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Bartel Associates, LLC - 2019-05-20
emu.y l/i fiPPRO VG� 7-0 City of Huntington Beach File #: 19-563 MEETING DATE: 5/20/2019 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Lori Ann Farrell Harrison, Interim City Manager PREPARED BY: Gilbert Garcia, Chief Financial Officer Subject: Approve and authorize execution of a Professional Services Contract with Bartel Associates, LLC in the Amount of$122,200 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$122,200 over a three-year period, to perform actuary 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 $122,200. The first year cost of the contract is $5,000. Sufficient appropriation, $5,000 in account 10040101.69300, is available in FY 2018/19 for year one of the contract. The remaining term of the contract will be budgeted accordingly in the following business units: 70235202, 70335203, and 10040101. The table below is a breakdown of the annual costs. Account FY18/19 FY19/20 FY20/21 FY21/22 otal 70235202.69365 0 $24,700 $4,600 $26,000 55,300 70335203.69365 0 $15,700 $4,600 $16,600 36,900 10040101.69300 P5,000 P10,000 P10,000 P57000 30,000 Total 5,000 50,400 19,200 47,600 11227200 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 recommendation and direct staff accordingly. Analysis: The City of Huntington Beach has two plans which requires actuarial reporting, the City's City of Huntington Beach Page 1 of 3 Printed on 5/15/2019 RovuereZ 4,Legistar" File #: 19-563 MEETING DATE: 5/20/2019 Supplemental Retirement and Retiree Medical Plans. 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 report from an outside consultant. The actuary reports are necessary to prepare the City's Comprehensive Annual Financial Report and to achieve a clean (or unmodified) opinion from the City's Independent Auditors. Staff sent out a Request for Proposals (RFP) for actuary service for the City's Supplemental Retirement and Retiree Medical Plans to prospective 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 PlanetBids which can be accessed through the City's website. Two 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 City also requested hourly rates for as needed actuarial services to perform analysis for the Supplemental Retirement, Retiree Medical and CalPERS Retirement plans. The not to exceed cost proposals for the Supplemental Retirement and Retiree Medical plans were as follows (excludes as needed actuarial services): Name 3 Year Cost Bartel Associates, LLC $92,200 The Howard E. Nyhart Company, Inc. $70,600 Staff analyzed and reviewed both 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 to perform actuary services for the City of Huntington Beach based on their relevant experience, qualifications and references, as well as the other factors. As needed actuarial services are a necessary component to the contract. These services ensure that the City can properly analyze future changes to the City's Supplemental Retirement, Retiree Medical, and CalPERS plans' unfunded liabilities amidst future changes in discount rates, actuarial assumptions, and market fluctuations. $30,000 was added to Bartel Associates' not to exceed cost to address this need for a total not to exceed amount of$122,200 for the three-year contract. Environmental Status: Not applicable. Strategic Plan Goal: Strengthen long-term financial and economic sustainability Attachment(s): 1. Professional Services Contract Between The City of Huntington Beach And Bartel Associates, LLC For Actuary Consulting Services 2. Certificate of Insurance City of Huntington Beach Page 2 of 3 Printed on 5/15/2019 powere2U4,LegistarT'I File #: 19-563 MEETING DATE: 5/20/2019 3. Rating Sheets City of Huntington Beach Page 3 of 3 Printed on 5/15/2019 powere219y LegistarII 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: I. 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 Mary Elizabeth Redding who shall represent it and be its sole contact and agent in all consultations with CITY during the performance of this Agreement. agree/surfnet/professional svcs mayor I of I I 10/12 19-7498/201420 2. CITY STAFF ASSISTANCE CITY shall assign a staff coordinator to work directly with CONSULTANT in the performance of this Agreement. 3. TERM; TIME OF PERFORMANCE Time is of the essence of this Agreement. The services of CONSULTANT are to commence on May 20th , 20 19 (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 three (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 Two Thousand Dollars ($122,200). 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. agree/surfnet/professional sves mayor 2 of 11 10/12 19-7498/201420 6. METHOD OF PAYMENT CONSULTANT shall be paid pursuant to the terms of Exhibit "B." 