Agenda Item A.4
CPMS CONSENT CALENDAR
Meeting Date: July 15, 2025
TO: Mayor and Councilmembers
SUBMITTED BY: Luke Rioux, Finance Director
PREPARED BY: Cecilia Rubio, Management Assistant
SUBJECT: Finance Department Professional Services Agreements and Amendments with HdL Coren & Cone, Hinderliter, De Llamas and Associates, and Foster and Foster
RECOMMENDATION:
A. Authorize the City Manager to execute Amendment No. 4 to Professional Services Agreement No. 2019 -057 with HdL Coren & Cone for property tax management, information, and audit services, increasing the contract authority by $14,945 for a total not-to-exceed amount of $94,960 with a term expiring June 30, 2026.
B. Authorize the City Manager to execute Amendment No. 4 to Professional Services Agreement No. 2018 -125 with Hinderliter, De Llamas and Associates for ongoing professional consulting, monitoring and compliance services related to cannabis businesses, increasing the contract authority by $ 158,000 for a total not -to-exceed amount of $542,000 with a term expiring June 30, 2026.
C. Authorize the City Manager to execute Amendment No. 1 to Professional Services Agreement No. 2022-111 with Foster & Foster Actuaries and Consulting for ongoing professional consulting services related to the valuation of post-retirement medical benefits provided to eligible employees, increasing the contract authority by $ 19,450 for a total not-to-exceed amount of $46,200 with a term expiring June 30, 2028.
BACKGROUND:
HdL Coren & Cone - Property Tax Services
On June 30, 2019, the City Manager executed Agreement No. 2019-057 between the City and HdL Coren & Cone (HdLCC) to provide annual professional property tax management, information, and audit services for an amount not -to-exceed $24,300 and a term ending June 30, 2021. On July 8, 2021, the City Manager executed Amendment No. 1 to extend the term to June 30, 2022, and increased the total not-to-exceed amount by $12,400 to $36,700. On June 21, 2022, the City Council authorized Amendment No. 1 Meeting Date: July 15, 2025
2 to increase the total not-to-exceed amount by $13,315 to $50,015 and extend the term of the agreement to June 30, 2023. On June 20, 2023, the City Council authorized Amendment No. 3 to extend the term of the agreement to June 30, 2025, and increased the total not-to-exceed amount by $30,000 to $80,015. The Amendments Nos. 1 through 3 are provided in Attachment 4.
City staff relies on the specialized expertise and resources of financial consultants and advisors to provide property tax management and audit services on revenues distributed from the County of Santa Barbara. The management services include providing quarterly reports and monthly updates to assist with budget forecasting and detail ed property tax analysis. The consultant also provides a property tax database, which allows staff to review parcel information and land o wnership. The audit services include identifying, correcting, and recovering any misallocated property tax revenues.
Hinderliter, De Llamas and Associates - Cannabis Compliance Services
In December 2018, the City Manager executed Agreement No. 2018-125 between the City and Hinderliter, De Llamas and Associates (HDL) to provide professional cannabis consulting services and expertise in the development and revision of cannabis ordinances and program implementation. Services also include assistanc e with regulatory compliance licensing review s, as well as optional compliance inspections and financial and tax audit services. The processing of cannabis business licenses is a multi - departmental work effort, involving Finance, H uman Resources/Risk Manag ement, Planning, Building and Safety, and Public Safety. Contracting with HDL provides the supplemental staffing support and expertise needed for proper review for compliance with state and local law.
The original agreement with HDL was in the not-to-exceed amount $30,000 and expired June 30, 2019. On June 4, 2019, Amendment No. 1 extended the term of Agreement 2018-125 to June 30, 2021, and increased the total not -to-exceed amount to $154,000.
On June 15, 2021, the City Council authorized Amendment No. 2 to extend the term of the agreement to June 30, 202 3, and increased the total not -to-exceed amount by $170,000 to $324,000. On October 3, 2023, the City Council authorized Amendment No. 3 to extend the term of the agreement to June 30, 2025, and increased the total not-to- exceed amount by $60,000 to $384,000. Amendments Nos. 1 through 3 are provided in Attachment 5.
Foster & Foster Actuaries and Consulting – Actuarial Consulting Services
On December 21, 2022, the City Manager executed Agreement No. 2022-111 with Foster & Foster for professional actuarial services related to Other Post -Employment Benefits (OPEB) for an amount not-to-exceed $26,750 and a term ending date of December 31, 2024. This included the development of funding valuation reports, updated OPEB liability disclosures, and the preparation of Government Accounting Standards Board ( GASB) Statement No. 75 valuation reports. These reports are essential for the preparation of the City’s annual audit and financial statements.
2 Meeting Date: July 15, 2025
The City is required to fulfill the GASB Statement No. 75, which establishes standards for measuring and disclosing liabilities associated with OPEB separate from pensions, such as retiree medical benefits. These actuarial valuations are required to be completed at least biennially and are incorporated into the City’s Annual Comprehensive Financial Report (ACFR).
Services under this agreement include actuarial valuations, accounting reports for GASB Statement No. 75 compli ance, review of post -retirement healthcare benefits, and consultation on funding strategies, assumptions, and policy considerations. These deliverables support the City’s financial transparency, compliance, and long -range planning. The original agreement is provided in Attachment 6.
DISCUSSION:
HdL Coren & Cone - Property Tax Services
The existing agreement expired June 30, 2025 . The services provided under contract include all-inclusive property tax management services, a review of property tax revenues due to the City, and assistance with future revenue projections. The consultant review services include , but are not limited to, the preparation of the Gann limit calculation, quarterly reports, web-based software with individual parcel information, and identification and correction of any county errors resulting in the misallocation of tax.
The City is satisfied with HdLCC’s serv ices and their continued responsiveness, and therefore, staff is recommending that the City Council approve and authorize the City Manager to execute Amendment No. 4 to Professional Services Agreement No. 2019 - 057 with HdLCC for property tax management, in formation, and audit services , retroactively extending the term of the agreement to June 30, 2026 , and increasing the contract authority by $14,945. The proposed Amendment No. 4 is provided in Attachment
1. Agreement No. 2019-057 and prior amendments are included in Attachment 4.
Hinderliter, De Llamas and Associates - Cannabis Compliance Services
The existing agreement expired June 30, 2025. Their expertise is necessary for ongoing cannabis application reviews, on-site inspections, monitoring, and compliance, as well as financial audits of cannabis business license applicants.
Staff is recommending that the City Council authorize the City Manager to execute Amendment No. 4 to Professional Services Agreement No. 2018-125 with Hinderliter, De Llamas and Associates, retroactively extending the term of the agreement to June 30, 2026, and increasing the contract authority by $158,000. The consultant will continue to review applications , provide preliminary and final site inspections , and tax audits as necessary in accordance with Goleta Municipal Code Chapter 5.09 (Commercial Cannabis Businesses) and 3.08 (Cannabis Business Tax) . The proposed Amendment No. 4 is provided in Attachment 2. Agreement No. 2018-125 and prior amendments are included in Attachment 5.
