BARTEL ASSOCIATES, LLC N-2020-095

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SECTION 4 COST PROPOSAL ■ An analysis of how establishing a trust or equivalent arrangement, including PARS OPEB Trusts and CalPERS' CERBT, would affect the interest rate assumption, including timing considerations and varying investment options ■ A GASB Statement 75 report at each year-end with all required information for the City's CAFR, Notes, and RSI. ■ A planning (kick-off) meeting (telephonic) with City staff to determine the funding method and discuss required data ■ A conference call meeting with the Finance staff and possibly with an external auditor to discuss valuation results. The meeting can be in -person at the City's request, but more than one in -person meeting per valuation will incur additional fees. ■ A written report a format acceptable to a prefunding trust plan summarizing the conclusions and recommendations and documenting the analysis. The written report will include: o Executive summary o Summary of plan provisions and actuarial assumptions o All accounting information including calculation of OPEB expense and journal entries for recording the expense and changes in deferred inflows and outflows o Actuarial certification ■ The actuarial valuation report will be completed by July 31 of each year, provided the City sends us required year-end data by July 15ty of each year, and provided that in full valuation years, we receive the required census data and asset information by April 1st ■ Bartel Associates will assist the City in implementing other OPEB related GASB Statements and other pronouncements (such as GASB Guidance) and will provide ongoing professional consultation. For any projects requiring more than a minimal number of hours in excess of valuation time we will bill for our tie at the hourly rates above and provide a fee quote in advance of any work. The following items could affect our not -to -exceed fee quote: ■ We assume the subsidy benefit has been eliminated for all groups by the June 30, 2019 valuation date, and only the PEMHCA benefit remains. ■ All participant census data requested must be provided completely, accurately and free from internal inconsistencies in an Excel workbook with one record per participant. ■ The City's funding policy is either no pre -funding (pay-as-you-go) or full prefunding of the actuarially determined contributions. In those cases, no "crossover test" is required to determine the discount rate. If the City's funding policy is between those two endpoints, or if it is variable, a crossover test will be required and our fee will increase $500 for each full year. ■ If it is determined that "significant" changes have occurred which preclude use of the full valuation in the roll -forward year, additional fees will be required to determine the impact of the changes or to perform a new full valuation. Bartel Associates, LLC 16 City of Santa Ana