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HomeMy WebLinkAboutFin Retiree Healthcare Benefits Actuarial Services 2015c►rr of Agenda Item No: 3, d n. 1 "L---* Meeting Date: August 17, 2015 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Finance Prepared by: Mark Moses, Finance Director City Manager Approval: TOPIC: Actuarial Services needed to generate Retiree Healthcare Benefits valuation and information needed to comply with financial reporting requirements. SUBJECT: RESOLUTION AUTHORIZING AN AGREEMENT WITH BARTEL ASSOCIATES, LLC, FOR ACTUARIAL SERVICES RELATED TO THE CITY'S RETIREE HEALTHCARE BENEFITS RECOMMENDATION: Adopt Resolution authorizing agreement. BACKGROUND: In 2004, the Governmental Accounting Standards Board (GASB) issued Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions (GASB 45). Other postemployment benefits (OPEB) include all benefits — other than pension benefits — that are earned by employees as a result of active service, but not paid -out as benefits until the beneficiaries have retired. The City's retiree healthcare plan falls under the scope of this definition, and the City has been required to implement GASB 45 since its fiscal year ending June 30, 2009. A biennial actuarial valuation prepared by a certified actuary is needed to comply with the GASB 45 reporting requirements. DISCUSSION: The City of San Rafael has contracted with Bartel Associates, LLC, in the past for various actuarial services related to the retiree healthcare plan. These services have included analysis of the City's OPEB data, preparation of formal valuation reports and an executive summary of the findings. The City would again like to contract with Bartel Associates for a GASB 45 compliant actuarial valuation of the City's retiree healthcare plan as of June 30, 2015. FISCAL IMPACT: The fees to conduct the actuarial valuation are approximately $24,000, as outlined in the attached Professional Services Agreement and scope of work, with an allowance for fees not to exceed $8,000 for additional consulting services as needed. There are sufficient funds appropriated in the OPEB Internal Service Fund to support this contract. OPTIONS: FOR CITY CLERK ONLY File No.: 4-3-476 Council Meeting: 08/17/2015 Disposition: Resolution 13988 SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 ATTACHMENT: Resolution with attached agreement between the City of San Rafael and Bartel Associates, LLC RESOLUTION NO. 13988 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH BARTEL ASSOCIATES, LLC FOR ACTUARIAL CONSULTING SERVICES RELATED TO THE CITY'S RETIREE HEALTHCARE BENEFITS PLAN WHEREAS, Governmental Accounting Standards Board Statement No. 45 (GASB 45) establishes standards for accounting and financial reporting of "Other Postemployment Benefits" (OPEB) and requires each public agency to engage a certified actuary to calculate several actuarial measures estimating the current and future costs and liabilities of an agency's retiree healthcare benefits; and WHEREAS, the City has contracted with Bartel Associates, LLC in the past for similar, professional actuarial and consultative services; and WHEREAS, the City would like to contract with Bartel Associates, LLC to provide actuarial services for a GASB 45 compliant actuarial valuation of the City's retiree healthcare plan; and WHEREAS, there are sufficient funds appropriated in the City's OPEB Internal Service Fund to support this contract with respective not -to -exceed amounts of $24,000 for actuarial services, and $8,000 for other consultative services as needed and directed by the City. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Rafael hereby approves and authorizes the City Manager to execute a Professional Services Agreement with Bartel Associates, LLC for actuarial consulting services related to the City's retiree healthcare plan, a draft of which is attached to this Resolution and in a final form to be approved by the City Attorney. I, Esther C. Beirne, Clerk of the City of San Rafael, hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the San Rafael City Council held on the 17t day of August 2015, by the following vote to wit: AYES: Councilmembers: NOES: Councilmembers: ABSENT: Councilmembers: Colin, Gamblin, McCullough & Mayor Phillips None Bushey ESTHER C. BEIRNE, City Clerk AGREEMENT WITH BARTEL ASSOCIATES, LLC FOR ACTUARIAL CONSULTING SERVICES This Agreement is made and entered into this 28fw day of August 2015, by and between the CITY OF SAN RAFAEL (hereinafter "CITY"), and BARTEL ASSOCIATES, LLC (hereinafter "CONTRACTOR"). AGREEMENT NOW, THEREFORE, the parties hereby agree as follows: PROJECT COORDINATION. A. The City Manager shall be the representative of the CITY for all purposes under this Agreement and MARK MOSES, the Finance Director is hereby designated the PROJECT MANAGER for the CITY, and said PROJECT MANAGER shall supervise all aspects of the progress and execution of this Agreement. B. CONTRACTOR. CONTRACTOR shall assign a single PROJECT DIRECTOR to have overall responsibility for the progress and execution of this Agreement for CONTRACTOR. DOUG PRYOR is hereby designated as the PROJECT DIRECTOR for CONTRACTOR. 