HomeMy WebLinkAboutAGENDA REPORT 2020 0219 REG CCSA ITEM 10DCITY OF MOORPARK, CALIFORNIA
City Council Meeting
of February 19, 2020
ACTION Approved Staff Recommendation.
BY B.Garza.
D. Consider an Agreement with Bartel Associates, LLC for Other Post-Employment
Benefits Actuarial Valuation Services. Staff Recommendation: Approve
Agreement with Bartel Associates, LLC; and authorize the City Manager to
execute the Agreement, subject to the final language approval by the City
Manager and City Attorney. (Staff: Kambiz Borhani)
Item: 10.D.
MOORPARK CITY COUNCIL
AGENDA REPORT
TO: Honorable City Council
FROM: Kambiz Borhani, Finance Director
BY: Teri Davis, Program Manager
DATE: 02/19/2020 Regular Meeting
SUBJECT: Consider an Agreement with Bartel Associates, LLC for Other Post-
Employment Benefits Actuarial Valuation Services
BACKGROUND
In June 2004, the Government Accounting Standards Board (GASB) issued Statement
No. 45, the required governmental entities to recognize the cost of Other Post-
Employment Benefits (OPEB) when they are earned (while employees are working),
rather than when they are paid (after employees retire). GASB 45 applied to employers’
financial statements and it required valuation report be prepared at least every three
years. On June 2, 2015, GASB issued new OPEB standards, Statement No. 75,
requiring the recognition and measurement of liabilities, expenditures, and deferred
outflows/inflows of resources regarding OPEB obligations now be presented on the
employer’s financial statements.
On November 21, 2007, the City of Moorpark (“City”) issued a Request for Proposal and
sent it to nine qualified actuarial firms for a response. Only two firms replied. On
April 9, 2008, the City entered into a contract with Bartel Associates, LLC (Bartel) to
provide actuarial consulting services for retirements and other benefits including
valuations needed for GASB 45. Bartel has been performing these complex valuation
services for the City since that time, and their new engagement letter covers the six-
year period of 2019/20 through 2024/25 fiscal years for a not-to-exceed amount of
$46,300.
DISCUSSION
Bartel provides quality and cost-effective actuarial consulting services to public
agencies. Bartel has completed GASB 75 studies for approximately 400 California
Item: 10.D.
332
Honorable City Council
02/19/2020 Regular Meeting
Page 2
cities, counties, and special districts and are considered experts in this field. Bartel also
provides actuarial valuation, consulting, and advisory services to large and small
retirement systems, including consulting services for agencies participating in CalPERS.
The original agreement was approved by the City Council at its February 20, 2008,
meeting. Subsequent amendments were not brought to City Council for approval
because the not-to-exceed amounts were within City Manager’s administrative
authority; however, the agreements have been reported to City Council in the past on
the City Manager or Designee Approved Contracts report. The cumulative not-to-
exceed amounts of all Bartel agreements going back to 2008 is over $50,000 and staff
is now requesting City Council’s approval to execute the $46,300 six-year agreement
with Bartel. The bidding process for this project was waived in compliance with
Resolution No. 2019-3829 Section 4.B. because the purchasing agent determined the
service can be performed competently and cost-effectively by Bartel.
FISCAL IMPACT
Funding for FY 2019/20 is already included in the City Council Adopted Budget. Future
years’ appropriations will be recommended by the City Manager in prospective budgets.
COUNCIL GOAL COMPLIANCE
This action does not support a current strategic directive.
STAFF RECOMMENDATION
Approve Agreement with Bartel Associates, LLC; and authorize the City Manager to
execute the Agreement, subject to the final language approval by the City Manager and
City Attorney.
Attachment: Agreement
333
ATTACHMENT
PROFESSIONAL SERVICES AGREEMENT BETWEEN
THE CITY OF MOORPARK AND
BARTEL ASSOCIATES, LLC FOR
ACTUARIAL SERVICES
THIS AGREEMENT, made and effective as of this _____ day of
________________________, 2020, between the City of Moorpark, a municipal corporation
(“City”) and Bartel Associates, LLC a Limited Liability Company (“Consultant”). In
consideration of the mutual covenants and conditions set forth herein, the parties agree
as follows:
WHEREAS, City has the need for OPEB GASBS 75 Actuarial Valuation Fee
Estimation, Data Request and other actuarial services; and
WHEREAS, Consultant specializes in providing such services and has the proper
work experience, certifications, and background to carry out the duties involved; and
WHEREAS, Consultant has submitted to City a Proposal dated October 18,
2019, which is attached hereto as Exhibit C.
NOW, THEREFORE, in consideration of the mutual covenants, benefits, and
premises herein stated, the parties hereto agree as follows:
1. TERM
The term of this Agreement shall be from the date of execution to June 30, 2025,
unless this Agreement is terminated or suspended pursuant to this Agreement.
2. SCOPE OF SERVICES
City does hereby retain Consultant, as an independent contractor, in a
contractual capacity to provide actuarial services, as set forth in Exhibit C. In the event
there is a conflict between the provisions of Exhibit C and this Agreement, the language
contained in this Agreement shall take precedence.
Consultant shall perform the tasks described and set forth in Exhibit C.
Consultant shall complete the tasks according to the schedule of performance which is
also set forth in Exhibit C.
Compensation for the services to be performed by Consultant shall be in
accordance with Exhibit C. Compensation shall not exceed the rates or total contract
value forty-six thousand three hundred dollars ($46,300) as stated in Exhibit C, without
a written Amendment to the Agreement executed by both parties. Payment by City to
Consultant shall be in accordance with the provisions of this Agreement.
