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11-0627_BICKMORE RISK SERVICES_Personal Services AgreementPERSONAL SERVICES AGREEMENT THIS AGREEMENT is made, entered into, and shall become effective this 27th day of June 2011, by and between the San Juan Capistrano (hereinafter referred to as the "City") and Bickmore Risk Services (hereinafter referred to as the "Consultant"). RECITALS: WHEREAS, City desires to retain the services of Consultant regarding the City's proposal to prepare actuarial services for GASB 45 compliance reporting and, WHEREAS, Consultant is qualified by virtue of experience, training, education and expertise to accomplish such services. NOW, THEREFORE, City and Consultant mutually agree as follows: Section 1. Scope_ of Work. The scope of work to be performed by the Consultant shall consist of those tasks as set forth in Exhibit 'A" attached and incorporated herein by reference. To the extent that there are any conflicts between the provisions described in Exhibit "A" and those provisions contained within this Agreement, the provisions in this Agreement shall control. Section 2. Term. This Agreement shall commence on the effective date and shall terminate, and all services required hereunder shall be completed, no later than December 15, 2011. Section 3. Compensation. 3.1 Amount. Total compensation for the services hereunder shall not exceed $6,500 for the total contract amount as set forth in Exhibit 'A" attached and incorporated herein by reference. 3.2 Method of Payment. Subject to Section 3.1, Consultant shall submit monthly invoices based on total services which have been satisfactorily completed for such monthly period. The City will pay monthly progress payments based on approved invoices in accordance with this Section. 3.3 Records of Expenses. Consultant shall keep complete and accurate records of all costs and expenses incidental to services covered by this Agreement. These records will be made available at reasonable times to the City. Invoices shall be addressed as provided for in Section 16 below. Section 4. Independent Contractor. It is agreed that Consultant shall act and be an independent contractor and not an agent or employee of the City, and shall obtain no rights to any benefits which accrue to Agency's employees. Section 5. Limitations Upon Subcontracting and Assi nment. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for the City to enter into this Agreement. Consultant shall not contract with any other entity to perform the services required without written approval of the City. This Agreement may not be assigned, voluntarily or by operation of law, without the prior written approval of the City. If Consultant is permitted to subcontract any part of this Agreement by City, Consultant small be responsible to the City for the acts and omissions of its subcontractor as it is for persons directly employed. Nothing contained in this Agreement shall create any contractual relationships between any subcontractor and City. All persons engaged in the work will be considered employees of Consultant. City will deal directly with and will make all payments to Consultant. Section 6. _Changes to Scope of Work. For extra work not part of this Agreement, a written authorization from City is required prior to Consultant undertaking any extra work. In the event of a change in the Scope of Work provided for in the contract documents as requested by the City, the Parties hereto shall execute an addendum to this Agreement setting forth with particularity all terms of the new agreement, including but not limited to any additional Consultant's fees. Section 7. Familiarity with Work and/or Construction Site. By executing this Agreement, Consultant warrants that: (1) it has investigated the work to be performed; (2) if applicable, it has investigated the work site(s), and is aware of all conditions there; and (3) it understands the facilities, difficulties and restrictions of the work to be performed under this Agreement. Should Consultant discover any latent or unknown conditions materially differing from those inherent in the work or as represented by City, it shall immediately inform the City of this and shall not proceed with further work under this Agreement until written instructions are received from the City. K Section 8. Time of Essence. Time is of the essence in the performance of this Agreement. Section 9. Compliance with Law; E -Verify. 9.1. Compliance with Law. Consultant shall comply with all applicable laws, ordinances, codes and regulations of federal, state and local government. 9.2. E -Verify. If Consultant is not already enrolled in the U.S. Department of Homeland Security's E -Verify program, Consultant shall enroll in the E -Verify program within fifteen days of the effective date of this Agreement to verify the employment authorization of new employees assigned to perform work hereunder. Consultant shall verify employment authorization within three days of hiring a new employee to perform work under this Agreement. Information pertaining to the E -Verify program can be found at http-//www.uscis.ciov, or access the registration page at https:ife-verify.0 cis.cgov/enroll/. Consultant shall certify its registration with E -Verify and provide its registration number within sixteen days of the effective date of this Agreement. Failure to provide certification will result in withholding payment until full compliance is demonstrated. Section 10. Conflicts of Interest. Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which would conflict in any manner or degree with the performance of the services contemplated by this Agreement. No person having such interest shall be employed by or associated with Consultant. Section 11. Copies of '//Bork Product. At the completion of the work, Consultant shall have delivered to City at least one (1) copy of any final reports and/or notes or drawings containing Consultant's findings, conclusions, and recommendations with any supporting documentation. All reports submitted to the City shall be in reproducible format, or in the format otherwise approved by the City in writing. 3 Section 12. Ownership of Documents. All reports, information, data and exhibits prepared or assembled by Consultant in connection with the performance of its services pursuant to this Agreement are confidential to the extent permitted by law, and Consultant agrees that they shall not be made available to any individual or organization without prior written consent of the City. All such reports, information, data, and exhibits shall be the property of the City and shall be delivered to the City upon demand without additional costs or expense to the City. The City acknowledges such documents are instruments of Consultant's professional services. Section 13. Indemni . To the fullest extent permitted by law, Consultant agrees to protect, defend, and hold harmless the City and its elective and appointive boards, officers, agents, and employees from any and all claims, liabilities, expenses, or damages of any nature, including attorneys' fees, for injury or death of any person, or damages of any nature, including interference with use of property, arising out of, or in any way connected with the negligence, recklessness and/or intentional wrongful conduct of Consultant, Consultant's agents, officers, employees, subcontractors, or independent contractors hired by Consultant in the performance of the Agreement. The only exception to Consultant's responsibility to protect, defend, and hold harmless the City, is due to the negligence, recklessness and/or wrongful conduct of the City, or any of its elective or appointive boards, officers, agents, or employees. This hold harmless agreement shall apply to all liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by Consultant. Section 14. Termination. City shall have the right to terminate this Agreement without cause by giving thirty (30) days' advance written notice of termination to Consultant. In addition, this Agreement may be terminated by any party for cause by providing ten (10) days' notice to the other party of a material breach of contract. If the other party does not cure the breach of contract, then the agreement may be terminated subsequent to the ten (10) day cure period. Section 15. Notice. All notices shall be personally delivered or mailed to the below listed addresses, or to such other addresses as may be designated by written notice. These addresses shall be used for delivery of service of process: To City: City of San Juan Capistrano 32400 Paseo Adelanto M San Juan Capistrano, CA 92675 Attn: Brad Rockabrand, CPA To Consultant: Bickmore Risk Services Attn: Heather Fantz 5200 SW Macadam Aven Portland, OR.97239 Section 16, Attorneys' Fees. If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys` fees, costs and necessary disbursements in addition to any other relief to which he may be entitled. Section 17. Dispute Resolution. In the event of a dispute arising between the parties regarding performance or interpretation of this Agreement, the dispute shall be resolved by binding arbitration under the auspices of the Judicial Arbitration and Mediation Service ("JAMS"). Section 18. Entire Agreement. This Agreement constitutes the entire understanding and agreement between the parties and supersedes all previous negotiations between them pertaining to the subject matter thereof. [SIGNATURE PAGE FOLLOWS] 0 IN WITNESS WHEREOF, the parties hereto have executed this Agreement. CITY OF SAN .JUAN CAPISTRANO By: @",-A q7 David Adams, Interim City Manager CONSULTANT By, c vim; ATTE� Ma.i Morris, City Cie APPROVED AS TO FORM: R l ickmore Risk Services June 16, 2011 Ms. Cindy Russell Chief Financial Officer 1 City Treasurer City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 Re: Engagement Letter for OPER Actuarial Valuation Services As requested, we are providing this letter to propose the engagement of Bickmore Risk Services (BRS) to complete an actuarial valuation of other postemployment benefits (OPEB) liabilities under GASB 45 for the City of San Juan Capistrano (the "City"). . This valuation is to be dated June 30, 2011 and it is our understanding that the results of this valuation will be applied to the City's fiscal years ending June 30, 2011 and 2012. Work will commence within one week following submission of all