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CITY OF SANTA ANA — Pension/OPEB Analysis & Financing Solutions UFl is will rig and prepared to refine, modify and tailor our tasks and work product to meet the City's needs and financial parameters. For purposes of generally estimating costs associated with the work described herein, the following are estimates based on a three-phase approach to work completed in recent engagements. We believe the phase can be Individually approved if preferred by the City. Phase One; $15,000 1. Baseline Pension & OPEB Model - We charge a base rate to develop the pension model of $10,000 (Pension & OPEB Model). The baseline pension model can be developed in as little as 1-2 weeks. In order to keep costs down, we typically request that your OPEB actuary provide pay -go costs schedules (I.e., projected retiree medical premiums) to incorporate Into our model, Incorporating OPEB cash flows will depend on the responsiveness/avallability of pay -go projections from your actuary. 2. Scenario Analysis / Presentations & Meetings -Once the baseline model is complete, we charge on a time and materials basis for the costs of running different scenarios, performing additional analysis, developingfrnaking presentations, and attending meetings, This ensures that you receive the level of service and analysis thatyou require. Typically, these hourly fees are In the $5,000 range. Phase Two: $5,000 3. City Council and Committee Review Process - once staff has developed a recommend plan of solutions, we will be available to facilitate the education and review with the Budget and Pension Committee and City Council. We anticipate that the initial plan approval process may require 3-5 meetings, plus additional subsequent meetings for the implementation of selected solutions. We charge on a time and materials basis for the costs of developing/making presentations, performing requested analysis, and attending meetings. These fees are also in the $5,000 range. Phase Three: $S,000-$10,000 k. Implementation of Financing Solutions - Assistance with the implementation of proposed solutions and/or additional services will he addressed In an addendum to this agreement. Depending on the City's needs, the pension data can be Integrated Into a Financial PlanningiForecasting Model. Implementation of solutions such a Fresh Start or Synthetic Fresh Start (make additional payments to CaIPERS) will be billed on an hourly basis. The hourly costs for these services are expected to fall between $5,000—$10,000, depending on the number and complexity ofthe proposed solution(s), if the City decides to issue securities (tax-exempt exchange or P08s), such fees will be determined under a separate contract. Hourly kATR$ Due to variables In every engagement and to ensure Santa Ana maintains flexibllity to tallor the work to fit within the City's time and fiscal constraints, UN proposes to carry out its work on an actual time and materials basis with the overall costs being governed by the ffnandai llmits defined by the City, utilizing the following professional service rate schedule: "e' UFI