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3. PERFORMANCE
Consultant shall at all times faithfully, competently and to the best of their ability,
experience, standard of care, and talent, perform all tasks described herein. Consultant
shall employ, at a minimum, generally accepted standards and practices utilized by
persons engaged in providing similar services as are required of Consultant hereunder
in meeting its obligations under this Agreement.
4. MANAGEMENT
The individual directly responsible for Consultant’s overall performance of the
Agreement provisions herein above set forth and to serve as principal liaison between
City and Consultant shall be Deanna Van Valer, and no other individual may be
substituted without the prior written approval of the City Manager.
The City’s contact person in charge of administration of this Agreement, and to
serve as principal liaison between Consultant and City, shall be the City Manager or the
City Manager’s designee.
5. PAYMENT
Taxpayer ID or Social Security numbers must be provided by Consultant on an
IRS W -9 form before payments may be made by City to Consultant.
The City agrees to pay Consultant monthly, in accordance with the payment
rates and terms and the schedule of payment as set forth in Exhibit C, based upon
actual time spent on the above tasks. This amount shall not exceed forty-six thousand
three hundred dollars ($46,300) for the total term of the Agreement unless additional
payment is approved as provided in this Agreement.
Consultant shall not be compensated for any services rendered in connection
with its performance of this Agreement, which are in addition to those set forth herein,
unless such additional services and compensation are authorized, in advance, in a
written amendment to this Agreement executed by both parties. The City Manager, if
authorized by City Council, may approve additional work not to exceed ten percent
(10%) of the amount of the Agreement.
Consultant shall submit invoices monthly for actual services performed. Invoices
shall be submitted on or about the first business day of each month, or as soon
thereafter as practical, for services provided in the previous month. Payment shall be
made within thirty (30) days of receipt of each invoice as to all non-disputed fees. Any
expense or reimbursable cost appearing on any invoice shall be accompanied by a
receipt or other documentation subject to approval of the City Manager or the City
Manager’s designee. If the City disputes any of Consultant’s fees or expenses, City
shall give written notice to Consultant within thirty (30) days of receipt of any disputed
fees set forth on the invoice.
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6. TERMINATION OR SUSPENSION WITHOUT CAUSE
The City may at any time, for any reason, with or without cause, suspend, or
terminate this Agreement, or any portion hereof, by serving upon the Consultant at least
ten (10) days prior written notice. Upon receipt of said notice, the Consultant shall
immediately cease all work under this Agreement, unless the notice provides otherwise.
If the City suspends or terminates a portion of this Agreement, such suspension or
termination shall not make void or invalidate the remainder of this Agreement.
The Consultant may terminate this Agreement only by providing City with written
notice no less than thirty (30) days in advance of such termination.
In the event this Agreement is terminated or suspended pursuant to this Section,
the City shall pay to Consultant the actual value of the work performed up to the time of
termination or suspension, provided that the work performed is of value to the City.
Upon termination or suspension of the Agreement pursuant to this Section, the
Consultant will submit an invoice to the City pursuant to this Agreement.
7. DEFAULT OF CONSULTANT
The Consultant’s failure to comply with the provisions of this Agreement shall
constitute a default. In the event that Consultant is in default for cause under the terms
of this Agreement, City shall have no obligation or duty to continue compensating
Consultant for any work performed after the date of default and can terminate or
suspend this Agreement immediately by written notice to the Consultant. If such failure
by the Consultant to make progress in the performance of work hereunder arises out of
causes beyond the Consultant’s control, and without fault or negligence of the
Consultant, it shall not be considered a default.
If the City Manager or his/her designee determines that the Consultant is in
default in the performance of any of the terms or conditions of this Agreement, he/she
shall cause to be served upon the Consultant a written notice of the default. The
Consultant shall have thirty (30) days after service upon it of said notice in which to cure
the default by rendering a satisfactory performance. In the event that the Consultant
fails to cure its default within such period of time, the City shall have the right,
notwithstanding any other provision of this Agreement, to terminate this Agreement
without further notice and without prejudice to any other remedy to which it may be
entitled at law, in equity or under this Agreement.
8. LIQUIDATED DAMAGES
There are no liquidated damages under this Agreement.
9. OWNERSHIP OF DOCUMENTS
Consultant shall maintain complete and accurate records with respect to sales,
costs, expenses, receipts, and other such information required by City that relate to the
performance of services under this Agreement. Consultant shall maintain adequate
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records of services provided in sufficient detail to permit an evaluation of services. All
such records shall be maintained in accordance with generally accepted accounting
principles and shall be clearly identified and readily accessible. Consultant shall provide
free access to the representatives of City or the City’s designees at reasonable times to
such books and records; shall give the City the right to examine and audit said books
and records; shall permit City to make transcripts therefrom as necessary; and shall
allow inspection of all work, data, documents, proceedings, and activities related to this
Agreement. Notification of audit shall be provided at least thirty (30) days before any
such audit is conducted. Such records, together with supporting documents, shall be
maintained for a period of three (3) years after receipt of final payment.
Upon completion of, or in the event of termination or suspension without cause of
this Agreement, all original documents, designs, drawings, maps, models, surveys, and
other documents prepared in the course of providing the services to be performed
pursuant to this Agreement shall become the sole property of the City and may be used,
reused, or otherwise disposed of by the City without the permission of the Consultant.
Consultant will provide to the City copies of all final reports and other deliverables in pdf,
or other easily readable format. Consultant will make available to City working
documents at the City’s request and in compliance with Consultant’s document release
policy.