2. DUTIES OF CONTRACTOR. CONTRACTOR shall perform the duties and/or provide services as further provided in the proposal attached hereto as Exhibit "A", including: A. Prepare a GASB 45 compliant actuarial valuation of the CITY's retiree healthcare plan as of June 30, 2015. B. Other data analysis as requested by the CITY 3. DUTIES OF CITY. CITY shall provide input from the PROJECT MANAGER as to the Data Requirements outlined in Exhibit "A". CITY staff shall provide cooperation and information as reasonably required to assist CONTRACTOR perform the services and duties required under this agreement and shall compensate CONTRACTOR pursuant to the provisions of section 4, below. 4. COMPENSATION. For the CONTRACTOR's full performance of the duties and services described herein, CITY shall pay CONTRACTOR a professional services fee in an amount not to exceed $24,000 for a GASB -45 compliant retiree healthcare plan valuation, and a fee not to exceed $8,000 for additional actuarial consulting services related to this project as needed. These fees are based on the hourly rates as outlined in Attachment "A" which include provisions for miscellaneous expenses (travel, telephone, copying, etc.). The total amount of this agreement, including additional services, shall not exceed $34,000.00. Payment will be made upon receipt by PROJECT MANAGER of itemized invoices submitted by CONTRACTOR. Version 7-31-15 � 1 TERM OF AGREEMENT. The term of this Agreement shall be from the execution of this Agreement until CONTRACTOR's completion of performance of all duties and services under this Agreement, or March 31, 2016, whichever is earlier. The City Manager may extend the contract term, as needed, but no more than an additional calendar year. 6. TERMINATION. A. Discretionary. Either party may terminate this Agreement without cause upon thirty (30) days written notice mailed or personally delivered to the other party. B. Cause. Either party may terminate this Agreement for cause upon fifteen (15) days written notice mailed or personally delivered to the other party, and the notified party's failure to cure or correct the cause of the termination, to the reasonable satisfaction of the party giving such notice, within such fifteen (15) day time period. C. Effect of Termination. Upon receipt of notice of termination, neither party shall incur additional obligations under any provision of this Agreement without the prior written consent of the other. D. Return of Documents. Upon termination, any and all CITY documents or materials provided to CONTRACTOR and any and all of CONTRACTOR's documents and materials prepared for or relating to the performance of its duties under this Agreement, shall be delivered to CITY as soon as possible, but not later than thirty (30) days after termination. 7. OWNERSIIIP OF DOCUMENTS. The written documents and materials prepared by the CONTRACTOR in connection with the performance of its duties under this Agreement, shall be the sole property of CITY. CITY may use said property for any purpose, including projects not contemplated by this Agreement. 8. INSPECTION AND AUDIT. Upon reasonable notice, CONTRACTOR shall make available to CITY, or its agent, for inspection and audit, all documents and materials maintained by CONTRACTOR in connection with its performance of its duties under this Agreement. CONTRACTOR shall fully cooperate with CITY or its agent in any such audit or inspection. 9. ASSIGNABILITY. The parties agree that they shall not assign or transfer any interest in this Agreement nor the performance of any of their respective obligations hereunder, without the prior written consent of the other party, and any attempt to so assign this Agreement or any rights, duties or obligations arising hereunder shall be void and of no effect. N 10. INSURANCE. A. Scope of Coverage. During the term of this Agreement, CONTRACTOR shall maintain, at no expense to CITY, the following insurance policies: 1. A commercial general liability insurance policy in the minimum amount of one million dollars ($1,000,000) per occurrence/two million dollars ($2,000,000) aggregate, for death, bodily injury, personal injury, or property damage. 2. An automobile liability (owned, non -owned, and hired vehicles) insurance policy in the minimum amount of one million dollars ($1,000,000) dollars per occurrence. 