requested data and be completed as soon as possible thereafter, but not later than 75 days following. BRS works with over 200 government entities, predominantly in California and Nevada, for GASB 45 compliance. We are recognized in particular for our significant knowledge and experience in working with both the CalPERS medical program and CERBT OPEB trust programs. We believe our general experience, combined with our knowledge of the City's OPER benefits and funding policy will prove to be an advantage to the City. Furthermore, we hope the consulting assistance and our availability for questions demonstrates the value we provide beyond the mere delivery of a report. We appreciate the opportunity to be of service to the City of San Juan Capistrano and look forward to working with you again on this assignment. Please call me at (503) 419-0462 with any questions you may have with regard to our services or this letter. You may also reach me by e-mail at ctacleod brsrisk.com. Cordially, Catherine L. MacLeod Manager, Health & Benefit Actuarial Services Fellow, Society of Actuaries Member, American Academy of Actuaries Enrolled Actuary Enclosure CORPORATE 800,5111,41591 s=a t& 2,00 &IR 41-`o t 916,241 x-.1 T 9t .sft.4:s t..:lt.:_. CA `£"._833 C. �3 t"a`£'„ach ;.=` ,020 ENV 'NVK'0V1MT1 A'W'NIVJ�'r EXHIBIT A Overview of Valuation Process Our general approach to providing services to the City will be as follows: The lead consultant and actuarial analyst assigned will collect and review preliminary information with the City and identify any specific directions and desires concerning the upcoming valuation. A valuation data request will be sent. This will include a word document laid out with straightforward plan related questions and an excel file for employee data information. We will also ask for updates regarding the City's contributions for retirees, prior year disclosures in the financial statements and changes in benefits provided since the prior valuation was prepared. As to the appropriate assumption package, because City employees participate in the OCERS retirement (pension) program, a We will follow the package of demographic assumptions and methods used in the most recent retirement valuations. We will request the City's assistance in obtaining a copy of that report. o We will review appropriate discount rates with the City to be used in the valuation. n A review of medical trend will also be appropriate. We will prepare a draft OPER valuation report for the City to review which will include sufficient documentation, details, and descriptions to enable the City to evaluate the actuarial methodology, indexes, and mathematical approaches we used to develop the financial information relating to OPEB benefit liabilities and annual OPEB expense. We will be available as needed to discuss the valuation results with the City representatives. Once any questions have been resolved we will issue our final report. At the City's option and request, we are available for an in-person presentation of results and/or preparation of actuarial materials, if required, to be submitted to an OPEB trust for their reporting purposes. Selected references are available on request. Overview of the City's Retiree OPER benefits and Funding OPER provided: The City has indicated that the only Other Post Employment Benefit provided is medical plan coverage. Eligibility for medical coverage: Medical coverage is available for employees who satisfy the requirements for retirement under OCERS (attained age 50 with 10 years of covered service. An employee cannot terminate employment before meeting the age condition and be entitled to receive benefits. The City offers medical coverage through CaIPERS as permitted under the Public Employees' Medical and Hospital Care Act (PEMHCA). As such, the City is obligated to contribute toward the cost of retiree medical coverage for the retiree's lifetime or until coverage is discontinued. If a covered spouse survives the retiree, the spouse continues to receive the City subsidy described above. Medical Subsidy provided by the City: The City has chosen to satisfy its retiree medical benefit commitment using the unequal contribution method. Under this method, the employer's contribution towards retiree medical benefits is determined by multiplying together the following three items: 5% times The number of prior years the employer has been contracted with PEMHCA times The contribution the employer mares towards active employee health benefits, but not less than the Minimum (required) Employer Contribution (MEC). It is our understanding that the (direct) contribution provided by the City on behalf of active employees is $108 for 2011'. Thus, the City's 2011 minimum monthly contribution toward health plan benefits for retired employees is 5% times 11 (years in CaIPERS medical) times $108, or $59.40. This amount will increase for 9 more years when it will then equal the amount contributed to CaIPERS for active employees. Current Funding Policy it is our understanding that the June 2009 valuation was applied to the City's fiscal years ending June 30, 2009 and 2010. Thus, it is expected that the results of the June 30, 2011 valuation will be applied to the City's fiscal years ending June 30, 2011 and 2012. Unless we are told otherwise, we will assume that the City intends to continue to follow it's previously established pay-as-you-go funding policy. ' It is our understanding that there is a pre-tax flexible benefit plan in place for active employees that provides premiums in excess of the MEC and that such additional payments are not required to be provided to retired employees to meet PEMHCA requirements. 2 Three retirees receive a minimum of $225 per month until they reach age 65, including one retiree who has waived medical coverage through the City. This greater benefit is not available to any other current or future retiree. Professional Service Fees for this Project Absent changes in the benefit structures provided to retirees and based on the understanding of the City's benefits as described on the prior pages, BRS will complete the actuarial valuation of OPER liabilities requirements for the following fees: June 2011 Valuation report $ 6,5003 Results will be presented based on the City's current funding policy for the fiscal years ending June 30, 2011 and June 30, 2012. A basic comparison of results on a prefunding basis will also be provided. Optional services (these may be requested any time before the valuation is completed): Separate OPEB cost by group 250 for each subgroup Actuarial materials for OPER trust 750, only. if required Personal visit (report delivery) 600 The basic valuation fee above includes up to 8 hours for data analysis, consolidation and organization to prepare it for our actuarial coding. Should the plan details or employee data require additional time to organize before we can begin our valuation or if benefits change requiring additional actuarial coding, we reserve the right to charge for this time at the hourly rates shown below. We would alert the City in advance if we felt additional charges might apply. We believe the services described above will meet the City's objectives for this project. However, should other services beyond the scope of work outlined above be requested or required, we will bill for our time at the rates specified below: Consultant Hourly Rate Senior Actuarial Staff $ 300 Actuarial Staff 160 Administrative Staff 80 The information provided in this letter may be incorporated into a separate contract or the City may indicate its acceptance of the above fees and timeline for this project with a binding signature and date entered below. Yes, we would like to contract with BRS for the next two upcoming valuations for a reduced valuation fee of $6,000 each. Accepted: Printed Name: Date: Title Assuming no change in benefits provided to retirees, if the City would prefer to contract for the next two valuations (.lune 2011 and June 2013), BRS will agree to prepare each for a reduced fee of $6,000. To indicate you are electing this, simply check the box above the signature line. 4 A telephonic delivery of the report is included in the basic valuation price. El-riployerWizard Page 1 of 1 -ver Employment Eligibility verlficettion ;Ve,ccne Prt;ati�le iJ�cr fli L7, pqr,- PLES?;6?4 vi 50Ri,1 uIi2772Q74 Log Out Home Company Information ffq uAfii6 New Case . View Qlm5 Cornpal3y No mt: Liich rlore & Asso:;iates, Ir1c, f View / .dot 1 Starch C;aSes .,....,..-.--.,.�.._.....,....: Company M Ntimber: 276021 Oily Prw'le Edit Profile - Uoin3 usinass As j SBA) Name: flickC„?ra Risk Selviczs Charge Passwwd ` DUNS itturntjer: Changs security (iuestiors u�y r:urxf>a= - physical Location: Mailing Address: Edit CGnlpany Profile Address 1: 176L' Cmekside Oaks �7r;vo. Suite Address 1: Arid New User 200 View Existing Users Address 2: Address 2: Close Company Accourit city: Sacramento City: My state: CA stagy: View ;�aports Zip Codd 815833 Zip Code: My Rz PL;am'rres COLIAty: .5ACIRAN1ENI0 View Esmnlini Resources Take TWorial Additional Enformation: View UserMUraual Employer Identii"tetationNumber:68t1't14143 Conlacl Us Total NUMber of Employees: 1or to 489 Parent Grganlzation: Adininistrator; €3ickmore and Asaoaietas, Inc. Organization Designation: Employer Catecdoq: None of these. c:aicgnri":s aPpZy NAICS Cod,-: 561 - AI7>~AN1S7 RATIVi?: AcvL SUPFIO F SERVICES View J Edit i .... ....... ... ..... , .,...,..1,..,......,; https://e-verify.useis.gov/emp/EiiiployerWizard.aspx 7/27/2011 Ve ri fy, Company ID Number; 276021 Information Required for the E -Verify Program Information relating to your Company: .... .. .. . .. ... . . . .. ... .. ... ... .. .. ......... .. ... ... .. ... ........ ...... ... !"4 c "a G� �Is i hea S;y tenv5 Are you verifying for more than 1. si.te? If yes, please provide the number of sites verified for in each State: CALIFORNIA 1 sites} -Ver'f ....E i Company 113 Number: 276021 Information relating to the Program Administrator(s) for your Company on policy questions or operational problems: Name: Pam Leslie Telephone Number: (916) 244 -1156 Fax Number: (916) 244 - 1199 F= -mai! Address: pleslle@brsrisk.com Name: Teri Rohrer Telephone Number: (916) 244 - 1107 Fax Number (916) 290 - 4607 E-mail Address: trohr6r@brsrisk.com P * 9 -j 13 "-f � ", � 1 - -V,-:� 3"A",., � ; � '_lid �,/ -,", M