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Contract - Bartel Associates 2012-03-26 AGREEMENT FOR CONSULTANT SERVICES This Agreement is made and effective as of March 26, 2012, between the Costa Mesa Sanitary District, a sanitary district ("District"), and Bartel Associates, an LLC ("Consultant"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows: Recitals WHEREAS, the District desires to comply with the Governmental Accounting Standards Board (GASB) statement No. 45 pertaining to Other Post-Employment Benefits (OPEB); and WHEREAS, the District desires to perform an evaluation of the unfunded pension and health liabilities; and WHEREAS, Bartel Associates is an experienced actuarial consulting firm specializing in providing public agencies with actual consulting services including retiree medical plan valuations, pension plan valuations, actuarial audits, and CaIPERS retirement consulting; and WHEREAS, the District desires to retain the services of Bartel Associates to provide an analysis and presentation of the District's unfunded pension and OPEB liabilities; NOW, THEREFORE the parties hereto do hereby agree as follows: 1. TERM This Agreement shall commence on March 26, 2012, and shall remain and continue in effect until tasks described herein are completed as stated in the proposal dated March 18, 2012, unless sooner terminated pursuant to the provisions of this Agreement. 2. SERVICES Consultant shall perform the tasks described and set forth in Exhibit A, attached hereto and incorporated herein as though set forth in full. Consultant shall complete the tasks according to the schedule of performance which is also set forth in Exhibit A. 1 3. PERFORMANCE Consultant shall, at all times, faithfully, competently and to the best of his/her/its ability, experience, and talent perform all tasks described herein. Consultant shall employ, at a minimum, generally accepted standards and practices utilized by persons engaged in providing similar services as are required of Consultant hereunder in meeting its obligations under this Agreement. 4. DISTRICT MANAGEMENT District's Manager shall represent District in all matters pertaining to the administration of this Agreement, review and approval of all products submitted by Consultant, but not including.the authority to enlarge the Tasks to be Performed or change the compensation due to Consultant. The District Manager shall be authorized to act on District's behalf and to execute all necessary documents which enlarge the Tasks to be Performed or change Consultant's compensation, subject to Section 5 hereof. 5. PAYMENT (a) The District agrees to pay Consultant in accordance with the tasks as set forth in Exhibit A, attached hereto and incorporated herein by this reference as though set forth in full, upon completion of the task. Fees for services shall be billed on an hourly basis according to the fee schedule set forth in Exhibit B, attached hereto and incorporated herein by this reference as though set forth in full, upon completion of the task. This amount shall not exceed ten thousand Dollars ($10,000.00) for the total term of this Agreement unless additional payment is approved as provided in this Agreement. Said sum includes travel and other costs. (b) Consultant shall not be compensated for any services rendered in connection with its performance of this Agreement which are in addition to those set forth herein, unless such additional services are authorized in advance and in writing by the District Manager. Consultant shall be compensated for any additional services in the amounts and in the manner as agreed to by District Manager and Consultant at the time District's written authorized is given to Consultant for the performance of said services. The District Manager may approve additional work not to exceed the greater of one thousand Dollars ($1,000.00) or ten percent (10%) of the total contract sum. Any additional work in excess of this cumulative amount shall be approved by the Board of Directors. (c) Consultant will submit itemized monthly invoices as work is performed towards task completion. Payment shall be made within thirty (30) days of receipt of each invoice as to all non-disputed fees. If the District disputes any of Consultant's fees, it shall give written notice to Consultant within thirty (30) days of receipt of an invoice of any disputed fees set forth on the invoice. 2 6. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE (a) The District may, at any time, for any reasons, with or without cause, suspend or terminate this Agreement, or any portion hereof, by serving upon the Consultant at least ten (10) days prior written notice. Upon receipt of said notice, the Consultant shall immediately cease all work under this Agreement, unless the notice provides otherwise. If the District suspends or terminates a portion of this Agreement, such suspension or termination shall not make voice or invalidate the remainder of this Agreement. (b) In the event this Agreement is terminated pursuant to this Section, the District shall pay to Consultant the actual value of the work performed up to the time of termination, provided that the work performed is of value to the District. Upon termination of the Agreement pursuant to this Section, the Consultant will submit an invoice to the District pursuant to Section 5. 7. DEFAULT OF CONSULTANT (a) The Consultant's failure to comply with the provisions of?this Agreement shall constitute a default. In the event that Consultant is in default for cause under the terms of this Agreement, District shall have no obligation or duty to continue compensating Consultant for any work performed after the date of default and can terminate this Agreement immediately by written notice to the Consultant. If such failure by the Consultant to make progress in the performance of work hereunder arises out of causes beyond the Consultant's control, and without fault of negligence of the Consultant, it shall not be considered a default. (b) If the District Manager or his/her delegate determines that the Consultant is in default in the performance of any of the terms or conditions of this Agreement, he/she shall cause to be served upon the Consultant a written notice of the default. The Consultant shall have ten (10) days after service upon it of said notice in which to cure the default by rendering a satisfactory performance. In the event that the Consultant fails to cure its default within such period of time, the District shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without further notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement. 8. OWNERSHIP OF DOCUMENTS (a) Consultant shall maintain complete and accurate records with respect to the professional services required by this Agreement and will produce the work product specified in Exhibit A and other such information required by District that relate to the performance of services under this Agreement. Consultant shall maintain adequate 3 records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. Consultant shall provide free access to the representatives of District or its designees at reasonable times to such books and records; shall give District the right to examine and audit said books and records; shall permit District to make transcripts therefrom as necessary; and shall allow inspection of all work, data, documents, proceedings and activities related to this Agreement. Such records, together with supporting documents, shall be maintained for a period of three (3) years after receipt of final payment. (b) Upon completion, termination or suspension of this Agreement, all work produce reduced to any medium and other documents prepared in the course of providing the services to be performed pursuant to this Agreement shall become the sole property of the District and may be used, reused or otherwise disposed of by the District without the permission of the Consultant. With respect to computer files, Consultant shall make available to the District, at the Consultant's office and upon reasonable written request by the District, the necessary computer software and hardware for purposes of accessing, compiling, transferring and printing computer files. 9. INDEMNIFICATION (a) Indemnification for Professional Liability. When the law establishes a professional standard of care for Consultant's services, to the fullest extent permitted by law, Consultant shall indemnify, protect, defend and hold harmless District and any and all of its officials, employees and agents ("Indemnified Parties") from and against any and all losses, liabilities, damages, costs and expenses, including attorney's fees and costs to the extent same are caused in whole or in part by any negligent or wrongful act, error or omission of Consultant, its officers, agents, employees or subconsultants (or any entity or individual that Consultant shall bear the legal liability thereof) in the performance of professional services under this Agreement. (b) Indemnification for Other than Professional Liability. Other than in the performance of professional services and to the full extent permitted by law, Consultant shall indemnify, defend and hold harmless District, and any and all of its employees, officials and agents from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including attorney's fees and costs, court costs, interest, defense costs and expert witness fees), where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Consultant or by any individual or entity for which Consultant is legally liable, including, but not limited to, officers, agent, employees or subconsultants of Consultant. 4 10. INSURANCE Consultant shall maintain prior to the beginning of and for the duration of this Agreement insurance coverage as specified in Exhibit C.attached to and part of this Agreement. Such coverage shall provide automotive, commercial general liability and professional error coverage, if appropriate. 11. INDEPENDENT CONSULTANT (a) Consultant is and shall at all times remain as.to the District a wholly independent Consultant. The personnel performing the services under this Agreement on behalf of Consultant shall at all times be under Consultant's exclusive direction and control. Neither District nor any of its officers, employees, or agents shall have control over the conduct of Consultant or any of Consultant's officers, employees, or agents, except as set forth in this Agreement. Consultant shall not at any time or in any manner represent that it or any of its officers, employees, or agents are in any manner officers, employees, or agents of the District. Consultant shall not incur or have the power to incur any debt, obligation, or liability whatever against District, or bind District in any manner. (b) No employee benefits shall be available to Consultant in connection with the performance of this Agreement. Except for the fees paid to Consultant as provided in the Agreement, District shall not pay salaries, wages, or other compensation to Consultant for performing services hereunder for District. District shall not be liable for compensation or indemnification to Consultant for injury or sickness arising out of performing services hereunder. 12. LEGAL RESPONSIBILITIES The Consultant shall keep itself informed of State and Federal laws and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. The Consultant shall at all times observe and comply with all such laws and regulations. The District, and its officers and employees, shall not be liable at law or in equity occasioned by failure of the Consultant to comply with this Section. 13. UNDUE INFLUENCE Consultant declares and warrants that no undue influence or pressure has been used against or in concert with any officer or employee of the Costa Mesa Sanitary District in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement or financial inducement. No 5 officer or employee of the Costa Mesa Sanitary District will receive compensation, directly or indirectly, from Consultant, or from any officer, employee or agent of Consultant, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement. Violation of this Section shall be a material breach of this Agreement entitling the District to any and all remedies at law or in equity. 14. NO BENEFIT TO ARISE TO LOCAL EMPLOYEES No member, officer, or employee of District, or their designees or agents, and no public official who exercises authority over or responsibilities with respect to the Project during his/her tenure or for one year thereafter, shall have any interest, direct or indirect, in any agreement or sub-agreement, or the proceed thereof, for work to be performed in connection with the Project performed under this Agreement. 15. RELEASE OF INFORMATION I CONFLICTS OF INTEREST (a) All information gained by Consultant in performance of this Agreement shall be considered confidential and shall not be released by Consultant without District's prior written authorization. Consultant, its officers, employees, agents or subconsultants, shall not without written authorization from the District Manager or unless requested by the District Counsel, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories, or other information concerning the work performed under this Agreement or relating to any project or property located within the District. Response to a subpoena or court order shall not be considered "voluntary" provided Consultant gives District notice of such court order or subpoena. (b) Consultant shall promptly notify District should Consultant, its officers, employees, agents or subconsultants be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, requests for admissions, or other discovery request, court order, or subpoena from any person or party regarding this Agreement and the work performed thereunder or with respect to any project or property located within the District. District retains the right, but has no obligation, to represent Consultant and/or be present at any deposition, hearing, or similar proceeding. Consultant agrees to cooperate fully with District and to provide the opportunity to review any response to discovery requests provided by Consultant. However, District's right to review any such response does not imply or mean the right by District to control, direct, or rewrite said response. (c) Consultant covenants that neither he/she nor any officer or principal of their firm have any interest in, or shall acquire any interest, directly or indirectly, which will conflict in any manner or degree with the performance of their services hereunder. Consultant further covenants that in the performance of this Agreement, no person having such interest shall be employed by them as an officer, employee, agent or subconsultant. Consultant further covenants that Consultant has not contracted with 6 nor is performing any services, directly or indirectly, with any developer(s) and/or property owner(s) and/or firm(s) and/or partnership(s) owning property in the District or the study area and further covenants and agrees that Consultant and/or its subconsultants shall provide no service or enter into any agreement or agreements with a/any developer(s) and/or property owner(s) and/or firm(s) and/or partnership(s) owning property in the District or the study area prior to the completion of the work under this Agreement. 16. NOTICES Any notices which either party may desire to give to the other party under this Agreement must be in writing and may be given by: (i) personal service, (ii) delivery by a reputable document delivery service, such as but not limited to, Federal Express, which provides a receipt showing date and time of delivery, or (iii) mailing in the United States Mail, certified mail, postage prepaid, return receipt requested, addressed to the address of the party as set forth below or at any other address as that party may later designate by notice: To District: Costa Mesa Sanitary District 628 West 19th Street Costa Mesa, California 92627 Attn: District Clerk To Consultant: Bartel Associates, LLC 411 Borel Avenue, Suite 101 San Mateo, CA 94402 Attn: John Bartel, President 17. ASSIGNMENT The Consultant shall not assign the performance of this Agreement, nor any part thereof, nor any monies due hereunder, without prior written consent of the