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Proposal - GovInvest IncGovInvest Inc. RFP for Actuarial Consulting and Technology Services 1 Proposal for Actuarial Consulting and Technology Services TRANSPARENT SOLUTIONS FOR PENSION, OPEB and LABOR COSTING INFORMATION Prepared for: The City of La Quinta Prepared by: Jason Huk, Director GovInvest, Inc. 3625 Del Amo Blvd, Suite 200 Torrance, CA 90503 (310) 371‒7106 www.govinvest.com 2 Table of Contents A. Cover Letter 3 B. Background, Experience and Qualifications 4 1. Firm Brief: history, size, location, geographic focus, and structure of ownership 5 2. Firm Summary: experience and qualifications, financial planning, financial management, debt services, relevant services to California municipal clients 5-6 3. Firm Staff: personnel experience and relevant services 5-6 4. Firm Financials: position, reputation, and risk management 6 C. Approach to Work 7-12 D. Complete Pricing and Fee Schedule 13-14 E. References 15 F. Legal Issues and Potential Conflict of Interest 16 G. Services Included with Annual Software and GASB Reporting 16-18 H. Software Snapshots (not actual City images) 18-19 I. GovInvest Additional Services and Offerings 20-22 3 October 22, 2020 Attn: Claudia Martinez City of La Quinta GovInvest Inc. Tax ID: 47-1141591 3625 Del Amo Blvd. #200 Torrance, CA 90503 RFP for Actuarial Consulting and Technology Services Dear Claudia Martinez and the City of La Quinta, GovInvest Inc. is proposing to provide actuarial and technology services for the City of La Quinta. We believe that we are an excellent choice to provide all the required GASB 75 OPEB valuations and the GASB 68 Accounting Valuations, journal entries and appropriate disclosures and an actuarial technology solution to run analysis on the pension and OPEB plans of the City of La Quinta. Through innovative solutions, the efficient use of technology, and a focus on quality, we provide our clients with the highest level of support, consulting and financial analysis beyond the capability of any other technology firm or provider to meet the City’s needs. GovInvest Inc. has partnered with Van Iwaarden Associates for the actuarial valuation reports required by the City of La Quinta. Both firms have extensive experience in providing services for municipal governments, with Van Iwaarden having over 20 years of actuarial consulting experience and GovInvest having over 200 clients for both actuarial consulting and software in California. We provide all aspects of healthcare-related and pension actuarial services. The unique combination of experience, personal attention, personal investment in our respective companies, and competitive fees makes us an outstanding choice to provide actuarial consulting technology services for the City of La Quinta. The professional staff member assigned to obligate and negotiate for this project is: Jasmine Nachtigall-Fournier President, Co-Founder jasmine@govinvest.com (310)371-7106 The professional staff members assigned to serve as points of contact for this project are: Gina Ganab Consulting Actuary, Van Iwaarden Associates ginag@vaniwaarden.com Mark Schulte Consulting Actuary, Van Iwaarden Associates marks@vaniwaarden.com Jason Huk (Contract point of Contact) Director of Sales, GovInvest Inc. Jason@govinvest.com All information and pricing in the proposal will be valid through 90 days after the submission due date for the RFP by the City of La Quinta and any individual performing work by GovInvest for the City is free from any conflict of interest. Sincerely, Jasmine Nachtigall-Fournier President, GovInvest Inc. GovInvest Inc. RFQ for Actuarial Services 4 Background, Experience and Qualifications Firm Brief GovInvest is an actuarial technology company that delivers pension and retiree health (OPEB) analytics through the Total Liability Calculator. The Company was founded and incorporated in 2014 and has worked with over 200 CalPERS agencies and is currently operating across the United States in 9 different States to understand and analyze their pension and OPEB obligations. Many of our clients use our software to help municipal employers and staff analyze options to pay down their UAL. The power of the software extends the employer the ability to have more accurate and updated information than what a traditional actuarial or municipal advising firm provides in a static report. For our clients who require our service for GASB compliance and reporting, we have partnered with experienced actuarial consultants who can complete and certify the appropriate reports. Our internal customer support team will also assist with projecting results and download the analytics into spreadsheets, reports, PDFs and PowerPoint presentations to review with the clients for added value and service. GovInvest is a woman- and minority-owned small business employing 20+ skilled individuals focused on serving our clients, along with designing, developing, maintaining and operating our software. Our software and service model is designed to be used by thousands of agencies across the United States. GovInvest is partially funded through the GovTech Fund, which gives us the ability to grow to meet rising demands. GovInvest strategically partners with experienced actuaries, pension plan professionals, finance experts, employment law and labor relations firms, software engineers and various municipal finance associations across the U.S. to support education and proactive approaches towards managing financial issues. To better meet the City’s needs, GovInvest is partnering with Van Iwaarden