CONTRACT 4148 Professional Services Agreement CLOSED41 4S • si a ft
DUPLICATE ORIGINAL
PROFESSIONAL SERVICES AGREEMENT
BETWEEN
THE CITY OF EL SEGUNDO AND
BARTEL ASSOCIATES, LLC
This AGREEMENT is entered into this t" day of May, 2011, by and between the CITY OF
EL SEGUNDO, a municipal corporation and general law city ( "CITY ") and BARTEL ASSOCIATES,
a California Limited Liability Corporation ( "CONSULTANT ").
1. CONSIDERATION.
A. As partial consideration, CONSULTANT agrees to perform the work listed in the
SCOPE OF SERVICES, below;
B. As additional consideration, CONSULTANT and CITY agree to abide by the terms
and conditions contained in this Agreement;
C. As additional consideration, CITY agrees to pay CONSULTANT a sum not to
exceed Twenty Nine Thousand Five Hundred Dollars ($29,500) for
CONSULTANT's services. CITY may modify this amount as set forth below. Unless
otherwise specified by written amendment to this Agreement, CITY will pay this sum
as specified in the attached Exhibit "A," which is incorporated by reference.
2. SCOPE OF SERVICES.
A. CONSULTANT will perform services listed in the attached Exhibit "A," which is
incorporated by reference.
B. CONSULTANT will, in a professional manner, furnish all of the labor, technical,
administrative, professional and other personnel, all supplies and materials,
equipment, printing, vehicles, transportation, office space and facilities, and all tests,
testing and analyses, calculation, and all other means whatsoever, except as herein
otherwise expressly specified to be furnished by CITY, necessary or proper to perform
and complete the work and provide the professional services required of
CONSULTANT by this Agreement.
3. PERFORMANCE STANDARDS. While performing this Agreement, CONSULTANT will use
the appropriate generally accepted professional standards of practice existing at the time of performance
utilized by persons engaged in providing similar services. CITY will continuously monitor
CONSULTANT's services. CITY will notify CONSULTANT of any deficiencies and
CONSULTANT will have fifteen (15) days after such notification to cure any shortcomings to CITY's
satisfaction. Costs associated with curing the deficiencies will be borne by CONSULTANT.
4. PAYMENTS. For CITY to pay CONSULTANT as specified by this Agreement,
CONSULTANT must submit a detailed invoice to CITY which lists the hours worked and hourly rates
for each personnel category and reimbursable costs (all as set forth in Exhibit "A ") the tasks
performed, the percentage of the task completed during the billing period, the cumulative percentage
completed for each task, the total cost of that work during the preceding billing month and a
cumulative cash flow curve showing projected and actual expenditures versus time to date.
5. NON - APPROPRIATION OF FUNDS. Payments due and payable to CONSULTANT for
current services are within the current budget and within an available, unexhausted and unencumbered
appropriation of the CITY. In the event the CITY has not appropriated sufficient funds for payment
of CONSULTANT services beyond the current fiscal year, this Agreement will cover only those costs
incurred up to the conclusion of the current fiscal year.
6. ADDITIONAL WORK.
A. CITY's city manager ( "Manager ") may determine, at the Manager's sole discretion, that
CONSULTANT must perform additional work ( "Additional Work") to complete the
Scope of Work. If Additional Work is needed, the Manager will give written
authorization to CONSULTANT to perform such Additional Work.
B. If CONSULTANT believes Additional Work is needed to complete the Scope of Work,
CONSULTANT will provide the Manager with written notification that contains a
specific description of the proposed Additional Work, reasons for such Additional
Work, and a detailed proposal regarding cost.
C. Payments over $10,000 for Additional Work must be approved by CITY's city council.
All Additional Work will be subject to all other terms and provisions of this Agreement.
7. FAMILIARITY WITH WORK.
A. By executing this Agreement, CONSULTANT agrees that it has:
Carefully investigated and considered the scope of services to be performed;
ii. Carefully considered how the services should be performed; and
iii. Understands the facilities, difficulties, and restrictions attending performance
of the services under this Agreement.
B. If services involve work upon any site, CONSULTANT agrees that CONSULTANT
has or will investigate the site and is or will be fully acquainted with the conditions
there existing, before commencing the services hereunder.