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, 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) arising 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 agree/surfnebprofessional svcs mayor 3 of 11 10/12 19-7498/201420 CONSULTANT's professional liability in an amount not less than One Million Dollars ($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 arising 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. agree/surfnet/professional svcs mayor 4 of I I 10/12 19-7498/201420 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: 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 hereinabove 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. agree/surfnet/professional sves mayor 5 of 11 10/12 19-7498/201420 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 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 this 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 agree/surfnet/professional svcs mayor 6 of 11 10/12 19-7498/201420 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 other communications will be sent by notifying the other party via personal delivery, a reputable overnight carrier or U. S. certified mail-return receipt requested: TO CITY: TO CONSULTANT: City of Huntington Beach Bartel Associates, LLC ATTN: Dahle Bulosan ATTN: Mary Elizabeth Redding 2000 Main Street 411 Borel Ave., Ste, 101 Huntington Beach, CA 92648 San Mateo, CA 94402 17. CONSENT When CITY's consent/approval 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. agree/surfnet/professional svcs mayor 7 of 11 10/12 19-7498/201420 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 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 party 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. agree/surfnet/professional sves mayor 8 of 11 10/12 19-7498/201420 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 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 party 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 hereinbelow 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. agree/surfnet/professional svcs mayor 9 of 11 10/12 19-7498/201420 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 party or anyone acting on that party's behalf, which are not embodied in this 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 sves mayor 10 of 11 10/12 19-7498/201420 CONSULTANT, CITY OF HUNTINGTON BEACH, a Bartel Associates, LLC municipal corporation of the State of COMPANY NAME. California ak& Mayor By: 21 t print name City Clerk ITS: (circle one)Chairman/Presiden ice President AND INITIATED AND APPROVED: B qt 2�' CA y' 004q Or Director af Finance prin ame ITS: (circle one) ecre Chief Financial Officer/Asst. Secretary-Treasurer REVIEWED AND APPROVED: City Manager COUNTERPART APPROVED AS TO FORM: City Attorney +1 agree/surfnet/professional svcs mayor 11 of 11 10/12 EXHIBIT "A" A. STATEkNT OF WORK: (Narrative of work to be performed) B. CONSULTANT'S UTIES AND RESPONSIBILITIES: C. CITY'S DUTIES AND RESPONSIBILITIES: D. WORK PROGRAM/PROJECT SCHEDULE: t EXHIBIT A CONSULTANT, CITY OF HUNTINGTON BEACH, a Bartel Associates, LLC municipal corporation of the State of COMPANY NAME California ayor By: Q print name City Clerk Z�49/0//G7 zS ITS: (circle one)Chairman/PresidentNice President INITIATED AND APPROVED: AND By: Director 3f Finance print name ITS: (circle one) Secretary/Chief Financial Officer/Asst. S REVI ED AND APPROVED: Secretary-Treasurer City anager COUNTERPART APPROVED RM• 7 City Attorney µA' agree/surfnet/professional svcs mayor 11 of 11 10/12 EXHIBIT "A" A. STATEMENT OF WORK: (Narrative of work to be performed) B. CONSULTANT'S DUTIES AND RESPONSIBILITIES: C. CITY'S DUTIES AND RESPONSIBILITIES: D. WORK PROGRAM/PROJECT SCHEDULE: EXHIBIT A Exhibit A SECTION 1 BACKGROUND AND PROJECT SUMMARY The City of Huntington Beach The City of Huntington Beach is a general law City with a Council-Manager form of government. It is a full-service City,providing fire and police services, and employs approximately 1,000 people. Employee benefits include a CalPERS pension plan, retiree medical benefits, and a retirement Supplement plan. Retiree Medical Plan Employees who retire directly from the City under CalPERS 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 with 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. The subsidy amount has never been increased.New hires for some employee groups are not eligible for the cash subsidy benefit. Miscellaneous employees who retire directly from the City under CalPERS can participate in the City's healthcare plans before age 65. Safety retirees who retire directly from the City under CalPERS 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 886 active employees eligible for healthcare benefits and 245 retirees receiving healthcare benefits in 2017 as shown in the actuarial valuation report. The City is currently prefunding the plan through the California Employers' Retiree Benefit Trust(CERBT)Asset Strategy #2. The City has chosen to fund the OPEB liability quickly, amortizing the 9/30/2016 liability over a fixed 10-year period with gains and losses amortized over a fixed 10-year period. Retirement Supplement Plan The City participates in CalPERS 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 CalPERS 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 188 active employees and 704 retirees eligible for the Retirement Supplement Plan as of September 30, 2017 as shown in the actuarial valuation report. The City is currently prefunding the plan through a Trust, and reports under GASBS 67 as a fiduciary fund in the City's CAFR. The City has chosen to fund the Retirement Supplement Plan liability quickly, contributing $4 million directly in cash benefit payments until the unfunded liability is