10. INDEMNIFICATION AND HOLD HARMLESS
Indemnity for professional liability: When the law establishes a professional
standard of care for Consultant’s Services, to the fullest extent permitted by law,
Consultant shall indemnify, protect, defend and hold harmless City and any and all of its
officials, employees, and agents (“Indemnified Parties”) from and against any and all
losses, liabilities, damages, costs and expenses, including legal counsels’ fees and
costs to the extent same are caused in whole or in part by any negligent or wrongful act,
error or omission of Consultant, its officers, agents, employees or subconsultants (or
any agency or individual that Consultant shall bear the legal liability thereof) in the
performance of professional services under this Agreement.
Indemnity for other than professional liability: Other than in the performance of
professional services and to the full extent permitted by law, Consultant shall indemnify,
protect, defend and hold harmless City, and any and all of its officials, employees, and
agents from and against any liability (including liability for claims, suits, actions,
arbitration proceedings, administrative proceedings, regulatory proceedings, losses,
expenses or costs of any kind, whether actual, alleged or threatened, including legal
counsels’ fees and costs, court costs, interest, defense costs, and expert witness fees),
where the same arise out of, are a consequence of, or are in any way attributable to, in
whole or in part, the performance of this Agreement by Consultant or by any individual
or agency for which Consultant is legally liable, including but not limited to officers,
agents, employees or subcontractors of Consultant.
Consultant agrees to obtain executed indemnity agreements with provisions
identical to those set forth here in this Section from each and every subcontractor, or
any other person or entity involved by, for, with, or on behalf of Consultant in the
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performance of this Agreement. In the event Consultant fails to obtain such indemnity
obligations from others as required here, Consultant agrees to be fully responsible
according to the terms of this Section. Failure of City to monitor compliance with these
requirements imposes no additional obligations on City and will in no way act as a
waiver of any rights hereunder. This obligation to indemnify and defend City as set forth
here is binding on the successors, assigns, or heirs of Consultant and shall survive the
termination of this Agreement or this Section.
City does not and shall not waive any rights that it may have against Consultant
by reason of this Section, because of the acceptance by City, or the deposit with City, of
any insurance policy or certificate required pursuant to this Agreement. The hold
harmless and indemnification provisions shall apply regardless of whether or not said
insurance policies are determined to be applicable to any losses, liabilities, damages,
costs, and expenses described in this Section.
11. INSURANCE
Consultant shall maintain prior to the beginning of and for the duration of this
Agreement insurance coverage as specified in Exhibit A attached hereto and
incorporated herein by this reference as though set forth in full.
12. INDEPENDENT CONSULTANT
Consultant is and shall at all times remain as to the City a wholly independent
Contractor. The personnel performing the services under this Agreement on behalf of
Consultant shall at all times be under Consultant’s exclusive direction and control.
Neither City nor any of its officers, employees, or agents shall have control over the
conduct of Consultant or any of Consultant’s officers, employees, or agents, except as
set forth in this Agreement. Consultant shall not at any time or in any manner represent
that it or any of its officers, employees, or agents are in any manner officers or
employees, or agents of the City except as set forth in this Agreement. Consultant shall
not incur or have the power to incur any debt, obligation, or liability against City, or bind
City in any manner.
No employee benefits shall be available to Consultant in connection with the
performance of this Agreement. Except for the fees paid to Consultant as provided in
the Agreement, City shall not pay salaries, wages, or other compensation to Consultant
for performing services hereunder for City. City shall not be liable for compensation or
indemnification to Consultant for injury or sickness arising out of performing services
hereunder.
13. LEGAL RESPONSIBILITIES
The Consultant shall keep itself informed of local, state, and federal laws and
regulations which in any manner affect those employed by it or in any way affect the
performance of its service pursuant to this Agreement. The Consultant shall at all times
observe and comply with all such laws and regulations, including but not limited to the
Americans with Disabilities Act and Occupational Safety and Health Administration laws
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and regulations. The Consultant shall comply with and sign Exhibit B, the Scope of
Work Requirement for Professional Services Agreements Compliance with California
Government Code Section 7550, when applicable. The City, and its officers and
employees, shall not be liable at law or in equity occasioned by failure of the Consultant
to comply with this Section.
14. ANTI DISCRIMINATION
Neither the Consultant, nor any subconsultant under the Consultant, shall
discriminate in employment of persons upon the work because of race, religious creed,
color, national origin, ancestry, physical disability, mental disability, medical condition,
genetic information, marital status, sex, gender, gender identity, gender expression,
age, sexual orientation, or military and veteran status; or any other basis protected by
applicable federal, state, or local law, except as provided in Section 12940 of the
Government Code. Consultant shall have responsibility for compliance with this Section.
15. UNDUE INFLUENCE
Consultant declares and warrants that no undue influence or pressure is used
against or in concert with any officer or employee of the City in connection with the
award, terms, or implementation of this Agreement, including any method of coercion,
confidential financial arrangement, or financial inducement. No officer or employee of
the City will receive compensation, directly or indirectly from Consultant, or any officer,
employee, or agent of Consultant, in connection with the award of this Agreement or
any work to be conducted as a result of this Agreement. Violation of this Section shall
be a material breach of this Agreement entitling the City to any and all remedies at law
or in equity.
16. NO BENEFIT TO ARISE TO LOCAL EMPLOYEES
No member, officer, or employee of the City, or their designees or agents, and no
public official who exercises authority over or responsibilities with respect to the
Services during his/her tenure or for one year thereafter, shall have any interest, direct
or indirect, in any agreement or sub-agreement, or the proceeds thereof, for work to be
performed in connection with the Services performed under this Agreement.