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DUPLICATE GRIGINAL
Should CONSULTANT discover any latent or unknown conditions that may
materially affect the performance of the services, CONSULTANT will immediately
inform CITY of such fact and will not proceed except at CONSULTANT's own risk
until written instructions are received from CITY.
8. TERM. The term of this Agreement will be from May 1, 201 IS to May 1, 2012. Unless
otherwise determined by written amendment between the parties, this Agreement will terminate in
the following instances:
A. Completion of the work specified in Exhibit "A".
B. Termination as stated in Section 16.
9. TIME FOR PERFORMANCE.
A. CONSULTANT will not perform any work under this Agreement until:
i. CONSULTANT furnishes proof of insurance as required under Section 23 of
this Agreement; and
ii. CITY gives CONSULTANT a written notice to proceed.
B. Should CONSULTANT begin work on any phase in advance of receiving written
authorization to proceed, any such professional services are at CONSULTANT's own
risk.
10. TIME EXTENSIONS. Should CONSULTANT be delayed by causes beyond
CONSULTANT's control, CITY may grant a time extension for the completion of the contracted
services. If delay occurs, CONSULTANT must notify the Manager within forty-eight hours (48
hours), in writing, of the cause and the extent of the delay and how such delay interferes with the
Agreement's schedule. The Manager will extend the completion time, when appropriate, for the
completion of the contracted services.
11. CONSISTENCY. In interpreting this Agreement and resolving any ambiguities, the main body of
this Agreement takes precedence over the attached Exhibits; this Agreement supersedes any conflicting
provisions. Any inconsistency between the Exhibits will be resolved in the order in which the Exhibits
appear below:
A. Exhibit A: GASB 45 — Other Post - Employment Benefits (OPEB) Actuarial
Valuation Fee Estimate;
12. CHANGES. CITY may order changes in the services within the general scope of this
Agreement, consisting of additions, deletions, or other revisions, and the contract sum and the
contract time will be adjusted accordingly. All such changes must be authorized in writing, executed
by CONSULTANT and CITY. The cost or credit to CITY resulting from changes in the services
will be determined in accordance with written agreement between the parties.
13. TAXPAYER IDENTIFICATIION NUMBER. CONSULTANT will provide CITY with a
Taxpayer Identification Number.
14. PERMITS AND LICENSES. CONSULTANT, at its sole expense, will obtain and maintain
during the term of this Agreement, all necessary permits, licenses, and certificates that may be
required in connection with the performance of services under this Agreement.
15. WAIVER. CITY's review or acceptance of, or payment for, work product prepared by
CONSULTANT under this Agreement will not be construed to operate as a waiver of any rights
CITY may have under this Agreement or of any cause of action arising from CONSULTANT's
performance. A waiver by CITY of any breach of any term, covenant, or condition contained in this
Agreement will not be deemed to be a waiver of any subsequent breach of the same or any other
term, covenant, or condition contained in this Agreement, whether of the same or different
character.
16. TERMINATION.
A. Except as otherwise provided, CITY may terminate this Agreement at any time with
or without cause.
B. CONSULTANT may terminate this Agreement at any time with CITY's mutual
consent. Notice will be in writing at least thirty (30) days before the effective
termination date.
C. Upon receiving a termination notice, CONSULTANT will immediately cease
performance under this Agreement unless otherwise provided in the termination
notice. Except as otherwise provided in the termination notice, any additional work
performed by CONSULTANT after receiving a tennination notice will be performed
at CONSULTANT" own cost; CITY will not be obligated to compensate
CONSULTANT for such work.
D. Should termination occur, all finished or unfinished documents, data, studies, surveys,
drawings, maps, reports and other materials prepared by CONSULTANT will, at
CITY's option, become CITY's property, and CONSULTANT will receive just and
equitable compensation for any work satisfactorily completed up to the effective date
of notice of termination, not to exceed the total costs under Section 1(Q.
E. Should the Agreement be terminated pursuant to this Section, CITY may procure on
its own terms services similar to those terminated.
F. By executing this document, CONSULTANT waives any and all claims for damages
that might otherwise arise from CITY's termination under this Section.
