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2024-10-15 Item. VII.G. Ex.9 • • Exhibit 9 10/15/2024 VR411 VIi•et, P:954.527.1616 F:9`>4.525.0083 www.grsconsulting.com 1GRS June 3, 2024 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: 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, 2024. As such, the calculations will be performed as of September 30, 2023. 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, 2025 using a roll-forward method permitted under GASB rules based on calculations performed as of September 30, 2023. 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. One East Broward Boulevard Suite 505 Ft.Lauderdale,Florida 33301-1804 • • Ms. India Riedel June 3, 2024 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. SF RS • • Ms. India Riedel June 3, 2024 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@cityofokeechobee.com, 55 SE 3`d 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, 2024 September 30, 2023 September 30, 2023 $3,500 September 30, 2025* September 30, 2024 September 30, 2023 $1,400 *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. GASB 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. -;GRS • • Ms. India Riedel June 3, 2024 Page 4 Sincerely, Gabriel, Roeder,Smith &Company Nicolas Lahaye, FSA, EA, MAAA, FCA Consultant and Actuary NL/bm APPROVED BY: CITY OF OKEECHOBEE Dowling R. Watford,Jr., Mayor ATTEST: Lane Gamiotea, CMC, City Clerk REVIEWED FOR LEGAL SUFFICIENCY: John J. Fumero, City Attorney Nason Yeager Gerson Harris & Fumero, P.A.