Associates, who will serve as our subcontractor on this project. Van Iwaarden Associates was founded in 1991 and has grown to be one of the leading independent actuarial firms in the United States. Van Iwaarden Associates has been preparing public and private sector pension and OPEB valuations since its founding in 1991. Their clients include over 300 cities, counties, school districts and special districts. Their primary public-sector focus is in California and Minnesota. Van Iwaarden Associates is very familiar with the specific pension and OPEB environments in both states. They frequently consult with California clients regarding their pension and OPEB plans. Van Iwaarden Associates began consulting with California public agencies over 10 years ago when GASB 45 OPEB accounting statements were first introduced. This work evolved beyond actuarial valuations into plan design and cost-containment analyses to help agencies better understand and manage their OPEB obligations. Van Iwaarden Associates has also helped public agencies model their projected future pension costs. This includes CalPERS contributions, 1937 Act plan contributions, and stand-alone California municipal pension plans. Sample analyses include: • Estimating the effect of new actuarial assumptions on CalPERS contribution rates • Modelling alternative amortizations of unfunded pension liabilities • Sensitivity analysis of future contribution rates under different economic scenarios • Projected contribution effect of switching between CalPERS and a 1937 Act plan The combined power of GovInvest and Van Iwaarden delivers the best of both worlds. Our customer success team, engineers, retirement plan experts, and actuarial consultants are with your City every step of the way to provide the best advice and experience. Instant analysis when you want it and quality certified reports when required. This is a relationship that no other company can offer. There are several qualities that differentiate our approach from other actuarial firms. These are: GovInvest Inc. RFQ for Actuarial Services 5 • Experience: We have more depth and experience spread across our company and the United States compared to other independent firms. • Size and Scale: We are large enough to respond to client requests in a timely manner and produce reports, analysis and consulting advice efficiently and effectively. • Leadership and Awareness: We’ve built our firm on actionable insights and knowledge leveraging this information for our clients’ benefit. We’ve provided testimony on public pensions, and we stand frequent calls with the California State Controller’s Office (SCO) on OPEB financial reporting. • Practical Advice: Our consultants excel at explaining complex topics in the appropriate context so that our clients can make the best informed and proactive decisions. We believe that all agencies, regardless of size, must address similar issues: • Understand the extent of current pension and OPEB liabilities. • Develop strategies to control costs and prudently fund benefits; and • Clearly communicate costs and strategies to stakeholders and their constituents. Firm Summary GovInvest proposes to produce all the required GASB 75 valuations for Other Post Employment Benefits (OPEB) as well as GASB 68 Accounting Valuations for the City as well as provide our updated Total Liability Calculator (Pension & OPEB Modules), the actuarial technology solution to run analysis on the pension and OPEB plans unique to the City of La Quinta. GovInvest GASB Reports – GovInvest clients can rely on concise and easy to navigate reports for inclusion in their CAFR as required by GASB (and GFOA reporting requirements). Through GovInvest, Van Iwaarden Associates ensures that any OPEB related valuation data is gathered and reporting needs are met as required by City’s auditor. Firm Staff Jasmine Nachtigall-Fournier – President, GovInvest Inc. (Executive) Jasmine Nachtigall-Fournier is the Co-Founder and President of GovInvest Inc., an actuarial technology company that’s mission is to help governments better manage their unfunded pension and OPEB liabilities. Jasmine founded GovInvest in 2014 and has grown the company nationally to serve hundreds of public agencies, including the State of California. Prior to GovInvest, Jasmine served as the Development Director of California Common Sense, a non-profit dedicated to opening government to the public, developing data- driven policy analysis, and educating citizens about how their governments work. Jasmine has previously worked at PricewaterhouseCoopers in their Financial Services Advisory Consulting Practice, the World’s Fair in Shanghai, Code the Change, and New York University. Jasmine is a frequently requested speaker at several professional association meetings about pension and OPEB funding strategies including the California Society of Municipal Finance Officers (CSMFO), League of California Cities (LOCC), California State Association of Auditor Controllers (CALSACA), California Municipal Treasurers Association (CMTA), Independent Cities Association (ICA), Public Retirement Journal (PRJ), amongst others. Since 2005, Jasmine has raised hundreds of thousands of dollars for disaster relief and other charitable efforts. Jasmine served as an Olympic Torchbearer during the 2008 Beijing Olympics. Jasmine earned a BA in Economics from Stanford University. GovInvest Inc. RFQ for Actuarial Services 6 Gina Ganab, ASA, MAAA Gina is a consulting actuary with 14 years of experience. She’s known for her professionalism and passion for quality. She