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HomeMy WebLinkAbout2009 CON Epler Company - Actuarial Valuation ServicesAGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY AND The EPLER Company THIS AGREEMENT is entered into this 8th day of September 2009, by and between the CITY OF NATIONAL CITY, a municipal corporation (the "CITY"), and The EPLER Company, an independent Benefits and Compensation Consuslant and Actuarial (the "CONSULTANT"). RECITALS WHEREAS, the CITY desires to employ a CONSULTANT to provide independent consultant and actuarial services. WHEREAS, the CITY has determined that the CONSULTANT is an independent benefits and compensation consuslant and actuarial and is qualified by experience and ability to perform the services desired by the CITY, and the CONSULTANT is willing to perform such services. NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS FOLLOWS: 1. ENGAGEMENT OF CONSULTANT. The CITY hereby agrees to engage the CONSULTANT, and the CONSULTANT hereby agrees to perform the services hereinafter set forth in accordance with all terms and conditions contained herein. The CONSULTANT represents that all services required hereunder will be performed directly by the CONSULTANT or under direct supervision of the CONSULTANT. 2. SCOPE OF SERVICES. The CONSULTANT will perform services as set forth in the attached Exhibit "A". The CONSULTANT shall be responsible for all research and reviews related to the work and shall not rely on personnel of the CITY for such services, except as authorized in advance by the CITY. The CONSULTANT shall appear at meetings cited in Exhibit "A" to keep staff and City Council advised of the progress on the Project. The CITY may unilaterally, or upon request from the CONSULTANT, from time to time reduce or increase the Scope of Services to be performed by the CONSULTANT under this Agreement. Upon doing so, the CITY and the CONSULTANT agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction or increase in the compensation associated with said change in services, not to exceed a factor of 10% from the base amount. 3. PROJECT COORDINATION AND SUPERVISION. Jeanette Ladrido, Finance Director, hereby is designated as the Project Coordinator for the CITY and will monitor the progress and execution of this Agreement. The CONSULTANT shall assign a single Project Director to provide supervision and have overall responsibility for the progress and execution of this Agreement for the CONSULTANT. Marilyn Jones, Vice President & Actuary, thereby is designated as the Project Director for the CONSULTANT. 4. COMPENSATION AND PAYMENT. The compensation for the CONSULTANT shall be based on monthly billings covering actual work performed. Billings shall include labor classifications, respective rates, hours worked and also materials, if any. The total cost for all work described in Exhibit "A" shall not exceed the Fee Proposal of $6,000 given in Exhibit "A" (the Base amount) without prior written authorization from the City Manger. Monthly invoices will be processed for payment and remitted within thirty (30) days from receipt of invoice, provided that work is accomplished consistent with Exhibit "A", as determined by the CITY. The CONSULTANT shall maintain all books, documents, papers, employee time sheets, accounting records, and other evidence pertaining to costs incurred, and shall make such materials available at its office at all reasonable times during the term of this Agreement and for three (3) years from the date of final payment under this Agreement, for inspection by the CITY, and for furnishing of copies to the CITY, if requested. 5. ACCEPTABILITY OF WORK. The City shall decide any and all questions which may arise as to the quality or acceptability of the services performed and the manner of performance, the acceptable completion of this Agreement, and the amount of compensation due. In the event the CONSULTANT and the City cannot agree to the quality or acceptability of the work, the manner of performance and/or the compensation payable to the CONSULTANT in this Agreement, the City or the CONSULTANT shall give to the other written notice. Within ten (10) business days, the CONSULTANT and the City shall each prepare a report which supports their position and file the same with the other party. The City shall, with reasonable diligence, determine the quality or acceptability of the work, the manner of performance and/or the compensation payable to the CONSULTANT. 6. LENGTH OF AGREEMENT. Completion dates or time durations for specific portions of the Project are set forth in Exhibit "A". 7. DISPOSITION AND OWNERSHIP OF DOCUMENTS. The Memoranda, Reports, Maps, Drawings, Plans, Specifications, and other documents prepared by the CONSULTANT for this Project, whether paper or electronic, shall become the property of the CITY for use with respect to this Project, and shall be turned over to the CITY upon completion of the Project, or any phase thereof, as contemplated by this Agreement. 2 City's Standard Agreement —2009 revision Contemporaneously with the transfer of documents, the CONSULTANT hereby assigns to the CITY, and CONSULTANT thereby expressly waives and disclaims any copyright in, and the right to reproduce, all written material, drawings, plans, specifications, or other work prepared under this Agreement, except upon the CITY's prior authorization regarding reproduction, which authorization shall not be unreasonably withheld. The CONSULTANT shall, upon request of the CITY, execute any further document(s) necessary to further effectuate this waiver and disclaimer. The CONSULTANT agrees that the CITY may use, reuse, alter, reproduce, modify, assign, transfer, or in any other way, medium, or method utilize the CONSULTANT'S written work product for the CITY's purposes, and the CONSULTANT expressly waives and disclaims any residual rights granted to it by Civil Code Sections 980 through 989 relating to intellectual property and artistic works. Any modification or reuse by the CITY of documents, drawings, or specifications prepared by the CONSULTANT shall relieve the CONSULTANT from liability under Section 14, but only with respect to the effect of the modification or reuse by the CITY, or for any liability to the CITY should the documents be used by the CITY for some project other than what was expressly agreed upon within the Scope of this project, unless otherwise mutually agreed. 8. INDEPENDENT CONSULTANT. Both parties hereto in the performance of this Agreement will be acting in an independent capacity and not as agents, employees, partners, or joint venturers with one another. Neither the CONSULTANT nor the CONSULTANT'S employees are employees of the CITY, and are not entitled to any of the rights, benefits, or privileges of the CITY's employees, including but not limited to retirement, medical, unemployment, or workers' compensation insurance. This Agreement contemplates the personal services of the CONSULTANT and the CONSULTANT's employees, and it is recognized by the parties that a substantial inducement to the CITY for entering into this Agreement was, and is, the professional reputation and competence of the CONSULTANT and its employees. Neither this Agreement nor any interest herein may be assigned by the CONSULTANT without the prior written consent of the CITY. Nothing herein contained is intended to prevent the CONSULTANT from employing or hiring as many employees, or SUBCONSULTANTS, as the CONSULTANT may deem necessary for the proper and efficient performance of this Agreement. All agreements by CONSULTANT with its SUBCONSULTANT(S) shall require the SUBCONSULTANT(S) to adhere to the applicable terms of this Agreement. 