3 Meeting Date: July 15, 2025
Foster & Foster – Actuarial Consulting Services
The existing agreement expired December 31, 2024 . Foster & Foster’s services have been timely, accurate, and well aligned with annual audit requirements and the preparation of the ACFR.
The City is satisfied with the quality and responsiveness of Foster & Foster actuarial services, and therefore, staff recommend retroactively extending the agreement through June 30, 2028, and increasing the contract authority by $19,450 for a new not-to-exceed amount of $46,200. The extended term will align with the City’s long-term financial planning cycles and ensure continuity of service for the next cycle of actuarial reports, consultation on revised assumptions, and ongoing support through multiple fiscal years.
The proposed Amendment No. 1 is provided in Attachment 3. The original agreement (No. 2022-011) is provided in Attachment 6.
FISCAL IMPACTS:
The cost of all three amendments is supported by the City’s General Fund and has sufficient budget appropriations that were included as part of the recent budget adoption.
The following table summarizes the recommended amendments described above.
Vendor Current
Amount
Amended
Amount
Total Not-To-
Exceed
GL 101-30-3100-51200 (Professional Services)
HdL Coren & Cone
(Property Tax)
$80,015 $14,945 $94,960
HDL (Cannabis
Compliance)
$384,000 $158,000 $542,000
Foster & Foster (GASB 75) $26,750 $19,450 $46,200
Total $490,765 $192,395 $683,160
ALTERNATIVES:
The City Council may choose not to approve one or more of the recommended amendments and agreements discussed herein; however, this would result in significant delays in critical work related to property tax revenues, cannabis compliance and auditing, and actuarial reporting. Delays may impact budget accuracy, regulatory enforcement, and compliance with GASB No. 75 reporting deadlines.
LEGAL REVIEW BY: Isaac Rosen, City Attorney
APPROVED BY: Robert Nisbet, City Manager
4 Meeting Date: July 15, 2025
ATTACHMENTS:
1. Amendment No. 4 to Professional Services Agreement No. 2019-057 HdL Coren & Cone
2. Amendment No. 4 to Professional Services Agreement No. 2018-125 Hinderliter, De Llamas and Associates
3. Amendment No. 1 to Agreement No. 2022-111 Foster & Foster Consulting Actuaries Inc.
4. Professional Service s Agreement No. 2019 -057 with HdL Coren & Cone and Amendments No. 1 through No. 3
5. Professional Service s Agreement No. 201 8-125 Hinderliter, De Llamas and Associates and Amendments No. 1 through No. 3
6. Professional Service s Agreement No. 2022-111 Foster & Foster Consulting Actuaries Inc.
5 ATTACHMENT 1
Amendment No. 4 to Professional Services Agreement No. 2019-057 with HdL Coren & Cone
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AMENDMENT NO. 4
TO A PROFESSIONAL SERVICES AGREEMENT
BETWEEN THE CITY OF GOLETA
AND HDL COREN & CONE
This Amendment No. 4 to the Professional Services Agreement by and between the City of Goleta, a municipal corporation (“City”) and HDL Coren & Cone (“Consultant”) dated July 17, 2019 (“Agreement,” Agreement No. 2019-057) is made on this 15th day of July, 2025.
SECTION A. RE CITALS
1. This Agreement is for the property tax management, information and audit services; and
2. This Agreement has been amended to provide additional compensation for continued tasks, update the fixed annual fee, and extend the termination date of the agreement (Amendment No. 1, 2, and 3); and
3. The Agreement currently provides in Section 3 Subsection (a) for the total compensation amount not to exceed $80,015; and
4. The parties desire to amend the Agreement so as to provide for additional compensation in the amount of $14,945 for continued tasks; and
5. The Agreement currently provides in Section 6 for the termination of the Agreement on June 30, 2025; and
6. The parties desire to retroactively amend this Agreement so that this Amendment is effective as of June 30, 2025, and the term of the Agreement extends to June 30, 2026; and
7. The Agreement currently provides in Exhibit A-3 entitled “Scope of Services” the complete and particular description of services; and
8. The parties desire to amend Exhibit A-3 of the Agreement to identify the new fixed annual fee for Base Services, attached as Exhibit "A-4"; and
9. The City Council approved this Amendment No. 4, on this 15th day of July, 2025.
SECTIONB.AMENDEDTERMS
Nowtherefore CityandConsultantretroactivelyagreethattheAgreementbe,and herebyis,amendedasofJune30,2025asfollows:
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1. Subsection (a) of Section 3. COMPENSATION AND PAYMENTof the Agreementisamendedtoaddanadditionalauthorizedamountof$14,945and toreadinitsentirety:
Maximum and Rate . The total compensation payable to
CONSULTANT by CITY for the services under this AGREEMENT SHALL NOT EXCEEDthe sum of $94,960 (herein "not-to-exceed amount") and shall be earned as the work progresses on the followingbases.
Consultant shall provide the Base Services as described in the ScopeofServices,attachedasExhibit“B”,forafixedannualfeeof $14,945perfiscalyear(invoicedquarterly).Consultantshallbepaid 25percentofmisallocatedrevenueidentifiedintheaudit.Consultant shallseparateandsupporttaxreallocationandprovideCitywithan itemized invoice showing all amounts due as a result of revenue recoveryandreallocation.CityshallpayauditfeesafterConsultant’s submittal of evidence that corrections have been made by the appropriateagency.PaymenttotheConsultant shallbemadeafter City receives its first remittance advice during the fiscal year for whichthecorrectionapplies.
(a) Payment. CONSULTANT shall provide CITY with written verification of the actual compensationearned, whichwritten verification shall be in a form satisfactory to City’s Project Manager, as described in Section 5. Invoices shall be made nomorefrequentlythatonamonthlybasis,anddescribethe
workperformed(includingalistofhoursworkedbypersonnel
classification). All payments shall be made within 30 days afterCity’sapprovaloftheinvoice.
2. Section6. TERM,PROGRESSANDCOMPLETION oftheAgreementis amendedtoextendthetermforanadditionalone(1)yeartoreadinitsentirety:
The term of this Agreement is from the date first writtenaboveto June30,2026, unlessthetermofthisAgreementisextendedortheAgreementisterminatedas providedforherein.
CONSULTANTshallnotcommenceworkontheservicestobeperformeduntil(i) CONSULTANTfurnishesproofofinsuranceasrequiredbySection10below,and (ii)CITY gives written authorization to proceed with the work provided by CITY’s ProjectManager. AllservicesshallbecompletedwithinthetermofthisAgreement followingthenoticetoproceed.
3. ThisAgreementisamendedtodeleteandreplaceinitsentirety:
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ExhibitA-3“ScopeofServices ”with ExhibitA-4“ScopeofServices” attached heretoandincorporatedherein.
4. Exceptasotherwisespecificallyprovidedherein,allotherprovisionsofthe Agreementshallremaininfullforceandeffect.
Inconcurrenceandwitnesswhereof ,thisAmendmentNo.4hasbeenexecuted bythepartieseffectiveonthedateandyearfirstabovewritten.
CITYOFGOLETA CONSULTANT
____________________________ ______________________________ RobertNisbet,CityManager PaulaCone,President
ATTEST:
_____________________________ ______________________________ DeborahLopez,CityClerk NicholeCone-Morishita,CFO
APPROVEDASTOFORM:
ISAACROSEN,CITYATTORNEY
_____________________________
ScottShapses,DeputyCityAttorney
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ExhibitA-4
PROPERTYTAXMANANGEMENT,INFORMATIONANDAUDITSERVICES
SCOPEOFSERVICES
Services provided include property tax management service, secured and unsecured parcelaudits,budgetprojections,andSuccessorAgencysupport.
ReportsandManagementAnalyses (1)
HdLCoren&Cone(HdLCC)willprovidethefollowingreports.Reportsarealsoavailable fromprioryearsifrequired.
A five-year history of the values within the City, and custom (city defined) geographicareas;
Alistingofthelargestvaluechanges,positiveandnegativebetweentaxyears; An annual parcel listing of properties with parcel number changes between tax yearsidentifyingparcelsplitsandcombines;
AlistingofthemajorpropertyownersfortheCityincludingthecombinedassessed valuesoftheirpropertyandpropertyusecodedesignation;
A listing and summary of property transfers which occurred since the lien date orderedbymonth;
A listing of parcels that have not changed ownership since the enactment of Proposition13;
AcomparisonofpropertywithintheCitybycountyuse-codedesignation; A multiple year comparison of growth by use code designation over a 5-year period;
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A listing by parcel of new construction activity to identify non-residential parcels with new construction activity and to provide reports for use in the City's preparationofProposition4and111StateAppropriationLimitcalculations; Alistingofabsenteeownerparcels;
Calculate an estimate of property tax revenue anticipated to be received for the current fiscal year by the City based upon the initial information provided by the Countyandsubjecttomodification. Thisestimateshallnotbeusedtosecurethe indebtednessoftheCity.
Analyses based on geo areas designated by the City to include assessed valuations and square footage computations for use in economic analysis and communitydevelopmentplanning.
TrackingofProposition8reductionsandrestorations
Mediansalepricedataforcurrentyearandprioryearsforcomparison Oneandfive-yearbudgetprojectionsforthecitygeneralfundandspecialdistricts.
Thisreportisinteractivefortaxmodeling.
Newslettersummaryforpublicandelecteddistribution.
SuccessorAgencyServices
SuccessorAgencyServicesincludingbutnotlimitedto:
Annual tax increment projections and, as requested, cash flow analysis for the SuccessorAgencybyProjectArea
ReviewofRedevelopmentObligationPaymentSchedules(ROPS)asrequested. Provide property tax information to the Oversight Board at the direction of the SuccessorAgency
Provideaccessto theOversightBoardtoCity andformer redevelopment agency documentsatthedirectionoftheSuccessorAgency
MonitortheCountydistributionoftax-sharingrevenuestothetaxingentitiesofthe formerredevelopmentagency
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Advice and consultation on the City/Successor Agency’s preparation of required reports, such as revenue projections; review of Recognized Obligation Payment Schedules (ROPS), submittals to the Oversight Board and/or County or State agencies,andneworrevisedlegislativerequirements
AnalysisoflegislativeandjudicialmattersimpactingRedevelopmentPropertyTax TrustFund(RPTTF)revenuestotheSuccessorAgencyandtotheCity.
Monthly/QuarterlyReportsandSystemUpdates
A listing of property tax appeals filed on properties in the City where data is availableforpurchasefromtheClerkoftheBoard.
A listing of property transfers that have occurred since the last report will be availablethroughthesoftwareprovidedandupdatedonamonthlybasis.
Web-BasedSoftware
HdLCCprovidesaweb-basedsoftwareapplicationtoclientsasauser-friendlytool toaccesstheCity’spropertytaxdata.HdLCCprovidesupdatestothedataportion oftheproductonmonthlybasistoreflectchangesinownership,updatedappeals filings,anddeedrecordings.
Asmodificationsandenhancementsaremadetotheprogram,clientsreceivethe enhancedversionofthesoftwareatnoadditionalcost.Trainingwillbeprovidedto city staff within the first two months after the execution of the agreement for propertytaxmanagementandauditservicesandisavailableannuallyfornewstaff members or staff requiring a refresher course. If additional training sessions are required,thefeesinthecompensationsectionunderhourlyfeeswillbecharged.
IdentificationandCorrectionofErrors
HdL Coren & Cone has the technology, methodology and trained staff to analyze all secured parcels within the City to identify costly errors resulting in the misallocation of propertytaxes.
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Thecompanyauditsthesecuredandunsecuredpropertytaxrollstoensurethateachis codedtotheappropriatetaxingentity.ThecompanyperformsananalysisoftheAssessor Rolls to identify all parcels on both the secured and unsecured tax rolls and verify that parcelassessedvaluationsandtheresultingtaxesarecorrectlyallocatedtotheCity.This analysis is accomplished through the use of specialized computer software, GIS maps, assessor maps, city maps, city records, other pertinent documents, and field investigations.
FeeforServices
HdLCCshallprovidetheBaseServicesdescribedaboveforafixedannualfeeof$14,945 (invoiced quarterly). The fee is based on the number of parcels in the City of Goleta (10,247parcels).
The BaseFixedFee shallbeadjusted annuallyby the California Consumer Price Index (CCPI)forallitemsasdeterminedbytheCaliforniaDepartmentofIndustrialRelationsas measuredFebruarytoFebruarybytheCaliforniaAllUrbanConsumersindex.
On-GoingConsultation
Duringthe term of the contract, we serve as the resourcestaffto the Countyor agency on questions relating to property tax. This includes being "on-call" to assist with any property tax issues. On-going consultation would include but not be limited to inquiries resolved through useof the City data base.Allrequestsfor informationbased upon the County’s property tax data sets are provided without additional costs. Special reports, additional research, or requests requiring additional computer programming may entail some additional costs. Attendance at City and/or Successor Agency meetings will be billedatourhourlyrates.
FeesforOptionalServicesshallbebilledatthefollowinghourlyrates:
Partner $250perhour
Principal $225perhour
Programmer $200perhour
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Associate $175perhour
SeniorAnalyst $125perhour
Analyst $90 perhour
Administrative $70 perhour
HourlyratesareexclusiveofexpensesandaresubjecttoadjustmentbyHdLCCannually.