17. CONFLICT OF INTEREST
Consultant covenants that neither they nor any officer or principal of their firm
have any interests, nor shall they acquire any interest, directly or indirectly, which will
conflict in any manner or degree with the performance of their services hereunder.
Consultant further covenants that in the performance of this Agreement, they shall
employ no person having such interest as an officer, employee, agent, or subconsultant.
Consultant further covenants that Consultant has not contracted with nor is performing
any services directly or indirectly, with the developer(s) and/or property owner(s) and/or
firm(s) and/or partnership(s) and/or public agency(ies) owning property and/or
processing an entitlement application for property in the City or its Area of Interest, now
or within the past one (1) year, and further covenants and agrees that Consultant and/or
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its subconsultants shall provide no service or enter into any contract with any
developer(s) and/or property owner(s) and/or firm(s) and/or partnership(s) and/or public
agency(ies) owning property and/or processing an entitlement application for property in
the City or its Area of Interest, while under contract with the City and for a one (1) year
time period following termination of this Agreement.
18. NOTICE
Any notice to be given pursuant to this Agreement shall be in writing, and all such
notices and any other document to be delivered shall be delivered by personal service
or by deposit in the United States mail, certified or registered, return receipt requested,
with postage prepaid, and addressed to the party for whom intended as follows:
To: City Manager
City of Moorpark
799 Moorpark Ave.
Moorpark, CA 93021
To: Mary Elizabeth Redding, FSA
Bartel Associates, LLC
411 Borel Avenue, Suite 101
San Mateo, CA 94402
Either party may, from time to time, by written notice to the other, designate a
different address or contact person, which shall be substituted for the one above
specified. Notices, payments and other documents shall be deemed delivered upon
receipt by personal service or as of the third (3rd) day after deposit in the United States
mail.
19. CHANGE IN NAME
Should a change be contemplated in the name or nature of the Consultant's legal
entity, the Consultant shall first notify the City in order that proper steps may be taken to
have the change reflected in the Agreement documents.
20. ASSIGNMENT
Consultant shall not assign this Agreement or any of the rights, duties, or
obligations hereunder. It is understood and acknowledged by the parties that Consultant
is uniquely qualified to perform the services provided for in this Agreement.
21. LICENSES
At all times during the term of this Agreement, Consultant shall have in full force
and effect, all licenses required of it by law for the performance of the services in this
Agreement.
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22. VENUE AND GOVERNING LAW
This Agreement is made, entered into, and executed in Ventura County,
California, and any action filed in any court or for arbitration for the interpretation,
enforcement or other action of the terms, conditions, or covenants referred to herein
shall be filed in the applicable court in Ventura County, California. The City and
Consultant understand and agree that the laws of the state of California shall govern the
rights, obligations, duties, and liabilities of the parties to this Agreement and also govern
the interpretation of this Agreement.
23. COST RECOVERY
In the event any action, suit or proceeding is brought for the enforcement of, or
the declaration of any right or obligation pursuant to this Agreement or as a result of any
alleged breach of any provision of this Agreement, the prevailing party shall be entitled
to recover its costs and expenses, including attorneys’ fees, from the losing party, and
any judgment or decree rendered in such a proceeding shall include an award thereof.
24. ENTIRE AGREEMENT
This Agreement and the Exhibits attached hereto contain the entire
understanding between the parties relating to the obligations of the parties described in
this Agreement. All prior or contemporaneous agreements, understandings,
representations, and statements, oral or written, are merged into this Agreement and
shall be of no further force or effect. Each party is entering into this Agreement based
solely upon the representations set forth herein and upon each party’s own independent
investigation of any and all facts such party deems material.
25. CAPTIONS OR HEADINGS
The captions and headings of the various Articles, Paragraphs, and Exhibits of
this Agreement are for convenience and identification only and shall not be deemed to
limit or define the content of the respective Articles, Paragraphs, and Exhibits hereof.
26. AMENDMENTS
Any amendment, modification, or variation from the terms of this Agreement shall
be in writing and shall be effective only upon approval by both parties to this Agreement.
27. PRECEDENCE
In the event of conflict, the requirements of the City’s Request for Proposal, if
any, and this Agreement shall take precedence over those contained in the Consultant’s
Proposal.
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28. INTERPRETATION OF AGREEMENT
Should interpretation of this Agreement, or any portion thereof, be necessary, it is
deemed that this Agreement was prepared by the parties jointly and equally, and shall
not be interpreted against either party on the ground that the party prepared the
Agreement or caused it to be prepared.
29. WAIVER
No waiver of any provision of this Agreement shall be deemed, or shall
constitute, a waiver of any other provision, whether or not similar, nor shall any such
waiver constitute a continuing or subsequent waiver of the same provision. No waiver
shall be binding unless executed in writing by the party making the waiver.
30. AUTHORITY TO EXECUTE
The person or persons executing this Agreement on behalf of the Consultant
warrants and represents that he/she has the authority to execute this Agreement on
behalf of the Consultant and has the authority to bind Consultant to the performance of
obligations hereunder.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed the day and year first above written.
CITY OF MOORPARK BARTEL ASSOCIATES, LLC
__________________________________ __________________________________
Troy Brown, City Manager Mary Elizabeth Redding, Vice President
& Actuary
Attest:
__________________________________
Ky Spangler, City Clerk
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Exhibit A
INSURANCE REQUIREMENTS
Prior to the beginning of and throughout the duration of Work, Consultant will maintain
insurance in conformance with the requirements set forth below. Consultant will use
existing coverage to comply with these requirements. If that existing coverage does not
meet requirements set forth here, Consultant agrees to amend, supplement, or endorse
the existing coverage to do so. Consultant acknowledges that the insurance coverage
and policy limits set forth in this section constitute the minimum amount of coverage
required. Any insurance proceeds available to the City in excess of the limits and
coverage required in this Agreement and which is applicable to a given loss, will be
available to the City.
