Agenda packet — Compton City Council, June 25, 2024 (part 3 of 4)

WHEREAS, funds in the amount of F ourteen Thousand Nine Hundred Eighteen Dollars and Ninety Cents ($14,918.90) are available in the Compton Municipal Water Department’s Fiscal Year 2023-2024 budget in Account No. 5000-900-000-4336 to purchase hardware for GIS installation; eighteen (18) tablets, (18) tablet cases and extended warranties from Insight Public Sector.

NOW, THEREFORE, THE CITY COUNCIL OF THE CIT Y OF COMPTON DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. That the City Manager is hereby authorized to amend the Municipal Water Department’s ARPA Fiscal Year 2023-2024 Budget as follows:

Decrease Appropriations in Budget Account
2810-860-009-4391 Capital Outlay- Other $191,160.

Increase Appropriations in Budget Account
2810-860-009-4222 Computer Software $ 191,160
($87,660. ESRI)
($103,500. Pro-West)

Section 2. That after transfer, funds in the amount of One Hundred Ninety -One Thousand One Hundred Sixty Dollars will be available in the Compton Municipal Water Department’s ARPA Fiscal Year 2023 -2024 budget in Account No. 2810-860-009-4222 ($87,660 for ESRI for GIS software) and ($103,500 for Pro-West & Associates for GIS technical support).

Section 3. That funds in the amount of Fourteen Thousand Nine Hundred Eighteen Dollars and Ninety Cents ($1 4,918.90) are available in the Compton Municipal Water Department’s Fiscal Year 2023-2024 budget in Account No. 5000-900-000-4336 to purchase hardware for GIS installation; eighteen (18) tablets, (18) tablet cases and extended warranties from Insight Public Sector.

Section 4. That the City Manager is hereby authorized to enter into a three -year Enterprise Agreement with ESRI, and a three-year Technical Support Agreement with Pro- West & Associates.

Section 5. That the City Manager is hereby authorized to establish purchase orders for: ESRI ( $87,660), Pro-West & Associates ($103,500) and Insight Public Sector ($14,918.90) from the following Accounts:

• ESRI 2810-860-009-4222 ARPA/Computer Software $87,660. • Pro-West 2810-860-009-4222 ARPA/Computer Software $103,500. • Insight 5000-900-000-4336 Water/Computer Hardware $14,918.90.

Section 6. That copies of this Resolution shall be filed in the offices of the City Manager, City Controller, City Clerk, City Attorney and the Municipal Water Department.

Section 7. That the Mayor shall sign and the City Clerk shall attest to the adoption of this Resolution.

ADOPTED this _____________ day of ______________, 2024.

RESOLUTION NO. ________________

Page 3 ends

________________________________

MAYOR OF THE CITY OF COMPTON

ATTEST:

____________________________________

CITY CLERK OF THE CITY OF COMPTON

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss

CITY OF COMPTON )

I, Vernell McDaniel, City Clerk of the City of Compton, hereby certify that the foregoing Resolution was adopted by the City Council of the City of Compton, signed by the Mayor and attested by the City Clerk at a regular meeting thereof held on the __________ day of ____________________, 2024.

That said Resolution was adopted by the following vote, to wit:

AYES: COUNCIL MEMBERS-
NOES: COUNCIL MEMBERS-
ABSTAIN: COUNCIL MEMBERS-
ABSENT: COUNCIL MEMBERS-

____________________________________

CITY CLERK OF THE CITY OF COMPTON

PROFESSIONAL SERVICES AGREEMENT

BETWEEN

CITY OF COMPTON
AND

PRO-WEST ASSOCIATES
This AGREEMENT is entered by and between the CITY OF COMPTON, a municipal corporation of the State of California (hereinafter referred to as “CITY”) located at 205 South Willowbrook Avenue, Compton, California 90220, and Pro-West & Associates (hereinafter referred to as “CONSULTANT”), located at 8239 State 371 NW, Post Office Box 871, Walker, Minnesota 56484.

RECITALS:

WHEREAS, the Compton Municipal Water Department (CMWD) has used Geographical Information Systems (GIS) technology for the timely and orderly movement of water flows, wastewater, and stormwater processes; and
WHEREAS, the City of Compton Municipal Water Department (CMWD) relies on the ability to access the location of water utilities throughout the City; and WHEREAS, in order for the CMWD to function at optimal levels, and ensure that all Water Department service employees are equipped with the data needed on a day to day basis, GIS software and ancillary products and equipment are a necessity; and WHEREAS, the Environmental Systems Research Institute (ESRI) has a network of partners to support its GIS software; and
WHEREAS, both Pro-West& Associates and Insight Public Sector are a part of the ESRI Partner Network (EPN); and
WHEREAS, Pro-West & Associates provides consulting, data services, and application development for its customers, and Insight Public Sector provides hardware (tablets) and other products utilizing competitive bidding for its customers; and

WHEREAS, by Resolution No.____________ adopted on the ___________, the City Council authorized the City Manager to enter into a three (3) year professional services agreement with Pro-West & Associates to provide the necessary services; and WHEREAS, Consultant is willing to render such professional services subject to the terms and conditions set forth in this Agreement.

NOW, THEREFORE, Consultant and City, for the consideration, terms and conditions herein described, mutually agree as follows:

AGREEMENT:

1. Services to be rendered by consultant.It is the mutual understanding of the parties that the Consultant shall perform and be responsible for providing professional consultation services as it relates to Geospatial Information Systems for the City of Compton Municipal Water Professional Services Agreement – Pro-West & Associates (Consultant GIS Technology Services)
Resolution No. ___________
2 Department (“Department”), as more particularly detailed in the “Scope of Services,” which is attached hereto, identified as Attachment A, and incorporated herein.

Consultant acknowledges that in entering into this Agreement the City is relying on Consultant's special skills and experience to do and perform the services in accordance with best standards of professional practice. While performing the services, Consultant agrees to perform all the said work and furnish all the necessary materials at his own cost and expense (except as otherwise expressly agreed to be furnished by the City), necessary to complete said services in a manner consistent with that degree of care and skill ordinarily exercised by members of the same profession currently practicing under similar circumstances and to the reasonable satisfaction of the City.

Consultant services hereunder shall be performed in good, workmanlike and professional manner. Consultant shall be responsible for correcting and completing all errors and omissions related to the services provided by the Consultant for this Agreement at no additional cost to the City. “Errors” and “Omissions” for purposes of this paragraph are defined to mean a failure by the Consultant to meet the standards of his profession as set forth in the preceding paragraph.

The acceptance of the services by City does not release Consultant from these obligations.

Consultant will be responsible for employing or engaging all persons Consultant determines that are necessary, if any, to perform the services required by this Agreement. All of Consultant's staff will be qualified by training and experience to perform their assigned tasks.

Consultant will give his personal attention to the fulfillment of the provisions of this Agreement by all of his employees and subconsultants, if any, and will keep the services under his control. On demand of City, if any employee or subconsultant of consultant fails or refuses to carry out the provisions of this Agreement or appears to be incompetent or to act in a disorderly or improper manner, he or she will be discharged immediately from the services rendered pursuant to this Agreement.

Pro-West & Associates, shall be primarily responsible for performing the services required by this Agreement.

2. Duration of Contract. The parties agree that this Agreement shall commence effective July 1, 2024 and be effective through June 30, 2027 (720 hours), unless terminated earlier.

3. Compensation.The method of payment for the services rendered will be based on a fee-for-services basis, billable at a rate of Thirty-Four Thousand Five Hundred Dollars (34,500.), per year. It is understood and agreed between the parties that the maximum compensation payable for the services to be provided by the Consultant shall be limited not-to- exceed the amount of One Hundred Three Thousand Five Hundred Dollars ($103,500.) during the period of July 1, 2024 through June 31, 2027.

The total sum paid the Consultant will include compensation for all work, including travel, materials, supplies, vendor services, expenses and subcontracted work. No additional compensation will be paid to the Consultant, unless there is a change in the scope of the services.

In the instance of a change in the scope of services, adjustment to the compensation may be negotiated between the Consultant and the City. Adjustment in the compensation will not be effective until authorized and approved by contract amendment.

Progress payments may be made in arrears based on the percentage of work and deliverables completed by the Consultant. If Consultant fails to submit the required deliverable Professional Services Agreement – Pro-West & Associates (Consultant GIS Technology Services)
Resolution No. ___________
3 items according to schedule or as required by the Agreement, except for those amounts that are due and not reasonably in dispute, the City shall have the right to delay payment and/or terminate this Agreement in accordance with the provisions noted herein.

Consultant shall be reimbursed within thirty (30) days, or as promptly as fiscal procedures may permit, for the undisputed reasonable value of services performed, upon receipt by the City of itemized invoices for services completed. Invoices shall be submitted no later than 45 calendar days after the performance of work for which the Consultant is billing. Invoices shall detail the work performed on each task as applicable. Invoices shall be delivered via email or mailed to the General Manager of the Compton Municipal Water Department at the following address: City of Compton, 205 South Willowbrook Avenue, Compton, California 90220.

Unless there is a dispute as to the validity of the services and/or charges submitted, if the City fails to compensate Consultant for the invoiced amount within at least thirty-seven (37) days after receipt of the itemized invoice, then the Consultant may upon five (5) days written notice to the City, cease performing the services for the City until the amount outstanding and due has been received by the Consultant.

In the event of termination, the Consultant shall be entitled to compensation for the undisputed reasonable value of services performed to the effective date of termination, including any noncancellable obligations incurred prior to termination; provided, however, that the City may condition payment of such compensation upon the Consultant’s delivery to the City of any and all City property, documents, reports, records, materials and work product associated with the performance of this Agreement.

4. Ownership of Materials.All product produced by Consultant or his agents, employees, and subconsultants pursuant to this Agreement (the “Work Product”) is the property of City. In the event this Agreement is terminated, all Work Product produced by Consultant or his agents, employees and subconsultants pursuant to this Agreement will be delivered to City pursuant to the termination clause of this Agreement.

The Work Product may be used by City and its agents, employees, representatives, and assigns, in whole or in part, or in modified form, for all purposes City may deem advisable, without further employment of or payment of any compensation to Consultant; provided, however, that if this Agreement is terminated for any reason prior to completion of the Project and if under such circumstances City uses, or engages the services of and directs another consultant to use the Work Product, City agrees to hold Consultant harmless from any and all liability, costs, and expenses relative to claims arising out of matters and/or events which occur subsequent to the termination of this Agreement as a result of causes other than the fault or negligence of Consultant, or anyone for whose acts it is responsible, in preparation of the Work Product.

Consultant will not be responsible for deficiencies solely attributable to modifications of the Work Product performed by others, or that arise from use of the Documents in connection with a project or site other than that shown in the Work Product.

5. Independent Consultant Status.Consultant, employees, subconsultants, agents and volunteers (collectively hereinafter the “Consultant”), will perform the services in Consultant's own way and pursuant to this Agreement as an independent Consultant and in pursuit of Consultant's independent calling, and not as an employee of City. The persons used by Consultant to provide the services under this Agreement will not be considered employees of City for any purposes.

Neither the City nor any of its officers, employees, agents or volunteers shall have any control over the conduct of the Consultant, except as expressly set forth in this Agreement. Consultant Professional Services Agreement – Pro-West & Associates (Consultant GIS Technology Services)
Resolution No. ___________
4 expressly warrants that while engaged in carrying out and complying with any terms and conditions of this Agreement that Consultant shall not at any time or in any manner, represent that Consultant is in any manner officers, employees, agents or volunteers of the City. Consultant shall obtain no rights to retirement, health care or any other benefit that accrue to City officials, officers, or employees. Consultant expressly waives any claim to such rights.

The payment(s) made to Consultant pursuant to the Agreement will be the full and complete compensation to which Consultant is entitled. City will not make any federal or state tax withholdings on behalf of Consultant or his agents, employees or subconsultants. City will not pay any workers' compensation insurance, retirement contributions or unemployment contributions on behalf of Consultant or his employees or subconsultants. Consultant agrees to indemnify and pay City within thirty (30) days for any tax, retirement contribution, social security, overtime payment, unemployment payment or workers' compensation payment which City may be required to make on behalf of Consultant or any agent, employee, or Consultant of Consultant for work done under this Agreement. At the City’s election, City may deduct the amounts paid pursuant to this section, from any balance owing to Consultant.

Professional uniform and appropriate personal protective equipment (PPE) for field worker should be provided and any quality improvement or communication software applications will also be supplied by the Consultant.

6. Successors, Assignment and Delegation.City and the Consultant each binds themselves, their partners, successors, assigns and legal representatives to the other hereto and to partners, successors, assigns and legal representatives of such other party in respect to all covenants, agreements and obligations contained in this Agreement.

The expertise and experience of Consultant are material considerations for this Agreement. Consultant shall not assign or transfer any interest in this Agreement or the performance of any of Consultant’s obligations under this Agreement without the prior written consent of the City. Any attempted assignment or transfer of any of Consultant’s rights, duties or obligations arising under this Agreement shall be null and void.

7. Nondiscriminatory Employment Practices.During the performance of this Agreement, the Consultant agrees not to discriminate against any employee or applicant for employment because of race, sex, creed, color, religion, age, sexual orientation, marital status, national origin, political affiliation, handicap or belief in accordance with requirements of City, State or Federal laws and regulations. Consultant will take affirmative action to ensure that applicants are employed, and that employees are treated during employment without regard to their race, sex, creed, color, religion, age, sexual orientation, marital status, national origin, political affiliation, handicap or belief in accordance with requirements of City, State or Federal laws and regulations. Such actions shall include, but not be limited to the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoffs 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, applicants and subconsultants for employment, notices setting forth the provisions of this non-discrimination clause.

In the event of the Consultant’s non-compliance with the non-discrimination clause of this Agreement, this Agreement may be immediately canceled, terminated or suspended in whole or in part.

Professional Services Agreement – Pro-West & Associates (Consultant GIS Technology Services)
Resolution No. ___________
5 8. Subcontracting.Consultant's services are unique and personal. Except as may be agreed to by the City, Consultant will not subcontract any portion of the services without prior written approval of the Water Department General Manager. If Consultant subcontracts any of the services, Consultant will be fully responsible to City for the acts, errors and omissions of Consultant's subconsultant and of the persons either directly or indirectly employed by the subconsultant, as Consultant is for the acts and omissions of persons directly employed by Consultant. Nothing contained in this Agreement will create any contractual relationship between any subconsultant of Consultant and City. Consultant will be responsible for payment of subconsultants. Consultant will bind every subconsultant and every subconsultant of a subconsultant by the terms of this Agreement applicable to Consultant's work unless specifically noted to the contrary in the subcontract and approved in writing by City.

9. Other Consultants.The City reserves the right to employ other consultants in connection with the services.

10. Indemnification.Consultant shall indemnify and save harmless the City, its officials, officers, employees, agents and volunteers (collectively hereinafter the “City”), against any and all damages to property or injuries to or death of any person or persons, including property and employees or agents of the City and shall indemnify and save the City from any and all liability and expense including reimbursement of reasonable defense costs and legal fees, and claims, demands, suits, actions or proceedings of any kind or nature, including Workers’ Compensation claims, of or by anyone whomsoever to the extent resulting from or arising out of the negligent, reckless or willful misconduct for the Consultant, his officers, employees, subconsultants or agents in the performance of the duties undertaken by Consultant pursuant to this Agreement.

This indemnification and hold harmless obligation does not extend to claims arising out of the negligence or willful misconduct of the City.

11. Insurance.Without limiting the Consultant’s indemnification of the City, Consultant shall obtain and maintain, at its cost and expense, for the duration of the Agreement and any and all amendments, insurance against claims for injuries to persons or damage to property which may arise out of or in connection with performance of the services by Consultant or Consultant’s agents, representatives, employees or subconsultants. The insurance will be obtained from an insurance carrier admitted and authorized to do business in the State of California. Such evidence shall specifically identify this Agreement and shall contain express conditions that the City is to be given written notice at least thirty (30) days in advance of any termination or implementation of a reduction of limits or material change of insurance coverage as specified herein. Failure on the part of the Consultant to procure or maintain insurance shall constitute a material breach upon which the City may immediately terminate this Agreement. All insurance required hereunder shall be primary with respect to any insurance maintained by the City.

Coverages and Limits. Consultant will maintain the types of coverages and minimum limits indicated below, unless the Risk Manager or City Manager, in consultation with the City Attorney approves a lower amount. These minimum amounts of coverage will not constitute any limitations or cap on Consultant's indemnification obligations under this Agreement. City, its officers, agents, volunteers and employees make no representation that the limits of the insurance specified to be carried by Consultant pursuant to this Agreement are adequate to protect Consultant. The coverage will contain no special limitations on the scope of its protection to the below-designated insureds except for Workers Compensation and errors and omissions insurance. Consultant will obtain occurrence coverage, excluding Professional Liability, which Professional Services Agreement – Pro-West & Associates (Consultant GIS Technology Services)
Resolution No. ___________
6 will be written as claims-made coverage. If Consultant believes that any required insurance coverage is inadequate, Consultant will obtain such additional insurance coverage, as Consultant deems adequate, at Consultant's sole expense.

11.1 Commercial General Liability Insurance. $1,000,000 combined single- limit per occurrence for bodily injury, personal injury and property damage. If the submitted policies contain aggregate limits, general aggregate limits will apply separately to the work under this Agreement or the general aggregate will be twice the required per occurrence limit.

11.2 Workers' Compensation and Employer's Liability. Workers' Compensation limits as required by the California Labor Code and Employer's Liability limits of $1,000,000 per accident for bodily injury. Workers' Compensation and Employer's Liability insurance will not be required if Consultant has no employees and provides, to City's satisfaction, a declaration stating this.

11.3 Professional Liability. Errors and omissions liability appropriate to Consultant’s profession with limits of not less than $1,000,000 per claim. The coverage shall also provide an extended two (2) year reporting period commencing upon termination or cancellation of this Agreement.

Endorsements. For Commercial General Liability Insurance, Consultant will ensure that the policies are endorsed to name the City of Compton and its respective elected and appointed officers, officials, employees, agents and volunteers as “additional insureds” with respect to liability arising out of the activities of the Consultant. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City. Prior to City's execution of this Agreement, Consultant will furnish certificates of insurance and endorsements to City.

12. Permits and Licenses.Consultant, at its own expense, during the term of this Agreement, shall obtain and maintain all appropriate business and professional permits, licenses and certificates that may be required in connection with the performance of services by the Consultant. Upon execution of this Agreement, the Consultant shall show evidence of a business license permit in conformance with Section 9-1.2 of the Compton Municipal Code.

13. Maintenance of Records. Consultant will maintain complete and accurate records with respect to costs incurred under this Agreement. All records will be clearly identifiable. Consultant will allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of records and any other documents created pursuant to this Agreement.

Consultant will allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years, or longer if required by law, from the date of final payment under this Agreement.

14. Warranties.Consultant represents and warrants (i) that Consultant has no obligations, legal or otherwise, inconsistent with the terms of this Agreement or with Consultant’s undertaking this relationship with City, (ii) that the performance of the services called for by this Agreement do not and will not violate any applicable law, rule or regulation or any proprietary or other right of any third party, (iii) that Consultant will not use in the performance of his responsibilities under this Agreement any confidential information or trade secrets of any other person or entity and (iv) that Consultant has not knowingly entered into or will enter into any agreement (whether oral or written) in conflict with this Agreement.

Professional Services Agreement – Pro-West & Associates (Consultant GIS Technology Services)
Resolution No. ___________
7 15. General Compliance with Laws. Consultant will keep fully informed of federal, state and local laws and ordinances and regulations which in any manner or in any way affect the performance of the services by Consultant. Consultant will at all times observe and comply with these laws, ordinances, and regulations and will be responsible for the compliance of the services with all applicable laws, ordinances and regulations, including, but not limited to strict compliance with the California Confidentiality of Medical Information Act and the Health Insurance Portability and Privacy Act and any regulations promulgated thereunder.

16. Termination.In the event of the Consultant's failure to prosecute, deliver, or perform the services, after giving written notice of default and two (2) days to correct the same, then, in addition to any other remedies, City may terminate this Agreement for nonperformance by notifying Consultant in writing. Consultant has five (5) business days to deliver any documents owned by City and all work in progress to City address contained in this Agreement. City will make a determination of fact based upon the work product delivered to City and of the percentage of work that Consultant has performed which is usable and of worth to City in having the Agreement completed. Based upon that finding City will determine the final payment of the Agreement. In the event City elects to terminate, City will have the right to immediate possession of all Work Product and work in progress prepared by Consultant, whether located at the project site, at Consultant's place of business, or at the offices of a subconsultant.

The City’s obligation is payable only from funds appropriated for the purpose of this Agreement. All funds for payments after the end of the current fiscal year are subject to the City’s legislative appropriation for this purpose. In the event this Agreement extends into succeeding fiscal year periods and the City Council does not allocate sufficient funds for the next succeeding fiscal year payments, this Agreement shall terminate immediately upon written notice from the City.

Either Party, upon tendering fifteen (15) calendar days written notice to the other Party, may terminate this Agreement for convenience. In this event and upon request of City, Consultant will assemble the work product without charge and put it in order for proper filing and closing and deliver it to City. Consultant will be paid for work performed to the termination date; however, the total will not exceed the lump sum fee payable under this Agreement. City will make the final determination as to the portions of tasks completed and the compensation to be made.

17. Force Majeure.In the event that performance by either party is rendered impossible (permanently or temporarily) due to acts of war, acts of terrorism, fires, floods, epidemics, quarantine restrictions, or other natural occurrences, strikes, work slowdowns, lockouts (other than lockout by Consultant), or other similar acts to those described above or other causes beyond the reasonable control of such party, and without fault or negligence, said event shall excuse performance by such party, or in the case of temporary impossibility, shall excuse performance only for a period commensurate with the period of impossibility. Notwithstanding the foregoing, City shall have the right to terminate this Agreement upon any event that renders performance impossible. In such case, City shall be responsible for payment of compensation for the reasonable value of services rendered to the point at which this Agreement is terminated, but in no event to exceed the total lump sum fee payable under this Agreement.

18. Covenants Against Contingent Fees. Consultant warrants that Consultant has not employed or retained any company or person, other than a bona fide employee working for Consultant, to solicit or secure this Agreement, and that Consultant has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift, or any other consideration contingent upon, or resulting from, the award or Professional Services Agreement – Pro-West & Associates (Consultant GIS Technology Services)
Resolution No. ___________
8 making of this Agreement. For breach or violation of this warranty, City will have the right to terminate this Agreement for nonperformance, or, in its discretion, to deduct from the Agreement price or consideration, or otherwise recover, the full amount of the fee, commission, percentage, brokerage fees, gift, or contingent fee.

19. Jurisdiction, Venue and Governing Law. Any action at law or in equity brought by either of the Parties for the purpose of enforcing a right or rights provided for by this Agreement will be tried in a court of competent jurisdiction in the County of Los Angeles, State of California, and the Parties waive all provisions of law providing for a change of venue in these proceedings to any other county. This agreement will be governed by the laws of the State of California.

20. Testimony.Consultant will testify at City's request if litigation is brought against City in connection with Consultant's services under this Agreement. Unless the action is brought by Consultant, or is based upon Consultant's actual or alleged negligence or other wrongdoing, City, upon prior written agreement with Consultant will compensate Consultant for time spent in preparation for testimony, testimony, and travel at Consultant's standard hourly rates at the time of actual testimony.

21. Waivers.The waiver by either Party of any breach or violation of any term, covenant, or condition of this Agreement or of any applicable law will not be deemed to be a waiver of such term, covenant, condition or law or of any subsequent breach or violation of same or of any other term, covenant, condition or law. The acceptance by either Party of any fee or other payment which may become due under this Agreement will not be deemed to be a waiver of any preceding breach or violation by the other Party of any term, covenant, or condition of this Agreement or any applicable law.

22. Severability.If any term, provision, condition or covenant of this Agreement or its application to any party or circumstances shall be held, to any extent, invalid or unenforceable, the remainder of this Agreement, or the application of the term, provision, condition or covenant to persons or circumstances other than those as to whom or which it is held invalid or unenforceable, shall not be affected, and shall be valid and enforceable to the fullest extent permitted by law.

23. Amendments.This Agreement may be modified or amended only be written document executed by both Consultant and City’s City Manager and approved as to form by the City Attorney. Such document shall expressly state that it is intended by the parties to amend the terms and conditions of this Agreement.

24. Confidentiality. All documents, reports, information, data, and exhibits prepared or assembled by Consultant in connection with the performance of the services pursuant to the Agreement are confidential until released by the City to the public, and the Consultant will not make any of these documents or information available to any individual or organization not employed by the Consultant or the City without the written consent of the City before any such release.

25. Entire Agreement. This Agreement, together with any other written document referred to or contemplated by it embody the entire Agreement and understanding between the parties relating to the subject matter of it. The City Manager is authorized, in consultation with the City Attorney, to agree to non-material amendments to this Agreement. Neither this Agreement nor any of its provisions may be amended, modified, waived or discharged except in a writing signed by both parties.

Professional Services Agreement – Pro-West & Associates (Consultant GIS Technology Services)
Resolution No. ___________
9 26. Notices.Any notices required or permitted under this Agreement shall be effective when delivered in person; and effective one (1) business day after delivery by facsimile transmission; and effective five (5) days after mailing by U.S. Mail, postage prepaid and properly addressed as follows:

To Consultant: Pro-West & Associates
8239 State 371 NW
P.O. Box 812
Walker, MN 56484
To City: City of Compton
205 South Willowbrook Avenue
Compton, California 90220
Attn: General Manager, Water Department
(310) 605-5555
Copy to: City of Compton
205 South Willowbrook Avenue
Compton, California 90220
Attn: City Manager
In the event of any change of address, the moving party is obligated to notify the other party of the change of address in writing. Each party may amend, supplement and update the notice list to add, delete or replace any listed individuals; however, the amendment must be in writing.

27. Miscellaneous.No provision of this Agreement is to be interpreted for or against either party because that party or that party’s legal representative drafted such provision.

Should either party hereto, or any representative, successor or assign of either party hereto, resort to litigation to enforce the provisions of this Agreement, the party or parties prevailing in such litigation shall be entitled, in addition to such other relief as may be granted, to recover its or their reasonable attorney’s fees and costs in such litigation from the party or parties against whom enforcement is sought.

IN WITNESS WHEREOF, CONSULTANT has executed this Agreement, and the CITY, by its City Manager, who is authorized to do so, has executed this Agreement.

Pro-West & Associates

CONSULTANT
Dated: _ By ___________________________________ Professional Services Agreement – Pro-West & Associates (Consultant GIS Technology Services)
Resolution No. ___________
10 CITY OF COMPTON
Recommended for Approval:

By ____________________________________ Dated: ______________ Jose Garfias, Interim General Manager
Approved by:

Dated: _______________ By _________________________________ Willie A. Hopkins, City Manager
Approved as to form:

By _________________________________ Dated: ______________ Eric Perrodin, City Attorney
ATTEST:

Dated: _______________ By __________________________________ Vernell McDaniel, City Clerk
Professional Services Agreement – Pro-West & Associates (Consultant GIS Technology Services)
Resolution No. ___________
11 “ATTACHMENT A”
Professional Services Agreement – Pro-West & Associates (Consultant) GIS Consulting Services
Compton Municipal Water Department
Scope of Services Provided by Consultant:

1. GIS coordinating services:
a. Establish meetings with departments within the City of Compton i. Work with individual departments and staff
ii. Work with multiple departments simultaneous
iii. Establish reoccurring status/check-in meetings
b. Assist the City in working with third party vendors (tax, imagery, document imagery, etc.)

2. GIS Data Development /Editing
a. Any ongoing data maintenance and updates required (a few examples below) i. Utility data
ii. Address or road updates
iii. Zoning data
iv. Land use data
v. Streetlight data

3. Geodatabase/SQL
a. Management best practices
b. Data management and automated workflows
c. SQL management
d. Training
e. Troubleshooting
f. Custom scripts and/or tools

4. Parcel Support
a. Fabric migration
b. Parcel maintenance (fabric or non-fabric)
c. Legal description training and support (reading/interpreting)

5. ArcGIS Online support
a. Solutions
b. Groups
c. Feature services

6. System Integration
Professional Services Agreement – Pro-West & Associates (Consultant GIS Technology Services)
Resolution No. ___________
12 a. Third party system assessment
b. Third party system Integration with GIS solutions and/or databases c. Training
d. Troubleshooting

7. Solution Configuration

1. Solutions configured using ESRI COTs templates and/or Web Appbuilder

2. Departmental and interdepartmental workflow assessment and design

3. Open Data

4. Story maps

5. Dashboards

6. GeoEvent integration

7. Strategic planning for solution implementations

8. Training

9. Troubleshooting

8. Custom development
a. Automation tasks (python included)
b. Application development
c. Widget development

9. Desktop GIS (ArcMap/Pro)
a. Training
b. Troubleshooting
c. Custom tools
d. Modeling

10. Infrastructure & Software
a. Hardware/software analysis
b. ESRI software upgrades
c. Service parks/patches
d. System design and best practices
e. ESRI Enterprise deployment support
i. ArcGIS Server
ii. Portal
iii. Pro
iv. Data Store
v. Web Adaptor
f. Troubleshooting
g. Training
h. Other ESRI software as needed

11. GIS Data Conversion

1. Data conversion from other systems to ESRI supported features (such as CAD or MicroStation)

INSIGHT PUBLIC SECTOR SLED
2701E INSIGHT WAY
CHANDLER AZ 85286-1930
Tel: 800-467-4448
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lnsight ''
SOLD.TO PARTY 11113469

CITY OF COMPTON

CITY CONTROLLER
205 S WILLOWBROOK AVE
CoMPTON CA 90220-3134
SHIP.TO

CITY OF COMPTON

JOSE GARFIAS
205 S WILLOWBROOK AVE
CoMPTON CA 90220-3134
We deliver according to the following terms:

Payment Terms
Ship Via
Terms of Delivery
Currency
Net 30 days
I nsight Assigned Carrier/Ground

FOB ORIGIN
USD
Quotation
Quotation Number
Document Date
PO Number
PO release:

Sales Rep
Email
0227426100
17-MAY-2024
Damien Tran
DAMr [email protected]
T
Material Material Description Quantity Unit Price Extended Price MQ6T3LL/A
SGFC2LL/A
1 2339L8 1 4040
1 233901 P0000
Apple 10.9-inch iPad Wi-Fi + Cellular - 1Oth
generation - tablet - 256 GB - 10.9" - 3G,
4G,5G
EWR Fee 4.00/EA
oMNrA PARTNERS (COBB COUNTY)tT PRODUCTS AND
SERVtCES(# 23-6692-03)
List Price: 649.00
Discount: 3.082%
AppleCare+ for 1Oth gen iPad (1Oth
geneneration) - extended service agreement -
2 years
oMNrA PARTNERS (COBB COUNTY) lT PRODUCTS AND
SERVICES(# 23-6692-03)
List Price: 66.99
Discount: 5.956%
UAG Metropolis Series Rugged Case for iPad

10.9 (1Oth Gen, 2022) - Metropolis w
Handstrap Black - flip cover for tablet
oMNIA PARTNERS (COBB COUNTY)rT PRODUCTS AND
SERVTCES(# 23-6692-03)
List Price: 74.99
Discount: 51 .994%
UAG Screen Protector for iPad 10.9 (1Oth Gen,
2022) - Glass Shield Plus Clear - screen
protector for tablet
oMNIA PARTNERS (COBB COUNTy) tT PRODUCTS AND
SERVTCES(# 23-6692-03)
List Price: 59.99
Discount: 56.659%
18 629.00

63.00 36.00

26.00 11,322.00
1 , 1 34.00
648.00
468.00
1B
18 18
)x
flmsighL
''u Quotation Number 227 426100
Document Date'1 7-MAY-2024
Page z ol 2
Product Subtotal 12,438.00
Services Subtotal 1 ,1 34.00
EWR Fee 72.00
TAX 1,274.90
Total 14,918.90
Thank you for choosing lnsight. Please contact us with any questions or for additional information about lnsight's complete lT solution offering.