paid off. Bartel Associates, LLC 1 City of Huntington Beach SECTION 1 BACKGROUND AND PROJECT SUMMARY The City has also established a separate Trust with PARS and has set aside additional funds restricted to providing pension and OPEB benefits. Proposed Valuation Schedule The City has requested "full valuations" as of 6/30/2019 and 2021. The 6/30/2019 valuation will develop recommended contributions for 20/21 and 21/22 and will be the basis for GASB reporting for fiscal years 19/20 and 20/21. The 2021 valuation will develop recommended contributions for 22/23 and 23/24. The City has also requested interim "update valuations"which will be based on the 6/30/2019 valuations but will reflect updated asset information as of 6/30/2020 and will re-calculate recommended contributions for fiscal years 21/22 and 22/23. The tables below outline the timing of the projects. Retirement Supplement Plan Date of Actuarial Valuation (Rolled Actuarially GASBS 67 & GASBS 68 Forward to Determined 68 Reporting Measurement Reporting/ Contribution Final Report Report Type Date Date Measurement Date) FY Due Date GASBS 67 & 68 6/30/2019 6/30/2019 9/30/2017 n/a 8/31/2019 Full Valuation n/a n/a 6/30/2019 20/21& 21/22 10/31/2019 GASBS 67 & 68 6/30/2020 6/30/2020 6/30/2019 n/a 8/31/2020 Update Valuation n/a n/a 6/30/2019 21/22 & 22/23 10/31/2020 GASBS 67 & 68 6/30/2021 6/30/2021 6/30/2019 n/a 8/31/2021 Full Valuation n/a n/a 6/30/2021 22/23 & 23/24 10/31/2021 Retiree Medical Plan Date of Actuarial Actuarially GASBS 75 GASBS 75 Valuation (Rolled Determined Reporting Measurement Forward to Contribution Final Report Report Type Date Date Measurement Date) FY Due Date GASBS 75 6/30/2019 6/30/2018 6/30/2017 n/a 8/31/2019 Full Valuation n/a n/a 6/30/2019 20/21& 21/22 10/31/2019 GASBS 75 6/30/2020 6/30/2019 6/30/2019 n/a 8/31/2020 Update Valuation n/a n/a 6/30/2019 21/22 & 22/23 10/31/2020 GASBS 75 6/30/2021 6/30/2020 6/30/2019 n/a 8/31/2021 Full Valuation n/a n/a 6/30/2021 22/23 & 23/24 10/31/2021 Bartel Associates, LLC 2 City of Huntington Beach SECTION 2 METHODOLOGY Project Approach The actuarial valuation process we propose for the City of Huntington Beach goes beyond reporting and disclosure and assists the City in developing an appropriate—for the City— funding policy for each plan, while also providing an understanding of GASB and Ca1PERS rules, actuarial methods and assumptions, and the financial statement impacts. Our 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 - We will review the plans and participant data and provide a list of any questions. ■ Methods &Assumptions - We will recommend the actuarial assumptions and funding methods with the City's input. We can meet with the City for an initial planning meeting to review the plan designs, participant data, actuarial assumptions, and funding methods at its request. We understand 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 - We will prepare the actuarial valuations using ProVal software, a comprehensive and widely used and respected retirement benefit valuation system developed by Winklevoss Technologies, LLC. Our 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. We keep client information secure by encrypting all files kept on our computers in addition to other data security procedures. ■ Preliminary Results Meeting - We will meet with the City to review the preliminary valuation results for each full valuation. The presentation will be in a discussion outline format. The OPEB valuation will include a benchmark survey comparing the City's OPEB information with other agency OPEB plan studies prepared by Bartel Associates. This in-person meeting is designed to review all facets of the plans' design, operation, financial reporting and funding policy, including the actuarial methodology and calculations. This ensures that we are all "on the same page" so the valuation results accurately reflect the City's benefits and funding strategy. Bartel Associates, LLC 3 City of Huntington Beach SECTION 2 METHODOLOGY ■ Valuation Report—Following the preliminary results meeting,we 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 CAPERS in addition to a valuation report. We will prepare this information as part of the OPEB valuation process. We strongly believe that through our years of experience we have developed an efficient and effective process for preparing and presenting actuarial valuations. Implementation Plan and Client Satisfaction Bartel Associates has performed the last 4 actuarial valuations, and we will use a similar process for the proposed valuations. Projects of this type are managed through effective communication with client staff, to ensure that all required data is provided and that everyone understands exactly what data has been provided. We also work with you during the project to be sure all of our actuarial and financial assumptions are appropriate and meet your needs. For example, in the past we have analyzed alternate funding policies and actuarial assumptions. We will also be certain that the valuation schedule you select meets the City's and your auditor's needs. All decisions are documented in emails as well as in our preliminary and final reports. Finally, our preliminary results meeting discusses the