3. If any licensed professional performs any of the services required to be performed under this Agreement, a professional liability insurance policy in the minimum amount of two million dollars ($2,000,000) per occurrence/four million dollars ($4,000,000) aggregate, to cover any claims arising out of the CONTRACTOR's performance of services under this Agreement. Where CONTRACTOR is a professional not required to have a professional license, CITY reserves the right to require CONTRACTOR to provide professional liability insurance pursuant to this section. 4. If it employs any person, CONTRACTOR shall maintain worker's compensation and employer's liability insurance, as required by the State Labor Code and other applicable laws and regulations, and as necessary to protect both CONTRACTOR and CITY against all liability for injuries to CONTRACTOR's officers and employees. CONTRACTOR'S worker's compensation insurance shall be specifically endorsed to waive any right of subrogation against CITY. B. Other Insurance Requirements. The insurance coverage required of the CONTRACTOR in subparagraph A of this section above shall also meet the following requirements: 1. Except for professional liability insurance, the insurance policies shall be specifically endorsed to include the CITY, its officers, agents, employees, and volunteers, as additionally named insureds under the policies. 2. The additional insured coverage under CONTRACTOR'S insurance policies shall be primary with respect to any insurance or coverage maintained by CITY and shall not call upon CITY's insurance or self-insurance coverage for any contribution. The "primary and noncontributory" coverage in CONTRACTOR'S policies shall be at least as broad as ISO form CG20 0104 13. 3. Except for professional liability insurance, the insurance policies shall include, in their text or by endorsement, coverage for contractual liability and personal injury. 4. The insurance policies shall be specifically endorsed to provide that the insurance carrier shall not cancel, terminate or otherwise modify the terms and conditions of said I insurance policies except upon ten (10) days written notice to the PROJECT MANAGER. 5. If the insurance is written on a Claims Made Form, then, following termination of this Agreement, said insurance coverage shall survive for a period of not less than five years. 6. The insurance policies shall provide for a retroactive date of placement coinciding with the effective date of this Agreement. 7. The limits of insurance required in this Agreement may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and noncontributory basis for the benefit of CITY (if agreed to in a written contract or agreement) before CITY'S own insurance or self-insurance shall be called upon to protect it as a named insured. 8. It shall be a requirement under this Agreement that any available insurance proceeds broader than or in excess of the specified minimum insurance coverage requirements and/or limits shall be available to CITY or any other additional insured party. Furthermore, the requirements for coverage and limits shall be: (1) the minimum coverage and limits specified in this Agreement; or (2) the broader coverage and maximum limits of coverage of any insurance policy or proceeds available to the named insured; whichever is greater. C. Deductibles and SIR's. Any deductibles or self-insured retentions in CONTRACTOR's insurance policies must be declared to and approved by the PROJECT MANAGER and City Attorney, and shall not reduce the limits of liability. Policies containing any self-insured retention (SIR) provision shall provide or be endorsed to provide that the SIR may be satisfied by either the named insured or CITY or other additional insured party. At CITY's option, the deductibles or self-insured retentions with respect to CITY shall be reduced or eliminated to CITY's satisfaction, or CONTRACTOR shall procure a bond guaranteeing payment of losses and related investigations, claims administration, attorney's fees and defense expenses. D. Proof of Insurance. CONTRACTOR shall provide to the PROJECT MANAGER or CITY'S City Attorney all of the following: (1) Certificates of Insurance evidencing the insurance coverage required in this Agreement; (2) a copy of the policy declaration page and/or endorsement page listing all policy endorsements for the commercial general liability policy, and (3) excerpts of policy language or specific endorsements evidencing the other insurance requirements set forth in this Agreement. CITY reserves the right to obtain a full certified copy of any insurance policy and endorsements from CONTRACTOR. Failure to exercise this right shall not constitute a waiver of the right to exercise it later. The insurance shall be approved as to form and sufficiency by PROJECT MANAGER and the City Attorney. 