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Home My WebLink AboutHealthcare ActuariesCONTRACTED SERVICES AGREEMENT This Agreement is made as of the 14th day of January 2016, by and between the City of Pasco, Washington, (hereinafter "the City") and Healthcare Actuaries, 16519 107th Place Northeast, Bothell, Washington (hereinafter "the Contractor"). WHEREAS the City and the Contractor desire to enter into an agreement for the performance by the Contractor of professional services in connection with actuarial valuations services for the City's LEOFF I and Firemen's retiree healthcare and pension plans; and WHEREAS, the Contractor represents that he is properly qualified to render such services; and WHEREAS, the City desires to retain the Contractor to provide contract management services; and WHEREAS, the parties desire to set forth herein the terms and conditions under which the Contractor shall furnish said Contracted Services. NOW, THEREFORE, in consideration of the premises and of the mutual covenants contained herein, the City and the Contractor agree as follows: I. Independent Contractor. It is the intention of the parties hereto that the Contractor shall be an independent contractor in the performance hereof, and that nothing in this Agreement shall be construed to be inconsistent with his status as an independent contractor. The City and the Contractor understand that the City and the Contractor shall not consider the fees or any other amounts the City pays the Contractor under this Agreement to be salary for pension purposes, and that the Contractor will not be entitled to any of the other fringe and supplemental benefits of the City. The Contractor shall be responsible for the payment of all payroll taxes or contributions to its personnel performing Services hereunder. The Contractor shall be liable for failure to do so, and the Contractor hereby indemnifies and agrees to hold the City harmless from and against any loss, cost, or expense incurred by the City due to the Contractor's failure to withhold any such taxes or to make such contributions in respect of any fee the City pays to the Contractor. The Contractor at no time shall hold itself out as an agent, subsidiary, or affiliate of the City for any purpose, including reporting to any governmental authority, and shall have no authority to bind the City to any obligation. Contracted Services Agreement 2. Statement of Work. The Contractor shall provide the professional services as described in Attachment A. In case of any amendment to the Contract, so much of the Contract as is not necessarily thereby changed, shall remain in full force and effect. No act or conduct of either party or any employee or employees or agent or agents thereof shall be held to operate as a waiver of any term, condition, or provision of the Contract unless made with authority and reduced to writing. 3. Quality of Service. The Contractor shall perform all services with care, skill, and diligence, in accordance with the applicable professional standards currently recognized by such profession. The Contractor shall comply with all applicable federal, state, and local laws, ordinances, codes, and regulations in performing its services. 4. Warranty. The Contractor represents and warrants that he is not subject to and will not enter into any agreements or arrangements, which preclude compliance with the provisions of this Agreement. The Contractor further warrants that he has the right to disclose all information transmitted to the City under this Agreement. The Contractor further agrees to hold the City harmless from any injury, loss, or damage, which may occur due to the Contractor's breach of this warranty. 5. Standard of Performance. The Contractor agrees that the work performed hereunder will be of the competent professional standards and quality. The City has the responsibility to provide, or has provided additional information as may be required by the Contractor. (a) Payment. The City shall pay to the Contractor for services rendered pursuant to this Agreement: (b) Reimbursement of expenses; a total rate of $7,375. Payment of charges under sections 5 (a) shall be due within 30 days after the receipt by the City of an invoice for such charges and shall be considered late after the thirtieth day. (c) Late Fees. The Contractor may charge a late fee of 0.04 % per day for all past -due fees, expenses, and charges. 6. Indemnity. The Contractor shall defend, indemnify, and hold the City harmless from and against all claims asserted by a third party (or parties) and related damages, losses, and expenses, including attorney's fees, arising out of or resulting from the services performed or neglected to be performed by the Contractor, provided that any such claim, damage, loss, or expense is caused by the negligence of the Contractor, anyone directly or indirectly employed by the Contractor, or anyone for whose acts the Contractor may be liable. -2- Contracted Services Agreement 7. Limitations of Liability. The City shall not be liable in contract or in tort (including negligence) to the Contractor, any subcontractor or supplier of the Contractor, regardless of tier, for incidental, consequential or punitive damages, arising out of or resulting from the City's performance or nonperformance of its obligations under this Agreement, or from the City's termination or suspension of the Services under this Agreement. 8. Termination of This Agreement. Either party may terminate this Agreement by 30 days written notice to the other party, but such termination shall not affect the validity of this Agreement as it applies to outstanding Contracts not terminated by the Contractor or the City as specified herein. 9. The Contractor's Release. The Contractor shall, if required, execute and deliver at the time of and as a precondition precedent to final payment under this Agreement, a release discharging the City, its officers, agents, and employees of, and from all liabilities, obligations, and claims arising out of or under this Agreement, in a form and terminology prescribed by the City. 10. Force Majeure. Neither party shall be responsible for delays or failures in performance resulting from acts beyond the reasonable control of such party. Such acts shall include but not be limited to acts of God, strikes, lockouts, riots, acts of war, governmental regulations superimposed after the fact, earthquakes, or other catastrophes. 11. Notice. All notices under this Agreement shall be deemed duly given, upon delivery, if delivered by hand or upon date of postmark if sent by U.S. mail or via electronic format such as e-mail, to a party hereto or upon the date signed for a receipt by a party hereto if sent by U.S. mail certified return receipt at the address herein set forth or to such other address as any party to this Agreement may so designate in writing from time to time. Further, oral notices are effective on the date given providing that the party giving notice subsequently send a confirming memo to the party to whom the foresaid party has given notice. The individuals representing the above parties hereto who are to receive notices are: For the City: Ron Musson, City of Pasco For the Contractor: Roger T. Burton, Healthcare Actuaries LLC 12. Assignment. The Contractor's rights under this Agreement may not be assigned without the prior written consent of the City. 13. Waiver. No term or provision herein shall be deemed waived and no breach excused unless such waiver or consent shall be in writing and signed by the party claimed to have waived or consented. Any consent by any party to, or waiver of, a breach by the other, whether expressed or implied, shall not constitute a consent to, or waiver of, or excuse for any other different or subsequent breach. -3- Contracted Services Agreement 14. Solicitation. During the performance under this Agreement and for a period of twelve (12) months after completion of all services pursuant to this Agreement, neither party shall hire or solicit for hire the employees of the other with whom it has had contact in connection with performance hereunder. I S. Licenses and Permits. The Contractor shall secure all licenses or permits required by law and shall comply with all ordinances, laws, orders, rules, and regulations pertaining to the Work. 16. Insurance. During the term of the contract, the Contractor shall maintain in force at its own expense, each insurance noted below: (a) General Liability Insurance. The insurance will be on an occurrence basis, with a combined single limit of not less than $1,000,000 each occurrence for bodily injury and property damage. It shall include contractual liability coverage for the indemnity provided under this contract. It shall provide that the City, its officers, and its employees are additional insureds but only with respect to the Contractor's services to be provided under this contract; (b) Professional Liability Insurance. The insurance will have a combined single limit of not less than $1,000,000 each claim, incident, or occurrence. This is to cover damages caused by the error, omission, or negligent acts related to the professional services to be provided under this contract. The coverage must remain in effect for at least two (2) years after the contract is completed. There shall be no cancellation, material change, reduction of limits or intent not to renew the insurance coverage(s) without 60 days written notice from the Contractor or its insurer(s) to the City. As evidence of the insurance coverage required by this contract, the Contractor shall furnish acceptable insurance certificates to the City at the time it returns the signed contract. The certificate shall specify all of the parties who are additional insured, and include applicable policy endorsements, the 60 -day cancellation clause, and the deductible or retention level, as well as policy limits. Insuring companies or entities are subject to City acceptance and must have a rating of A- or higher by Best. Copies of all applicable endorsements shall be provided and, if requested complete copies of insurance policies shall be provided to the City. The Contractor shall be financially responsible for all pertinent deductibles, self-insured retentions, and/or self- insurance. 17. Severability. Should any provision of this Agreement be held to be void or unenforceable, the remaining provisions shall remain in full force and effect, to be read and construed as if the void or unenforceable provisions were originally deleted. 13 Contracted Services Agreement 18. Time is of the Essence. For all requests made by the City pursuant to this Agreement, time is of the essence. The acceptance of a late performance, with or without objections or reservations by the City, shall not waive the right to claim damages for such breach nor constitute a waiver of the requirement of timely performance of any obligations remaining to be performed. 19. No Third -Party Beneficia!:X Rights. No provision of this Agreement shall in any way inure to the benefit of any third person (including the public at large) so as to constitute any such person a third -party beneficiary of the this Agreement or of any one or more of the terms hereof, or otherwise give rise to any cause of action in any person not a party hereto. 