valuations, its inputs and results in detail,to be sure all stakeholders are in agreement. Actuarial Valuation Discussion Outline Our actuarial valuation discussion outlines are clear, concise and understandable to non- actuaries. Our outlines for the full valuations include: ■ Summary of plan provisions ■ Detailed summary of the data used for the 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 ■ Comparison of the City's OPEB costs and obligations with that of other agencies in our database for the OPEB valuation ■ Actuarial liabilities, asset values and performance, and the unfunded liability ■ Actuarially Determined Contribution (ADC), as a dollar amount and as a percentage of payroll, identifying: • Normal Cost • Amortization of the Unfunded Actuarial Accrued Liability Bartel Associates, LLC 4 City of Huntington Beach SECTION 2 METHODOLOGY ■ A 10-year projection of the Actuarially Determined Contributions 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, and 75 Our separate accounting reports will be issued annually and will include the following, which provide all of the required actuarial information to comply with the 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 Project Schedule For the June 30, 2019 valuations our proposed work schedule is as follows: Project Steps Estimated Dates 1) The City provides complete and accurate participant data, September 1, 2019 plan and asset information to Bartel Associates. 2) Bartel associates responds to City with any questions September 7, 2019 regarding data 3) City responds to all data questions raised by Bartel September 15, 2019 Associates 4) Bartel Associates meets with the City to present October 15, 2019 preliminary valuation results 5) Bartel Associates provides final valuation results October 31, 2019 We can complete the valuation within this timeframe if all the information requested is provided quickly and accurately. City Staff The City's staff will be responsible for gathering the information outlined in Section 6 of this proposal and be available on short notice to answer any questions we have after our review of the data provided. City staff should also be available for at least one meeting when we present preliminary valuation results. Bartel Associates, LLC 5 City of Huntington Beach SECTION 3 STAFFING The project team that will be assigned to work with the City includes 4 actuaries and 1 analyst familiar with the City's retiree medical and retirement supplement benefits and who have worked with the City on the previous actuarial valuations: ■ Mary Beth Redding—Role: Actuary. • Mary Beth is a Fellow of the Society of Actuaries, a Member of the American Academy of Actuaries, a Fellow of the Conference of Actuaries, and an Enrolled Actuary. She has over 30 years of experience as a retirement consultant and has worked extensively for many years with pension and retiree healthcare plans. • Mary Beth will be the primary actuary and consultant. She will have overall responsibility for completion and accuracy of the actuarial valuations and reports including selection and appropriateness of cost method and assumptions. ■ Katherine Moore—Role: Actuarial Assistance and Project Manager. • Katherine is an Associate of the Society of Actuaries and a Member of the American Academy of Actuaries with over 11 years of actuarial experience, all with Bartel Associates. • Katherine will manage the project workflow and assist with valuation process including preparation of actuarial valuation reports. ■ Tina Liu—Role: Actuarial Assistance. • Tina is a Member of the American Academy of Actuaries, a Fellow of the Conference of Actuaries, and an Enrolled Actuary with over 15 years of actuarial experience. • Tina will provide assistance with census data analysis and manipulation, actuarial model coding and preparation of actuarial valuation results. ■ Michelle Shen—Role: Actuarial Analyst. • Michelle is an actuarial analyst with 10 years of experience at Bartel Associates. • Michelle will provide assistance with census data analysis and manipulation, actuarial model coding and preparation of actuarial valuation results. ■ John Bartel—Role: Resource. • John is an Associate of the Society of Actuaries, a Fellow of the Conference of Consulting Actuaries, and a Member of the American Academy of Actuaries. He has extensive public sector experience with OPEB and retirement consulting. He is also a member of the California Actuarial Advisory Panel. John was also a member of GASB's OPEB task force and assisted GASB in their updates. • As a Resource, John will be available to consult with the City. Bartel Associates, LLC 6 City of Huntington Beach SECTION 3 STAFFING The actuaries assigned to the project team are qualified to undertake the project in accordance with the Code of Professional Conduct of the American Academy of Actuaries and the Society of Actuaries and to issue Statements of Actuarial Opinion in accordance with the Qualification Standards of the American Academy of Actuaries. The project team may also include additional members of our actuarial analyst staff. We agree that if named staff members assigned to this project are changed during the contract period we will submit the new team members names and qualifications