11. INDEMNIFICATION. A. Except as otherwise provided in Paragraph B., CONTRACTOR shall, to the fullest extent permitted by law, indemnify, release, defend with counsel approved by CITY, and hold harmless CITY, its officers, agents, employees and volunteers (collectively, the "City Indemnitees"), from and against any claim, demand, suit, judgment, loss, liability or expense of any kind, including but not limited to attorney's fees, expert fees and all other costs and fees of litigation, (collectively "CLAIMS"), arising out of CONTRACTOR'S performance of its obligations or conduct of its operations under this Agreement. The CONTRACTOR's obligations apply regardless of whether or not a liability is caused or contributed to by the active or passive negligence of the City Indemnitees. However, to the extent that liability is caused by the active negligence or willful misconduct of the City Indemnitees, the CONTRACTOR's indemnification obligation shall be reduced in proportion to the City Indemnitees' share of liability for the active negligence or willful misconduct. In addition, the acceptance or approval of the CONTRACTOR's work or work product by the CITY or any of its directors, officers or employees shall not relieve or reduce the CONTRACTOR's indemnification obligations. In the event the City Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from CONTRACTOR'S performance of or operations under this Agreement, CONTRACTOR shall provide a defense to the City Indemnitees or at CITY'S option reimburse the City Indemnitees their costs of defense, including reasonable attorneys' fees, incurred in defense of such claims. B. Where the services to be provided by CONTRACTOR under this Agreement are design professional services to be performed by a design professional as that term is defined under Civil Code Section 2782.8, CONTRACTOR shall, to the fullest extent permitted by law, indemnify, release, defend and hold harmless the City Indemnitees from and against any CLAIMS that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of CONTRACTOR in the performance of its duties and obligations under this Agreement or its failure to comply with any of its obligations contained in this Agreement, except such CLAIM which is caused by the sole negligence or willful misconduct of CITY. C. The defense and indemnification obligations of this Agreement are undertaken in addition to, and shall not in any way be limited by, the insurance obligations contained in this Agreement, and shall survive the termination or completion of this Agreement for the full period of time allowed by law. 12. NONDISCRIMINATION. CONTRACTOR shall not discriminate, in any way, against any person on the basis of age, sex, race, color, religion, ancestry, national origin or disability in connection with or related to the performance of its duties and obligations under this Agreement. 13. COMPLIANCE WITH ALL LAWS. CONTRACTOR shall observe and comply with all applicable federal, state and local laws, ordinances, codes and regulations, in the performance of its duties and obligations under this Agreement. CONTRACTOR shall perform all services under this Agreement in accordance with these laws, ordinances, codes and regulations. CONTRACTOR shall release, defend, indemnify and hold harmless CITY, its officers, agents and employees from any and all damages, liabilities, 1 penalties, fines and all other consequences from any noncompliance or violation of any laws, ordinances, codes or regulations. 14. NO THIRD PARTY BENEFICIARIES. CITY and CONTRACTOR do not intend, by any provision of this Agreement, to create in any third party, any benefit or right owed by one party, under the terms and conditions of this Agreement, to the other party. 15. NOTICES. All notices and other communications required or permitted to be given under this Agreement, including any notice of change of address, shall be in writing and given by personal delivery, or deposited with the United States Postal Service, postage prepaid, addressed to the parties intended to be notified. Notice shall be deemed given as of the date of personal delivery, or if mailed, upon the date of deposit with the United States Postal Service. Notice shall be given as follows: TO CITY: Mark Moses, Finance Director City of San Rafael 1400 Fifth Ave. (P.O. Box 151560) San Rafael, CA 94915-1560 TO CONTRACTOR: Doug Pryor, Vice President Bartel Associates, LLC 411 Borel Avenue, Suite 445 San Mateo, CA 94402 16. INDEPENDENT CONTRACTOR. For the purposes, and for the duration, of this Agreement, CONTRACTOR, its officers, agents and employees shall act in the capacity of an Independent Contractor, and not as employees of the CITY. CONTRACTOR and CITY expressly intend and agree that the status of CONTRACTOR, its officers, agents and employees be that of an Independent Contractor and not that of an employee of CITY. 17. ENTIRE AGREEMENT -- AMENDMENTS. A. The terms and conditions of this Agreement, all exhibits attached, and all documents expressly incorporated by reference, represent the entire Agreement of the parties with