keeps us all focused on producing an accurate work product. Gina is located in Los Angeles, and we’re proud to have her represent us to our California clients. She has been instrumental in expanding our firm’s California consulting practice. Gina’s experience with consulting to California public agencies includes:  Actuarial funding and GASB accounting valuations for both pension and OPEB plans  CalPERS cost projection analyses and GASB 68 accounting valuations  Plan design analysis and non-qualified plan valuations Gina is an Associate of the Society of Actuaries (ASA) and a Member of the American Academy of Actuaries (MAAA). She double majored in mathematics and statistics, earning a B.S., summa cum laude, from Winona State University. Mark Schulte, FSA, EA, MAAA Mark is a consulting actuary with 20 years of experience and a co-owner of the firm. He’s known for his teaching skills, and loves helping others understand and solve tough problems. As a frequent speaker on pension/OPEB topics at conferences and to governing boards, Mark helps our clients better understand their retirement plan obligations. Mark keeps our team up to date on new developments in the pension and retiree medical fields, blogs on national pension/OPEB issues, and speaks frequently at retirement conferences. His latest quest is to develop new ideas for modernizing our nation’s public sector pension and OPEB systems. Mark’s recent public sector work includes:  Pension plan design studies and cost projections,  Development of pension and OPEB funding policies, and  Preparation of actuarial experience studies. Mark is a Fellow of the Society of Actuaries (FSA), an Enrolled Actuary (EA) and a Member of the American Academy of Actuaries (MAAA). He earned a B.A. in math, summa cum laude, from St. Olaf College. Firm Financials GovInvest has a strong financial position, with cash intake meeting or exceeding expenses. GovInvest has a robust reputation among California municipalities and beyond, with over 200 clients attesting to our experience and the value of our software. In terms of risk management, GovInvest has procedures in place to assure data security as well as physical office security. Our consulting services and financial services are audited by outside as well as internal actuaries and analysts to provide for risk management of our software calculations and reporting. GovInvest Inc. RFQ for Actuarial Services 7 Approach to Work At GovInvest, we understand that every client has their own goals, objectives, needs, and concerns. We use our experience and expertise to guide the development of client solutions. But, each approach is customized for each client. In this section, we are including our preliminary proposal for addressing the District’s concerns. Planning Meeting The lead members of the GovInvest team will be meeting with the City’s project team to: • Review the City’s goals and timing for Pension and OPEB analysis and presentation strategies through the software and the required OPEB reports and analysis • Outline the scope of the primary objective of the software and OPEB actuarial valuation services and preliminary analysis • Outline assumptions and data needs for the OPEB valuation and analysis • Agree on timing and deliverables After the meeting, GovInvest will document the items agreed to in the meeting and send our summary to the District for review and approval. Collect Data Soon after we are selected by the City to perform this analysis, we will send a detailed list of the information we will need to perform the OPEB valuation and preliminary analysis in addition to the software solution. This information includes: OPEB GASB 75 and Software Information Request: For Agencies providing retiree health benefits through the PEMHCA program administered by CalPERS. We will need the following items for the OPEB plan: • A copy of the latest OPEB valuation report produced by your current/ prior actuary. We would appreciate receiving more of the historical actuarial information, if it is easily accessible. • Copies of the appropriate pages of the employee handbook that provide a description of the current approved retiree health care benefits. If a summary of these plan provisions is available, please provide this as well. • Actual benefit payments paid directly by the City for the past two plan years. This would include health insurance premiums (medical, dental, vision, Rx, long-term care, and so on) as well as payments made directly for health-related expenses. • Contributions to plan assets for the last two plan years. • Statement of plan assets for the last two plan years (to qualify as “plan assets,” the assets must be (a) segregated from general assets, and (b) be restricted for use only to satisfy the obligation of the retiree medical plan). If the plan assets are invested through the California Employers' Retiree Benefit Trust (CERBT) Fund, let us know which investment strategy you have selected. Otherwise, please provide as much of the following information as possible: o The types of investments o The durations of the investments o The average return for each investment o The general investment strategy o Contributions o Investment earnings o Benefit payments GovInvest Inc. RFQ for Actuarial Services 8 o Administrative expenses • Statement of changes in plan assets over the previous year, including: o Contributions o Distributions o Administration fees o Interest o Gains or losses Please provide the following for active and retired employees, as applicable. Most of this information is available by requesting a data extract from CalPERS (see file “Instructions for Running myCalPERS Reports”). Unfortunately, some of the requested items (such as “salary” and “bargaining group”) are not available directly from CalPERS and would have to come from your HR administration system. Please include the CalPERS ID for each individual in each file sent. Active employees are those who are, or could become, eligible for retiree health benefits. We are aware that certain agencies allow former active employees (currently terminated or transferred) to receive retiree health benefits. If this is the case for your agency, please let us know. We may need additional information for these former employees. Pension Software Analysis Data Request: • Copies of the most recent CalPERS funding reports. • List of additional discretionary payments that the City has made to CalPERS since FY 2010/11. • Any Employer Paid Member Contributions (EPMC) not included in the CalPERS funding reports. • Any additional employee contributions not included in the CalPERS funding reports. • Any material changes in active employee counts or payroll that have occurred since the most recent CalPERS funding reports or are anticipated to occur. Perform Preliminary Analysis This will be the most time and personnel intensive portion of the project for GovInvest. The following outline will be used as a starting point, which we will refine in the Planning Meeting. Approach and Methodology for Pension Actuarial Analysis (Pension Module) Project Metrics: • Classifications o Miscellaneous o 115 Trust o Total • Funding Level o Unfunded Actuarial Liability o Funded Percentage GovInvest Inc. RFQ for Actuarial Services 9 • Contributions o Employer Contributions  Normal Cost – Dollars  Normal Cost – Percent of Payroll  UAL Amortization Payment – Dollars  UAL Amortization Payment – Percentage of Payroll  Additional Contributions – Dollars  Additional Contributions – Percentage of Payroll  Total Employer Contribution – Dollars  Total Employer Contributions – Percentage of Payroll o Employee Contributions  Baseline Contributions – Dollars  Baseline Contributions – Percentage of Payroll  Additional Contributions – Dollars  Additional Contributions – Percentage of Payroll • Bargaining Level Analysis o Salary Increase o Workforce growth • Net Savings from Baseline Projection Period: 30 Years Economic Scenarios • Baseline Investment Return – Assume CalPERS investment returns match their assumed discount rate for each year. • Optimistic Investment Return – Assume CalPERS investment returns are 2% greater than the assumed discount rate for every year in the projection. • Pessimistic Investment Return – Assume CalPERS investment returns are 2% less than the assumed discount rate for every year in the projection. Funding Scenarios • Baseline – District Contributions equal to those required by CalPERS • Shorten amortization period o Fresh Start – Select bases to combine using a 20-year amortization period. o Mimic Fresh Start – Contribute to CalPERS as if bases had been combined and re- amortized. o 115 Trust – Make additional payment as under Mimic Fresh Start, but these payments will be made to a separate Section 115 Trust. • Additional fixed dollar discretionary payments o Past additional discretionary contributions o Directly to CalPERS o To 115 Trust • EPMC o With and without We will be loading data from the CalPERS valuation reports into our software to perform this analysis. All charts and graphs can be exported as PDF. GovInvest Inc. RFQ for Actuarial Services 10 Approach and Methodology for OPEB Actuarial Analysis (OPEB Module) Project Metrics: • Classifications o Miscellaneous o Total • Funding Level o Unfunded Actuarial Liability o Funded Percentage • Contributions o Employer Contributions  Normal Cost – Dollars  Normal Cost – Percent of Payroll  UAL Amortization Payment – Dollars  UAL Amortization Payment – Percentage of Payroll  Additional Contributions – Dollars  Additional Contributions – Percentage of Payroll  Total Employer Contribution – Dollars  Total Employer Contributions – Percentage of Payroll Projection Period: 30 Years Economic Scenarios • Baseline Investment Return – Assume OPEB investment returns match the actuary's assumed discount rate for each year. • Optimistic Investment Return – Assume OPEB investment returns are 2% greater than the assumed discount rate for every year in the projection. • Pessimistic Investment Return – Assume OPEB investment returns are 2% less than the assumed discount rate for every year in the projection. Funding Scenarios • Baseline – District Contributions equal to Actuarially Determined Contribution (ADC). • Additional fixed dollar discretionary payments o Past additional discretionary contributions We will be loading data from the OPEB valuation report and (if possible) from the OPEB actuary into our software to perform this analysis. All charts and graphs can be exported as PDF. Present Preliminary Findings We will meet with the District’s project team to review the Preliminary Findings. At the end of this meeting, we will determine if any additional analysis is needed, and what portion of the preliminary analysis will be presented to the District Council. Revise Analysis Revise the Preliminary Analysis as decided in the staff presentation. Additional Presentations GovInvest will work with City staff to present the final results of the analysis to the District Council and members of the public. GovInvest Inc. RFQ for Actuarial Services 11 Approach and Methodology for the OPEB Valuation and GASB 75 Compliance The GASB 75 