to the City for approval before beginning work. Bartel Associates, LLC 7 City of Huntington Beach 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: 2019 Hourly Team Mernber Rate Partner&Vice President(Redding) $290 Assistant Vice President 260 Associate Actuary(Liu,Moore) 210 Senior Actuarial Analyst 190 Actuarial Analyst(Shen) 155 Partner&President(Bartel) 330 The hourly rates for 2019 are stated above and will increase each year with inflation. Valuation fees will be charged in accordance with the schedules below, with hourly rates applying for projects outside the valuation scope. Supplemental Retirement Plan GASB Final Reporting Valuation Report Report Date Date Due Date Fees GASBS 67&68 6/30/19 9/30/17 8/31/19 $ 2,200 Full Valuation n/a 6/30/19 10/31/19 13,500 GASBS 67&68 6/30/20 6/30/19 8/31/20 2,300 Update Valuation n/a 6/30/19 10/31/20 2,300 GASBS 67&68 61130/21 6/30/19 8/3l121 2,400 Full Valuation n/a 6/30/21 10/31/21 14,200 Subtotal 36,900 Retiree Medical Plan GASB Final Reporting 'valuation Report Report Date Date Due Date Fees GASBS 75 6/30/19 6/30/17 8/31/19 $ 2,200 Full Valuation n/a 6/30/19 10/31/19 22,500 GASBS 75 6/30/20 6/30119 8/31120 2300 Update Valuation n/a 6/30/19 10/31/20 2.300 GASBS 75 6/30/21 6/30/19 8/31/21 2.400 Full Valuation n/a 6/30/21 10/31/21 23.600 Subtotal 55,300 Total $92.200 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 $122,200. Surfnet Exhibit B hourly 1 B. Travel. Charges for time during travel are not reimbursable C. Billing I. 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 Surfnet Exhibit B hourly 2 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 3 PROFESSIONAL SERVICES CONTRACT BETWEEN THE CITY OF HUNTINGTON BEACH AND BARTEL ASSOCIATES, LLC FOR ACTUARY CONSULTING SERVICES Table of Contents 1 Scope of Services.....................................................................................................1 2 City Staff Assistance................................................................................................2 3 Term; Time of Performance.....................................................................................2 4 Compensation ..........................................................................................................2 5 Extra Work...............................................................................................................2 6 Method of Payment..................................................................................................3 7 Disposition of Plans, Estimates and Other Documents ...........................................3 8 Hold Harmless .........................................................................................................3 9 Professional Liability Insurance.............................................................................4 10 Certificate of Insurance............................................................................................5 11 Independent Contractor............................................................................................6 12 Termination of Agreement.......................................................................................6 13 Assignment and Delegation......................................................................................6 14 Copyrights/Patents...................................................................................................7 15 City Employees and Officials..................................................................................7 16 Notices.........................................................................................7 17 Consent....................................................................................................................8 18 Modification.............................................................................................................8 19 Section Headings .....................................................................................................8 20 Interpretation of this Agreement..............................................................................8 21 Duplicate Original....................................................................................................9 22 Immigration...............................................................................................................9 23 Legal Services Subcontracting Prohibited................................................................9 24 Attorney's Fees..........................................................................................................10 25 Survival.....................................................................................................................10 26 Governing Law.........................................................................................................10 27 Signatories.................................................................................................................10 10 28 Entirety...................................................................................................................... 