Sincerely,
Damien Tran
DAMr [email protected]
To purchase under this contract, your agency must be registered with OMNIA Partners Public Sector. lnsight Global Finance has a wide variety of flexible financing options and technology refresh solutions. Contact your lnsight representative for an innovative approach to maximizing your technology and developing a strategy to manage your financial options.

This purchase is subject to lnsight's online Terms of Sale unless you have a separate purchase agreement signed by you and lnsight, in which case, that separate agreement will govern. lnsight's online Terms of Sale can be found at the "terms-and-policies" link below.

SOFTWARE AND CLOUD SERVICES PURCHASES: lf your purchase contains any software or cloud computlng offerings ("Software and Cloud Offerings"), each offering will be subject to the applicable supplier's end user license and use terms ("Supplier Terms") made available by the supplier or which can be found at the "terms-and-policies" link below. By ordering, paying for, receiving or using Software and Cloud Offerings, you agree to be bound by and accept the Supplier Terms unless you and the applicable supplier have a separate agreement which governs. h ttp s : //www. i n s i g h t. co m /te rm s- a n d - po I i c i e s June 25, 2024
TO: MAYOR AND CITY COUNCIL MEMBERS
FROM: CITY TREASURER
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

COMPTON AUTHORIZING THE CITY MANAGER TO ENTER

INTO AN AGREEMENT WITH CHANDLER ASSET
MANAGEMENT, INC. TO PROVIDE INVESTMENT ADVISOR
SERVICES TO THE CITY TREASURER ($100,500)

SUMMARY
This Resolution authorizes the City Manager to enter into an agreement with Chandler Asset Management (“Chandler) to provide investment advisor services to the City Treasurer.

BACKGROUND
The City Treasurer’s Office manages the City’s investment portfolio of $258 million.

Currently, the portfolio includes two (2) Local Agency Investment Fund accounts, two (2) Money Market Accounts, and four (4) Certificate of Deposit accounts. The table below list the accounts (1-8) and projected account balances of April 30, 2024.

Account Type 4/30/2024
Local Agency Investment Fund (LAIF) Accounts
(1) General Fund Cash (4.00%) $64,009,693
(2) Successor Agency (4.00%) $33,787,759
Sub-Total $97,797,452
General Investment Accounts
Money Market Accounts (MMAs) - Bank of Montreal (BMO)
(3) Interest Checking - Wells Fargo (1.08%) $5,008,091
(4) General Fund Cash 2023 (3.20%) $74,623,397
Certificate of Deposits (CDs) - Bank of Montreal (BMO)
(5) Successor Agency 2024,12 mos.,4.256%, M: 1/8/25 $10,107,549 (6) General Fund 2024,12 mos.,4.256%, M: 1/8/25 $10,107,549 (7) Measure P 2024, 6 mos., 4.579%, M: 7/8/24 $30,347,275 (8) Pension Tax 2024, 6 mos., 4.579%, M: 7/8/24 $30,347,275 Sub-Total 160,541,136
Total $258,338,588

19.19.19.19. Staff Report-Investment Advisory Services
June 25, 2024, Page 2
Prior to Fiscal Year 2021, the City was only invested in the Local Agency Investment Fund (LAIF), which has a deposit limit of $100 million dollars and a low-to-moderate interest rate. Most of the City’s cash (nearly $150 million on average) sat uninvested in the City’s General Bank Account receiving $0 in interest earnings.

In an effort to maximize interest earnings for the Residents and align the Treasurer’s Office with current best practices, in July 2021, the City Treasurer’s Office began investing the City’s idle cash in Money Markey Accounts (MMA). In 2022, the City Treasurer’s Office began investing idle cash in Certificate of Deposits (CD). In addition, Treasurer’s Office staff began negotiating the conversion of existing checking accounts into interest bearing investment accounts. As a result of the work done since July 2021, current fiscal year interest earnings exceed $5 million as of 4/30/24 and are anticipated to reach $7 million dollars by the end of Fiscal Year 2024 (June 30, 2024). Not withstanding the success staff has achieved, more interest earnings could be actualized by engaging an investment advisor.

Municipal Financial Advisors
Investment Advisors serve an important function in modern municipalities. They assist public agencies with the investment of public funds, as well as financial analysis, modeling, planning, and forecasting associated with funding capital improvements.

Municipal advisors are regulated by the Securities and Exchange Commission under the Dodd-Frank Wall Street and Consumer Protection Act.

Investment advisors are required to pass the Series 50 exam, a qualifying exam developed by the Municipal Securities Rulemaking Board (MSRB). They must register their firm and the advisors who work for the firm with the MSRB. In addition, municipal advisors are required to follow certain standards of conduct, as defined under MSRB Rule G-42, including regulatory compliance, licensing, and continuing education requirements. Most importantly, municipal advisors are obligated to serve in a fiduciary capacity to their clients and act in their best interest.

Selection of the Firm
Staff circulated a Request for Proposals (RFP) from 2/7/24 to 2/29/24. The notice was published in the Compton Bulletin pursuant to the City’s policies for legal postings. In addition, the Treasurer’s Office circulated the RFP to the California Municipal Treasurer’s Association (CMTA), Government Financial Officers Association (GFOA), California Debt and Investment Advisory Commission (CDIAC), and the Government Investors Officers Association (GIOA).

The RFP Evaluation Committee was made up of staff from the City Treasurer, City Controller, and City Manager offices and the critical rating criteria for the proposals was as follows:

Staff Report-Investment Advisory Services
June 25, 2024, Page 3
A. Understanding of the City’s overall investment program B. Understanding of the City’s investment objectives and unique constraints C. Experience managing local government portfolios in the State of California D. How well the approach to investing City funds was articulated in the proposal E. Fees
At the RFP deadline of 2/29/24 there were a total of ten (10) proposals received from the following investment companies:

1. Chandler Asset Management Inc.

2. Fisher Investments

3. Garcia Hamilton & Associates

4. Loop Capital

5. Meeder Public Fund

6. Morgan Stanley

7. PFM Asset Management

8. Public Trust Advisors

9. RBC Global Asset Management

10.Three+one
Based on the critical rating criteria described above, the RFP Evaluation Committee determined that Chandler Asset Management, Inc. would be the best match for the City of Compton. The proposal from Chandler Asset Management, Inc. is attached for your reference.

STATEMENT OF THE ISSUE
Investment of public funds is guided by the California Government Code and the City’s Investment Policy. However, City Council approval is required to enter into an agreement with Chandler Asset Management, Inc. to provide investment advisor services.

FISCAL IMPACT
The existing investment program is projected to yield $5 to $7 million dollars this fiscal year. With the assistance of Chandler Asset Management, Inc., it is anticipated that interest earnings could exceed $10 to $12 million dollars per fiscal year – nearly double that of the existing program managed by in-house staff. The firm will be paid a flat rate Staff Report-Investment Advisory Services
June 25, 2024, Page 4
not to exceed $100,500 for a twelve (12) month agreement with the option to renew for two (2) additional fiscal years.

RECOMMENDATION
Staff recommends Council adopt the attached Resolution.

BRANDON MIMS

CITY TREASURER
APPROVED FOR FORWARDING:

WILLIE A. HOPKINS, JR.

CITY MANAGER
RESOLUTION NO. _____________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON

AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH CHANDLER ASSET MANAGEMENT, INC. TO PROVIDE
INVESTMENT ADVISORY SERVICES ($100,500)
WHEREAS, the City Treasurer of the City of Compton, pursuant to Section 701 City Charter and the City’s Investment Policy, shall be the custodian of all public funds belonging to or under control of the City, or any office, department, or agency thereof; and WHEREAS, as part of that custodial role, the City Treasurer invests the City’s idle cash; and
WHEREAS, prior to July 2021, the City’s primary investment instrument had been the Local Agency Investment Fund (LAIF), and since July 2021, the City’s investments have expanded to include Certificate of Deposits (CDs), Money Market Accounts (MMAs), and interest earning checking accounts, as follows:

Code Type of Investment Issuer Name Date of
Maturity Current Value
A Certificate of Deposit
(Pension Tax, Fund 2100) BMO $30,347,275
B Certificate of Deposit
(Measure P, Fund 1004) BMO $30,347,275
C Certificate of Deposit
(Successor Agency) BMO $10,107,549
D Certificate of Deposit
(General Account) BMO $10,107,549
E General Fund Money
Market Account BMO N/A $74,623,397
F Government Advantage
Interest Account Wells Fargo N/A $5,008,091
Total $160,541,136
WHEREAS, as a result of this expansion in investment activity, interest earnings have increased dramatically since July 2021, and the City, with the assistance of an investment advisor, could increase interest earnings even further, which is in the best interest of the Residents of Compton; and
WHEREAS, to that end, the City Treasurer’s Office circulated a Request for Proposal (RFP) for Investment Advisory Services and the following proposals were received:

1. Chandler Asset Management Inc.

2. Fisher Investments

3. Garcia Hamilton & Associates

4. Loop Capital

5. Meeder Public Fund

6. Morgan Stanley

7. PFM Asset Management

8. Public Trust Advisors

9. RBC Global Asset Management

10.Three+one
WHEREAS, the City Treasurer’s Office assembled staff from the City Controller, City Attorney and City Manager offices to evaluate the above-mentioned proposals (Investment Advisor RFP Evaluation Committee); and
Resolution No._______________

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WHEREAS, the Investment Advisor RFP Evaluation Committee evaluated each of the proposals received and determined that Chandler Asset Management Inc. would best meet the needs of the City.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COMPTON RESOLVES AS FOLLOWS:

Section 1.That the City Manager is authorized, on the advice and approval of the City Attorney, to enter into a professional services agreement with Chandler Asset Management Inc. for investment advisor services not to exceed $100,500 to be paid from account number 1001-44-0000-4262.

Section 2.That Chandler Asset Management Inc. shall serve as a custodian for the funds under their advisement and be authorized to make transactions on the City’s behalf.

Section 3.That the aforementioned agreement shall be for one (1) year with the option to renew for two (2) additional years.

Section 4.That a copy of this Resolution shall be filed in the offices of the City Clerk, City Manager, City Controller, City Treasurer and the City Attorney.

Section 5.That the Mayor shall sign and the City Clerk shall attest to the adoption of this Resolution.

ADOPTED this ________ day of _________________ 2024.
_______________________________

MAYOR OF THE CITY OF COMPTON
ATTEST:
___________________________________

CITY CLERK OF THE CITY OF COMPTON

STATE OF CALIFORNIA

COUNTY OF LOS ANGELES

CITY OF COMPTON
I, Vernell McDaniel, City Clerk of the City of Compton, hereby certify that the foregoing Resolution was adopted by the City Council of the City of Compton, signed by the Mayor, and attested by the City Clerk, at a regular meeting thereof held on the ____ day of _________, 2024.

That said Resolution was adopted by the following vote, to wit:

AYES: COUNCIL MEMBERS-
NOES: COUNCIL MEMBERS-
ABSENT: COUNCIL MEMBERS-
ABSTAIN: COUNCIL MEMBERS-

___________________________________
Resolution No._______________

Page 3 ends

CITY CLERK OF THE CITY OF COMPTON

PROFESSIONAL SERVICES AGREEMENT

BETWEEN THE CITY OF COMPTON AND
CHANDLER ASSET MANAGEMENT, INC.

This AGREEMENT is entered by and between the CITY OF COMPTON, a municipal corporation of the State of California (hereinafter referred to as “CITY”) located at 205 South Willowbrook Avenue, Compton, California 90220, and CHANDLER ASSET MANAGEMENT, INC. (hereinafter referred to as “CONSULTANT”), located at 9255 Towne Centre Drive, Suite 600, San Diego, CA 92121.

RECITALS
WHEREAS, by Resolution No.____, adopted on the 18th day of June 2024, the City Council gave approval to award a contract to the Consultant to provide the services required by this Agreement; and
WHEREAS, Consultant warrants that it is specifically trained, experienced, competent, and has the resources to provide such services which will be required by this Agreement; and WHEREAS, Consultant is willing to render such professional services subject to the terms and conditions set forth in this Agreement:

NOW, THEREFORE, Consultant and City (each a “Party” and collectively, the “Parties”) for and in consideration of the performance by the Parties of the mutual covenants and conditions herein contained, the Parties hereto agree as follows:

AGREEMENT:

1. Services to be Rendered by Consultant.It is the mutual understanding of the parties that the Consultant shall perform and be responsible for providing and rendering the services described in Exhibit A – Scope of Services.

Consultant acknowledges that in entering into this Agreement the City is relying on Consultant's special skills and experience to do and perform the services in accordance with best standards of professional practice. While performing the Services, Consultant agrees to perform all the said work and furnish all the necessary materials at its own cost and expense necessary to complete said services in a manner consistent with that degree of care and skill ordinarily exercised by members of the same profession currently practicing under similar circumstances and to the reasonable satisfaction of the City.

Consultant services hereunder shall be performed in good, workmanlike and professional manner. Consultant shall be responsible for correcting and completing all errors and omissions related to the services provided by the Consultant for this Agreement at no additional cost to the City. “Errors” and “Omissions” for purposes of this paragraph are defined to mean a failure by the Consultant to meet the standards of its profession as set forth in the preceding paragraph.

The acceptance of the services by City does not release Consultant from these obligations.

Consultant will be responsible for employing or engaging all persons necessary to perform the services. All of Consultant's staff will be qualified by training and experience to perform their assigned tasks. Consultant will give its personal attention to the fulfillment of the provisions of this Agreement by all of its employees and subconsultants, if any, and will keep the services under Professional Services Agreement
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its control. On demand of City, if any employee or subconsultant of Consultant fails or refuses to carry out the provisions of this Agreement or appears to be incompetent or to act in a disorderly or improper manner, he or she will be discharged immediately from the services performed pursuant to this Agreement.

Alayne M. Sampson, Senior Portfolio Strategist of Consultant, shall be primarily responsible for representing Consultant in performance of this Agreement.

2.Duration of Contract.Consultant agrees to commence the services provided for herein upon written Notification to Proceed from the City and to continue in a diligent and professional manner for the duration of the term of this agreement hereby set forth as a twelve (12) month period with the option to renew for two (2) additional years.

Consultant will generally adhere to the schedule set forth by the City provided, that City will grant reasonable extensions of time for the performance of the services occasioned by unusually lengthy governmental reviews of Consultant’s work product or other unavoidable delays occasioned by unforeseen circumstances; provided, further, that such unavoidable delay will not include strikes, lockouts, work stoppages, or other labor disturbances conducted by, or on behalf of, Consultant’s officers or employees.

Consultant acknowledges the importance to City of City’s project schedule and agrees to put forth its best professional efforts to perform the services in a manner consistent with that schedule. City understands, however, that Consultant’s performance must be governed by sound practices. Consultant will work such overtime or engage such personnel and equipment as necessary to maintain the schedule, without additional compensation.

3. Compensation.The method of payment for this Contract will be on a fee-for- services basis as specified in Exhibit B - Fees. The total price paid the Consultant will include compensation for all work, including travel, materials, supplies, vendor services, expenses and subcontracted work. No additional compensation will be paid to the Consultant, unless there is a change in the scope of the work or the scope of the project. In the instance of a change in the scope of work or scope of the project, adjustment to the total compensation will be negotiated between the Consultant and the City. Adjustment in the total compensation will not be effective until authorized and approved in writing by the City.

Progress payments may be made in arrears based on the percentage of work and deliverables completed by the Consultant. If Consultant fails to submit the required deliverable items according to schedule or as required by the Agreement, except for those amounts that are due and not reasonably in dispute, the City shall have the right to delay payment and/or terminate this Agreement in accordance with the provisions noted herein.

Consultant shall be reimbursed within thirty (30) days, or as promptly as fiscal procedures may permit, upon receipt by the City of itemized invoices for services completed. Invoices shall be submitted no later than 45 calendar days after the performance of work for which the Consultant is billing. Invoices shall detail the work performed on each task as applicable. Invoices shall be delivered or mailed to the City Treasurer at the following address: City of Compton, 205 South Willowbrook Avenue, Compton, California 90220.

Professional Services Agreement
Chandler Asset Management, Inc.

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As full and complete compensation for performance of all the services performed by the Consultant pursuant to this Agreement, City shall pay, and Consultant agrees to accept, a not-to- exceed maximum sum of One Hundred Thousand, Five-Hundred Dollars ($100,500.00), on an annual basis.

4. Ownership of Materials.All product produced by Consultant or its agents, employees, and subconsultants pursuant to this Agreement (the “Work Product”) is the property of City. In the event this Agreement is terminated, all Work Product produced by Consultant or its agents, employees and subconsultants pursuant to this Agreement will be delivered to City pursuant to the termination clause of this Agreement. [Consultant will have the right to make one (1) copy of the Work Product for Consultant’s records.] The Work Product may be used by City and its agents, employees, representatives, and assigns, in whole or in part, or in modified form, for all purposes City may deem advisable, without further employment of or payment of any compensation to Consultant; provided, however, that if this Agreement is terminated for any reason prior to completion of the Project and if under such circumstances City uses, or engages the services of and directs another Consultant to use, the Work Product, City agrees to hold Consultant harmless from any and all liability, costs, and expenses relative to claims arising out of matters and/or events which occur subsequent to the termination of this Agreement as a result of causes other than the fault or negligence of Consultant, or anyone for whose acts it is responsible, in preparation of the Work Product.

5. Independent Consultant Status.Consultant, its officers, employees, subconsultants, subconsultants, agents and volunteers (collectively hereinafter the “Consultant”), will perform the services in Consultant's own way and pursuant to this Agreement as an independent Consultant and in pursuit of Consultant's independent calling, and not as an employee of City. The persons used by Consultant to provide the services under this Agreement will not be considered employees of City for any purposes. Neither the City nor any of its officers, employees, agents or volunteers shall have any control over the conduct of the Consultant, except as expressly set forth in this Agreement. Consultant expressly warrants that while engaged in carrying out and complying with any terms and conditions of this Agreement that Consultant shall not at any time or in any manner, represent that Consultant is in any manner officers, employees, agents or volunteers of the City. Consultant shall obtain no rights to retirement, health care or any other benefit that accrue to City officials, officers, or employees. Consultant expressly waives any claim to such rights.

The payment made to Consultant pursuant to the Agreement will be the full and complete compensation to which Consultant is entitled. City will not make any federal or state tax Professional Services Agreement
Chandler Asset Management, Inc.

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withholdings on behalf of Consultant or its agents, employees or subconsultants. City will not pay any workers' compensation insurance, retirement contributions or unemployment contributions on behalf of Consultant or its employees or subconsultants. Consultant agrees to indemnify and pay City within thirty (30) days for any tax, retirement contribution, social security, overtime payment, unemployment payment or workers' compensation payment which City may be required to make on behalf of Consultant or any agent, employee, or Consultant of Consultant for work done under this Agreement. At the City’s election, City may deduct the amounts paid pursuant to this Section, from any balance owing to Consultant.

The Consultant agrees to post in conspicuous places, available to employees, applicants and subconsultants for employment, notices setting forth the provisions of this non-discrimination clause.

In the event of the Consultant’s non-compliance with the non-discrimination clause of this Agreement, this Agreement may be immediately canceled, terminated or suspended in whole or in part.

8. Subcontracting.Consultant's services are unique and personal. Except as may be specified in Consultant’s Proposal and agreed to by the City, Consultant will not subcontract any portion of the services without prior written approval of City Manager or his/her designee. If Consultant subcontracts any of the services, Consultant will be fully responsible to City for the acts, errors and omissions of Consultant's subconsultant and of the persons either directly or indirectly employed by the subconsultant, as Consultant is for the acts and omissions of persons directly employed by Consultant. Nothing contained in this Agreement will create any contractual relationship between any subconsultant of Consultant and City. Consultant will be responsible for payment of subconsultants. Consultant will bind every subconsultant and every subconsultant Professional Services Agreement
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of a subconsultant by the terms of this Agreement applicable to Consultant's work unless specifically noted to the contrary in the subcontract and approved in writing by City.

9. Other Consultants.The City reserves the right to employ other consultants in connection with the services.

10. Indemnification.Consultant shall indemnify and save harmless the City, its officials, officers, employees, agents and volunteers (collectively hereinafter the “City”), against any and all damages to property or injuries to or death of any person or persons, including property and employees or agents of the City and shall indemnify and save the City from any and all liability and expense including reimbursement of reasonable defense costs and legal fees, and claims, demands, suits, actions or proceedings of any kind or nature, including Workers’ Compensation claims, of or by anyone whomsoever to the extent resulting from or arising out of the negligent, reckless or willful misconduct for the Consultant, its officers, employees, subconsultants, subconsultants or agents in the performance of the duties undertaken by Consultant pursuant to this Agreement.

This indemnification and hold harmless obligation does not extend to claims arising out of the negligence or willful misconduct of the City.

Consultant will obtain occurrence coverage, excluding Professional Liability, which will be written as claims-made coverage. If Consultant believes that any required insurance coverage is inadequate, Consultant will obtain such additional insurance coverage, as Consultant deems adequate, at Consultant's sole expense.

11.1 Commercial General Liability Insurance. $1,000,000 combined single- limit per occurrence for bodily injury, personal injury and property damage. If the submitted Professional Services Agreement
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policies contain aggregate limits, general aggregate limits will apply separately to the work under this Agreement or the general aggregate will be twice the required per occurrence limit.

11.2 Automobile Liability. $1,000,000 combined single-limit per accident for bodily injury and property damage.

11.3 Workers' Compensation and Employer's Liability. Workers' Compensation limits as required by the California Labor Code and Employer's Liability limits of $1,000,000 per accident for bodily injury. Workers' Compensation and Employer's Liability insurance will not be required if Consultant has no employees and provides, to City's satisfaction, a declaration stating this.

11.4 Professional Liability. Errors and omissions liability appropriate to Consultant’s profession with limits of not less than $1,000,000 per claim. The coverage shall also provide an extended two (2) year reporting period commencing upon termination or cancellation of this Agreement.

Endorsements. For Commercial General Liability Insurance and Automobile Liability Insurance, Consultant will ensure that the policies are endorsed to name the City of Compton and its respective elected and appointed officers, officials, employees, agents and volunteers as “additional insureds” with respect to liability arising out of the activities of the Consultant. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City. Prior to City's execution of this Agreement, Consultant will furnish certificates of insurance and endorsements to City.

Waiver of Subrogation. The policies shall contain a waiver of subrogation for the benefit of City.

Consultant shall maintain all records and will allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period and to the extent required by laws relating to audits of public agencies and their expenditures, from the date of final payment under this Agreement.

14. Warranties.Consultant represents and warrants (i) that Consultant has no obligations, legal or otherwise, inconsistent with the terms of this Agreement or with Consultant’s undertaking this relationship with City, (ii) that the performance of the services called for by this Agreement do not and will not violate any applicable law, rule or regulation or any proprietary or other right of any third party, (iii) that Consultant will not use in the performance of his responsibilities under Professional Services Agreement
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this Agreement any confidential information or trade secrets of any other person or entity and (iv) that Consultant has not knowingly entered into or will enter into any agreement (whether oral or written) in conflict with this Agreement.

15. Federal and State Withholding Taxes.Consultant shall be responsible for paying when due all federal and state income withholding taxes for all earning under this Agreement.

Consultant agrees to indemnify City for any claims, costs, losses, fees, penalties, interest, or damages suffered by City resulting from Consultant’s failure to comply with this provision.

16. General Compliance with Laws. Consultant will keep fully informed of federal, state and local laws and ordinances and regulations which in any manner affect those employed by Consultant, or in any way affect the performance of the services by Consultant. Consultant will at all times observe and comply with these laws, ordinances, and regulations and will be responsible for the compliance of the services with all applicable laws, ordinances and regulations.

17. Termination.In the event of the Consultant's failure to prosecute, deliver, or perform the services, after giving written notice of default and two (2) days to correct the same, then, in addition to any other remedies, City may terminate this Agreement for nonperformance by notifying Consultant in writing. Consultant has five (5) business days to deliver any documents owned by City and all work in progress to City address contained in this Agreement. City will make a determination of fact based upon the work product delivered to City and of the percentage of work that Consultant has performed which is usable and of worth to City in having the Agreement completed. Based upon that finding City will determine the final payment of the Agreement. In the event City elects to terminate, City will have the right to immediate possession of all Work Product and work in progress prepared by Consultant, whether located at the project site, at Consultant's place of business, or at the offices of a subconsultant.

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terminate this Agreement for nonperformance, or, in its discretion, to deduct from the Agreement price or consideration, or otherwise recover, the full amount of the fee, commission, percentage, brokerage fees, gift, or contingent fee.

19. Claims and Lawsuits.By signing this Agreement, Consultant agrees that any Agreement claim submitted to City must be asserted as part of the Agreement process as set forth in this Agreement and not in anticipation of litigation or in conjunction with litigation.

Consultant acknowledges that if a false claim is submitted to City by Consultant, it may be considered fraud and Consultant may be subject to criminal prosecution. Consultant acknowledges that California Government Code sections 12650 et seq., the False Claim Act, applies to this Agreement and provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of information. If City seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorney’s fees.

Consultant acknowledges that the filing of a false claim may subject Consultant to an administrative proceeding as a result of which Consultant may be prevented to act as a Consultant on any public work or improvement for a period of up to five (5) years. Consultant acknowledges debarment by another jurisdiction is grounds for City to terminate this Agreement.

20. Certifications.The Consultant, under penalty of perjury, certifies that, except as noted below, he/she or any other person association therewith in the capacity of owner, partner, director, officer, manager;
Is not currently under supervision, voluntary exclusion, or determination of ineligibility by any Federal, State or local agency;
Has not been suspended, voluntarily excluded or determined ineligible by any Federal, State or local agency within the past 3 years;
Has not been indicted, convicted or had a civil judgment rendered against he/she/it by a court of competent jurisdiction in any matter involving fraud or official misconduct in connection with obtaining , attempting to obtain, or performing a public (Federal, State or local) transaction or contract under a public transaction; violation of Federal or State antitrust statues or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property within the past 3 years.
Are not presently indicted or otherwise criminally or civilly charged by a governmental entity (Federal, State or local) with commission of any of the offenses enumerated in the preceding paragraph; and
Have not had one or more public transactions (Federal, State or local) terminated for cause or default within in the past 3 years.

If there are any exceptions to this certification, inset the exceptions in the following space. [Supply exceptions on separate page]
For any exception noted above, indicate below to whom it applies, initiating agency and dates of action.

Professional Services Agreement
Chandler Asset Management, Inc.

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[Attach separate page]
This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction. The above certifications are part of this contract. Signing this agreement on the signature portion thereof shall also constitute signature of the above certifications.
_________________________ _______________ Nicole Dragoo, JD (Date) Chief Executive Officer

21. Jurisdiction, Venue and Governing Law. Any action at law or in equity brought by either of the Parties for the purpose of enforcing a right or rights provided for by this Agreement will be tried in a court of competent jurisdiction in the County of Los Angeles, State of California, and the Parties waive all provisions of law providing for a change of venue in these proceedings to any other county. This agreement will be governed by the laws of the State of California.

22. Testimony.Consultant will testify at City's request if litigation is brought against City in connection with Consultant's services under this agreement. Unless the action is brought by Consultant, or is based upon Consultant's actual or alleged negligence or other wrongdoing, City, upon prior written agreement with Consultant will compensate Consultant for time spent in preparation for testimony, testimony, and travel at Consultant's standard hourly rates at the time of actual testimony.

23. Waivers.The waiver by either Party of any breach or violation of any term, covenant, or condition of this Agreement or of any applicable law will not be deemed to be a waiver of such term, covenant, condition or law or of any subsequent breach or violation of same or of any other term, covenant, condition or law. The acceptance by either Party of any fee or other payment which may become due under this Agreement will not be deemed to be a waiver of any preceding breach or violation by the other Party of any term, covenant, or condition of this Agreement or any applicable law.

24. Authority.The individuals executing this Agreement and the instruments referenced in it on behalf of Consultant each represent and warrant that they have the legal power, right and actual authority to bind Consultant to the terms and conditions of this Agreement.

25. Severability.If any term, provision, condition or covenant of this Agreement or its application to any party or circumstances shall be held, to any extent, invalid or unenforceable, the remainder of this Agreement, or the application of the term, provision, condition or covenant to persons or circumstances other than those as to whom or which it is held invalid or unenforceable, shall not be affected, and shall be valid and enforceable to the fullest extent permitted by law.

26. Amendments.This Agreement may be modified or amended only be written document executed by both Consultant and City’s City Manager and approved as to form by the City Attorney. Such document shall expressly state that it is intended by the parties to amend the terms and conditions of this Agreement.

Professional Services Agreement
Chandler Asset Management, Inc.

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27. Confidentiality. All documents, reports, information, data, and exhibits prepared or assembled by Consultant in connection with the performance of the Services pursuant to the Agreement are confidential until released by the City to the public, and the Consultant will not make any of these documents or information available to any individual or organization not employed by the Consultant or the City without the written consent of the City before any such release.

28. Entire Agreement. This Agreement, together with any other written document referred to or contemplated by it embody the entire Agreement and understanding between the parties relating to the subject matter of it. The City Manager is authorized, in consultation with the City Attorney, to agree to non-material amendments to this Agreement. Neither this Agreement nor any of its provisions may be amended, modified, waived or discharged except in a writing signed by both parties.

29. Notices.Any notices required or permitted under this Agreement shall be effective when delivered in person; and effective one (1) business day after delivery by facsimile transmission; and effective five (5) days after mailing by U.S. Mail, postage prepaid and properly addressed as follows:

TO CONSULTANT: CHANDLER ASSET MANAGEMENT, INC.

Nicole Dragoo, JD
9255 Towne Centre Drive, Suite 600
San Diego, CA 92121
858-546-3737
TO CITY: CITY OF COMPTON
205 South Willowbrook Avenue
Compton, California 90220
Attn: City Treasurer
(310) 605-5515
With Copy to: CITY OF COMPTON
205 South Willowbrook Avenue
Compton, California 90220
Attn: City Manager

30. Miscellaneous.No provision of this Agreement is to be interpreted for or against either party because that party or that party’s legal representative drafted such provision.

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Chandler Asset Management, Inc.

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31.Electronic Delivery.Electronic Delivery. From time to time, Consultant may be required to deliver certain documents to City such as account information, notices and required disclosures. City hereby consents to Consultant’s use of electronic means, such as email, to make such delivery. This delivery may include notification of the availability of such document(s) on a website, and Client agrees that such notification will constitute “delivery”. City further agrees to provide Consultant with City’s email address(s) and to keep this information current at all times by promptly notifying Consultant of any change in email address(s).

City email address(s):________________________________________________________

32. Custody of Securities and Funds. Consultant shall not have custody or possession of the funds or securities that City has placed under its management. City shall appoint a custodian to take and have possession of its assets. City recognizes the importance of comparing statements received from the appointed custodian to statements received from Consultant. City recognizes that the fees expressed above do not include fees City will incur for custodial services.

33. Investment Advice.City recognizes that the opinions, recommendations and actions of Consultant will be based on information deemed by it to be reliable, but not guaranteed to or by it. Provided that Consultant acts in good faith, City agrees that Consultant will not in any way be liable for any error in judgment or for any act or omission, except as may otherwise be provided for under the Federal Securities laws or other applicable laws.

34. Other Clients. Receipt of Brochure and Privacy Policy. City hereby acknowledges receipt of the disclosure statement or "brochure" and “brochure supplement” also known as Part 2A and Part 2B of Form ADV, required to be delivered pursuant to Rule 204-3 of the Investment Advisers Act of 1940 (Brochure). City further acknowledges receipt of Consultant’s Privacy Policy, as required by Regulation S-P.

IN WITNESS WHEREOF, CONSULTANT has executed this Agreement, and the CITY, by its City Manager, who is authorized to do so, has executed this Agreement.

CHANDLER ASSET MANAGEMENT, INC.

Dated: _______________ By ___________________________________ Nicole Dragoo, JD ,Chief Executive Officer

CITY OF COMPTON
Recommended for Approval:

By __________________________________ Dated: ______________ Professional Services Agreement
Chandler Asset Management, Inc.

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Brandon Mims, City Treasurer
Approved by:

Dated: _______________ By _________________________________ Willie A. Hopkins, Jr., City Manager
Approved as to form:

By _________________________________ Dated: ______________ Eric J. Perrodin, City Attorney
ATTEST:

Dated: _______________ By __________________________________ Vernell McDaniel, City Clerk
Professional Services Agreement
Chandler Asset Management, Inc.

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Exhibit A – Scope of Services
Consultant is pleased to continue to offer the City of Compton the following services:

1. Manage the City’s investment portfolio pursuant to the specific, stated investment objectives.

Place all orders for the purchase and sale of securities, communicate settlement information to the City’s staff and coordinate security settlement. Execute all approved trades through competitive bidding processes when possible. The investment advisor will not provide custodial services or security safekeeping.

2. Provide assistance in developing and implementing an investment strategy that will maintain or enhance portfolio quality and performance within the parameters of the City’s Investment Policy and cash flow needs.

3. Ensure the portfolio is in compliance with applicable laws and the City’s Investment Policy including ordinances and resolutions relating to the investment of public funds.

4. Provide the City with investment reports that shall include, but not be limited to the following:
a. Monthly statements with all the information required by the California Government Code and Governmental Accounting Standards Board (GASB). These reports must include, but not limited to: detailed portfolio holdings including a complete description of the portfolio, the type of investments, the issuers, purchase price, accrued interest, amortized cost, market and book values, purchase date, maturity date, next upcoming potential call date, assigned security ratings by a nationally recognized statistical rating organization (NRSRA), principal and interest payments, effective earnings rate, yield to maturity, days to maturity, and portfolio summary statistics. These reports are required to be completed no later than the 20th of the month for the immediately preceding month for presentation to the Investment Advisory Committee and City Council at their meetings.
b. Quarterly investment reports including a description of market conditions, investment strategies employed, performance, and suggested changes to investment strategy. c. Annual portfolio performance reports, based on the City’s fiscal year, including, but not limited to: local and national economy, the City’s portfolio holdings, performance objectives, and policy compliance.

5. Perform broker/dealer due diligence and maintain relations with the broker/dealer community.

6. Continually monitor market conditions and circumstances and report on any recommended changes to policies, strategies, and specific positions.

7. Annually, or more often if necessary, review the City’s Investment Policy and provide recommended changes as needed per California Government Code or to incorporate best practices as provided by relevant statewide and national organizations. The City’s Investment Policy will be submitted to the Investment Advisory Committee and the City Council for approval on an annual basis.

Professional Services Agreement
Chandler Asset Management, Inc.

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8. Attend Investment Advisory Committee meeting every quarter to present investment performance and market conditions. Attend City Council meetings as necessary.

9. Serve as a general resource to the City’s staff for information, advice, and training regarding fixed-income investments. Communicate as necessary with City staff to understand the City’s investment operations.

Professional Services Agreement
Chandler Asset Management, Inc.

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Exhibit B – Fees
Fee Schedule for the City of Compton
Assets Under
Management
Annual Asset Management
Fee
First 75 mm 8 bps (0.08 of 1%)
Next 50 mm 6 bps (0.06 of 1%)
Next 100 mm 4 bps (0.04 of 1%)
Over 225 mm 3 bps (0.03 of 1%)
Consultant’s fee schedule is all-inclusive for the services that Consultant provides, including full time investment advisory and portfolio management services, technological resources, onboarding and implementation, online access to the Consultant’s Client Portal, comprehensive reporting, meetings, personal visits, educational offerings for your staff, as well as the additional treasury support services described herein in Consultant’s proposal. Consultant does not charge fees on funds held in vehicles not directly under our management, including Local Government Investment Pools and internally managed liquid funds. Consultant can consolidate these funds in our reports to the City at no extra charge, providing a 360-degree view of the entire investment program. Fees are firm for the entire two-year initial contract term and optional two-year extensions, and the City will not be subject to any increases during this period.

City of Compton
Investment Management Services
May 21, 2024
Mia Corral Brown
Regional Director
For One-on-One Presentation
Alaynè Marie Sampson
Senior Portfolio Strategist
Chandler Asset Management | 2
SECTION 1
SECTION 2
SECTION 3
SECTION 4
Today’s Agenda
Partnering with Chandler AssetManagement
Adding Value to the City of Compton’s Investment Program Biographies & Disclosures
Client Service, Compliance, and Reporting
Chandler Asset Management | 3
Section 1
Partnering with Chandler Asset Management
Chandler Asset Management | 4
Mia Corral Brown
Regional Director
26 Years Industry Experience
Relationship Management
and Engagement Oversight
Experienced Team Working with the City of Compton
Finance Staff
City Council
Supported by a Deep Bench of Investment Professionals:

Investment Management, Compliance, Operations, Client Service and Administration Your Relationship Team Members
Nolan Serumaga
Client Service Associate
1 Years Industry Experience
Client Service
Support
Genny Lynkiewicz, CFA
Senior Portfolio Manager
18 Years Industry Experience
Investment Management,
Portfolio Management,
Research, Credit Analysis
Alaynè Marie Sampson
Senior Portfolio Strategist
21 Years Industry Experience
Portfolio Strategy &
Research

Chandler Asset Management | 5
Specializing in Investment Management for Public Agencies ▪ California Based, Independent & Employee-Owned
• Fixed income investment specialist since 1988
• Founded by public agency investment professionals
• Serve 200 local government clients
• 75 California cities
• Corporate headquarters in Southern California
▪ Custom Investment Programs
• Investment solutions based on individual risk
profiles and return goals
• Direct access to investment management team
• Strategies for operating, short, and long-term
reserves, bond proceeds, and other Board-
designated funds
▪ Stable Team of Investment Professionals
• Team of investment professionals average over two
decades portfolio management experience
• Continuity provided through team approach
• Disciplined, repeatable investment process
• Proprietary investment analysis
“We believe if we do what is right for our clients, our own success will follow.” Chandler assets under management as of March 31, 2024.

Assets Under Management
$35.4 Billion
Corporate
<1%
Non Profit
<1%
Healthcare
13%
Sub-advisory
<1%
Public
86%
Chandler Asset Management | 6
Lasting Partnerships with Southern California Neighbors Los Angeles/Ventura Clients
Alameda Corridor Trans. Authority
City of Agoura Hills
City of Bell
City of Beverly Hills
City of Camarillo
Crescenta Valley Water District
City of El Monte
City of Gardena
City of La Mirada
Los Angeles County Metro. Trans.

City of Pico Rivera
City of Pomona
City of Port Hueneme
Three Valleys Municipal Water
Upper San Gabriel Mun. Water
Walnut Valley Water
West Basin Municipal Water
*Chandler’s California assets under management as of March 31, 2024. A listing of the firm’s representative clients in the State of California’s San Diego, Orange, Ventura, Inland area, and Los Angeles County. This list only includes clients that have given permission to be listed. It is not known whether the clients listed approve or disapprove of Chandler Asset Management and the advisory services provided. Includes discretionary and non- discretionary relationships.

Orange County Clients
City of Brea
City of Buena Park
City of Costa Mesa
East Orange County Water
City of Fountain Valley
City of La Habra
City of Mission Viejo
Moulton Niguel Water
City of Newport Beach
Orange County Sanitation
Orange County Transportation
City of San Clemente
City of San Juan Capistrano
South Coast Water District
Transportation Corridor Agency
City of Tustin
City of Westminster
Inland Area Clients
City of Chino Hills
Coachella Valley Water District
City of Corona
Beaumont Cherry Valley Water
Elsinore Valley Municipal Water
City of Indio
City of Menifee
City of Moreno Valley
City of Palm Springs
City of Perris
Rancho California Water
City of Riverside
San Bernardino Municipal Water
City of San Jacinto
Temescal Valley Water
West Valley Water
Western Municipal Water
Chandler Asset Management | 7
*Chandler’s California assets under management as of March 31, 2024. List includes discretionary and non-discretionary relationships. The list only includes clients that have given permission to be listed, but it is not known whether the clients listed approve or disapprove of Chandler Asset Management and the advisory services provided. **Advisory-only relationship. • Alameda, CA
• American Canyon,CA
• Arcata, CA
• Atwater, CA
• Bell, CA
• Beverly Hills, CA
• Brea, CA
• Buena Park, CA
• Camarillo, CA
• Chino Hills, CA
• Chula Vista, CA
• Corona, CA
• Costa Mesa, CA
• Cupertino, CA
• Danville, CA
• Desert Hot Springs, CA
• Dublin, CA
• Elk Grove, CA
• Emeryville, CA
• Fairfield, CA
• Fountain Valley, CA
• Gardena, CA
• Imperial Beach, CA
• Indio, CA
• La Habra, CA
• Lake Forest, CA
• La Mirada, CA
• Long Beach, CA
• Menifee, CA
• Merced, CA
• Milpitas, CA
• Mission Viejo, CA
• Monterey, CA
• Moreno Valley, CA
• Mountain View, CA
• Murrieta, CA
• National City, CA
• Newport Beach, CA
• Oceanside, CA
• Orange, CA
• Palm Springs, CA
• Perris, CA
• Pico Rivera, CA
• Pleasant Hill, CA
• Pomona, CA
• Riverside, CA
• Rohnert Park, CA
• Salinas, CA
• San Clemente, CA
• San Jacinto, CA
• San Juan Capistrano, CA
• San Leandro, CA
• San Marcos, CA
• San Mateo, CA
• Santa Paula, CA
• Solana Beach, CA
• So. San Francisco, CA
• Stanton, CA
• Stockton, CA
• Sunnyvale, CA
• Tracy, CA
• Tustin, CA
• Vallejo, CA
• West Sacramento, CA
• Westminster, CA
• Yucca Valley, CA
Cities
• Alpine, CA
• Calaveras, CA
• Mendocino, CA
• Modoc, CA
• San Benito, CA
• Sierra, CA
• San Diego, CA**
• Ventura, CA**
• Lake, CA
• Amador, CA
• Santa Clara, CA
Counties
• Alameda Corridor Transportation Authority, CA
• Alameda County Water District, CA
• Authority for CA Cities Excess Liability, CA
• Beaumont-Cherry Valley Water District, CA
• Big Independent Cities Excess Pool, CA
• California Earthquake Authority, CA
• California Insurance Pool Authority (CIPA) , CA
• California Joint Powers RMA, CA
• Calleguas Municipal Water District, CA
• Calaveras County Water District, CA
• Central San Joaquin Valley RMA, CA
• Coachella Valley Water District, CA
• Crescenta Valley Water District, CA
• East Orange County Water District, CA
• Elsinore Valley Water District, CA
• First 5 Alameda County, CA
• Grossmont Healthcare District, CA
• LA County Metropolitan Transportation Auth., CA
• Marin Clean Energy, CA
• Mammoth Community Water District, CA
• Moulton Niguel Water District, CA
• Orange County Transportation Authority, CA
• Peninsula Clean Energy, CA
• Palomar Health, CA
Special Districts and JPAs
• PRISM, CA
• Rancho California Water District, CA
• Redwood Empire Municipal Insurance Fund, CA
• San Bernardino Municipal Water Department, CA
• San Diego County Regional Airport Authority, CA
• San Diego County Water Authority, CA
• Santa Clarita Valley Water District, CA
• South Coast Water District, CA
• Temescal Valley Water District, CA
• Transportation Corridor Agencies
(OC Toll Roads), CA
• Three Valleys Municipal Water District, CA
• Upper San Gabriel Municipal Water District
• Walnut Valley Water District, CA
• West Basin Municipal Water District, CA
• Western Municipal Water District, CA
• West Valley Water District, CA
Special Districts and JPAs (cont.)
Significant Experience with Agencies throughout California Chandler’s California AUM
$28.8 Billion*
Chandler has extensive experience
serving neighboring regional clients
throughout the state of California.

Chandler Asset Management | 8
We Collaborate With You On All Aspects of Your Investment Program Discretionary
Investment
Management Services Provide Guidance with
the City’s Cash Flow
and Maturity Analysis
Evaluate Risk and Invest
in Strategies that
Meet Your Goals and
Objectives
Initial and Annual Review
of the City’s Investment
Policy
Compliance Monitoring
and Reporting with the
City's Investment Policy
and CA Govt CodeMarket Research and
Credit Analysis of
Instruments in your
Portfolio
Ensure the Ongoing
Portfolio Structure
Continues to Match the
City’s Needs
Attend Meetings
with Staff,
Finance Committee
and City Council
Monthly, Quarterly and
Annual Reporting in
Accordance with GASB
24/7 Online Access to
Investment Account
Information and Reports

Chandler Asset Management | 9
Chandler Asset Management is a registered investment adviser • Regulated by the SEC under the Investment Advisers Act of 1940 • Acts as a fiduciary for client assets
• Decisions based on compliance with policy, objectives, and state code • Emphasis on the entire portfolio, rather than individual transactions • Provide comprehensive investment management services
• Compensated on the basis of assets under management, not transactions Investment Advisers
Chandler Asset Management | 10
Section 2
Chandler’s Approach to Adding Value to
the City of Compton’s Investment Program
Chandler Asset Management | 11
Approach to Building an Investment Program
Initial Steps
Ongoing Management
▪ Credit analysis of security issuers and financial institutions ▪ Asset-liability management
▪ Broker/dealer due diligence and relations
▪ Consistent application of a disciplined, conservative investment process. Our approach focuses on:
• Safety of principal*
• Appropriate levels of liquidity
• Diversification of risk
• Compliance with legal requirements,
policies, and objectives
• Generating market yield and return
*While Chandler focuses on safety of principal by investing in conservative investment-grade quality bonds, investors should be aware that bonds and other fixed income securities do carry some degree of risk and we cannot ensure a profit nor guarantee against loss.

Chandler Asset Management | 12
Segmenting the Portfolio for Structure
Reserve PortfolioLiquidity Portfolio
Total Portfolio
▪ Local Government Investment
Pools (LGIP) i.e., LAIF
▪ Government Money Market
Funds
▪ Invest in Individual Securities by
matching maturities to known
expenditures
▪ Limited Maturity Strategy or
Short Term Bond Strategy
▪ Targets a longer duration to
enhance the potential to
increase earnings
▪ Invest in securities allowed
by California Government
Code and the Investment
Policy
Checking Account
▪ Daily cash required for
payroll, operational and
other outgoing invoices
Daily Liquidity Less than 1 Year Greater than 1 Year

Chandler Asset Management | 13
Chandler’s Composites as of March 31, 2024
Average Final Maturity 2.00 years
Average Duration 1.78 years
Yield-to-Maturity 5.26%
Average Quality (S&P) AA+
Average Coupon 2.77%
Limited Maturity (1-3 Year)
Based on Chandler’s Limited Maturity and Short Term Bond composite characteristics as of 03/31/2024. Credit Quality equivalent of composite/average of S&P, Moody’s and Fitch ratings; “A” category includes “A-1” rated money market securities. The composite characteristic information presented above is supplemental information pursuant to GIPS®. There is no guarantee that investment in any of these styles will result in characteristics similar to those that appear in this presentation due to changes in economic conditions and other market factors. Past characteristics are not indicative of future results.

Average Final Maturity 2.85 years
Average Duration 2.49 years
Yield-to-Maturity 4.88%
Average Quality (S&P) AA+
Average Coupon 2.86%
Short Term Bond (1-5 Year)
*Other includes Municipal Bonds, MBS,
Commercial Paper, Cash, and FI ETF
*Other includes Municipal Bonds, Cash
Negotiable CD, Commercial Paper and MBS
Agency

17.6%
Negotiable CD

0.2%
Other*

1.5%
US Corporate

25.2%
US Treasury

37.4%
ABS

7.2%
CMO

5.8%
Supranational

5.0%

SECTOR ALLOCATION

12.4%

39.3%

47.2%

1.1%
0%
10%
20%
30%
40%
50%
0-1 Years 1-3 Years 3-5 Years 5+ Years*
% of Portfolio
Maturity (in years)

MATURITY BREAKDOWN
Agency

21.8%Negotiable CD

0.2%
Other*

0.4%
US Corporate

22.0%
US Treasury

42.9%
ABS

4.6%
CMO

4.5%
Supranational

2.7%

SECTOR ALLOCATION

29.1%

46.4%

24.1%

0.40%
0%
10%
20%
30%
40%
50%
0-1 Years 1-3 Years 3-5 Years 5+ Years
% of Portfolio
Maturity (in years)

MATURITY BREAKDOWN
Chandler Asset Management | 14
Client Service, Compliance, and Reporting
Section 3
Chandler Asset Management | 15
Transparent Reporting and Communication
Monthly statements available by the 3rd business day
▪ Reports designed for Accounting and Reporting
▪ Portfolio summary, compliance statement, reconciliation summary, holdings report, transactions ledger, income earned, cash flow report
Quarterly reports in person with investment management team ▪ Economic overview
24/7 Online Access to the
Portfolios via the Chandler
Client Portal
▪ Account profile
▪ Objectives and compliance statement
▪ Portfolio summary, sector distribution, issuer
report, quality distribution, duration distribution
and investment performance
▪ Holdings report, transactions Ledger
Annual Reporting
▪ GASB 40 and 72
This sample report is being provided for illustrative purposes to demonstrate Chandler Asset Management's reporting capabilities. References to specific securities and their characteristics are examples of securities held in the portfolio and are not intended to be, and should not be interpreted as an offer, solicitation or recommendation to purchase or sell any financial instrument, an indication that the purchase of such securities was or will be profitable, or representative of the composition or performance of the portfolio. The information contained in this sample presentation was obtained from sources we believe to be reliable, but we do not guarantee its accuracy.

Chandler Asset Management | 16
Assets managed by Chandler Asset Management are in full compliance with California Government Code and with the Client’s investment policy.

Category Standard Comment
Treasury Issues No limitation Complies
Agency Issues No limitation Complies
Supranationals 30% maximum; 5% max issuer; 5 years max maturity; Issued by IBRD, IFC, or IADB only; “AA” rated or higher by a NRSRO
Complies
Banker’s Acceptances 40% maximum; 5% max issuer; <180 days maturity; A-1 rated equivalent by at least two NRSROs; “A” rated or better by two NRSROs on long-term debt
Complies
Commercial Paper
25% maximum; 5% max issuer; <270 days maturity; A-1 rated or higher by at least two NRSROs; “A” rated or higher by two NRSROs on long-term debt; Issuer is a corporation organized and operating within U.S. with assets in excess of $500 million Complies
Negotiable Certificates of Deposit 40% maximum; 5% max issuer; <180 days maturity; A-1 rated equivalent by at least two NRSROs; “A” rated or better by two NRSROs on long-term debt
Complies
Medium Term Notes 30% maximum; 5% max issuer; “A” rated or better by two NRSROs Complies Money Market Mutual Funds 20% maximum; 10% per fund; Highest rating by two NRSROs Complies Federally Insured Certificates of Deposit (CDs)/Time
Deposit (TDs) 20% maximum (combined FDIC insured and collateralized TD/CD) Complies Collateralized Certificates of Deposit (CDs)/Time
Deposit (TDs)
20% maximum (combined FDIC and collateralized TD/ CD); A-1, or higher by 2 NRSROs; "A" rated or higher by two NRSROs, if long-term debt
Complies
Mortgage Pass-throughs, CMOs and Asset Backed
Securities
20% maximum; 5% max issuer; "AA" rated or higher by a NRSRO; "A“ rated issuer or higher by a NRSRO; 5 years max maturity
Complies
Local Agency Investment Fund (LAIF) Program limitation; Currently not used by investment adviser Complies Repurchase Agreement 1 year max maturity; 102% collateral; Currently not used by investment adviser Complies Prohibited Securities Inverse floaters; Ranges notes, interest-only strips from mortgaged backed securities; Zero interest accrual securities
Complies
Max Per Issuer 5% (except U.S. government, its Agencies and GSEs, Money Market Fund or LGIP) Complies Maximum maturity 5 years Complies
This sample report is being provided for illustrative purposes to demonstrate Chandler Asset Management’s reporting capabilities. Elements of the Compliance Report are representative of investment guidelines promulgated by State Law or the entity’s investment policy.

Compliance with Investment Policy and CA Code
Chandler Asset Management | 17

COMPLIANCE
Automated pre-trade, post-trade and
end of day compliance checks.
• Daily review and monitoring by
Chandler experts
• Statement of Compliance in monthly
account statements

REPORTING
Presentations to Staff and Council.
• Monthly reports by 3rd business day
• Quarterly reports for in-person
discussion
• Customized and consolidated reports
• Online Client Portal to access trade
tickets, documents, historical
information

RISK MANAGEMENT
Rigorous credit analysis and monitoring of
securities issuers.
• Portfolios are diversified to appropriate
sectors with issuer limitations
• Monitor market conditions and
evaluate market risk
• Performance measurement against
appropriate benchmarks
Best-in-class resources for portfolio
management, compliance, settlement, and
reporting.
• Proprietary cash flow models
• Horizon Analysis Model
• Credit analysis and security selection

RESOURCES
Expert Oversight and Governance of Investment Program

INVESTMENT ADVISER

OVERSIGHT
Full time investment advisory services.
• SEC-registered investment adviser
focused on the primary tenets of
safety, liquidity, and total return
• Expertise in California Government
Code
• Initial and annual review of the
investment policy

CLIENT SERVICE
Direct access to Investment and Client
Service Professionals.
• Education and training on investment
topics
• Webinars and CPE credits
• Transition and onboarding support

Chandler Asset Management | 18
Biographies & Disclosures
Section 5
Chandler Asset Management | 19
Engagement Team Biographies
Mia Corral Brown
Regional Director
Mia Corral Brown is a Regional Director at Chandler. Leveraging over two decades of experience providing client service to both institutional and public sector clients, Mia’s area of focus is on business development and engagement oversight for Public Sector clients in Southern California which include, Cities, Water Districts, Counties, Special Districts and Joint Power Authorities.

In her tenure at Chandler, Mia has served as an Associate, Vice President, Senior Vice President and Sr. Relationship Manager. She is adept at working alongside Public Agencies to provide comprehensive investment management and client service solutions. Prior to joining Chandler, Mia was employed at Nicholas Applegate Capital Management as an Assistant Marketing Manager and has worked as a Sales Assistant in her early years in the Financial Industry.

Mia is an active member of the California Society of Municipal Finance Officers (CSMFO), the Government Finance Officers Association (GFOA), California Municipal Treasurers Association (CMTA), and is a Member of the California Association of California Treasurers and Tax Collectors and several other Associations which support CA Public Agencies. Mia is a founding member of Women in Public Finance, San Diego Chapter and is a member of our Firm’s DEIB Committee. Mia is a graduate of San Diego State University where she earned her B.A. in communications with an emphasis in business.

Alaynè Marie Sampson
Senior Portfolio Strategist
Alaynè Marie Sampson joined Chandler in 2022 as a Senior Portfolio Strategist. She is a member of the Investment Management Team and participates actively in the portfolio management process as well as builds and maintains client relationships. Alaynè has over 20 years of investment and financial experience. She focuses on identifying and communicating key investment related themes and trends for implementation into fixed income strategies for local government and institutional clients.

Prior to joining Chandler, Alaynè was a Senior Short-Term Credit Analyst, where she was responsible for fundamental credit analysis of commercial paper issuers for a $135 billion cash portfolio. Other roles include Business Project Manager, TAP Associate, and Senior Business Systems Analyst. Alaynè is the Board Chair for Court Appointed Special Advocates of Los Angeles. Alaynè is a graduate of Cornell University with her B.A. in Women’s Studies. She holds the FINRA Series 65 license.

Chandler Asset Management | 20
Engagement Team Biographies cont.

Genny Lynkiewicz, CFA
Senior Portfolio Manager
Genny Lynkiewicz is a Senior Portfolio Manager at Chandler Asset Management. She is responsible for implementing portfolio strategy and securities trading in client accounts. Genny has over 18 years of experience in the finance industry specializing in fixed income investments.

Prior to joining Chandler in 2015, Genny worked at BMO Asset Management in Chicago where she managed over $8 billion in taxable money market funds, securities lending portfolios and separately managed accounts. Genny earned a B.B.A. in Finance, Investment & Banking and a Certificate in International Business from the University of Wisconsin, Madison. She holds the designation of Chartered Financial Analyst.

Nolan Serumaga
Client Service Associate
Nolan Serumaga is a Client Service Associate and joined Chandler Asset Management in 2023. He serves as a liaison between clients and the Chandler team to maintain existing client relationships. He proactively schedules client meetings, creates, and distributes client reports, and responds to client-generated requests. Nolan also maintains the client database and assists with the Chandler Client Portal. Previously, Nolan was an intern at PIMCO and Capital Group. At PIMCO, Nolan gained broad exposure to financial markets, portfolio analysis, and client communication. At Capital Group, he researched, analyzed, identified, and documented opportunities for the Knowledge Management team.

Nolan is a graduate of California State University San Marcos with a B.S. in Business Administration with an emphasis in Global Supply Chain Management. Nolan holds the State Seal of Biliteracy in Spanish.

Chandler Asset Management | 21
©2024 Chandler Asset Management, Inc., An Independent Registered Investment Adviser.

This report is being provided for informational purposes only. No investment decision should be made based solely on the information provided herein. All investments involve risk, including loss of principal invested. The strategies referenced may not be suitable for all investors. The information contained herein is based on internal research derived from various sources and does not purport to be statements of all material facts relating to the strategies. While not guaranteed as to accuracy or completeness, some of the information has been obtained from sources we believe to be reliable. Opinions expressed herein are subject to change without notice. There can be no assurance that an account or specific investment product will be able to achieve its investment objective. No guarantee of investment performance is being provided and no inference to the contrary should be made.

Any forecasts, forward-looking statements and assumptions are inherently limited and should not be relied upon as an indicator of future results. Any opinions and views constitute judgments made by the author at the date of this presentation and may become outdated or superseded at any time without notice. Any statements concerning financial market trends are based on current market conditions, which will fluctuate.

Economic factors, market conditions and investment strategies will affect the performance of any portfolio and there are no assurances that it will match or outperform any particular benchmark. The data contained in this presentation is the property of those providers, which were obtained from sources believed to be reliable, but are subject to change at any time at the provider’s discretion. Unless otherwise noted, Chandler is the source of data contained in this presentation.

Fixed Income investments are subject to interest, credit and market risk. Interest rate risk: the value of fixed income investments will decline as interest rates rise. Credit risk: the possibility that the borrower may not be able to repay interest and principal. Low rated bonds generally must pay higher interest rates to attract investors willing to take on greater risk. Market risk: the bond market in general could decline due to economic conditions, especially during periods of rising interest rates.

References to specific securities are examples of securities held in a portfolio and are not intended to be, and should not be interpreted as an offer, solicitation, or recommendation to purchase or sell any financial instrument, an indication that the purchase of such securities was or will be profitable, or representative of the composition or performance of the portfolio. The information contained in this sample presentation was obtained from sources we believe to be reliable, but we do not guarantee its accuracy. Past performance is not indicative of future success.

ICE BofA 0-3 Year Treasury Index
The ICE BofA Blended 0-3 Year US Treasury Index is a static, internally maintained benchmark comprised of US dollar denominated sovereign debt publicly issued by the US government in its domestic market. Effective 1/1/2001, it consists of the following indices: (30%) ICE BofA US 3-Month Treasury Bill Index, (30%) ICE BofA US 6-Month Treasury Bill Index, (40%) ICE BofA 1-3 Year US Treasury Index. Qualifying securities will include 3 and 6-month Treasury Bills and US Treasury securities that must have at least one year remaining term to final maturity and less than three years remaining term to final maturity, a fixed coupon schedule, and a minimum amount outstanding of $1 billion. Qualifying securities must have at least 18 months to final maturity at the time of issuance. *Prior to 1/1/2001 it consisted of (100%) ICE BofA US 1-Year Treasury Bill Index, G0O3.

ICE BofA 1-3 Year US Treasury Index
The ICE BofA 1-3 Year US Treasury Index tracks the performance of US dollar-denominated sovereign debt publicly issued by the US government in its domestic market. Qualifying securities must have at least one year remaining term to final maturity and less than three years remaining term to final maturity, a fixed coupon schedule, and a minimum amount outstanding of $1 billion. Qualifying securities must have at least 18 months to final maturity at the time of issuance.

ICE BofA 1-5 Year US Treasury & Agency Index
The ICE BofA 1-5 Year US Treasury & Agency Index tracks the performance of US dollar denominated US Treasury and nonsubordinated US agency debt issued in the US domestic market. Qualifying securities must have an investment grade rating (based on an average of Moody’s, S&P and Fitch). Qualifying securities must have at least one year remaining term to final maturity and less than five years remaining term to final maturity, at least 18 months to maturity at time of issuance, a fixed coupon schedule and a minimum amount outstanding of $1 billion for sovereigns and $250 million for agencies.

Source ICE Data Indices, LLC ("ICE"), used with permission. ICE permits the use of ICE Indices and related data on an “as is” basis; ICE, its affiliates and their respective third party suppliers disclaim any and all warranties and representation, express and/or implied, including any warranties of merchantability or fitness for a particular purpose or use, including the indices, index data and any data included in, related to, or derived therefrom. Neither ICE data, its affiliates or their respective third-party providers guarantee the quality, adequacy, accuracy, timeliness or completeness of the indices or the index data or any component thereof, and the indices and index data and all components thereof are provided on an “as is” basis and licensee’s use is at licensee’s own risk. ICE data, its affiliates and their respective third party do not sponsor, endorse, or recommend Chandler, or any of its products or services.

Disclosures
CHANDLER ASSET MANAGEMENT | 800.317.4747 | chandlerasset.com | [email protected] June 25, 2024
TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: PUBLIC WORKS STREET MAINTENANCE DEPARTMENT
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON

ACCEPTING THE PROPOSAL FROM YUNEX TRAFFIC (FORMERLY
SIEMENS MOBILITY, INC.) FOR CITYWIDE TRAFFIC SIGNAL AND

STREET LIGHT MAINTENANCE AND EMERGENCY RESPONSE

SERVICES, TO AUTHORIZE THE CITY MANAGER TO ENTER INTO A THREE (3) YEAR SERVICE AGREEMENT WITH TWO (2) TWO-YEAR

EXTENSION OPTIONS FOR ONE MILLION THREE HUNDRED FIFTY
THOUSAND DOLLARS ($1,350,000), TO ESTABLISH A PURCHASE

ORDER IN THE AMOUNT OF FOUR HUNDRED FIFTY THOUSAND
DOLLARS ($450,000) FOR ONE YEAR OF TRAFFIC SIGNAL AND

STREET LIGHT MAINTENANCE SERVICES AND TO ESTABLISH AN

ADDITIONAL PURCHASE ORDER IN THE AMOUNT OF SIXTEEN

THOUSAND NINE HUNDRED SEVENTY-EIGHT DOLLARS AND FIFTY-
FOUR CENTS ($16,978.54) TO PAY OUTSTANDING INVOICES

SUMMARY
The adoptions of this resolution accepts the proposal from Yunex Traffic (Formerly Siemens Mobility, Inc.) for Citywide Traffic Signal and Streel Light Maintenance and Emergency Response Services, authorizes the City Manager to enter into a three (3) year service agreement with two (2) two-year extension options for One Million Three Hundred Fifty Thousand Dollars ($1,350,000), establishes a purchase order with Yunex Traffic in the amount of Four Hundred Fifty Thousand Dollars ($450,000) for one year of street light maintenance services and establishes an additional purchase order in the amount of Sixteen Thousand Nine-Hundred Seventy-Eight Dollars and Fifty-Four Cents ($16,978.54) to pay outstanding invoices.

BACKGROUND
The City of Compton owns, operates and maintains one hundred and eleven (111) traffic signals with a variety of traffic signal controllers and approximately 1,400 street lights.

The Public Works Street Maintenance Department (Department) is responsible or maintaining the City’s traffic signals and street lighting.

Currently, the City does not have the capacity to maintain its traffic signals and street lighting maintenance services efficiently without the assistance from external services to provide the necessary additional labor, materials and equipment to bring the signalized intersections and street light maintenance services up to current maintenance standards.

20.20.20.20.20. Staff Report – Resolution Approving Contract and Purchase Order Citywide Traffic Signal and Street Light Maintenance Services – Yunex Traffic June 25, 2024, page 2

STATEMENT OF ISSUE
The Department solicited Request for Proposals (RFP) from reputable firms and qualified electrical contractors to provide traffic signal and street light maintenance, emergency repair, non-emergency routine inspections and new equipment upgrade and installation work. The Department is seeking a contractor whose combination of experience and personnel will provide timely, cost effective and quality professional services.

The selected firm will be required to have qualified traffic technicians that have demonstrated experience with traffic signal, streetlight and other electrical work. The firm shall also have the ability to troubleshoot and diagnose problems with all of the City’s traffic signal related electrical operations systems.

The total amount of work available will be a function of routine traffic signal maintenance plus the amount of work that is required due to normal “wear and tear”, collision damage, vandalism and other factors that may result in the need for emergency response maintenance services. The Department expects traffic signal technicians to be regularly assigned to the City as necessary to provide preventative maintenance and to respond to unscheduled/emergency work.

The Department advertised an RFP for Citywide Traffic Signal and Street Light Maintenance and Emergency Response Services on May 22, 2024, in the Bulletin newspaper and on the City’s website.

As a result of the Request for Proposal, one (1) qualified electrical contracting firm submitted a proposal by the stipulated deadline of May 30, 2024.

Traffic Signal and Street Light Maintenance Submitters

1. Yunex Traffic (formerly Siemens Mobility, Inc.)
The electrical contracting firm:
Submitted their proposal on time
Submitted their bid price sheet
Met some or all of the minimum requirements for traffic signal and street light maintenance
Schedule of Compensation:

Yunex Traffic $1,350,000
Staff Report – Resolution Approving Contract and Purchase Order Citywide Traffic Signal and Street Light Maintenance Services – Yunex Traffic June 25, 2024, page 3
The Public Works Superintendent and staff evaluated the proposal to evaluate staffing, equipment and services. As a result, the proposal submitted by Yunex Traffic was determined to be the lowest, most responsive and responsible bidder.

Selection of the most responsive qualified firm was based on the following; cost, completeness of the proposals, demonstrated understanding of the scope of services, quality of similar work previously performed, responsiveness to the RFP requirements, and familiarity with the City.

Yunex Traffic is dedicated to meeting and exceeding the challenging public safety requirements associated with the industry. Yunex has been in the traffic signal maintenance industry worldwide for over 50 years. Locally, Yunex has been in business for over 40 years servicing numerous contracts throughout California.

Yunex Traffic currently services over 10,000 traffic intersections and 400,000 streetlights under long-term maintenance agreements nationwide and has acceptably serviced the City of Compton for the past several years.

FISCAL IMPACT
The cost for citywide traffic signal and street light maintenance services for the three (3) year term (June 24, 2024 – June 23, 2027) is One million Three Hundred Fifty Thousand Dollars ($1,350,000). A purchase order will be established in the first year of the agreement for Four Hundred Fifty Thousand Dollars ($450,000). Funds for this expenditure are allocated in the Department’s Fiscal Year 2023-2024 Budget in Account No. 2502-720-000-4266. Funds will be allocated in future fiscal year budgets for these services.

Additionally, due to a significant amount of emergency traffic signal knockdowns, the Department has exhausted the allocated funding for the current fiscal year. As a result, there are two outstanding invoices totaling Sixteen Thousand Nine Hundred Seventy- Eight Dollars and Fifty-Four Cents ($16,978.54) due to Yunex Traffic. Funds for this expenditure are available in the Department’s Fiscal Year 2023-2024 Budget in Account No. 2502-720-000-4266.

ALTERNATIVE
No other alternative is being proposed.

Staff Report – Resolution Approving Contract and Purchase Order Citywide Traffic Signal and Street Light Maintenance Services – Yunex Traffic June 25, 2024, page 4

RECOMMENDATION
Staff recommends the City Council accepts the bid submitted by Yunex Traffic and authorize the City Manager to enter into a three (3) year service agreement with two (2) two-year extension options for Citywide traffic Signal and Street Light Maintenance and Emergency Response Services.

DAMION TIMMONS

STREET SUPERINTENDENT

APPROVED FOR FORWARDING
WILLIE HOPKINS, JR.

CITY MANAGER
RESOLUTION NO. _______________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON

ACCEPTING THE PROPOSAL FROM YUNEX TRAFFIC (FORMERLY
SIEMENS MOBILITY, INC.) FOR CITYWIDE TRAFFIC SIGNAL AND STREET

LIGHT MAINTENANCE AND EMERGENCY RESPONSE SERVICES, TO
AUTHORIZE THE CITY MANAGER TO ENTER INTO A THREE (3) YEAR SERVICE AGREEMENT WITH TWO (2) TWO-YEAR EXTENSION OPTIONS

FOR ONE MILLION THREE HUNDRED FIFTY THOUSAND DOLLARS
($1,350,000), TO ESTABLISH A PURCHASE ORDER IN THE AMOUNT OF FOUR HUNDRED FIFTY THOUSAND DOLLARS ($450,000) FOR ONE YEAR

OF TRAFFIC SIGNAL AND STREET LIGHT MAINTENANCE SERVICES AND

TO ESTABLISH AN ADDITIONAL PURCHASE ORDER IN THE AMOUNT OF

SIXTEEN THOUSAND NINE HUNDRED SEVENTY-EIGHT DOLLARS AND FIFTY-FOUR CENTS ($16,978.54) TO PAY OUTSTANDING INVOICES WHEREAS, the City owns, operates and maintains one hundred and eleven (111) traffic signals with a variety of traffic signal controllers, and approximately 1,400 street lights; and

WHEREAS, the Public Works Street Maintenance Department (Department) is responsible for maintaining the City’s traffic signals and street lighting; and WHEREAS, the Department advertised a Request for Proposal for Citywide Traffic Signal and Street Light Maintenance and Emergency Response Services on May 22, 2024, in the Bulletin newspaper and on the City’s website; and WHEREAS, as a result of the Request for Proposal, one electrical contracting firm submitted a proposal by the stipulated deadline, as follows:

Vendor Compensation
Yunex Traffic (formerly Siemens Mobility, Inc.) $1,350,000 WHEREAS, the Street Superintendent and staff evaluated the proposal to evaluate staffing, equipment and services. The proposal submitted by Yunex Traffic was determined to be the lowest, most responsive and responsible bidder; and WHEREAS, staff recommends that the City Council accept the proposal submitted by Yunex Traffic and authorize the City Manager to enter into a three (3) year service agreement (June 24, 2024 – June 23, 2027) for One Million Three Hundred Fifty Thousand Dollars ($1,350,000) with two (2) two-year extension options; and WHEREAS, a purchase order will be established in the first year of the service agreement for Four Hundred Fifty Thousand Dollars ($450,000). Funds for this expenditure are available in the Department’s 2023-2024 Budget in Account No. 2502- 720-000-4266; and

WHEREAS, an additional purchase order will be established for Sixteen Thousand Nine Hundred Seventy-Eight Dollars and Fifty-Four Cents ($16,978.54) to pay outstanding invoices for emergency traffic signal maintenance.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COMPTON DOES HEREBY RESOLVE AS FOLLOWS:

Section 1.That the proposal from Yunex Traffic is hereby accepted.

Section 2. That the City Manager is hereby authorized to enter into a three (3) year service agreement (June 24, 2024 – June 23, 2027) with Yunex Traffic for the provision of Citywide Traffic Signal and Street Light Maintenance and Emergency Response Services in the amount of One Million Three Hundred Fifty Thousand Dollars ($1,350,000) with two (2) two-year extension options.

Resolution No. __________

Page 2 ends

Section 3. That a purchase order is authorized to be established for the first year of the agreement with Yunex Traffic in the amount of Four Hundred Fifty Thousand Dollars ($450,000) for traffic signal and street light maintenance services. Funding for this expenditure is available in the Department’s Fiscal Year 2023-2024 Budget in Account No. 2502-720-000-4266.

Section 4. That an additional purchase order is authorized to be established in the amount of Sixteen Thousand Nine Hundred Seventy-Eight Dollars and Fifty-Four Cents ($16,978.54) to pay outstanding invoices for emergency traffic signal maintenance. Funds for this expenditure is available in the Department’s Fiscal Year 2023-2024 Budget in Account No. 2502-720-000-4266.

Section 5. That a copy of this Resolution shall be filed in the offices of the City Clerk, City Manager, City Attorney, City Controller and Public Works Street Maintenance Department.

Section 6.That the Mayor shall sign and the City Clerk shall attest to the adoption of this Resolution.

ADOPTED this ___________ day of ___________, 2024.

MAYOR OF THE CITY OF COMPTON
ATTEST:
____________________________________

CITY CLERK OF THE CITY OF COMPTON

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss

CITY OF COMPTON )
I, Vernell McDaniel, City Clerk of the City of Compton, hereby certify that the foregoing Resolution was adopted by the City Council of the City of Compton, signed by the Mayor and attested by the City Clerk at a regular meeting thereof held on this ___________ day of ___________________, 2024.

That said Resolution was adopted by the following vote, to wit:

AYES: COUNCILMEMBERS-
NOES: COUNCILMEMBERS-
ABSTAIN: COUNCILMEMBERS-
ABSENT: COUNCILMEMBERS-
___________ ___

CITY CLERK OF THE CITY OF COMPTON

SERVICE AGREEMENT

BETWEEN

CITY OF COMPTON
AND

YUNEX TRAFFIC
This AGREEMENT is made by and between the CITY OF COMPTON, a municipal corporation of the State of California (hereinafter referred to as “CITY”) located at 205 South Willowbrook Avenue, Compton, California 90220, and YUNEX TRAFFIC (hereinafter referred to as “CONTRACTOR”) located at 1026 East Lacy Avenue, Anaheim, CA 92805.

RECITALS:

A. City is a municipal corporation duly organized and validly existing under the law of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of City.

B. Contractor is a corporation duly organized and in good standing in the State of California. Contractor represents that it is duly licensed by the State of California and has the background, knowledge, experience and expertise to perform the obligations set forth in this Agreement.

C. City and Contractor enter into this Agreement for the purpose of retaining Yunex Traffic (Contractor) to perform that work required pursuant to the Agreement herein.

D. Authorization to enter into this Agreement is pursuant to Resolution No. _____ adopted by the City Council on ___________.

AGREEMENT:

That the City and Contractor, for the consideration, terms and conditions herein described, mutually agree as follows:

1. SERVICES TO BE PERFORMED BY CONTRACTOR:

Contractor agrees to provide and furnish all necessary professional, managers, supervisors, staff, equipment, materials, supplies, manufactured articles, laborers, necessary tools, expendable equipment, all utility, transportation and services, including fuel, essential communications and other facilities required in connection with providing annual professional traffic signal and street lighting maintenance services; which shall include, but not limited to performing the following traffic signal and street lighting maintenance services activities at various locations throughout the City:
Walk the intersection and visually inspect all signal heads for proper operation, alignment, broken lenses, and missing parts. Depress all pedestrian push buttons and observe proper timing and display.
Examine the functioning of the controller in relation to the traffic. Observe and check for proper operation of the detector loops and amplifiers. Adjust or re-tune detector amplifiers and correct substandard splices as necessary. For intersections with video detection, verify camera operation by monitoring the vehicle call on the video controller unit. Also, verify the calls going to the detector call page in the controller.

Services Agreement –Yunex Traffic
Citywide Traffic Signal and Street Light Maintenance and Emergency Response Services Resolution No. _________
2 Inspect all relays, switches and terminals, etc. and replace or make adjustments as necessary.
Check and adjust fan operation. Check the filter for tight fit and tape if required. Clean and vacuum the cabinet as necessary. Examine cabinet interior for water, excessive dampness and plant or animal intrusion.
Inspect battery backup system (if the signal is equipped with such unit) to ensure unit is fully charged. Check all battery connections to ensure they are clean and secure. Perform a night time check of safety lights and illuminated street name signs at all signalized intersections.
The Contractor shall investigate and determine the corrective requirements for each reported malfunction, failure, or outage of the traffic signal system. The City may request that the Contractor perform emergency response work on the traffic control system.

Contractor shall not proceed with any work until the City has approved an itemized cost proposal presented to the City by the Contractor for the requested services.

Contractor will be responsible for the professional quality, technical accuracy and coordination of the services. Contractor will, without additional compensation, correct or revise and errors or deficiencies in the services.

Contractor agrees to perform all the said work and furnish all the said materials at its own cost and expense, as are necessary to complete in a good worker-like and substantial manner and to the satisfaction of the City.

1.1 Key Personnel.
.a Contractor’s Representative. Contractor hereby designates:

Rodney Mathis, CEO President & Managing Director and Dirk Rauber, CFO & Managing Director Finance of Contractor, who shall be deemed to be Contractor’s agent with express authority to bind Contractor with respect to all matters requiring Contractor’s approval or authorization.
.b City’s Representative. City hereby designates:

The Street Superintendent or his/her designated representative as City’s Representative for this Agreement.

2. COMPENSATION:

The method of payment for the services rendered pursuant to this Agreement shall be based on a fee-for-services, per task basis, billable at the unit price rates specified within the Contractor’s Proposal, which is incorporated herein. It is understood and agreed between the parties that the maximum compensation payable for the services to be provided by the Contractor during each contract year of this Agreement shall be limited to a not-to-exceed amount of Four Hundred Fifty Thousand Dollars ($450,000).

Services Agreement –Yunex Traffic
Citywide Traffic Signal and Street Light Maintenance and Emergency Response Services Resolution No. _________
3 The total sum paid to the Contractor will include compensation for all work, including travel, materials, supplies, vendor services, expenses and subcontracted work. No additional compensation will be paid to the Contractor, unless there is a change in the scope of the services or the scope of the project. In the instance of a change in the scope of services or scope of the project, adjustment to the compensation may be negotiated between the Contractor and the City. Adjustment in the compensation will not be effective until authorized and approved by contract amendment.

Progress payments may be made in arrears based on the percentage of work and deliverables completed by the Contractor. If Contractor fails to perform the required services according to schedule or other provisions of this Agreement, the City shall have the right to delay payment and/or terminate this Agreement in accordance with the provisions noted herein.

Contractor shall be reimbursed within thirty (30) days, or as promptly as fiscal procedures may permit, upon receipt by the City of itemized and detailed invoices for services completed. Invoices shall be submitted no later than 45 calendar days after the performance of work for which the Contractor is billing. Invoices shall be delivered or mailed to the Street Superintendent, Public Works Street Maintenance Department at the following address: City of Compton, 205 South Willowbrook Avenue, Compton, California 90220.

The Contractor is required to comply with all federal, state and local laws and ordinances applicable to the work.

In the event of termination, the Contractor shall be entitled to compensation for the undisputed reasonable value of services performed to the effective date of termination; provided, however, that the City may condition payment of such compensation upon the Contractor’s delivery to the City of any and all City property, documents, reports, records, materials and work product associated with the performance of this Agreement.

3. TERM OF AGREEMENT:

The term of this Agreement shall be for a period of three (3) years (June 24, 2024 –June 23, 2027), with an option to renew/extend the Agreement for an additional two (2) two-year terms, if agreed to by the Parties, unless this Agreement is terminated as provided herein.

4. SAFETY:

4.1Contractor shall have overall responsibility for safety precautions and programs in the performance of the services.

4.1Contractor shall seek to avoid injury, loss or damage to persons or property by taking reasonable steps to protect:
.aEmployees and all other persons at the location where services are rendered (“Site”);
Services Agreement –Yunex Traffic
Citywide Traffic Signal and Street Light Maintenance and Emergency Response Services Resolution No. _________
4 .bMaterials and equipment on the Site or off the Site at locations for use in performance of the work; and
.cThe assigned project Site and all property located at the Site, whether or not said property or structures are part of the project or involved in the work.

4.2Contractor shall designate an individual at the Site of the assigned project in the employ of Contractor who shall act as Contractor’s designated safety representative with a duty to prevent accidents.

4.3Losses not insured under property insurance which may arise from the performance of the work, to the extent of the negligence attributed to such acts or omissions of Contractor or anyone for whose acts Contractor may be liable, shall be promptly remedied by Contractor at Contractor’s cost and without reimbursement by City as a cost of work, or in any other manner.

4.4If City deems any part of the work or Site unsafe, City may require Contractor, without assuming responsibility for Contractor’s safety program, to immediately stop performance of the work or take corrective measures. Neither City’s order nor Contractor’s action in response thereto shall be the basis for adjustment in the contract price or contract time.

5. INDEMNITY:

Contractor shall indemnify and save harmless the City, its officials, officers, employees, agents and volunteers (collectively hereafter the CITY) against any and all damages to property or injuries to or death of any person or persons, including property and employees or agents of the City and shall defend, indemnify and save the City from any and all liability or expense, including defense costs and legal fees, and claims, demands, suits, actions or proceedings of any kind or nature, including Worker’s Compensation claims, of or by anyone whomsoever in any way resulting from or arising out of the negligent or intentional acts or omissions of the Contractor in the performance of this Contract, including operations of subcontractors and acts or omissions of employers or agents of the Contractor or its subcontractors.

This indemnification and hold harmless obligation do not extend to claims arising out of the sole negligence or willful misconduct of the City.

6. INSURANCE:

6.1Contractor, by executing this Agreement, hereby certifies:
(1) “I am aware of the provisions of Section 3700 of the Labor Code which requires every employer to be insured against liability for Worker’s Compensation or to undertake self- insurance in accordance with the provisions of that Code and I will comply with such provisions before commencing the performance of the work of this Contract.” Services Agreement –Yunex Traffic
Citywide Traffic Signal and Street Light Maintenance and Emergency Response Services Resolution No. _________
5 (2) Contractor further agrees to require all subcontractors to carry Worker’s Compensation Insurance as required by the Labor Code of the State of California.

6.2Without limiting Contractor’s indemnification of the City, Contractor shall provide and maintain at its own expense during the term of this Agreement the following program(s) of insurance covering its operations hereunder. Evidence of such insurance, which shall be provided by insurer(s) satisfactory to the City’s Risk Manager, shall be delivered to the City. Such evidence shall express conditions that the City is to be given written notice at least thirty (30) days in advance of any termination or implementation of a reduction of limits or material change of insurance coverage as specified herein, including at least ten (10) day notice of any non-payment of premium(s). Failure on the part of the Contractor to procure or maintain insurance shall constitute a material breach upon which the CITY may immediately terminate this Agreement.

All insurance required hereunder shall be primary with respect to any insurance maintained by the City and shall not call on the City’s program for contributions. Program(s) of insurance shall include:

1. General Liability.Contractor shall provide and maintain at its own expense during the term of this Agreement a policy of Commercial General Liability Insurance, inclusive of personal injury liability and broad form property damage coverage, in an amount not less than One Million Dollars ($1,000,000.00) per occurrence. The coverage shall be written on an occurrence basis. Claims made coverage is not acceptable.

2. Workers’ Compensation Insurance.Contractor shall provide and maintain at its own expense during the term of this Agreement a program of Workers’ Compensation Insurance and Employer’s Liability Insurance in an amount and form to meet all applicable requirements of the State Labor Code and which specifically covers all persons providing services by or on behalf of the Contractor and all risks to such persons under the Agreement.

3. Automotive Liability.A program of insurance with a limit of liability of not less than One Million Dollars ($1,000,000.00) for each accident. Such insurance shall include coverage for all “owned”, “hired” and “non-owned” vehicles, or coverage for “any auto”.

4. Insurance Endorsements.The liability insurance policy(ies) shall be endorsed with the following language:
. aThe City of Compton and its respective elected and appointed officers, officials, employees, agents and volunteers are to be named and covered as “additional insureds” with respect to liability arising out of the activities of the Contractor. . bThe insurer waives all rights of subrogation against the City. .cAny failure to comply with reporting provisions of the policies shall not affect coverage provided to the City.
. dIdentity of the insured(s).

Services Agreement –Yunex Traffic
Citywide Traffic Signal and Street Light Maintenance and Emergency Response Services Resolution No. _________
6 Insurance coverage specified herein constitutes the minimum requirements and said requirements shall in no way lessen or limit the liability of the Contractor under the terms of the Agreement. The Contractor is advised that the City does not carry Contractor’s Risk insurance, and the Contractor shall obtain its own coverage. Contractor shall procure and maintain, at its own costs and expense, any additional kinds and amounts of insurance that, in its own judgment, may be necessary for its proper protection of the work. Contractor shall ensure any and all contracts with its Trade Contractors performing services under this Agreement meet the insurance requirements of this Agreement.

6.3 Waiver of Subrogation.Required insurance coverages shall not prohibit Contractor from waiving the right of subrogation prior to a loss. Contractor shall waive all subrogation rights against the indemnified parties. Policies shall contain or be endorsed to contain such provisions.

6.4 Deductible. Any deductible or self-insured retention must be approved in writing by the City and shall protect the indemnified parties in the same manner and to the same extent as they would have been protected had the policy or policies not contained a deductible or self-insured retention.

6.5 Evidence of Insurance.The Contractor, concurrently with the execution of the Contract, and as a condition precedent to the effectiveness thereof, shall deliver certified copies of the required policies to the City. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. At least fifteen (15) days prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or reduced, Contractor shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies.

6.6 Acceptability of Insurers.Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than A:VII and authorized to do business in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law.

6.7 Insurance for Subcontractors.All subcontractors shall be included as additional insured under the Contractor’s policies, or the Contractor shall be responsible for causing subcontractors to purchase the appropriate insurance in compliance with the terms of these Insurance Requirements, including adding the City as an “additional insured” to the subcontractor's policies.

7. NONDISCRIMINATORY EMPLOYMENT PRACTICES:

During the performance of this Contract, the Contractor agrees not to discriminate against any employee or applicant for employment because of race, sex, creed, color, religion, age, sexual orientation, marital status, national origin, political affiliation, handicap or belief in Services Agreement –Yunex Traffic
Citywide Traffic Signal and Street Light Maintenance and Emergency Response Services Resolution No. _________
7 accordance with requirements of City, State or Federal laws and regulations. The Contractor will take affirmative action to ensure that applicants are employed and that employees are treated during employment without regard to their race, sex, creed, color, religion, age, sexual orientation, marital status, national origin, political affiliation, handicap or belief. Such action shall include, but not be limited to, the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoffs or termination; rates of pay or other forms of compensation and selection for training, including apprenticeship. The Contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices setting forth provisions of this nondiscrimination clause.

In the event of the Contractor’s noncompliance with the nondiscrimination clauses of this Contract, this Contract may be canceled, terminated or suspended in whole or in part.

8. SUCCESSOR AND ASSIGNS:

City and the Contractor each binds themselves, their partners, successors, assigns and legal representatives to the other party hereto and to partners, successors, assigns and legal representatives of such other party in respect to all covenants, agreements and obligations contained in the Contract Documents. Neither party to the Agreement shall assign the Contract or sublet it in whole or part without the written consent of the other, nor shall the Contractor assign any monies due or to become due to it hereunder, without the previous written consent of the City. Any attempted assignment of this Contract without the written consent of both parties is void.

9. INDEPENDENT CONTRACTOR STATUS:

Contractor, its officers, employees, subcontractors, agents and volunteers (collectively hereinafter the CONTRACTOR), is a wholly independent Contractor and not an officer, employee, subcontractor or agent of the City. Neither the City nor any of its officers, employees, agents or volunteers shall have any control over the conduct of the Contractor, except as expressly set forth in this Agreement. Contractor expressly warrants that while engaged in carrying out and complying with any terms and conditions of this Agreement that Contractor shall not at any time or in any manner, represent that Contractor is in any manner officers, employees, agents or volunteers of the City. Contractor shall obtain no rights to retirement, health care or any other benefit that accrue to City officials, officers, or employees.

Contractor expressly waives any claim to such rights.

10. SUBCONTRACTING:

Except as may be agreed to by the City, Contractor will not subcontract any portion of the services without prior written approval of City Manager or his/her designee. If Contractor subcontracts any of the services, Contractor will be fully responsible to City for the acts, errors and omissions of Contractor's subcontractor and of the persons either directly or indirectly employed by the subcontractor, as Contractor is for the acts and omissions of persons directly employed by Contractor. Nothing contained in this Agreement will create any contractual relationship between any subcontractor of Contractor and City. Contractor will be responsible for payment of subcontractors. Contractor will bind every subcontractor and every Services Agreement –Yunex Traffic
Citywide Traffic Signal and Street Light Maintenance and Emergency Response Services Resolution No. _________
8 subcontractor of a subcontractor by the terms of this Agreement applicable to Contractor's work unless specifically noted to the contrary in the subcontract and approved in writing by City.

11. OTHER CONTRACTORS:

The City reserves the right to employ other Contractors in connection with the services.

12. PERMITS AND LICENSES:

Contractor, at its sole expense, shall obtain and maintain during the term of this Agreement, all appropriate business and professional permits, licenses and certificates that may be required in connection with the performance of services by Contractor.

Prior to or at the time of execution of this Agreement, the Contractor shall purchase a business license permit in conformance with Section 9-1.2 of the Compton Municipal Code.

13. TERMINATION:

Notwithstanding any other provisions of this Agreement, this Agreement may be terminated as follows:

13.1If the Contractor becomes insolvent; that is, it has ceased to pay its debts in the ordinary course of business or cannot pay its debts as they become due, whether or not it has committed an act of bankruptcy, and whether or not insolvent within the meaning of the federal Bankruptcy law, then, the City may, without prejudice to any other right or remedy and after giving the Contractor five (5) days written notice, terminate this Agreement.

13.2If the Contractor persistently or repeatedly refuses or fails, except in cases for which extensions of time are provided, to supply enough properly skilled workers, property or material, or if he fails to make prompt payment to subcontractors or for materials or labor, or he persistently disregards laws, ordinances, rules, regulations or orders of any public authority having jurisdiction, then, the City may, without prejudice to any other right or remedy and after giving the Contractor five (5) days written notice, terminate this Agreement.

13.3If the Contractor fails to perform or breaches any material obligation under this Agreement, then, the City may, without prejudice to any other right or remedy and after giving the Contractor five (5) days written notice, terminate this Agreement.

If the City gives notice of termination, Contractor shall cease immediately all work in progress unless otherwise directed in writing by the City. Upon termination, Contractor shall furnish to the City a final invoice for work performed.

14. FORCE MAJEURE:

In the event that performance by either party is rendered impossible (permanently or temporarily) due to acts of war, acts of terrorism, fires, floods, epidemics, quarantine restrictions, or other natural occurrences, strikes, work slowdowns, lockouts (other than lockout Services Agreement –Yunex Traffic
Citywide Traffic Signal and Street Light Maintenance and Emergency Response Services Resolution No. _________
9 by Contractor or any of Contractor’s subcontractors), or other similar acts to those described above or other causes beyond the reasonable control of such party, and without fault or negligence, said event shall excuse performance by such party, or in the case of temporary impossibility, shall excuse performance only for a period commensurate with the period of impossibility. Notwithstanding the foregoing, City shall have the right to terminate this Contract upon any event that renders performance impossible. In such case, City shall be responsible for payment of all expenses incurred to the point at which this Contract is terminated.

15. WAIVERS:

A waiver by either party to this Agreement of any breach of any term, covenant or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition contained herein, whether of the same or a different character.

16. AMENDMENTS:

This Agreement may be modified or amended only by written document executed by both Contractor and City’s City Manager and approved as to form by the City Attorney. Such document shall expressly state that it is intended by the parties to amend the terms and conditions of this Agreement.

17. NOTICE:

All notices, demands or requests to be given under this Agreement shall be given in writing and conclusively shall be deemed received when: (a) delivered personally, or (b) on the fifth day after the deposit thereof in the United States mail, postage prepaid and addressed as hereinafter provided, or (c) one business day after sent by facsimile transmission.

Contractor: Yunex Traffic
1026 E Lacy Ave
Anaheim, California 92805
Attn: Rodney Mathis, CEO President
Dirk Rauber, CFO
(951) 784-6600
City: City of Compton
205 South Willowbrook Avenue
Compton, California 90220
Attn: Public Works Street Superintendent
(310) 605-5691
([email protected])

18. CONTRACTOR’S BOOKS AND RECORDS:

Services Agreement –Yunex Traffic
Citywide Traffic Signal and Street Light Maintenance and Emergency Response Services Resolution No. _________
10 Contractor shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to work, services, expenditures and disbursements charges to the City for the period and to the extent required by laws relating to audits of public agencies and their expenditures.

Contractor shall maintain all documents and records which demonstrate performance under this Agreement for the period and to the extent required by laws relating to audits of public agencies and their expenditures.

Any records or documents required to be maintained pursuant to this Agreement shall be made available for inspection or audit, at any time during regular business hours, upon written request by the City or a designated representative. Copies of such documents shall be provided to the City, at its expenses, for inspection when it is practical to do so. Otherwise, unless an alternative is mutually agreed upon, the records shall be available at Contractor’s address indicated for receipt of notices in this Agreement.

19. EXAMINATION AND AUDIT:

This Contract shall be subject to examination and audit of the City, State Auditor of the State of California and/or any duly authorized representative of the federal government, at the request of the City, or as part of any audit of the City, for a period of three (3) years, or longer if required by law, after final payment under this Agreement.

20. EXTENT OF AGREEMENT:

This Agreement constitutes the entire understanding and agreement of the parties. This Agreement integrates all of the terms and conditions mentioned herein or incidental hereto and supersedes all negotiations or previous agreements between the parties with respect to all and any part of the subject matter hereof. Nothing contained in this Agreement shall create any contractual relations between any subcontractor and the City.

Incorporated herein and made a part hereof are the CITY’s “Request for Proposal for Citywide Traffic Signal and Street Light Maintenance and Emergency Response Services for the City of Compton” and the CONTRACTOR’s Proposal for “Citywide Traffic Signal and Street Light Maintenance and Emergency Response Services” (dated May 30, 2024).

21. GOVERNING LAW, JURISDICTION AND VENUE:

This Agreement shall be governed by and construed under the laws of the State of California. In the event of litigation between the parties, venue shall lie exclusively in a court of competent jurisdiction in the County of Los Angeles, state of California, and the Parties waive all provisions of law providing for a change of venue in these proceedings to any other county.

Should any part of this Agreement be declared by a final decision by a court or tribunal of competent jurisdiction to be unconstitutional, invalid, or beyond the authority of either party to enter into or carry out, such decision shall not affect the validity of the remainder of this Services Agreement –Yunex Traffic
Citywide Traffic Signal and Street Light Maintenance and Emergency Response Services Resolution No. _________
11 Agreement, which shall continue in full force and effect, provided that the remainder of this Agreement, absent the unexcised portion, can be reasonably interpreted to give effect to the intentions of the parties.

22. WAIVER OF JURY TRIAL:

Contractor voluntarily waives its right to a jury trial of any cause of action, claim, counter- claim or cross-complaint in any action, proceeding or hearing on any matter whatsoever arising out of, or in any way connected with, this Agreement, the relationship between City and Contractor, Contractor’s performance on each project, or the enforcement of any remedy under any law, statute or regulation now or hereafter in effect. Contractor shall include this provision for waiver of jury trial right in its contracts with its subcontractors who provide work on any assigned projects, waiving the right of a jury trial in any action involving City as a party, whether by joinder, consolidation, counter-claim, cross-complaint or otherwise.

23. FEDERAL AND STATE WITHHOLDING TAXES:

Contractor shall be responsible for paying when due all federal and state income withholding taxes for all earning under this Agreement. Contractor agrees to indemnify City for any claims, costs, losses, fees, penalties, interest, or damages suffered by City resulting from Contractor’s failure to comply with this provision. Contractor shall be responsible for paying all federal and state income withholding taxes for all earning under this Agreement.

24. CERTIFICATIONS:

CERTIFICATIONS OF CONTRACTOR
I, Rodney Mathis and Dirk Rauber, HEREBY CERTIFY that we are duly authorized representative(s) of the CONTRACTOR firm of Yunex Traffic, and that, except as hereby expressly stated, neither I nor the above firm that I represent have:
.a employed or retained for a commission, percentage, brokerage, contingent fee, or other consideration, any firm or person (other than a bona fide employee working solely for me or the above consultant) to solicit or secure this agreement; nor .b agreed, as an express or implied condition for obtaining this contract, to employ or retain the services of any firm or person in connection with carrying out the agreement; nor .c paid, or agreed to pay, to any firm, organization or person (other than a bona fide employee working solely for me or the above consultant) any fee, contribution, donation, or consideration of any kind, for or in connection with, procuring or carrying out this agreement.

DEBARMENT AND SUSPENSION CERTIFICATION
The Contractor, under penalty of perjury, certifies that, except as noted below, he/she or any other person associated therewith in the capacity of owner, partner, director, officer, manager:

Services Agreement –Yunex Traffic
Citywide Traffic Signal and Street Light Maintenance and Emergency Response Services Resolution No. _________
12 is not currently under suspension, debarment, voluntary exclusion, or determination of ineligibility by any Federal, State or local agency; and has not been suspended, debarred, voluntarily excluded or determined ineligible by any Federal, State or local agency within the past 3 years; and does not have a proposed debarment pending; and
has not been indicted, convicted, or had a civil judgment rendered against he/she/it by a court of competent jurisdiction in any matter involving fraud or official misconduct in connection with obtaining, attempting to obtain, or performing a public (Federal, state or local) transaction or contract under a public transaction; violation of Federal or state antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property within the past 3 years; and
are not presently indicted or otherwise criminally or civilly charged by a governmental entity (Federal, State or local) with commission of any of the offenses enumerated in the preceding paragraph; and
have not had one or more public transactions (Federal, State or local) terminated for cause or default within the past 3 years.

If there are any exceptions to this certification, insert the exceptions in the following space. [Supply exceptions on separate page]
For any exception noted above, indicate below to whom it applies, initiating agency, and dates of action.
[Attach separate page]
This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction.

The above certifications are part of this contract. Signing this agreement on the signature portion thereof shall also constitute signature of the above Certifications. ___________________________________________ ___________________ Rodney Mathis, CEO President & Managing Director Date Dirk Rauber, CFO & Managing Director Finance

25. MISCELLANEOUS:

No provision of this Agreement is to be interpreted for or against either party because that party or that party’s legal representative drafted such provision.

Should either party hereto, or any representative, successor or assign of either party hereto, resort to litigation to enforce the provisions of this Agreement, the party or parties prevailing in such litigation shall be entitled, in addition to such other relief as may be granted, to Services Agreement –Yunex Traffic
Citywide Traffic Signal and Street Light Maintenance and Emergency Response Services Resolution No. _________
13 recover its or their reasonable attorney’s fees and costs in such litigation from the party or parties against whom enforcement is sought.

IN WITNESS WHEREOF, Contractor has executed this Agreement and the City, by its City Manager, who is authorized to do so, has executed this Agreement.

YUNEX TRAFFIC

CONTRACTOR
Dated: ________________ By _____________________________ Rodney Mathis, CEO President & Managing Director
Dirk Rauber, CFO & Managing Director Finance

CITY OF COMPTON
Recommended for Approval:

By __________________________________ Dated: _____________________ Damion Timmons, Street Superintendent
Public Works Street Maintenance
Department
Approved by:

Dated: __________________ By______________________________________ Willie Hopkins, Jr., City Manager
Approved as to form:

By __________________________________ Dated: _____________________ Eric Perrodin, City Attorney
ATTEST:

Services Agreement –Yunex Traffic
Citywide Traffic Signal and Street Light Maintenance and Emergency Response Services Resolution No. _________
14 Dated: ___________________ By _____________________________________ Vernell McDaniel, City Clerk
June 25, 2024
TO: MAYOR AND CITY COUNCIL MEMBERS
FROM: CITY CONTROLLER
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

COMPTON AUTHORIZING THE CITY MANAGER TO ENTER INTO A MULTI- YEAR AGREEMENT WITH GOVINVEST INC. FOR PROFESSIONAL
SOFTWARE MANAGEMENT SERVICES FOR UPGRADING THE CITY’S

LABOR COSTING MODULE, PENSION MODULE, OPEB MODULE, AND
GASB REPORTING SERVICES ($170,292.21), AND TO ISSUE A PURCHASE ORDER ($56,764.07) FOR THE FIRST YEAR OF SERVICES.

SUMMARY
Staff is requesting that the City Council consider adopting a Resolution authorizing the City Manager to enter into a three (3) year professional services agreement ($170,292.21), along with authorization to extend the term of the agreement for two (2) additional years with GovInvest Inc. to provide software programming services to the City for upgrading the Labor Costing Module, Pension Module, OPEB (Other Post-Employment Benefits) Module, and GASB (Governmental Accounting Standards Board) Reporting services, and to issue a Purchase Order for the amount of Fifty-Six Thousand Seven Hundred Sixty-Four Dollars and Seven Cents ($56,764.07) for the first year of services.

BACKGROUND
The mission of GovInvest Inc. is to help governments solve their unfunded pension, OPEB, and liability problems, through unique software and simple, understandable actuarial reports. They provide value by facilitating easy communication of complex information to decision makers and stakeholders, allowing them to understand and analyze their liabilities, and providing clear solutions. The available solution suite consists of actuarial software, actuarial valuations, and benefit consulting.

The software solution provides visuals and analysis of the valuation reports that contain hundreds of convoluted assumptions and mathematical equations. The GovInvest Inc. platform also enables real-time sensitivity analysis to evaluate impacts of employee raises, medical and dental payout benefit modifications and more.

In 2019, pursuant to Resolution 25,076, the City Council authorized the City Manager to enter into a five (5) year service agreement from July 2019 through June 2024 with GovInvest Inc. to provide software services that the City uses to determine labor cost. At the time of the agreement, GovInvest Inc., through a software programming subsidiary, Ad Astra, agreed to provide the City with programming and licensing services.

In 2021, Ad Astra and GovInvest

21.21.21.21.21.21.21.21.21.21. Staff Report – Resolution Authorizing Agreement GovInvest Inc. Consulting Services for Pension Module, OPEB Module, and Software Management Services June 25, 2024
2 Inc. merged, in which GovInvest Inc. became the proprietor of Ad Astra and now governs the operations and usage of the software.

According to the agreement, the City of Compton shall also receive the added benefit of access to labor negotiation specialists to consult with during negotiations for assistance in specialized cost analysis.

The City has also received Actuarial Reports from GovInvest Inc. as well.

As of June 2024, this agreement will be expired.

STATEMENT OF ISSUE
In March 2024, staff issued a Request for Proposal (RFP) for Labor Costing Platform Services with Optional Actuarial Reporting. The City received no responses to the RFP. Considering the satisfactory performance GovInvest Inc. has provided the City, staff contacted GovInvest Inc. for a new contract agreement to be effective after June 2024, as the prior agreement expires on June 30, 2024.

GovInvest Inc. has been instrumental in enhancing the City of Compton's financial and operational capabilities through a variety of tailored services and software solutions. Some of their key comprehensive services have included the following:
Conducted an educational workshop for the Council on the status of Pension and OPEB (Other Post-Employment Benefits) funding, outlining strategies to mitigate costs effectively.
Provided general treasury consulting aimed at enhancing near-term operating portfolio revenue, supporting the City's financial stability.
For Pension and Retiree health plan costs, GovInvest Inc. offered a range of redesigned plan options and benefit prefunding strategies. These are designed to leverage investment earnings to substantially lower retirement costs over the long term without necessitating changes to existing plan benefits.
GovInvest Inc. has provided crucial compliance support to the City of Compton through the delivery of GASB 68 and GASB 75 reports. These reports are essential for adhering to government accounting standards, specifically relating to pensions (GASB 68) and other post-employment benefits (OPEB) under GASB 75. The reports provide a clear, actuarially calculated perspective on the City's pension and OPEB liabilities, which is vital for accurate financial disclosure, planning, and transparency. GovInvest Inc.'s labor and benefit design cost modeling tools have been crucial in supporting City staff during negotiation processes. It provided robust data-driven insight that helped in making informed decisions. Their platform enabled detailed modeling and scenario analysis for budgeting and Union negotiations, effectively aligning the City’s financial management strategies with its long-term goals.

GovInvest Inc. has provided expertise on labor costing systems and functionality that is Staff Report – Resolution Authorizing Agreement
GovInvest Inc. Consulting Services for Pension Module, OPEB Module, and Software Management Services June 25, 2024
3 uniquely customized for the City. The City relies on the services of GovInvest to continue with upgrading the modules and creating efficiencies in labor costing, which is needed for developing forecasting models that will assist in labor negotiations and budget matters.

The project for enhancing and upgrading the City of Compton's Labor Costing Module represents a vital move towards efficient and streamlined labor cost management. It aims to create a unified citywide build, enhancing capabilities for complex analysis across various bargaining units and providing critical insights for negotiations with multiple unions.

For GovInvest Inc. to continue providing their services, the cost to the City for a three (3) year term will be One Hundred Seventy Thousand Two Hundred Ninety-Two Dollars and Twenty- One Cents ($170,292.21), and Fifty-Six Thousand Seven Hundred Sixty-Four Dollars and Seven Cents ($56,764.07) annual fixed cost for the comprehensive services of upgrading the Labor Costing Module, Pension Module, OPEB Module, and Managed Services, upon the commencement of the agreement by June 30, 2024. If the commencement of the agreement occurs after June 30, 2024, a CPI (Consumer Price Index) of 3% will be applied.

The yearly prices by June 30, 2024 commencement of the agreement are as follows:

Year 1- $56,764.07
Year 2- $56,764.07
Year 3- $56,764.07
Year 4- $56,764.07 (Optional)
Year 5- $56,764.07 (Optional)
Total (Yrs. 1-3) – $170,292.21
Total (Including Optional Yrs.) – $283,820.35
The yearly prices after June 30, 2024 are as follows (CPI of 3% applied for years 2-5):

Year 1- $56,764.07
Year 2- $58,467.00
Year 3- $60,221.01
Year 4- $62,027.64 (Optional)
Year 5- $63,888.46 (Optional)
Total (Yrs. 1-3) – $175,452.08
Total (Including Optional Yrs.) – $301,368.18
*Please see Exhibit A for cost breakdown
Staff is requesting authorization be given to enter into a multi-year agreement with GovInvest Inc. for upgrading the Labor Costing Module, Pension Module, OPEB Module, and GASB Reporting Services, and to open a Purchase Order in the amount of Fifty-Six Thousand Seven Hundred Sixty-Four Dollars and Seven Cents ($56,764.07) for the first year of services provided by GovInvest Inc.

Staff Report – Resolution Authorizing Agreement
GovInvest Inc. Consulting Services for Pension Module, OPEB Module, and Software Management Services June 25, 2024
4 FISCAL IMPACT
Funding for GovInvest Inc.’s comprehensive services is currently budgeted in the Fiscal Year 2023-2024 budget in account 1001-650-000-4222 (General Fund-Computer Software) in the City Controller’s Office. Therefore, staff is requesting authorization to open a Purchase Order to pay for module upgrading services and reporting provided by GovInvest Inc. in the amount of Fifty-Six Thousand Seven Hundred Sixty-Four Dollars and Seven Cents ($56,764.07) for the first year of services.

Funding for future services will be allocated in future City budgets.

ALTERNATIVE
As of June 30, 2024, the contract for software services provided by GovInvest Inc. will be expired. GovInvest Inc.’s software is important for the City’s Labor Costing, Pension, and OPEB Actuarial Service and Calculation operations. These City operations may be affected without GovInvest Inc’s services and delays in deliverables for financial reporting could occur.

RECOMMENDATION
Staff recommends that the City Council adopt the attached Resolution to authorize the City Manager to enter into a multi-year agreement with GovInvest Inc. for upgrading the Labor Costing Module, Pension Module, OPEB Module, and GASB Reporting Services, and to open a Purchase Order for GovInvest Inc.

SHARON RAHBAN NAVIZADEH

CITY CONTROLLER
APPROVED FOR FORWARDING:

WILLIE A. HOPKINS JR.

CITY MANAGER
RESOLUTION NO. _________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

COMPTON AUTHORIZING THE CITY MANAGER TO ENTER INTO A MULTI-YEAR AGREEMENT WITH GOVINVEST INC. FOR PROFESSIONAL SOFTWARE MANAGEMENT SERVICES FOR UPGRADING THE CITY’S LABOR COSTING

MODULE, PENSION MODULE, OPEB MODULE, AND GASB REPORTING SERVICES ($170,292.21), AND TO ISSUE A PURCHASE ORDER ($56,764.07) FOR THE FIRST YEAR OF SERVICES.

WHEREAS, in 2019, pursuant to Resolution 25,076, the City Council authorized the City Manager to enter into a five (5) year service agreement from July 2019 through June 2024 with GovInvest to provide software services that the City uses to determine labor cost; and
WHEREAS, at the time of the agreement, GovInvest, through a software programming subsidiary, Ad Astra, agreed to provide the City with programming and licensing services; and
WHEREAS, in 2021, Ad Astra and GovInvest merged, in which GovInvest became the proprietor of Ad Astra and now governs the operations and usage of the software ; and
WHEREAS, by using Govinvest Inc., the City of Compton also received the added benefit of access to labor negotiation specialists to consult on usage of the product during negotiations for assistance in specialized cost analysis; and WHEREAS, as of June 2024, the agreement, which was approved with Resolution #25,076, will be exhausted; and
WHEREAS, in March 2024, staff issued a Request for Proposal (RFP) for Labor Costing Platform Services with Optional Actuarial Reporting. The City received no responses to the RFP; and
WHEREAS, considering the satisfactory performance GovInvest Inc. has provided the City, staff contacted GovInvest Inc. for a new contract agreement after June 2024; and
WHEREAS, GovInvest Inc. has provided expertise on labor costing systems and functionality that is uniquely customized for the City. The City relies on the services of GovInvest to continue with upgrading the modules and creating efficiencies in labor costing, which is needed for developing forecasting models that will assist in labor negotiations and budget matters; and
WHEREAS, for GovInvest Inc. to continue providing their services, the cost to the City for a three (3) year term will be One Hundred Seventy Thousand Two Hundred Ninety-Two Dollars and Twenty-One Cents ($170,292.21), and Fifty-Six Thousand Seven Hundred Sixty-Four Dollars and Seven Cents ($56,764.07) annual fixed cost for the comprehensive services of upgrading the Labor Costing Module, Pension Module, OPEB Module, and Managed Services, upon the commencement of the agreement by June 30, 2024. If the commencement of the agreement occurs after June 30, 2024, a CPI (Consumer Price Index) of 3% will be applied.

The quoted yearly prices if commencement of the agreement by June 30, 2024 are as follows:

Year 1- $56,764.07
Year 2- $56,764.07
Year 3- $56,764.07
Year 4- $56,764.07 (Optional)
Year 5- $56,764.07 (Optional)
Resolution No. _______

Page 2 ends

2 Total (Yrs. 1-3) – $170,292.21
Total (Including Optional Yrs.) – $283,820.35
The yearly prices are as follows (CPI of 3% applied for years 2-5):

Year 1- $56,764.07
Year 2- $58,467.00
Year 3- $60,221.01
Year 4- $62,027.64 (Optional)
Year 5- $63,888.46 (Optional)
WHEREAS, funding for GovInvest Inc.’s comprehensive services is currently budgeted in the Fiscal Year 2023-2024 budget in account 1001-650-000-4222 (General Fund-Computer Software) in the City Controller’s Office. Therefore, staff is requesting authorization to open a Purchase Order to pay for module upgrading services and reporting provided by GovInvest Inc. in the amount of Fifty-Six Thousand Seven Hundred Sixty-Four Dollars and Seven Cents ($56,764.07) for the first year of services; and WHEREAS, funding for future services will be allocated in future City budgets; and
WHEREAS, alternatively, as of June 30, 2024, the contract for software services provided by GovInvest Inc. will be expired. GovInvest Inc.’s software is important for the City’s Labor Costing, Pension, and OPEB Actuarial Service and Calculation operations. These City operations, including the possibility of experiencing delays in financial reporting of these transactions, may be affected without GovInvest Inc.’s services and delays in deliverables for financial reporting could occur; and
WHEREAS, staff recommends that the City Council adopt the attached Resolution to authorize the City Manager to enter into a multi-year agreement with GovInvest Inc. for upgrading the Labor Costing Module, Pension Module, OPEB Module, and GASB Reporting Services, and to open a Purchase Order for GovInvest Inc.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COMPTON DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. That the City Manager is hereby authorized to enter into a multi- year agreement with GovInvest Inc. for upgrading the Labor Costing Module, Pension Module, OPEB Module, and GASB Reporting Services for the City in an amount not-to- exceed One Hundred Seventy Thousand Two Hundred Ninety-Two Dollars and Twenty- One Cents ($170,292.21).

SECTION 2.That a Purchase Order shall be issued to GovInvest from Account Number 1001-650-000-4222 (General Fund-Computer Software) in the Controller’s Department in the amount of Fifty-Six Thousand Seven Hundred Sixty-Four Dollars and Seven Cents ($56,764.07) for the first year of services.

SECTION 4. That a copy of this Resolution shall be filed in the offices of the City Clerk, City Attorney, City Manager, and City Controller.

SECTION 5.That the Mayor shall sign and the City Clerk shall attest to the adoption of this Resolution.

Resolution No. _______

Page 3 ends

3 ADOPTED this ____________ day of _____________, 2024. ________________________________

MAYOR OF THE CITY OF COMPTON
ATTEST:
________________________________

CLERK OF THE CITY OF COMPTON

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss

That said Resolution was adopted by the following vote, to wit:

AYES: COUNCILMEMBERS -
NOES: COUNCILMEMBERS -
ABSTAIN: COUNCILMEMBERS -
ABSENT: COUNCILMEMBERS -
____________________________________

CITY CLERK OF THE CITY OF COMPTON

EXHIBIT A

The annual cost for the agreement will be the following if the agreement is commenced by June 30, 2024:

Product Annual
Cost

SUB-TOTAL
(YRS. 1-3)
Yr. 4 Opt
Sub-Total
(Years 1-4)
Yr. 5 Opt
Sub-Total
(Years 1-5)
Labor Costing Module $16,192.86 $48,578.58 $64,771.44 $80,964.30 Pension Module & Annual GASB 68 Footnote Disclosure $13,007.00 $39,021.00 $52,028.00 $65,035.00 OPEB Module & Annual GASB 75 Valuation with Footnote $20,564.21 $61,564.21 $82,256.84 $102,821.05 Annual Pension, OPEB and Treasury Managed Services $7,000.00 $21,000.00 $28,000.00 $35,000.00 Total $56,764.07 $170,292.21 $199,056.28 $283,820.35
The annual cost for the agreement will be the following if the agreement is commenced after June 30, 2024:

Note: If the agreement is commenced after June 30, 2024, GovInvest’s services will approximately cost an additional $5,160 for Years 1-3, $10,423 for the optional 4th year, and $17,548 for the optional 5th year.

Product Year 1 Year 2 Year 3 Sub-Total
(Yrs.1-3)
Year 4 (Opt) Year 5 (Opt) Total
(Yrs.1-5)
Labor Costing Module $16,192.86 $16,678.65 $17,179.01 $50,050.52 $17,694.38 $18,225.21 $85,970.11 Pension Module & Annual
GASB 68 Footnote Disclosure $13,007.00 $13,397.21 $13,799.13 $40,203.34 $14,213.10 $14,639.49 $69,055.93 OPEB Module & Annual GASB
75 Valuation with Footnote $20,564.21 $21,181.14 $21,816.57 $63,561.92 $22,471.07 $23,145.20 $109,178.19 Annual Pension, OPEB and
Treasury Managed Services $7,000.00 $7,210.00 $7,426.30 $21,636.30 $7,649.09 $7,878.56 $37,163.95 Total $56,764.07 $58,467.00 $60,221.01 $175,452.08 $62,027.64 $63,888.46 $301,368.18

City of Compton

GASB 75 Disclosures for Fiscal Year Ending June 30, 2022 Based on OPEB Valuation as of June 30, 2021

CONTACT
Nadine Pileggi, ASA, MAAA
[email protected]
(503) 799-4796

Version 1.0

City of Compton

Table of Contents
Actuarial Certification ................................................................................................................................................................ 1 Section 1: Executive Summary .................................................................................................................................................. 3 Section 2: Financial Disclosures ............................................................................................................................................... 6 Section 3: Projected Benefit Payments .................................................................................................................................. 12 Section 4: Substantive Plan Provisions ................................................................................................................................. 14 Section 5: Actuarial Methods and Assumptions ................................................................................................................... 17 Section 6: Participant Summary ............................................................................................................................................ 23 Appendix - Sample Decrement Rates .................................................................................................................................. 27 Appendix - Glossary ............................................................................................................................................................... 36

Actuarial Certification City of Compton

Page 1 ends

Actuarial Certification
Ms. Sharon Rahban
City of Compton
205 S Willowbrook Ave.

Compton, CA 90220

GovInvest has been engaged by City of Compton to complete an actuarial valuation of the City of Compton OPEB Plan as of June 30, 2021 which will be used as the basis of the financial accounting disclosure for fiscal year ending June, 30, 2022 in accordance with GASB Statement No. 75 (Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions).

The purpose of this report is to provide the City with the required information needed for financial statement disclosure purposes. The use of this report for any other purpose may not be appropriate. The content of this report may not be modified, reproduced, or provided to third parties, either in whole or in part, without our permission. GovInvest is not responsible for usage, inference, or misinterpretation of this report by third parties.

Results presented in this report are based on the census data, substantive plan provisions, and healthcare cost information provided by the City and/or their benefit consultants. All information provided has been reviewed for reasonableness and clarifications or corrections have been requested where appropriate. We have not audited the information at the source, and therefore, do not accept responsibility for the accuracy or completeness of the data on which the information is based. Assumptions made related to missing data have been identified in this report.

We are satisfied that the information provided is suitable and sufficient for the purpose of the measurement.

The valuation results were prepared using leased actuarial modeling software that produces results consistent with the purpose of this valuation and meet applicable regulatory requirements. The vendor is responsible for the development, maintenance, and improvement of these models.

The models include comprehensive technical documentations that outline how the calculations are performed along with sample life outputs that allow the users to confirm with high degree of accuracy how the programmed benefit is applied to an individual with the proposed decrements and other assumptions. The actuarial team loads the participant data, programs the benefit provisions and proposed assumptions into the model and review sample life outputs and results under the supervision of credentialed actuaries who are proficient users of the software.

We are not aware of any material limitations in the model nor any material inconsistencies in the assumptions used within the model.

Actuarial Certification City of Compton

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The discount rate, other economic, and demographic assumptions have been selected by the City with our recommendations and concurrence.

We believe each assumption is reasonable based on its own merits and in combination represents reasonable expected experience of the Plan.

All calculations have been completed in accordance with generally accepted actuarial principles and practices.

Future actuarial measurements may differ significantly from current measurements due to factors such as actual plan experience that differs from that anticipated by the economic and demographic assumptions as well as changes in future assumptions, substantive plan provisions, and/or applicable law. We have not analyzed the potential range of such differences due to the limited scope of our engagement. To our knowledge, there are no significant events prior to the current year’s Measurement Date or as of the date of this report that may materially affect the results presented herein.

The undersigned meets the General Qualification Standards of the American Academy of Actuaries for the purpose of issuing Statement of Actuarial Opinion in the United States. Neither GovInvest nor any of its employees have any relationship with the Plan Sponsor that could impair or appear to impair the objectivity of this report.

Nadine Pileggi, ASA, MAAA
December 13, 2023

Executive Summary City of Compton

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Section 1: Executive Summary
City of Compton (the “City”) sponsors a single-employer defined benefit OPEB plan that provides medical and prescription drug coverage at retirement. Employees may continue health coverage with the City at retirement for themselves, their spouses, and dependents for life once they meet certain eligibility requirements and as long as required contributions are made.

The results presented in this report are based on the June 30, 2021 valuation with liabilities and assets measured as of June 30, 2021, for use in the City’s accrual-based financial statement for the fiscal year ending June 30, 2022. The City has elected to use the GASB 75 “lookback” method where assets and liabilities are measured as of the prior fiscal year-end but applied to the current fiscal year. The June 30, 2021 valuation uses census data of (a) active employees who will be eligible to receive benefits in the future and (b) existing retirees who are currently receiving these benefits as of June 30, 2021, as well as healthcare cost information effective on January 1, 2021 provided by the Plan Sponsor and/or their healthcare consultant.

The actuarial valuation is based on substantive plan provisions outlined in Section 4. The valuation requires assumptions which are listed in Section 5. Results from the June 30, 2021 valuation may be rolled-forward for use in the Plan Sponsor’s accrual-based financial statement disclosure for the fiscal year ending June 30, 2023 assuming that there are no material changes to the substantive plan provisions and/or the covered population.

The Plan Sponsor’s next full valuation is as of June 30, 2023 with liabilities and assets measured as of June 30, 2023 for reporting in the Plan Sponsor’s accrual-based financial statements for the fiscal year ending June 30, 2024.

Changes Since Prior Valuation
The City’s Net OPEB Liability has decreased from $169,528,269 as of June 30, 2020 to $160,603,184 as of June 30, 2021, which is attributable to a combination of the following factors:

1. Favorable actual demographic experience and lower healthcare cost increase than expected that caused a liability decrease.

2. Assumption changes as outlined in Section 5 that produced a net liability increase.

Executive Summary City of Compton

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Summary of Results
Presented below is the summary of results for the current fiscal year compared to the prior fiscal year.

Fiscal Years 2021/22 2020/21
Valuation Date (VD) June 30, 2021 June 30, 2019
Measurement Date (MD) June 30, 2021 June 30, 2020

Membership Data as of Valuation Date
Inactive employees or beneficiaries currently receiving benefits 426 433 Inactive employees entitled to but not yet receiving benefits 0 0 Active employees 275 332
Total membership 701 765

Discount Rate at Measurement Date
Municipal Bond Index Rate 1.92% 2.45%
Long-term Expected Asset Return 0.00% 0.00%
Year in which Fiduciary Net Position is projected to be depleted N/A N/A Single Equivalent Discount Rate (SEDR) 1.92% 2.45%

Net OPEB Liability as of Measurement Date
Total OPEB Liability (TOL) $ 160,603,184 $ 169,528,269 Fiduciary Net Position (FNP) (0) (0)
Net OPEB Liability (NOL = TOL – FNP) $ 160,603,184 $ 169,528,269 Funded Status (FNP / TOL) 0.0% 0.0%

OPEB Expense / (Income) by Fiscal Year $ 12,101,973 $ 12,698,978 Balance of unamortized Deferred Inflows at MD $ (27,502,438) $ (1,543,726) Balance of unamortized Deferred Outflows at MD1 $ 34,084,033 $ 18,757,843

1 For FY 2020/21, this amount excludes employer contribution subsequent to the measurement date since the City’s Annual Comprehensive Financial Report for FYE June 30, 2021 has not yet been released as of this writing and this information is also not available from the City of Compton GASB 75 OPEB Valuation Report measured as of June 30, 2020 for FYE June 30, 2021 disclosure prepared by Van Iwaarden Associates dated 12/8/2021.