9. CONTROL. Neither the CITY nor its officers, agents, or employees shall have any control over the conduct of the CONSULTANT or any of the CONSULTANT'S employees, except as herein set forth, and the CONSULTANT or the CONSULTANT'S agents, servants, or employees are not in any manner agents, servants, or employees of the CITY, it being understood that the CONSULTANT its agents, servants, and employees are as to the CITY wholly independent CONSULTANT, and that the CONSULTANT'S obligations to the CITY are solely such as are prescribed by this Agreement. 3 City's Standard Agreement-2009 revision 10. COMPLIANCE WITH APPLICABLE LAW. The CONSULTANT, in the performance of the services to be provided herein, shall comply with all applicable State and federal statutes and regulations, and all applicable ordinances, rules, and regulations of the City of National City, whether now in force or subsequently enacted. The CONSULTANT and each of its SUBCONSULTANT(S), shall obtain and maintain a current City of National City business license prior to and during performance of any work pursuant to this Agreement. 11. LICENSES, PERMITS, ETC. The CONSULTANT represents and covenants that it has all licenses, permits, qualifications, and approvals of whatever nature that are legally required to practice its profession. The CONSULTANT represents and covenants that the CONSULTANT shall, at its sole cost and expense, keep in effect at all times during the term of this Agreement, any license, permit, or approval which is legally required for the CONSULTANT to practice its profession. 12. STANDARD OF CARE. A. The CONSULTANT, in performing any services under this Agreement, shall perform in a manner consistent with that level of care and skill ordinarily exercised by members of the CONSULTANT'S trade or profession currently practicing under similar conditions and in similar locations. The CONSULTANT shall take all special precautions necessary to protect the CONSULTANT's employees and members of the public from risk of harm arising out of the nature of the work and/or the conditions of the work site. B. Unless disclosed in writing prior to the date of this agreement, the CONSULTANT warrants to the CITY that it is not now, nor has it for the five (5) years preceding, been debarred by a governmental agency or involved in debarment, arbitration or litigation proceedings concerning the CONSULTANT'S professional performance or the furnishing of materials or services relating thereto. C. The CONSULTANT is responsible for identifying any unique products, treatments, processes or materials whose availability is critical to the success of the project the CONSULTANT has been retained to perform, within the time requirements of the CITY, or, when no time is specified, then within a commercially reasonable time. Accordingly, unless the CONSULTANT has notified the CITY otherwise, the CONSULTANT warrants that all products, materials, processes or treatments identified in the project documents prepared for the CITY are reasonably commercially available. Any failure by the CONSULTANT to use due diligence under this sub -paragraph will render the CONSULTANT liable to the CITY for any increased costs that result from the CITY's later inability to obtain the specified items or any reasonable substitute within a price range that allows for project completion in the time frame specified or, when not specified, then within a commercially reasonable time. 13. NON-DISCRIMINATION PROVISIONS. The CONSULTANT shall not discriminate against any employee or applicant for employment because of age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. The CONSULTANT will take positive action to insure that applicants are employed without regard to their age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. Such action shall include but not be limited to the following: employment, upgrading, demotion, transfer, 4 City's Standard Agreement —2009 revision recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The CONSULTANT agrees to post in conspicuous places available to employees and applicants for employment any notices provided by the CITY setting forth the provisions of this non-discrimination clause. 14. CONFIDENTIAL INFORMATION. The CITY may from time to time communicate to the CONSULTANT certain confidential information to enable the CONSULTANT to effectively perform the services to be provided herein. The CONSULTANT shall treat all such information as confidential and shall not disclose any part thereof without the prior written consent of the CITY. The CONSULTANT shall limit the use and circulation of such information, even within its own organization, to the extent necessary to perform the services to be provided herein. The foregoing obligation of this Section 13, however, shall not apply to any part of the information that (i) has been disclosed in publicly available sources of information; (ii) is, through no fault of the CONSULTANT, hereafter disclosed in publicly available sources of information; (iii) is already in the possession of the CONSULTANT without any obligation of confidentiality; or (iv) has been or is hereafter rightfully disclosed to the CONSULTANT by a third party, but only to the extent that the use or disclosure thereof has been or is rightfully authorized by that third party. The CONSULTANT shall not disclose any reports, recommendations, conclusions or other results of the services or the existence of the subject matter of this Agreement without the prior written consent of the CITY. In its performance hereunder, the CONSULTANT shall comply with all legal obligations it may now or hereafter have respecting the information or other property of any other person, firm or corporation. CONSULTANT shall be liable to CITY for any damages caused by breach of this condition, pursuant to the provisions of Section 14. 15. INDEMNIFICATION AND HOLD HARMLESS. The CONSULTANT agrees to defend, indemnify, and hold harmless the City of National City, its officers and employees, against and from any and all liability, loss, damages to property, injuries to, or death of any person or persons, and all claims, demands, suits, actions, proceedings, reasonable attorneys' fees, and defense costs, of any kind or nature, including workers' compensation claims, of or by anyone whomsoever, resulting from or arising out of the CONSULTANT'S negligent performance of this Agreement. 16. WORKERS' COMPENSATION. The CONSULTANT shall comply with all of the provisions of the Workers' Compensation Insurance and Safety Acts of the State of California, the applicable provisions of Division 4 and 5 of the California Government Code and all amendments thereto; and all similar State or federal acts or laws applicable; and shall indemnify, and hold harmless the CITY and its officers, and employees from and against all claims, demands, payments, suits, actions, proceedings, and judgments of every nature and description, including reasonable attorney's fees and defense costs presented, brought or recovered against the CITY or its officers, employees, or volunteers, for or on account of any liability under any of said acts which may be incurred by reason of any work to be performed by the CONSULTANT under this Agreement. 