respect to the subject matter of this Agreement. B. This written Agreement shall supersede any and all prior agreements, oral or written, regarding the subject matter between the CONTRACTOR and the CITY. C. No other agreement, promise or statement, written or oral, relating to the subject matter of this Agreement, shall be valid or binding, except by way of a written amendment to this Agreement. D. The terms and conditions of this Agreement shall not be altered or modified except by a written amendment to this Agreement signed by the CONTRACTOR and the CITY. E. If any conflicts arise between the terms and conditions of this Agreement, and the terms and conditions of the attached exhibits or the documents expressly incorporated by reference, the terms and conditions of this Agreement shall control. 18. SET-OFF AGAINST DEBTS. CONTRACTOR agrees that CITY may deduct from any payment due to CONTRACTOR under this Agreement, any monies which CONTRACTOR owes CITY under any ordinance, agreement, contract or resolution for any unpaid taxes, fees, licenses, assessments, unpaid checks or other amounts. 19. WAIVERS. The waiver by either party of any breach or violation of any term, covenant or condition of this Agreement, or of any ordinance, law or regulation, shall not be deemed to be a waiver of any other term, covenant, condition, ordinance, law or regulation, or of any subsequent breach or violation of the same or other term, covenant, condition, ordinance, law or regulation. The subsequent acceptance by either party of any fee, performance, or other consideration which may become due or owing under this Agreement, shall not be deemed to be a waiver of any preceding breach or violation by the other party of any term, condition, covenant of this Agreement or any applicable law, ordinance or regulation. 20. COSTS AND ATTORNEY'S FEES. The prevailing party in any action brought to enforce the terms and conditions of this Agreement, or arising out of the performance of this Agreement, may recover its reasonable costs (including claims administration) and attorney's fees expended in connection with such action. 21. CITY BUSINESS LICENSE / OTHER TAXES. CONTRACTOR is exempt from the business license requirement of the San Rafael Municipal Code because CONTRACTOR is based outside of and will conduct business outlined in Exhibit A outside of San Rafael city limits. CONTRACTOR shall pay any and all state and federal taxes and any other applicable taxes. CITY shall not be required to pay for any work performed under this Agreement, until CONTRACTOR has provided CITY with a completed Internal Revenue Service Form W-9 (Request for Taxpayer Identification Number and Certification). A 22. APPLICABLE LAW. The laws of the State of California shall govern this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day, month and year first above written. CITY OF SAN RAFAEL /_U000 3 APPROVED AS TO FORM: 3 .. .. ROBERT F. EPSTEIN, Ci --'A . ....tto ey MEM 's M#gi� , ident EXHIBIT A May 28, 2015 Mark Moses Finance Director City of San Rafael PO Box 151560 San Rafael, California 94915-1560 Re: GASB 45 OPEB Actuarial Valuation Fee Estimate & Data Request Dear Mr. Moses: Bartel Associates would be pleased to provide the City of San Rafael actuarial consulting services. This letter summarizes the project scope and our fee estimate for services for a June 30, 2015 GASB 45 actuarial valuation of the City's retiree healthcare plan. Background The prior June 30, 2013 GASB 45 actuarial valuation can be used for the 2014/15 and 2015/16 fiscal years. The June 30, 2015 GASB 45 valuation can be used for the 2016/17 and 2017/18 fiscal years. Estimated Fees The valuation will include a meeting with the City to review the plan provisions, census data, actuarial methods and assumptions, and valuation results. Our discussion outline for the meeting will include: 1) Historical valuation results and demographic information; 2) Gain and loss analysis with changes in the Actuarial Accrued Liability since the prior valuation; 3) 10 -year projection of the Net OPEB Obligation, ARC, Annual OPEB Cost, benefit payments; 4) Impact of the implied subsidy; 5) Results provided separately for Miscellaneous and Safety groups; 6) Statistical comparison of City results with other Bartel Associates GASB 45 valuations; 7) Detailed participant statistics, including summary of healthcare plan and coverage elections; and 8) Summary of upcoming OPEB and CaIPERS issues. This approach provides the same scope of work as previous valuations we have prepared for the City. Our fee to prepare the valuation will be approximately $21,500. While this represents the likely cost of the valuation, it is possible the valuation may require additional time. We understand the City's budgeting needs and agree not to bill more than $24,000 unless the project scope changes. Note this