 411 Borel Ave., Ste 101 San Mateo, CA 94402 is required under this Agreement, its consent/approval for one transaction or event shall not be deemed to be a consent/approval to any subsequent occurrence of the same or any other transaction or event 18 MODIFICATION No waiver or modification of any language in this Agreement shall be valid unless in writing and duly executed by both parties 19 SECTION HEADINGS The titles, captions, section, paragraph and subject headings, and descriptive phrases at the beginning of the various sections in this Agreement are merely descriptive and are included solely for convenience of reference only and are not representative of matters included or excluded from such provisions, and do not interpret, define, limit or describe, or construe the intent of the parties or affect the construction or interpretation of any provision of this Agreement 20 INTERPRETATION OF THIS AGREEMENT The language of all parts of this Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against any of the parties. If any provision of this Agreement is held by an arbitrator or court of competent jurisdiction to be unenforceable, void, illegal or invalid, such holding shall not invalidate or affect the remaining agree/ surfnet/professional svcs mayor 7 of 11 10/12 covenants and provisions of this Agreement. No covenant or provision shall be deemed dependent upon any other unless so expressly provided here As used in this Agreement, the masculine or neuter gender and singular or plural number shall be deemed to include the other whenever the context so indicates or requires. Nothing contained herein shall be construed so as to require the commission of any act contrary to law, and wherever there is any conflict between any provision contained herein and any present or future statute, law, ordinance or regulation contrary to which the parties have no right to contract, then the latter shall prevail, and the provision of this Agreement which is hereby affected shall be curtailed and limited only to the extent necessary to bring it within the requirements of the law. 21. DUPLICATE ORIGINAL The original of this Agreement and one or more copies hereto have been prepared and signed in counterparts as duplicate originals, each of which so executed shall, irrespective of the date of its execution and delivery, be deemed an original. Each duplicate original shall be deemed an original instrument as against any parry who has signed it 22. IMMIGRATION CONSULTANT shall be responsible for full compliance with the immigration and naturalization laws of the United States and shall, in particular, comply with the provisions of the United States Code regarding employment verification. 23. LEGAL SERVICES SUBCONTRACTING PROHIBITED CONSULTANT and CITY agree that CITY is not liable for payment of any subcontractor work involving legal services, and that such legal services are expressly outside the scope of services contemplated hereunder CONSULTANT understands that pursuant to Huntington Beach City Charter Section 309, the City Attorney is the exclusive legal counsel for agree/ surfnet/professional svcs mayor 8 of 11 10/12 CITY; and CITY shall not be liable for payment of any legal services expenses incurred by CONSULTANT. 24 ATTORNEY' S FEES In the event suit is brought by either party to construe, interpret and/or enforce the terms and/or provisions of this Agreement or to secure the performance hereof, each party shall bear its own attorney's fees, such that the prevailing parry shall not be entitled to recover its attorney's fees from the nonprevailing party. 25 SURVIVAL Terms and conditions of this Agreement, which by their sense and context survive the expiration or termination of this Agreement, shall so survive. 26 GOVERNING LAW This Agreement shall be governed and construed in accordance with the laws of the State of California. 