5 City's Standard Agreement —2009 revision 17. INSURANCE. The CONSULTANT, at its sole cost and expense, shall purchase and maintain, and shall require its SUBCONSULTANT(S), when applicable, to purchase and maintain throughout the term of this agreement, the following insurance policies: ® A. If checked, Professional Liability Insurance (errors and omissions) with minimum limits of $1,000,000 per occurrence. B. Automobile Insurance covering all bodily injury and property damage incurred during the performance of this Agreement, with a minimum coverage of $1,000,000 combined single limit per accident. Such automobile insurance shall include owned, non -owned, and hired vehicles ("any auto"). C. Commercial General Liability Insurance, with minimum limits of $2,000,000 per occurrence and 4,000,000 aggregate, covering all bodily injury and property damage arising out of its operations under this Agreement. D. Workers' Compensation Insurance in an amount sufficient to meet statutory requirements covering all of CONSULTANT'S employees and employers' liability insurance with limits of at least $1,000,000 per accident. In addition, the policy shall be endorsed with a waiver of subrogation in favor of the City. Said endorsement shall be provided prior to commencement of work under this Agreement. If CONSULTANT has no employees subject to the California Workers' Compensation and Labor laws, CONSULTANT shall execute a Declaration to that effect. Said Declaration shall be provided to CONSULTANT by CITY. E. The aforesaid policies shall constitute primary insurance as to the CITY, its officers, employees, and volunteers, so that any other policies held by the CITY shall not contribute to any loss under said insurance. Said policies shall provide for thirty (30) days prior written notice to the CITY of cancellation or material change. F. Said policies, except for the professional liability and workers' compensation policies, shall name the CITY and its officers, agents and employees as additional insureds, and separate additional insured endorsements shall be provided. G. If required insurance coverage is provided on a "claims made" rather than "occurrence" form, the CONSULTANT shall maintain such insurance coverage for three years after expiration of the term (and any extensions) of this Agreement. In addition, the "retro" date must be on or before the date of this Agreement. H. Any aggregate insurance limits must apply solely to this Agreement. I. Insurance shall be written with only California admitted companies which hold a current policy holder's alphabetic and financial size category rating of not less than A VIII according to the current Best's Key Rating Guide, or a company equal financial stability that is approved by the City's Risk Manager. In the event coverage is provided by non -admitted "surplus lines" carriers, they must be included on the most recent California List of Eligible Surplus Lines Insurers (LESLI list) and otherwise meet rating requirements. J. This Agreement shall not take effect until certificate(s) or other sufficient proof that these insurance provisions have been complied with, are filed with and approved by the CITY'S Risk Manager. If the CONSULTANT does not keep all of such insurance policies in full force and effect at all times during the terms of this Agreement, the CITY may elect to treat the failure to maintain the requisite insurance as a breach of this Agreement and terminate the Agreement as provided herein. 6 City's Standard Agreement-2009 revision K. All deductibles and self -insured retentions in excess of $10,000 must be disclosed to and approved by the CITY. 18. LEGAL FEES. If any party brings a suit or action against the other party arising from any breach of any of the covenants or agreements or any inaccuracies in any of the representations and warranties on the part of the other party arising out of this Agreement, then in that event, the prevailing party in such action or dispute, whether by final judgment or out -of - court settlement, shall be entitled to have and recover of and from the other party all costs and expenses of suit, including attorneys' fees. For purposes of determining who is to be considered the prevailing party, it is stipulated that attorney's fees incurred in the prosecution or defense of the action or suit shall not be considered in determining the amount of the judgment or award. Attorney's fees to the prevailing party if other than the CITY shall, in addition, be limited to the amount of attorney's fees incurred by the CITY in its prosecution or defense of the action, irrespective of the actual amount of attorney's fees incurred by the prevailing party. 19. MEDIATION/ARBITRATION. If a dispute arises out of or relates to this Agreement, or the breach thereof, the parties agree first to try, in good faith, to settle the dispute by mediation in San Diego, California, in accordance with the Commercial Mediation Rules of the American Arbitration Association (the "AAA") before resorting to arbitration. The costs of mediation shall be borne equally by the parties. Any controversy or claim arising out of, or relating to, this Agreement, or breach thereof, which is not resolved by mediation shall be settled by arbitration in San Diego, California, in accordance with the Commercial Arbitration Rules of the AAA then existing. Any award rendered shall be final and conclusive upon the parties, and a judgment thereon may be entered in any court having jurisdiction over the subject matter of the controversy. The expenses of the arbitration shall be borne equally by the parties to the arbitration, provided that each party shall pay for and bear the costs of its own experts, evidence and attorneys' fees, except that the arbitrator may assess such expenses or any part thereof against a specified party as part of the arbitration award. 20. TERMINATION. A. This Agreement may be terminated with or without cause by the CITY. Termination without cause shall be effective only upon 60-day's written notice to the CONSULTANT. During said 60-day period the CONSULTANT shall perform all services in accordance with this Agreement. B. This Agreement may also be terminated immediately by the CITY for cause in the event of a material breach of this Agreement, misrepresentation by the CONSULTANT in connection with the formation of this Agreement or the performance of services, or the failure to perform services as directed by the CITY. C. Termination with or without cause shall be effected by delivery of written Notice of Termination to the CONSULTANT as provided for herein. D. In the event of termination, all finished or unfinished Memoranda Reports, Maps, Drawings, Plans, Specifications and other documents prepared by the CONSULTANT, whether paper or electronic, shall immediately become the property of and be delivered to the CITY, and the CONSULTANT shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date 7 City's Standard Agreement —2009 revision of the Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused the CITY by the CONSULTANT'S breach, if any. Thereafter, ownership of said written material shall vest in the CITY all rights set forth in Section 6. E. The CITY further reserves the right to immediately terminate this Agreement upon: (1) the filing of a petition in bankruptcy affecting the CONSULTANT; (2) a reorganization of the CONSULTANT for the benefit of creditors; or (3) a business reorganization, change in business name or change in business status of the CONSULTANT. 21. NOTICES. All notices or other communications required or permitted hereunder shall be in writing, and shall be personally delivered; or sent by overnight mail (Federal Express or the like); or sent by registered or certified mail, postage prepaid, return receipt requested; or sent by ordinary mail, postage prepaid; or telegraphed or cabled; or delivered or sent by telex, telecopy, facsimile or fax; and shall be deemed received upon the earlier of (i) if personally delivered, the date of delivery to the address of the person to receive such notice, (ii) if sent by overnight mail, the business day following its deposit in such overnight mail facility, (iii) if mailed by registered, certified or ordinary mail, five (5) days (ten (10) days if the address is outside the State of California) after the date of deposit in a post office, mailbox, mail chute, or other like facility regularly maintained by the United States Postal Service, (iv) if given by telegraph or cable, when delivered to the telegraph company with charges prepaid, or (v) if given by telex, telecopy, facsimile or fax, when sent. Any notice, request, demand, direction or other communication delivered or sent as specified above shall be directed to the following persons: To CITY: Jeanette Ladrido, CPA Finance Director Finance Department City of National City 1243 National City Boulevard National City, CA 91950-4301 To CONSULTANT: Marilyn K. Jones, ASA, MAAA, EA Vice President & Actuary The EPLER Company 450 B Street, Suite 750 San Diego, CA 92101-8002 Notice of change of address shall be given by written notice in the manner specified in this Section. Rejection or other refusal to accept or the inability to deliver because of changed address of which no notice was given shall be deemed to constitute receipt of the notice, demand, request or communication sent. Any notice, request, demand, direction or other communication sent by cable, telex, telecopy, facsimile or fax must be confirmed within forty- eight (48) hours by letter mailed or delivered as specified in this Section. 