valuation will include the implied subsidy (see below) and fees reflect additional time for this analysis. The City may want to include a budget for additional projects that may arise. The amount of this consulting budget will depend on the City's needs. We've assumed this budget will be $6,000 to $8,000 in the following estimated fees. Project Fee Estimate Not -to -Exceed Amount ■ June 30, 2015 GASB 45 Actuarial Valuation includes implied subsidy analysis) $ 21,500 $ 24,000 ■ Additional consulting projects 6,000 8,000 is Total 27,500 32,000 111 101 • mi ? Dain.1600 Of1Y'+i )O/�I'r.80{) / 0rveb. COM. Mark Moses May 28, 2015 Page 2 1) Historically, valuations have not included an implied subsidy (the implied subsidy is the benefit retirees derive when they are charged the same pre -Medicare premium as employees). This approach complies with GASB 45, which defers to Actuarial Standards of Practice (ASOP) on whether the implied subsidy should be included. In May 2014 the Actuarial Standards Board issued a revised ASOP that will require actuaries value an implied subsidy for community rated plans such as PEMHCA. The effective date is for valuations after March 31, 2015. Since your valuation will be after this date, we are required to include it. Please note that our fee estimate assumes: ■ We will bill the City at the following hourly rates: Partner $260-$310 Assistant Vice President $210-$230 Associate Actuary $160 Actuarial Analyst $130 ■ The City has made no changes to its retiree healthcare plan or healthcare providers since the last actuarial valuation as of June 30, 2013. ■ Participant census data 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 including select and ultimate discount rates based on the City's current funding policy. ■ The City has not changed its funding policy since the June 30, 2013 valuation. ■ GASB 45 costs and liabilities will be presented for the plan as a whole with breakdowns for Miscellaneous and Safety employee groups as in the June 30, 2013 valuation. ■ 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 valuation report, actuarial certification, funding policy certification, and Excel valuation information spreadsheet required by Ca1PERS to pre -fund with the CERBT. Similar to previous valuation, the report format will be a certified discussion outline (acceptable to CaIPERS). a 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 may be higher if: a Plan and financial information is not provided as requested or is not complete and internally consistent. ■ Results are needed for alternative plan designs. a Results are needed separately for additional employee groups (e.g. Parking Fund and SRSD). a 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. ■ The City requests a formal report, executive summary, or a draft financial statement footnote. We estimate that our fees would be $1,500 for a formal valuation report, $1,500 for an executive summary, and $500 to $1,000 for a draft financial statement footnote. 11 i 1"a,+ne. .` jcx Ir.w, :;Iw 1 101 •' err Nkireo f nit dA,.Mi?, main: 6j0/3// 1600 0 web. ww ", uu r I Mark Moses May 28, 2015 Page 3 ........... ■ Results are needed for any changes in GASB's OPEB accounting rules. In June 2014 GASB issued an Exposure Draft amendment to GASB Statements Nos. 43 and 45 and anticipates issuing final statements by June 2015. Our estimated fees do not include our charges for additional work needed to comply with future revisions to the OPEB accounting standards. Data Requirements In order for us to begin the GASB 45 study, please provide: ■ Summary of plan provisions and copies of any recent MOUs for bargained employee groups that are not available on the City's website. ■ The City's most current CalPERS PEMHCA resolution(s), if different from that provided for the June 30, 2013 valuation. ■ All quarterly and annual trust statements received from CalPERS CERBT including contributions and dates made. ■ Total pay-as-you-go costs for the 2014/15 fiscal year. ■ The City's latest monthly CalPERS health premium invoice. Please remove any Social Security numbers. ■ Active and retired participant data in electronic format (Excel workbook): • Active Data - name, employee number (not Social Security number), gender, birth date, hire date, medical plan, single/2-party/family coverage, Medicare eligibility, pension plan (MCERA Miscellaneous, Police or Fire Safety; or PARS), employee classification (full-time or part-time), bargaining or employee group, and annual base compensation. Include any active employees who have waived healthcare coverage. Note if hours for part=time employees are less than 20 hours per week. Indicate pay period for the compensation reported. • Retiree Data - name, employee number (not Social Security number), gender, birth date, hire date, retirement type (service retirement, disability retirement, surviving