27. SIGNATORIES Each undersigned represents and warrants that its signature herembelow has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify CITY fully for any injuries or damages to CITY in the event that such authority or power is not, in fact, held by the signatory or is withdrawn 28 ENTIRETY The parties acknowledge and agree that they are entering into this Agreement freely and voluntarily following extensive arm's length negotiation, and that each has had the opportunity to consult with legal counsel prior to executing this Agreement. The parties also acknowledge and agree that no representations, inducements, promises, agreements or warranties, oral or otherwise, have been made by that parry or anyone acting on that party's behalf, which are not embodied in this agree/ surfnet/professional svcs mayor 9 of 11 10/12 Agreement, and that that party has not executed this Agreement in reliance on any representation, inducement, promise, agreement, warranty, fact or circumstance not expressly set forth in this Agreement This Agreement, and the attached exhibits, contain the entire agreement between the parties respecting the subject matter of this Agreement, and supersede all prior understandings and agreements whether oral or in writing between the parties respecting the subject matter hereof 29. EFFECTIVE DATE This Agreement shall be effective on the date of its approval by the City Council. This Agreement shall expire when terminated as provided herein. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized officers. agree/ surfnet/professional svcs mayor 10 of 11 10l12 CONSULTANT, COMPANY NAME Bartel Associates, LLC By pant name ITS: (circle one) Cha=OEresiders ce President AND By print name ITS. (cucle on ecret CluefFmancial Officer/Asst Secretary - Treasurer CITY OF HUNTINGTON BEACH, a municipal corporation of the State of INIT TED D APPROVED: Director of Finance APPROVED City Attorney agree/ surfnet/professional svcs mayor 11 Of I l 10/12 EXHIBIT "A" A. STATEMENT OF WORD: (Narrative of work to be performed) Retiree Medical Plan Employees who retire directly from the City under CaIPERS with 10 or more years of full-time continuous City service or under an industrial disability retirement receive a City cash subsidy under the Retiree Medical Subsidy Program equal to $121 per month with 10 years of City service at retirement, grading up to $344 per month for 25 or more years of City service at retirement. The City cash subsidy is paid until the retiree and spouse reach age 65 or become eligible for Medicare, and the subsidy amount has never been increased Miscellaneous employees who retire directly from the City under Ca1PERS can participate in the City's healthcare plans before age 65 and in the City's Medicare supplement plans after age 65 Safety retirees who retire directly from the City under Ca1PERS can participate in the CalPERS healthcare program (PEMHCA) and receive a minimum cash subsidy for life equal to the PEMHCA minimum contribution using the 5% unequal method The cash subsidy under the Retiree Medical Subsidy Program, if any, is offset by the PEMHCA minimum contribution. The City had 851 active employees eligible for healthcare benefits and 272 retirees receiving healthcare benefits in 2013 as shown in the actuarial valuation report. The City is currently prefunding the plan through the California Employers' Retiree Benefit Trust (CERBT) Asset Strategy #3 Rather than the maximum ARC period specified by GASB 45, the City has chosen to fund the OPEB liability more quickly, amortizing the 9/30/2012 liability over a fixed 10 year period. Retirement Supplement Plan The City participates in Ca1PERS providing Miscellaneous employees the 2.5%@55 benefit and Safety employees the 3%@50 benefit, with new Members hired on or after January 1, 2013 receiving the required PEPRA formulas The City provides a pension supplement equal to the difference between the Ca1PERS unmodified allowance and the optional form of benefit elected by the retiree for employees hired before 1998 (actual date differs by bargaining group) for the life of the retiree There were 267 active employees and 673 retirees eligible for the Retirement Supplement Plan as of September 30, 2013 as shown in actuarial valuation report The City is currently prefunding the plan through a Trust, and reports under GASB 67 as a fiduciary fund in the City's CAFR Rather than the maximum ARC period specified by GASB 27, the City has chosen to fund the Retirement Supplement Plan liability more quickly, amortizing the 9/30/2012 liability over a fixed 10 year period. As Needed Actuarial Analysis The Consultant will perform as needed Actuarial Analysis for the Retiree Medical Plan and Retiree Supplemental Plan in addition to the actuarial reports discussed in section B. The Consultant will also perform as needed Actuarial Analysis for the City's Ca1PERS retirement plan for both Safety and Miscellaneous employees B. CONSULTANT'S DUTIES AND RESPONSIBILITIES The Consultant with provide the City with the following actuary reporting options: Option 1: 930-16 931V16 9 T-W, 15 Update 123V16 R'30117 030/17 930!15 U?