22. CONFLICT OF INTEREST AND POLITICAL REFORM ACT OBLIGATIONS. During the term of this Agreement, the CONSULTANT shall not perform 8 City's Standard Agreement —2009 revision services of any kind for any person or entity whose interests conflict in any way with those of the City of National City. The CONSULTANT also agrees not to specify any product, treatment, process or material for the project in which the CONSULTANT has a material financial interest, either direct or indirect, without first notifying the CITY of that fact. The CONSULTANT shall at all times comply with the terms of the Political Reform Act and the National City Conflict of Interest Code. The CONSULTANT shall immediately disqualify itself and shall not use its official position to influence in any way any matter coming before the CITY in which the CONSULTANT has a financial interest as defined in Government Code Section 87103. The CONSULTANT represents that it has no knowledge of any financial interests that would require it to disqualify itself from any matter on which it might perform services for the CITY. ❑ If checked, the CONSULTANT shall comply with all of the reporting requirements of the Political Reform Act and the National City Conflict of Interest Code. Specifically, the CONSULTANT shall file a Statement of Economic Interests with the City Clerk of the City of National City in a timely manner on forms which the CONSULTANT shall obtain from the City Clerk. The CONSULTANT shall be strictly liable to the CITY for all damages, costs or expenses the CITY may suffer by virtue of any violation of this Paragraph 21 by the CONSULTANT. 23. MISCELLANEOUS PROVISIONS. A. Computation of Time Periods. If any date or time period provided for in this Agreement is or ends on a Saturday, Sunday or federal, state or legal holiday, then such date shall automatically be extended until 5:00 p.m. Pacific Time of the next day which is not a Saturday, Sunday or federal, state or legal holiday. B. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute but one and the same instrument. C. Captions. Any captions to, or headings of, the sections or subsections of this Agreement are solely for the convenience of the parties hereto, are not a part of this Agreement, and shall not be used for the interpretation or determination of the validity of this Agreement or any provision hereof. D. No Obligations to Third Parties. Except as otherwise expressly provided herein, the execution and delivery of this Agreement shall not be deemed to confer any rights upon, or obligate any of the parties hereto, to any person or entity other than the parties hereto. E. Exhibits and Schedules. The Exhibits and Schedules attached hereto are hereby incorporated herein by this reference for all purposes. F. Amendment to this Agreement. The terms of this Agreement may not be modified or amended except by an instrument in writing executed by each of the parties hereto. G. Waiver. The waiver or failure to enforce any provision of this Agreement shall not operate as a waiver of any future breach of any such provision or any other provision hereof. H. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. 9 City's Standard Agreement —2009 revision I. Entire Agreement. This Agreement supersedes any prior agreements, negotiations and communications, oral or written, and contains the entire agreement between the parties as to the subject matter hereof. No subsequent agreement, representation, or promise made by either party hereto, or by or to an employee, officer, agent or representative of any party hereto shall be of any effect unless it is in writing and executed by the party to be bound thereby. J. Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the successors and assigns of the parties hereto. K. Construction. The parties acknowledge and agree that (i) each party is of equal bargaining strength, (ii) each party has actively participated in the drafting, preparation and negotiation of this Agreement, (iii) each such party has consulted with or has had the opportunity to consult with its own, independent counsel and such other professional advisors as such party has deemed appropriate, relative to any and all matters contemplated under this Agreement, (iv) each party and such party's counsel and advisors have reviewed this Agreement, (v) each party has agreed to enter into this Agreement following such review and the rendering of such advice, and (vi) any rule or construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement, or any portions hereof, or any amendments hereto. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first above written. CITY OF N • IONAL CITY THE EPLER COMPANY By: ALA C s Zapata, Ci anager APPROVED AS TO FORM: George H. Eiser, III City Attorney By: Title: By: Title: VI t e Pre.), cr,1 `� AvL( 1 10 City's Standard Agreement —2009 revision Company BENEFITS AND COMPENSATION CONSULTANTS AND ACTUARIES June 24, 2009 TRANSMITTED VIA EMAIL PRIVATE Ms. Jeanette Ladrigo Finance Manager City of National City 1243 National City Blvd National City, CA 91950 jladrigo(inationalcityca.gov Re: Proposal to Provide GASB Actuarial Valuation Services Exhibit "A" �frrek `u'tc --" 'a? Dle o CA "270 bn 2 ielphone •c19, 239."t3i Si' it' Z . i 7 f' ": n a n �, , _ _. m Dear Ms. Ladrigo: The Epler Company is pleased to submit our proposal to provide actuarial valuation services for the City of National City (the "City"). The City is seeking an actuarial valuation of the health benefits provided to eligible retired employees of the City. This actuarial valuation will provide the information necessary to comply with Government Accounting Standards Board Statement No. 45 (GASB 45) regarding accounting for Other Post -Employment Benefits for the City's 2008/2009 fiscal year. Our proposal addresses our firnn's qualifications. our proposed staffing and our approach to providing actuarial services including a sample schedule. We have also included our fee proposal. Our fee proposal is a firm irrevocable offer and remains valid for acceptance through September 30, 2009. We look forward to the opportunity to work with the City. If you should have any questions regarding our proposal or qualifications. please feel free to contact me at 019) 239-0831. Thank you for your consideration on this important engagement. Sincerely, THE EPLER COMPANY r MKJ:rl Enclosure Marilyn K. Jones, EA, ASA, MAAA. FCCA Vice President & Actuary if Proposal to Provide Actuarial Valuation Services for City of National City Submitted by: The Epler Company 450 B Street, Suite 750 San Diego, CA 92101-8002 (619) 239-0831 Phone (619) 239-0807 Fax June 23.2009 �nrgarru Proposal to Provide Actuarial Valuation Services for The City of National City Table of Contents Title Page Section 1. The Epler Company's Qualifications 0 1 Section 2. Proposed Staffing 5 Section 3. Proposed Services & Our Approach 8 Section 4. Fee Proposal 11 Section 5. Appendices 12 Appendix A Representative Public Clients Appendix B Insurance Documentation Appendix C Data Request for GASB Actuarial Valuation I'w 1 EPLER Section 1. The Epler Company's