Consultant shall provide the following types and amounts of insurance:
Commercial General Liability Insurance using Insurance Services Office (ISO)
“Commercial General Liability” policy form CG 00 01 or the exact equivalent. Defense
costs must be paid in addition to limits. There shall be no cross liability exclusion for
claims or suits by one insured against another. Limits are subject to review but in no
event less than $1,000,000 per occurrence for all covered losses and no less than
$2,000,000 general aggregate.
Business Auto Coverage on ISO Business Auto Coverage form CA 00 01 including
symbol 1 (Any Auto) or the exact equivalent. Limits are subject to review, but in no
event to be less than $1,000,000 per accident. If Consultant owns no vehicles, this
requirement may be satisfied by a non-owned auto endorsement to the general liability
policy described above. If Consultant or Consultant’s employees will use personal autos
in any way on this project, Consultant shall provide evidence of personal auto liability for
each such person.
Workers’ Compensation on a state-approved policy form providing statutory benefits as
required by law with employer’s liability limits no less than $1,000,000 per accident or
disease.
Professional Liability or Errors and Omissions Insurance as appropriate shall be written
on a policy form coverage specifically designed to protect against acts, errors or
omissions of the Consultant and “Covered Professional Services” as designated in the
policy must specifically include work performed under this Agreement. The policy limit
shall be no less than $1,000,000 per claim and in the aggregate. The policy must “pay
on behalf of” the insured and must include a provision establishing the insurer’s duty to
defend. The policy retroactive date shall be on or before the effective date of this
Agreement.
Excess or Umbrella Liability Insurance (Over Primary) if used to meet limit
requirements, shall provide coverage at least as broad as specified for the underlying
coverages. Coverage shall be provided on a “pay on behalf” basis, with defense costs
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payable in addition to policy limits. Policy shall contain a provision obligating insurer at
the time insured’s liability is determined, not requiring actual payment by the insured
first. There shall be no cross liability exclusion precluding coverage for claims or suits by
one insured against another. Coverage shall be applicable to the City for injury to
employees of Consultant, subconsultants, or others involved in the Work. The scope of
coverage provided is subject to approval by the City following receipt of proof of
insurance as required herein. Limits are subject to review but in no event less than
$2,000,000 aggregate.
Insurance procured pursuant to these requirements shall be written by insurers that are
admitted carriers in the State of California and with an A.M. Bests rating of A- or better
and a minimum financial size of VII.
General conditions pertaining to provision of insurance coverage by Consultant.
Consultant and the City agree to the following with respect to insurance provided by
Consultant:
1. Consultant agrees to have its insurer endorse the third party general liability
coverage required herein to include as additional insureds the City, its officials,
employees, and agents, using standard ISO endorsement CG 2010 and CG
2037 with edition acceptable to the City. Consultant also agrees to require all
contractors and subcontractors to do likewise.
2. No liability insurance coverage provided to comply with this Agreement shall
prohibit Consultant, or Consultant’s employees, or agents, from waiving the right
to subrogation prior to a loss. Consultant agrees to waive subrogation rights
against the City regardless of the applicability of any insurance proceeds, and to
require all contractors and subcontractors to do likewise.
3. All insurance coverage and limits provided by Contractor and available or
applicable to this Agreement are intended to apply to the full extent of the
policies. Nothing contained in this Agreement or any other agreement relating to
the City or its operation limits the application of such insurance coverage.
4. None of the coverages required herein will be in compliance with these
requirements if they include limiting endorsement of any kind that has not been
first submitted to the City and approved in writing.
5. No liability policy shall contain any provision or definition that would serve to
eliminate so-called “third party action over” claims, including any exclusion for
bodily injury to an employee of the insured or of any contractor or subcontractor.
6. All coverage types and limits required are subject to approval, modification, and
additional requirements by the City, as the need arises. Consultant shall not
make any reductions in scope of coverage (e.g. elimination of contractual liability
or reduction of discovery period) that may affect the City’s protection without the
City’s prior written consent.
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7. Proof of compliance with these insurance requirements, consisting of certificates
of insurance evidencing all of the coverages required and an additional insured
endorsement to Consultant’s general liability policy, shall be delivered to city at or
prior to the execution of this Agreement. In the event such proof of any insurance
is not delivered as required, or in the event such insurance is canceled or
reduced at any time and no replacement coverage is provided, the City has the
right, but not the duty, to obtain any insurance it deems necessary to protect its
interests under this or any other Agreement and to pay the premium. Any
premium so paid by the City shall be charged to and promptly paid by Consultant
or deducted from sums due Consultant, at the City’s option.
8. Certificate(s) are to reflect that the insurer will provide thirty (30) days notice to
the City of any cancellation or reduction of coverage. Consultant agrees to
require its insurer to modify such certificates to delete any exculpatory wording
stating that failure of the insurer to mail written notice of cancellation or reduction
of coverage imposes no obligation, or that any party will “endeavor” (as opposed
to being required) to comply with the requirements of the certificate.
9. It is acknowledged by the parties of this Agreement that all insurance coverage
required to be provided by Consultant or any subcontractor, is intended to apply
first and on a primary, non-contributing basis in relation to any other insurance or
self-insurance available to the City.
10. Consultant agrees to ensure that subcontractors, and any other party involved
with the Work who is brought onto or involved in the Work by Consultant, provide
the same minimum insurance required of Consultant. Consultant agrees to
monitor and review all such coverage and assumes all responsibility for ensuring
that such coverage is provided in conformity with the requirements of this
section. Consultant agrees that upon request, all agreements with subcontractors
and others engaged in the Work will be submitted to the City for review.
11. Consultant agrees not to self-insure or to use any self-insured retentions or
deductibles on any portion of the insurance required herein and further agrees
that it will not allow any contractor, subcontractor, Architect, Engineer, or other
entity or person in any way involved in the performance of Work contemplated by
this Agreement to self-insure its obligations to the City. If Consultant’s existing
coverage includes a deductible or self-insured retention, the deductible or self-
insured retention must be declared to the City. At that time, the City shall review
options with the Consultant, which may include reduction or elimination of the
deductible or self-insured retention, substitution of other coverage, or other
solutions.
12. The City reserves the right at any time during the term of the Agreement to
change the amounts and types of insurance required by giving the Consultant
ninety (90) days advance written notice of such change. If such change results in
substantial additional cost to the Consultant, the City will negotiate additional
compensation proportional to the increased benefit to the City.
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13. For purposes of applying insurance coverage only, this Agreement will be
deemed to have been executed immediately upon any party hereto taking any
steps that can be deemed to be in furtherance of or towards performance of this
Agreement.
14. Consultant acknowledges and agrees that any actual or alleged failure on the
part of the City to inform Consultant of non-compliance with an insurance
requirement in no way imposes any additional obligations to the City nor does it
waive any rights hereunder in this or any other regard.
15. Consultant will renew the required coverage annually as long as the City, or its
employees or agents face an exposure from operations of any type pursuant to
this Agreement. This obligation applies whether or not the Agreement is canceled
or terminated for any reason. Termination of this obligation is not effective until
the City executes a written statement to that effect.
16. Consultant shall provide proof that policies of insurance required herein expiring
during the term of this Agreement have been renewed or replaced with other
policies providing at least the same coverage. Proof that such coverage has
been ordered shall be submitted prior to expiration. A coverage binder or letter
from Consultant’s insurance agent to this effect is acceptable. A certificate of
insurance and/or additional insured endorsement as required in these
specifications applicable to the renewing or new coverage must be provided to
the City within five days of the expiration of coverage.
17. The provisions of any Workers’ Compensation or similar act will not limit the
obligations of Consultant under this Agreement. Consultant expressly agrees not
to use any statutory immunity defenses under such laws with respect to the City,
its employees, officials and agents.
18. Requirements of specific coverage features or limits contained in this section are
not intended as limitations on coverage, limits, or other requirements nor as a
waiver of any coverage normally provided by any given policy. Specific reference
to a given coverage feature is for purposes of clarification only as it pertains to a
given issue, and is not intended by any party or insured to be limiting or all-
inclusive.
19. These insurance requirements are intended to be separate and distinct from any
other provision in this Agreement and are intended by the parties here to be
interpreted as such.
20. The requirements in this section supersede all other sections and provisions of
this Agreement to the extent that any other section or provision conflicts or
impairs the provisions of this section.
21. Consultant agrees to be responsible for ensuring that no contract used by any
party involved in any way with the Work reserves the right to charge the City or
Consultant for the cost of additional insurance coverage required by this
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Agreement. Any such provisions are to be deleted with reference to the City. It is
not the intent of the City to reimburse any third party for the cost of complying
with these requirements. There shall be no recourse against the City for payment
of premiums or other amounts with respect thereto.
22. Consultant agrees to provide immediate notice to City of any claim or loss
against Consultant arising out of the work performed under this Agreement. The
City assumes no obligation or liability by such notice, but has the right (but not
the duty) to monitor the handling of any such claim or claims if they are likely to
involve the City.
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Exhibit B
CITY OF MOORPARK
Scope of Work Requirement for Professional Services Agreements
Compliance with California Government Code Section 7550
Consultant shall sign and include this page in any document or written reports prepared by
Consultant for the City of Moorpark (City) to which California Government Code Section 7550
(Government Code § 7550) applies. Government Code §7550 reads:
“(a) Any document or written report prepared for or under the direction of a state
or local agency, that is prepared in whole or in part by nonemployees of the
agency, shall contain the numbers and dollar amounts of all contracts and
subcontracts relating to the preparation of the document or written report; if the
total cost for the work performed by nonemployees of the agency exceeds five
thousand dollars ($5,000). The contract and subcontract numbers and dollar
amounts shall be contained in a separate section of the document or written
report.
(b) When multiple documents or written reports are the subject or product of the
contract, the disclosure section may also contain a statement indicating that the
total contract amount represents compensation for multiple documents or written
reports.”
For all Professional Services Agreement with a total dollar value in excess of $5,000, a signed
and completed copy of this form must be attached to all documents or completed reports
submitted to the City pursuant to the Scope of Work.
Does the dollar value of this Professional Services Agreement exceed $5,000?
Yes No
If yes, then the following information must be provided in compliance with
Government Code § 7550:
1. Dollar amount of Agreement/Contract: $ ____________
2. Dollar amount of Subcontract: $ ____________
3. Does the total contract amount represent compensation for multiple
documents or written reports? Yes No
I have read the foregoing Code section and will comply with Government Code §7550.