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17. OWNERSHIP OF DOCUMENTS. All documents, data, studies, drawings, maps, models,
photographs and reports provided by the CITY to the CONSULTANT or provided by the
CONSULTANT to the CITY under this Agreement are CITY's property. All other documents,
data, studies, drawings, maps, models, photographs and reports prepared by CONSULTANT are
CONSULTANT's property. CONSULTANT may retain copies of documents and materials owned
by the CITY as desired, but will deliver all original materials to CITY upon CITY's written notice.
CITY agrees that use of CONSULTANT's completed work product, for purposes other than
identified in this Agreement, or use of incomplete work product, is at CITY's own risk.
CONSULTANT agrees to provide the CITY access to any and all documents and materials owned
by CONSULTANT.
18. PUBLICATION OF DOCUMENTS. Except as necessary for performance of service under
this Agreement, no copies, sketches, or graphs of materials, including graphic art work, prepared
pursuant to this Agreement, will be released by CONSULTANT to any other person or public CITY
without CITY's prior written approval. All press releases, including graphic display information to
be published in newspapers or magazines, will be approved and distributed solely by CITY, unless
otherwise provided by written agreement between the parties.
19. INDEMNIFICATION.
A. CONSULTANT agrees to the following:
i. Indemnification for Professional Services. CONSULTANT will save
harmless and indemnify and at CITY's request reimburse defense costs
for CITY and all its officers, volunteers, employees and representatives
from and against any and all suits, actions, or claims, of any character
whatever, brought for, or on account of, any injuries or damages
sustained by any person or property resulting or arising from any
negligent or wrongful act, error or omission by CONSULTANT or any
of CONSULTANT's officers, agents, employees, or representatives, in
the performance of this Agreement, except for such loss or damage
arising from CITY's sole negligence or willful misconduct.
ii. Indemnification for other Damages. CONSULTANT indemnifies and
holds CITY harmless from and against any claim, action, damages, costs
(including, without limitation, attorney's fees), injuries, or liability,
arising out of this Agreement, or its performance, except for such loss or
damage arising from CITY's sole negligence or willful misconduct.
Should CITY be named in any suit, or should any claim be brought
against it by suit or otherwise, whether the same be groundless or not,
arising out of this Agreement, or its performance, CONSULTANT will
defend CITY (at CITY's request and with counsel satisfactory to CITY)
and will indemnify CITY for any judgment rendered against it or any
sums paid out in settlement or otherwise.
B. For purposes of this section "CITY" includes CITY's officers, officials, employees,
agents, representatives, and certified volunteers.
C. It is expressly understood and agreed that the foregoing provisions will survive
termination of this Agreement.
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D. The requirements as to the types and limits of insurance coverage to be maintained
by CONSULTANT as required by Section 23, and any approval of said insurance by
CITY, are not intended to and will not in any manner limit or qualify the liabilities
and obligations otherwise assumed by CONSULTANT pursuant to this Agreement,
including, without limitation, to the provisions concerning indemnification.
20. ASSIGNABILITY. This Agreement is for CONSULTANT's professional services.
CONSULTANT's attempts to assign the benefits or burdens of this Agreement without CITY's
written approval are prohibited and will be null and void.
21. INDEPENDENT CONTRACTOR. CITY and CONSULTANT agree that CONSULTANT
will act as an independent contractor and will have control of all work and the manner in which is it
performed. CONSULTANT will be free to contract for similar service to be performed for other
employers while under contract with CITY. CONSULTANT is not an agent or employee of CITY
and is not entitled to participate in any pension plan, insurance, bonus or similar benefits CITY
provides for its employees. Any provision in this Agreement that may appear to give CITY the right to
direct CONSULTANT as to the details of doing the work or to exercise a measure of control over
the work means that CONSULTANT will follow the direction of the CITY as to end results of the
work only.
22. AUDIT OF RECORDS. CONSULTANT will maintain full and accurate records with respect
to all services and matters covered under this Agreement. CITY will have free access at all
reasonable times to such records, and the right to examine and audit the same and to make transcript
therefrom, and to inspect all program data, documents, proceedings and activities. CONSULTANT
will retain such financial and program service records for at least three (3) years after termination or
final payment under this Agreement.