Qualifications The Epler Company is an independent. full -service actuarial and benefits consulting firm, headquartered in San Diego at the following location: The Epler Company 450 B Street, Suite 750 San Diego, CA 92101 Phone: (619) 239-0831 Fax: (619) 239-0807 Internet Address: www.eplercompany.com We have been in business for over 35 years as a privately held corporation, and are licensed to conduct business by the State of California. We specialize in providing actuarial. benefits and compensation consulting services for both private and public sector clients. Our firm is a woman -owned business. The firm is owned by Jane Barry who has been with the firm for over 25 years and President and Director of the firm for more than 20 years. We maintain a quality staff of approximately 16 actuaries and benefit specialists who have been providing actuarial and benefit consulting services on average for over 15 years. All employees have significant experience working with public entities as approximately 50% of our client work is for government entities. Their expertise includes measuring retirement plan and retiree health plan liabilities, providing required accounting information under FASB and GASB and consulting on the design and funding options for these plans. In addition to participation in related professional organizations, all professional staff are required to annually meet continuing education requirements. The firm collectively maintains the following professional designations: • Enrolled Actuary • Member, Society of Actuaries • Member, American Academy of Actuaries • Member, Conference of Consulting Actuaries • Member, Western Pension & Benefits Conference • Group Insurance License The Epler Company has worked with public sector clients in and outside of California for over 35 years and understands the unique needs and requirements of the public sector. In many instances, our firm interfaces either directly or indirectly with the elected governing board or a subcommittee of the board. u .Proposals RetMeni`GASD 45'Natwnal city National City Proposal doe L a,rtyu,cu In addition to consulting with clients in the retirement plan area since the firm's inception. our firm has been consulting with clients in the area of assessing Other Post -employment Benefit (OPEB) liabilities since the issuance of the Financial Accounting Standard Board Statement (FASB) No. 106 Exposure Draft in 1986, which required accounting for postretirement health benefits by the private sector. Since the issuance of FASB 106, many public entities have periodically evaluated their comparable liabilities to either comply with state and other requirements such as Assembly Bill 3141, to assess funding requirements or to measure the impact of benefit and cost sharing changes to their retiree health plans. Since the issuance of the proposed Government Accounting Standard Board (GASB) Statements No. 43 & 45 requirements in 2003, we have assisted public entities with determining and managing their OPEB liabilities under GASB 43 & 45. In 2005. The Epler Company was selected to be one of three preferred actuarial firms to provide GASB 43 & 45 consulting services to members of the California Community College League. In 2006, The Epler Company was named the sole recommended actuary to provide GASB 43 & 45 consulting services to all public schools within the San Diego County Department of Education. In addition to assessing OPEB liabilities and GASB 43 & 45 impact, we will often consult with our clients on the design, administration and financing of both their active and retiree health plans. In 2007. The Epler Company began working with employers seeking to comply with the California Employers' Retiree. Benefits Trust (CERBT). All client work is subject to an internal quality review process and our clients can attest to the quality of our work. Appendix A of the proposal provides a representative list of public sector clients that we have worked with in the recent years. This appendix indicates those clients for whom we have recently performed GASB 43 & 45 actuarial valuations and related consulting services. We have provided on the following page, three references for public entities for whom we have recently performed GASB 43 & 45 actuarial valuations and related consulting services similar to the services required by the City. If additional references are desired, we can provide them at the City's request. 2 (.'Proposals RctMtd-GASB 45 National City National City Proposal.doc Jae e EPLER Company City of Coronado Scope of Services: GASB 45 Actuarial Valuation including funding analysis Ca1PERS Compliant No. Employees: 257 Contact: Ms. Christine Zinn 1825 Strand Way Coronado, CA 92118 Phone: (619) 522-7306 Fax: (619) 522-2409 City of La Mesa Scope of Services: GASB 45 Actuarial Valuations including funding analysis Ca1PERS Compliant Presentation to City Council No. Employees: 271 Contact: Mr. Gary Ameling Director of Administrative Services 8130 Allison Avenue La Mesa, CA 91941 Phone: (619) 667-1122 Fax: (619) 667-1131 City of Ridgecrest Scope of Services: GASB 45 Actuarial Valuations including funding analysis Ca1PERS Compliant Presentation to City Council No. Employees: 116 Contact: Ms. Tess Sloan Accounting Manager 100 West California Ridgecrest, CA 93555 Phone: (760) 499-5022 Fax: (760 499-1520 3 (; Truposais RetMua.GASB 45`National City -National City Proposal.duc Our firm is independent of the City as defined by generally accepted auditing standards. We typically work on a fee -for -service basis to avoid any conflict -of -interest that can arise when a firm is paid by commissions from related healthcare plan vendors/providers. We would have no conflict -of -interest providing actuarial valuation and other consulting services as we would provide an independent review and valuation of existing or proposed plans and would make no decisions regarding plan offerings or providers for the City. In addition, we do not have any relationship with the City's consultants, plan vendors/providers or auditors. If engaged by the City, any conflict -of -interest that may arise will be brought to the attention of the City, in writing, as soon as it is identified. Our firm adheres to the highest professional standards when performing and delivering work to our clients. Our dedicated group of experienced professionals has developed and maintains quality processes that are followed in all aspects of their work. Our work is supported by the necessary computer hardware and software. We maintain a back-up server to ensure round-the-clock access and perform nightly backups of all our systems. Our firm carries the appropriate business insurance coverages including a $1,000,000 professional/liability coverage which is standard in the industry and legally required coverages such as workers compensation, disability and unemployment insurance. Our insurance documentation is provided in Appendix B. 4 (r\Proposals RetMed'diASI3 45\National City National ('ity Proposal.doc Section 2. Proposed Staffing I We have assigned a team of full-time experienced professionals to work on this assignment. We have the flexibility to shift resources among client assignments as the need arises. The assigned team for the City will be available to the extent necessary to complete the assignment. Additional resources will be utilized, if necessary, for the completion of the engagement. From the onset of the engagement, the City will have direct access to the most senior management of the firm to ensure that quality and timely services are delivered and to address any issues that arise during the course of the engagement. Marilyn Jones. will be the certified actuary and the primary consultant working with the City on the project. Her contact information is as follows: Contact: Marilyn K. Jones Title: Vice President & Actuary, ASA, MAAA, EA Address: 450 B Street, Suite 