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6.1.E. - Page 1 <br />REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br />January 9, 2017 <br />SUBJECT <br />Agreement with Bartel Associates, LLC <br />RECOMMENDATION <br />By motion, approve and authorize the City Manager to execute an Agreement with <br />Bartel Associates, LLC for Governmental Accounting Standards Board (GASB) <br />Statement No.75 OPEB actuarial valuation and a CalPERS contribution rate review for <br />a two year term expiring December 9, 2018 <br />BACKGROUND <br />The proposed agreement with Bartel Associates, LLC combines two different analyses <br />regarding (1) the cost of "other post -employment benefits" (OPEB), and (2) the <br />projected cost of pension benefits. Since the same firm will be preparing both analyses, <br />the contract includes these two distinct projects in separate attachments describing the <br />scope of each work product. While the cost of the analysis authorized by this contract is <br />below the threshold requiring Council approval, the cumulative cost over several years <br />is greater than the $60,000 which can be authorized administratively by the City <br />Manager. The scope of each project is described in more detail below. <br />•- e <br />Bartel Associates prepared a June 30, 2015 valuation for the City's 2015/16 and <br />2016/17 fiscal years. GASB requires the City to prepare a new valuation at least every 2 <br />years. The June 30, 2017 valuation will provide recommended contributions for the <br />2017/18 and 2018/19 fiscal years. <br />In June 2015, GASB issued Statement No. 75, Accounting and Financial Reporting for <br />Postemployment Benefits Other Than Pensions. This statement replaces GASB <br />Statement No. 45, effective for the City's 2017/18 fiscal year. Since GASB Statement <br />No. 75 allows an actuarial valuation roll forward of not more than 30 months and one <br />day before the City's fiscal year end, the June 30, 2017 valuation can be used for the <br />GASB Statement No. 75 information for both June 30, 2018 and June 30, 2019. <br />CalPERS Contribution Rate Review <br />The City participates in CaIPERS, providing: <br />- Miscellaneous employees hired before October 24, 2011 the 2.7% @ 55 <br />