spouse), retirement date, medical plan, single/2-party/family coverage, Medicare eligibility, MCERA pension plan (Miscellaneous, Police or Fire 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 any retirees or surviving spouses of retirees who have waived coverage. Include retirees and surviving spouses who do not participate in the City's healthcare plans but receive a City contribution. • If the City would like results for Parking Fund and SRSD, for each employee and retiree also include percentage of service allocated to each entity. • The City may request a copy of its CalPERS PEMHCA database by downloading and submitting the CalPERS "GASB 45 Data Extract Request and Non -Disclosure Agreement" and the "GASB 45 Data Extract Receiving Party Sending Electronic Information Agreement" from the CaIPERS website. This data extract may be helpful to the City in assembling the requested employee census information, including retirees who waived coverage. • If the City wants us to use the CalPERS data extract for the valuation, it should (1) add PERSable compensation to each active record, (2) add bargaining unit or employee group to each active and retiree record if results are needed by employee group, (3) remove any retirees who are not eligible to participate in the City's retiree healthcare plan, for example, if they did not retiree directly from the City, and (4) make any additions or deletions necessary to make the file current as of the valuation date. 9 a,r+.,l \ enIi,_, °iI L , • qui w, i ,, 1ahlfimni o 941151 !llClllt:- �,V .ril *fClk:Ia6Viw�r •Lugald,Pd:�o�ui4o Mark Moses May 28, 2015 m Page 4 • In lieu of individual PERSable compensation, the City can provide the current average PERS pay rate for employees and for each bargaining unit or employee group if results are needed by employee group. Indicate the pay period for the compensation reported. • In order to maintain confidentiality, do not provide Social Security numbers for the employee number. We will not accept any files that contain 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 me (650-377-1602) with any questions regarding this letter. Sincerely, Doug Pryor Vice President c: John Bartel, Bartel Associates o'kclients�city of san mfae1\proposa1s\2015\ba sanrafael 15-05-28 opeb 15-06-30 gasb 45 fee lettecdocx 111 Br,zici \Vrrr IJP•,; rrtra 101 • ya11 1: +, f;aII fiC rlI I a' t.i,W",? main: 65013x 11600 'fax* fiat)/ 4.3 8057 ',web.* r w.l.mr,r I a.�,;mc� arc ,e.om A� V CERTIFICATE OF LIABILITY INSURANCE DATE(MM/DDIYYYY) 09/01/2014 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 pollcy(les) must 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 0181288 SARGEANT INSURANCE AGENCY, LLC CONTACT ROBERT B RICE, JR. NAME: PHCN o t . (818) 547-1975 FAX No): (818) 436-5988 AOURESS. robert@sargeantinsurance.com INSURER(S) AFFORDING COVERAGE NAIC # 300 WEST GLENOAKS BLVD SUITE 104 INSURER A: AMERICAN STATES INSURANCE COMPANY INSURER a: INDIAN HARBOR INSURANCE COMPANY 19704 36940 GLENDALE CA 91202-2985 INSURED INSURERC: TECHNOLOGY INSURANCE COMPANY X COMMERCIAL GENERAL LIABILITY BARTEL-ASSOCIATES, LLC INSURER 0: JOHN BARTEL INSURER E: DAMAGEDAMAGETO RENTED 1,000,000 PREMISES Ea occurrence 5 411 BOREL AVE STE 101 SAN MATEO CA 94402-3525 INSURER F: rnVFRA(:FdS rFRTIFIrATF NIIMRFR! REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LTR TYPE OF INSURANCE ADDL SUER POLICY NUMBER POLICYEFF IYYYY POLICY OLI CYEXP /YYYY LIMITS ROBERT B. RICE, JR. kv-bert - 8. k4ae) Jr. GENERAL LIABILITY EACH OCCURRENCE $ 1,000.000 X COMMERCIAL GENERAL LIABILITY DAMAGEDAMAGETO RENTED 1,000,000 PREMISES Ea occurrence 5 MED EXP Any one person) $ 10,000 CLAIMS -MADE u OCCUR PERSONAL BADV INJURY S 1,000,000 A X 25CC12442990 09/01/2014 09/01/2015 GENERAL AGGREGATE $ 2,000,000 PRODUCTS - COMP/OPAGG $ 2,000,000 GEN'LAGGREGATE LIMIT APPLIES PER . $ X POLICY PROj F LOC AUTOMOBILE LIABILITY COEaMBINED acdtlenlSINGLE LIMIT 1,000,000 BODILY INJURY (Per person) $ ANY AUTO BODILY INJURY (Per accident) S AALL OWNED SCHEDULED AUTOS AUTOS NO OWNED HIRED AUTOS X AUTOS Ix X 25CC12442990 09/01/2014 09/01/2015 PROPERTY DAMAGE S fParacclden $ UMBRELLA LIAR OCCUR EACH OCCURRENCE $ AGGREGATE $ EXCESS LIAR CLAIMS -MADE DED RETENTION 5 $ WORKERS COMPENSATION X WC STATU- OTH- TOR I ER C AND EMPLOYERS' LIABILITY ANY PROPRIETOR/PARTNER/EXECUTIVE YIN OFFICERIMEMBEREXCLUDED? (Mandatory in NH) NIA X TWC3431682 09/01/2014 09/01/2015 E.L. EACH ACCIDENT $ 1,000,000 EL DISEASE - EA EMPLOYE $ 1,000,000 E L DISEASE - POLICY LIMIT $ 1 COQ 00� If yes, describe under DESCRIPTION OF OPERATIONS below B MISC. PROFESSIONAL LIABILITY MPP001715210 09/01/2014 09/01/2015 $2,000,000 PER CLAIM $4,000,000 ANNUAL AGGREGATE DESCRIPTION OF OPERATIONS I LOCATIONS / VEHICLES (Attach ACORD 101, Additional Remarks Schedule, If more space la required) CERTIFICATE HOLDER IS HEREBY NAMED AS AN ADDITIONAL INSURED ON POLICY #25CC12442990 AS RESPECTS OPERATIONS OF THE NAMED IINSURED ONLY. SEE ATTACHED FORMS CG8672. COVERAGE UNDER POLICY #25CC12442990 IS PRIMARY AND NON- CONTRIBUTORY ABOVE ANY OTHER INSURANCE THE CERTIFICATE HOLDER(S) MAY CARRY. 