accounting rules require more frequent and comprehensive reporting. A “full” valuation is required every two years, while a simplified “roll-forward” accounting report is required in the off years. The roll-forward report must reflect changes in the discount rate and other significant events/assumptions, but can rely on the prior year data if it hasn’t substantially changed. Our proposed fees are for both the “full” and “roll-forward” valuation reports. We will perform the following services, as chosen by the City: 1. GASB 75 Valuation - retiree health The GASB 75 valuation reports will contain all relevant items required for your audit. Our report template has been reviewed and approved by the California State Controller’s Office as containing all items required under GASB 75. The GASB 75 reports will include the numbers needed for the financial statement footnotes. These numbers will be laid out in a format that will transition well to the footnotes. We will prepare the following GASB 75 reports:  For FY2021 (6/30/2021), we will perform a “full” GASB 75 report to calculate your retiree OPEB liability. The report will include all OPEB results required for your FY2021 financial statements, including participant summaries, plan provisions, and actuarial assumptions.  For FY2022 (6/30/2022), we will prepare a “roll-forward” GASB 75 report to determine your OPEB liability and financial disclosures. This report will reflect updated actuarial assumptions, but does not require us to collect new census data.  The above full/roll-forward schedule will continue for the FY2023 - FY2025 GASB 75 reports as well. We would also be glad to participate in a conference call to review results and ensure you understand what all the numbers mean. 2. Actuarially Determine Contribution amount We will calculate the City’s annual Actuarially Determined Contribution (ADC) funding amount. These funding results will be included in the City’s annual GASB 75 report. 3. Other consulting services We will prepare other actuarial and consulting projects requested by you from time to time such as evaluating alternative plan design scenarios; separating results by bargaining group; preparing additional OPEB funding analyses; attending meetings; and miscellaneous consulting. GovInvest Inc. RFQ for Actuarial Services 12 Approach and Methodology for the Pension Valuation and GASB 68 Compliance The City has one cost-sharing multiple-employer Miscellaneous pension plan (with three tiers) with CalPERS. For this pension plan, we will perform the following services, as chosen by the City: 1. GASB 68 Valuation – Miscellaneous pension plan The GASB 68 accounting reports will contain all relevant items required for your audit and will include the numbers needed for the financial statement footnotes. These numbers will be laid out in a format that will transition well to the footnotes. We will prepare the following GASB 68 reports:  For FY2021 – FY2025, we will prepare a GASB 68 reports to show your GASB 68 disclosure information. The report will be based on the CalPERS GASB 68 tool to determine the necessary accounting entries. We would also be glad to participate in a conference call to review results and ensure you understand what all the numbers mean. GovInvest Inc. RFQ for Actuarial Services 13 Complete Pricing and Fee Schedule The fees for the combined support and services of GovInvest and Van Iwaarden are as follows: Services: Use of the Pension and OPEB Module of the Total Liability Calculator. GASB 75 Actuarial Valuation Reports. Actuarially Determined Contribution (ADC) Funding Reports. GASB 68 Accounting Valuations Reports. Fee for Services: Service fees are due upon engagement. Fees below are based as a package* Pricing - GASB Valuations and Reporting Our proposed fees are outlined below. In subsequent years, fees will be based on the time and expense required or we can provide a new fee quote if you prefer. OPEB Services Provided (GASB 75 reports include development of ADC funding amount) Fee FY2021 “full” GASB 75 valuation report $6,000 FY2022 “roll-forward” GASB 75 roll-forward valuation report $4,000 FY2023 “full” GASB 75 valuation report $6,000 FY2024 “roll-forward” GASB 75 roll-forward valuation report $4,000 FY2025 “full” GASB 75 valuation report $6,000 The proposed roll-forward fees assume no substantial changes to the plan census, assumptions, plan provisions, or funding arrangement. If any of these factors change significantly, then GASB 75 rules may require a full valuation in the off year. In this case, we will provide a separate proposed fee. Pension Services Provided Fee FY2021 GASB 68 accounting report for Miscellaneous plan $500 FY2022 GASB 68 accounting report for Miscellaneous plan $500 FY2023 GASB 68 accounting report for Miscellaneous plan $500 FY2024 GASB 68 accounting report for Miscellaneous plan $500 FY2025 GASB 68 accounting report for Miscellaneous plan $500 GovInvest Inc. RFQ for Actuarial Services 14 Pricing (Continued) - Software Pension and OPEB Actuarial Software Solution (Pricing for Up to Five Years) FY 21-25 PENSION MODULE (Renewal) Annual Licensing Fee: $9,000 Discounted Annual Fee: $8,000 *GASB 68 fee included in Pension software purchase. OPEB MODULE (Renewal) Annual Licensing Fee: $9,000 Discounted Annual Fee: $8,000 Discount Incentive: Discount honored if (1) Licensing Agreement is a multi-year contract (minimum of 3 years), (2) executed by November 17, 2020 and (3) total contract value invoiced up-front. Meetings In person meetings will be billed at GovInvest’s hourly rate for Lead Consultant