District. Because of the personal nature of the services to be rendered pursuant to this Agreement, only John Bartel shall perform the services described in this Agreement. John Bartel may use assistants, under its direct supervision, to perform some of the services under this Agreement; however, all client contact and interaction regarding professional services shall be provided by John Bartel and/or his designee . Consultant shall provide District fourteen (14) day's notice prior to the departure of John Bartel from Consultant's employ. Should he/she leave Consultant's employ, the District shall have the option to immediately terminate this Agreement, within three (3) days of the close of said notice,period. Upon termination of this agreement, Consultant's sole compensation shall be payment for actual services performed up to, and including, the date of termination or as may be otherwise agreed to in writing between the Board of Directors and the Consultant. 18. LICENSES At all times during the term of this Agreement, Consultant shall have in full force and effect, all licenses required of it by law for the performance of the services described in this Agreement. 19. GOVERNING LAW The District and Consultant understand and agree that the laws of the State of California shall govern the rights, obligations, duties and liabilities of the parties to this Agreement and also govern the interpretation of this Agreement. Any litigation concerning this Agreement shall take place in the municipal, superior or federal district court with jurisdiction over the Costa Mesa Sanitary District. 20. ENTIRE AGREEMENT This Agreement contains the entire understanding between the parties relating to the obligations of the parties described in this Agreement. All prior or contemporaneous agreements, understandings, representations, and statements, oral or written, are merged into this Agreement and shall be of no further force or effect. Each party is entering into this Agreement based solely upon the representations set forth herein and upon each party's own independent investigation of any and all facts such party deems material. 21. CONTENTS OF REQUEST FOR PROPOSAL AND PROPOSAL Consultant is bound by the contents of Exhibit A hereto and incorporated herein by this reference. In the event of conflict, the requirements of District's Request for Proposals and this Agreement shall take precedence over those contained in the Consultant's proposals. 22. MODIFICATION No modification to this Agreement shall be effective unless it is in writing and signed by authorized representatives of the parties hereto. 23. AUTHORITY TO EXECUTE THIS AGREEMENT The person or persons executing this Agreement on behalf of Consultant warrants and represents that he/she has the authority to execute this Agreement on 8 behalf of the Consultant and has the authority to bind Consultant to the performance of its obligations hereunder. 24. INTERPRETATION In the event of conflict or inconsistency between this Agreement and any other document, including any proposal or Exhibit hereto, this Agreement shall control unless a contrary intent is clearly stated. 25. MODIFICATION This Agreement may not be modified orally but only in writing, signed by a person with authority to amend this Agreement. 26. BUSINESS LICENSE Consultant shall obtain a business license from the City of Costa Mesa unless legally exempt. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed this day and year first above written. COSTA MESA SANITARY DISTRICT BARTEL ASSOCIATES, LLC "District Manager Signature John E. Bartel Typed Name President • Title APPROVED AS TO FORM: District Counsel 9 EXHIBIT A From: John Bartel [mailto:jbartel@bartel-associates.com] Sent: Sunday, March 18, 2012 8:45 PM To: Anna Sanchez Subject: Bartel Associates Project Scope and Fees Anna, I'm sorry for not getting you folks a fee letter before now and understand if you want to use another consultant. In the interest of time I thought I would summarize what we would do and our expected fees in this email: Project We understand you are looking for a presentation to your Board to discuss: 1. The District's unfunded pension and OPEB liability 2. Comparison of the District's benefits to other agencies 3. Comparison of the District's unfunded liabilities to other agencies Fees Our fees to prepare the analysis, including a presentation to the District's Board, would be approximately$8-10,000. Timing We can be ready to present our analysis to the District's Board within 4 weeks of receipt of all required data/information. If the above summary and fees are acceptable then we will send you a list of information we need to begin our analysis and to schedule a Board meeting. Again, I am sorry for not getting you our fee estimate before now and hope I have not created a logistical issue for you. John John E.Bartel President BJiLE . ' � . l Bartel Associates,LLC 411 Borel Avenue,Ste 101 San Mateo CA 94402 Phone 650/377-1601 Cell 415/706-6320 Fax 650/345-8057 3 From: John Bartel [mailto:jbartel©bartel-associates.com] • Sent: Monday, March 26, 2012 9:07 AM To: Anna Sanchez Cc: Teresa Gonzalez Subject: RE: Bartel Associates Project Scope and Fees Anna, Thank you for your email, we look forward to working with you and the District. We have forwarded your insurance requirements on to our insurance broker. As a start following is a preliminary list of items we would like to have: 1. CaIPERS pension: a. Historical valuation reports from June 30,2003 through June 30, 2009 (you have already provided the 2010 report) b. Effective date of 2@60 second tier 2. Retiree medical (OPEB): a. If one exists, the most recent actuarial valuation report b. If you do not have an actuarial valuation report then please provide: i. Participant data in Excel format, active and retired participant information can be provided on separate worksheets. 