30 DAY NOTICE OF CANCELLATION. 1 F=TIFIrATF Nn1 r1FR rANCFI I ATION ACORD 25 (2010105) ©1988-2010 ACORD CORPORATION. All rights reservea. The ACORD name and logo are registered marks of ACORD SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE CITY OF SAN RAFAEL THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ATTN ANIL COMELO„ HUMAN RESOURCES DIRECTOR ACCORDANCE WITH THE POUCY PROVISIONS. 1400 FIFTH AVENUE AUTHORIZED REPRESENTATIVE SAN RAFAEL CA 94901 ROBERT B. RICE, JR. kv-bert - 8. k4ae) Jr. ACORD 25 (2010105) ©1988-2010 ACORD CORPORATION. All rights reservea. The ACORD name and logo are registered marks of ACORD BARTEL-ASSOCIATES, LLC CG 86 72 10 02 POLICY NUMBER: 25CC12442990 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED — OWNERS, LESSEES OR CONTRACTORS — COMPLETED OPERATIONS This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE Name of Person or Organization: CITY OF SAN RAFAEL, ITS OFFICERS, AGENTS, EMPLOYEES AND VOLUNTEERS Location and Description of Completed Operations: All operations of the Named Insured Additional Premium: Included (If no entry appears above, information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement.) SECTION II — WHO IS AN INSURED is amended to include as an insured the person or organization shown in the Schedule, but only to the extent you are held liable due to "your work" at the location designated and described in the schedule of this endorsement for that insured and included in the "product -completed operations hazard". PRIMARY INSURANCE: It is further agreed that such insurance as is afforded by this policy for the benefit of the above Additional Insured(s) shall be primary insurance as respects any claim, loss or liability arising out of the Named Insured's operations, and any other insurance maintained by the Additional Insured(s) shall be excess and non-contributory with the insurance provided hereunder. PROFESSIONAL SERVICES AGREEMENT/CONTRACT COMPLETION CHECKLIST AND ROUTING SLIP Below is the process for getting your professional services agreements/contracts finalized and executed. Please attach this "Completion Checklist and Routing Slip" to the front of your contract as you circulate it for review and signatures. Please use this form for all professional services agreements/contracts (not just those requiring City Council approval). This process should occur in the order presented below. Step Responsible Description Completion Department Date 1 City Attorney Review, revise, on draft,,, 1 agreement. ,aand �comment 2 Contracting Department Forward final agreement to contractor for their signature. Obtain at least two signed originals from contractor. 3 Contracting Department Agendize contractor -signed agreement for Council approval, if Council approval necessary (as defined by City Attorney/City Ordinance*). 4 City Attorney Review and approve form of agreement; bonds, and insuragce certificates and endorsements. v1 / 5 City Manager / Mayor / or Agreement executed by Council authorized Department Head official. 6 City Clerk City Clerk attests signatures, retains original v agreement and forwards copies to the contracting department. To be completed by Contracting Department: Project Manager: /`) f L f Project Name: 0 10E A C ' -`A''" 1- S ' Agendized for City Council Meeting of (if necessary): FPPC: ❑ , check if required If you have questions on this process, please contact the City Attorney's Office at 485-3080. * Council approval is required if contract is over $20,000 on a cumulative basis. ROUTING SLIP / APPROVAL FORM INSTRUCTIONS: Use this cover sheet with each submittal of a staff report before approval by the City Council. Save staff report (including this cover sheet) along with all related attachments in the Team Drive (T:) 4 CITY COUNCIL AGENDA ITEMS 4 AGENDA ITEM APPROVAL PROCESS 4 [DEPT - AGENDA TOPIC] Agenda Item # 3.8 Date of Meeting: 8/17/2015 From: Mark Moses Department: Finance Date: 8/3/2015 Topic: Actuarial Services needed to generate Retiree Healthcare Benefits valuation and information needed to comply with financial reporting requirements Subject: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH BARTEL ASSOCIATES, LLC FOR ACTUARIAL CONSULTING SERVICES RELATED TO THE CITY'S RETIREE HEALTHCARE BENEFITS PLAN Type: ® Resolution ❑ Ordinance ® Professional Services Agreement ❑ Other: APPROVALS ® Department Director Remarks: ® Finance Director Remarks: ® City Attorney Remarks: Approved LG 8/6/15 -with minor revisions to staff report. Please label "Exhibit A" to agreement. City Manager Remarks: FOR CITY CLERK ONLY File No.: Council Meeting: Disposition: