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6THE CITY OF PLEASANT LIVING CITY OF SOUTH MIAMI OFFICE OF THE CITY MANAGER INTER-OFFICE MEMORANDUM To: From: Date: Subject: The Honorable Mayor & Members of the City Commission Steven Alexander, City Manager Agenda Item: 6 June 16, 2015 A Resolution authorizing the City Manager to contract with Gabriel Roeder Smith & Company to perform other Post-Employment Benefits (OPEB) valuation required for fiscal years 2015, 2016, and 2017 Comprehensive Annual Financial Report (CAFR). BACKGROUND & ANALYSIS State and local government employers provide Other Post-Employment Benefits (OPE B) to retirees in addition to typical pension benefits. OPEB takes form of retiree health insurance, dental, vision, prescription drug, life, or other healthcare benefits. GASB No.45 -Accounting and Financial Reporting by employers for the post-employment benefits other than pension establishes new standards for the recording of OPEB expense and the liabilities in the financial reports of state and local government employers. Furthermore, employers must account for and report the annual cost of OPEB similar to how pensions are reported. Florida State Statues require that the employer make health coverage available to retirees at the employer's group rate. For purpose of GASB 45, a valuation is an examination of other (than pension) post-employment benefits to assess the cost and liability associated with those benefits. Valuations are typically handled by actuaries with specific qualifications to perform the work. The City obtained three quotes from actuarial firms. The City Manger is requesting to contract with Gabriel Roader Smith & Company, the pension board's current actuary, to perform the Other Post Employment Benefits (OPEB). Actuarial and Consulting Firms Florida league of Cities Gabriel Roeder Smith & Company Milliman $7,875.00 $6,000.00 $7,500.00 Page I of 2 AMOUNT A fixed amount not to exceed $6,000 ACCOUNTS 001.1410.513.3210, Finance Auditor's Fee for fiscal year 2016 ATTACHMENTS Resolution for Approval GRS proposal Milliman proposal Florida League of Cities/ Southern Actuarial proposal Page 2 of 2 1 RESOLUTION NO. _______ _ 2 A Resolution authorizing the City Manager to contract with Gabriel Roeder Smith & 3 Company to perform other Post-Employment Benefits (OPEB) valuation required for 4 fiscal years 2015, 2016, and 2017 Comprehensive Annual Financial Report (CAFR). 5 WHEREAS, the state and local government employers provide Other Post-Employment Benefits 6 (OPES) to retirees in addition to typical pension benefits. OPES takes form of retiree health insurance, 7 dental, vision, prescription drug, life, or other healthcare benefits; and, 8 WHEREAS, GASS No.45 -Accounting and Financial Reporting by employers for the post- 9 employment benefits other than pension establishes new standards for the recording of OPES expense 10 and the liabilities in the financial reports of state and local government employers; and, 11 WHEREAS, employers must account for and report the annual cost of OPES similar to how 12 pensions are reported. Florida State Statues require that the employer make health coverage available 13 to retirees at the employer's group rate; and, 14 WHEREAS, for purpose of GASS 45, a valuation is an examination of other (than pension) post- 15 employment benefits to assess the cost and liability associated with those benefits. Valuations are 16 typically handled by actuaries with specific qualifications to perform the work. 17 NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF 18 SOUTH MIAMI, FLORIDA THAT; 19 Section 1. The City Manager is authorized contract with Gabriel Roeder Smith & Company, the 20 pension board's current actuary, to perform the Other Post-Employment Senefits (OPES) valuation 21 required under the GASS for fiscal years 2015,2016, and 2017 Comprehensive Annual Report (CAFR), for 22 a fixed retainer not to exceed $6,000 using account 001.141.513.3210, Finance Auditor's Fee, for fiscal 23 year 2016. 24 Section 2. This resolution shall take effect immediately upon adoption. 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 PASSED AND ADOPTED this __ day of ___ -', 2015 ATTEST: CITY CLERK READ AND APPROVED AS TO FORM, LANGUAGE, LEGALITY AND EXECUTION THEREOF CITY ATTORNEY APPROVED: MAYOR COMMISSION VOTE: Mayor Stoddard: Vice Mayor Harris: Commissioner Welsh: Commissioner Liebman: Commissioner Edmond: FLORIDA LEAGUE OF CITIES, INC. 301 South Bronaugh Street, Suite 300 • Post Office Box 1757 • Tallahassee, FL 32302-1757 (850) 222-9684 • Fax (850) 222-3806 • Web site: www.flcities.com May 14, 2015 Alfredo Riverol City of South Miami Re: Preparation of GASB 45 Disclosures for the City of South Miami Dear Mr. Riverol: Pursuant to your request, I have set forth below our fee to provide the actuarial calculations required by Governmental Accounting Standards Board Statement No. 45 (GASB 45), along with a detailed listing of the services covered by the fee. It is my understanding that the City currently: (i) has approximately 132 active employees who potentially may become eligible for post-employment benefits; (ii) has approximately 7 individuals who are receiving post-employment healthcare coverage; and (iii) provides fully-insured post-employment healthcare benefits. Based on our email conversation and my understanding of the number of employees and retirees entitled to post-employment benefits, as well as the type of post-employment benefits currently offered by the City of South Miami, I have prepared the following fee quotation. Our fixed retainer fee will be $7,875.00 for the following services: 1. Preparation of an annual actuarial valuation report as of April 1, 2015 which will be used to develop the GASB 45 liabilities and expense for the fiscal years ending September 30, 2015, September 30, 2016 and September 30, 2017, complete with all necessary calculations, information, and disclosures as required by GASB 45 and other applicable actuarial professional standards, including the following: a. A summary of current plan provisions; b. A summary of all assumptions and methods applied in developing the plan expense and liabilities; c. Liabilities and expenses by employee group based on covered medical benefits; d. Liabilities by active, deferred vested, retiree, and benefiCiary status; and e. A projection of the cash flows to provide a forward-looking estimate of the financial impact to the City of South Miami of retiree health care costs, liabilities, and contributions. 2. Up to 15 bound copies of the final valuation report prepared as described in item 1. 3. Miscellaneous telephone calls between our actuary, Charles Carr at Southern Actuarial Services and any City employees or other professionals connected with the cited work, including conference telephone calls as needed to discuss the assumptions used in the calculations and to explain the results of the valuation to City officials. The report will be provided approximately 12 weeks from the date on which we receive all necessary information, including but not limited to employee and retiree data, claims experience (if applicable), retiree premiums, City contributions and/or premiums, and other information set forth in our standard data request letter. In addition, if you would like for the actuary to attend a meeting in person to discuss the results of the valuation, the fee will be $2,500.00. The cited meeting attendance fee includes all associated travel expenses. The $2,500.00 fee is in addition to the fixed retainer fee of $7,875.00. This quote will be good for a valuation for fiscal years ending September 30, 2015, September 30, 2016 and September 30, 2017 only if your last valuation produced was for fiscal year ending September 30, 2014. If your last valuation was produced for a prior fiscal year, it may not be possible to produce a valuation for September 30, 2015, September 30, 2016 and September 30, 2017 until the lapsed years have been valued. If you have questions or concerns, or would like to verify the dates of your last valuation, please do not hesitate to discuss this with us. If you agree to this proposal, please have this signed and dated by the appropriate official and send a copy to me. Signature Printed Name Sincerely, Jeff Blomeley Investment and Retirement Services Manager Florida League of Cities, Inc. P.O. Box 1757 Tallahassee, FL 32302 800-616-1513 x 3614 Title Date GRS Gabriel Roeder Smith & Company Consultal1ts & Actuaries November 12,2014 Mr. Alfredo Riverol Chief Financial Officer City of South Miami 6130 Sunset Drive South Miami, Florida 33143 One East Broward Blvd. Suite 50S ft. Lauderdale, fL 33301-1804 954.527.1616 phone 954.525.0083 fax www.gahriclrocder.com Re: Retiree Health Care Program -Actuarial Valuation as of October 1,2014 Dear Alfredo: As in prior years, Gabriel, Roeder, Smith & Company (GRS) is pleased to present this Engagement Lette.r to continue to provide professional actuarial and consulting services including an Actuarial Valuation as of October 1, 2014 for the City of South Miami Retiree Health Care Program under Govermnental AccoUnting Standards Board Statement Number 45 (GASB 45). We are enthusiastic about continuing our existing relationship with the City on this important assignment. We have a long-standing commitment and experience with working on behalf of public sector benefit programs. Our philosophy of developing a partnership with our clients emphasizes the collaborative nature of the GRS working relationship. We strive to earn your trust as your advisor. We will continue to work together with you in the best interest of the interested parties. Description of Services The professional services would be provided under the supervision of Larry Wilson, A.SA., a Senior Consultant and Actuary with over 25 years of experience in employee benefit plans, Kelly Adams, A.SA., a Consultant and Actuary with over 15 years of experience with employee benefit plans and Jen Borregard, E.A., a Consultant and Actuary with over 15 years of experience with retirement systems. Our Report will add value by including: ~ Primer on available funding vehicles, ~ 10-year projections of total program (not allocated by groups) and ~ Sensitivity analysis of the health trend rates. We believe this information will be of great use to the City. These features of our Report distinguish GRS from our competitors. Mr. Alfredo Riverol November 12, 2014 Page Two Data Requirements Upon engagement, we understand the City will provide census data, medical insurance information and other information needed generally in electronic (spreadsheet) form. We expect information relating to coverage and eligibilities will be provided in hard copy- Plan Documents / member booklets. • Census Data Requirements Please see the attached request for member census information as of October 1, 2014 needed in order to complete the Actuarial Valuation. • Plan Document and Financial Information Please provide the following information: >-Current summary plan description (booklet) for each benefit >-Whether fully or self insured >-OPEB initial per-capita cost information -see attached data request >-Reviewthe attached Summary of Benefits as of October 1, 2011 and update for any changes as of October 1, 2014 or indicate that there are no changes. » Any changes being considered » Schedule of most recent premiums / contributions with their effective date >-Based on the City'S September 30,2013 Annual Financial Report, we understand the City has adopted the pay-as-you-go funding approach with a 4.0% discount rate. • Please confirm the cost and liabilities should continue to be developed using