20. Compliance. The Contractor agrees that it will comply with all applicable federal, state, and local laws, regulations, and codes in the performance of this Agreement. The Contractor further agrees to indemnify the City for any loss or damage that may be sustained by reason of the Contractor's failure to comply with such federal, state, and local laws, regulations, and codes in the performance of this Agreement. 21. Governing Law. The parties expressly agree that this Agreement will be construed according to the laws of the State of Washington. 22. Entire Agreement. This instrument contains the entire Agreement of the parties relating to the subject matter hereof, and the parties have made no agreements, representations, or warranties relating to the subject matter hereof which are not set forth herein. No modification of this Agreement shall be valid unless made in writing and signed by the parties hereto. IN WITNESS WHEREOF, the parties have caused this Consulting Services Agreement to be duly executed in their respective names as of the day and year first above written. CLIENT: The City of Pasco, Washington Approved ,0,4 UE ZAIMe C/ MAV4Get- / Zo.le, Name/T le Date Contracted Services Agreement CONTRACTOR: Healthcare Actuaries LLC Approved Roger T. Burton President January 14, 2016 Name/Title Date 3 Attachment A This Letter of Agreement is by and between the City of Pasco, Washington (the City) and Roger T. Burton, Healthcare Actuaries. Scope of Work Please see the following proposal for the scope of work, project schedule, deliverables, and fee details. M Contracted Services Agreement Healthcare Actuaries Proposal Proposal for Actuarial Valuation Services for the City of Pasco Prepared for: The City of Pasco Prepared by: Roger T. Burton, FSA, MAAA, FCA President Et Consulting Actuary Naomi M. Hudetz, ASA, MAAA Consulting Actuary Nadine J. Pileggi, ASA, MAAA Consulting Actuary M,liealthcaTe ctuaries Us4ng r r.ology tc, I o:air: Cosi 'rfccti.r l;st <r:r 8eue( Csu]rir-4 IJahnoG )mit,rc 3ea_n!wm1rq Ix,pieB'"PiR- ealthcare etuaries Nnq II hnrzk al to Prf)vcd' Ffter!"i a Co 't' f nq January 11, 2016 Ron Musson City of Pasco 525 North Third Avenue Pasco, Washington 99301 Subject: Proposal for Actuarial Valuation Services 16519 107th Place NE I Bothell, HVA 94011 t (425) 939-7444 ; f (425) 939-0089 w www.Heaiti-careActaaries.com At your request, we submit the enclosed proposal for actuarial valuation services. Yours truly, Roger T. Burton, FSA, MAAA, FCA President ft Consulting Actuary Healthcare Actuaries LLC January 11, 2016 'Bet9i� /ot':r l>rr:rt 1 i,,'A ,.ivc;;r fd<ry,h rl r n3,q Healthcare Actuaries Proposal Actuarial Valuation Services Table of Contents Executive Summary .................................................................4 Introduction to Organization............................................................................ 4 CompanyAddresses....................................................................................... 5 ProjectUnderstanding................................................................................... 5 ProjectApproach...................................................................5 Methodology............................................................................................... 5 Project Organization and Staffing...................................................................... 9 Ability to Perform Work.................................................................................12 Related Project Experience..................................................... 13 RecentExperience.......................................................................................13 References................................................................................................14 PriceProposal..................................................................... 15 3 *0:0 trwc'E::^rG W: -A, Healthcare Actuaries Proposal RFP 14-45 — Actuarial Valuation Services Executive Summary Healthcare Actuaries proposes to provide actuarial services to the City of Pasco ("the City"). We believe that we are an excellent choice to provide actuarial valuations for GASB statements 45 and 67/68. GASB Statement 45 applies to OPEB and GASB Statements 67 and 68 apply to pensions. Note that GASB statement 75 will replace GASB statement 45 for fiscal years beginning after June 15, 2017, and all references made herein to GASB 45 apply to GASB 75. We focus on providing thorough technical analysis to assist our clients in understanding and managing their health plans to meet their business and human resource goals. Through innovative solutions, the efficient use of technology, and a focus on quality, we are able to provide our clients with truly value-added results in less time and for significantly lower fees. Healthcare Actuaries has extensive experience in providing actuarial services for governments, universities, corporations, private companies, unions, trusts, school districts, healthcare provider organizations, and other employer types. We provide all aspects of healthcare -related actuarial services, including rating, funding projections, benefit pricing, reserving, and retiree valuations. The unique combination of experience, personal attention, investment, and competitive fees makes us an outstanding choice to provide actuarial services for the City. Specifically for actuarial valuations for retirement benefits, including pension and other post -employment benefits (OPEB), we have provided this service since the implementation of the Governmental Accounting Standards Board Statements 43 and 45 ("GASB 43" and "GASB 45"). We currently provide these services to numerous cities, counties, school districts, and hospitals. Our ever-growing client list for GASB pension and OPEB valuations attests to our success in providing OPEB valuations promptly, professionally, and for a reasonable price. Introduction to Organization Healthcare Actuaries incorporated in the State of Washington in 2006 and it is a Limited Liability Company. The owner of the firm is Roger Burton. The firm operated successfully for eight years as "Healthcare Actuaries.com LLC" under the ownership of Heidi Ryan before Mr. Burton purchased it in 2006. We are available during normal business hours and days, 8 a.m. to 5 p.m. weekdays, and on an as -necessary basis outside of those times. 