BARTEL ASSOCIATES, LLC
__________________________________
______________________
Mary Elizabeth Redding, Vice President
& Actuary
Date
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411 Borel Avenue, Suite 101 San Mateo, California 94402
main: 650/377-1600 fax: 650/345-8057 web: www.bartel-associates.com
October 18, 2019
Kambiz Borhani
Finance Director
City of Moorpark
799 Moorpark Avenue
Moorpark, CA 93021
Re: OPEB GASBS 75 Actuarial Valuation Fee Estimate & Data Request
Dear Mr. Borhani:
Bartel Associates would be pleased to provide the City of Moorpark actuarial consulting
services. This letter summarizes the project scope and our fee estimate for the June 30, 2019,
June 30, 2021, and June 30, 2023 actuarial valuations of the City’s retiree healthcare plan. These
valuations will provide the City with financial information for its OPEB plan for the 6-year
period 2019/20 through 2024/25 fiscal years.
Background
Bartel Associates prepared a June 30, 2017 OPEB funding valuation which calculated the
actuarially determined contribution (ADC) for the 2017/18 & 2018/19 fiscal years, and provided
the basis for GASBS 75 accounting information for fiscal 2017/18 and 2018/19.
The new June 30, 2019 valuation will provide the City a “funding report” suitable for CERBT’s
requirements, with the Plan’s June 30, 2019 funded status and recommended contributions
(ADC) for the 2019/20 and 2020/21 fiscal years. We will also prepare 2 separate GASBS 75
reports with accounting information for the 2019/20 and 2020/21 fiscal years. These reports will
include all actuarial information necessary for GASBS 75 including Notes, RSI, supporting
exhibits and calculations, and journal entries. We believe issuing separate reports for funding and
accounting improves clarity.
The following 2 valuations as of June 30, 2021 and June 30, 2023 will provide the recommended
contributions (ADC) for 2021/22 and 2022/23, and 2023/24 and 2024/25, respectively. The
related GASBS 75 accounting information will be for the same fiscal years, 2021/22 through
2024/25.
Fees/Timing
Below we propose a basic valuation with the option to add services for a full consulting
valuation:
•Basic Valuation – includes all information required to comply with GASBS 75, as well as
a summary of the plan provisions, census data, actuarial methods and assumptions, plan
liabilities as of the valuation date, and the actuarially determined contributions for 2 years
and preparation of all required CERBT forms
. It does not include a meeting, but we will review the report with you over the phone. The
GASBS 75 accounting report will include journal entries, following the California Committee
Exhibit C
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Kambiz Borhani
October 18, 2019
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411 Borel Avenue, Suite 101 San Mateo, California 94402
main: 650/377-1600 fax: 650/345-8057 web: www.bartel-associates.com
on Municipal Accounting (CCMA) White Paper.
Project
Approximate
Start/Completion
Date (for the 1st
valuation as of
June 30, 2019)*
6/30/19
Valuation
6/30/21
Valuation
6/30/23
Valuation
Fees Fees Fees
Basic valuation report, including
funded status and recommended
contributions for 2 years
October 2019/
December 2019 9,000 9,600 10,200
GASBS 75 accounting report for
fiscal year beginning on the
valuation date
July 2020/
August 2020 2,400 2,800 3,200
GASBS 75 accounting report for
fiscal year beginning 1 year from
the valuation date (based on the
valuation rolled forward 1 year to
the measurement date)
July 2021/
August 2021 2,700 3,000 3,400
Subtotal for each 2-year valuation
cycle
$14,100 $15,400 $16,800
Total for 6 years $46,300
*Timing for the 2 subsequent valuations would be similar
Option: Consulting Valuation – includes an in-person meeting at the City focusing on
understanding the plan’s funded status and planning for its financial management. The
meeting and report would include:
• Review of funding and GASBS 75 valuation reports
• Discussion of City’s funding policy and projected contributions
• Historical valuation results and demographic information
• Historical asset information including returns
• Gain and loss analysis with changes in the Actuarial Accrued Liability since the prior
valuation;
• Funded status and recommended contribution levels
• Results provided separately for cash benefits versus the implied subsidy
• 10-year projection of benefit payments and recommended contributions
• Statistical comparison of City results with other Bartel Associates OPEB valuations
• Detailed participant statistics, including summary of healthcare plan and coverage
elections
• Summary of upcoming OPEB and CalPERS issues.
The in-person meeting can be with City staff to review the initial valuation results, or, at the
City’s option, we can review preliminary results over the phone and instead present the
valuation results in person to the City Council.
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Kambiz Borhani
October 18, 2019
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411 Borel Avenue, Suite 101 San Mateo, California 94402
main: 650/377-1600 fax: 650/345-8057 web: www.bartel-associates.com
A consulting valuation mirrors the services we have provided in some previous valuations.
The additional fee for a full consulting valuation is
• $2,000 for the 6/30/19 valuation
• $2,200 for the 6/30/21 valuation
• $2,400 for the 6/30/23 valuation.
The City may choose the consulting option for any or none of the 3 valuations.
We will bill the City monthly for project progress. The following rates change annually and
apply to any out of scope work:
Position
2019 Hourly
Rates
Partner & Vice President (Redding) $ 290
Assistant Vice President (Van Valer) 260
Associate Actuary 210
Senior Actuarial Analyst 190
Actuarial Analyst 155
Our fee quote for each valuation assumes:
The City has made no changes to its retiree healthcare plan, healthcare providers (CalPERS),
or funding policy to contribute the full ADC (Actuarially Determined Contribution) since the
last actuarial valuation as of June 30, 2017. Changes in benefit provisions or health care
providers will likely incur additional fees at least in the year of the change.
Participant census data requested will be provided completely and accurately in an Excel
workbook with one record per participant. All plan, financial, and census information
requested will be provided and be internally consistent.