750, San Diego, CA 92101 - 8002 Phone: (619) 239-0831 Fax: (619) 239-0807 Email: mjones@eplercompany.com The qualifications for the individuals assigned to the team are listed in their biographies on the following pages and their roles on the assignment are outlined in the table below. Team Member Role & Responsibilities Jane Barry Relationship Manager: Ms. Barry's primary responsibility will be to ensure that the City is satisfied with the services delivered by The Epler Company. In addition, Ms. Barry will be a resource to the team and to the City in the public sector area. Marilyn Jones Certified Actuary & Project Manager: Ms. Jones will be the primary consultant and actuary who will assist the City with design, financing and funding issues. In addition, Ms. Jones will be the Chief Actuary responsible for assisting the City in setting assumptions and will be responsible for the final actuarial valuation results. Maureen Ostrich Actuarial Associate & Manager: Ms. Ostrich will oversee the actuarial valuation process including reconciliation of data issues. Luis Murillo Benefit Analyst: Mr. Murillo will provide analytical and data support as needed to members of the team. 5 Ci `Proposals RetMed. JASB 45`National City National City Propo.al.dnc Jane M. Barry - President, CEO i barry(a.,ep1 ercompany.com Ms. Barry has been associated with The Epler Company for over twenty-five years. serving as President and Chief Executive Officer for more than twenty years. She began her career in the employee benefit area with the group pension department of a large insurance company in Boston, Massachusetts, and subsequently relocated to San Francisco where she served as a pension consultant with a regional actuarial firm. As CEO, Ms. Barry is responsible for establishing the firm's work ethic, mission, and quality assurance of all consulting projects. In addition, she is considered a leading authority in the defined benefit and executive compensation fields. Ms. Barry is a graduate of St. Lawrence University with a degree in political science. She is an active member of the Western Pension & Benefits Conference and was general chair for the 1992 and 1999 annual conferences and co-chair for the 2005 meeting. Ms. Barry has been on the faculty of UCSD and a frequent guest lecturer at the graduate level at San Diego State University. Marilyn K. Jones - Vice President & Actuary. ASA, MAAA, EA. FCCA mjones rz,eplercomnany.com Ms. Jones joined The Epler Company as Vice President & Chief Actuary of our actuarial practice. She has over twenty years of actuarial experience in both the pension and healthcare areas and brings with her tremendous expertise working with both the private and public sectors. Ms. Jones' primary responsibility is to maintain the high professional standards that have been the cornerstone of our long history and to continually monitor changes that may become necessary as a result of legislative activity. In addition, she provides the management of pension and healthcare actuarial services provided to all of her clients. All personnel in the pension and healthcare areas of the practice will report, either directly or indirectly, to Ms. Jones. Prior to joining The Epler Company, Ms. Jones managed the local actuarial practice of a large international human resource consulting firm. She has also spent a significant portion of her career working at two of the Big Four accounting firms. Ms. Jones is an active participant in several actuarial and employee benefits organizations. She is an Associate of the Society of Actuaries. a Member of the American Academy of Actuaries, a Fellow of the Conference of Consulting Actuaries and an Enrolled Actuary under the Employee Retirement Income Security Act (ERISA). Ms. Jones received a B.S. and M.S. in Mathematics & Statistics from the University of Illinois. (;Pruposals RetMcJ'GASB 45Nauonal Cuy National ('ity Propusal.doc 1 �n EPLE\ L'ompnry Maureen C. Ostrich - Manager, Actuarial Support Services mostrich(apeplercompany.com Ms. Ostrich has over twenty-five years of experience in the actuarial field. Prior to joining The Epler Company, Ms. Ostrich was employed by a national employee benefits consulting firm and by the group pension department of a major life insurance company, specializing in actuarial valuations. Ms. Ostrich is the supervisor in quality assurance for the actuarial department. She has extensive experience in all phases of actuarial valuations, data preparation and benefit calculations. Ms. Ostrich is a graduate of UCLA with a B.A. in mathematics. She has successfully completed several actuarial exams for the Society of Actuaries. Luis Murillo — Actuarial Analyst Imurillo@eplercompany.com Mr. Murillo recently joined the actuarial team at The Epler Company. He works as a consultant for several clients, focusing on retiree medical and defined benefit plans. His responsibilities include assisting in actuarial valuations, data preparations, annual IRS filings. and benefit calculations for the plan participants upon termination or retirement. Mr. Murillo was graduated with a Bachelors of Arts degree in Joint Mathematics and Economics University of California, San Diego. He is currently pursuing an associateship in the Society of Actuaries and has successfully completed actuarial exams for the Society of Actuaries. 7 CJ.'Proposals RetMed'GASIi 45',Natwnal Ctty National City Proposal.doc .u.,np,triy Section 3. Proposed Services & Our Approach Background The City of National City (the "City") is seeking a consultant to provide an actuarial valuation of its retiree health benefits in accordance with GASB 45. The City currently expenses for its retiree health benefits on a pay-as-you-go basis. The City is required to adopt GASB 45 for its 2008/2009 fiscal year. GASB 45 requires accrual accounting for the expensing of other post -employment benefits (OPEB) including retiree health benefits and certain financial disclosures. Compliance with GASB 45 requires the completion of an actuarial valuation of the City's retiree health benefits to determine the liability and accrual expense for these benefits. Proposed Services The Epler Company will perform an actuarial valuation of the City's retiree health benefits in compliance with GASB 45. We have outlined below our approach to providing valuation services including the project deliverables and have provided a sample schedule which can be adjusted to meet the City's required schedule. Our Approach Our approach for providing actuarial valuation services typically involves the steps listed on the following page which are modified to meet the client objectives established at the onset of any engagement. The entire process typically takes four (4) to six (6) weeks from receipt of complete data. • Submit data request to the City (included with our proposal in Appendix C). • Conference call with the City to discuss engagement objectives & deliverables, confirm our understanding of plan design, set assumptions and methods for the valuation process. • Receive & review required data from the City. • Reconcile participant data & confirm population to include for valuation. • Submit for the City's approval. a summary of plan provisions. data statistics and actuarial assumptions to be used in the valuation. We encourage the City to involve their auditors prior to approval of actuarial assumptions and methods. • Discuss and receive approval of final actuarial assumptions and method. 