the pay-as-you-go funding approach. • In our experience, most clients are currently disclosing discount rates in the range 3.5% -4.0%. This assumption is ultimately the responsibility ofthe City and its auditors. Please let us know what discount rate the City has selected. Upon request, we are available to consult on the setting of this assumption. Gabriel Roeder Smith & Company Mr. Alfredo Riverol November 12, 2014 Page Three >-The amount to be reported for each of the following items under GASB 45 in the Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 2014 each of the following items: • Annual Required Contribution (ARC) for the fiscal year ended September 30, 2014 • Net OPEB Obligation (NOO) as of September 30, 2014 We anticipate our not-to-exceed fee for the entire project will be as set forth in the following table: * The intermediate years of this engagement presume a roll-forward, whereby the previous year's valuation would be adjusted so as to apply to the projected year. GASB Statement No. 45 permits fully compliant valuations every other year (biennially otherwise every triennial for employers with 200 covered members or less) unless significant changes occur, in which case a new fully compliant valuation must be performed with additional fees necessary. The roll-forward will be included in the October 1,2014 Actuarial Valuation Reports -the City would incur no additional fees for OPEB actuarial services for the fiscal year ending September 30, 2016 and September 30, 2017. If a fully compliant valuation were required or requested by the City in the intermediate year(s), the cost for the valuation would be the same as the cost of the October 1, 2014 Actuarial Valuation. Please see the attached Scope of Services Exhibit for a detailed explanation of the services that are included in this fee. Timing The Actuarial Valuation will be delivered within sixty (60) days following direction to proceed and receipt of all necessary member census data, medical insurance information and plan documentation. Gabriel Roeder Smith & Company Mr. Alfredo Riverol November 12,2014 Page Four We look forward to the opportunity to work with you again this year on this important project. Please do not hesitate to contact us should you have any questions or require additional information. Sincerest regards, ~~.~~ Lawrence F. Wilson, A.S.A. Senior Consultant and Actuary Enclosures Gabriel Roeder Smith & Company CITY OF SOUTH MIAMI RETIREE HEALTH CARE PROGRAM DATA REQUEST OPEB Initial Per-Capita Cost Information Please provide all data electronically, where available. 1. Please provide a summary of Retiree Health Care Program Provisions for each health care option. For example, please list co-pays, and deductibles for each PPO option, HMO option, etc. If a summary is not available, a member booklet should suffice. 2. If any portions of retiree health benefits are fully insured, please provide us with the 2013-2014 and 2014-2015 fully-insured monthly active and retiree premium rates for one-person and two- person coverage. For the retirees, we would like both pre-65 (regular premium rates) and post- 65 (complementary premium rates). If available, it would be helpful to have the premium rate broken down by coverage component (i.e., medical, prescription drug, life, and/or vision). For all Rate Sheets submitted, please indicate the full period these rates are effective. Billing statements do not contain the information needed; therefore they are not necessary to 3. Please explain which groups/suffixes are available for future retirees. If more than one group/suffix is available, please explain what would cause a retiree to choose one type of coverage over another. 4. If any portions of retiree health benefits are self-insured, please provide the following health care claims information. Please separate health care claims between active employees and retirees, and then further between claims for pre-65 and post-65 retirees and between medical and Rx claims, if possible. a. Monthly health care claims experience by group/suffix, i. Incurred 10/01111 to 09/30/12 and paid through September 30, 2014 ii. Incurred 10/01112 to 09/30/13 and paid through September 30, 2014 111. Incurred 10/01113 to 09/30/14 and paid through September 30, 2014 IV. Please note that separate claim reports for regular and comprehensive members should be provided. b. Monthly exposure data by group/suffix for the periods corresponding to the above claim experience periods. c. Please provide the illustrative premiums for the medical groups/suffix. d. Stop loss attachment point as of October 1. 2014. e. Monthly stop loss fee per contract as of October 1. 2014. f. Monthly medical administrative fee per contract as of October 1. 2014. 5. Please explain any major changes that have occurred to the retiree health plan (e.g., changes in co pays, deductibles, change from self-insured to fully-insured, switching to high deductible health plans, etc.) in the past three years. Gabriel Roeder Smith & Company CITY OF SOUTH MIAMI RETIREE HEALTH CARE PROGRAM DATA REQUEST OPEB Initial Per-Capita Cost Information (continued) 6. If your dental plan is self-insured and retirees pay less than 100% of the cost of the dental plan, please provide the following information for all suffixes with dental coverage. a. Monthly dental claims experience by group/suffix, i. Incurred 10/01111 to 09/30112 and paid through September 30,2014 11. Incurred 10/01112 to 09/30113 and paid through September 30, 2014 iii. Incurred 10/01113 to 09/30/14 and paid through September 30, 2014 iv. Please note that separate claim reports for regular and comprehensive members should be provided. b. Monthly exposure data by group/suffix for the periods corresponding to the above claim experience periods. c. Please provide the illustrative premiums for the dental groups/suffix. 7. If your dental plan is fully-insured and retirees pay less than 100% of the cost, please provide the 2013-2014 and 2014-2015 fully-insured monthly active and retiree premium rates for one- person and two-person coverage. 8. If retirees pay less than 100% of the cost of your dental plan, please provide the following. a. Monthly dental administrative fee per contract as of October 1. 2014. b. The percentage or amount the City pays toward the retiree benefits 9. For any life insurance benefits, please provide premiums, eligibility conditions, and groups for whom these benefits are available. If the City provides any other retirement benefits please provide premiums, eligibility conditions, and groups for whom these benefits are available. 10. Please provide utilization data for the past three (3) years. This should include a listing of everyone who has retired from the City of South Miami over the past three (3) years. For each retiree, please indicate (a) if the retiree was eligible for health and/or other post-employment benefits, and (2) if they chose to enroll in health or other post-employment benefits. II. Are retirees required to enroll in Medicare upon reaching age 65? If so, are they required to enroll in Medicare Part A, or both Medicare Parts A and B? 12. For retirees enrolled in health coverage with the City who are currently over age 65, please indicate whether each of them is covered by Medicare Part A, Medicare Part B, both Medicare Parts A and B, or not enrolled in Medicare. Gabriel Roeder Smith & Company CITY OF SOUTH MIAMI RETIREE HEALTH CARE PROGRAM DATA REQUEST Demographic Data Requirements The actuarial valuation will be performed using data as of October 1, 2014 (valuation date). We will be calculating one contribution rate. Enclosed is a CD-ROM with an Excel© file which contains the active and inactive member census data reported as of October 1, 2011. Please update the data in the Excel© file with the information below for members as of October 1,2014. (If you are submitting data via e-mail and you choose to use Social Security numbers as the unique identifier, for the protection of your members, you should consider password protecting or encoding this identifier.) I) For active employees as of the valuation date, please provide an electronic listing including the following information -please include a record layout. • Unique identifier (i.e., employee number or Social Security number) • Name • Gender (M or F) • Date of birth • Date of hire • Annual salary • Years and Months of Service (YY /MM) • Employment group (General, Police) • Health group code (if applicable. Please furnish a list of codes.) • Health Plan (HMO, PPO) • Type of coverage (i.e., single, employee plus spouse, family, etc.) • Spouse date of birth • Spouse gender 2) For retired employees and beneficiaries as of the valuation date, please update / review the attached Excel© file including the following information. • Unique identifier (i.e., employee number or Social Security number) • Name • Gender (M or F) • Date of birth • Date of retirement • Status (Retiree, Disabled, Beneficiary, etc.) • Employment group (Fire, General, Police) Gabriel Roeder Smith & Company CITY OF SOUTH MIAMI RETIREE HEALTH CARE PROGRAM DATA REQUEST· Demographic Data Requirements (continued) • Health group code (if applicable. Please furnish a list of codes.) • Health Plan (HMO, PPO, etc.) • Type of coverage (retiree only, retiree plus spouse, family, two regular contracts, one complementary contract, etc.) • Does coverage continue for beneficiary after retiree's death? (Y or N) • Beneficiary gender • Beneficiary date of birth • Member contribution • Medicare coverage if over age 65 (Part A only, Part B only, Parts A and B, None) • Life insurance amount and Member Contribution (if applicable) • Dental coverage and Member Contribution member (if retiree pays less than 100% of premium) • Vision coverage and Member Contribution member (if retiree pays less than 100% of premium) 3) For former employees who are not yet retired, but who will be eligible for retiree health care benefits, please provide an electronic listing including the following information -please include a record layout. • Unique identifier (i.e., employee number or Social Security number) • Name • Gender (M or F) • Date of birth • Date of hire • Date of termination • Date or age at which person becomes eligible for retiree health care benefits • Employment group (Fire, General, Police) • Health group code (if applicable. Please furnish a list of codes.) • Life insurance amount and Member Contribution (if applicable) • Dental coverage and Member Contribution member (if retiree pays less than 100% of premium) • Vision coverage and Member Contribution member (if retiree pays less than 100% of premium) Gabriel Roeder Smith & Company SCOPE OF SERVICES A detailed analysis of the work plan for this project. WORK PLAN Having performed over 500 OPEB actuarial valuations under GASB 45, GRS has a well-established track for the process. Step 1 -Collect Employee and Retiree Census Data and Benefit Plan Data Census data will be requested from the City. The City may need to request certain data from its own personnel/payroll system and from the health plan vendors. The City may need to massage or supplement the data obtained from these sources (if necessary) to provide clean data files (consolidated) and confirm the completeness and accuracy of the data. Information on the Benefit Plans, loss ratios, renewal reports, experience rating, worksheets, rate charts, etc., will be required from the respective health plan vendors in order to develop the initial per capita retiree claims cost for the benefit types. Step 2 -Draft and Approve Substantive Plan Provisions GASB Statement No. 45 requires the actuarial valuation of