&Ir 1261=17 930-18 �� is 930117 Update MaL Is 9:3019 930 19 9430 '1',7 Update 113 1, 19 9,30 "M 930co 930119 1t?dale 12,3120 v6d GASIB ap Wh WF pyjur. 1, n- 93016 2 'vT A 613015 N�_ 3-331 -16 9 3017 N___ A 630155 NA 3.1 -16 930118 9,30118 930117 UTdate 1213M8 93-019 91301-0 934r17 Update 11- 3 11 -0 93W20 930�20 9130,q9 Update 12311,20 Option 2: 93015 930:155 930'15 Include in FmH 331,16 9:30,16 9-3016 -q3D'15 UTdate 1 9,30117 93&,17 93W17 Include in Full 33 1° 18 9-30:18 930C1R 93017 UVdate 1^ 31,19 93019 93&19 k3& 19 luclude in Full 3 -3 1,20 93020 93W'20 9-3019 Update 12 31 '2') 0 -IV 930' - < NIA 630,15 KIA 12W16 9 30 -: 7 M-A 6341,15 N.A 2-29:16 930-18 930119 930-17 Include in Full 123VIS A-30-1-0 9130,19 930,19 Indude in Full 33120 9130,11,20 93020 9,30,19 Update 12 3120 The City will select an option after further discussion with the City's Auditors. Project Approach The Consultant will use the following approach to complete the City's Actuary Reports There will be two levels to the actuarial valuations. The first level is technical compliance with GASB rules The second level goes beyond reporting and disclosure issues and assists the City in developing an appropriate — for the City — funding policy for each plan, while also providing an understanding of GASB rules, actuarial methods and assumptions, and the financial statement impacts. The Consultant's actuarial valuation process includes the following steps: • Data Collection - For the Retiree Medical Plan, the City will provide documentation of plan provisions, City healthcare providers and premiums, contribution policy, asset information, and employee census information including individual plan and coverage elections Census information will include Safety retirees over age 65 receiving the PEMHCA minimum benefit only. For the Retirement Supplement Plan, the City will provide the plan provisions, contribution policy, asset information, and employee census information including benefit payment information for retirees. • Data Reconciliation — the Consultant will review the plans and participant data and provide a list of any questions • Methods & Assumptions — the Consultant will recommend the actuarial assumptions and funding methods with the City's input The Consultant will meet with the City for an initial planning meeting to review the plan designs, participant data, actuarial assumptions, and funding methods at its request. The Consultant understands that the City may request information on alternative funding methods and assumptions. • Implied Subsidy — In accordance with the updated Actuarial Standards of Practice No 6, the Implied Subsidy will be included for all benefits in the retiree medical plan. • Valuation Processing — the Consultant will prepare the actuarial valuations using ProVal software, a comprehensive and widely used and respected retirement benefit valuation system developed by Winklevoss Technologies, LLC. The Consultant's procedures for quality control include the checking of computer programs and calculations by a second actuary and the review of results and presentation materials by senior actuaries. The Consultant will keep client information secure by encrypting all files kept on our computers • Preliminary Results Meeting — the Consultant will meet with the City to review the preliminary valuation results. The Consultant's preliminary results presentation will be in a discussion outline format. The OPEB valuation will include a benchmark survey comparing the City's GASB 45 information with other agency GASB 45 plan studies prepared by Bartel Associates • Valuation Report — Following the preliminary results meeting, the Consultant will make any agreed -upon changes to the valuations and produce a final, certified version of the discussion outline. • Ca1PERS Certification - Since the City pre -funds its Retiree Medical Plan through CERBT, it will need to provide an actuarial