8 G:'.Propusals RetMcd'GASB 45•Nat onai City National City Proposal.doc !he Company • Program. test & perform actuarial valuation using the City's specific plan design and actuarial assumptions and methods. • Draft actuarial valuation report. • Send via email draft actuarial valuation report to the City for review. • Conference call or meeting to discuss report with the City & other interested parties as determined by the City. • Issue bound copy of final actuarial valuation report. The actuarial valuation will be performed using generally accepted actuarial procedures and our experience with similar assignments, current census data, and a measurement date and actuarial assumptions and methods as determined through discussions with the City. The results will be determined based on a closed -group valuation method, meaning that only current active (but not future hires) and retired employees will be included. After completion of the actuarial valuation, we will provide the City with a report setting forth all liabilities and expense estimates for its retiree health benefits program required under GASB 45. Our actuarial valuation report will contain the following information: • Executive summary; • The terminal liability (actuarial present value) of the retiree health benefits; • Disclosure of the actuarial accrued liability and the unfunded actuarial accrued liability determined in accordance with GASB 45; • The components the annual required contribution determined in accordance GASB 45: • Projected annual pay-as-you-go expenditures for all future years; • Discount rate and health care trend sensitivity analysis; • Funding analysis including recommended Ievel annual and level percentage of pay funding amounts to pre -fund the obligations; • A summary of retiree health benefit plan provisions; • A summary of actuarial assumptions and methods; • An age and service distribution of employee population included in the valuation; and • An actuarial certification. 9 (;. Proposals RctMcd GASB 45 National City National City Proposal.doe GASB Actuarial Valuation Sample Schedule We will work with the City to ensure that the project is completed within your required time constraints. A sample timeline is provided in the table below. The timing is contingent on the City's ability to provide the required data and give its approval of assumptions and methods to be used in the valuation within a set timeframe. Your actual schedule can be adapted to meet the actual time needed by the City to gather its data and to facilitate the required approvals. Date/Timing Key Milestone Responsibility September, 2009 Decision on Consultant The City September, 2009 Contract Awarded The City September 14, 2009 Kick-off Conference Call • Discuss Objectives • Confirm Current Design & Cost Sharing • Discuss Valuation Assumptions & Methods • Review Data Requirements The City/ Epler September 25, 2009 Submit Required Plan Design, Rate & Census Information The City September 25, 2009 - October 9, 2009 Data Reconciliation & Confirmation of Population and provisions to be Included in Actuarial Valuation Epler October 9, 2009 Send Plan Provisions, Valuation Data Tables & Proposed Actuarial Assumptions & Methods Summary to the City for Approval Epler October 16, 2009 Approve Actuarial Assumptions & Methods for Valuation The City October 16 - 30, 2009 Perform Actuarial Valuation & Draft Valuation Report Epler October 30, 2009 Email Draft Valuation Report to the City Epler November 6, 2009 OPEB Valuation Consulting Conference Call or Meeting: Review Actuarial Valuation Results and General Funding Strategies The City/ Epler TBD Deliver Bound Valuation Report Epler lire EPLE\ Lo ltpany i Section 4. Fee Proposal I The estimated not -to -exceed fee, including expenses, for the actuarial valuation services outlined in Section 3 and based on the assumptions below is $6,000. Our fees are based on the projected number of hours spent by each consultant on the project. multiplied by a billable rate that varies according to the experience and credentials of the consultant. We make every effort to hold down the costs incurred for the actuarial valuation, but not to the point of jeopardizing the successful conclusion of the assignment. The fee quote assumes the City is able to provide us complete and accurate census data in electronic format on a single file and includes the following: • Kick-off conference call: To include planning, objective and assumptions & methods discussion, and review of data requirements. • Measurement using one set of assumptions and one cost method approved by the City. • Analysis of discount and trend rate sensitivity on results. • Funding analysis with level dollar and level percentage of pay funding alternatives. • Results shown separately for retired and active employees, for up to 4 bargaining units/employee groups. • On -site presentation to review valuation results and report. 11 (,. Propusai> RetMed'_(iASB 45`•N2tional City National City Proposal.doc 1ar 5. Appendices I The following appendices to the proposal can be found in this section: • Appendix A — Representative Public Clients • Appendix B — Insurance Documentation • Appendix C — Data Request for GASB Actuarial Valuation 12 �, Proposals RetMcd•GAS13 45'•Nat anal City National City Pruposal.doc Appendix A. Representative Public Clients 1 Below is a list of public agencies. cities. counties, colleges, community colleges and schools for whom we have completed actuarial work. We have noted with one asterisk (*), those entities for whom we have performed at least one retiree health actuarial valuation. These valuations have typically included GASB-like estimates. We have noted with two asterisks (**) those entities for whom the proposed personnel for the City have performed recent work for compliance with GASB 43 & 45. Alpine Union School District** Alvord Unified School District** Antelope Valley Unified School District* Arvin Unified School District* Atascadero Unified School District** Beaumont Unified School District** Belridge Elementary School District** Bonsai' Union School District ** Cajon Valley Unified School District** Carlsbad Unified School District** Centinela Valley High School District Chaffey School District* Chula Vista Elementary School District** City of Calexico** City of Carson** City of Coronado** City of Fillmore** City of Henderson* City of La Mesa** City of Montebello ** City of Norwolk* City of Palm Desert** City of Ridgecrest** City of Santee** Clovis Unified School District* Coachella Valley Mosquito and Vector Control District** Community Development of Los Angeles* Colton Unified School District** Coronado Unified School District** County of Mono* County of Plumas** Del Mar Union School District** Downey Unified School District East Valley Water District** Escondido Union School District** Fallbrook Unified Elementary School District* Fresno Housing Authority* Gavilan Community College District** Grossmont-Cuyamaca Community College District* Grossmont Healthcare District** Grossmont Union High School District** Hemet Unified School District* Housing Authority of San Bernardino* Housing Authority of the County of San Bemardino** Inyo County Department of Education* Indian Wells Valley Water District** Jurupa Unified School District** Julian Union School District** Kern County Office of Education* Lake Elsinore Unified School District** Lakeside Fire Protection District** Lakeside Union School District** La Mesa -Spring Valley Unified School District** Lamont School District* Lawndale School* Leucadia Wastewater District** Los Angeles Unified School District** Lost Hills Unified School District* MiraCosta Community College District** Mojave Water Agency** Montebello Unified School District** Monterey Peninsula College* Moulton Niguel Water District** Mountain Empire Unified School District** Napa Valley Community College District** National School District** Nipomo Community Services District** North County Transit District** Ohlone College* Orange Unified School District** Owens Valley Unified School District* Palisades Charter Schools** Parlier Unified School District** Pauma-Valley Center Unified School District** Peralta Community College District** Poway Unified School District** Ramona Municipal Water District** Rancho California Water District** Rancho Santiago Community