23. INSURANCE.
A. Before commencing performance under this Agreement, and at all other times this
Agreement is effective, CONSULTANT will procure and maintain the following types
of insurance with coverage limits complying, at a minimum, with the limits set forth
below:
Type of Insurance Limits
Commercial general liability:
Professional Liability
Business automobile liability
Workers compensation
$1,000,000
$1,000,000
$1,000,000
Statutory requirement
IB. Commercial general liability insurance will meet or exceed the requirements of
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ISO -CGL Form No. CG 00 01 11 85, 88 or equivalent. The amount of insurance set
forth above will be a combined single limit per occurrence for bodily injury, personal
injury, and property damage for the policy coverage. Liability policies will be endorsed
to name CITY, its officials, and employees as "additional insureds" under said
insurance coverage and to state that such insurance will be deemed "primary" such
that any other insurance that may be carried by CITY will be excess thereto. Such
endorsement must be reflected on ISO Form No. CG 20 10 11 85 or 88, or equivalent.
Such insurance will be on an "occurrence," not a "claims made," basis and will not be
cancelable or subject to reduction except upon thirty (30) days prior written notice to
CITY.
C. Professional liability coverage will be on an "occurrence basis" if such coverage is
available, or on a "claims made" basis if not available. When coverage is provided on a
"claims made basis," CONSULTANT will continue to renew the insurance for a period
of three (3) years after this Agreement expires or is terminated. Such insurance will
have the same coverage and limits as the policy that was in effect during the term of this
Agreement, and will cover CONSULTANT for all claims made by CITY arising out of
any errors or omissions of CONSULTANT, or its officers, employees or agents during
the time this Agreement was in effect.
D. Automobile coverage will be written on ISO Business Auto Coverage Form CA 00 01
06 92, including symbol 1 (Any Auto).
E. CONSULTANT will furnish to CITY duly authenticated Certificates of Insurance
evidencing maintenance of the insurance required under this Agreement and such other
evidence of insurance or copies of policies as may be reasonably required by CITY from
time to time. Insurance must be placed with insurers with a current A.M. Best Company
Rating equivalent to at least a Rating of "A:VII."
F. Should CONSULTANT, for any reason, fail to obtain and maintain the insurance
required by this Agreement, CITY may obtain such coverage at CONSULTANT's
expense and deduct the cost of such insurance from payments due to CONSULTANT
under this Agreement or terminate pursuant to Section 16.
24. USE OF SUBCONTRACTORS. CONSULTANT must obtain CITY's prior written approval to
use any consultants while performing any portion of this Agreement. Such approval must approve of
the proposed consultant and the terms of compensation.
25. INCIDENTAL TASKS. CONSULTANT will meet with CITY monthly to provide the status on
the project, which will include a schedule update and a short narrative description of progress during
the past month for each major task, a description of the work remaining and a description of the work
to be done before the next schedule update.
26. NOTICES. All communications to either party by the other party will be deemed made when
received by such party at its respective name and address as follows:
N
If to CONSULTANT:
Bartel Associates, LLC
411 Bore[ Ave., Suite 101
San Mateo, CA 94402
Attention: John E. Bartel
if to CITY:
City of El Segundo
350 Main Street
El Segundo, CA 90245
Attention: Deborah Cullen
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Any such written communications by mail will be conclusively deemed to have been received by
the addressee upon deposit thereof in the United States Mail, postage prepaid and properly
addressed as noted above. In all other instances, notices will be deemed given at the time of actual
delivery. Changes may be made in the names or addresses of persons to whom notices are to be
given by giving notice in the manner prescribed in this paragraph.
27. CONFLICT OF INTEREST, CONSULTANT will comply with all conflict of interest laws
and regulations including, without limitation, CITY's conflict of interest regulations.
28. SOLICITATION. CONSULTANT maintains and warrants that it has not employed nor
retained any company or person, other than CONSULTANT's bona fide employee, to solicit or secure
this Agreement. Further, CONSULTANT warrants that it has not paid nor has it agreed to pay any
company or person, other than CONSULTANT's bona fide employee, any fee, commission,
percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or
making of this Agreement. Should CONSULTANT breach or violate this warranty, CITY may
rescind this Agreement without liability.
29. THIRD PARTY BENEFICIARIES. This Agreement and every provision herein is
generally for the exclusive benefit of CONSULTANT and CITY and not for the benefit of any other
party. There will be no incidental or other beneficiaries of any of CONSULTANT's or CITY's
obligations under this Agreement.