OnJuly1stofeachyearHdLCCshallprovidetheCitywithanupdatedscheduleofhourly rates.Therateswillnotbeincreasedbymorethanfivepercent(5%)peryear.
IdentificationandCorrectionofErrors
Feesfortheidentificationandcorrectionoferrorsareonacontingentbasis,HdLCCshall receive 25 percent of general fund or tax increment property tax revenue or other revenuesattributableto theCity recoveredor reallocatedwhicharedirectlyor indirectly the result of an audit, analysis or consultation performed by HdLCC (including but not limitedtobaseyearvalueaudits;administrationoftaxsharingagreements;taxincrement allocation reviews; county allocation reviews). HdLCC shall separate and support said reallocationandprovide theCitywith anitemized invoiceshowing allamountsdue asa resultofrevenuerecoveryorreallocation.TheCityshallpayauditfeesafterContractor's submittal of evidence that corrections have been made by the appropriate agency.
Payment to HdLCC shall be made within thirty (30) days after the City receives its first remittanceadviceduringthefiscalyearforwhichthecorrectionapplies.
HdLCoren&Cone
120SStateCollegeBoulevard,Suite200
Brea,California92821
714.879.5000
14 ATTACHMENT 2
Amendment No. 4 to Agreement No. 2018-125 with Hinderliter, De Llamas and Associates
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AMENDMENT NO. 4
TO A PROFESSIONAL SERVICES AGREEMENT
BETWEEN THE CITY OF GOLETA
AND HINDERLITER, DE LLAMAS AND ASSOCIATES
This Amendment No. 4 to the Professional Services Agreement by and between the City of Goleta, a municipal corporation (“City”) and Hinderliter, De Llamas and Associates (“Consultant”) dated January 4, 2019 (“Agreement,” Agreement No. 2018-125) is made on this 15th day of July, 2025.
SECTION A. RE CITALS
1. This Agreement is for the professional cannabis consulting services; and
2. This Agreement has been amended to provide for additional compensation for continued services, update the scope of services and cost schedule, and extend the
termination of the agreement (Amendment No. 1, 2, and 3); and
3. The Agreement currently provides in Section 3 Subsection (a) for the total compensation amount not to exceed $384,000; and
4. The parties desire to amend the Agreement so as to provide for additional compensation in the amount of $158,000 for continued tasks; and
5. The Agreement currently provides in Section 6 for the termination of the Agreement on June 30, 2025; and
6. The parties desire to retroactively amend this Agreement so that this Amendment is effective as of June 30, 2025, and the term of the Agreement extends to June 30,2026; and
7. The Agreement currently provides in Exhibit A-2 entitled “Scope of Services”; and
8. The parties desire to amend Exhibit A-2 of the Agreement, so as to identify the new Scope of Services, attached as Exhibit "A-3”; and
9. The Agreement currently provides in Exhibit B-2 entitled “Cost Schedule”; and
10.The parties desire to amend Exhibit B-2 of the Agreement, so as to identify the new Cost Schedule, attached as Exhibit “B-3"; and
11.The City Council approved this Amendment No. 4, on this 15th day of July, 2025.
SECTION B. AMENDED TERMS
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Now thereforeCityandConsultantretroactivelyagreethattheAgreementbe,and herebyis,amendedasofJune30,2025asfollows:
1. Subsection (a) of Section 3. COMPENSATION AND PAYMENT of the Agreement is amended to add an additional authorized amount of $158,000 andtoreadinitsentirety:
(a) Maximum and Rate . The total compensation payable to CONSULTANT by CITY for the services under this AGREEMENT SHALL NOT EXCEED thesumof$542,000(herein"not-to-exceed
amount")andshallbeearnedastheworkprogresses.
ConsultantshallprovidetheBaseServicesasdescribedinthe
ScopeofServices,attachedasExhibit“A-3”.
Hourly at the hourly rates and with reimbursement to
CONSULTANT for those expenses set forth in
CONSULTANT's Cost Schedule marked Exhibit "B-3,"
attached and incorporated herein. The rates and expenses setforthinthatexhibitshallbebindinguponCONSULTANT
untilJune30,2026,afterwhichanychangeinsaidratesand
expenses must be approved in writing by CITY's Project
Manager as described in Section 5 (CITY is to be given 60 daysnoticeofanyrateincreaserequest),providedthenotto
exceedamountisthetotalcompensationdueCONSULTANT
forallworkdescribedunderthisAGREEMENT.
2. Section 6. TERM, PROGRESS AND COMPLETION oftheAgreementis amendedtoextendthetermforanadditionalone(1)yeartoreadinitsentirety:
ThetermofthisAgreementisfromthedate firstwrittenabovetoJune30,2026, unlessthetermofthisAgreementisextendedortheAgreementisterminatedas providedforherein.
CONSULTANTshallnotcommenceworkontheservicestobeperformeduntil(i) CONSULTANTfurnishesproofofinsuranceasrequiredbySection10below,and (ii)CITYgiveswrittenauthorizationto proceedwiththeworkprovidedby CITY’s ProjectManager. AllservicesshallbecompletedwithinthetermofthisAgreement followingthenoticetoproceed.
3. ThisAgreementisamendedtodeleteandreplaceinitsentirety:
ExhibitA-2“ScopeofServices”withExhibitA-3“ScopeofServices”attached heretoandincorporatedherein.
4. ThisAgreementisamendedtodeleteandreplaceinitsentirety:
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ExhibitB-2“CostSchedule”withExhibitB-3“CostSchedule”attachedhereto andincorporatedherein.
5. Exceptasotherwisespecificallyprovidedherein,allotherprovisionsofthe Agreementshallremaininfullforceandeffect.
In concurrence and witness whereof,thisAmendmentNo.4hasbeenexecuted bythepartieseffectiveonthedateandyearfirstabovewritten.
CITY OF GOLETA CONSULTANT
____________________________ ______________________________ RobertNisbet,CityManager AndrewNickerson,President/CEO
ATTEST:
_____________________________ ______________________________ DeborahLopez,CityClerk RichardPark,CFO
APPROVED AS TO FORM:
ISAACROSEN,CITYATTORNEY
_____________________________
ScottShapses,DeputyCityAttorney
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EXHIBIT A – 3
SCOPE OF SERVICES
Objective 1: Attendance, Support or Presentations at Meetings or Workshops HdL shall provide attendanceor presentations atmeetings or workshopsasneeded or requested to help inform ongoing discussion of the City’s cannabis ordinance and associatedregulatoryprogram.Itisanticipatedthatthisobjectivemayincludemeetings withCouncilMembers,publicmeetingsoftheCityCounciland/orPlanningCommission, community workshops or other public meetings as may be requested. The use and scheduling of these meetings would be determined in consultation with City staff. This objective assumes that all meeting attendance would be virtual. Physical attendance wouldincuranadditionaltravelcharge.