employer-provided other post-employment benefits, as constituted in the substantive plan -the plan terms as understood by the parties (the City and the members). This may be the most important step of the whole process. Since the program has previously been valued under GASB 45, this may simply involve updating the sample Summary of Plan Provisions included with the Engagement Letter. This may require us to obtain memoranda, documents, etc., which describe all the benefits provided. We must identify those benefits that qualify as employer-provided other post-employment benefits -and the eligibilities and conditions under which they are made available. We will draft a written version of the substantive plan and request City confirmation before proceeding. Step 3 -Develop Initial Per Capita Costs Each relevant benefit type needs an initial per capita cost for the group. This is the baseline starting point for the project and requires short-term health actuarial expertise. Short-term because the initial per capita claim cost is the total underlying cost (not necessarily the premium) expected for the year following the valuation date for all employees and retirees under age 65. Gabriel Roeder Smith & Company SCOPE OF SERVICES Fully insured premiums are blended premiums used for active and pre-age 65 retired members. These premiums are adjusted to reflect differing utilization by age and gender, using the most recent enrollment, into a single composite pre-age 65 retiree cost using the Redden and Anders comprehensive health care database. This single composite pre-65 retiree cost is then converted to age specific retiree costs reflecting morbidity. Fully insured premiums for age 65 and above retired members are adjusted to reflect differing utilization by age and gender, due to the impact of the Medicare program, using the most recent enrollment, into a single composite age-65-and-above retiree cost using the Redden and Anders comprehensive health care database. This single composite age-65-and-above retiree cost is then converted to age specific retiree costs reflecting morbidity. For self-insured programs, actual claims experience over the three year period prior to the valuation date are analyzed to determine the age specific retiree costs reflecting morbidity. The premium developed by the preceding process is appropriate for the unique age distribution currently existing. Over the future years covered by this valuation, the age and gender distribution will most likely change. Therefore, our process distributes the average premium over all age/gender combinations and assigns a unique cost for each combination. This process more accurately reflects health care costs in the retired population over the projection period. It is important to note that your claim costs will be developed under the direction of a fully qualified dedicated health care actuary. Step 4 -Calculate All Projected Benefits and Present Values Expected costs for all currently covered retirees and dependents is projected based on select and ultimate health care trend assumptions for each benefit type. We will set up our long-term actuarial modeling system based upon the Summary of Substantive Plan Provisions. Part of this step is recognition of how the City's Pension Plan play an integral part in its OPEB obligation. Naturally, we will use all the retirement eligibility requirements of the Pension Plan for normal, early, duty and non-duty disability and death, as applicable. Initially, we use all of the demographic actuarial assumptions (such as turnover, retirement, disability, and mortality rates) used by the respective Pension Plans because we believe it is not proper to simply pull such rate tables off the shelf when the Pension Plans typically perform actuarial experience studies to set the rate tables based on the City's own demographic experience. Use of the Pension Plan's demographic assumptions should be considered minimum requirements for a proper actuarial valuation of the City's OPEB costs and liabilities. Gabriel Roeder Smith & Company SCOPE OF SERVICES In the end, the assumptions and methods employed are the City's assumptions and methods. They are to be adopted by the City because they are the basis for entries in the City's financial statements. We will advise City staff concerning the assumptions and methods. To that end, we will conduct conferences with key staff regarding these actuarial assumptions and methods to be used in the valuation. All future years' benefit costs are projected and taken back to today's dollars in a present value. These actuarial present values of expected benefits payable form the basis for the accounting entries and disclosures required under GASB 45. We can advise City officials (particularly those in finance and treasury) concerning how they would be setting the discount rate. Ultimately, all actuarial assumptions and methods are chosen or adopted by the City. Part of our role is to advise the officials on such matters. Step 5 -Calculate Expense and Liabilities We will calculate these expense and liability disclosures under a pay-as-you-go (unfunded) basis and discuss options for advance funding. Step 6 -Prepare Draft Report for Review GRS will prepare a draft version of our Actuarial Valuation Report and submit it to the City for initial review and comments. The draft report will include an Executive Summary, tables or charts presenting the development of the results, a description of all primary actuarial assumptions and methods, and a summary of the plan benefits. Our report will include the issuance of a Statement of Actuarial Opinion (SAO) in accordance with the Qualification Standards of the American Academy of Actuaries. In addition, GRS will be available to meet with City officials, as necessary, for education, presentation of results, planning, and other purposes. Step 7 -Finalize Report After discussion regarding the draft report, we will make changes and issue our formal bound Report to the client. Various telephone conferences may be required or advisable as the project proceeds- for the purposes of clarification, education (of GRS and City personnel), and decisions by the City as to the usage of certain assumptions and methods. Finally, we will present the results to staff and/or committees in person or by phone to explain the GASB requirements and implications and to review our Report and any recommendations or options there may be. Gabriel Roeder Smith & Company SUMMARY OF BENEFITS AS OF OCTOBER 1, 2011 PROGRAM PARTICIPANTS All Employees of the City are eligible to receive retiree health care benefits. NORMAL RETIREMENT BENEFITS Normal retirement eligibility conditions for retiree health care benefits are as follows: Police Officers: I. Attainment of age 60 and completion of 10 years of credited service or 2. Completion of 25 years of credited service General Employees: I. Attainment of age 55 and completion of 10 years of credited service All Members Health Care Benefit Provided by Plan Member: Eligible Members are eligible to elect post retirement coverage. Member pays the full blended cost of coverage. Spouse: Eligible Members are eligible to elect spousal coverage which continues for the life of the spouse should the spouse survive the retiree. Member I Spouse pays the full blended cost of spousal coverage. Dependent: Eligible Members are eligible to elect dependent coverage which continues up until age 26. Member I dependent pays full blended cost of dependent coverage. EARLY RETIREMENT BENEFITS Police Officers: I. Attainment of age 50 and completion of 15 years of service DEATH IN SERVICE RETIREMENT BENEFITS Death retirement eligibility conditions for retiree health care benefits are as follows: Health Care Benefit Eligibility Conditions Immediately. Health Care Benefit Provided by Plan Spouse: Spouse eligible to elect coverage which continues for the life of the spouse. Spouse pays full blended cost of coverage. Dependent: Dependents are eligible to elect coverage which continues to age 26. Dependent pays full blended cost of coverage. Gabriel Roeder Smith & Company SUMMARY OF BENEFITS AS OF OCTOBER 1, 2014 DISABLED RETIREMENT BENEFITS Disability retirement eligibility conditions for retiree health care benefits are as follows: Health Care Benefit Eligibility Conditions Totally and permanently disabled for a six month period while actively employed. Health Care Benefit Provided by Plan Member: Members are eligible to elect post retirement coverage. Spouse: Members are eligible to elect spousal coverage which continues for the life of the spouse should the spouse survive the retiree. Dependent: Members are eligible to elect dependent coverage which continues up until age 26 of the dependent. BENEFITS FOR SPOUSES OF RETIRED EMPLOYEES Spouses of retired employees are eligible to receive retiree health care benefits. Coverage continues to surviving spouses of deceased retirees. NON-MEDICARE AND MEDICARE-ELIGffiLE PROVISIONS Retirees are not required to enroll in Medicare plans once eligible. If a retiree enrolls in Medicare retiree pays Medicare premiums. VISION COVERAGE Health Care Benefit Eligibility Conditions Members who meet retiree health care eligibility conditions may elect vision benefits. Health Care Benefit Provided by Program Member: Member pays full cost of coverage. DENTAL COVERAGE Health Care Benefit Eligibility Conditions Members who retire meet retiree health care eligibility conditions may receive dental benefits. Health Care Benefit Provided by Plan Member: Member pays full cost of coverage. LIFE INSURANCE COVERAGE Life Insurance coverage is not available to retirees and is not included in this valuation. Gabriel Roeder Smith & Company May 13, 2015 GASB 45 Analysis MILLIMAN PROPOSAL FOR GASB 45 ANALYSIS Prepared for the City of South Miami a Milliman 10000 N. Central Expressway Suite 1500 Dallas, Texas 75231 Tel +1 2148635500 Fax +1 2148635501 milliman.com Table of Contents Proposal A) Milliman's Actuarial Consulting Services ...................................... 3 B) GASB 45 Analysis -Project Steps .................. , ............................. 5 C) Project Team .......... , ..................................................................... 7 D) Fee Schedule ............................................................................... 