Agmt12 Bartel Associates, LLC - Laserfiche WebLink

Browse Search

V Exhibit A �};' �� z �.. �� Scope of Services ,, . `� }�t ��_ � ,�, �-� .:�, �.� �� September 17,2012 Brian Ponty Finance Director Redwood City 1017 Middlefield Road Redwood City, CA 94063 Re: GASB 45 OPEB Actuarial Valuation Fee EsNmate& Data Request Dear Mr. Ponty: Bartel Associates would be pleased to provide actuarial consulting services to Redwood City. This letter summarizes the project scope and our fee estimate for a June 30, 2013 actuarial valuation for the City's retiree healthcare plan. The prior June 30, 2011 valuation can be used for the 2011/12 and 2012/13 fiscal years. The June 30, 2013 valuation can be used far the 2013/14 and 2014/15 fiscal years. GASB 45 requires that the City prepare a new valuation at least every 2 years. However, a new valuation is required if there is a significant change to plan membership,benefit provisions,healthcare providers, funding policy, or the basis of any long-term actuarial assumptions between the valuation date and the applicable fiscal year. Estimated Fees Our estimated fee to prepare a GASB 45 actuarial valuation of the City's retiree healthcare plan as of June 30, 2013 is $14,000, including CERBT actuarial certifications and a meeting to discuss the valuation results. While our fee estimate represents the likely cost of the valuation, it is possible that the valuation may require additional time. We understand the City's budgeting needs and agree not to bill more than $16,000 for the June 30,2013 valuation unless the project scope changes. Note that this fee estimate assumes the plan provisions and funding policy have not changed since the June 30, 2011 actuarial valuation. Please let us know of any changes so we can revise our fee estimate if necessary. Proiect Elements Estimated Fee GASB 45 Actuarial Valuation $ 13,000 Preliminary Results Meeting 500 CERBT Actuarial Certifications 500 Total Estimated Fee $ 14,000 Not-To-Exceed Fee $ 16,000 Since our estimated fee only includes expected charges for time spent on the actuarial valuation,the City may want to establish an additional consulting budget for other OPEB projects ar consulting that may be needed over the coming years until the next actuarial valuation is needed. For example,the City might include an additional budget of 25%to 30%of our estimated fee, or approximately$3,500, in its purchase order or contract with us to cover unexpected requests. The amount of this consulting budget may be higher if the City has any expectations for plan changes,plan design studies, funding policy changes,cost projections, and other day-to-day administrative, fmancial reporting, and consulting issues. 411 Borel Avenue,Suite 101 •San Mateo,California 94402 main:650/377-1600 •fax:650/345-8057 •web:www.bartel-associates.com