30. INTERPRETATION. This Agreement was drafted in, and will be construed in accordance
with the laws of the State of California, and exclusive venue for any action involving this agreement
will be in Los Angeles County.
31. COMPLIANCE WITH LAW. CONSULTANT agrees to comply with all federal, state, and
local laws applicable to this Agreement.
32. ENTIRE AGREEMENT. This Agreement, and its Attachments, sets forth the entire
understanding of the parties. There are no other understandings, terms or other agreements
expressed or implied, oral or written. There is One, Four Page (4) Exhibit Attachments to this
Agreement. This Agreement will bind and inure to the benefit of the parties to this Agreement and any
subsequent successors and assigns.
33. RULES OF CONSTRUCTION. Each Party had the opportunity to independently review this
Agreement with legal counsel. Accordingly, this Agreement will be construed simply, as a whole, and
in accordance with its fair meaning; it will not be interpreted strictly for or against either Party.
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34. SEVERABILITY. If any portion of this Agreement is declared by a court of competent
jurisdiction to be invalid or unenforceable, then such portion will be deemed modified to the extent
necessary in the opinion of the court to render such portion enforceable and, as so modified, such
portion and the balance of this Agreement will continue in full force and effect.
35. AUTHORITYIMODIFICATION. The Parties represent and warrant that all necessary action
has been taken by the Parties to authorize the undersigned to execute this Agreement and to engage in the
actions described herein. This Agreement may be modified by written amendment. CITY's executive
manager, or designee, may execute any such amendment on behalf of CITY.
36. ACCEPTANCE OF FACSIMILE SIGNATURES. The Parties agree that this Agreement,
agreements ancillary to this Agreement, and related documents to be entered into in connection with
this Agreement will be considered signed when the signature of a party is delivered by facsimile
transmission. Such facsimile signature will be treated in all respects as having the same effect as an
original signature.
37. CAPTIONS. The captions of the paragraphs of this Agreement are for convenience of
reference only and will not affect the interpretation of this Agreement.
38. TIME IS OF ESSENCE. Time is of the essence for each and every provision of this
Agreement.
39. FORCE MAJEURE. Should performance of this Agreement be prevented due to fire, flood,
explosion, acts of terrorism, war, embargo, government action, civil or military authority, the natural
elements, or other similar causes beyond the Parties' reasonable control, then the Agreement will
immediately terminate without obligation of either party to the other.
40. STATEMENT OF EXPERIENCE. By executing this Agreement, CONSULTANT represents
that it has demonstrated trustworthiness and possesses the quality, fitness and capacity to perform the
Agreement in a manner satisfactory to CITY. CONSULTANT represents that its financial
resources, surety and insurance experience, service experience, completion ability, personnel,
current workload, experience in dealing with private consultants, and experience in dealing with
public agencies all suggest that CONSULTANT is capable of performing the proposed contract and
has a demonstrated capacity to deal fairly and effectively with and to satisfy a public CITY.
[Signatures on next page]
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IN WITNESS WHEREOF the parties hereto have executed this contract the day and year fi rst
hereinabove written.
CITY OF EL SEGUNDO
a general law city.
Doug Willmore, City Manager
ATTEST:
Cin y M se ,
Cit Clerk
APPROVED AS TO FORM:
MARK D. HENSLEY, City Attorney
By:
Karl H. Berger, Assistant City Attorney
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John E. Bartel, President
Secretary
Taxpayer ID No. 02- 0701578
EXHIBIT 'A'
'. ___
March 21, 2011
Deborah Cullen
Director of Finance
City of El Segundo
350 Main Street
El Segundo, CA 90245
Re: GASB 45 OPEB Actuarial Valuation Fee Estimate & Data Request
Dear Ms. Cullen:
<<a'All i � n„ .
Bartel Associates would be pleased to provide the City of El Segundo actuarial consulting services. This
letter summarizes the project scope and our fee estimate for June 30, 2010 and 2011 actuarial valuations
for the City's retiree healthcare plan.