work, including half- rate for travel time. Meeting rate with one GovInvest Lead Consultant estimated at $1,000 per meeting, plus travel expenses. Webinar meetings will be no additional cost provided software and GovInvest team are capable of performing the work. (see Services Included with Annual Software Licensing and GASB Reporting) Miscellaneous Fees Fees will also cover reasonable travel expenses and other fees to be negotiated on a case-by-case basis and agreed upon by Cosumnes Community Services District and the GovInvest/Van Iwaarden Actuarial team. Other Services We offer all actuarial-services, including renewal rating, funding projections, benefit pricing, and reserving. We offer fixed-fee or hourly pricing for all the above services. Our hourly rates are: Category Hourly Rate GovInvest – Lead Consultant $350 GovInvest – Executive $450 Van Iwaarden – Lead Consultant $400 Van Iwaarden – Consultant $300 Van Iwaarden – Analyst $200 GovInvest – Analyst $200 GovInvest Inc. RFQ for Actuarial Services 15 References (Listed below are contacts at five California agencies for whom we recently performed analysis similar to the analysis requested by the City of La Quinta.) Client: City of Brisbane Contact: Stuart Schillinger, Director of Finance/ City Treasurer Phone: 415-508-2151 E-mail: schillinger@ci.brisbane.ca.us Service Performed: The City of Brisbane has utilized GovInvest for a number of services and projects over the years. From GASB 75 reporting compliance to the use of the pension and OPEB module, GovInvest has supported Stuart in real -time analysis, consultative planning sessions, updated budget projections, forecasting and costing through negotiations. The support level of GovInvest has been timely feedback, support and editing on presentations to Council and continuous education and feedback on various tools like 115 trusts or other vehicles to support the general fund, stabilize pension volatility and promote a more proactive funding policy for the City. Dates: August 2016 – Present Client: City of Westminster Contact: Sherry Johnson, Interim City Manager and Finance Director Phone: 714-548-3189 E-mail: sjohnson@westminster-ca.gov Service Performed: The City of Westminster has engaged GovInvest for both the pension and OPEB module as well as the GASB 68 and GASB 75 reports for compliance needs, budgeting and insights for negotiations and more accurate costing. The City staff regularly attend GovInvest educational webinars to stay up to speed with CalPERS, GASB and current issues around pension and OPEB. GovInvest has supported the City with one on one trainings and various sets of analysis including custom investment return analysis and funding policy development. Dates: January 24, 2018- Present Client: City of Cupertino Contact: Thomas Leung, Management Analyst Phone: 778-968-4846 E-mail: thomasl@cupertino.org Service Performed: The City of Cupertino has engaged GovInvest and AdastraGov for use of our pension, OPEB and Labor Modules. The City is very innovative and prides itself in staying ahe ad of the curve. Thomas believes in understanding the highest value and benefits from technology while utilizing “best in class” resources to get the job done right. Thomas believes that the pension, OPEB and labor software fill a need for the most accurate budgeting and costing insights for negotiations, funding and department level breakout budgeting. The City staff regularly attend GovInvest educational webinars to stay up to speed with CalPERS, GASB and current issues around pension, OPEB and Labor. GovInvest has supported the City with 1v1 trainings and various sets of analysis including custom investment return analysis and funding policy development. Dates: August 25, 2017- Present Client: La Mesa Contact: Erin Bullers, Sr. Management Analyst Phone: 619-667-1111 E-mail: ebullers@cityoflamesa.us Service Performed: A great example of staff leaning on 3rd party consultants and technology providers to offer additional expertise in helping them to get the job done quickly, effectively and to help manage City resources better. Sarah the Finance Director retired but Erin has received very beneficial training and carried the torch for the team with GovInvest. Erin is now utilizing the pension, OPEB and labor software systems filling a need for the most accurate budgeting and costing insights for negotiations, funding and department level breakout analysis. The City staff regularly attends GovInvest educational webinars and trainings to stay up to speed with CalPERS, GASB and current issues around pension, OPEB and Labor. GovInvest has supported the City with 1v1 trainings and various sets of analysis including custom investment return analysis on pension and will be preparing analysis and resources for funding on both pension and OPEB alongside their other consultants. Dates: August 28 2017 – Present GovInvest Inc. RFQ for Actuarial Services 16 Client: City of San Marcos Contact: Lisa Fowler, Finance Director Phone: 760-744-1050 x 3131 E-mail: lfowler@san-marcos.net Service Performed: The City of San Marcos has engaged GovInvest and AdastraGov for use of our pension, OPEB and Labor Modules. The City is very innovative and prides itself in staying ahead of the curve. Lisa believes in understanding the highest value and benefits from technology while utilizing “best in class” resources and leaning on 3rd party consultants and technology providers to offer additional expertise in helping getting the job done quickly, effectively and to help manage City resources better. Lisa and the team including