certification, a funding policy certification, and an Excel spreadsheet containing valuation information to Ca1PERS in addition to a valuation report CERBT results are required as of June 30, rather than September 30. The Consultant will prepare this information as part of the OPEB valuation process CERBT may change its requirements beginning with the GASB 74 effective date of June 30, 2017. The Consultant will be able to provide any new CERBT information. Actuarial Valuation Discussion Outline The Consultant will provide actuarial valuation discussion outlines that are clear, concise and understandable to nonactuaries The outlines will include: • Summary of plan provisions • Summary of the data used for the valuation: o employee counts and average ages, service, pay, etc by employee group o active age/service distributions o active and retiree coverage elections by healthcare plan for the OPEB valuation o retiree coverage (single, 2-parry, family) statistics by age for the OPEB valuation • Summary of actuarial methods and assumptions, including the City's funding policy • Estimated gain/loss analysis showing the reasons for changes in the Actuarial Accrued Liability from the prior valuation. • GASB accounting information, including benefit costs and obligations as outlined below. • Comparison of the City's costs and obligations with that of other agencies in our database for the OPEB valuation The discussion outline will include the following GASB information: • Actuarial value of benefits for the Schedule of Funding Progress including: o Present Value of Future Benefits o Actuarial Accrued Liability, broken down by active and retired employees o Plan Assets o Unfunded Actuarial Accrued Liability o Normal Cost o Expected Benefit Payments • Annual Required Contribution (ARC), as a dollar amount and as a percentage of payroll, identifying o Normal Cost o Amortization of the Unfunded Actuarial Accrued Liability • Annual OPEB and Pension Costs • Net OPEB and Net Pension Obligations. • A 10-year projection of the Net Obligation, City contributions, Annual Required Contributions, Annual Costs, and "pay-as-you-go" costs We can include a projection of benefit payments on a closed group basis for as many years as needed. GASB Statements 67, 68, 74 and 75 After the new GASB effective dates, September 30, 2015 for the Supplemental Plan and September 30, 2018 for the OPEB plan, much of the GASB information listed above will change. The Consultant's reports under the new accounting standards will be issued or updated annually and will include the following, which provide all of the required actuarial information to comply with the new GASB statements: • Total pension/OPEB liability, fiduciary net position, net pension/OPEB liability • Reconciliation of net pension/OPEB liability • Sensitivity of net pension/OPEB liability to changes in discount/medical trend rates • Net pension/OPEB expense and details of calculation • Deferred inflows/outflows of resources, including tracking of recognized and unrecognized amounts • Comparison of Actuarially Determined Contribution to actual contributions • Illustration of "crossover" test for discount rate selection • Average expected future service period In addition, the Consultant's biennial valuations will calculate the Actuarially Determined Contribution for each plan, which will be similar to the current ARC using the City's selected funding policy. C. CITY'S DUTIES AND RESPONSIBILITIES The City's staff will be responsible for gathering the information outlined in Section 6 Data Requirements on the following page and be available on short notice to answer any questions we have after our review of the data provided. City staff will also be available for at least one meeting when the Consultant presents preliminary valuation results D. WORK PROGRAM / PROJECT SCHEDULE The following is the project schedule There will be an 8-week timeframe for the two actuarial valuations For example, for June 30, 2015 and September 30, 2015 valuations for the Retirement Supplement Plan and the Retiree Medical Plans, respectively, the projected work schedule would be as follows: Project iEstimated Dates i'z . I S d tFp} e -.