9 Exhibits Exhibit 1 -2015 Milliman Fact Sheet Exhibit 2 -2015 Sample Client List Exhibit 3 -Requested Information Exhibit 4 -Service Agreement Exhibit 5 -Business Associate Agreement (HIPAA Compliance) Exhibit 6 -White Paper on Proposed GASB 45 New Regulations Il Milliman May 13, 2015 MILLIMAN PROPOSAL FOR GASB 45 ANALYSIS Prepared for the City of South Miami 2 A) Milliman's Actuarial Consulting Services Milliman differentiates itself in the delivery of actuarial consulting services by seeking out and developing professionals who are not only technically sound, but who can also communicate complex actuarial and accounting concepts in an understandable way. As a result, we bring measurable value to our client's ability to make sound decisions. Public Sector Experience Milliman is nationally recognized for our substantial commitment to the public sector, which includes publication of our PERiScope newsletter, active participation in national meetings and advisory committees, and the funding of specialized research. With one of the largest groups of public-sector clients in the U.S., our consultants are extremely well versed in the GASB standards relating to post-employment benefit arrangements. They are also mindful of the impact that state and local law has on public employer benefit plans as they consider and analyze the effect that applicable law may have on current and future liabilities. We have been retained by numerous public employers to perform GASB 45 valuations and consult on issues related to GASB 43 and 45. We have included a Representative Client List as exhibit 2. Milliman also provides a broad range of other services to public plan sponsors, including actuarial services, benefits consulting, compliance, record keeping, employee communication and investment advisory services. Health and Welfare Expertise For many years, our Health Practice has been considered the premier provider of health actuarial services in the U.S. This expertise and experience are· particularly important since employers' GASB 45 liability is highly dependent on the cost structure of the health plan offered to its retirees and due to anticipated medical inflation. In addition to serving as actuary for some of the nation's larger healthcare providers, Milliman's healthcare group publishes the Healthcare Cost Guidelines, an invaluable tool for developing per capita claims costs and medical inflation assumptions for post-employment medical benefit valuations. The Guidelines were first developed in 1954 as a result of Milliman's continuing research on health care costs and the publication has been updated and expanded annually ever since and are continually monitored as they are utilized in measuring the experience and evaluating the rates of our clients, and comparing the information to other data sources. The Guidelines also provide a flexible but consistent basis for the determination of claim costs for a wide variety of health benefit plans and may be used to estimate future claim levels, set provider budgets, set service category budgets, evaluate past experience, and establish interrelationships between different health coverages. Milliman has clients across the entire spectrum of public sector organizations, including: • City, County & State Governments • School Districts • Law Enforcement Agencies • Hospital Districts • Transportation Authorities • Power & Utilities Organizations Il Milliman May 13, 2015 MILLIMAN PROPOSAL FOR GASB 45 ANALYSIS Prepared for the City of South Miami 3 Independence Recognized as an industry leader, Milliman is an independent firm of consultants and actuaries. We are not affiliated with other organizations that might impair our objectivity or our focus on your needs. We deliver top-quality service because our flexible internal structure allows us to assemble collaborative project teams that provide broad expertise under the guidance of an assigned consultant who understands the City of South Miami and your unique needs. State-of-the-Art Valuation System Milliman has developed a state-of-the-art valuation system for GASB 45 valuations that allows our consultants to effectively analyze and maintain data, produce valuation results and project anticipated future GASB costs. Because no two plans are alike, our system is flexible. Accordingly, we are equipped to serve all types of clients with a broad spectrum of plan designs. Client Commitment We have worked hard to earn the trust of our public-sector clients by being very approachable and accessible, using technology to simplify and support all services, and by delivering on our commitments. We intend to follow the same client service model for the City of South Miami and earn the same high level of trust. Thought Leadership and Legislative Updates Milliman is already working with our clients on alerting them to the proposed changes to the GASB 45 standard and will partner with City of South Miami to illustrate how the new standards will impact their financials as well as their reporting requirements for their OPEB plan. We have included as Exhibit 6 a white paper that Milliman wrote regarding the potential impacts of the proposed updates to GASB 45. Il Milliman May 13, 2015 MILLIMAN PROPOSAL FOR GASB 45 ANALYSIS Prepared for the City of South Miami 4 B) GASB Analysis -Project Steps Assess Your Needs The GASB 45 Analysis is expected to accomplish the following objectives: 1) Data Collection We will gather requested information from the City of South Miami related to other post-employment benefits (OPEBs) offered to retirees. This will include the prior actuarial valuation report, so that we may assess the reasonability of the baseline assumptions and valuation results. Upon the review of the prior valuation, we will discuss any proposed changes in advance of completing the updated results. 2) Valuation We will perform calculations in accordance with GASB guidance and current actuarial standards of practice. Key computations will include the OPEB liability, the annual required contribution, and projected future benefit payments. 3) Sensitivity Analysis We will provide sensitivity analysis to demonstrate the impact of variation in . the assumed discount rate and other key assumptions. This information will be valuable in identifying the key drivers of expected cost of associated with providing OPEBs to retirees. 4) Meeting to Present Results We will meet with you via WebEx or conference call to present valuation results and discuss important issues. 5) Financial Statement Preparation We will assist your auditors, as necessary, to review the GASB 45 section of the financial statement to assure that the disclosed information is consistent with our valuation results. Strategy and Implementation Based on conclusions drawn from the valuation, we will be ready to discuss next steps. Those next steps typically include analysis of strategies you may want to explore prior to the effective date of disclosing GASB 45 information in employer financial statements. Key considerations may include: » The effect of potential plan design changes on GASB cost » The impact of changes in employee cost-sharing provisions » Whether advance funding of benefits in a trust is appropriate Ongojng Reporting After completion of the valuation and additional analysis, as needed, we will be well-positioned to provide OPEB valuations on an ongoing basis as required under GASB 45. The steps involved in performing ongoing valuations will be similar to the steps described above for this valuation, except in the case where a more simplified approach may be used for interim valuations. Following t; Milliman May 13, 2015 MILLIMAN PROPOSAL FOR GASB 45 ANALYSIS Prepared for the City of South Miami 5 completion of the valuation, we will meet with you to discuss results and follow with issuance of a formal valuation report. Services Agreement A service agreement is provided as Exhibit 4. If you wish to engage us to provide the GASB 45 consulting services as described herein, please sign this document and return the agreement to us. We will then sign the agreement, provide a copy to you and begin work on the project. To complete your valuation, we will need certain census and plan information. The enclosed Exhibit 3 provides a list of this information. Timing for Completion of Valuation From the time we receive the requested information and a completed service agreement, we expect to complete your valuation within six to eight weeks and schedule a meeting to discuss the results with you. GASB Analysis Timeline i I , I i ~ i I I , I , I • I , I ! , , I , I I , I : , I • 1. , , I I I ! ! ! , , , i • Data Collection • Valuabon • Sensitivity Analysis • Meeting to Present Results o 2 3 4 5 6 7 8 9 WEEKS Il Milliman May 13, 2015 MILLIMAN PROPOSAL FOR GASB 45 ANALYSIS Prepared for the City of South Miami 6 C) Milliman Project Team Lead Actuary Ben is a Principal and Consulting Actuary with the Atlanta office of Milliman. He joined the firm in 1990. As a principal in Atlanta's Employee Benefits practice, he is the lead consultant for a variety of private, public, and multi-employer plan sponsors of pension and savings plans. His consulting activities focus on the administration, design, and funding of these plans. Ben has been a consultant for over 30 years in the employee benefits field. In addition to pension and savings plans, he also has extensive experience with post-retirement medical plans. He is a frequent participant in pension workshops and panels for professional groups. Professional Designations » Fellow, Society of Actuaries » Member, American Academy of Actuaries » Enrolled Actuary under ERISA Degrees }} BS, Management Science, Georgia Institute of Technology » MAS, Georgia State University » Plan Actuary Consulting Actuary Mr. Jaramillo is a consulting actuary with the Atlanta office of Milliman. Mr. Jaramillo practices in the employee benefits field, working with defined benefit and post-retirement medical plans. In addition to preparing and analyzing actuarial valuations, Mr. Jaramillo assists pension and post-retirement medical plan sponsors in quantifying the financial risk associated with such plans. Professional Designations » Associate, Society of Actuaries (ASA) » Member, American Academy of Actuaries (MAAA) » Enrolled Actuary (EA) Degrees » BA (Mathematics), Tulane University Ben Upchurch FSA,EA Relationship Manager and Consulting Actuary Sebastian Jaramillo ASA, MAAA, EA Consulting Actuary Il Milliman May 13, 2015 MILLIMAN PROPOSAL FOR GASB 45 ANALYSIS Prepared for the City of South Miami 7 Health Actuary Ms. Noonan is an Actuarial Consultant with the Employee Benefits Health and Welfare practice in the Dallas office. As a credentialed actuary, Stephanie is responsible for actuarial reports and analysis for medical, dental, life, disability, paid time off, and other ancillary plans. Stephanie's main responsibility is direct consulting to large employers. She also assists on our platform of services for fully insured plans. Prior to joining Milliman in 2007, Stephanie had almost 10 years of extensive actuarial experience in the insurance industry working in areas such as asset / liability management, financial reporting, and product development. Her primary areas of expertise include: }) Asset / Liability cash flow testing » Asset / Liability duration / convexity studies }) Due Diligence » Valuation of liabilities for insurance and annuities » Price / Develop insurance and annuity products » XXX / AXXX reserve financing In her current position as an Actuarial Consultant, Stephanie specializes in the following: )} Large, complex actuarial projects such as HP Assist, FSA Assist » Calculating IBNR reserves » Benchmarking plan designs and recommending changes » Calculating the value of plan design changes using Milliman's proprietary actuarial cost model, Health Cost Guidelines and Dental Cost Guidelines » Performing retiree medical valuations (FASB / GASB) }) Evaluating the feasibility of self-insurance )} Performing Medicare Part D Attestations Professional Designations » Fellow, Society of Actuaries » Chartered Enterprise Risk Analyst » Member, American Academy of Actuaries Education » BS, Biology / Chemistry / Mathematics, college of Saint Mary, Omaha, NE Stephanie Noonan FSA, CERA,MAAA Consulting Actuary Il Milliman May 13, 2015 MILLIMAN PROPOSAL FOR GASB 45 ANALYSIS Prepared for the City of South Miami 8 D) Fee Schedule Fee Assumptions The estimated fees are based on the following assumptions: » There are approximately 132 active employees » There are approximately 7 retirees and beneficiaries » There are three medical options available to retirees, as well as vision and dental » Data provided is usable without audit or significant follow up » Travel and other out-of-pocket expenses are billed separately Estimated Fees Phase Fee Valuation If you prefer that Milliman make an on-site final presentation, our fees will be an additional $1,000. $7,500 Roll Forward valuations under GASB 