their City Manager and Treasurer, believe that the pension, OPEB and labor software fill a need for the most accurate budgeting and costing insights for negotiations, funding and department level breakout for budgeting. The City staff regularly attends GovInvest educational webinars to stay up to speed with CalPERS, GASB and current issues around pension, OPEB and Labor. GovInvest has supported the City with 1v1 trainings and various sets of analysis including custom investment return analysis and will be preparing for negotiations and assessing the payroll costs down to the very EE for every type of benefit cost. Dates: January 17, 2020- Present Client: Cosumnes Community Services District Contact: Nitish Sharma, Chief Financial Officer Phone: 916-405-7150 E-mail: nitishsharma@yourcsd.com Service Performed: The Cosumnes Community Services District engaged GovInvest for pension, OPEB and our Labor Costing Module with our sister company, AdastraGov. Cosumnes CSD submitted and RFP which GovInvest was awarded the contract that included the three modules as well as the GASB 75 reports for compliance needs. Being the most complete resource for Pension and OPEB budgeting, instant insights for negotiations and the most detailed and streamlined resource for accurate labor costing has made GovInvest the true partner. The CSD staff regularly attends GovInvest educational webinars to stay up to speed with CalPERS, GASB and current issues around pension, OPEB and labor impacting state and local government. GovInvest has supported the CSD with 1v1 trainings and various sets of analysis including custom investment return analysis and funding policy development. The staff has been elated with the GASB report work and now looking to do a mix of long term financial planning with the pension, OPEB and Labor Module. Break-out analysis, instant actuarial results, responsive feedback and support from customer success in developing presentations for the Board, being an extension of the team and coming up with new ways to implement the powerful software and analysis has made for a very powerful set of projects that GovInvest has supported the Cosumnes CSD on. (Staff has also been prior customers at the City of West Sacramento and the City of Davis (both are current customers as well) which speaks to their level of comfort and trust of the GovInvest team developing more and more resources to save time and money around these process and the institutional knowledge transfer) Dates: February 2, 2020- Present GovInvest Inc. RFQ for Actuarial Services 17 Legal Issues and Potential Conflict of Interest GovInvest does not have: 1. Any pending investigations of the firm and any enforcement, settlements, or disciplinary actions taken within the past five years by any regulatory body. 2. Any affiliation or relationship with any broker-dealer. 3. Any finder’s fee, fee splitting, payments to consultants, or other contractual arrangements of the firm that could present a real or perceived conflict of interest. 4. Registration with regulatory bodies. GovInvest Inc. RFQ for Actuarial Services 18 Services included with Purchase of Annual Software Licensing and GASB reporting Annual Software Fee Includes: • Unlimited User logins: Credentials to access individual cloud-based portals. • Portal Setup: Development of custom web/cloud-based platform for Pension and OPEB. • Features & Reports: All features and reporting functions available within the cloud-based portal. • Setup, Support & Training: Dedicated support staff to assist in initial setup and unlimited ongoing training of the product and features. Refer to Implementation Steps below under User Training • Support Resources: Access to retirement plan experts, actuaries and experienced financial consultants, training tools, webinars and conferences hosted by GovInvest. • Expert Sessions: Scheduled training hosted by in-house customer support team, finance and actuarial experts, budget experts, as well as a support group of peer government users with extensive experience using the product. • Internal Presentation Support: In-house finance, negotiations and budget experts to support in developing and reviewing presentations based on product usage. • Dedicated Customer Success Manager: Specialist assigned to the City to facilitate communication with all available resources. Implementation Steps: • Introductory 1-on-1 meeting between Customer’s project sponsor(s) and GovInvest’s onboarding lead • Optional kick-off meeting with GovInvest’s onboarding lead and all customer stakeholders and others that will be involved in the onboarding process • User training: Digital one-on-one or group sessions focused on setting up projects and using software to support the City objectives. • Plan setup and configuration: support the customer in outlining plan drill-down, new entrants plan set-up, bargaining unit or department level analysis, and 115 trust components (if applicable). • Data Request: Support the customer in retrieving appropriate census file reports from retirement system/ actuary in most recent valuation. • Validation: Actuaries and Developers to stress-test and validate results against actuarial standards of practice and acceptable level of deviation within results to liabilities and costs. • Support: answer customer questions as they come up about modelling or validation Onboarding and implementation for the pension and OPEB modules of the GovInvest Total Liability Calculator includes a detailed data request outlining specific reports the City needs to receive from their pension plan/ retirement system. The City will be asked to remove any and all sensitive information. Actuarial calculations need to run on standard assumptions for life GovInvest Inc. RFQ for Actuarial Services 19 expectancy by gender, mortality tables, and salaries. Other benefit formulas and calculations surrounding actuarial standards of practice and agreed on for the pension and OPEB plan benefits are the baseline for the software. Our team will request this data securely in a manner set by the City standard practice. The City will also match employees to either bargaining level and/or department level if analysis is desired to split out the impact of liabilities and costs further. The City will NOT upload data into the system, the GovInvest team will handle all data input and validation of results; if GovInvest has questions we will communicate in writing with the City lead point of contact. Once results have been validated with our actuaries and developers, logins will be provided to the City. Standard validation and delivery of logins for implementation after data has been successfully retrieved from the customer will take about 4-8 months depending on the complexity of the build and the size of the plan. These details will be communicated further, and timelines established. Implementation Fee Includes Annual Fee Includes Initial Logins Additional Logins Initial Portal Setup Ongoing Maintenance Current Features & Reporting capability Future Features & Reports Initial Setup & Training Future Support & Training Current Support Resources Future Support Services Expert Training Session Annual Expert Sessions Internal Presentation Review (By Appointment) Ongoing Presentation Support (By Appointment) Dedicated Customer Success Manager Dedicated Customer Success Manager Sample Dashboard- Not City Data GovInvest Inc. RFQ for Actuarial Services 20 Sample Dashboard- Not City Data Sample Dashboard- Not City Data GovInvest Inc. RFQ for Actuarial Services 21 Software Highlights and Additional Resources GovInvest Inc. RFQ for Actuarial Services 22 Page 11 of 13 ATTACHMENT 2 INSURANCE REQUIREMENTS ACKNOWLEDGEMENT Must be executed by proposer and submitted with the proposal I, _____Jason Huk________________________ (name) hereby acknowledge and confirm that ____GovInvest Inc.__________________ (name of company) has reviewed the City’s indemnification and minimum insurance requirements as listed in Exhibits E and F of the City’s Agreement for Contract Services (Attachment 1); and declare that insurance certificates and endorsements verifying compliance will be provided if an agreement is awarded. I am _____Director of Sales______________ of ____GovInvest Inc._____________, (Title) (Company) Commercial General Liability (at least as broad as ISO CG 0001) $1,000,000 (per occurrence); $2,000,000 (general aggregate) Must include the following endorsements: General Liability Additional Insured General Liability Primary and Noncontributory Commercial Auto Liability (at least as broad as ISO CA 0001) $1,000,000 (per accident) Personal Auto Declaration Page if applicable Errors and Omissions Liability $1,000,000 (per claim and aggregate) Worker’s Compensation (per statutory requirements) Must include the following endorsements: Worker’s Compensation Waiver of Subrogation Worker’s Compensation Declaration of Sole Proprietor if applicable Page 12 of 13 ATTACHMENT 3 NON-COLLUSION AFFIDAVIT FORM Must be executed by proposer and submitted with the proposal I, _____Jason Huk_____________________________ (name) hereby declare as follows: I am ____Director of Sales______ of ____GovInvest Inc._____________, (Title) (Company) the party making the foregoing proposal, that the proposal is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation; that the proposal is genuine and not collusive or sham; that the proposer has not directly or indirectly induced or solicited any other proposer to put in a false or sham proposal, and has not directly or indirectly colluded, conspired, connived, or agreed with any proposer or anyone else to put in a sham proposal, or that anyone shall refrain from proposing; that the proposer has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the proposal price of the proposer or any other proposer, or to fix any overhead, profit, or cost element of the proposal price, or of that of any other proposer, or to secure any advantage against the public body awarding the agreement of anyone interested in the proposed agreement; that all statements contained in the proposal are true; and, further, that the proposer has not, directly or indirectly, submitted his or her proposal price or any breakdown thereof, or the contents thereof, or divulged information or data relative hereto, or paid, and will not pay, any fee to any corporation, partnership, company, association, organization, proposal depository, or to any member or agent thereof to effectuate a collusive or sham proposal. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct. Proposer Signature: Proposer Name: Proposer Title: Company Name: Address: _________________________________________________ _ _______Jason Huk_____________________________ ________Director of Sales _________________________ _______GovInvest Inc.______________________________ ____3625 Del Amo Blvd. Suite 200 Torrance, CA 90503____ Page 13 of 13 ATTACHMENT 4 ACKNOWLEDGEMENT OF RECEIPT OF ADDENDA Must be executed by proposer and submitted with the proposal; If no addenda has been issued, mark “N/A” under Addendum No. indicating Not Applicable and sign ADDENDUM NO. SIGNATURE INDICATING RECEIPT