Background
Bartel Associates prepared a June 30, 2008 valuation for the 2009/10 and 2010 /11 fiscal years. GASB 45
requires that valuations be prepared biennially. The June 30, 2010 valuation can be used for the 2011/12
and 2012 /13 fiscal years.
Beginning in 2011, CalPERS will require valuations as of June 30 of each odd numbered year for CERBT
GASB 43 reporting. The City will be required to provide a June 30, 2011 valuation. We have discussed
with CaIPERS the possibility the June 30, 2011 valuation can be avoided for similar agencies, but they
have indicated it will be required. That valuation can be used for the 2013/14 and 2014 /15 fiscal years if
there are no significant changes during that period. If the City, prefers a shorter lag period between the
valuation date and the ARC fiscal year, the June 30, 2011 valuation can alternatively be used for the
2012/13 and 2013/14 fiscal years.
Estimated Fees
June 30, 2010 Valuation
Our fee to prepare a GASB 45 valuation of the City's retiree healthcare plan as of June 30, 2010 will be
approximately $16,000. While our fee estimate represents the likely cost of the valuation, it is possible
that the valuation may require additional time. We understand the City's budgeting needs and agree not
to bill more than $17,500 for the June 30, 2010 valuation unless the project scope changes.
June 30, 2011 Valuation
To reduce fees for the June 30, 2011 valuation, we recommend the same participant census data be used
for both the June 30, 2010 and June 30, 2011 valuations if there have been no significant changes to the
number and profile of the participants during the year. We have confirmed that this approach is
acceptable to CalPERS. The City should confirm that this approach is acceptable to its auditor. Under
this approach, our fee to prepare a GASB 45 valuation of the City's retiree healthcare plan as of June 30,
2011 will be approximately $11,000, with a not -to- exceed amount of $12,000.
411 Borel Avenue, Suite 101 -San Mateo, California 94402
Deborah Cullen
March 21, 2011
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D(If 7)AI E GIRIGNAL,
The City may want to establish an additional consulting budget for other OPEB projects or studies that
may be needed over the next year. The amount of this consulting budget will depend on the City's
expectation for any plan changes, plan design studies, funding policy changes, cost projections, and other
day -to -day financial reporting and consulting issues. Alternatively, if no such studies are planned, the
City might consider setting up an additional consulting budget of about 20% to 25% of the valuation
budget, or $3,500, for example, for unanticipated projects.
Following is a summary of the fees:
Please note that our fee estimate assumes that:
■ We will bill the City at the following hourly rates:
Partner
2011
2011
Valuation Date
6130/10
6 /30 /11
Valuation & Meeting
$16,000
$16,000
Credit if Using Same Participant Data
0
5( ,000)
Total Estimated Fee
$16,000
$11,000
Not -to- Exceed Valuation Fee
$17,500
$12,000
Additional Consulting Budget (as needed)
3,500
3,500
Not -to- Exceed Recommended Budget
$21,000
$15,500
Please note that our fee estimate assumes that:
■ We will bill the City at the following hourly rates:
Partner
$250-$300
Assistant Vice President
$200-$225
Senior Actuarial Analyst
$150
Actuarial Analyst
$125
Administrative Support
$75
• The June 30, 2011 valuation is prepared at the same time with the June 30, 2010 valuation.
• The City has made no changes to its retiree healthcare plan or healthcare providers since the last
actuarial valuation as of June 30, 2008. (Please review the benefit summary from our last valuation
results outline and let us know of any changes.)
• Participant census data requested will be provided completely and accurately in an Excel spreadsheet
with one record per participant.
• Costs and liabilities will be provided using one funding method and one set of assumptions.
• CaIPERS changed the demographic assumptions for PERS agency valuations beginning with the June
30, 2009 valuation for 2011112 contribution rates based on their recently published 1997 to 2007
experience study. They require the new demographic assumptions be used for OPEB plans funding
with CERBT for valuations dated September 1, 2010 and later, with earlier implementation
encouraged. Our June 30, 2010 actuarial valuation will use the new Ca1PERS demographic
assumptions and show the impact of the changes.
• The City has not changed its contribution policy since the June 30, 2008 valuation.
• All plan and financial information requested will be provided and is internally consistent.
• We will calculate the Actuarial Value of Assets and estimate the components of the Actuarial Accrued
Liability gain or loss since the last actuarial valuation.
