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CITY OF PLEASANTON <br />SCOPE AND COMPENSATION <br /> <br />NHA’s scope of work for the Pension Strategy Project is as follows: <br /> <br />• Review 5 years of CalPERS actuarial reports, any other applicable reports and materials provided <br />to City by actuarial consultants <br />• Review City’s ACFR, Budget and Long-Term forecast to identify key revenue, expenses and <br />constraints impacting potential Pension Strategy <br />• Develop a Comprehensive Presentation identifying: <br />o CalPERS basics <br />o City’s CalPERS pension program <br />o Unfunded Accrued Liability (UAL) and Funded Ratio trends <br />o Historical & Projected CalPERS costs <br /> Summarize impact of recent ALM (Asset-Liability Management) Study actuarial <br />assumption changes and FY 2025 Investment Returns on future Normal Cost and <br />UAL <br />o Comparison of other public agencies <br />o Cost management strategies <br /> Provide high level summary, including advantages & disadvantages, of various <br />cost management strategies, including Annual Prepayment of UAL; Cost-Sharing <br />with Employees; Additional Discretionary Payments (ADPs); Section 115 <br />Trust/Internal Reserve; Fresh Start and Pension Bonds <br /> Provide more in depth analysis for up to 4 cost management strategies (Section <br />115, ADP, or hybrid of both) tailored to City’s budgetary resources and constraints <br />(to be determined through conversations of NHA and staff; preliminary strategies <br />to be discussed may include more than 4 before conducting more comprehensive <br />modeling) <br />• As part of detailed analysis, develop pension model demonstrating <br />optimal deposits/withdrawals to and from the City’s Section 115 Trust to <br />achieve financial objectives <br />• If ADP strategy is included, develop tailored models to identify optimal <br />amortization bases to be paid off <br /> Provide recommendations related to cost management strategy (if desired) <br />• Finalize Pension Models & Presentation to align with staff feedback and strategic project <br />objectives <br />• Pension Policy Review - Provide recommendations for modifications <br />o Include samples from other public agencies <br />• Deliver Presentation, in person, to City Council <br />Compensation <br />NHA will invoice $16,500 upon completion of the identified scope. <br />Expenses <br />Out-of-pocket expenses will be limited to those necessary for completion of the project and will be billed <br />at cost plus a 15% markup for payment and processing (including sub-consultants invoices). <br />Docusign Envelope ID: BB80A86F-2853-4F40-B02D-18F5B9DD615F