Executive Summary City of Compton

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Below is a breakdown of the OPEB liability allocated to past and current service as of the Measurement Date compared to the prior Measurement Date. The liability below includes explicit subsidy (if any) and implicit subsidy. Refer to the Substantive Plan Provisions section for complete information on the City benefit provisions.

Present Value of Future Benefits (PVFB) As of June 30, 2021 As of June 30, 20202 Active employees $ 122,020,645 $ 128,948,365
Retired employees 104,799,189 102,123,013
Total PVFB $ 226,819,834 $ 231,071,378

Total OPEB Liability (TOL) As of June 30, 2021 As of June 30, 20202 Active employees $ 55,803,995 $ 67,405,256
Retired employees 104,799,189 102,123,013
Total TOL $ 160,603,184 $ 169,528,269

As of June 30, 2021 As of June 30, 2020
Discount Rate 1.92% 2.45%

2 PVFB and TOL split between active and retired employees have been estimated based on the 6/30/2020 Total OPEB Liability shown in the City of Compton GASB 75 OPEB Valuation Report measured as of June 30, 2020 for FYE June 30, 2021 disclosure prepared by Van Iwaarden Associates dated 12/8/2021. $104.8$102.1$55.8$67.4$66.2$61.5$0$50$100$150$200$250As of 6/30/2021(1.92% DR)As of 6/30/2020(2.45% DR)MillionsOPEB Liability Breakdown ($) Active future service(PVFNC)Active past service (TOL)Retirees

46.2%44.2%24.6%29.2%29.2%26.6%0%20%40%60%80%100%As of 6/30/2021(1.92% DR)As of 6/30/2020(2.45% DR)OPEB Liability Breakdown (%) Financial Disclosures City of Compton

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Section 2: Financial Disclosures
This section provides the necessary accounting disclosures for the City’s financial reports as shown in the following tables:

Table 1: Plan Demographics Table 5: Net OPEB Liability Sensitivity (Healthcare Trend Rates) Table 2: Brief Summary of Assumptions Table 6: Historical Deferred Inflows and Outflows Table 3: OPEB Expense Table 7: Unamortized Balance of Deferred Inflows and Outflows Table 4: Net OPEB Liability Sensitivity (Discount Rate) Table 8: Schedule of Future Amortization of Deferred Inflows and Outflows

Summary of Membership and Assumptions
The table below shows the number of employees
covered by the benefit terms as of June 30, 2021.

Table 1 - Plan Demographics
Inactive employees or beneficiaries
currently receiving benefits 426
Inactive employees entitled to but not yet
receiving benefits 0
Active employees 275
Total membership 701

The Total OPEB Liability (TOL) as of June 30, 2021 was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified. For a complete list of assumptions, refer to Section 5.

Table 2 - Brief Summary of Assumptions
Inflation 2.50%
Payroll growth

2.80% wage inflation plus seniority, merit, and
promotion salary increases based on CalPERS
Experience Study and Review of Actuarial
Assumptions published in November 2021
Investment rate of return N/A; OPEB plan is unfunded
Discount rate 1.92%
Healthcare trend rates
Based on 2021 Getzen model that reflects actual
premium increases from 2021 to 20223 followed by

5.75% (non-Medicare) / 5.40% (Medicare) in 2022,
decreasing gradually to an ultimate rate of 4.04%

3 Actual premium increases from 2021 to 2022 used in the valuation are as follows: (a) Actives: 3.40% non-Medicare / -3.10% Medicare and (b) Retirees: 3.60% non-Medicare under 65 retirees / 2.30% Medicare ineligible retirees / -3.40% Medicare.

Financial Disclosures City of Compton

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OPEB Expense
The table below shows a comparison of the OPEB Expense recognized by the City for the current and prior fiscal years.

Table 3 - OPEB Expense
Fiscal Years 2021/22 2020/21
SEDR as of beginning of year 2.45% 3.13%
SEDR as of end of year 1.92% 2.45%

Service Cost $ 5,636,782 $ 4,575,441
Interest on TOL and Service Cost 4,226,872 4,744,124 Changes of benefit terms 0 0
Projected earnings on OPEB Plan investments 0 0
OPEB Plan administrative expenses net of all revenues 0 0

Current period recognition of Deferred Inflows /
Outflows of Resources
Difference between expected and actual
experience in the TOL $ (8,414,357) $ 683,231
Changes of assumptions or other inputs 10,652,676 2,696,182 Net difference between the projected and actual
earnings on OPEB Plan investments 0 0
Other 0 0
Total current period recognition $ 2,238,319 $ 3,379,413

OPEB Expense $ 12,101,973 $ 12,698,978
Financial Disclosures City of Compton

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Schedule of Changes in Net OPEB Liability
Fiscal Year Ending June 30 2022 2021 2020 2019 2018 Measurement Period Ending June 30 2021 2020 2019 2018 2017 Total OPEB Liability (TOL)
Service Cost $ 5,636,782 $ 4,575,441 $ 3,785,637 $ 3,731,074 $ 4,163,800 Interest on TOL and Service Cost 4,226,872 4,744,124 4,858,489 4,730,536 4,156,698 Changes of benefit terms 0 0 0 0 0
Difference between expected &
actual experience (36,390,352) (135,090) 2,970,500 0 0 Changes of assumptions or other
inputs 22,913,092 15,907,862 9,929,633 (2,374,728) (12,626,584) Benefit payments (5,311,479) 4 (5,116,139) (4,837,893) (4,780,662) (4,686,600) Net change in TOL $ (8,925,085) $ 19,976,198 $ 16,706,366 $ 1,306,220 $ (8,992,686) TOL – beginning $ 169,528,269 $ 149,552,071 $ 132,845,705 $ 131,539,485 $ 140,532,171 TOL – ending $ 160,603,184 $ 169,528,269 $ 149,552,071 $ 132,845,705 $ 131,539,485

Plan Fiduciary Net Position (FNP)
Contributions – employer $ 5,311,479 $ 5,116,139 $ 4,837,893 $ 4,780,662 $ 4,686,600 Contributions – employees 0 0 0 0 0
Benefit payments (5,311,479) (5,116,139) (4,837,893) (4,780,662) (4,686,600) Net investment income 0 0 0 0 0
Trust administrative expenses 0 0 0 0 0 Net change in Plan FNP $ 0 $ 0 $ 0 $ 0 $ 0 FNP – beginning $ 0 $ 0 $ 0 $ 0 $ 0
FNP – ending $ 0 $ 0 $ 0 $ 0 $ 0

Net OPEB Liability – ending $ 160,603,184 $ 169,528,269 $ 149,552,071 $ 132,845,705 $ 131,539,485

FNP as % of TOL 0.0% 0.0% 0.0% 0.0% 0.0% Covered payroll – measurement
period $ 19,259,800 $ 27,932,602 $ 24,225,987 $ 21,348,829 $ 21,284,889 NOL as % of covered payroll 833.9% 606.9% 617.3% 622.3% 618.0%

4 Based on explicit benefit payment of $3,942,226 and estimated implicit subsidy payment of $1,369,253.

Financial Disclosures City of Compton

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Net OPEB Liability Sensitivity
The following presents the Net OPEB Liability of the City, as well as what the City’s Net OPEB Liability would be if it were calculated using a discount rate that is 1-percentage-point lower or 1-percentage-point higher than the current discount rate as of June 30, 2021.

Table 4 - Net OPEB Liability Sensitivity (Discount Rate) 1% Decrease
(0.92%) Discount Rate
(1.92%) 1% Increase
(2.92%)
Net OPEB Liability / (Asset) $ 188,550,324 $ 160,603,184 $ 138,454,823

The following presents the Net OPEB Liability of the City, as well as what the City’s Net OPEB Liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates as of June 30, 2021.

Table 5 - Net OPEB Liability Sensitivity (Healthcare Trend Rates) 1% Decrease Healthcare Trend Rates5 1% Increase
Net OPEB Liability / (Asset) $ 136,738,670 $ 160,603,184 $ 191,082,844

5 Comparison of Baseline, 1% Decrease, and 1% Increase in healthcare trend rates assumptions are as shown below:

Groups 1% Decrease Baseline 1% Increase
Active

2.40% non-Medicare / -4.10% Medicare followed by

4.75% non-Medicare / 4.40% Medicare in 2022,
decreasing to 3.04% ultimate rate

3.40% non-Medicare / -3.10% Medicare followed by

5.75% non-Medicare / 5.40% Medicare in 2022,
decreasing to 4.04% ultimate rate

4.40% non-Medicare / -2.10% Medicare followed by

6.75% non-Medicare / 6.40% Medicare in 2022,
decreasing to 5.04% ultimate rate
Retiree

2.60% non-Medicare / -4.40% Medicare followed by

4.75% non-Medicare / 4.40% Medicare in 2022,
decreasing to 3.04% ultimate rate

3.60% non-Medicare / -3.40% Medicare followed by

5.75% non-Medicare / 5.40% Medicare in 2022,
decreasing to 4.04% ultimate rate

4.60% non-Medicare / -2.40% Medicare followed by

6.75% non-Medicare / 6.40% Medicare in 2022,
decreasing to 5.04% ultimate rate

Financial Disclosures City of Compton

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Deferred Inflows and Deferred Outflows of Resources Related to OPEB The tables below show changes in the Net OPEB Liability that have not been included in the OPEB expense for the following items:

1. Differences between expected and actual experience of the OPEB plan

2. Changes in assumptions

3. Differences between projected and actual earnings on the OPEB plan investments The initial amortization base for the first two items above are amortized linearly over the average expected remaining service lives of active and inactive employees. The difference between projected and actual earnings on the OPEB plan investments is amortized linearly over five years.

Table 6 - Historical Deferred Inflows and Outflows
Differences between expected and actual experience
Measurement
Period Ending
Fiscal Year
Ending Initial Balance
Initial
Amortization
Period
Annual Recognition
Recognized in OPEB
Expense through
June 30, 2021
Unamortized Balance
as of June 30, 2021
6/30/2017 6/30/2018 $ 0 N/A $ 0 $ 0 $ 0
6/30/2018 6/30/2019 $ 0 N/A $ 0 $ 0 $ 0
6/30/2019 6/30/2020 $ 2,970,500 4.15 $ 715,783 $ 2,147,349 $ 823,151 6/30/2020 6/30/2021 $ (135,090) 4.15 $ (32,552) $ (65,104) $ (69,986) 6/30/2021 6/30/2022 $ (36,390,352) 4.00 $ (9,097,588) $ (9,097,588) $ (27,292,764)

Changes in assumptions or other inputs
Measurement
Period Ending
Fiscal Year
Ending Initial Balance
Initial
Amortization
Period
Annual Recognition
Recognized in OPEB
Expense through
June 30, 2021
Unamortized Balance
as of June 30, 2021
6/30/2017 6/30/2018 $ (12,626,584) 4.25 $ (742,740) $ (12,626,584) $ 0 6/30/2018 6/30/2019 $ (2,374,728) 4.25 $ (558,760) $ (2,235,040) $ (139,688) 6/30/2019 6/30/2020 $ 9,929,633 4.15 $ 2,392,683 $ 7,178,049 $ 2,751,584 6/30/2020 6/30/2021 $ 15,907,862 4.15 $ 3,833,220 $ 7,666,440 $ 8,241,422 6/30/2021 6/30/2022 $ 22,913,092 4.00 $ 5,728,273 $ 5,728,273 $ 17,184,819 Financial Disclosures City of Compton

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Differences between projected and actual earnings on OPEB plan investments Measurement
Period Ending
Fiscal Year
Ending Initial Balance
Initial
Amortization
Period
Annual Recognition
Recognized in OPEB
Expense through
June 30, 2021
Unamortized Balance
as of June 30, 2021
6/30/2017 6/30/2018 $ 0 5.00 $ 0 $ $ 0
6/30/2018 6/30/2019 $ 0 5.00 $ 0 $ $ 0
6/30/2019 6/30/2020 $ 0 5.00 $ 0 $ $ 0
6/30/2020 6/30/2021 $ 0 5.00 $ 0 $ $ 0
6/30/2021 6/30/2022 $ 0 5.00 $ 0 $ $ 0

The table below shows the unamortized balance of Deferred Inflows and Outflows of Resources as of June 30, 2021 for financial statement disclosure for the fiscal year ending June 30, 2022.

Table 7 - Unamortized Balance of Deferred Inflows and Outflows Deferred Outflows
of Resources
Deferred Inflows of
Resources
Differences between expected and
actual experience $ 823,151 $ (27,362,750)
Changes in assumptions or other inputs 28,177,825 (139,688) Net difference between projected and
actual earnings on OPEB plan
investments
0 0
Employer contribution subsequent to the
Measurement Date 5,083,057 6 0
Total $ 34,084,033 $ (27,502,438)

Schedule of future annual amortizations of
Deferred Inflows and Outflows that will be
recognized in future OPEB expense is as
shown below.

Table 8 - Schedule of Future Deferred Inflows and
Outflows Amortization
Measurement
Period Ending Amounts
2022 $ 3,400,131
2023 $ 897,622
2024 $ (2,799,215)
2025 $ 0
2026 $ 0
Thereafter $ 0

6 Based on actual benefit payment of $5,083,057 (including implicit subsidy credit).

Projected Benefit Payments City of Compton

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Section 3: Projected Benefit Payments
The below table shows the projected benefit payments for the next 30 years for a closed group of participants (both active employees and existing retirees) who are included in the census data as of June 30, 2021. This exhibit is provided for informational purposes only and is not a required disclosure under GASB 75. Projected benefit payments below include both explicit (if any) and implicit subsidies (as applicable).

FYE Future
Retirees
Current
Retirees Total7 FYE Future
Retirees
Current
Retirees Total FYE Future
Retirees
Current
Retirees Total
2022 $ 249,612 $ 4,833,445 $ 5,083,057 2032 $ 2,610,335 $ 4,588,539 $ 7,198,874 2042 $ 4,562,153 $ 3,809,829 $ 8,371,982 2023 $ 530,657 $ 4,849,494 $ 5,380,151 2033 $ 2,806,805 $ 4,557,390 $ 7,364,195 2043 $ 4,631,518 $ 3,658,805 $ 8,290,323 2024 $ 789,587 $ 4,912,835 $ 5,702,422 2034 $ 3,128,363 $ 4,536,862 $ 7,665,225 2044 $ 4,853,702 $ 3,519,880 $ 8,373,582 2025 $ 1,053,413 $ 4,871,476 $ 5,924,889 2035 $ 3,258,876 $ 4,518,606 $ 7,777,482 2045 $ 4,945,413 $ 3,369,532 $ 8,314,945 2026 $ 1,271,984 $ 4,876,485 $ 6,148,469 2036 $ 3,400,219 $ 4,381,744 $ 7,781,963 2046 $ 5,021,349 $ 3,209,576 $ 8,230,925 2027 $ 1,489,155 $ 4,845,432 $ 6,334,587 2037 $ 3,625,128 $ 4,255,013 $ 7,880,141 2047 $ 5,162,470 $ 3,036,968 $ 8,199,438 2028 $ 1,703,168 $ 4,789,420 $ 6,492,588 2038 $ 3,855,551 $ 4,215,135 $ 8,070,686 2048 $ 5,123,735 $ 2,857,449 $ 7,981,184 2029 $ 1,937,949 $ 4,767,293 $ 6,705,242 2039 $ 3,925,937 $ 4,129,706 $ 8,055,643 2049 $ 5,202,371 $ 2,619,931 $ 7,822,302 2030 $ 2,149,564 $ 4,759,433 $ 6,908,997 2040 $ 4,120,201 $ 4,034,164 $ 8,154,365 2050 $ 5,228,484 $ 2,434,970 $ 7,663,454 2031 $ 2,400,559 $ 4,634,865 $ 7,035,424 2041 $ 4,374,198 $ 3,928,499 $ 8,302,697 2051 $ 5,250,748 $ 2,252,390 $ 7,503,138

7 Total benefit payment for FYE 6/30/2022 is based on explicit benefit payment of $3,812,791 and estimated implicit subsidy payment of $1,270,266. The benefit payment split between future and existing retirees has been estimated by our valuation software. $0$3$6$92022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050MillionsProjected Benefit PaymentsCurrent RetireesFuture Retirees Projected Benefit Payments City of Compton

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The following table splits the projected benefit payments for the next 30 years between the explicit and implicit subsidies for a closed group of participants (both active employees and existing retirees) who are included in the census data as of June 30, 2021.

FYE Explicit8 Implicit Total FYE Explicit Implicit Total FYE Explicit Implicit Total 2022 $ 3,812,791 $ 1,270,266 $ 5,083,057 2032 $ 5,432,663 $ 1,766,211 $ 7,198,874 2042 $ 6,590,695 $ 1,781,287 $ 8,371,982 2023 $ 4,059,326 $ 1,320,825 $ 5,380,151 2033 $ 5,569,167 $ 1,795,028 $ 7,364,195 2043 $ 6,623,458 $ 1,666,865 $ 8,290,323 2024 $ 4,280,715 $ 1,421,707 $ 5,702,422 2034 $ 5,773,032 $ 1,892,193 $ 7,665,225 2044 $ 6,707,202 $ 1,666,380 $ 8,373,582 2025 $ 4,453,569 $ 1,471,320 $ 5,924,889 2035 $ 5,889,668 $ 1,887,814 $ 7,777,482 2045 $ 6,736,469 $ 1,578,476 $ 8,314,945 2026 $ 4,627,108 $ 1,521,361 $ 6,148,469 2036 $ 5,932,270 $ 1,849,693 $ 7,781,963 2046 $ 6,739,219 $ 1,491,706 $ 8,230,925 2027 $ 4,768,844 $ 1,565,743 $ 6,334,587 2037 $ 6,033,046 $ 1,847,095 $ 7,880,141 2047 $ 6,768,228 $ 1,431,210 $ 8,199,438 2028 $ 4,904,455 $ 1,588,133 $ 6,492,588 2038 $ 6,178,357 $ 1,892,329 $ 8,070,686 2048 $ 6,697,131 $ 1,284,053 $ 7,981,184 2029 $ 5,061,749 $ 1,643,493 $ 6,705,242 2039 $ 6,246,322 $ 1,809,321 $ 8,055,643 2049 $ 6,645,876 $ 1,176,426 $ 7,822,302 2030 $ 5,200,524 $ 1,708,473 $ 6,908,997 2040 $ 6,361,950 $ 1,792,415 $ 8,154,365 2050 $ 6,586,579 $ 1,076,875 $ 7,663,454 2031 $ 5,313,560 $ 1,721,864 $ 7,035,424 2041 $ 6,499,142 $ 1,803,555 $ 8,302,697 2051 $ 6,519,617 $ 983,521 $ 7,503,138

8 Explicit benefit payment for FYE 6/30/2022 is based on the actual retiree healthcare expenses paid by the City. $0$3$6$92022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050MillionsProjected Benefit Payments (Explicit/Implicit)ExplicitImplicit Substantive Plan Provisions City of Compton

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Section 4: Substantive Plan Provisions
Changes Since Prior Valuation
There are no plan provision changes since the last full valuation.

Eligibility Employees are eligible for lifetime retiree health benefits once they retire within 120 days from date of separation and the retiree must be receiving benefits from California Public Employees Retirement System (CalPERS) 9.

CalPERS eligibility requirements for disability benefits are as follows:
 Ordinary Disability: five years of service
 Line of Duty Disability: no age or service requirement

Spouse Benefits Employees are allowed to elect spousal coverage at retirement. Retiree health coverage continues to surviving spouses (including employer subsidy) upon death of retirees and active employees who are eligible to retire at the time of death. City contribution towards surviving child dependents is also available, if they were enrolled in the plan prior to the retiree’s death. There is no surviving spouse coverage upon the death of active employees who are not eligible to retire at the time of death.

Employer Subsidy The City provides a contribution up to the CalPERS Region 3 Kaiser Basic (non-Medicare) family premium, regardless of the coverage level (single, 2-party, or family) or the enrollment level (non-Medicare, Medicare, or split). The Kaiser family monthly premiums are $1,741.58 in 2021 and $1,871.43 in 2022.

Ancillary Benefits There is no City-subsidized dental, vision, or life insurance benefit at retirement.

Retiree Contributions Retirees are required to contribute the portion of premium rates not covered by the Employer Subsidy.

9 Service Retirement Eligibility: Age 50 with 5 years of service for Miscellaneous members entering before 1/1/2013 and all Safety members; Age 52 with 5 years of service for Miscellaneous members entering on or after 1/1/2013. Note that service includes service across all CalPERS employers and with other retirement systems with which CalPERS has reciprocity agreements.

Substantive Plan Provisions City of Compton

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Premium Rates The monthly CalPERS non-Medicare premium rates used in the valuation effective on January 1, 2021 are as shown below.

Regions Non-Medicare Plans Single 2-Party Family
Region 1 PERS Choice $ 935.84 $ 1,871.68 $ 2,433.18
Region 2
BS Access+ $ 938.96 $ 1,877.92 $ 2,441.30
Kaiser Permanente $ 669.77 $ 1,339.54 $ 1,741.40
PERS Choice $ 783.19 $ 1,566.38 $ 2,036.29
PERS Select $ 476.92 $ 953.84 $ 1,239.99
PORAC $ 749.00 $ 1,499.00 $ 1,960.00
Region 3
Anthem BC Select $ 639.10 $ 1,278.20 $ 1,661.66
Anthem BC Traditional $ 984.21 $ 1,968.42 $ 2,558.95
BS Access+ $ 834.88 $ 1,669.76 $ 2,170.69
Blue Shield Trio $ 660.49 $ 1,320.98 $ 1,717.27
Health Net Salud y Mas $ 412.88 $ 825.76 $ 1,073.49
Health Net SmartCare $ 691.48 $ 1,382.96 $ 1,797.85
Kaiser Permanente $ 669.84 $ 1,339.68 $ 1,741.58
PERS Choice $ 761.23 $ 1,522.46 $ 1,979.20
PERS Select $ 459.94 $ 919.88 $ 1,195.84
PERS Care $ 1,036.07 $ 2,072.14 $ 2,693.78
PORAC $ 725.00 $ 1,450.00 $ 1,894.00
United Healthcare $ 720.89 $ 1,441.78 $ 1,874.31
Out of State
Kaiser Permanente $ 1,040.15 $ 2,080.30 $ 2,704.38
PERS Care $ 1,008.08 $ 2,016.16 $ 2,621.01
PERS Choice $ 760.17 $ 1,520.34 $ 1,976.44
Substantive Plan Provisions City of Compton

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Premium Rates (Cont’d) The monthly CalPERS Medicare premium rates used in the valuation effective on January 1, 2021 are as shown below.

Medicare Plans Single 2-Party Family
Anthem BC Medicare Preferred $ 383.37 $ 766.74 $ 1,150.11 Anthem BC Select Medicare Preferred $ 383.37 $ 766.74 $ 1,150.11 Kaiser Permanente Senior Advantage $ 324.48 $ 648.96 $ 973.44 Kaiser Permanente Senior Advantage (OOS) $ 317.48 $ 634.96 $ 952.44 PERS Care Medicare Supplement $ 381.25 $ 762.50 $ 1,143.75 PERS Choice Medicare Supplement $ 349.97 $ 699.94 $ 1,049.91 PERS Select Medicare Supplement $ 349.97 $ 699.94 $ 1,049.91 PORAC Medicare Supplement $ 513.00 $ 1,022.00 $ 1,635.00 United Healthcare Medicare Advantage $ 311.56 $ 623.12 $ 934.68 Actuarial Methods and Assumptions City of Compton

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Section 5: Actuarial Methods and Assumptions
Changes Since Prior Valuation
The following assumptions have been updated since the prior valuation:

1. Single Equivalent Discount Rate has been updated from 2.45% as of June 30, 2020 to 1.92% as of June 30, 2021 based on changes in the municipal bond index, which caused a significant increase in the liability.

2. Payroll growth, mortality, disability, termination, and retirement rates assumptions have been updated from CalPERS Experience Study and Review of Actuarial Assumptions published in December 2017 to the most recent study published in November 2021. The net impact of these changes is a slight decrease in the liability.

3. Health care trend rates have been updated from an initial rate of 6.20% (non-Medicare) / 5.10% (Medicare) in 2021 that decreases gradually to an ultimate rate of 4.00% to Getzen 2021 table that reflects actual premium increases from 2021 to 202210 followed by 5.75% (non-Medicare) / 5.40% (Medicare) that decreases gradually to an ultimate rate of 4.04% by 2075. The net impact of this change is a decrease in the liability.

4. Active employees’ health plan election at retirement has been updated as shown in the table below. This change caused a slight decrease in the liability.

Prior Valuation Current Valuation
Periods BS
Access+
Kaiser
Permanente
PERS
Choice
PERS
Care
United
Healthcare
BS
Access+
Kaiser
Permanente
PERS
Choice
PERS
Care
United
Healthcare
Non-Medicare 15% 65% 10% 10% 10% 60% 15% 10% 5%
Medicare 55% 10% 25% 10% 55% 10% 25% 10%

10 Actual premium increases from 2021 to 2022 used in the valuation are as follows: (a) Actives: 3.40% non-Medicare / -3.10% Medicare and (b) Retirees: 3.60% non-Medicare under 65 retirees / 2.30% Medicare ineligible retirees / -3.40% Medicare.

Actuarial Methods and Assumptions City of Compton

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1. Percentage of active employees assumed to elect spousal coverage has been updated from 50% for all employees to 60% for male and 25% for female employees, which caused a slight increase in the liability.

2. In the prior valuation, 10% of future Miscellaneous retirees and 15% of future Safety retirees electing coverage were assumed to cover child dependents at retirement until age 75. In this year’s valuation, 15% of both future Miscellaneous and Safety retirees electing coverage are assumed to cover child dependents at retirement until age 70. The net impact of this change is a decrease in the liability.

Valuation Date June 30, 2021
Measurement Date June 30, 2021
Reporting Period Fiscal year ending June 30, 2022
Discount Rate For accounting disclosure: 1.92% as of June 30, 2021 and 2.45% as of June 30, 2020 Refer to the Discussion of Discount Rate section for additional information on the discount rate setting.

Actuarial Cost Method Entry Age Normal Level Percentage of Pay; a method that allocates the actuarial present value of the projected benefits of each individual on a level basis over the earnings of the individual between entry age and assumed exit age(s).
 The portion allocated to a valuation year is called the Normal Cost.  The portion allocated to past periods is called the Actuarial Accrued Liability (AAL) or Total OPEB Liability (TOL).

Payroll Growth 2.80% wage inflation plus seniority, merit, and promotion salary increases based on CalPERS Experience Study and Review of Actuarial Assumptions published in November 2021 for Public Agency Miscellaneous, and Fire members.

Refer to the Appendix for sample rates.

Census Data Census information was provided by the City as of June 30, 2021. We have reviewed this data for reasonableness and no material modification was made to the data.

Mortality Based on CalPERS Experience Study and Review of Actuarial Assumptions published in November 2021 for Public Agency Miscellaneous, Police, and Fire members. Refer to the Appendix for sample rates.

Actuarial Methods and Assumptions City of Compton

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Termination Based on CalPERS Experience Study and Review of Actuarial Assumptions published in November 2021 for Public Agency Miscellaneous and Fire members. Refer to the Appendix for sample rates.

Disability Based on CalPERS Experience Study and Review of Actuarial Assumptions published in November 2021 for Public Agency Miscellaneous and Fire members. Refer to the Appendix for sample rates.

Retirement Based on CalPERS Experience Study and Review of Actuarial Assumptions published in November 2021 for Public Agency Miscellaneous and Fire members. Refer to the Appendix for sample rates.

Participation Rate 100% of active employees are assumed to elect health coverage with the City at retirement.

Existing retirees who are currently enrolled in the City’s health plans are assumed to continue coverage until death.

Upon retiree’s death, surviving spouses are assumed to continue coverage in the City’s health plans (all of them are assumed to receive contingent pension benefit).

Existing retirees who currently waived coverage is not assumed to re-elect coverage in the future.

Health Plan Election Active employees’ health plan election at retirement is as shown below. This assumption is based on existing retirees’ health plan elections. These percentages are applied to CalPERS Region 3 premium rates.

BS Access+ Kaiser
Permanente
PERS
Choice11
PERS
Care11
United
Healthcare
Non-Medicare 10% 60% 10% 10% 5%
Medicare N/A 55% 10% 25% 10%

Existing retirees who are at least age 65 as of the Valuation Date are assumed to remain in the same health plan option they are currently enrolled in for life. Existing retirees under the age of 65 as of the Valuation Date are assumed to elect the corresponding Medicare Supplement plans. For those enrolled in plans without Medicare Supplement option (BS Access+, Blue Shield Trio, and Health Net Salud y Mas), they are assumed to elect Kaiser Senior Advantage plan upon Medicare eligibility.

11 Mapped to PERS Platinum effective on 1/1/2022.

Actuarial Methods and Assumptions City of Compton

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Spousal Election For future retirees, 60% of male and 25% of female active employees are assumed to elect spousal coverage at retirement. Husbands are assumed to be three years older than wives.

For existing retirees, spousal coverage and age is based on actual data.

Dependent Election 15% of future Miscellaneous and Safety employees are assumed to cover child dependents at retirement until age

70. Dependent liability for existing retirees is valued based on actual election until retiree’s age 70.

Medicare Eligibility All future and existing retirees (including disabled retirees) are assumed to be eligible for Medicare at age 65, except for 50 existing retirees over the age of 65 who are indicated as ineligible for Medicare.

Per Capita Costs The valuation projects health care costs for employees who remain enrolled in the City’s benefit plans after retirement. In accordance with Actuarial Standards of Practice No. 6 (ASOP 6), the actuarial development of health care costs should preferably use the health plan experience that is considered the best predictor of future claims experience assuming it is sufficiently credible. In the absence of credible health plan experience data, the actuary may use other methods such as premiums and normative databases to develop the per capita costs.

As medical/prescription drug costs generally vary by age, age-specific costs should be used in the development of initial per capita costs and projection of future benefit costs, except in very limited circumstances defined in ASOP 6 Section 3.7.7(c). The development of the age-specific costs should be based on the demographics of the group being valued and the group’s total expected claims or premiums.

Retiree healthcare costs are, on average, significantly higher than active employees and if the City charges blended premium rates (determined using active employees and retiree claims experience) to the retirees, the City is providing an implicit subsidy for these retirees. Under GASB 75, the implicit subsidy must be included in the post- employment medical benefit obligation. Separate costs should be developed for Medicare-eligible participants due to Medicare being the primary payer for these retirees, which leads to a reduction to the Plan Sponsor’s health plan costs.

In developing the per capita costs, we have used CalPERS health plan premium rates effective on January 1, 2021 and aging factors and subscriber enrollments for HMO and PPO plans combined as published in the CalPERS Health Plan (PEMHCA) Implicit Subsidy Data for Calendar 2019.

Actuarial Methods and Assumptions City of Compton

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Per Capita Costs (Cont’d) The following table shows the sample annual per capita costs at select ages for 2021/22 plan year used in the valuation. These costs are assumed to increase with health care trend rates in the future.