45 for two years $1,300 per year after a full valuation Plan Design and Funding Analysis Provided as needed and based on scope If a material difference in fees becomes evident due to a change in the scope of the assignment, we will advise you. Il Milliman May 13, 2015 MILLIMAN PROPOSAL FOR GASB 45 ANALYSIS Prepared for the City of South Miami 9 Exhibit 1 -Milliman Facts 2015 Milliman is among the world's largest independent actuarial and consulting firms. With more than 3,000 employees and revenues of $838 million in 2014, the firm serves the full spectrum of business, governmental, and financial organizations. Milliman was founded in 1947 and today has offices in principal cities worldwide, covering markets in North America, Latin America, Europe, Asia and the Pacific, and the Middle East. Organization Milliman is owned and managed by approximately 400 principals. who have been elected in recognition of their technical. professional, and business achievements. Leadership Stephen A. White. President and CEO Kenneth P. Mungan. Chairman Firm Highlights Our consultants have served in leading roles in the actuarial profession, including as presidents of the American Academy of Actuaries, the Brazilian Institute of Actuaries. the Casualty Actuarial Society. the Institute of Actuaries, and the Society of Actuaries, and as board members for the Institute of Actuaries of India, the Staple Inn Actuarial Society. The Actuarial Foundation. and the Actuarial Standards Board. Currently. Craig Reynolds is president of the Society of Actuaries, Rajish Sagoenie is immediate past president of the Dutch Actuarial Association, and Dermot Corry is president of the Society of Actuaries in Ireland. Milliman is the leading provider of actuarial and related products and services to insurance markets worldwide. Employee Benefits • Milliman's Pension Funding Study, published annually. and Pension Funding Index, published monthly, are industry standards for corporate pension funding on a U.S. GAAP basis. • Milliman's Public Pension Funding Study. examining the funded status of the 100 largest U.S. public pension plans, has been widely cited by Reuters. Yahoo!. Pension & Benefits Daily, The Bond Buyer. and other industry publications. • Milliman received a Gold cuP. ranking first in number of best-in-class awards among participating providers across the large-size plan market. in addition to a Bronze cup in the mid-size plan market, with 40 awards in outstanding service to both plan sponsors and participants in the 2014 PlanSponsor magazine DC survey. Milliman introduced the PlanAhead for Retirement"' calculator on its participant website. This unique tool can house all of a participant's potential retirement income and expense information and utilizes a Monte Carlo simulator to analyze up to a thousand scenarios for projecting retirement outcomes. Primary Practice Areas • Employee benefits, investment, and compensation consulting services • Health consulting services • Life and financial consulting services • Property and casualty consulting services a Milliman May 13, 2015 MILLIMAN PROPOSAL FOR GASB 45 ANALYSIS Prepared for the City of South Miami 10 Health • Milliman has consulted on health issues to clients in more than 36 countries on six continents, and has more actuaries who focus specifically on health issues than any other firm in the world. Milliman actuaries certified more than 40% of the Medicare Advantage and Medicare Part D bids in 2014. The firm's disability actuaries consult to more than 65% of individual disability insurers, and our long-term care (LTC) actuaries consult to more than 80% of major LTC insurers in the United States. Milliman assisted more than 90% of the successful CO-OP plans in obtaining their initial federal funding. Milliman actuaries also have helped more than 2,500 employers analyze the provider discounts generated by their networks. Milliman manages and organizes medical claim data for 250 clients and more than 80 million members-encompassing over 9 billion total health care records- through it Medlnsight® data warehouse software package. The Milliman Advanced Risk Adjusters ™ (MARA TM) tools have higher predictive value for health costs than other industry products. Life and Financial Services Milliman has worked with 44 of the top 50 insurers globally and its life insurance actuarial consulting practice is the largest in the United States and is one of the leaders in Europe and Asia. • Millman's Financial Risk Management practice is the leading provider of hedging services in the retirement savings industry, working with $180 billion of assets on behalf of insurers and variable annuity, 401(k), and retail mutual funds. The practice operates on a global basis, managing financial risk in all major markets. Milliman has been involved as an advisor in more than 80% of the major life insurance company merger and acquisition transitions in the United States since 2000 and is a global leader in this area. Milliman worked with The Phoenix Group to fully industrialize the financial reporting process using cloud-based technology to provide Solvency II, IFRS, and MCEV results within 20 days of the close of a quarter, along with daily updates to capital requirements based on actual changes in the market. Phoenix reports that the transformation project paid for itself three times over by the end of the three year program. Milliman has received numerous awards for the tools built to support industrialization of actuarial modeling, most recently receiving the 2014 Insurance Risk Award for Best Actuarial Software. Property and Casualty Milliman's property and casualty reserving software is relied upon by approximately 1,000 professionals at 220 insurers and agencies throughout the world. The firm's new Arius® solution combines Milliman's 20+ years of providing the most widely used deterministic tools with its industry-leading research into using multiple models to simulate loss distributions and reserve variability. Milliman's actuarial and risk management experts are helping many leading P&C insurers adapt to the technical demands of Solvency II and ORSA regulations Il Milliman May 13, 2015 MILLIMAN PROPOSAL FOR GASB 45 ANALYSIS Prepared for the City of South Miami 11 throughout the world. • Milliman's property and casualty practice is among the largest in the world, providing actuarial, underwriting, and claims consulting services to insurers, corporations, and government agencies. It's mortgage insurance, title insurance, captive insurance, and M&A experts are recognized leaders in their respective fields. The Milliman Risk Institute provides thought leadership and market research on best practices for enterprise risk management on a global basis for all major industry sectors, including insurance, energy, transportation, and banking. a Milliman May 13, 2015 MILLIMAN PROPOSAL FOR GASB 45 ANALYSIS Prepared for the City of South Miami 12 Exhibit 2 -Representative Client List ALABAMA City of Athens City of Florence ARKANSAS Arkansas Tech-University FLORIDA Bay County City of Apopka City of Dania Beach City of Eustis City of Haines City City of Madeira Beach GUy of Naples Fire Control & Rescue City of North Port GEORGtA Camden County City of Smyrna LOUStANA 16th Judicial District Court Acadia Parish School Board Allen Parish Police Jury Allen Parish School Board Allen Parish Sheriffs Office Assumption Parish Sheriffs Office Bayou Lafourche Freshwater District Caddo Parish School Board Calcasieu Parish School Board Calcasieu Parish Sheriffs Office Caldwell Parish School Board Cameron Parish Sheriff's Office City of Abbeville City of Baton Rouge! E. Baton Rouge Parish City of Bunkie City of DeRidder City of DeQuincy City of Lake Charles City of Leesville City of Scali City of Ville Platte Claiborne Parish Schools Concordia Parish School Board DeSoto Parish Schools DeSoto Parish Police Jury City of Gadsden City of Montgomery City of Port SI. Lucie Escambia County Franklin County Gulf County Jacksonville Aviation Authority Miami Beach Fraternal Order of Police Putnam County Georgia Ports Authority Gordon County East Baton Rouge Parish Sheriffs Office East Carroll Parish School Board East Feliciana Parish Sheriffs Office Evangeline Parish Assessor's Office Evangeline Parish School Board Evangeline Parish Sheriffs Office Franklin Parish School Board Grant Parish School Board Greater New Orleans Expwy Commission Iberia Parish Sheriffs Office Iberville Parish Sheriffs Office Jackson Parish School Board Lafayette Parish Clerk of Court Lafayette Parish School System Lafayette Parish Sheriffs Department Lake Charles Harbor & Terminal District LaSalle Parish School Board Lincoln Parish School Board Livingston Parish Sheriffs Office LA Assessor's Association (50 offices) Madison Parish School Board Madison Parish Sheriffs Office Monroe City Schools Morehouse Parish School Board Ouachita Parish Police Jury City of Scottsboro Montgomery County Santa Rosa County School Board Southwest FL Water Mgmt. St. John River Water Mgmt. District State of Florida Sumter Count Union County School Board Village of North Palm Beach Troup County Plaquemines Parish Sheriffs Office Rapides Parish Library Rapides Parish Police Jury Red River Parish Sheriffs Office Richland Parish School Board Richland Parish Sheriffs Office Sf Charles Parish Sheriffs Office SI. Helena Parish School Board SI. James Parish Sheriffs Office SI. John the Baptist Parish Sheriff SI. Landry Parish Sheriffs Office SI. Martin Parish Schools SI. Mary Parish School Board SI. Tammany Parish School Board SI. Charles Parish Sheriff's Office Tangipahoa Parish Can. GO Dist 1 Tangipahoa Parish Government Tensas Parish School Board Terrebonne Parish Sheriffs Office Union Parish School Board Vernon Parish Clerk of Court Vernon Parish Government Vernon Parish School Board West Carroll Parish School Board Winn Parish School Board a Milliman May 13, 2015 MILLIMAN PROPOSAL FOR GASB 45 ANALYSIS Prepared for the City of South Miami 13 TENNESSEE City of Millington TEXAS Bowie County Brazos County Burleson County Cameron County City of Allen City of Brenham City of Denton City of Euless City of Jasper City of Katy City of Laredo City of Mount Pleasant City of Plano City of Webster Cameron County Collin County Fort Bend County Gulf Coast Waste Disposal Hays County Jefferson County Lower Neches Valley Authority Metropolitan Transit Authority of Harris County North Texas Municipal Water District Port of Houston AuthorIty Potter County San Jacinto River AuthOrity Tarrant Appraisal District Texarkana Water Utilities Travis County Pecos County Port of Corpus Christi Authority Trinity River Authority Williamson County Winkler County a Milliman May 13, 2015 MILLIMAN PROPOSAL FOR GASB 45 ANALYSIS Prepared for the City of South Miami 14 Exhibit 3 -Requested Information Data is preferred in an Excel format whenever possible. 