2022-07-05 Ex 05Exhibit 5
7/5/2022
t�G R _S
June 3, 2022
Ms. India Riedel
Finance Director
City of Okeechobee
55 SE 3'd Avenue
Okeechobee, FL 34974
Re: City of Okeechobee GASB 75 OPEB Engagement letter
Dear Ms. Riedel:
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We are writing to provide an engagement letter for actuarial services relating to GASB 75 Other Post -
Employment Benefits (OPEB). By signing and dating this engagement letter, Gabriel, Roeder, Smith &
Company (GRS) and the City of Okeechobee (the "City') agree to the scope, work product and terms
described herein. This engagement letter is fashioned after those for auditing services, for consistency
with other professionals.
We will perform the "Alternative Measurement Method" calculations necessary for the City to comply
with GASB Statement No. 75 for the fiscal year ending September 30, 2022. As such, the calculations
will be performed as of September 30, 2021. We will provide actuarial advice concerning assumptions
and a final Report reviewed and signed by an actuary. This service includes full telephone access to our
actuaries and analysts during and after the process. It should be understood that this is not an actuarial
valuation because the calculations will fail various actuarial standards of practice on account of following
the GASB's Alternative Measurement Method.
We will then perform the "Alternative Measurement Method" calculations necessary for the City to
comply with GASB Statement No. 75 for the fiscal year ending September 30, 2023 using a roll -forward
method permitted under GASB rules based on calculations performed as of September 30, 2021. The
results will be presented in a letter report.
The Reports will provide figures necessary for compliance with GASB Statement No. 75 for all OPEBs,
presented in total, without any breakouts by union or employee groupings and no breakouts by
enterprise fund or function. The City will be responsible for determining any such breakouts and for the
narrative material required for the Notes.
The work papers for this engagement are the property of Gabriel, Roeder, Smith & Company (GRS).
While we may be requested to make certain work papers available to auditors or to regulators pursuant
to authority given by law or regulation, access to the requested work papers will be provided under
supervision of GRS personnel. Furthermore, upon request, we may provide photocopies of selected
work papers to regulatory agencies. These regulatory agencies may intend or decide to distribute the
photocopies or information contained therein to others, including other governmental agencies.
Ms. India Riedel
June 3, 2022
Page 2
The City management has responsibility for the financial statements and all representations contained
therein. Management also has responsibility for preventing and detecting fraud, for adopting sound
accounting policies and establishing and maintaining effective internal control to maintain the reliability
of the financial statements and to provide reasonable assurances against the possibility of
misstatements that are material to the financial statements. This responsibility extends to the use or
misuse of the results of our OPEB Report, presentations at on -site meetings and during telephone
conferences. The Report and presentation materials may be provided to parties other than the City only
in their entirety and only with the permission of the City.
Upon execution of this letter of engagement, we will prepare a data request letter. The City will compile
and transmit all employee and retiree census data as requested in electronic form and in the format
requested. The City will collect and transmit all documentation and other information requested
regarding the other post -employment benefits provided.
The City agrees that all information, documents and data we request in connection with our Report will
be made available to us, that all such information, documents and data provided to us will be complete
and accurate, that we will have the full cooperation of the City's personnel and vendors, that the City
will issue a representation letter from management concerning these matters, and that GRS may rely
upon such information, documents and data with no duty to inquire or audit such.
Because of the importance of management's representations as to the completeness and accuracy of
the information, documents and data which it provides to GRS, the City agrees to release GRS and its
personnel from any claims, liabilities, costs and expenses relating to our services under this letter
attributable to any misrepresentations in the representation letter referenced above. Furthermore, GRS
agrees to maintain the employee data secure and confidential. Any dispute concerning this engagement
will be resolved internally and, if not, with waiver of any jury trial and with venue at the place where the
services are rendered. Except for gross negligence or willful misconduct, GRS liability hereunder will be
limited to our fees.
The City is a public agency subject to Chapter 119, Florida Statutes. As required by law, and only to the
extent required by law, GRS shall comply with Florida's Public Records law. GRS is not acting on behalf
of the City in providing actuarial and consulting services, as defined by statutes and interpreted by the
Florida Attorney General Advisory legal Opinions. GRS shall allow public access to all documents,
papers, letters, or other material subject to the provisions of Chapter 119, Florida Statutes, and made or
received by GRS in conjunction with this Agreement. Specifically, as required by law, and only to the
extent required by law, GRS shall:
(a) Keep and maintain public records that ordinarily and necessarily would be required by the
City in order to perform the service.
(b) Upon request of the City's custodian of public records, provide the City with a copy of the
requested records or allow the records to be inspected or copied within a reasonable time at a
cost that does not exceed the cost provided in state law or as otherwise provided by law.
�R S
Ms. India Riedel
June 3, 2022
Page 3
(c) Ensure that public records that are exempt or confidential and exempt from public records
disclosure requirements are not disclosed except as authorized by law for the duration of the
contract term and following completion of the contract if GRS does not transfer the records to
the City.
(d) Meet all requirements for retaining public records and transfer, at no cost, to the City all
public records in possession of the GRS upon termination of the Agreement and destroy and
duplicate public records that are exempt or confidential and exempt from the public records
disclosure requirements. All records stored electronically must be provided to the City in a
format that is compatible with the information technology system of the City.
IF THE CONTRACTOR HAS QUESTIONS REGARDING THE APPLICATION OF
CHAPTER 119, FLORIDA STATUTES, TO THE CONTRACTOR'S DUTY TO PROVIDE
PUBLIC RECORDS RELATING TO THIS CONTRACT, CONTACT THE CUSTODIAN OF
PUBLIC RECORDS AT (863) 763-3372, Igamiotea@citvofokeechobee.com, 55 SE
3rd AVENUE, OKEECHOBEE, FL 34974.
The base fees for the services are described in the following chart:
Reporting Date
Measurement Date
Calculation Date
Fee
September 30, 2022
September 30, 2021
September 30, 2021
$3,200
September 30, 2023'
1 September 30, 2022
September 30, 2021
$1,200
• The off-year of this engagement presumes a "roll forward'; whereby the previous year's
calculations would be adjusted so as to apply to the projected year. GAS8 Statement No.
75 permits calculations every other year unless significant changes occur, in which case
new calculations must be performed. if calculations were required or requested by the
City in the intermediate year's), the cost would be developed by adjusting the initial
report fee for inflation.
Payment is due upon completion of the Report. There is no separate fee for telephone conferences or
other expenses. No other surveys, impact studies or other projects are contemplated in the scope of
this engagement. Additional studies, comparisons with other Cities, or other services will be performed
upon request with, whenever possible, fixed fee quotes provided in advance.
We stand behind these results and are available to assist management in other strategic areas for
controlling the OPEB liabilities.
Please return this signed agreement and retain a copy for your records. We thank you and other City
officials for your confidence in our firm and look forward to working with you in the years ahead. Should
you have any questions regarding these matters, please do not hesitate to contact us.
4 G R<
Ms. India Riedel
June 3, 2022
Page 4
Sincerely,
For the City of Okeechobee
Nicolas Lahaye, FSA, EA, MAAA, FCA Print Name (Authorized Party)
Consultant and Actuary
Gabriel, Roeder, Smith & Company
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AERS
Signature