29 Effective Date.................................................................................I I DATE(MMIDD/YYYY) ACC)R" CERTIFICATE OF LIABILITY INSURANCE 09/11/2018 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 policy(ies)must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject 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 NAME:CT Cathy Service Van Wyke-Stahl FAXPHONE -2600 /C No ) -5988Sar eantlnsurance Agency,LLC. lAJCNo Ed• ( ) 818436 7740 Painter Avenue#210 E-MAIL INSURER(S)AFFORDING COVERAGE NAIC# Whittier CA 90602 INSURERA: Liberty Mutual Insurance 24082 INSURED INSURERB: EMPLOYERS PREFERRED INS.CO. 10346 INSURERC: Indian Harbor Insurance Co 36940 BARTEL ASSOCIATES,LLC INSURERD: 411 BOREL AVE STE 101 INSURER E: SAN MATEO CA 94402-3525 INSURERF: 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 PAD CLAIMS, INSR TYPE OF INSURANCE ADDL SUER pOUCY NUMBER MMIODYtYYYY M EFF MIODfYYYY LIMITS LTR 2,000,000.00 COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $ D MA 2,000,000,00 CLAIMS-MADE �OCCUR PREMISES Ea occurrence S MED EXP(Any one person) S 15,000,00 A Y BKS(19)57 29 73 74 09/01/2018 09101/2019 —PERSONAL&ADV INJURY $ 2,000,000.00 GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ 4,000,000.00 POLICY PRO-JECT LOC PRODUCTS-COMP/OP AGG $ 4,000,000.00 f1 S OTHER: COMBINED SINGLE LIMIT S 1,000,000.00 AUTOMOBILE LIABILITY Ea accident) ANY AUTO BODILY INJURY(Per person) S A OWNED SCHEDULED Y BAS(19)57297374 09/01/2018 09/01/2019 BODILY INJURY(Per accident) S AUTOS ONLY AUTOS PROPERTY DAMAGE I AUTOS ONLY AUTOS ONLY Per accident S S UMBRELLA LIAB OCCUR EACH OCCURRENCE 5 EXCESS LIAB CLAIMS-MADE AGGREGATE S QED I I RETENTIONS �/ H_ 5 WORKERS COMPENSATION X STATUTE I ER AND EMPLOYERS'LIABILITY Y I N ANYPROPRiETORIPARTNERiEXECUTIVE E.L.EACH ACCIDENT $ 1,ODO,000AO B OFFICERIMEMBEREXCLUDEI FN] NIA Y EIG2685705-00 09/01/2018 09/01/2019 (Mandatory In NH) E.L.DISEASE-EA EMPLOYEE 5 1,000,000.00 If yes,describe under E.L.DISEASE-POLICY LIMIT $ 1,000,000.00 DESCRIPTION OF OPERATIONS below -Each-Claim Professional Liability Annual Aggregate 5,000,000.00 p MPP001715214 09/04/2018 09/04/2019 DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES (ACORD 101,Additional Remarks.Schedule,may be attached If more space is required) CITY OF HUNTINGTON BEACH ITS OFFICERS,DIRECTORS,EMPLOYEES,AGENTS AND VOLUNTEERS ARE HEREBY NAMED AS AN ADDITIONAL INSURED BY CONTRACT ON POLICY#BKS(19)57297374 and BAS(19)57297374 AS RESPECTS TO TK$ MED INSURED ONLY, SEE CG2010,COVERAGE UNDER POLICY#BKS(19)57297374&BAS(19)57297374 IS PRIMARY AND N-CONTRIBUTORY ABOVE ANY OTHER INSURANCE THE CERTIFICATE HOLDER(S)MAY CARRY.30 DAY NOTICE OF CANCELLATION, M HAtLt MATES CITY ATTORIVEN* CITY OF HWi;;1t✓T0N UEACH CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN City of Huntington Beach` ACCORDANCE WITH THE POLICY PROVISIONS. ATTN:ACCOUNTING MANAGER AUTHORIZED REPRESENTATIVE 2000 MAIN STREET ide6L Huntington Beach CA 92648-2702 O 1988-2015 ACORD CORPORATION. All rights reserved. ACORD 25(2016103) The ACORD name and logo are registered marks of ACORD 242 POLICY NUMBER: BKS (19) 57 29 73 74 COMMERCIAL GENERAL LIABILITY CG20100413 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - OWNERS, LESSEES OR CONTRACTORS -- SCHEDULED PERSON OR ORGANIZATION This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE Name Of Additional Insured Person(s) Or Organ ization s Locations Of Covered Operations City of Huntington Beach, it's officials, officers, employees, agents and Volunteers. ALL LOCATIONS OF THE NAMED INSURED Information required to complete this Schedule, if not shown above,will be shown in the Declarations. A. Section 11 — Who Is An Insured is amended to B. With respect to the insurance afforded to these include as an additional insured the person(s) or additional insureds, the following additional organization(s) shown in the Schedule, but only exclusions apply: with respect to liability for "bodily injury", "property This insurance does not apply to "bodily injury" or damage" or "personal and advertising injury" "property damage" occurring after: caused, in whole or in part, by: 1. All work, including materials, parts or 1. Your acts or omissions; or equipment furnished in connection with such 2. The acts or omissions of those acting on your work, on the project (other than service, behalf; maintenance or repairs) to be performed by or in the performance of your ongoing operations for on behalf of the additional insured(s) at the the additional insured(s) at the location(s) location of the covered operations has been designated above, completed; or However: 2. That portion of "your work" out of which the injury or damage arises has been put to its 1. The insurance afforded to such additional intended use by any person or organization insured only applies to the extent permitted by other than another contractor or subcontractor law; and engaged in performing operations for a 2. If coverage provided to the additional insured is principal as a part of the same project. required by a contract or agreement, the insurance afforded to such additional insured will not be broader than that which you are required by the contract or agreement to provide for such additional insured. CG 20 10 0413 © Insurance Services Office, Inc., 2012 Page 1 of 2 243 C. With respect to the insurance afforded to these 