1) Employee I Retiree Information (see layout below) ACTIVE EMPLOYEE DATA Data Element Format I I I, I, Il Milliman May 13, 2015 MILLIMAN PROPOSAL FOR GASB 45 ANALYSIS Prepared for the City of South Miami 15 2) Summary of plan provisions and any plan changes over past three years. » Type of Insurance: self-insured, fully insured or partially insured (ASO agreement) Please note if the type of insurance is different for actives, pre-65 retirees and post-65 retirees » Medical benefits (for each medical plan) Deductible Co-insurance Office visit co-pay Out-of-pocket maximum » Prescription drug benefits (for each Rx plan) Copay Other » Other post-employment benefits (other than retirement), including life insurance, vision, dental, etc. » For Medicare eligible retirees Are all post-65 retirees required to enroll in Medicare Parts A and S? Part D? How does the Plan coordinate with Medicare? Do retirees over 65 continue to receive health, iife insurance, vision, dental, etc.? Are post-65 retirees on a Medicare Advantage Plan? 3) Contribution Schedule (for actives, pre-65 retirees, and post-65 retirees as applicable) » Include both the employer and participant rates separately as well as the total monthly rate 4) Claims information -24-36 months needed (if self-insured) » Employee groups -active and retirees/beneficiaries » Is the group rated as one entity or are actives and retirees rated separately? » Type of benefit -medical, prescription drug, other » Time period -information for the most recent full year needed; claims information for prior three years preferred » Data should include: Monthly/annual employee counts or membership Claim lags (groups over 2000) or annual paid claims State if claims are net of stop loss recoveries Specific and Aggregate Stop Loss premiums and recoveries (if not adjusted in claims) Administrative expenses 5) Groups not covered by Medicare -if any 6) Most recent pension valuation report (if available) 7) Anticipated plan deSign changes (if applicable) 8) Name and Contact information of your Auditor a Milliman May 13, 2015 MILLIMAN PROPOSAL FOR GASS 45 ANALYSIS Prepared for the City of South Miami 16 Exhibit 4 -Consulting Services Agreement Company: City of South Miami Contact: Address: Telephone: Fax: Milliman Office: CSA Effective Date: This Agreement is entered into between Milliman, Inc. ("Milliman") and City of South Miami ("Company") as of 5/13/2015. Such services may be modified from time to time and may also include general consulting services. These terms and conditions will apply to all subsequent engagements of Milliman by Company unless specifically disclaimed in writing by both parties prior to the beginning of the engagement. Subject to the terms of this Agreement, Company hereby engages Milliman to provide the Services described herein for the plans set forth in the attached Schedule of Services, and Milliman hereby accepts such engagement. In consideration for Milliman agreeing to perform these services, Company agrees as follows. Terms and Conditions 1. limitation of liability. Milliman will perform all services in accordance with applicable professional standards. The parties agree that Milliman, its officers, directors, agents and employees, shall not be liable to the Company, under any theory of law including negligence, tort, and breach of contract or otherwise, for any damages which exceed 5 times the total professional fees paid in the previous 12-month period. In no event shall Milliman be liable for lost profits of the Company or any other type of incidental or consequential damages. The foregoing limitations shall not apply in the event of the intentional fraud or willful misconduct of Milliman. 2. Disputes. In the event of any dispute arising out of or relating to the engagement of Milliman by the Company, the parties agree that the dispute will be resolved by final and binding arbitration under the Commercial Arbitration Rules ofthe American Arbitration Association. The arbitration shall take place before a panel ofthree arbitrators. Within 30 days of the commencement of the arbitration, each party shall designate in writing a single neutral and independent arbitrator. The two arbitrators designated by the parties shall then select a third arbitrator. The arbitrators shall have a background in either insurance, actuarial science or law. The arbitrators shall have the authority to permit limited discovery, including depositions, prior to the arbitration hearing, and such discovery shall be conducted consistent with the Federal Rules of Civil Procedure. The arbitrators shall have no power or authority to award punitive or exemplary damages. The arbitrators may, in their discretion, award the cost of the arbitration, including reasonable attorney fees, to the prevailing party. Any award made may be confirmed in any court having jurisdiction. Any arbitration shall be confidential, and except as required by law, neither party may disclose the content or results of any arbitration hereunder without the prior written consent of the other parties, except that disclosure is permitted to a party's auditors and legal advisors. 3. Choice of Law. The construction, interpretation, and enforcement of this Agreement shall be governed by the substantive contract law of the State of New York without regard to its conflict of laws provisions. In the event any provision of this agreement is unenforceable as a matter of law, the remaining provisions shall stay in full force and effect. 4. No Third Party Distribution. Milliman's work is prepared solely for the internal business use of the Company. Milliman's work may not be provided to third parties without Milliman's prior written consent. Milliman does not intend to benefit any third party recipient of its work product, even if Milliman consents to the release of its work product to such third party. 17 5. Use of Name. Company agrees that it shall not use Milliman's name, trademarks or service marks, Of refer to Milliman directly or indirectly in any media release, public announcement or public disclosure, including in any promotional or marketing materials, customer lists, referral lists, websites or business presentations without Milliman's prior written consent for each such use or release, which consennhall be given in Milliman's sole discretion. 6. Indemnification. Company agrees that it will be responsible for satisfying any losses, claims, damages, judgments, liabilities or reasonable expenses (including reasonable attorneys' fees and expenses) of or against Milliman and its respective officers, employees and agents, resulting from or arising in connection with (i) inaccurate data provided by Company, or (ii) Company's gross negligence or willful misconduct. Milliman agrees that it will be responsible for satisfying any losses, claims, damages, judgments, liabilities, reasonable expenses (including reasonable attorneys' fees and expenses) of or against Company, its affiliates and its respective officers, employees and agents, or the Plan resulting from or arising in connection with Milliman's gross negligence or willful misconduct. The term "affiliate" means any member of a controlled group of corporations or a group ortrades or businesses under common control, within the meaning of Sections 414{b) and 414(c) of the Internal Revenue Code. This provision survives the termination of this Agreement. 7. Terms of Agreement. This Agreement will become effective upon the signature of both parties, and will remain in effect until terminated by either party as provided herein. Either party may terminate this Agreement upon ninety (90) days prior written notice. Milliman will retain any records it has relating the Services provided under this Agreement for a period of three years following the termination of this Agreement. 8. Payment of Fees and Expenses. For the Services proVided on or after the CSA Effective Date, Company will payor cause to be paid to Milliman the fees and expenses specified for such Services. Milliman wilt invoice Company or the Plan monthly, and all invoices will be paid within thirty (30) days of its receipt of the invoice. 9. Direct Expenses. Unless otherwise excepted, Milliman's fee schedule is exclusive of direct expenses, including reasonable travel expenses, printing, shipping, and express mail charges, all of which are charged at costj provided, however, that all such out-of-pocket expenses will be limited to reasonable costs and airline travel expenses will be limited to non-restricted coach fares. 10. Additional Fees. Milliman may assess additional fees for any Services requested by Company which are beyond the scope of the Services described in the attached schedule(s). Such fees will be determined based on standard hourly rates unless another basis is agreed to by Company. Milliman may assess additional fees at standard hourly rates for Services it performs as a result of inaccurate or incomplete data that is provided to Milliman by or on behalf of Company. This Service Agreement will take effect upon the signature of both parties below. City of South Miami MILLIMAN, INC. I have read and agree to the terms and conditions I have read and agree to the terms and conditions oj this Agreement. oj this Agreement. Accepted by: Accepted by: Printed Name: Printed Name: Title: Date: Title: Princi~al Date: 18 Schedule A Actuarial Services Included Entities: I City of South Miami This document provides a description of Milliman's actuarial consulting services and the framework on which our fees for these services are based. Unless otherwise indicated, these services are considered "Basic Services" and are provided for the fees outlined in the fee schedule that applies to these Services. Services outside the scope of Basic Services are "Additional Consulting Services" provided on a time-and- expense basis and are not included in the fees provided for Basic Consulting Services. CONTENTS I. Description of Actuarial Consulting Services II. Fees for Actuarial Consulting Services 19 GA~B45 Analysis, I. Description of Actuarial Consulting Services A. Basic Consulting Services 1) Data Collection We will gather requested information from the City of South Miami related to other post-employment benefits (OPEBs) offered to retirees, This will include the prior actuarial valuation report, so that we may assess the reasonability of the baseline assumptions and valuation results. Upon the review of the prior valuation, we will discuss any proposed changes in advance of completing the updated results, 2) Valuation We will perform calculations in accordance with GASB guidance and current actuarial standards of practice, Key computations will include the OPEB liability, the annual required contribution, and projected future benefit payments, 3) Sensitivity Analysis We will provide sensitivity analysis to demonstrate the impact of variation in the assumed discount rate and other key assumptions. This information will be valuable in identifying the key drivers of expected cost of associated with providing OPEBs to retirees, 4) Meeting to Present Results We will meet with you via WebEx or conference call to present valuation results and discuss important issues, 5) Financial Statement Preparation We will assist your auditors, as necessary, to review the GASB 45 section of the financial statement to assure that the disclosed information is consistent with our valuation results. B. Additional Consulting Services Additional actuarial consulting not included in our Basic Services that may be needed from time to time as approved in advance by Client. Examples include responding to requests from auditors, benefit plan change analyses, funding alternatives, other financial projections, and communication projects. 