College District* Riverside County Office of Education** SANDAG** San Diego County JPA** San Diego County Office of Education** San Dieguito Union School District** San Jose Evergreen Community College District* San Luis Obispo County Office of Education** San Marcos Unified School District** San Ramon Valley Unified School District** Sante Fe Irrigation District** San Ysidro Unified School District** Sequoia Unified High School District* Solana Beach Unified School District** South Orange County Wastewater Authority** Southwestern Community College* Standard School District* Taft City Schools** Three Valley Municipal Water District** Turlock Irrigation District** University of San Diego* Vista Irrigation District** Walnut Valley Water District** William S. Hart Union High School District** Yucaipa/Calimesa School District Valley Center-Pauma Unified School District** Valley Center Municipal Water District** West Valley - Mission Community College District* Appendix B. Insurance Documentation 1 Attached are copies of The Epler Company's Workers' Compensation, Automobile Liability and Professional Liability Coverages. The District can be added as an additional insured under this policy. ACORD CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY) 9/14/2009 PRODUCER (619) 683-9990 FAX: (619) 683-9999 Michael Ehrenfeld Company 2655 Camino Del Rio North #200 San Diego CA 92108 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. INSURERS AFFORDING COVERAGE NAIC # INSURED Epler Company, The 450 B Street Suite #750 San Diego CA 92101 INSURER A. Fidelity & Deposit Co. of 3 93 06 INSURER B:Oak River Insurance Company INSURER C: Houston Casualty Company INSURER D: INSURER E: 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. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LTR ADD'L NSRD TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE DATE IMM/DD/YYYY) POLICY EXPIRATION DATE IMM/DD/YYYYI LIMITS A X GENERAL X LIABILITY COMMERCIAL GENERAL LIABILITY CP09673013-10 7/14/2009 7/14/2010 EACH OCCURRENCE $ 1,000,000 DAMAGE D PREMISESO(EaENTEoccu occurrence) $ 1,000,000 CLAIMS MADE X OCCUR MEDEXP(Anyoneperson) $ 10,000 PERSONAL &ADV INJURY $ 1,000,000 GENERAL AGGREGATE $ 2,000,000 GEN'L X AGGREGATE LIMIT APPLIES PER: POLICY PRO- JECT PRODUCTS-COMP/OP AGG $ 2,000,000 A X AUTOMOBILE X X LIABILITY ANY AUTO ALL OWNED AUTOS CP09673013-10 7/14/2009 7/14/2010 COMBINED SINGLE LIMIT (Ea accident) $ 1,000,000 BODILY INJURY (Per person) $ BODILY INJURY (Per accident) $ PROPERTY DAMAGE (Per accident) $ GARAGE LIABILITY ANY AUTO AUTO ONLY - EA ACCIDENT $ OTHER THAN EA ACC $ AUTO ONLY: AGG $ EXCESS / UMBRELLA LIABILITY EACH OCCURRENCE $ AGGREGATE $ $ $ $ B WORKERS AND EMPLOYERS' ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICER/MEMBER (Mandatory If yes, describe SPECIAL COMPENSATION LIABILITY Y / N 2210007901091 5/1/2009 5/1/2010 X WC STATU- OTH- TORY LIMITS ER E.L. EACH ACCIDENT $ 1,000,000 EXCLUDED? E.L. DISEASE - EA EMPLOYEE $ 1,000,000 In NH) under PROVISIONS below E.L. DISEASE - POLICY LIMIT $ 1,000,000 C OTHER Errors & Omissions Claims Made Retro Date: 6/28/87 H70913440 7/28/2009 7/28/2010 Limit $1,000,000 Deductible $15,000 DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES / EXCLUSIONS ADDED BY ENDORSEMENT / SPECIAL PROVISIONS The certificate holder, and its officials, agents, and employees are included as additional insured under the general and auto liability policies. 10 days notice of cancellation only required in the event of non-payment of premium. CERTIFICATE HOLDER CANCELLATION The City of National City 1243 National City Blvd National City, CA 91950 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL 3 0 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES. AUTHORIZED REPRESENTATIVE �..+�„„..� �r Eric Ehrenfeld/TGW 1e ACORD 25 (2009/01) INS025 (200901) ©1988-2009 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD Appendix C. Data Request for GASB Actuarial Valuation The following lists the information necessary to perform an actuarial valuation of the City's retiree health benefits. Our fees assume that the census information will be provided electronically. General Information • Description of current active & retiree health coverages, including any applicable plan documents, employee booklet, union agreements, Board memo, and/or Memorandum of Understanding • Description of cost sharing arrangements for retiree health coverage • Summary of material changes in retiree health benefits over last 2-3 years • Description of current funding policy and any proposed changes • Market value of any assets earmarked or in trust to pay retiree health benefits (as of beginning of fiscal year) • Copy of prior actuarial study of retiree health benefits, if applicable • Other pension plan retirement provisions and actuarial assumptions, if applicable. If using CalPERS OPEB Assumptions and Method Model. please provide retirement benefit formula applicable to each employee group. Healthcare Providers/Claim Costs for Retiree Health Benefits (not applicable if all plans provided through Ca!PERS Health Program) • List of health providers, both funded and self -funded plans; for each plan indicate if it is experience rated, partially experience rated or community rated • Number of employees electing coverage under each health plan for the last three years • Last three years of rates (COBRA and funding rates if self insured, premium rates if fully insured) by plan and family coverage category • For self -insured plans only: Monthly claims, administrative expenses and enrollment experience for the last 36 months r Large claims report and stop loss reimbursements and premiums, if any, for the last 36 months A claim lag report. If this information is not available, industry standard claim lags will be used r The amount, if any, set aside for purpose of paying incurred but not reported (IBNR) claims Census Information (transmitted electronically) Census data needed for each benefit eligible employee: • ID Number • Regular Earnings (period of earnings will also be needed if employees are on different payrolls) • Date of Birth • Employee Sex • Spouse's Date of Birth, if applicable and available • Date of Hire (Both City DOH and CaIPERS DOH, if applicable) • Applicable Employment Status Code (Union or Other Applicable Employee Groupings) • CaIPERS Employee Group, if applicable • Medical Plan Election • Family Coverage Category - Medical (single, two party, family, etc.) • Dental Plan Election, if applicable • Family Coverage Category - Dental (single, two party, family, etc.) • Vision Plan Election, if applicable • Family Coverage Category - Vision (single, two party, family, etc.) • Employer Contribution (split by medical/Rx, dental & vision, if applicable) • Employee Contribution (split by medical/Rx, dental & vision. if applicable) Census data needed for each retiree: • ID Number • Date of Birth • Employee Sex • Spouse's Date of Birth, if applicable • Date of Hire (Both City DOH and Ca1PERS DOH, if applicable) • Date of Retirement • Applicable Employment Status Code (Union or Other Applicable Employee Groupings) • CaIPERS Employee Group, if applicable • Medical Plan Election • Family Coverage Category - Medical/Rx (single, two party, family, etc.) • Dental Plan Election, if applicable • Family Coverage Category - Dental (single, two party, family, etc.) • Vision Plan Election, if applicable • Family Coverage Category - Vision (single, two party, family, etc.) • Employer Contribution (split by medical/Rx. dental & vision, if applicable) • Employee Contribution (split by medical/Rx, dental & vision, if applicable) NA INCORPORATED OFFICE OF THE CITY CLERK 1243 National City Blvd. National City, California 91950 Michael R. Dalla, CMC - City Clerk 619-336-4228 phone • 619-336-4229 fax THE EPLER COMPANY Consulting & Actuarial Services Roxanna Galvan (Finance) Forwarded Copy of Contract to the Consultant