• GASB 45 costs and liabilities will be presented for the plan as a whole with breakdowns for
Miscellaneous and Safety participants.
Deborah Cullen
March 21, 2011
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• We will have one meeting with the City to review the valuation results and will provide a preliminary
valuation results discussion outline for the meeting. The discussion outline will summarize the plan
provisions, census data, actuarial methods and assumptions, and the valuation results.
• We will provide the actuarial certification, funding policy certification, and Excel valuation
information spreadsheet required by Ca1PERS for CERBT funding along with a certified final results
discussion outline.
• There will be no additional charges for expenses (e.g., travel, telephone, copying, etc.). The hourly
rates listed above include our costs for these items.
• We will invoice the City monthly based on time incurred, subject to the above maximum fees.
Please note that our fee estimate will be higher if:
■ The City had changed its retiree healthcare plan design or has changed healthcare providers since the
June 30, 2008 actuarial valuation.
• Participant census data is not complete, accurate, and free from internal inconsistencies or is not
provided in an Excel spreadsheet with one record per participant.
• Results are needed separately for additional employee groups.
• Results are needed for additional assumptions, funding methods, contribution policies, or alternative
plan designs.
• The City requests additional meetings. We will base our fee for additional meetings on our billing
rates and the time needed for the meetings and preparation. For example, a 2 -hour meeting where we
can use our discussion outline with no additional preparation would cost about $500.
• The City requests a formal valuation report, an executive summary, or a draft financial statement
footnote. We estimate that our fees would be $2,000 for a formal valuation report, $1,500 for an
executive summary, and $1,000 for a draft financial statement footnote.
Data Requirements
In order for us to begin the GASB 45 valuation, please provide:
• Summary of plan provisions and copies of the most recent MOUs for bargained employee groups and
agreements for unrepresented groups, including any changes since the June 30, 2008 actuarial
valuation.
• Total pay -as- you -go costs for the 2008/09 and 2009/10 fiscal years. Provide the pay -as- you -go.
• The City's June 30, 2009 and June 30, 2010 OPEB CAFR footnote and required supplementary
information.
• Current active and retiree medical premiums.
• Plan asset information:
• All quarterly and annual trust statements received from the CERBT Trust.
• Contributions and dates made and expected to be made for 2008/09, 2009/10 and (actual and
expected for) 20I0 /11.
■ Active and retired participant data in electronic format (Excel workbook):
• Participant data gathered as of June 30, 2010.
• Active Data - name, employee number, gender, birth date, hire date, medical plans, CalPERS
medical plan code, single /2- party/family coverage, CaIPERS pension plan (Miscellaneous, Safety),
employee classification (full -time or part- time), bargaining or employee group, spouse's birth date
(if available), and annual base (or PERSable) compensation. Include any active employees who
Deborah Cullen
March 21, 2011
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HE (>ZIGINAL
have waived healthcare coverage. Note if hours for part -time employees are less than 20 hours per
week.
• Retiree Data - name, employee number, gender, birth date, hire date, retirement type (service or
disability), retirement date, medical plans, Ca1PERS medical plan code, single/2- party/family
coverage, CalPERS pension plan (Miscellaneous, Safety), bargaining or employee group, spouse's
birth date (if available), portion of premium paid by the City, portion of premium paid by the
retiree, and whether the participant is a former employee or surviving spouse. Include retirees and
surviving spouses of retirees who have retired under Ca1PERS and participate in PEMHCA even if
they are not eligible for a City contribution or have waived coverage.
• In order to maintain confidentiality, do not provide Social Security numbers
• Our fee estimate assumes that the City will merge and reconcile all data files and provide one
census file with one complete record for each employee and eligible retiree. If the City needs our
help to merge and reconcile data, our fees will be higher.
We may need additional data, depending on our review of the City's retiree medical plan design.
Timing
We are prepared to begin this project immediately. Normally, the valuation results meeting is set about 4-
6 weeks after we receive all the requested information and the City replies to any questions we may have
after our initial review of the requested data.
We look forward to continue working with you and the City. Please call Bianca Lin (650- 377 -1604) or
me (650 -377 -1601) with any questions regarding this letter.
Sincerely,
John E. Bartel
President
c: Bianca Lin, Bartel Associates, LLC
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