1. Active Data-name, employee number(not Social Security number), gender, birth date, hire date,total Ca1PERS service including service at other agencies(if available), healthcare plans(medical,dental, vision), single/2-party/family coverage(medical, dental,vision), bargaining or employee group, and annual PERSable compensation. Indicate the pay period for the compensation reported. Include any active employees who have waived healthcare coverage. 2. Retiree Data -name, employee number(not Social Security number),gender, birth date, hire date,retirement type(service retirement, disability retirement, surviving spouse), retirement date, healthcare plans(medical, dental, vision), single/2-party/family coverage (medical, dental, vision),bargaining or employee group, spouse's birth date(if available), portion of premium paid by the District(medical,dental, vision), and portion of premium paid by the retiree(medical, dental, vision). Include any retirees or surviving spouses of retirees who have waived coverage. ii. The census data provided should be a snapshot of the District's active employees and retirees receiving or who have waived healthcare benefits as of the valuation date of a specific date(e.g. June 30,2011). iii. The District may want to request a copy of its June 30,2011 CaIPERS PEMHCA database by downloading and submitting the CaIPERS "GASB 45 Data Extract Request and Non-Disclosure Agreement"and the"GASB 45 Data Extract Receiving Party Sending Electronic Information 1 Agreement" from the Ca1PERS website. This data extract may be helpful to the District in assembling the requested employee census information, including retirees who waived coverage. If the District wants us to use the Ca1PERS data extract for the valuation, it should(1) add PERSable compensation to each active record, (2) add bargaining unit or employee group to each active and retiree record if results are needed by employee group, (3)remove any retirees who are not eligible to participate in the District's retiree healthcare plan,for example, if they did not retire directly from the District, and (4) make any additions, deletions, or changes necessary to make the file current as of the valuation date. iv. In order to maintain confidentiality,please do not provide Social Security numbers for the employee number. We will delete any files that include Social Security numbers and request a revised file. c. The District's last monthly CaIPERS health premium invoice. Please remove any Social Security numbers. We may need additional data depending on our review of the District's benefits. Please call me with any questions about the above information. It will also be helpful to put a target meeting on the calendar so please let me know what date(s) you folks have in mind. John John E.Bartel President Bartel Associates,11c 411 Borel Avenue,Ste 101 San Mateo CA 94402 Phone 650/377-1601 Cell 415/706-6320 Fax 650/345-8057 • EXHIBIT B Anna Sanchez From: Denise Brown <dbrown @bartel-associates.com> Sent: Monday, March 26, 2012 12:50 PM To: Anna Sanchez • Cc: John Bartel • Subject: Bartel Associates hourly rates Hi Anna, Please see the rate schedule for Bartel Associates. Please let me know if you need anything else. Our fees are a function of the hours worked by each professional on a project and their hourly billing rates. Our hourly rates are as follows: Team Member Hourly Rate Partner $250 - $300 Assistant Vice President $200 - $225 Senior Actuarial Analyst $150 Actuarial Analyst $125 • Administrative Support $75 Thank you, Denise Brown Denise E. Brown, Sr.Office Administrator BARTEL / is SO 1.ATL . LLC 411 Bore]Avenue,Suite 101 San Mateo,CA 94402 Office-650-377-1616 Fax-650-345-8057 dbrown@bartel-associates.com • 1 EXHIBIT C c$ANITg4. N T � y COSTA 9ESJ SVv7cc4 ( oePoRgo- . . . an Independent Special-District Memorandum To: Contractors From: Anna Sanchez, Administrative Service Manager Date: January 9, 2012 Subject: District Insurance Requirements General Liability $1,000,000 per occurrence for bodily injury, personal injury, and property damage. General Liability insurance shall endorse the Costa Mesa Sanitary District as an additional insured party. Automobile Liability $1,000,000 per accident for bodily injury and property damage. Automobile Liability insurance shall cover "any" vehicle. Workers' Compensation and Employer's Liability Workers' Compensation limits as required by the Labor Code of the State of California. Employer's Liability limits of$1,000,000 per accident for bodily injury or disease. Acceptability of Insurers: All insurance must be placed with insurers with a current A.M. Best financial rating no less than A-:VII, licensed to do business in California, and satisfactory to the District. All insurance documents must be submitted and approved by the District's Risk Manager prior to execution of any Agreement with the Costa Mesa Sanitary District. Protecting our community's hearth by providing solid waste and sewer correction services crosdca.gov