TOWN OF ATHERTON
                                      91 Ashfield Road
                                     Atherton, CA 94027

Date: October 17, 2011

To:   Interested Parties

From: Louise Ho, Finance Director

Re:   Request for Proposal – Actuarial Study on Post Retirement Benefits Other Than Pensions

      The Town of Atherton (Town) is soliciting proposals from qualified actuaries to provide
      Actuarial Consulting Services that comply with the requirements of Governmental
      Accounting Standards Board (GASB) Statement 45. Attached is the Request for Proposal

      Link to RFP:

      If your firm would like to be considered for this engagement, you are invited to submit
      three (3) copies of your response in writing by 5 p.m., November 1, 2011, to the
      following address:

                                         Louise Ho
                                      Finance Director
                                     Town of Atherton
                                     91 Ashfield Road
                                    Atherton, CA 94027





           October 17, 2011
                                  Town of Atherton
    RFP – Actuarial Study on Post Retirement Benefits Other than

The Town implemented GASB 45 in FY 2009-2010 and has the first actuarial valuation of
postemployment healthcare program prepared in 2009. Due to recent reduction in workforce and
the City Council’s decision to prefund the Annual Required Contribution, the Town is soliciting
proposals from qualified actuaries to provide Actuarial Consulting Services that comply with the
requirements of Governmental Accounting Standards Board Statement 45, Accounting and
Financial Reporting by Employers for Post-Employment Benefits Other Than Pensions.

A. General Information
    The Town of Atherton is a general law city incorporated under the California law in 1923.
    The Town serves a population of approximately 7,000 and is located in San Mateo County.
    The governing body is a five-member City Council composed of the Mayor and four council
    members all of whom are elected at-large and serve four-year terms.

    The Town provides administration, finance, police, planning, building, and public works.
    Planning, Building, and Public Works maintenance are handled by outside contractors. Fire
    services are provided by the Menlo Fire Protection District. The Town owns the library
    building but the library operation is run by the County of San Mateo through the Library Joint
    Powers Agreement.

B. Information about Health Care Benefits
   The Town offers different level of medical benefits to active and retired employees and their
   eligible dependents. Effective November 2011, the Town’s medical plan was converted to a
   flexible benefits plan for Management, Confidential, and Teamsters groups and adopted a
   second tier retiree medical benefit for new hires in these groups. The Atherton Police
   Officers’ Association is composed of sworn and nonsworn personnel.

    For FY 2011-2012, the Town is budgeted for 35 regular positions and has 34 annuitants.

The exact range and extent of services is subject to negotiation but should include, at a
minimum, professional services and dedicated personnel to perform the following:

   Calculate the post retirement medical benefit liability based on the present value of future
    benefits to be provided to current and future retirees by bargaining groups, employee names,
    and departments.

   Calculate the Annual Required Contribution, Actuarial Liability and other required
    calculations as prescribed by GASB 45.

   The actuarial assumptions should be determined through discussions with Town staff before
    the study.

   Provide a comprehensive report and executive summary discussing assumptions, data
    utilized, and results. The executive summary should be clear and non-technical. The report
    should provide sufficient information for staff to implement GASB 45 reporting on the
    Town’s General Purpose Financial Statements, including note disclosure and required
    supplemental information.

   Attend at least one public meeting to present the study result to the City Council.

       October 17, 2011  Request for Proposal issued
       November 1, 2011  Due date for proposal (due by 5 p.m.)
       November 3, 2011  Telephone Interview with selected vendor (9 a.m.)
       November 16, 2011 Contract awarded
       February 1, 2011  Completion and presentation of final report


The Town staff will provide the consultant with all the relevant information it has pertaining to
current and retired employee census data including medical plan data, descriptions of benefit
plans and premiums, eligibility requirements, spousal and dependent benefits, and any other
pertinent information by bargaining groups and departments necessary to complete the actuarial


A. General Requirements
  The proposal submission shall include an original and three (3) copies to the address below.
  Any questions regarding this proposal or additional information required by the respondents
  should be directed to:

    Louise Ho, Finance Director
    91 Ashfield Road
    Atherton, CA 94027
    (650) 752-0552

B. Format for Proposal
   Responses to this Request for Proposal shall include the following:

    1. Transmittal Letter
       General introduction and briefly stating the proposer’s understanding of the actuarial
       services to be performed; a positive commitment to perform the service within the time
       period specified; the name(s) of the person(s) authorized to represent the proposer, title,
       address, and telephone number.

    2. Firm Qualifications and Staff Experience
       To qualify the firm must have extensive experience in GASB 45 actuarial study. Identify
       the principal staff and partners who would be assigned to the engagement. Indicate their
       experience and whether each such person is licensed or a certified actuary. The Town of
       Atherton reserves the right to approve or reject any replacement of staff during the term
       of the engagement.

   3. Similar Engagements with Other Government Entities
      Provide a list of not less than three client references for which services similar to those
      outlined in this RFP are currently being provided. For each reference listed, provide the
      name of the organization, address, and telephone number of the responsible person within
      the reference’s organization.

   4. Report Format
      The proposer should include sample formats of final report.

   5. Total All-Inclusive Maximum Price
      Under separate cover, the sealed dollar cost bid should contain all pricing information.
      The total all-inclusive maximum price to be bid is to contain all direct and indirect
      costs including all-out-of pocket expenses.

   6. Rates by Partner, Supervisory and Staff
      The cost proposal should include detailed information regarding the estimated number of
      hours to be dedicated to the Town’s engagement, delineated by staffing level and the
      hourly rate of each.

C. Insurance Requirements
   The selected firm shall maintain professional liability, worker’s compensation and
   automobile insurance requirements during the entire term of their engagement.

Proposals will be evaluated using three sets of criteria. Firms meeting the mandatory criteria will
have their proposal evaluated and scored for both technical qualifications and price. The
following represent the principal selection criteria which will be considered during the evaluation

    1. Mandatory Elements
       a. The firm has no conflict of interest with the Town of Atherton
       b. The firm follows the instructions set forth in the RFP
    2. Technical Qualifications
    3. Price

       1. There is no expressed or implied obligation for the Town of Atherton to reimburse
          responding firms for any expenses incurred in the preparation of proposals in
          response to this request.

2. The Town reserves the right to reject all proposals, either in part or in its entirety, or
   to request and obtain, from one or more of the consulting firms submitting proposals,
   supplementary information as may be necessary for Town staff to analyze the
   proposals pursuant to the consultant selection criteria contained herein.

3. All proposals submitted in response to this RFP become the property of the Town and
   public records and, as such, may be subject to public review.

4. Information provided by the Town is for the sole purpose of conducting an actuarial
   analysis of the Town’s financial liability under GASB 45 and shall not be disclosed to
   any third party without the Town’s written permission.

5. If the Town cannot successfully negotiate a professional agreement acceptable to both
   parties, the Town reserves the right to award the contract to any firm determined to be
   qualified to perform the services.


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