2. Available under the applicable Limits of additional insureds, the following is added to Insurance shown in the Declarations; Section III—Limits Of Insurance: whichever is less. If coverage provided to the additional insured is This endorsement shall not increase the required by a contract or agreement, the most we applicable Limits of Insurance shown in the will pay on behalf of the additional insured is the Declarations. amount of insurance: 1. Required by the contract or agreement; or Page 2 of 2 © Insurance Services Office, Inc., 2012 CG 20 10 04 13 244 COMMERCIAL GENERAL LIABILITY BARTEL ASSOCIATES, LLC. POLICY# BKS (19) 57297374 & BAS (19) 57297374 CG 20 01 04 13 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. PRIMARY AND NONCONTRIBUTORY - OTHER INSURANCE CONDITION This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART The following is added to the Other Insurance (2) You have agreed in writing in a contract or Condition and supersedes any provision to the agreement that this insurance would be contrary: primary and would not seek contribution Primary And Noncontributory Insurance from any other insurance available to the additional insured. This insurance is primary to and will not seek contribution from any other insurance available to an additional insured under your policy provided that: (1) The additional insured is a Named Insured under such other insurance; and CG 20 01 04 13 ©Insurance Services Office, Inc., 2012 Page 1 of 1 245 WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY WC 04 03 06 (Ed. 4-84) WAIVER OF OUR RIGHT TO RECOVER FROM OTHERS ENDORSEMENT-CALIFORNIA We have the right to recover our payments from anyone liable for an injury covered by this policy. We will not enforce our right against the person or organization named in the Schedule, (This agreement applies only to the extent that you perform work under a written contract that requires you to obtain this agreement from us.) You must maintain payroll records accurately segregating the remuneration of your employees while engaged in the work described in the Schedule. The additional premium for this endorsement shall be 2 % of the California workers'compensation premium otherwise due on such remuneration. Schedule Person or Organization Job Description ANY PERSON OR ORGANIZATION FOR WHOM THE NAMED INSURED HAS AGREED BY WRITTEN CONTRACT TO FURNISH THIS WAIVER. This policy is subject to a minimum charge of$250 for the issuance of waivers of subrogation This endorsement changes the policy to which it is attached and is effective on the date issued unless otherwise stated. (The information below is required only when this endorsement is issued subsequent to preparation of the policy.) This endorsement, effective 09/01/2018 at 12:01 AM standard time, forms a part of Policy No. EIG 2685705 00 Of the EMPLOYERS PREFERRED INS. CO. Carrier Code 00920 Issued to BARTEL ASSOCIATES LLC Endorsement No. Premium $5,437 Countersigned at on By: �! Authorized Representative WC 04 03 06 (Ed. 4-84) ©1998 by the Workers'Compensation Insurance Rating Bureau of California.All rights reserved. 246 CITY OF HUNTINGTON BEACH ` Professional Service Approval Form NOV 16 2018 PART I Finanr�� Uepartment Date: 11/15/2018 Project Manager Name: Dahle Bulosan Requested by Name if different from Project Manager: Department: Finance PARTS I OF THE PROFESSIONAL SERVICES CONTRACTS APPROVAL FORM MUST BE COMPLETED BY THE REQUESTING DEPARTMENT AND SIGNED BY THE CITY MANAGER, FOR APPROVAL, BEFORE PROCEEDING WITH THE SOLICITATION OR CONTRACT PROCESS. PART I MUST BE FILED WITH ALL APPROVED CONTRACTS. 1) Briefly provide the purpose for the agreement: Actuary Services for the City's Retirement Supplemental and Retiree Medical Plans 2) Estimated cost of the services being sought: $ 126,800 3) Are sufficient funds available to fund this contract? ® Yes ❑ No If no, please explain: 4) Check below how the services will be obtained: ® A Bid solicitation process in accordance to the MC 3,03.060 procedures will be conducted. ❑ MC 3.03.08(b) —Other Interagency Agreement procedure will be utilized. ❑ MC 3.03.08—Contract Limits of$30,000 or less exempt procedure will be utilized. 5) Is this contract-generally described on the list of professional service contracts approved by the City Coun ? If the answer to this question is "No," the contract will require approval from the City Council.) Yes ❑ No ftll_� F cal Services anager Signature (Purchasing Approval) Date 6) Amount, Business Unit(8 digits) and Object Code (5 digits) where funds are budgeted (Please note that a budget check will occur at the object code level): Account number Contractual Dollar Amount Business unit. object# Fiscal Year Fiscal Year Fiscal Year Fiscal Year FY18/19 FY19/20 FY20/21 FY21/22 70235202.69365 $0 $30000 $2400 $32000 70335203.69365 $0 $14500 $2400 $15500 100 1.69300 $5000 $10000 $10000 $5000 udge proval Date -JLl- ky epartment Head Signature(s) Iba lI ld�716 Z ' Financial,Officer Signature t Date ssistant tity Manager's Signature Date APPROVED JJ-4)EN I ED ❑ r/ City Ma ge s Signature Date part 1 actuary services.doc Mr%/. r..L_.._...nn4L RECEIVED OF HUNTINGTON BEACH r APR 02 2019 Professional Service Approval Form PART II Finance Department Date: 4/2/2019 Project Manager: Dahle Bulosan Requested by Name if different from Project Manager: Department: Finance PARTS I & II OF THE PROFESSIONAL SERVICES CONTRACTS APPROVAL FORM MUST BE COMPLETED BY THE REQUESTING DEPARTMENT AND SIGNED FOR APPROVAL. PART I & 11 MUST BE FILED WITH ALL APPROVED CONTRACTS. 