There will be no additional charges for expenses (e.g., travel, telephone, copying, etc.). The
hourly rates above include our costs for these items.
Please note that our fees will be higher if substantial plan changes occur which preclude the
use of the valuation for GASBS 75 disclosure information in the 2nd year.
Please note that our fee estimate will be higher if:
Any of the above conditions are not met.
Results are needed separately for employee groups.
Results are needed for additional assumptions, funding methods, contribution policies, or
alternative plan designs.
The City requests additional meetings.
The City requests assistance with footnotes under GASBS 75 beyond our GASBS 75 report
(which will contain all actuarial related information needed for footnotes).
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Kambiz Borhani
October 18, 2019
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411 Borel Avenue, Suite 101 San Mateo, California 94402
main: 650/377-1600 fax: 650/345-8057 web: www.bartel-associates.com
Data Requirements
In order for us to begin the June 30, 2019 OPEB valuation, we will need the following
information:
General Information
Summary of any changes in OPEB plan provisions.
Copies of the most recent MOUs for bargained employee groups and agreements for
unrepresented groups if that information is 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, 2017 valuation.
CERBT June 30, 2019 trust statement including contributions and dates made.
Participant Census Data
We recommend the City request a copy of its June 30, 2019 CalPERS PEMHCA data extract
to use as the basis of the census data. You can email CalPERS at CERBT4U@calpers.ca.gov
with the desired date of the extract. Once you have the data extract, you should make the
following updates to the files:
1. Add a note to indicate any retirees and actives who are not eligible to participate in the
City’s retiree healthcare plan, for example, if retirees did not retire directly from the City,
or seasonal or part-time workers not eligible for PEMHCA benefits.
2. If not already in the active data file, include a column indicating the pension plan
tier/formula (e.g. 2%@55, 2%@62, etc.).
3. Add a column for PERSable compensation (annual 17/18 paid, or a current hourly,
biweekly, or monthly rate of pay) into the active file, and indicate what period it covers.
Overall, the files should contain the following information:
• Active Employee Data - name, employee number (not Social Security number), gender,
birth date, hire date, medical plan, single/2-party/family coverage, CalPERS pension plan
tier (e.g. 2%@55, 2%@62, etc.), total CalPERS service including service at other agencies
(if available), City service, and annualized PERSable compensation. Indicate the pay
period for the compensation reported. Include any active employees who have waived
healthcare coverage.
• 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, spouse's birth date (if
available), Medicare coverage indicator, portion of premium paid by the City, and portion
of premium paid by the retiree. Include any retirees or surviving spouses of retirees who
have waived coverage.
Regarding the census data, please note:
• The census data provided should be a snapshot of active employees and retirees as of the
June 30, 2019 valuation date.
• In order to maintain confidentiality, please do not provide Social Security numbers for the
employee number.
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Kambiz Borhani
October 18, 2019
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411 Borel Avenue, Suite 101 San Mateo, California 94402
main: 650/377-1600 fax: 650/345-8057 web: www.bartel-associates.com
• 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 (employee-
subscriber) in an Excel workbook. If the City needs our help to merge and reconcile data,
our fees will be higher.
• 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.
GASBS 75 Accounting Report Data
We will begin working on the 2019 valuation before we receive the following information.
Fiscal year end June 30, 2020 GASBS 75 Accounting Report Information
• Covered employee payroll for fiscal year 2019/20 – the total payroll (gross W-2 Medicare
wages) for all employees who could be eligible for OPEB benefits (including those
terminated or retired during the fiscal year).
• OPEB retiree pay-as-you-go costs (retiree health insurance subsidy paid by City) and
administrative expenses (PEMHCA, CERBT, or other) paid by the City during fiscal year
2019/20. Indicate portion of payments, if any, that were reimbursed by the trust.
• Employer contribution made to the trust during fiscal year 2019/20.
Fiscal year end June 30, 2021 GASBS 75 Accounting Report Information
• Covered employee payroll for fiscal year 2020/21 – the total payroll (gross W-2 Medicare
wages) for all employees who could be eligible for OPEB benefits (including those
terminated or retired during the fiscal year).
• OPEB retiree pay-as-you-go costs (retiree health insurance subsidy paid by City) and
administrative expenses (PEMHCA, CERBT, or other) made during fiscal year 2020/21.
Indicate portion of payments, if any, that were reimbursed by the trust.
• Employer contribution made to the trust during fiscal year 2020/21.
• Confirm no substantial changes to the retiree medical benefits or OPEB trust since the prior
year.
• Participant head counts (actives, retirees, and waived retirees) as of June 30, 2020
(measurement date), if available.
We may need additional data depending on our review of the City's retiree medical plan design.
We will provide separate additional data requests for the June 30, 2021 and June 30, 2023
valuations.
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Kambiz Borhani
October 18, 2019
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411 Borel Avenue, Suite 101 San Mateo, California 94402
main: 650/377-1600 fax: 650/345-8057 web: www.bartel-associates.com
Timing
Normally, the valuation results meeting is set about 6-8 weeks after we receive all the requested
information and the City replies to any questions we may have after our initial data review.
Please let us know your required timing for receipt of the 2020 GASBS 75 report; we’ll work
with you to meet your schedule.
We look forward to continue working with you and the City. Please call or email me
(mbredding@bartel-associates.com; 650-377-1617) or Deanna Van Valer (dvanvaler@bartel-
associates.com; 650-377-1612) with any questions.
Sincerely,
Mary Elizabeth Redding, FSA
Vice President & Actuary
c: Deanna Van Valer, Bartel Associates, LLC
Irmina Lumbad, City of Moorpark
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