Objective 2: Review Permit Renewal Applications
HdL shall review and evaluate all applications for annual cannabis business permit renewals.TheCityshallnotifyHdLuponreceiptofanapplicationforacannabisbusiness permitrenewalandshallforwardallrenewalapplicationmaterials.HdL’sreviewersshall evaluate whethertheapplicationiscompleteandprovidesallnecessaryand requested informationasrequiredbytheCity.Reviewsshallincludenarrativecommentsnotingany deficiencies. If an application is deemed incomplete, the applicant shall be given an opportunitytosubmitsupplementalinformationtoaddressanydeficiencies.
Each renewal application evaluation shall be completed within 60 days of the HdL receiving theapplication.Permitrenewalsare conditioneduponsatisfactorycompletion of regulatory compliance inspections. If the inspection identifies any changes to the physical layout of the facility, then the permit renewal may also require a site plan evaluation(Objective4).
Objective 3: Supplemental Background Checks
HdLshallprovidebackgroundchecksofallowners,principals,managersandemployees of cannabis businesses. Our background checks supplement the State-required Live Scan fingerprint check, which will only disclose Department of Justice (DOJ) records regarding arrests or convictions. California’s licensing agencies are only allowed to considerconvictionsforcertain“redline”offensessuchasseriousorviolentfelonies,or certain felonies involving fraud, minors or drug trafficking, as automatic disqualifiers beforegrantingordenyingalicense.
OursupplementalbackgroundchecksexpandupontheLiveScaninformationtoidentify otherfactorsthat localgovernmentsmaywish toconsiderbeforegrantingdiscretionary business licenses or permits. These considerations may include other felony offenses, misdemeanor convictions, arrest records, civil judgements, restraining orders, the terroristscreeningdatabase,thenationalsexoffenderregistry,delinquentchildsupport payments,bankruptcies,employmentandcreditrecords,andmore.Oursearchincludes 19 CityofGoleta
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upto5variationsonthesubject’snmeandwillalertifadditionalaliasesarefoundwhich mightwarrantfurtherinvestigation.
Ourcomprehensivebackground processchecksthesubject’snameand socialsecurity numberagainstover200milliondatasetsnationwide,includingallofthefollowing 1:
7yr.unlimitedcountycourtsandcriminalrecordssearch
SocialSecurity,nameandaddresscomparison
DMVsearch
NationalCriminalCourtreport
NationalSexoffenderregistry
Federalcriminalhistory
StateDepartmentofPublicSafety
StateDepartmentofCorrections
Terrorwatchlist
Bankruptcy,lienandjudgments
Delinquentchildsupportpayments
Employmentcreditreport
o Financialsummary
o Personalinformationcomparison
o Addresscomparison
o Employmentcomparison
o Creditbureaureport/credithistory
o Publicrecordssearch
Any felony convictions that would be automatic disqualifiers pursuant to B&P 26057 (Violent and Serious Felony Convictions) must be confirmed through the Live Scan process. The degree to which other records may be used to inform the approval or renewalofalocalbusinesslicenseorpermitissubjecttolocalordinancerequirements.
HdLoffersseparateratesforowners,principalsormanagersofcannabisbusinessesand for regular employeesor line staff.We alsooffera lowerrate forannualrenewalsafter the initial background check has been completed. Our rates include an HdL-designed employeeidentificationbadgewiththecityorcountylogowhichmeetsallStateregulatory requirements.
HdLprovidesanonlineportalforapplicantstosubmittheirapplicationandauthorization for background checks and all necessary documentation. Applicants provide their paymentdirectlytoHdLthroughtheportal,sothereisnocosttotheCity.
Background Checks Owner, Principal
or manager
Employee or
line staff
Initialbackgroundcheck $300 $125
Annualrenewal $125 $100
Reissuelostorstolenbadge $15 $15
Renewals and background checks for employeesinclude a lesser level of investigation. Prices valid as of the date of this proposal and subject to changewithoutnotice.
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1Renewalsandbackgroundchecksforemployeesincludealesserlevelofinvestigation.
Objective 4: Site Plan Evaluations
HdL shall review the premises diagram for each commercial cannabis business as needed or requested by the City to assist with the review of any permit renewal applications. The reviewshall ensure thatanychangesor modificationstothe physical layout ofthe facilityare compliantwith state law and local regulations and are properly reflected in the site diagram. The review shall specifically address all cannabis-related interior and exterior physical site security requirements including entrances and exits, productandcustomerflow,limitedaccessareas,locksandalarmsystems,surveillance cameralocations,safes,signage,andothercriteria.
HdL shall provide the City with a report identifying any variances from the premises diagramaspreviouslyapprovedanddetailinganydeficienciesorrecommendedchanges thatneedtobeaddressedpriortopermitrenewal.
Objective 5: Pre-License Site Visits
HdLshallreviewthepremisesdiagramandconductasitevisitofeachcannabisbusiness prior to issuance of a certificate of occupancy. Site visits shall complement the final buildinginspectionbyverifyingallinteriorandexteriorphysicalsitesecurityrequirements have been addressed in accordance with the application and all State and local requirements.Sitevisitsshallexamineallentrancesandexits,limitedaccessareas,locks andalarmsystems,accesscontrolprocedures,surveillancecameralocations,safesand cash management procedures, signage, operational protocols and administrative privileges associated with the license type(s) being sought, and other requirements as necessary. The HdL inspector may be accompanied on the inspection by the City’s buildinginspectororrepresentativesfromthePoliceDepartmentandFireDepartment,if desiredbytheCity.
The cost for this service includes an initial premises diagram review and report, coordination and arrangements with the business and other agencies, site visit, post- inspection report and any follow-up. This cost assumes 10-days advance notice for schedulingandtravelarrangements.TravelwillbechargedatHdLhourlyrates.
Objective 6: Regulatory Compliance Inspections
HdL will conduct a series of up to four on-site compliance inspections annually, as requested by the City, for each permitted cannabis business to determine compliance withStateand/orlocallaws.IfHdLidentifiesanynon-compliantactivities,wewillprovide theCitywitharecommendedappropriateactiontoaddressthedeficiencyandtoensure futurecompliancebythepermittee.Thecostforthisserviceincludesallofthefollowing:
Notifyingpermitteeofpendinginspection
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Fullon-siteinspectiontoensurethateachbusinesscomplieswithallStateand locallawsandregulatoryprotocolsforallofthefollowing:
o Inventorymanagement
o Cashhandlingprocedures
o Accesscontrol
o Videosurveillance
o Alarmsystemmaintenanceandsafety
o Lockstandards
o Packagingandlabeling
o Wastemanagement
o Transportationdocumentation
o Surveillanceequipmentmaintenance
o Occupationalbadges
o Businessrecords
o Otheritemsasnecessarytoensurecompliancewithlaws
Preparation of a draft report detailing the findings of the inspection and providing recommendations forimprovementwhere needed.Ifthe inspection identifiesany violations of law or other non-compliance issues, then HdL will prepareanoticetocomplyasanincludedpartofthereport.
All travel costs associated with the inspection, assuming a minimum of four inspections per day. If fewer than four inspections are requested, HdL will chargefortravelbaseduponhourlyrates.
All phone, email and other communications involved in preparing for, schedulingandcoordinatingtheinspectionsandprovidingthereport.
The cost for this service does not include any follow-up re-inspection or review of any supplementaldocumentsprovidedtoaddressorcontestanyfindingsofnon-compliance, nordoesitincludeanyassistancewiththeappealofanyenforcementactionbytheCity.
AnycostsassociatedwithsuchadditionalserviceswouldbebilledatHdL’shourlyrate.
Objective 7: Cannabis Revenue Audits
HdL will conduct an annual revenue audit of each cannabis business to verify the accuracyof therevenue reported andremitted to theCityduring thereviewperiod and will recommend a tax assessment should the audit reveal any unreported revenue. As part of the audit process, HdL will conduct a risk-based review of each businessusing our proprietary Cannabis Analytical Testing System (CATS™).CATS was designed by HdL to address the unique challenges associated with auditing the cannabis industry.
CATS allows audit staff to cross-analyze multiple businessrecordsto identify reporting variances, discrepancies and outliers to produce the most accurate measure of gross receiptsonbehalfoftheCity.
To initiate the process, the City shall provide HdL with a list of all licensed cannabis businesses subject to audit. HdL shall work with the City to determine the appropriate 22 CityofGoleta
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reviewperiodforeachbusinessandtodevelopascheduleforconductingallaudits.As the time for each audit approaches, HdL will prepare a notification letter informing the licenseeoftheimpendingauditandprovidingalistofallrecordsanddocumentationthe businessisrequired toprovide, including remote accessto the business’spoint-of-sale (POS) systemwhereapplicable.HdLrecommendsthattheletterbe sentbythe Cityto communicateHdL’sauthoritytoconducttheauditandtoencourage cooperationbythe business.
Thefullannualauditshallinclude:
ReviewPoint-of-Sale(POS)systemstructure
Reviewinventorysystem(subjecttoMETRCdata)
AnalyzeandcomparePOSdatawithotheravailabledatasources,including:
o Citycannabistaxreturns
o Statetaxreturns
o Federaltaxreturns
o METRCsalesandinventorydata
o CDTFAdata
o Bankstatements
o ATMorothermerchantstatements
o Salesreceipts
o Otherfinancialdocumentsasavailable
Identifyanyvariancesorover/underreporting
CalculateanytaxesorfeesduetotheCity
Prepareandissuereport
Wherecannabiscultivationistaxedonasquare-footagebasis,theauditshallincludeone annualsiteinspectiontoverifycompliancewithmaximumpermittedcanopyarea.Square footageauditsmayalsoconsiderdocumentedfindingsfrominspectionsbytheCity,DCC orotheragencies,whereavailable.
A business that holds multiple state cannabis licenses shall be considered a single businessforauditpurposes,providedthatalllicensesareheldandoperatedunderthe samename,ownership,location,andasingletaxIDnumber.Anyvariationmayindicate separate business entities requiring separate audits. Any such determination shall be madeonacase-by-casebasisinconsultationwiththeCity.
HdLwillprovideadraftauditreporttothecommercialcannabisbusiness.Thebusiness will be given an appropriate opportunity to respond or appeal the report in accordance withtheCityordinance.HdLwillreviewanydocumentationprovidedbythebusinessto disputethefindingsandwilladjustthetax/feeassessmentasnecessarypriortoissuing thefinalreporttotheCity.
The cost for this service assumes a standard 12-month review period. The cost for a longer term shall be increased per each additional 6-month period (2 fiscal quarters).
Pricingavailableuponrequest.Thiscostalsoassumesreasonablecooperationfromthe licensee. Non-cooperation by the licensee may result in additional charges at HdL’s 23 CityofGoleta
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hourly rate, or in termination of the audit and potential enforcement action by the City.
AnysuchactionoradditionalchargeswouldbedeterminedinconsultationwiththeCity.
Thecostdoesnotincludeassistancewithadministrativeappealsorenforcementofaudit findings, cannabis tax policy questions or guidance, or other services not directly associated with preparing the revenue audit report. Any costs associated with such additionalserviceswouldbebilledatHdL’shourlyrate.
Objective 8: Technical Assistance and Subject Matter Expertise HdL will provide additional hours of general consulting to be utilized on an as-needed basis at the City’s request. Such assistance may include technical assistance, subject matter expertise, education, monitoring of changes to State laws and regulations, participation in conference calls, responding to staff inquires via phone and email, reviewingstaffreportstotheCityCouncil,assistingwithresponsestoinquiriesfromthe public, or other issues yet to be determined as requested by the City. All technical assistanceshallbemutuallyagreeduponbybothpartiespriortoperformingservices.
Objective 9: Quality Assurance Application Reviews
HdLstaffwillconductaninitialscreeningofallapplicationsforcompletenessbasedupon an objective checklist of required documentation. This initial screening shall allow for some limited discretion in determining whether submitted documents are substantively complete but shall not otherwise consider the quality of the submissions. Applications deemedincompletewillbedisqualifiedandthoseapplicantswillnotbeallowedtosubmit anysupplementalinformation.
Applications which have been deemed complete will move forward for a full review, includingqualityassurancescoring.Applicantsmustprovidedetailedinformationonhow theyplantomeettherequiredcriteria.Anapplicant’spointscoreshallbebasedontheir demonstratedabilitytomeetorexceedminimumrequirementsineachcategory.Scoring shallbeinconformancewiththecriteriaestablishedbytheCity.
Reviewsshallincludenarrativecommentsthatidentifyanyweaknesses,deficienciesor areasofconcernforeachapplication.Reviewsshallbeadequatelydetailedtoinformthe subsequentselectionprocessbutshallnotcontainanyrecommendationsforapprovalor denial,otherthananumericalscore.
Proposedactionsdescribedintheapplicationsshallbeconsideredbindingconditionsof anyresultingpermit.Failuretomeetorcomplywithanysuchrequirementsafterapermit hasbeengrantedmaysubjecttheapplicanttopenaltiesand/orrevocationproceedings.
Thisobjectiveassumesanon-competitivequalityassuranceprocesswhereapplications are reviewed only to ensure that they have adequately addressed all required criteria.
This objective is offered here as an optional service. Engagement by HdL in any applicationreviewswouldrequiremutualagreementontheprocessinadvance. 24 CityofGoleta
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EXHIBIT B – 3
COST SCHEDULE
Onceundercontract,pricesshallbehonoredforthefirstfullyear,withsuccessiveyears subjecttoanannualincreasebasedupontheConsumerPriceIndexfortheLosAngeles- LongBeach-Anaheimregion.
Scope of Service Objectives Estimated
Cost
Objective 1: Attendance or Presentations at Meetings
Includesplanningandpreparationofapresentation
HourlyRate
Objective 2: Review Permit Renewal Applications $900
Objective 3: Supplemental Background Checks
CostpaiddirectlytoHdLbyapplicant
No Charge to
City
Objective 4: Site Plan Evaluations (Optional) $1,000 per evaluation
Objective 5: Pre-license Site Visits (Optional) $2,500
Objective 6: Regulatory Compliance Inspections $2,500
Objective 7: Cannabis Revenue Audits
Assumingstandard12-monthreviewperiod
$10,000
peraudit
Objective 8: Technical Assistance and Subject Matter Expertise HourlyRate Objective 9: Quality Assurance Application Reviews (Optional) Requiresmutualagreementonprocessinadvance
$5,000
perapplication
Travel (as needed for pre-license site visits and/or meeting attendance)
HourlyRate*
ESTIMATE OF TOTAL COSTS (assumes 1-year term) Review
PermitRenewalApplications(assumes10)RegulatoryCompliance Inspections(assumes10)CannabisRevenueAudits(assumes10)
SubjectMatterExpertise(assumes80hours@$300/hr)
$9,000
$25,000
$100,000
$24,000
TOTAL NOT TO EXCEED $158,000
*OrataflatratetobenegotiatedwiththeCity.
Theproposaldoesnotincludeanyadditionalservicesthatarenotspecifically enumeratedherein.TheproposalassumesHdLwillnotbeaskedtoreviewany supplementalinformationprovidedbyapplicants,andthatHdLwillnotbeapartofany enforcementaction,appeal,arbitration,orcivillitigationresultingfromthefindingsofan 25 CityofGoleta
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inspectionand/oraudit.Anysuchadditionalreports,documentationorassistancethat mayberequiredwouldbeinadditiontothecostsshowninthetableaboveandshallbe billedatHdL’shourlyrate.Thisincludesassistancewithadministrativehearingsand/or civillitigationinvolvingcannabisapplicantsorlicensees.
Hourly Rates for HdL Staff
ThepricesinthisproposalarecalculatedbasedonthehourlyratesforHdLstaffasshown inthechartbelow.Anyadditionalservicesrequestedbytheclientthatarenotspecifically describedinthisproposalwouldbebilledatHdL’sstandardhourlyrate.
HdL Staff Person Title Hourly Rate
StandardHourlyRate AllSubjectMatterExpertise $300
MattEaton DirectorofCannabisServices $300
MarkLovelace SeniorPolicyAdvisor $300
ElizabethEumurian AuditManager $300
BradSchneider ComplianceManager $300
ValerieCarter AuditSupervisor $275
TaoLu SeniorAuditor $250
KristiLervold ComplianceAdministrator $235
MichelleShaw ComplianceInspector $235
TeresaSchneider ComplianceInspector $235
JenniferErwin Auditor $235
DanteChegini AuditAnalyst $225
KevinNguyen AuditAnalyst $225
MichaelCimino AuditAnalyst $225
Allratescurrentasofthedateofthisproposal
26 ATTACHMENT 3
Amendment No. 1 to Agreement No. 2022-111 Foster & Foster Consulting Actuaries Inc.
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AMENDMENT NO. 1
TO A PROFESSIONAL SERVICES AGREEMENT
BETWEEN THE CITY OF GOLETA
AND FOSTER & FOSTER ACTUARIES AND CONSULTING
This Amendment No. 1 to the Professional Services Agreement by and between the City of Goleta, a municipal corporation (“City”) and Foster & Foster Actuaries and Consulting (“Consultant”) dated December 21, 2022 (“Agreement,” Agreement No. 2022-11) is made on this 15th day of July, 2025.
SECTION A. RE CITALS
1. This Agreement is for the actuarial consulting services for valuing post- retirement medical benefits provided to eligible employees of the City of Goleta; and
2. The Agreement currently provides in Section 3 Subsection (a) for the total compensation amount not to exceed $26,750; and
3. The parties desire to amend the Agreement so as to provide for additional compensation in the amount of $19,450 for continued tasks; and
4. The Agreement currently provides in Section 6 for the termination of the Agreement on December 31, 2024; and
5. The parties desire to retroactively amend this Agreement so that this Amendment is effective as of December 31, 2024, and the term of the Agreement extends to June 30, 2028; and
6. The Agreement currently provides in Exhibit A entitled “Scope of Work” the complete and particular description of services; and
7. The parties desire to amend Exhibit A of the Agreement to identify the new fixed annual fee for Base Services, attached as Exhibit "A-1"; and
8. The Agreement currently provides in Exhibit B entitled “Schedule of Fees” the hourly rates; and
9. The parties desire to remove Exhibit B of the Agreement and identify the new hourly rates attached in “Exhibit A-1”; and
10. The City Council approved this Amendment No. 1, on this 15th day of July, 2025. 28 CityofGoleta
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SECTION B. AMENDED TERMS
Now thereforeCityandConsultantretroactivelyagreethattheAgreementbe,and hereby is,amendedasofDecember31, 2024asfollows:
1. Subsection (a) of Section 3. COMPENSATION AND PAYMENT of the Agreementisamendedtoaddanadditionalauthorizedamountof$19,450and toreadin itsentirety:
(a) Maximum and Rate . The total compensation payable to CONSULTANT by CITY for the services under this AGREEMENT SHALL NOT EXCEED the sum of $46,200 (herein "not-to-exceed amount")andshallbeearnedastheworkprogresses.
The
CONSULTANT shall submit invoices monthly describing
the services performed, the date of services were performed, a description of the reimbursable costs, and any other
information requested by the City as set forth
in CONSULTANT's Scope of Work marked Exhibit
"A-1," attached and incorporated herein. The rates and
expenses set forth in that exhibit shall be binding upon CONSULTANT until June 30, 2028, after which any change
in said rates and expenses must be approved in writing
by CITY's Project Manager as described in Section 5
(CITY is to be given 60 days notice of any rate increase request), provided the not to exceed amount is the total compensation due CONSULTANT for all work described
under this AGREEMENT.
2. Section 6. TERM, PROGRESS AND COMPLETION oftheAgreementis amendedtoextendthetermforanadditionaltwo(2)yearstoreadinitsentirety:
The term of this Agreement is from the date first written above to June 30, 2028, unless the term of this Agreement is extended or the Agreement is terminated as provided for herein.
CONSULTANTshallnotcommenceworkontheservicesto be performeduntil(i) CONSULTANTfurnishesproofofinsuranceasrequiredbySection10below,and (ii) CITY gives written authorization to proceed with the work provided by CITY’s ProjectManager. AllservicesshallbecompletedwithinthetermofthisAgreement following thenoticetoproceed.