20 II. Fees for Actuarial Consulting Services This is a not-to-exceed fee project based on the Basic Consulting Services listed in Section I. Description of Actuarial Consulting Services. Milliman will notify the Client of any change in this fee schedule prior to such change becoming effective in the event out-of-scope work is anticipated. The fee is due, in full, once the report has been presented and finalized. The estimated fees are based on the following assumptions: » There are approximately 132 active employees » There are approximately 7 retirees and beneficiaries » There are three medical options available to retirees, as well as vision and dental » Data provided is usable without audit or significant follow up » Travel and other out-of-pocket expenses are billed separately Phase Fee GASB 45 Valuation' $7,500 If you prefer that Milliman make an on-site final presentation, our fees will be an additional $1,000 (out-of-pocket travel expenses to be billed separately). Roll Forward valuations under GASB 45 for two $1,300 per year years after a full valuation Plan Design and Funding Analysis Provided as needed and based on scope Impact of new GASB 45 Legislation Provided if Requested If a material difference in fees becomes evident due to a change in the scope of the assignment, we will advise you. 21 Exhibit 5 -Business Associate Agreement (HIPAA Compliance) MILLIMAN, INC. BUSINESS ASSOCIATE AGREEMENT This BUSINESS ASSOCIATE AGREEMENT ("Agreement") is entered into effective the _ day of , 2015 by and between the City of South Miami and certain of its member offices ("Client") and Milliman, Inc. ("Milliman"). RECITALS A. Client is a Covered Entity as defined under the Health Insurance Portability and Accountability Act of 1996 ("HIP AA") and is therefore subject to HIP AA and its implementing regulations, including the Standards for Privacy of Individually Identifiable Health Information (the "Privacy Rule") and the Security Standards for the Protection of Electronic Protected Health Information (the "Security Rule"), and Subtitle D of the Health Information Technology for Economic and Clinical Health Act ("HlTECH") enacted as part of the American Recovery and Reinvestment Act of 2009 (collectively, HIP AA, the Privacy Rule, Security Rule and HITECH shall be referred to herein as the "HIP AA Regulations"). B. Protected Health Information received from Client or created or received by Milliman on behalf of Client ("PHI") may be needed for Milliman to perform the services (the "Services") requested by Client and described in any underlying agreement between the parties (the "Underlying Agreement"). C. To the extent Milliman needs to access PHI to perform the Services, it will be acting as a Business Associate of Client and will be subject to certain provisions of the HIP AA Regulations. D. Milliman and Client wish to set forth their understandings with regard to the use and disclosure of PHI by Milliman so as to comply with the HIP AA Regulations. AGREEMENTS In consideration of the Recitals and the mutual agreements below, the parties agree as follows: I. Defined Terms. Capitalized terms used, but not otherwise defined, in this Agreement shall have the same meaning as those terms in the HIP AA Regulations. 2. Milliman's Obligations and Permitted Activities. (a) Milliman agrees to not use or further disclose PHI other than as required to perform the Services, requested by Client or Required By Law, or as otherwise permitted herein. 22 (b) Milliman agrees to use reasonable safeguards to prevent use or disclosure of PHI other than as provided for by this Agreement, and shall develop, implement, maintain and use appropriate administrative procedures, and physical and technical safeguards, to reasonably preserve and protect the confidentiality, integrity and availability of electronic PHL (c) Milliman agrees to report to Client, without unreasonable delay and in no case later than five (5) business days following actual knowledge by Milliman: (i) Any use or disclosure of PHI not provided for by this Agreement. (ii) Any Security Incident of which Milliman becomes aware; provided, however, that the parties acknowledge and agree that this section constitutes notice by Milliman to Client of the ongoing existence and occurrence of attempted but Unsuccessful Security Incidents of which no additional notice to Client shall be required. Unsuccessful Security Incidents shall include, but not be limited to, pings and other broadcast attacks on Milliman's firewall, port scans, unsuccessful log-on attempts, denials of service and any combination of the above, so long as such incidents do not result in unauthorized access, use or disclosure of Client's electronic PHL (iii) Any Breach of Unsecured PHI, as defined in 45 CFR 164.402. Following the initial notification of any such Breach, Milliman shall provide a report to Client that includes, to the extent possible: [AJ a brief description of what happened, including the date of occurrence and the date ofthe discovery by Milliman; [BJ a description of the PHI affected, including the names of any Individuals whose PHI has been or is reasonably believed to have been accessed, acquired or disclosed and the types of PHI involved (such as full name, social security number, date of birth, home address, account numbers, etc.); and [C] a brief description of what Milliman has done to investigate the Breach, to mitigate harm to Individuals, and to protect against any further Breaches. Milliman also shall provide to Client any other available information Client is required to include in its notification to affected Individual(s). (d) Milliman agrees to ensure that any agent or subcontractor to whom it provides PHI agrees to the same or substantially similar restrictions and conditions as those that apply to Milliman through this Agreement with respect to such PHL (e) Milliman shall make its internal policies, procedures and records relating to the use and disclosure of PHI reasonably available to the Secretary or to Client if necessary or required to assess Milliman's or the Client's compliance with the HIP AA Regulations. (f) It is not anticipated that Milliman will maintain a Designated Record Set on behalf of Client; however, if Milliman maintains a Designated Record Set on behalf of Client, Milliman agrees to, at Client's written request: (i) provide access to such PHI in order to assist Client in meeting its obligations under the Privacy Rule, and (ii) make any amendment(s) to such PHI as Client so directs or agrees to pursuant to the Privacy Rule. 23 (g) So that Client may meet its disclosure accounting obligations under the HIP AA Regulations, Milliman agrees to document disclosures of PHI made by Milliman which are not excepted from disclosure accounting requirements under the HIP AA Regulations. (h) Milliman may use PHI for Milliman's proper management and administration or to carry out its legal responsibilities. Milliman may disclose PHI for Milliman's proper management and administration, provided that: (i) Milliman obtains reasonable assurances from the person to whom PHI is disclosed that it will remain confidential and used or further disclosed only as Required By Law or for the purpose for which it was disclosed to the person; and (ii) the person notifies Milliman of any instances of which it is aware in which the confidentiality of PHI has been breached. Milliman also may make disclosures that are required by law. (i) Milliman may use PHI to provide Data Aggregation services to Client as permitted by the Privacy Rule. G) Milliman may, at its option: (i) Deidentify PHI in accordance with the requirements ofthe Privacy Rule and maintain such deidentified health information indefinitely; provided that all identifiers are destroyed or returned in accordance with this Agreement. (ii) provided that Milliman: Create a Limited Data Set for the purpose of providing the Services, [a] Does not use or further disclose PHI contained in the Limited Data Set except as necessary to provide the Services or as provided for in this Agreement or otherwise Required By Law; [b] Uses appropriate safeguards to prevent the use or disclosure of PHI contained in the Limited Data Set other than as provided for by this Agreement; [c] Reports to Client any use or disclosure of PHI contained in the Limited Data Set of which Milliman becomes aware that is not provided for by this Agreement; [d] Ensures that any agents or subcontractors to whom it provides access to the Limited Data Set agree to the same restrictions and conditions that apply to Milliman under this Agreement; and [e 1 Does not re-identify PHI or contact the Individuals whose information is contained within the Limited Data Set. 3. Client's Obligations. (a) Client shall not request Milliman to use or disclose PHI in any manner that would not be permissible under the Privacy Rule or the Security Rule if done by Client. (b) Client shall not provide Milliman with more PHI than that which is minimally necessary for Milliman to provide the Services and, where possible, Client shall provide any PHI needed by Milliman to perform the Services in the form of a Limited Data Set, in accordance with the HIP AA Regulations. 24 (c) Client shall clearly and conspicuously designate all PHI as such before providing it to Milliman. (d) Client acknowledges and agrees that neither this Agreement nor the Underlying Agreement requires Milliman to make any disclosure for which an accounting would be required under the HIP AA Regulations. Client further agrees that it shall be solely responsible for tracking and providing Individuals an accounting of any disclosures made by Client to Milliman. (e) Client acknowledges and agrees that the provisions of section 2G)(ii) of this Agreement shall constitute a Data Use Agreement between the parties. 4. Term and Termination. (a) Term. This Agreement shall be effective as of the date first written above, and shall terminate when all PHI is destroyed or returned to Client. If Milliman determines, in accordance with subsection 4( c )(ii) below, that it is infeasible to return or destroy PHI, the protections of this Agreement with respect to such PHI shall remain in effect until such PHI is returned or destroyed. (b) Termination. Upon a party's knowledge of a material breach by the other party, the nonbreaching party shall either: (i) Provide an opportunity for the breaching party to cure the breach or end the violation and terminate this Agreement if the breaching party does not cure the breach or end the violation within the time specified by the nonbreaching party; or (ii) Immediately terminate this Agreement if the breaching party has breached a material term of this Agreement and cure is not possible. (c) Effect of Termination. (i) Except as otherwise provided in subsection 4(c)(ii) below, upon termination of this Agreement for any reason, Milliman shall return or destroy all PHI. This provision shall also apply to PHI that is in the possession of subcontractors or agents of Milliman. (ii) If Milliman determines that returning or destroying any or all PHI is infeasible, the protections of this Agreement shall continue to apply to such PHI, and Milliman shall limit further uses and disclosures of PHI to those purposes that make the return or destruction infeasible, for so long as Milliman maintains such PHI. Client hereby acknowledges and agrees that infeasibility includes Milliman's need to retain PHI for purposes of complying with its work product documentation standards. 25 5. Miscellaneous. (a) Re{!Ulatorv References. A reference in this Agreement to a section in the HIP AA Regulations means the section as in effect or as amended, and for which compliance is required. (b) Amendment. Upon the effective date of any final regulation or amendment to the HIP AA Regulations, this Agreement shall be deemed automatically amended so that the obligations it imposes on the parties remain in compliance with such regulations. Following amendment of the Agreement in this manner, the parties shall, as necessary, work together to clarify their respective obligations with respect to any new requirements under the modified HIP AA Regulations. (c) Independent Contractors. Milliman and Client are independent contractors and this Agreement will not establish any relationship of partnership, joint venture, employment, franchise or agency between Milliman and Client. Neither Milliman nor Client will have the power to bind the other or incur obligations on the other party's behalf without the other party's prior written consent, except as otherwise expressly provided in this Agreement. (d) Conflicts. In the event that any terms of this Agreement are inconsistent with the terms of the Underlying Agreement, then the terms of this Agreement shall control. (e) Entire Agreement. This Agreement shall constitute the entire agreement of the parties hereto with respect to the subject matter hereof and supersedes all prior agreements, oral or written, and all other communications between the parties hereto relating to such subject matter. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the date first written above. MILLIMAN, INC. City of South Miami By ________________________ __ By ________________________ ___ Title __________________________ __ Title. _________________________ __ 26 Exhibit 6 -White Paper on Proposed GASB 45 New Regulations a Milliman ALERT GASB Issues Two Other Postemployment Benefit (OPEB) Related Exposure Drafts SUMMARY The Governmental Accounting Standards Board (GASS) issued two Exposure Drafts regarding OPE8~related financial reporting by state and local governments. These proposed standards will significantly alter the methods used to account for postemployment OPEBs, similar to the new GASS 67/68 pension standards. Like the pension standards, the unfunded liability will become a balance sheet item rather than a note disclosure. The Exposure Drafts are available on GASS's website, www.gasb.org, KEY CHANGES INCLUDED IN THE EXPOSURE DRAFTS: • The most significant effect of the Exposure Draft is to require that governments report a Net OPEB Liability in their statement of financial position, the calculation of which differs significantly from the Net OPES Obligation under the current GASS 45 standard. This amount is the difference between the total OPES liability (i.e., the Entry Age Normal Accrued liability) and the plan's fiduciary net position (i.e., the Market Value of Assets) for governments that provide OPES benefits through a trust meeting specified criteria. If there is no trust or the criteria are not met, the net OPES liability reported in its statement of financial position is the entire OPES liability . • It also proposes significant changes to the calculation of the total OPES liability and expense, including: -Use of a bifurcated discount rate that applies a) the expected long·term rate of return on investments for years in which the plan is projected to have assets, and b) the interest rate on a tax~exempt 20-year M-or~higher rated municipal bond index for years after the plan is projected to no longer have assets (if such a point is ever expected to occur). The expected long-term rate of return on investments may be used if 1) the trust meets specified criteria and 2) plan assets are invested using a strategy to achieve that return. Otherwise, the interest rate on a tax-exempt 20-year M-or-higher rated municipal bond index is used as the discount 'rate for all years. -Required use of the Entry Age Normal cost method to determine the total pension liability and the normal cost component of the OPES expense. The use of the Unit Credit or the Projected Unit Credit cost method is no longer permitted. -Immediate recognition of additional components of OPES expense. This means immediate recognition of changes in the total OPES liability resulting from plan changes, and significantly accelerated recognition of changes in the total OPES liability resulting from assumption changes or plan experience. -Community-rated plans (i.e., plans where the premium rates are not affected by the claims experience of the group) will be required to measure OPES liabilities using age adjusted premiums. This means that plan sponsors of community-rated plans will be required to record a financial statement liability to reflect the implicit rate subsidy, even if retirees pay 100% of the premium. Under the current GASB standards, employers who sponsor community-rated plans where retirees pay' 1 00% of the premium recognize no financial statement liability. An implicit rate subsidy takes into account the fact that the cost of healthcare is higher for retirees not eligible for Medicare versus the average premium paid by employers for active employees. -A more extensive set of footnote disclosures and required supplementary information. August 2014 27 -An actuarial valuation at least every two years, The current GASS standards required an actuarial valuation every three years for some public employers, -The Exposure Drafts continue the option to use a specified Alternative Measurement Method in place of an actuarial valuation for purposes of determining the total OPES liability for benefits provided through OPES plans in which there are fewer than 100 plan members in order to reduce the administrative costs of complying with the GASS standards for smaller governments, BACKGROUND GASS is proposing "major improvements" for accounting and reporting on OPESs, such as retiree medical benefits, that governments provide to their employees, It also aims to improve information relating to entities that provide financial support to other governments, According to GASS, "Governments have an obligation to pay OPES based on the level of retirement benefits promised to employees in exchange for their service, The GASS's proposed standards address how to measure the long-term liability and annual costs of OPES for the purpose of reporting them in the annual audited financial statements, The proposals do not apply to how a government measures OPES for the purpose of determining whether to set assets aside to fund future OPES payments and, if so, how' much to set aside~' • The Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions Exposure Draft (OPES Employer Exposure Draft) relates to reporting by governments that provide OPES to their employees and for governments that finance OPES for employees of other governments (amending GASS Statement No, 45), This statement would be effective for fiscal years beginning after December 15, 2016. • The Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans Exposure Draft (OPES Plan Exposure Draft) addresses the reporting by the OPES plans that administer those benefits (amending GASS Statement No, 43), This statement would be effective for fiscal years beginning after December 15, 2015, The comment period will have two components: • Written comments are requested from the users of government financial information by August 29 • Public hearings will be held on September 10, 11, and 12 IMPLICATIONS The proposed changes in OPES reporting are sweeping in scope, and they will serve to increase the balance sheet liability and may significantly increase the volatility of annual OPES expense, There are several areas that are significant departures from current practice, and may therefore cause concern for governmental employers, some of which are: • The recognition of the Net OPES Liability in the employer's financial statements will likely be a significant increase in the amount of liability than was reported under prior GASS stand;3.rds, • The annual OPES expense, because it includes immediate recognition of liability changes resulting from plan changes and some assumption changes, will be significantly more volatile from year to year than the Annual Required Contribution under GASS 45, It is unlikely that employers will wish to fund their plans based on the annual OPES expense, so there will likely be two sets of calculations in the future for employers who are funding their benefits, one for financial reporting and one for plan funding, • For those employers funding their OPES benefits, the advantage of using a higher discount rate for financial reporting purposes will only apply for the period in which invested assets and projected future contributions are used to cover projected OPES benefits, This will require a review of current funding policies and the impact under the proposed standards, • For those employers who participate in community rated plans, the Exposure Drafts will require the reflection of any "implicit rate subsidy~' This means that some employers will need to modify current methods for determining the OPES liability and some employers will now be required to recognize a liability for OPES where the current standards did not. ACTION Every state and local government currently complying with GASS 43 and 45 should review the proposed requirements of the Exposure Drafts and be aware that stakeholders are now being requested to provide commentary to GASS. For more information, please contact your Milliman consultant. (;0PYI'I(lht c 2014 IViilliman.lnc, All Ri\jhts Rcsor'l"d. 28 MIAMI HERALD I MiamiHerald.com -------" "--- SOAPBOX Traffic laws need to be enforced Doyou ever wonder what it would be like if the traffic laws in Florida were actual- ly enforced? I'm talking about how some drivers as- sume that once you make it driving through Pinecrest (south of the border) the en~ forcement of traffic laws is nonexistent. Calming adjustments were discussed for our inte- rior and major roads in Pal- metto Bay to help combat speeding drivers. I've been trying to get something done in my neighborhood for decades. When my com- plaints were finally ad- dressed, radar speed signs were temporally placed and an occasional speed trap is set up. So after all this, after a couple of weeks the speed- ing and reckless driving on my street continues. If I might make a suggestion to help solve this issue con~ cerning traffic calming, complain to Miami-Dade Public Works if our local government seems reluc~ tant to aggressively follow through (as in the past) with this, Most importantly, it all comes down to the enforce- ment of our driving laws. When I drive through the Village of Pinecrest, I don't see many traffic calming de- vices except for one thing, signs on their speeding signs saying "STRICTLY SE SUNDAY, JUNE 7, 2015 I 29SE ,,",,''''''''''' ,"t. < •• ! '.'lTh ';1'~"" ~:I f~ ~-\, )=~ ";;b~~!;/ CITY OF SOUTH MIAMI COURTESY NOTICE NOTICE IS HEREBY given that the City Commissioll of the City of South Miami, Florida will conduct Puhlic Hearing(s) at its regular City Commission meeting scheduled for Tllesday June 16. 2015 begiltning at 7:00 p.m., in the City Commission Chambers, 6130 SlIDset Drive, to consider the following item(s): ( • A Resolution authorizing the City Manager to contract with Gabriel Roeder smith) & Company to perfonn other Post~EmploYIlleIlt Benefits (OPEB) valuation required for fiscal years 2015, 2016, and 2017 Comprehensive Annual Financial Report (CAFR)" A Resolution relating to a reque1>1 for a variance from Section 20~3.5(E) of the Land Development Code to exceed the maximum building coverage of 30% for a one~story addition to a single family residence located at 7830 SW 57 Court, South Miami, Plorida, within the RS-3 zoning district. ALL interested parties arc invited to attend and will be heard. For further information, please contact the City Clerk's Office at: 305~663~6340. Maria M. Menendez, CMC City Clerk Pursuant to Florida StlItutes 286.0105, the City hereby advises the public that if a person decides to appeal any decision made by this Board, Agency or Commission with respect to any matter considered at its meeting or hearing. he or she .."ill need a record ofthe proceedings, and that for such purpose, affected person may need to ensure that a verbatim record of the proceedings is made which record includes the testimony and evidence upon which the appeal is to be b.ased.