Active Employees12 Retirees13 Medicare Ineligible
Age Male Female Male Female Age Male Female
45 $5,895 $7,990 $5,885 $7,977 65 $16,199 $13,994
50 $7,806 $9,207 $7,793 $9,192 70 $19,666 $15,918
55 $10,166 $10,452 $10,149 $10,435 75 $23,419 $18,098
60 $13,125 $12,234 $13,103 $12,214 80 $28,781 $22,026
64 $15,566 $13,674 $15,540 $13,652 90 $30,364 $26,293

We have assumed that CalPERS health premiums for Medicare eligible retirees are based on Medicare eligible retiree claims experience and represent the expected true cost of retiree coverage. As such, we have assumed there is no implicit subsidy for Medicare retirees. The annual costs used on/after age 65 are $4,079 for active employees and $4,100 for retirees. These costs are assumed to increase with health care trend rates.

Trend Rates Historically, health care costs have increased more rapidly than the rate of inflation. In estimating the value of retiree health benefits, assumptions must be made on future increases in healthcare costs. The health care trend rates assumption used in this valuation is based on the Getzen Model of Long-Run Medical Cost Trends, which was first designed by T.E. Getzen for the Society of Actuaries (SOA) in 2007. The model is designed to make long-run forecasts and typically used to select medical trend assumptions for retiree medical valuations to present liabilities disclosed under the appropriate accounting standards, or to determine contributions under a funding policy. The long-run baseline projection and input variables were developed under the guidance of the SOA Project Oversight Group. The model is updated annually along with updated documentation and recommended input variables by the author of the model.

12 Active employees’ initial annual per capita costs are based on the Health Plan Election assumption shown on page 19. 13 Retirees’ initial annual per capita costs are based on weighted average premium for various health plan and CalPERS regions of existing retirees under age 65 as of the Valuation Date.

Actuarial Methods and Assumptions City of Compton

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Trend Rates (Cont’d) The baseline assumptions used in the Getzen model are as shown in the table below.

Inflation Rate 2.5%
Real GDP Per Capita Growth 1.5%
Excess Medical Cost Growth 1.1%
Health Share of GDP Resistance Point 25.0%
Year for Limiting Cost Growth to GDP Growth 2075

The output of the Getzen Model of Long-Run Medical Cost Trend Model used in the valuation is as shown below.

Year Non-Medicare Medicare Year Non-Medicare Medicare
2021 Actual 14 Actual 14 2035 5.18% 5.18%
2022 5.75% 5.40% 2040 5.18% 5.18%
2023 5.50% 5.30% 2050 5.18% 5.18%
2024 5.40% 5.20% 2060 4.83% 4.83%
2025 5.36% 5.20% 2070 4.38% 4.38%
2030 5.18% 5.18% 2075+ 4.04% 4.04%

Discussion of Discount Rates
Under GASB 75, the discount rate used in valuing OPEB liabilities as of the Measurement Date is based on a yield or index rate for 20-year tax- exempt general obligation municipal bonds with an average rating of AA/Aa or higher (or equivalent quality on another rating scale) for an unfunded plan.

The municipal bond index as of the prior and current Measurement Dates are as shown below. The final single equivalent discount rate used for accounting disclosure as of June 30, 2022 is 1.92%.

Index June 30, 2021 June 30, 2020
Fidelity GO AA 20 Years Municipal Index 1.92% 2.45%

14 Actual premium increases from 2021 to 2022 used in the valuation are as follows: (a) Actives: 3.40% non-Medicare / -3.10% Medicare and (b) Retirees: 3.60% non-Medicare under 65 retirees / 2.30% Medicare ineligible retirees / -3.40% Medicare.

Actuarial Methods and Assumptions City of Compton

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Section 6: Participant Summary
Active Employees
Active employees’ enrollments below are across multiple CalPERS regions.

Actives with Health Coverage Single 2-Party Family Total Avg. Age Avg. Svc Total Salary Anthem BC Select 1 1 5 7 46.6 10.6 $ 367,216
Anthem BC Traditional 1 1 2 57.8 4.7 $ 50,328
BS Access+ 5 10 6 21 53.5 15.6 $ 1,588,761
Blue Shield Trio 1 2 3 43.5 10.8 $ 179,547
Health Net SmartCare 1 1 2 4 50.4 17.2 $ 182,803
Kaiser Permanente 42 47 94 183 49.0 15.4 $ 11,739,450
PERS Choice 1 2 6 9 46.3 12.7 $ 952,348
PERS Select 1 1 4 6 48.9 14.2 $ 481,423
PERS Care 6 4 10 45.8 12.1 $ 825,268
PORAC 3 2 4 9 48.2 20.8 $ 889,319
United Healthcare 1 4 5 46.5 15.4 $ 429,417
Total actives with health coverage 62 66 131 259 49.1 15.1 $ 17,685,880

Actives without Health Coverage Total Avg. Age Avg. Svc Total Salary Total actives without health coverage 16 44.0 5.8 $ 581,319

Active employees without health coverage are assumed to elect health coverage with the City based on the Participation Rate assumption shown on page 19.

Participant Summary City of Compton

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Active Age-Service Distribution
Years of Service with the City
Age <1 1 – 4 5 – 9 10 – 14 15 – 19 20 – 24 25 – 29 30 – 34 35 – 39 40+ Total <25 3 3
25 – 29 2 5 3 10
30 – 34 5 4 8 2 19
35 – 39 4 3 3 14 6 30
40 – 44 2 6 11 11 9 2 41
45 – 49 8 4 10 9 6 5 42
50 – 54 2 5 4 10 8 10 7 4 50
55 – 59 2 2 3 6 4 1 6 6 3 33
60 – 64 3 4 5 4 6 2 5 3 1 33
65+ 2 5 1 3 2 1 14
Total 20 36 42 63 40 26 20 18 8 2 275
Participant Summary City of Compton

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Retired Employees
Retirees with Health Coverage Single 2-Party Family Total Avg. Age Anthem BC Select 1 1 55.7
Anthem BC Traditional 1 1 70.0
BS Access+ 11 6 2 19 65.5
Blue Shield Trio 1 1 59.3
Health Net Salud y Mas 1 1 60.3
Kaiser Permanente 128 86 19 233 71.1
PERS Choice 25 19 5 49 69.7
PERS Care 55 30 85 76.3
PORAC 2 6 8 68.7
United Healthcare 15 12 1 28 73.0
Total retirees with health coverage 237 159 30 426 71.7

Enrollments above include retirees enrolled in the corresponding Medicare plans or those with split enrollment in pre-Medicare and Medicare plans and 50 retirees who are not eligible for Medicare.

Age Retirees
<50 2
50 – 54 10
55 – 59 35
60 – 64 61
65 – 69 70
70 – 74 96
75 – 79 68
80 – 84 51
85 – 89 23
90+ 10
Total 426

Participant Summary City of Compton

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Comparison of Participant Summary
Below is a comparison of participant summary included in the current valuation and the prior full valuation.

As of June 30, 2021 As of June 30, 2019
Number of Participants
Active employees 275 332
Retired employees15 426 433
Total 701 765

Averages
Active average age 48.8 48.1
Active average service 14.6 13.8
Inactive average age 71.7 71.3

15 The enrollments above include retirees only and exclude spouses and/or dependents who are covered under the City’s health plans.

City of Compton

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Appendix – Sample Decrement Rates
Appendix – Sample Decrement Rates City of Compton

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Mortality Rates
Mortality rates used in the valuation are based on the CalPERS Experience Study and Review of Actuarial Assumptions published in November 2021 for Public Agency Miscellaneous, Police, and Fire members. Sample pre-retirement, post-retirement non-disabled, and post-retirement disabled base mortality rates for Miscellaneous, Police, and Fire members are as shown below. These rates are projected fully generationally using 80% of MP-2020 mortality improvement scale.

Pre-Retirement16 Post-Retirement Non-Disabled Post-Retirement Disabled17 Attained
Ages
Miscellaneous Fire/Police/CPO Miscellaneous Fire/Police/CPO Miscellaneous Fire/Police/CPO Male Female Male Female Male Female Male Female Male Female Male Female 20 0.00039 0.00014 0.00042 0.00016 0.00039 0.00014 0.00146 0.00053 0.00411 0.00233 0.00039 0.00014 25 0.00033 0.00013 0.00038 0.00020 0.00033 0.00013 0.00154 0.00069 0.00336 0.00187 0.00033 0.00013 30 0.00044 0.00019 0.00047 0.00028 0.00044 0.00019 0.00182 0.00099 0.00452 0.00301 0.00044 0.00019 35 0.00058 0.00029 0.00053 0.00038 0.00058 0.00029 0.00208 0.00136 0.00603 0.00504 0.00058 0.00029 40 0.00075 0.00039 0.00061 0.00047 0.00075 0.00039 0.00244 0.00177 0.00779 0.00730 0.00075 0.00039 45 0.00093 0.00054 0.00073 0.00059 0.00093 0.00054 0.00314 0.00227 0.01120 0.01019 0.00093 0.00054 50 0.00134 0.00081 0.00102 0.00081 0.00271 0.00199 0.00437 0.00311 0.01727 0.01439 0.00271 0.00199 55 0.00198 0.00123 0.00153 0.00118 0.00391 0.00325 0.00623 0.00550 0.02217 0.01734 0.00391 0.00325 60 0.00287 0.00179 0.00246 0.00168 0.00575 0.00455 0.00935 0.00868 0.02681 0.01962 0.00575 0.00455 65 0.00403 0.00250 0.00384 0.00216 0.00856 0.00612 0.01393 0.01190 0.03332 0.02276 0.00856 0.00612 70 0.00594 0.00404 0.00673 0.00398 0.01340 0.00996 0.02189 0.01858 0.04056 0.02910 0.01340 0.00996 75 0.00933 0.00688 0.01221 0.00777 0.02400 0.01783 0.03498 0.03134 0.05465 0.04160 0.02400 0.01783 80 0.01515 0.01149 0.02252 0.01567 0.04380 0.03403 0.05932 0.05183 0.08044 0.06112 0.04380 0.03403 85 0.00000 0.00000 0.00000 0.00000 0.08274 0.06166 0.10244 0.08045 0.11695 0.09385 0.08274 0.06166 90 0.00000 0.00000 0.00000 0.00000 0.14539 0.11086 0.16739 0.12434 0.16770 0.14396 0.14539 0.11086

16 Pre-Retirement rates for all groups are based on the sum of non-industrial death and industrial death rates. 17 Post-Retirement Disabled rates are based on non-industrially disabled rates for Miscellaneous participants and industrially disabled rates for Fire/Police/CPO participants.

Appendix – Sample Decrement Rates City of Compton

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Salary Increases
The seniority, merit and promotional salary increases used in the valuation are based on the CalPERS Experience Study and Review of Actuarial Assumptions published in November 2021 for Public Agency Miscellaneous and Fire members. Sample rates for Miscellaneous and Fire members are as shown below.

Miscellaneous Fire
Entry Ages
Service 20 25 30 35 40 45 50 20 25 30 35 40 45 50
0 0.0764 0.0764 0.0621 0.0621 0.0521 0.0521 0.0521 0.1517 0.1517 0.1549 0.1549 0.0631 0.0631 0.0631 2 0.0576 0.0576 0.0449 0.0449 0.0346 0.0346 0.0346 0.0936 0.0936 0.0835 0.0835 0.0423 0.0423 0.0423 4 0.0435 0.0435 0.0324 0.0324 0.0229 0.0229 0.0229 0.0577 0.0577 0.0451 0.0451 0.0284 0.0284 0.0284 6 0.0328 0.0328 0.0234 0.0234 0.0152 0.0152 0.0152 0.0356 0.0356 0.0243 0.0243 0.0190 0.0190 0.0190 8 0.0248 0.0248 0.0170 0.0170 0.0101 0.0101 0.0101 0.0220 0.0220 0.0131 0.0131 0.0128 0.0128 0.0128 10 0.0201 0.0201 0.0126 0.0126 0.0108 0.0108 0.0108 0.0188 0.0188 0.0143 0.0143 0.0077 0.0077 0.0077 12 0.0181 0.0181 0.0116 0.0116 0.0092 0.0092 0.0092 0.0178 0.0178 0.0135 0.0135 0.0081 0.0081 0.0081 14 0.0163 0.0163 0.0106 0.0106 0.0078 0.0078 0.0078 0.0169 0.0169 0.0128 0.0128 0.0086 0.0086 0.0086 16 0.0147 0.0147 0.0098 0.0098 0.0066 0.0066 0.0066 0.0161 0.0161 0.0121 0.0121 0.0090 0.0090 0.0090 18 0.0132 0.0132 0.0090 0.0090 0.0055 0.0055 0.0055 0.0152 0.0152 0.0114 0.0114 0.0095 0.0095 0.0095 20 0.0119 0.0119 0.0083 0.0083 0.0047 0.0047 0.0047 0.0145 0.0145 0.0108 0.0108 0.0101 0.0101 0.0101

Appendix – Sample Decrement Rates City of Compton

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Disability Rates
The disability rates used in the valuation are based on the CalPERS Experience Study and Review of Actuarial Assumptions published in November 2021 for Public Agency Miscellaneous and Fire Members. Sample rates are as shown below.

Attained
Ages
Miscellaneous Fire
Male Female Unisex
20 0.000070 0.000040 0.000130
25 0.000070 0.000090 0.000270
30 0.000170 0.000330 0.000640
35 0.000350 0.000650 0.001270
40 0.000910 0.001190 0.002330
45 0.001490 0.001850 0.004140
50 0.001540 0.001930 0.021190
55 0.001390 0.001290 0.031220
60 0.001240 0.000940 0.044310

Appendix – Sample Decrement Rates City of Compton

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Termination Rates
This assumption is used to project terminations (voluntary and involuntary) prior to meeting the minimum eligibility requirements to retire. The rates are based on the CalPERS Experience Study and Review of Actuarial Assumptions published in November 2021 for Public Agency Miscellaneous and Fire members. Sample rates for Miscellaneous members are as shown below.

Miscellaneous (Male) Miscellaneous (Female)
Entry Ages
Service 20 25 30 35 40 45 50 20 25 30 35 40 45 50
0 0.1851 0.1769 0.1631 0.1493 0.1490 0.1487 0.1509 0.1944 0.1899 0.1824 0.1749 0.1731 0.1713 0.1741 2 0.1218 0.1125 0.0970 0.0815 0.0771 0.0726 0.0750 0.1381 0.1307 0.1183 0.1058 0.0998 0.0938 0.0941 4 0.0672 0.0616 0.0524 0.0431 0.0392 0.0352 0.0366 0.0801 0.0752 0.0670 0.0587 0.0523 0.0459 0.0457 6 0.0669 0.0641 0.0575 0.0509 0.0453 0.0397 0.0383 0.0869 0.0847 0.0757 0.0666 0.0580 0.0494 0.0464 8 0.0470 0.0453 0.0410 0.0366 0.0311 0.0255 0.0218 0.0613 0.0601 0.0545 0.0488 0.0394 0.0299 0.0294 10 0.0377 0.0366 0.0337 0.0309 0.0245 0.0181 0.0032 0.0502 0.0491 0.0446 0.0401 0.0308 0.0215 0.0046 12 0.0307 0.0300 0.0282 0.0263 0.0200 0.0137 0.0027 0.0423 0.0413 0.0368 0.0322 0.0244 0.0165 0.0037 14 0.0251 0.0246 0.0226 0.0207 0.0156 0.0014 0.0017 0.0352 0.0343 0.0292 0.0241 0.0181 0.0019 0.0023 16 0.0173 0.0173 0.0152 0.0132 0.0101 0.0000 0.0000 0.0235 0.0235 0.0193 0.0151 0.0112 0.0000 0.0000 18 0.0159 0.0159 0.0129 0.0100 0.0067 0.0000 0.0000 0.0202 0.0202 0.0158 0.0113 0.0075 0.0000 0.0000 20 0.0141 0.0141 0.0110 0.0079 0.0000 0.0000 0.0000 0.0175 0.0175 0.0131 0.0087 0.0000 0.0000 0.0000 Appendix – Sample Decrement Rates City of Compton

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Termination Rates (Continued)
Sample rates for Fire members are as shown below.

Fire (Male) Fire (Female)
Entry Ages
Service 20 25 30 35 40 45 50 20 25 30 35 40 45 50
0 0.1022 0.1022 0.1022 0.1022 0.1022 0.1022 0.1022 0.1317 0.1317 0.1317 0.1317 0.1317 0.1317 0.1317 2 0.0441 0.0441 0.0441 0.0441 0.0441 0.0441 0.0441 0.0743 0.0743 0.0743 0.0743 0.0743 0.0743 0.0743 4 0.0161 0.0161 0.0161 0.0161 0.0161 0.0161 0.0161 0.0349 0.0349 0.0349 0.0349 0.0349 0.0349 0.0349 6 0.0136 0.0136 0.0136 0.0136 0.0136 0.0136 0.0052 0.0327 0.0327 0.0327 0.0327 0.0327 0.0327 0.0117 8 0.0096 0.0096 0.0096 0.0096 0.0096 0.0096 0.0022 0.0200 0.0200 0.0200 0.0200 0.0200 0.0200 0.0014 10 0.0081 0.0081 0.0081 0.0081 0.0081 0.0015 0.0015 0.0164 0.0164 0.0164 0.0164 0.0164 0.0000 0.0000 12 0.0069 0.0069 0.0069 0.0069 0.0069 0.0011 0.0011 0.0145 0.0145 0.0145 0.0145 0.0145 0.0000 0.0000 14 0.0059 0.0059 0.0059 0.0059 0.0008 0.0008 0.0008 0.0128 0.0128 0.0128 0.0128 0.0000 0.0000 0.0000 16 0.0045 0.0045 0.0045 0.0045 0.0000 0.0000 0.0000 0.0113 0.0113 0.0113 0.0113 0.0000 0.0000 0.0000 18 0.0040 0.0040 0.0040 0.0040 0.0000 0.0000 0.0000 0.0100 0.0100 0.0100 0.0100 0.0000 0.0000 0.0000 20 0.0035 0.0035 0.0035 0.0000 0.0000 0.0000 0.0000 0.0088 0.0088 0.0088 0.0000 0.0000 0.0000 0.0000 Appendix – Sample Decrement Rates City of Compton

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Retirement Rates
Retirement rates used in the valuation are based on the CalPERS Experience Study and Review of Actuarial Assumptions published in November 2021 for Public Agency Miscellaneous and Fire members. Sample rates for Miscellaneous and Fire members are as shown below.

Miscellaneous 2.7% at 55 Miscellaneous 2% at 62
Attained Ages
Service 50 55 60 65 70 75 50 55 60 65 70 75
5 0.0110 0.0450 0.0870 0.1820 0.2270 1.0000 0.0000 0.0100 0.0310 0.1080 0.1200 1.0000 10 0.0160 0.0580 0.0840 0.2010 0.2270 1.0000 0.0000 0.0190 0.0510 0.1410 0.1560 1.0000 15 0.0220 0.0820 0.0960 0.2420 0.2270 1.0000 0.0000 0.0280 0.0710 0.1730 0.1930 1.0000 20 0.0330 0.1380 0.1420 0.2640 0.2270 1.0000 0.0000 0.0360 0.0910 0.2060 0.2290 1.0000 25 0.0340 0.2080 0.1650 0.2930 0.2270 1.0000 0.0000 0.0610 0.1110 0.2390 0.2650 1.0000 30 0.0380 0.2780 0.1980 0.2930 0.2270 1.0000 0.0000 0.0960 0.1380 0.3000 0.3330 1.0000 35 0.0440 0.3410 0.2230 0.2930 0.2270 1.0000 0.0000 0.1520 0.1830 0.3480 0.3870 1.0000 40 0.0000 0.3410 0.2230 0.2930 0.2270 1.0000 0.0000 0.1800 0.2040 0.3600 0.4000 1.0000

Fire 3% at 50 Fire 2.7% at 57
Attained Ages
Service 50 55 60 65 50 55 60 65
5 0.0950 0.0420 0.0560 1.0000 0.0070 0.0820 0.1140 1.0000 10 0.0480 0.0430 0.0440 1.0000 0.0070 0.0820 0.1140 1.0000 15 0.0530 0.0490 0.0610 1.0000 0.0070 0.0820 0.1140 1.0000 20 0.0930 0.0850 0.1310 1.0000 0.0070 0.0820 0.1140 1.0000 25 0.1340 0.1320 0.1860 1.0000 0.0100 0.1270 0.1750 1.0000 30 0.1750 0.2150 0.2330 1.0000 0.0150 0.1900 0.2620 1.0000 35 0.1960 0.2720 0.2620 1.0000 0.0170 0.2140 0.2950 1.0000 40 0.0000 0.2720 0.2620 1.0000 0.0000 0.2200 0.3030 1.0000

Appendix – Sample Decrement Rates City of Compton

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Decrements Illustration
The table below illustrates how decrements are applied in the valuation and how the decrements affect the liabilities valued. Assuming the Plan Sponsor has 100 employees aged 30 as of the valuation date, only 48.6 employees will be projected to be employed at age 55 (assumed retirement eligibility age) using the assumed illustrative termination rates.

Age # Actives
BOY
Annual
Termination %
# Terminated
Actives / Year
30 100.0 10% 10.0
31 90.0 9% 8.1
32 81.9 8% 6.6
33 75.3 7% 5.3
34 70.1 6% 4.2
35 65.9 5% 3.3
36 62.6 4% 2.5
37 60.1 3% 1.8
38 58.3 2% 1.2
39 57.1 1% 0.6
40 56.5 1% 0.6
41 56.0 1% 0.6
42 55.4 1% 0.6
43 54.9 1% 0.5
44 54.3 1% 0.5
45 53.8 1% 0.5
46 53.2 1% 0.5
47 52.7 1% 0.5
48 52.2 1% 0.5
49 51.6 1% 0.5
50 51.1 1% 0.5
51 50.6 1% 0.5
52 50.1 1% 0.5
53 49.6 1% 0.5
54 49.1 1% 0.5
55 48.6 0% 0.0
02040608010030 35 40 45 50 55Application of Termination RatesActives Cumulative Terminated ActivesRetirement Eligible Actives Notes:

1. The annual termination percentages shown in the table are for illustrative purposes only, not the actual termination rates used in the valuation.

2. For simplification, only termination decrement is assumed to be applicable while actively employed. Actuarial valuation typically applies pre-retirement death decrement during employment as well.

Appendix – Sample Decrement Rates City of Compton

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Decrements Illustration (Continued)
The table below illustrates the number of active employees assumed to retire at each age based on the illustrative retirement rates.

Age # Actives
BOY
Annual
Retirement %
# Retirements /
Year
55 48.6 10% 4.9
56 43.8 5% 2.2
57 41.6 5% 2.1
58 39.5 5% 2.0
59 37.5 5% 1.9
60 35.6 10% 3.6
61 32.1 10% 3.2
62 28.9 25% 7.2
63 21.7 40% 8.7
64 13.0 40% 5.2
65 7.8 100% 7.8

Notes:

1. The annual retirement percentages shown in the table are for illustrative purposes only, not the actual retirement rates used in the valuation.

2. For simplification, only retirement decrement is assumed to be applicable once the employee is retirement eligible. Actuarial valuation typically applies pre-retirement death decrement once an employee is eligible to retire.

3. The illustration above assumes that all active employees who are projected to be employed at age 55 elect health coverage with the Plan Sponsor at retirement.
0102030405055 56 57 58 59 60 61 62 63 64 65Application of Retirement RatesActives Cumulative Retirements
City of Compton

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Appendix – Glossary
Appendix – Glossary City of Compton

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1. Active Employees – Individuals employed at the end of the reporting or measurement period, as applicable.

2. Actuarial Cost Method – A method to allocate the Actuarial Present Value of Future Benefits into portions attributed to past service (Total OPEB Liability) and future service (Normal Cost).

3. Actuarial Present Value of Future Benefits – Projected benefit payments estimated to be payable through the OPEB plan to current active and inactive employees as a result of their past service and their expected future service, discounted to reflect the expected effects of time value (present value) of money and the probabilities of payment (which is contingent on events such as death, termination, retirement, etc). In other words, this is the amount that would have been invested as of the Valuation Date so that it is sufficient to pay for benefit payments when due.

4. Deferred Inflows – Gains in the Total OPEB Liability and Fiduciary Net Position (for funded plan only) due to be recognized in the future.

5. Deferred Outflows – Losses in the Total OPEB Liability and Fiduciary Net Position (for funded plan only) due to be recognized in the future.

6. Defined Benefit OPEB – OPEB for which the benefits that the employee will receive at or after separation from employment are defined by the benefit terms. The OPEB may be stated as (a) a specified dollar amount; (b) an amount that is calculated

7. Entry Age Actuarial Cost Method – A method that allocates the actuarial present value of the projected benefits of each individual on a level basis over the earnings or service of the individual between entry age and assumed exit age(s).  The portion allocated to a valuation year is called the Normal Cost.  The portion allocated to past periods is called the Total OPEB Liability.  The portion allocated to future periods after the valuation date is called the Present Value of Future Normal Costs.

8. Fiduciary Net Position – OPEB plan assets in a secure Trust that meet the following criteria:
 Contributions from employers to the OPEB plan and earnings on those contributions are irrevocable.  OPEB plan assets are dedicated to providing OPEB to plan members in accordance with the benefit terms.  OPEB Plan assets are legally protected from the creditors of employers, OPEB plan administrator, and creditors of the plan members.

9. Funded Ratio – The value of the asset expressed as a percentage of the Total OPEB Liability.

Appendix – Glossary City of Compton

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10. Healthcare Cost Trend Rates – The rates of change in per capita health claims costs over time as a result of factors such as medical inflation, utilization of healthcare services, plan design, and technological developments.

11. Inactive Employees – Individuals no longer employed by an employer in the OEPB plan or the beneficiaries of those individuals. Inactive employees also include individuals who have accumulated benefits under the terms of an OPEB plan but are not yet receiving benefit payments and individuals currently receiving benefits.

12. Net OPEB Liability – The difference between the Total OPEB Liability and the Fiduciary Net Position.

13. Payroll Growth – An actuarial assumption on the rate of future increase in the total coverage payroll attributable to wage inflation and productivity increase; used in the Actuarial Cost Method to determine the Total OPEB Liability.

14. Plan Members – Individuals covered by the terms of the OPEB plan, which would typically include employees in active service, terminated employees who have terminated service but are not yet receiving benefit payments, and retired employees who are currently receiving benefits.

15. Other Postemployment Benefits (OPEB) – Benefits such as death benefits, life insurance, disability, and long-term care, as well as healthcare benefits (medical, prescription drug, dental, vision, and other health-related benefits), that are paid in the period after employment and that are provided separately from a pension plan regardless of the manner in which they are provided. OPEB does not include termination benefits or termination payments for sick leave.

16. Service Cost (Normal Cost) – The portion of actuarial present value of projected benefit payments that are attributed to a 12-month period after a valuation date as determined by the Actuarial Cost Method.

17. Total OPEB Liability – The portion of the actuarial present value of projected benefit payments that is attributed to past periods of employee service as of the valuation date as determined by the Actuarial Cost Method.

8605 Santa Monica Blvd PMB 52465, West Hollywood, CA 90069-4109 [email protected]

City of Compton

GASB 75 Disclosures for Fiscal Year Ending June 30, 2023 Based on Roll-Forward of OPEB Valuation as of June 30, 2021

CONTACT
Nadine Pileggi, ASA, MAAA
[email protected]
(503) 799-4796

Version 1.0

City of Compton

Table of Contents
Actuarial Certification ................................................................................................................................................................ 1 Section 1: Executive Summary .................................................................................................................................................. 3 Section 2: Financial Disclosures ............................................................................................................................................... 5 Section 3: Projected Benefit Payments .................................................................................................................................. 15 Section 4: Substantive Plan Provisions .................................................................................................................................. 17 Section 5: Brief Summary of Actuarial Methods and Assumptions ................................................................................... 22 Appendix - Glossary .............................................................................................................................................................. 25

Actuarial Certification City of Compton

Page 1 ends

Actuarial Certification
Ms. Sharon Rahban
City of Compton
205 S Willowbrook Ave.

Compton, CA 90220

GovInvest has been engaged by City of Compton to complete an actuarial valuation for the City of Compton OPEB Plan as of June 30, 2021 which will be used as the basis of the financial accounting disclosure for fiscal year ending June 30, 2023 in accordance with GASB Statement No. 75 (Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions).

We are satisfied that the information provided is suitable and sufficient for the purpose of the measurement.

The valuation results were prepared using leased actuarial modeling software that produces results consistent with the purpose of this valuation and meets applicable regulatory requirements. The vendor is responsible for the development, maintenance, and improvement of these models.

We are not aware of any material limitations in the model nor any material inconsistencies in the assumptions used within the model.

Actuarial Certification City of Compton

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The discount rate, other economic, and demographic assumptions have been selected by the City with our recommendations and concurrence.

We believe each assumption is reasonable based on its own merits and in combination represents reasonable expected experience of the Plan.

All calculations have been completed in accordance with generally accepted actuarial principles and practices.

Nadine Pileggi, ASA, MAAA
December 13, 2023

Executive Summary City of Compton

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Section 1: Executive Summary
City of Compton (the “City”) sponsors a single-employer defined benefit OPEB plan that provides medical, and prescription drug coverage at retirement. Employees may continue health coverage with the City at retirement for themselves, their spouses, and dependents for life once they meet certain eligibility requirements and as long as required contributions are made.

The results presented in this report are based on a roll-forward of the June 30, 2021 valuation with liabilities and assets measured as of June 30, 2022, for use in the City’s accrual-based financial statement for the fiscal year ending June 30, 2023. The City has elected to use the GASB 75 “lookback” method where assets and liabilities are measured as of the prior fiscal year-end but applied to the current fiscal year.

The actuarial valuation is based on substantive plan provisions outlined in Section 5 of the City of Compton GASB 75 Disclosures for fiscal year ending June 30, 2022. The valuation requires assumptions which are briefly listed in Section 5. For complete information on the actuarial methods and assumptions, refer to the City of Compton GASB 75 Disclosures for fiscal year ending June 30, 2022 report.

The Plan Sponsor’s next full valuation is as of June 30, 2023 with liabilities and assets measured as of June 30, 2024 for reporting in the Plan Sponsor’s accrual-based financial statements for the fiscal year ending June 30, 2024.

Changes Since Prior Valuation
The City’s Net OPEB Liability has decreased from $160,603,184 as of June 30, 2021 to $125,361,485 as of June 30, 2022, which is attributable to a combination of the following factors:

1. Lower healthcare cost increase than expected that produces a slight liability decrease.

2. Increase in Single Equivalent Discount Rate (SEDR) based on the updated municipal bond index that produces a liability decrease.

Executive Summary City of Compton

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Summary of Results
Presented below is the summary of results for the current fiscal year compared to the prior fiscal year.