3. ThisAgreement isamendedtodeleteandreplace initsentirety:
Exhibit A “Scope of Work ”and Exhibit B “Schedule of Fees” with Exhibit A-1 “Scope of Work and Schedule of Fees” attachedhereto andincorporatedherein. 29 CityofGoleta
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4. Exceptas otherwisespecificallyprovidedherein, allotherprovisionsofthe Agreementshallremaininfullforceandeffect.
In concurrence and witness whereof,thisAmendmentNo.1hasbeenexecuted bythepartieseffectiveon thedateandyearfirst abovewritten.
CITY OF GOLETA CONSULTANT
____________________________ ______________________________ RobertNisbet, CityManager DrewBallard,SeniorConsultingActuary ATTEST:
_____________________________ ______________________________ DeborahLopez,CityClerk JonathanDavison,ChiefLegalOfficer APPROVED AS TO FORM:
ISAACROSEN,CITYATTORNEY
_____________________________
ScottShapses,DeputyCityAttorney
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Exhibit A-1
Scope of Work and Schedule of Fees
Foster& Fosterwouldbe pleasedtoprovidethe CityofGoletaactuarialconsulting services. Thislettersummarizestheprojectbackground,ourfees/timing,and data requirementsforaJune30,2026actuarialvaluationon theCity’sretireehealthcare plan.
Background
Foster& Fosterprepared aJune30,2024valuation.TheJune30,2026actuarial valuationwillprovidethe plan’sJune30,2026 fundedstatus,fiscalyear2026/27and 2027/28actuariallydeterminedcontributions,andthebasisforfiscalyear2025/26and 2026/27GASBS 75accountinginformation.GASBS75accountinginformation foreach fiscalyearwillbeprovidedin aseparate report.TheGASBS 75 reportswillincludeall actuarialinformationnecessaryforGASBS75includingNotes,RSI,supportingexhibits and calculations,andjournalentries.Wewillmeetwiththe City(virtually)to reviewthe resultsofeachreport.
Ourvaluationreportwillinclude:
Historicalvaluationresultsanddemographicinformation
Fundedstatus
Actuariallydeterminedcontributions
Reconciliationofassetvalues
Detailedgainandlosssincetheprior valuation
Illustrationofimplicitsubsidyincludingbreakoutof actuarialliabilities Longtermbenefitpayoutprojection
Benefitsummary
Detailedparticipant statistics,including summaryof healthcareplanand coverage elections
Fees/Timing
Project Fees
2024/25GASB75report(roll-forward) $2,750
6/30/2026valuationreportandmeeting 11,000
2025/26GASB75report 2,800
2026/27GASB75report(roll-forward) 2,900
Total $19,450
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Pleasenotethatourfeesassume:
The Cityhasmadenochangestoitsretireehealthcareplan orproviders since June 30,2024
Nosubstantialchangesoccurafterthevaluationdate whichwouldrequire revised actuarialassumptionsand/orplanprovisionsforGASBS75 Participant censusdatarequested willbeprovided completelyandaccurately inan ExcelworkbookbasedontheCalPERSOPEBData Extractwith 1 recordperparticipant
Allrequestedplan,financial,and census informationwillbeinternally consistent
Costsandliabilitieswillbeprovidedusing 1fundingmethodand1 setof assumptions
The Cityhasnot changeditsfundingpolicyofcontributingthefullADC Pleasenoteourfeesmaybe higherif:
Resultsareneededseparatelyforadditionalemployeegroupsoralternative plandesigns
AssistancewithfootnotesunderGASBS75beyondourGASBS 75reports (whichwillcontainallactuarialrelated informationneededforfootnotes) AchangeintheCity’sfundingpolicyrequiresacrossovertestunderGASBS 75 The Cityrequestsadditionalmeetingsoranyworkoutside the scopeof this letter
Additionalserviceswillbesubjecttothebelowhourlyrates.Ifadditionalworkis requested,wewillprovide afeequote.
Staff 2025 Hourly Rate
Senior Consulting Actuary $450
Consulting Actuary $400
Senior Actuarial Analyst $325
Actuarial Analyst $275
Data Requirements
General Information
Summaryof OPEBplanprovisionsandcopiesofthemostrecent MOUsfor bargainedemployee groupsandagreementsforunrepresentedgroups ifthey havechanged sinceJune 30,2024.
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The City’smostcurrentCalPERSPEMHCAresolution(s)ifchangedsince June 30,2024.
CalPERSOPEBDataExtract(seeinstructionsbelow)modified asdescribed below.
August 2026PEMHCAMonthlyEmployerBillingRoster.Pleaseremoveany SSNs.
Participant Census Data
The CityshouldobtainitsJune30,2026 CalPERSOPEBData Extract.Logintoyour myCalPERSaccountforEmployers&BusinessPartners.Thesystem accessrole requiredto requesttheextractisBusinessPartnerHealthContracts.Ifyouneedaccess tomyCalPERS,pleasecontactthe City’smyCalPERSSystemAdministrator.Once loggedin, selecttheHealthContractstab, thenselectthe OPEBData Extractlinkon the leftside toolbar.Allowforupto48hoursforthisrequesttobeprocessed, but typical turnaroundtimesarecloserto24hours.Tworeportswillbegenerated; oneforactive participantsandoneforretiredparticipants;pleasesendusboth.Toretrievethe reports, you'llneedto logbackinto themyCalPERSsystemthroughthesameprocess, asthesystemwillnotsendanotificationemailoncethereportsareavailable.
Onceyouhavesuccessfullydownloadedboththeactiveandretiredparticipant reports, pleasemodifytheExcelworkbooksbyadding columnswiththe following:
PERSablecompensation(activerecords)
Bargainingunitoremployee group(activeandretireerecords) Portion ofpremiumreimbursedbyCityoutsideofPEMHCA(retireerecords) Wemayneedadditionaldatadepending onourreview oftheCity’sretireemedicalplan design.We understand theabovedatarequestcouldseem extensive; weareavailable toassistoransweranyquestions.
Timing
Normally,thevaluationresultsmeetingissetabout 8weeksafterwereceiveallthe requested information,andtheCityrepliestoanyquestionswemayhaveafterour initialreviewoftherequesteddata.GASBS75reportswillbecompletedapproximately 3weeksafteryear-endinformationisreceived, provided wehavealreadycompleted the valuation.
33 ATTACHMENT 4
Professional Services Agreement No. 2019-057 with HdL Coren & Cone and Amendments No. 1 through No. 3
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ATTACHMENT 5
Professional Service Agreement No. 2018-125 Hinderliter, De Llamas and Associates and Amendments No. 1 through No. 3
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ATTACHMENT 6
Professional Service Agreement No. 2022-111 Foster & Foster Consulting Actuaries Inc.
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