BICKMORE & ASSOCIATES, INC. 2-2016

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3) SCOPE OF SERVICES a) The objective of this review is to provide fiscal year ending June 30 2016 and 2017, a basis for the recognition of Other Post Employment Benefits (OPEB) costs as prescribed in GASB 45 and to provide relevant information about the actuarial accrued liabilities as presented in the fiscal year ending June 30, 2015 Comprehensive Annual Financial Report (CAFR) note disclosure. The 2015 CAFR can be found on the City's website at http://www.ci.s.anta- ana.ca, us/finance/cafr/default asp. The City does not participate in the CalPERS California Employers' Retiree Benefits Trust. However, the procedures used must comply with CalPERS' Actuarial Assumptions and Methods required for participation in the California Employers' Retiree Benefits Trust (CERBT), Specifically, the selected firm will provide: b A determination of: (1) Plan obligations, (2) Actuarial present value of total projected benefits, (3) Actuarial accrued liability, (4) Actuarial value of assets, (5) Unfunded actuarial accrued liability, (6) Normal cost, (7) Annual required contribution as a level dollar amount and as a level percentage of covered payroll, and (8) Net OPEB obligation for disclosure under GASB 45; ii) An analysis of how establishing a trust or equivalent arrangement, including CalPERS' CERBT, would affect the interest rate assumption, including timing considerations and varying investment options; iii) A summary of the actuarial basis and assumptions used; and iv) An executive summary of the results. b) Completion of the study will require: i) Meeting with City staff to determine an appropriate actuarial cost method and selection of data; ii) Estimating the amount of reserves needed for the outstanding liability; iii) Preparing a written report in a format acceptable to a prefunding trust plan summarizing the conclusions and recommendations and documenting the analysis; and iv) Attending one or more meetings with the Finance staff and possibly with an external auditor to discuss the report. 4) TERM OF AGREEMENT AND PROJECT DEADLINES a) The term of the agreement is one (1) year. The City may, at its option, may extend the agreement with the same or more limited scope of required services for up to two (2) additional one-year terms, contingent upon direction of the City Manager. b) The project, which includes the roll -forward information for fiscal year ending June 30, 2017, must be completed by September 15, 2016.