` and accmate partidpant dam i,K T plan and asset mfo=tton to a C" oc .te ri 1 reguiling dam responds to an data Y. questions rais" i by Bartel - x .e EXHIBIT "B» Payment Schedule (Hourly Payment) A Hourly Rate CONSULTANT'S fees for such services shall be based upon the following hourly rate and cost schedule. e = 2016 Hourly Rate (E�el) S320 X-51ce Pies (Reddiag) S290 -Assistant Vice Prey S2 - S255 Assocate Act OMOCre) S185 S.L1 A Ads ��3 A ianalAza $110- 135 The hourly rates for 2016 are stated above and will increase each year with inflation Valuation fees will be charged in accordance with the schedules for Option 1 or Option 2 below, with hourly rates applying for projects outside the valuation scope. f h ring I - Retirement Supplement Plan7-�MTT?TM-1rTtM UP �I�M Clrttuf n 7 E Retireut tSupplenteur Phui leurte led.ical Pau Fees Fees Fees ��i Fiscal Year =i al Bare Full Val 'Update Val Bare Full Val Update Total 1 r17 ;30115 1-100 NN A 6302015 216-ioo 3 300 17118 2.100 2100 4200 -11&,19 9,30,17 I3_600 �A 9_30 20' 7 2 _100 'A 1-700 1L)0 300 2_300 a6D0 T0121 26_400 4_400 _OCt 4_40D 9_900 As Needed Actuarial Analysis will be charged at the same hourly rate noted above As Needed Actuarial Analysis will not exceed $30,000 for the three year contract term The total not to exceed amount for the three year contract term is $126,200. B Travel Charges for time during travel are not reimbursable Surfnet Exhibit B hourly 1 C. Billinl? 1. All billing shall be done monthly in fifteen (15) minute increments and matched to an appropriate breakdown of the time that was taken to perform that work and who performed it. 2. Each month's bill should include a total to date That total should provide, at a glance, the total fees and costs incurred to date for the project. 3. A copy of memoranda, letters, reports, calculations and other documentation prepared by CONSULTANT may be required to be submitted to CITY to demonstrate progress toward completion of tasks. In the event CITY rejects or has comments on any such product, CITY shall identify specific requirements for satisfactory completion. 4. CONSULTANT shall submit to CITY an invoice for each monthly payment due. Such invoice shall: A) Reference this Agreement, B) Describe the services performed, C) Show the total amount of the payment due; D) Include a certification by a principal member of CONSULTANT's firm that the work has been performed in accordance with the provisions of this Agreement, and E) For all payments include an estimate of the percentage of work completed Upon submission of any such invoice, if CITY is satisfied that CONSULTANT is making satisfactory progress toward completion of tasks in accordance with this Agreement, CITY shall approve the invoice, in which event payment shall be made within thirty (30) days of receipt of the invoice by CITY. Such approval shall not be unreasonably withheld If CITY does not approve an invoice, CITY shall notify CONSULTANT in writing of the reasons for non -approval and the schedule of performance set forth in Exhibit "A" may at the option of CITY be suspended until the parties agree that past performance by CONSULTANT is in, or has been brought into compliance, or until this Agreement has expired or is terminated as provided herein. 5. Any billings for extra work or additional services authorized in advance and in writing by CITY shall be invoiced separately to CITY Such invoice shall contain all of the information required above, and in addition shall list the hours expended and hourly rate charged for such time Such invoices shall be approved by CITY if the work performed is in accordance with the extra work or additional services requested, and if CITY is satisfied that the statement of hours worked and costs incurred is accurate Such approval shall not be unreasonably withheld. Any dispute between the parties concerning payment of such an invoice shall be treated as separate and apart from the ongoing performance of the remainder of this Agreement Surfnet Exhibit B hourly 2 ACC)R a® CERTIFICATE OF LIABILITY INSURANCE DA08/11/20D 5YY, THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER IMPORTANT If the certificate holder Is an ADDITIONAL INSURED, the polecy(les) must be endorsed If SUBROGATION IS WAIVED, sub)ect to the terms and conditions of the policy, certain policies may require an endorsement A statement on this certificate does not Confer rights to the certificate holder In lieu