Fiscal Years 2022/23 2021/22
Valuation Date (VD) June 30, 2021 June 30, 2021
Measurement Date (MD) June 30, 2022 June 30, 2021

Membership Data as of Valuation Date
Inactive employees or beneficiaries currently receiving benefits 426 426 Inactive employees entitled to but not yet receiving benefits 0 0 Active employees 275 275
Total membership 701 701

Discount Rate at Measurement Date
Municipal Bond Index Rate 3.69% 1.92%
Long-term Expected Asset Return 0.00% 0.00%
Year in which Fiduciary Net Position is projected to be depleted N/A N/A Single Equivalent Discount Rate (SEDR) 3.69% 1.92%

Net OPEB Liability as of Measurement Date
Total OPEB Liability (TOL) $ 125,361,485 $ 160,603,184 Fiduciary Net Position (FNP) (0) (0)
Net OPEB Liability (NOL = TOL – FNP) $ 125,361,485 $ 160,603,184 Funded Status (FNP / TOL) 0.0% 0.0%

OPEB Expense / (Income) by Fiscal Year $ 2,061,990 $ 12,101,973 Balance of unamortized Deferred Inflows at MD $ (47,053,111) $ (27,502,438) Balance of unamortized Deferred Outflows at MD $ 21,444,286 $ 34,262,816 Executive Summary City of Compton

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Present Value of Future Benefits (PVFB) As of June 30, 2022 As of June 30, 2021 Active employees $ 77,839,434 $ 122,020,645
Retired employees 80,694,816 104,799,189
Total PVFB $ 158,534,250 $ 226,819,834

Total OPEB Liability (TOL) As of June 30, 2022 As of June 30, 2021 Active employees $ 44,666,669 $ 55,803,995
Retired employees 80,694,816 104,799,189
Total TOL $ 125,361,485 $ 160,603,184

As of June 30, 2022 As of June 30, 2021
Discount Rate 3.69% 1.92%
$80.7$104.8$44.7$55.8$33.2$66.2$0$50$100$150$200$250As of 6/30/2022(3.69% DR)As of 6/30/2021(1.92% DR)MillionsOPEB Liability Breakdown ($)Active future service(PVFNC)Active past service (TOL)Retirees50.9%46.2%28.2%24.6%20.9%29.2%0%20%40%60%80%100%As of 6/30/2022(3.69% DR)As of 6/30/2021(1.92% DR)OPEB Liability Breakdown (%) Financial Disclosures City of Compton

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Section 2: Financial Disclosures
This section provides the necessary accounting disclosures for the ’s financial reports as shown in the following tables:

Summary of Membership and Assumptions
The table below shows the number of employees covered by the benefit terms as of June 30, 2021.

Table 1 - Plan Demographics
Inactive employees or beneficiaries currently receiving benefits 426 Inactive employees entitled to but not yet receiving benefits 0 Active employees 275
Total membership 701
Financial Disclosures City of Compton

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The Total OPEB Liability (TOL) as of June 30, 2022 was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified. For a complete list of assumptions, refer to Section 5.

Table 2 - Brief Summary of Assumptions
Inflation 2.30%
Payroll growth

2.80% wage inflation plus seniority, merit, and promotion salary increases based on CalPERS Experience Study and Review of Actuarial Assumptions published in November 2021
Investment rate of return N/A; OPEB plan is unfunded
Discount rate 3.69%
Healthcare trend rates
Based on 2021 Getzen model that reflects actual premium increases through 20231, followed by 5.50% (non-Medicare) / 5.30% (Medicare) in 2023, decreasing gradually to an ultimate rate of 4.04%

1 Actual premium increases from 2021 to 2022 reflected in last year’s valuation and from 2022 to 2023 used in this roll-forward report are as follows:

From 2021 to 2022 From 2022 to 2023
Active
Retirees
(Medicare
Eligible)
Retirees
(Medicare
Ineligible)

Active

Retirees
(Medicare Eligible)
Retirees
(Medicare
Ineligible) Member Spouse
Non-Medicare 3.40% 3.60% 2.30% 6.50% 7.10% 7.00% 2.30%
Medicare -3.10% -3.40% N/A 1.00% 0.30% 0.90% 9.50%

Financial Disclosures City of Compton

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OPEB Expense
The table below shows a comparison of the OPEB Expense recognized by the City for the current and prior fiscal years.

Table 3 - OPEB Expense
Fiscal Years 2022/23 2021/22
SEDR as of beginning of year 1.92% 2.45%
SEDR as of end of year 3.69% 1.92%

Service Cost $ 5,135,083 $ 5,636,782
Interest on TOL and Service Cost 3,133,609 4,226,872 Changes of benefit terms 0 0
Projected earnings on OPEB Plan investments 0 0
OPEB Plan administrative expenses net of all revenues 0 0

Current period recognition of Deferred Inflows /
Outflows of Resources
Difference between expected and actual
experience in the TOL $ (9,099,277) $ (8,414,357)
Changes of assumptions or other inputs 2,892,575 10,652,676 Net difference between the projected and actual
earnings on OPEB Plan investments 0 0
Other 0 0
Total current period recognition $ (6,206,702) $ 2,238,319

OPEB Expense $ 2,061,990 $ 12,101,973
Financial Disclosures City of Compton

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Schedule of Changes in Net OPEB Liability
Fiscal Year Ending June 30 2023 2022 2021 2020 2019 Measurement Period Ending June 30 2022 2021 2020 2019 2018 Total OPEB Liability (TOL)
Service Cost $ 5,135,083 $ 5,636,782 $ 4,575,441 $ 3,785,637 $ 3,731,074 Interest on TOL and Service Cost 3,133,609 4,226,872 4,744,124 4,858,489 4,730,536 Changes of benefit terms 0 0 0 0 0
Difference between expected &
actual experience (2,739,681) (36,390,352) (135,090) 2,970,500 0 Changes of assumptions or other
inputs (35,687,653) 22,913,092 15,907,862 9,929,633 (2,374,728) Benefit payments (5,083,057) 2 (5,311,479) (5,116,139) (4,837,893) (4,780,662) Net change in TOL $ (35,241,699) $ (8,925,085) $ 19,976,198 $ 16,706,366 $ 1,306,220 TOL – beginning $ 160,603,184 $ 169,528,269 $ 149,552,071 $ 132,845,705 $ 131,539,485 TOL – ending $ 125,361,485 $ 160,603,184 $ 169,528,269 $ 149,552,071 $ 132,845,705

Plan Fiduciary Net Position (FNP)
Contributions – employer $ 5,083,057 $ 5,311,479 $ 5,116,139 $ 4,837,893 $ 4,780,662 Contributions – employees 0 0 0 0 0
Benefit payments (5,083,057) (5,311,479) (5,116,139) (4,837,893) (4,780,662) Net investment income 0 0 0 0 0
Trust administrative expenses 0 0 0 0 0 Net change in Plan FNP $ 0 $ 0 $ 0 $ 0 $ 0 FNP – beginning $ 0 $ 0 $ 0 $ 0 $ 0
FNP – ending $ 0 $ 0 $ 0 $ 0 $ 0

Net OPEB Liability – ending $ 125,361,485 $ 160,603,184 $ 169,528,269 $ 149,552,071 $ 132,845,705

FNP as % of TOL 0.0% 0.0% 0.0% 0.0% 0.0% Covered-employee payroll –
measurement period $ 17,961,304 $ 18,267,199 $ 27,932,602 $ 24,225,987 $ 21,348,829 NOL as % of covered payroll 698.0% 879.2% 606.9% 617.3% 622.3%

2 Based on explicit benefit payment of $3,812,791 and estimated implicit subsidy payment of $1,270,266.

Financial Disclosures City of Compton

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Schedule of Changes in Net OPEB Liability (Continued)
Fiscal Year Ending June 30 2018
Measurement Period Ending June 30 2017
Total OPEB Liability (TOL)
Service Cost $ 4,163,800
Interest on TOL and Service Cost 4,156,698
Changes of benefit terms 0
Difference between expected &
actual experience 0
Changes of assumptions or other
inputs (12,626,584)
Benefit payments (4,686,600)
Net change in TOL $ (8,992,686)
TOL – beginning $ 140,532,171
TOL – ending $ 131,539,485

Plan Fiduciary Net Position (FNP)
Contributions – employer $ 4,686,600
Contributions – employees 0
Benefit payments (4,686,600)
Net investment income 0
Trust administrative expenses 0
Net change in Plan FNP $ 0
FNP – beginning $ 0
FNP – ending $ 0

Net OPEB Liability – ending $ 131,539,485

FNP as % of TOL 0.0%
Covered-employee payroll –
measurement period $ 21,284,889
NOL as % of covered payroll 618.0%
Financial Disclosures City of Compton

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Table 4 - Net OPEB Liability Sensitivity (Discount Rate) 1% Decrease
(2.69%) Discount Rate
(3.69%) 1% Increase
(4.69%)
Net OPEB Liability / (Asset) $ 143,811,163 $ 125,361,485 $ 110,387,898

Table 5 - Net OPEB Liability Sensitivity (Healthcare Trend Rates) 1% Decrease Healthcare Trend Rates3 1% Increase
Net OPEB Liability / (Asset) $ 108,199,459 $ 125,361,485 $ 146,816,349

3 Comparison of Baseline, 1% Decrease, and 1% Increase in healthcare trend rates assumptions are as shown below. Refer to Section 5 on the actual premium increases from 2021 to 2022 reflected in last year’s valuation and from 2022 to 2023 used in this roll-forward report.

Periods 1% Decrease Baseline 1% Increase
Non-Medicare Actual premium increases through 2023 less 1% followed by 4.50% decreasing to 3.04% ultimate rate by 2075
Actual premium increases through 2023 followed by

5.50% decreasing to 4.04% ultimate rate by 2075
Actual premium increases through 2023 plus 1% followed
by 6.50% decreasing to 5.04% ultimate rate by 2075
Medicare Actual increases through 2023 less 1% followed by 4.30% decreasing to 3.04% ultimate rate by 2075
Actual premium increases through 2023 followed by

5.30% decreasing to 4.04% ultimate rate by 2075
Actual increases through 2023 plus 1% followed 6.30%
decreasing to 5.04% ultimate rate by 2075

Financial Disclosures City of Compton

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Deferred Inflows and Deferred Outflows of Resources Related to OPEB The tables below show changes in the Net OPEB Liability that have not been included in the OPEB expense for the following items:

1. Differences between expected and actual experience of the OPEB plan

2. Changes in assumptions

Table 6 - Historical Deferred Inflows and Outflows
Differences between expected and actual experience
Measurement
Period Ending
Fiscal Year
Ending Initial Balance
Initial
Amortization
Period
Annual Recognition
Recognized in OPEB
Expense through
June 30, 2022
Unamortized Balance
as of June 30, 2022
6/30/2018 6/30/2019 $ 0 N/A $ 0 $ 0 $ 0
6/30/2019 6/30/2020 $ 2,970,500 4.15 $ 715,783 $ 2,863,132 $ 107,368 6/30/2020 6/30/2021 $ (135,090) 4.15 $ (32,552) $ (97,656) $ (37,434) 6/30/2021 6/30/2022 $ (36,390,352) 4.00 $ (9,097,588) $ (18,195,176) $ (18,195,176) 6/30/2022 6/30/2023 $ (2,739,681) 4.00 $ (684,920) $ (684,920) $ (2,054,761) Financial Disclosures City of Compton

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Changes in assumptions or other inputs
Measurement
Period Ending
Fiscal Year
Ending Initial Balance
Initial
Amortization
Period
Annual Recognition
Recognized in OPEB
Expense through
June 30, 2022
Unamortized Balance
as of June 30, 2022
6/30/2018 6/30/2019 $ (2,374,728) 4.25 $ (139,688) $ (2,374,730) $ 0 6/30/2019 6/30/2020 $ 9,929,633 4.15 $ 2,392,683 $ 9,570,732 $ 358,901 6/30/2020 6/30/2021 $ 15,907,862 4.15 $ 3,833,220 $ 11,499,660 $ 4,408,202 6/30/2021 6/30/2022 $ 22,913,092 4.00 $ 5,728,273 $ 11,456,546 $ 11,456,546 6/30/2022 6/30/2023 $ (35,687,653) 4.00 $ (8,921,913) $ (8,921,913) $ (26,765,740)

Differences between projected and actual earnings on OPEB plan investments Measurement
Period Ending
Fiscal Year
Ending Initial Balance
Initial
Amortization
Period
Annual Recognition
Recognized in OPEB
Expense through
June 30, 2022
Unamortized Balance
as of June 30, 2022
6/30/2018 6/30/2019 $ 0 5.00 $ 0 $ 0 $ 0
6/30/2019 6/30/2020 $ 0 5.00 $ 0 $ 0 $ 0
6/30/2020 6/30/2021 $ 0 5.00 $ 0 $ 0 $ 0
6/30/2021 6/30/2022 $ 0 5.00 $ 0 $ 0 $ 0
6/30/2022 6/30/2023 $ 0 5.00 $ 0 $ 0 $ 0

Financial Disclosures City of Compton

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4 Based on actual benefit payment of $5,113,269 (including implicit subsidy credit).

The table below shows the unamortized balance of Deferred Inflows and Outflows of Resources as of June 30, 2022 for financial statement disclosure for the fiscal year ending June 30, 2023.

Table 7 - Unamortized Balance of Deferred Inflows and Outflows Deferred Outflows
of Resources
Deferred Inflows of
Resources
Differences between expected and
actual experience $ 107,368 $ (20,287,371)
Changes in assumptions or other inputs 16,223,649 (26,765,740) Net difference between projected and
actual earnings on OPEB plan
investments
0 0
Employer contribution subsequent to the
Measurement Date 5,113,269 4 0
Total $ 21,444,286 $ (47,053,111)

Schedule of future annual amortizations of
Deferred Inflows and Outflows that will be
recognized in future OPEB expense is as
shown below.

Table 8 - Schedule of Future Deferred Inflows and
Outflows Amortization
Measurement
Period Ending Amounts
2023 $ (8,709,211)
2024 $ (12,406,048)
2025 $ (9,606,835)
2026 $ 0
2027 $ 0
Thereafter $ 0

Projected Benefit Payments City of Compton

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FYE Future
Retirees
Current
Retirees Total5 FYE Future
Retirees
Current
Retirees Total FYE Future
Retirees
Current
Retirees Total
2023 $ 504,334 $ 4,608,935 $ 5,113,269 2033 $ 2,785,692 $ 4,519,419 $ 7,305,111 2043 $ 4,548,849 $ 3,614,769 $ 8,163,618 2024 $ 789,275 $ 4,906,218 $ 5,695,493 2034 $ 3,105,182 $ 4,498,182 $ 7,603,364 2044 $ 4,765,400 $ 3,475,439 $ 8,240,839 2025 $ 1,052,777 $ 4,858,473 $ 5,911,250 2035 $ 3,229,054 $ 4,481,745 $ 7,710,799 2045 $ 4,848,960 $ 3,324,736 $ 8,173,696 2026 $ 1,269,926 $ 4,860,110 $ 6,130,036 2036 $ 3,363,941 $ 4,342,460 $ 7,706,401 2046 $ 4,916,121 $ 3,164,520 $ 8,080,641 2027 $ 1,485,540 $ 4,824,728 $ 6,310,268 2037 $ 3,583,903 $ 4,212,909 $ 7,796,812 2047 $ 5,050,922 $ 2,991,615 $ 8,042,537 2028 $ 1,697,508 $ 4,763,460 $ 6,460,968 2038 $ 3,809,009 $ 4,174,191 $ 7,983,200 2048 $ 5,002,299 $ 2,811,915 $ 7,814,214 2029 $ 1,930,288 $ 4,738,389 $ 6,668,677 2039 $ 3,870,424 $ 4,088,092 $ 7,958,516 2049 $ 5,073,968 $ 2,572,175 $ 7,646,143 2030 $ 2,138,947 $ 4,728,357 $ 6,867,304 2040 $ 4,058,507 $ 3,991,777 $ 8,050,284 2050 $ 5,092,339 $ 2,387,507 $ 7,479,846 2031 $ 2,387,396 $ 4,600,341 $ 6,987,737 2041 $ 4,307,713 $ 3,885,722 $ 8,193,435 2051 $ 5,107,457 $ 2,205,600 $ 7,313,057 2032 $ 2,593,614 $ 4,552,419 $ 7,146,033 2042 $ 4,488,626 $ 3,767,079 $ 8,255,705 2052 $ 5,081,990 $ 2,028,526 $ 7,110,516

5 Total benefit payment for FYE 6/30/2023 is based on explicit benefit payment of $3,792,444 and estimated implicit subsidy payment of $1,320,825. The benefit payment split between future and existing retirees has been estimated by our valuation software. $0$3$6$92023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045 2047 2049 2051MillionsProjected Benefit PaymentsCurrent RetireesFuture Retirees Projected Benefit Payments City of Compton

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FYE Explicit6 Implicit Total FYE Explicit Implicit Total FYE Explicit Implicit Total 2023 $ 3,792,444 $ 1,320,825 $ 5,113,269 2033 $ 5,450,272 $ 1,854,839 $ 7,305,111 2043 $ 6,444,546 $ 1,719,072 $ 8,163,618 2024 $ 4,226,891 $ 1,468,602 $ 5,695,493 2034 $ 5,649,855 $ 1,953,509 $ 7,603,364 2044 $ 6,524,540 $ 1,716,299 $ 8,240,839 2025 $ 4,391,475 $ 1,519,775 $ 5,911,250 2035 $ 5,761,023 $ 1,949,776 $ 7,710,799 2045 $ 6,548,371 $ 1,625,325 $ 8,173,696 2026 $ 4,558,611 $ 1,571,425 $ 6,130,036 2036 $ 5,794,911 $ 1,911,490 $ 7,706,401 2046 $ 6,545,266 $ 1,535,375 $ 8,080,641 2027 $ 4,692,900 $ 1,617,368 $ 6,310,268 2037 $ 5,888,172 $ 1,908,640 $ 7,796,812 2047 $ 6,570,860 $ 1,471,677 $ 8,042,537 2028 $ 4,819,902 $ 1,641,066 $ 6,460,968 2038 $ 6,029,314 $ 1,953,886 $ 7,983,200 2048 $ 6,493,587 $ 1,320,627 $ 7,814,214 2029 $ 4,970,558 $ 1,698,119 $ 6,668,677 2039 $ 6,089,144 $ 1,869,372 $ 7,958,516 2049 $ 6,436,794 $ 1,209,349 $ 7,646,143 2030 $ 5,102,383 $ 1,764,921 $ 6,867,307 2040 $ 6,199,196 $ 1,851,088 $ 8,050,284 2050 $ 6,373,456 $ 1,106,390 $ 7,479,846 2031 $ 5,208,390 $ 1,779,347 $ 6,987,737 2041 $ 6,332,690 $ 1,860,745 $ 8,193,435 2051 $ 6,303,226 $ 1,009,831 $ 7,313,057 2032 $ 5,321,078 $ 1,824,955 $ 7,146,033 2042 $ 6,419,242 $ 1,836,463 $ 8,255,705 2052 $ 6,212,731 $ 897,785 $ 7,110,516

6 Explicit benefit payment for FYE 6/30/2023 is based on the actual retiree healthcare expenses paid by the City. $0$3$6$92023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045 2047 2049 2051MillionsProjected Benefit Payments (Explicit/Implicit)ExplicitImplicit Substantive Plan Provisions City of Compton

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Section 4: Substantive Plan Provisions
Changes Since Prior Valuation
There are no plan provision changes reflected in this roll-forward report. For complete description of substantive plan provisions, refer to the City of Compton GASB 75 Disclosures for fiscal year ending June 30, 2022 report. Roll-forward valuation results shown in this report have been projected from the prior year’s valuation, with adjustments for actual premium and contribution changes since the prior year.

Substantive Plan Provisions City of Compton

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Premium Rates Monthly non-Medicare premium rates used in the valuation effective on January 1, 2021 and 2022 are shown below.

As of January 1, 2021 As of January 1, 2022
Regions Non-Medicare Plans Single 2-Party Family Single 2-Party Family Region 1 PERS Choice7 $ 935.84 $ 1,871.68 $ 2,433.18 $ 1,057.01 $ 2,114.02 $ 2,748.23 Region 2
BS Access+ $ 938.96 $ 1,877.92 $ 2,441.30 $ 900.22 $ 1,800.44 $ 2,340.57 Kaiser Permanente $ 669.77 $ 1,339.54 $ 1,741.40 $ 706.02 $ 1,412.04 $ 1,835.65 PERS Choice7 $ 783.19 $ 1,566.38 $ 2,036.29 $ 882.18 $ 1,764.36 $ 2,293.67 PERS Select8 $ 476.92 $ 953.84 $ 1,239.99 $ 587.78 $ 1,175.56 $ 1,528.23 PORAC $ 749.00 $ 1,499.00 $ 1,960.00 $ 775.00 $ 1,550.00 $ 2,010.00 Region 3
Anthem BC Select $ 639.10 $ 1,278.20 $ 1,661.66 $ 676.48 $ 1,352.96 $ 1,758.85 Anthem BC Traditional $ 984.21 $ 1,968.42 $ 2,558.95 $ 935.57 $ 1,871.14 $ 2,432.48 BS Access+ $ 834.88 $ 1,669.76 $ 2,170.69 $ 779.87 $ 1,559.74 $ 2,027.66 Blue Shield Trio $ 660.49 $ 1,320.98 $ 1,717.27 $ 668.13 $ 1,336.26 $ 1,737.14 Health Net Salud y
Mas $ 412.88 $ 825.76 $ 1,073.49 $ 463.87 $ 927.74 $ 1,206.06 Health Net SmartCare $ 691.48 $ 1,382.96 $ 1,797.85 $ 764.96 $ 1,529.92 $ 1,988.90 Kaiser Permanente $ 669.84 $ 1,339.68 $ 1,741.58 $ 719.78 $ 1,439.56 $ 1,871.43 PERS Choice7 $ 761.23 $ 1,522.46 $ 1,979.20 $ 863.37 $ 1,726.74 $ 2,244.76 PERS Select8 $ 459.94 $ 919.88 $ 1,195.84 $ 575.56 $ 1,151.12 $ 1,496.46 PERS Care7 $ 1,036.07 $ 2,072.14 $ 2,693.78 $ 863.37 $ 1,726.74 $ 2,244.76 PORAC $ 725.00 $ 1,450.00 $ 1,894.00 $ 775.00 $ 1,475.00 $ 1,894.00 United Healthcare9 $ 725.00 $ 1,450.00 $ 1,894.00 $ 771.85 $ 1,543.70 $ 2,006.81 Out of
State
Kaiser Permanente $ 1,040.15 $ 2,080.30 $ 2,704.38 $ 1,138.95 $ 2,277.90 $ 2,961.27 PERS Care7 $ 1,008.08 $ 2,016.16 $ 2,621.01 $ 847.71 $ 1,695.42 $ 2,204.05 PERS Choice7 $ 760.17 $ 1,520.34 $ 1,976.44 $ 847.71 $ 1,695.42 $ 2,204.05

7 PERS Platinum rates shown as of January 1, 2022.
8 PERS Gold rates shown as of January 1, 2022.
9 United Healthcare SignatureValue Alliance (SVA) rates shown as of January 1, 2022.

Substantive Plan Provisions City of Compton

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Premium Rates (Cont’d) This roll-forward report reflects actual premium changes from 2022 to 2023. Non-Medicare premium rates as of January 1, 2023 used to determine the trend adjustments are as shown below.

Regions Non-Medicare Plans Single 2-Party Family
Region 1 PERS Platinum $ 1,200.12 $ 2,400.24 $ 3,120.31 Region 2
BS Access+ HMO $ 842.61 $ 1,685.22 $ 2,190.79
Kaiser Permanente $ 756.21 $ 1,512.42 $ 1,966.15
PERS Platinum $ 1,014.80 $ 2,029.60 $ 2,638.48
PERS Gold $ 695.93 $ 1,391.86 $ 1,809.42
PORAC $ 820.00 $ 1,650.00 $ 2,100.00
Region 3
Anthem BC Select $ 737.91 $ 1,475.82 $ 1,918.57
Anthem BC Traditional $ 942.73 $ 1,885.46 $ 2,451.10
BS Access+ HMO $ 738.29 $ 1,476.58 $ 1,919.55
Blue Shield Trio $ 661.49 $ 1,322.98 $ 1,719.87
Health Net Salud y
Mas $ 606.34 $ 1,212.68 $ 1,576.48
Health Net SmartCare $ 755.29 $ 1,510.58 $ 1,963.75
Kaiser Permanente $ 754.64 $ 1,509.28 $ 1,962.06
PERS Platinum $ 992.59 $ 1,985.18 $ 2,580.73
PERS Gold $ 680.37 $ 1,360.74 $ 1,768.96
PORAC $ 820.00 $ 1,600.00 $ 2,100.00
United Healthcare SVA $ 790.46 $ 1,580.92 $ 2,055.20
Out of
State
Kaiser Permanente $ 1,155.43 $ 2,310.86 $ 3,004.12
PERS Platinum $ 1,003.90 $ 2,007.80 $ 2,610.14

Substantive Plan Provisions City of Compton

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Premium Rates (Cont’d) Monthly Medicare premium rates used in the valuation effective on January 1, 2021 and 2022 are as shown below.

As of January 1, 2021 As of January 1, 2022
Medicare Plans Single 2-Party Family Single 2-Party Family Anthem BC Medicare Preferred $ 383.37 $ 766.74 $ 1,150.11 $ 360.19 $ 720.38 $ 1,080.57 Anthem BC Select Medicare
Preferred $ 383.37 $ 766.74 $ 1,150.11 $ 360.19 $ 720.38 $ 1,080.57 Kaiser Permanente Senior
Advantage $ 324.48 $ 648.96 $ 973.44 $ 302.53 $ 605.06 $ 907.59 Kaiser Permanente Senior
Advantage (OOS) $ 317.48 $ 634.96 $ 952.44 $ 295.52 $ 591.04 $ 886.56 PERS Care Medicare Supplement10 $ 381.25 $ 762.50 $ 1,143.75 $ 381.94 $ 763.88 $ 1,145.82 PERS Choice Medicare
Supplement10 $ 349.97 $ 699.94 $ 1,049.91 $ 381.94 $ 763.88 $ 1,145.82 PERS Select Medicare
Supplement11 $ 381.25 $ 762.50 $ 1,143.75 $ 377.41 $ 754.82 $ 1,132.23 PORAC Medicare Supplement $ 513.00 $ 1,022.00 $ 1,635.00 $ 461.00 $ 919.00 $ 1,471.00 UHC Medicare Advantage $ 311.56 $ 623.12 $ 934.68 $ 294.65 $ 589.30 $ 883.95

10 PERS Platinum Medicare Supplement rates shown as of January 1, 2022. 11 PERS Gold Medicare Supplement rates shown as of January 1, 2022.

Substantive Plan Provisions City of Compton

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Premium Rates (Cont’d) This roll-forward report reflects actual premium changes from 2022 to 2023. Medicare premium rates as of January 1, 2023 used to determine the trend adjustments are as shown below.

Medicare Plans Single 2-Party Family
Anthem Medicare Preferred PPO $ 413.59 $ 827.18 $ 1,240.77 Kaiser Permanente Senior
Advantage $ 283.25 $ 566.50 $ 849.75
Kaiser Permanente Senior
Advantage (OOS) $ 274.03 $ 548.06 $ 822.09
PERS Platinum Medicare
Supplement $ 420.02 $ 840.04 $ 1,260.06
PERS Gold Medicare Supplement $ 392.71 $ 785.42 $ 1,178.13 PORAC Medicare Supplement $ 465.00 $ 1,030.00 $ 1,395.00 UHC Medicare Advantage PPO $ 299.68 $ 599.36 $ 899.04

Actuarial Methods and Assumptions City of Compton

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Section 5: Brief Summary of Actuarial Methods and Assumptions Changes Since Prior Valuation
All actuarial methods and assumptions used in this year’s roll-forward report are the same as those used in the City of Compton GASB 75 Disclosures for fiscal year ending June 30, 2022, except as noted below. Refer to the City of Compton GASB 75 Disclosures for fiscal year ending June 30, 2022 report for complete description of actuarial methods and assumptions.

Actuary’s Notes The following assumptions have been updated since the prior valuation:

1. The Single Equivalent Discount Rate (SEDR) has been increased from 1.92% as of June 30, 2021 to 3.69% as of June 30, 2022 based on updated municipal bond index, which caused a decrease in the liability.

2. Second year health care trend rates have been updated to reflect actual premium increases from 2022 to 2023 as shown below, which caused a decrease in the liability.

Active
Retirees
(Medicare Eligible) Retirees
(Medicare Ineligible) Member Spouse
Non-Medicare 6.50% 7.10% 7.00% 2.30%
Medicare 1.00% 0.30% 0.90% 9.50%

Valuation Date June 30, 2021
Measurement Date June 30, 2022
Reporting Period Fiscal year ending June 30, 2023
Discount Rate For accounting disclosure: 3.69% as of June 30, 2022 and 1.92% as of June 30, 2021 Refer to the Discussion of Discount Rate section for additional information on the discount rate setting.

Actuarial Methods and Assumptions City of Compton

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The baseline assumptions used in the Getzen model are as shown in the table below.

Inflation Rate 2.5%
Real GDP Per Capita Growth 1.5%
Excess Medical Cost Growth 1.1%
Health Share of GDP Resistance Point 25.0%
Year for Limiting Cost Growth to GDP Growth 2075

Actuarial Methods and Assumptions City of Compton

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Trend Rates (Cont’d) The output of the Getzen Model of Long-Run Medical Cost Trend Model used in the valuation is as shown below.

Year Trends Medicare Year Trends Medicare
2021 Actual 12 Actual 12 2035 5.18% 5.18%
2022 Actual 12 Actual12 2040 5.18% 5.18%
2023 5.50% 5.30% 2050 5.18% 5.18%
2024 5.40% 5.20% 2060 4.83% 4.83%
2025 5.36% 5.20% 2070 4.38% 4.38%
2030 5.18% 5.18% 2075+ 4.04% 4.04%

Discussion of Discount Rates
Under GASB 75, the discount rate used in valuing OPEB liabilities as of the Measurement Date for an unfunded plan is a single rate that reflects a yield or index rate for 20-year tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher (or equivalent quality on another rating scale). For the current year’s valuation, the municipal bond index as of the prior and current Measurement Dates are as shown below.

Index June 30, 2022 June 30, 2021
Fidelity GO AA 20 Years Municipal Index 3.69% 1.92%

The final equivalent single discount rate for accounting disclosure as of June 30, 2022 is 3.69%.

12 Actual premium increases from 2021 to 2022 reflected in last year’s valuation and from 2022 to 2023 used in this roll-forward report are as follows:

From 2021 to 2022 From 2022 to 2023
Active
Retirees
(Medicare
Eligible)
Retirees
(Medicare
Ineligible)

Active

Retirees
(Medicare Eligible)
Retirees
(Medicare
Ineligible) Member Spouse
Non-Medicare 3.40% 3.60% 2.30% 6.50% 7.10% 7.00% 2.30%
Medicare -3.10% -3.40% N/A 1.00% 0.30% 0.90% 9.50%

City of Compton

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Compton City CouncilJune 25, 2024

Compton City Council
June 25, 2024