1) Name of consultant: Bartel Associates, LLC 2) Contract Number: FIN (Contract numbers are obtained through Finance Administration x 5630) 3) Amount of this contract: $122,200 Account number Contractual Dollar Amount Business unit. object# Fiscal Year Fiscal Year Fiscal Year Fiscal Year FY18/19 FY19/20 FY20/21 FY21/22 70235202.69365 $0 $24,700 $4,600 $26,000 70335203.69365 $0 $15,700 $4,600 $16,600 10040101.69300 $5,000 $10,000 $10,000 $5,000 4) Is this contract less than $50,000? ❑ Yes ® No 5) Does this contract fall within $50,000 and $100,000? ❑ Yes ® No 6) Is this contract over$100,000? ® Yes ❑ No (Note: Contracts requiring City Council Approval need to be signed by the Mayor and City Clerk. Make sure the appropriate signature page is attached to the contract.) 7) Were formal written proposals requested from at least three available qualified consultants? ® Yes ❑ No 8) Attach a list of consultants from whom proposals were requested (including a contact telephone number.) 9). Attach Exhibit A, which describes the proposed scope of work. 10) Attach Exhibit B, which describes the payment terms of the contract. 1),mu Departme Date Fiscal Se i Manager(Purchasing) Date L_ Budget Manager Approval Signature Date U Chief Financial Officer (or designee) Signature Dat part 2 bartel actuary services.doc PROFESSIONAL SERVICE AWARD ANALYSIS SERVICE: Actuary Services SERVICE DESCRIPTION: Perform actuary services for the City's Supplemental Retirement and Retiree Medical Plans and to perform additional as needed actuarial services. VENDOR: Bartel Associates, LLC OVERALL RANKING: 1 SUBJECT MATTER EXPERTS/RATERS: 1. Public Works Senior Administrative Analyst, Finance Administrative Analyst, Fire Senior Administrative Analyst I. MINIMUM QUALIFICATIONS REVIEW • Written Proposal Score: 1 ,337.50 VENDOR NAME—Minimum Qualifications Review Total Weighted Maximum Criteria Score Score Compliance with RFP 70 75 Qualifications 337.5 375 Staff Experience 350 375 Technical Approach 350 375 Cost 110 150 References 120 150 Local Vendor(bonus) 0 15 Total 1,337.5 11,500 II. DUE DILIGENCE REVIEW • Proposal Ranking: VENDOR NAME—Summary of Review • Firm completed OPEB and pension valuations for over 400 California agencies since 2012. • 12 credentialed actuaries on staff. • All 5 staff to be assigned to the project have directly related actuary consulting experience with California cities. • Methodology included in the proposal was thorough and clear and tailored to City of Huntington Beach's needs. • Extensive list of actuarial valuation clients including the cities of Culver City, Long Beach, Orange, Fountain Valley, Hermosa Beach, Beverly Hills, and San Clemente to name a few. VENDOR NAME—Pricing • Pricing of$92,200 for the Supplemental Retirement Plan & Retiree Medical Plan doesn't included as needed actuarial services 247 PROFESSIONAL SERVICE AWARD ANALYSIS SERVICE: Actuary Services SERVICE DESCRIPTION: Perform actuary services for the City's Supplemental Retirement and Retiree Medical Plans and to perform additional as needed actuarial services. VENDOR: Vendor #2 OVERALL RANKING: 2 SUBJECT MATTER EXPERTS/RATERS: 1. Public Works Senior Administrative Analyst, Finance Administrative Analyst, Fire Senior Administrative Analyst I. MINIMUM QUALIFICATIONS REVIEW • Written Proposal Score: 1 ,177.50 VENDOR NAME —Minimum Qualifications Review Total Weighted Maximum Criteria Score Score Compliance with RFP 52.5 75 Qualifications 350 375 Staff Experience 250 375 Technical Approach 275 375 Cost 130 150 References 120 150 Local Vendor(bonus) 0 15 Total 1,177.5 1,500 II. DUE DILIGENCE REVIEW • Proposal Ranking: VENDOR NAME—Summary of Review • Large client base around the US including 150 clients in California. • Proposal could have been customized more to the needs of the City of Huntington Beach • 2 full time credentialed staff assigned to the City with over 10 years of experience. • Company founded in 1943 and consists of 9 offices & over 140 employees across the US. • References from City of Costa Mesa, City of Alameda, Turlock Irrigation District, Orange County Fire Authority, and San Diego Association of Governments VENDOR NAME—Pricing • Pricing of$70,600 for the Supplemental Retirement Plan & Retiree Medical Plan doesn't included as needed actuarial services) 248 City of Huntington Beach " 2000 Main Street ♦ Huntington Beach, CA 92648 (714) 536-5227 ♦ www.huntingtonbeachca.gov •17,1909 P' ` Office of the City Clerk Robin Estanislau, City Clerk June 6, 2019 Bartel Associates, LLC Attn: Mary Elizabeth Redding 411 Bortel Ave., Suite 101 San Mateo, CA 94402 Dear Ms. Redding: Enclosed is a fully executed copy of the "Professional Services Contract between the City of Huntington Beach and Bartel Associates, LLC for Actuary Accounting Services" approved by the Huntington Beach City Council on May 20, 2019. Sincerely, Robin Estanislau, CIVIC City Clerk REAs Enclosure Sister Cities: Anjo, Japan ♦ Waitakere, New Zealand