of such endorsement(s) PRODUCER 0181288 SARGEAN7 INSURANCE AGENCY, LLC 7740 PAINTER AVENUE, SUITE 210 WHITTIER CA 90602-2477 CONTACT NAME ROBERT B RICE, JR A/CNNo Ext (818) 561-2600 AIc No (818) 436-5988 E-MAADDRESS robert@sargeantlnsurance com INSURERS AFFORDING COVERAGE NAIC# INSURER A AMERICAN STATES INSURANCE COMPANY 19704 INSURED BARTEL-ASSOCIATES, LLC 411 BOREL AVENUE SUITE 101 SAN MATEO CA 94402-3525 INSURER B AMTRUST/ TECHNOLOGY INSURANCE CO 42376 INSURER INDIAN HARBOR INSURANCE COMPANY 36940 INSURER D INSURER E INSURER F COVERAGES CERTIFICATE NUMBER REVISION NUMBER THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS INSR LTR TYPE OF INSURANCE ADDL N POLICY NUMBER POLICY EFF MM/DD POLICY EXP MM/DD LIMBS GENERAL LIABILITY EACH OCCURRENCE $ 2,000,000 DAMAGE TO RENTED 1,000,000 X COMMERCIAL GENERAL LIABILITY 725-CC-124429-0 PREMISES Ea occurrence $ CLAIMS -MADE � OCCUR MED EXP (Any one person) $ 10,000 PERSONAL a ADV INJURY $ 2,000,000 A X 09/01/2015 09/01/2016 GENERAL AGGREGATE $ 4,000,000 GEN L AGGREGATE LIMIT APPLIES PER PRODUCTS - COMP/OP AGG $ 4,000,000 $ X POLICY PROJECT LOC AUTOMOBILE LIABILITY MB Ea acce den SINGLE LIMIT $ 1,000,000 BODILY INJURY (Per person) $ ANY AUTO BODILY INJURY (Per accident) $ A ALL OWNED SCHEDULED X 25-CC-124429-0 09/01/2015 09/01/2016 AUTOS AUTOS X NON -OWNED X PROPERTY DAMAGE Peraccdent $ HIRED AUTOS AUTOS UMBRELLA LIAB HCLAIMS-MADE OCCUR EACH OCCURRENCE $ AGGREGATE $ EXCESS LIAB DED RETENTION $ $ WORKERS COMPENSATION X WC STATU- OTH- TR IMIT ER AND EMPLOYERS LIABILITY N YIN E L EACH ACCIDENT $ 1,000,000 B ANY PROPRIETOR/PARTNER/EXECUTIVE N/A X TWC3494759 09/01/2015 09/01/2016 1,000,000 OFFICER/MEMBER EXCLUDED? (Mandatory in NH) E L DISEASE - EA EMPLOYEE $ E L DISEASE - POLICY LIMIT $ 1,000,000 If yes, descnbe under DESCRIPTION OF OPERATIONS below C MISC PROFESSIONAL LIABILITY MPP001715211 09/01/2015 09/01/2016 $2,000,000 PER CLAIM $4,000,000 ANNUAL AGGREGATE DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES (Attach ACORD 101, Additional Remarks Schedule, d more space is required) CERTIFICATE HOLDER IS HEREBY NAMED AS AN ADDITIONAL INSURED ON POLICY #25-CC-124429-0 AS RESPECTS TO OPERATIONS OF THE NAMED INSURED ONLY SEE ATTACHED FORMS CG8672 COVERAGE UNDER POLICY #25-CC-124429-0 IS PRIMARY AND NON-CONTRIBUTORY ABOVE ANY OTHER INSURANCE THE CERTIFICATE HOLDER(S) MAY CARRY 30 DAY NOTICE OF CANCELLATION APPROVED AS TO FORM � � , I / � e iq CERTIFICATE HOLDER CANCELLATION II A I / I . 1--V SHOULD ANY OF THE AB OV I� tC3ei¢tKHiYFORE CITY OF HUNTINGTON BEACH THE EXPIRATION DATE E F, TICS WILL BE DELIVERED IN ATTN DAHLE BULOSAN, CPA ACCOUNTING MANAGER ACCORDANCE WITH THE OLICY PROVISIONS 2000 MAIN STREET AUTHORIZED REPRESENTATIVE HUNTINGTON BEACH CA 92648 ROBERT B RICE, JR Rober- 8. k4cle) jr. ACORD 25 (2010105) ©1988-2010 ACORD CORPORATION All rights reserved The ACORD name and logo are registered marks of ACORD BARTEL-ASSOCIATES, LLC CG 86 72 10 02 POLICY NUMBER: 25-CC-124429-0 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED — OWNERS, LESSEES OR CONTRACTORS— COMPLETED OPERATIONS This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE Name of Person or Organization: City of Huntington Beach Location and Description of Completed Operations: All operations of the Named Insured Additional Premium: Included (If no entry appears above, information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement.) SECTION II — WHO IS AN INSURED is amended to include as an insured the person or organization shown in the Schedule, but only to the extent you are held liable due to "your work" at the location designated and described in the schedule of this endorsement for that insured and included in the "product -completed operations hazard". City ®f Huntington Beach 2000 Main Street ® Huntington Beach, CA 92648 (714) 536-5227 ® www.huntingtonbeachca.gov Office of the City Clerk Joan L. Flynn, City Clerk December 29, 2015 Bartel Associates, LLC Attn John E Bartell 411 Borel Ave , Ste 101 San Mateo, CA 94402 Dear Mr Bartell Enclosed for your records is a copy of the fully executed "Professional Services Contract Between the City of Huntington Beach and Bartel Associates, LLC for Actuary Consulting Services " Sincerely, Joan L Flynn, CIVIC City Clerk JF pe Enclosure Sister Cities Anjo, Japan ® Waitakere, New Zealand