4 �; =aqh! r eg„T` �(� '!mq •.a i i i..:.u» u,x y. .n r i,.rn:�,..y ��::e"it. Healthcare Actuaries Proposal RFP 14-45 — Actuarial Valuation Services Company Addresses Our main office location and the office from which we will manage the project is in Bothell, Washington: 16519 107th Place NE Bothell, Washington 98011-4043 rburton@healthcareactuaries.com (425)939-7444 Our independent subcontractors work out of the Portland, Oregon area, but all mailings should go to our Bothell office. Project Understanding We understand that this project involves delivering actuarial valuations of the liability for the retiree healthcare plan and pension plan for the City of Pasco's LEOFF 1 and Firemen's employees and retirees. All plans are single -employer post -employment plans. If this is no correct, please let us know. The valuation for the City's LEOFF 1 retirement plan currently covers less than 50 active and retired employees. The same is true for the Fireman's plans. The valuations we provide will cover all of the elements prescribed by the Governmental Accounting Standards Board (GASB) and Generally Accepted Accounting Principles (GAAP), as well as all actuarial standards. We will provide the valuations on or before March 20 of the year following the valuation date of December 31, 2015, and for any subsequent years for which the City wishes to enter into an agreement with Healthcare Actuaries to provide valuation services. This assumes that the City is able to provide all data necessary to complete the valuations in a reasonable time. Project Approach Methodology We find that the Projected Unit Credit method is the best method to use in valuing the retiree healthcare plans, and the Entry Age Normal method for the pension plans. When the City implements GASB 75, however, we will change to the Entry Age Normal method for the retiree healthcare valuation, as required by GASB 75. We are open to using the Entry Age Normal method for both the healthcare and pension valuation, however. We suggest amortizing the liabilities, due to their size, over the maximum allowed period of 30 years under GASB 45. 3 Hh t eilnrtl ( t, .:.....r.ar4� .iirvi v4,, r, 51f" Sc-� 1�J larl t `[x41r& Jos Healthcare Actuaries Proposal RFP 14-45 — Actuarial Valuation Services Given the small number of participants in the plans, experience studies to determine the assumptions in the valuations are of limited value. We normally use the assumptions used by the State Actuary for governmental retiree health and pension plans, but we will examine the City's data and consider exceptions to this practice as warranted. Schedule We require 15 business days to complete all valuations after receipt of all of the required information. A proposed project schedule follows: Data The data that we will need for the report includes: GASB 4.5(OPEB: LEOFF t and Firemen) Please provide a census with the following data fields for each of the retirees: M Employee unique identifier Date of birth Date of hire (optional) Retiree's gender Spouse's date of birth, if covered under the plan Date of retirement (optional) Coverage tier (for example, retiree only, retiree + spouse, and so on) Status (retired, disability retired, or other statuses) r,4fQr,F, .(,r,.,r .. f,i(rI", WIQIIz , r , hLr)e� rn.,;�I,nrlr:,. Healthcare Actuaries RFP 14-45 — Actuarial Valuation Services Please provide a census with the following data fields for each of the actives who will be eligible for retiree benefits: Employee unique identifier Date of birth Date of hire Gender . Coverage tier (for example, employee only, employee + spouse, and so on) Census information should be as of December 31, 2015. In addition to the census, please provide the following: The current value of retiree health -plan assets as of December 31, 2015. To qualify as "plan assets," the assets must be (a) segregated from general assets, and (b) be restricted for use only to satisfy the obligation of the retiree medical plan). This amount may be zero. The average return on short-term investments for the City. In addition, if known, the average annual return on the retiree health plan assets. Actual payments made on behalf of retirees during 2015 for all coverages, by coverage, if available. Coverages include self-insured medical costs, HMO premiums, dental costs, vision costs, nursing home costs and/or premiums, and Medicare Part B premiums, especially for any LEOFF 1 retirees. Information on the average annual amount of uncovered health expenses paid from general assets on behalf of retirees, excluding payments in the item above. Actual total retiree contributions for 2015, if available, and if there are any. GASB 67168 (Pension: LEOFF 1 and Firemen) Please provide a census with the following data fields for each of the LEOFF 1 and Firemen retirees: 7 Employee unique identifier Employee Group: LEOFF 1 or Firemen Date of birth Date of hire (optional) Retiree's gender Spouses date of birth, if covered under the plan Date of retirement Monthly benefit payable as of December 31, 2015 and December 31, 2014 (the prior census date) The form of the monthly benefit Status (service retired, duty or non -duty disability retired, or survivor status) H:'(�,tt( . Ai,v)am h c^•_)wale Rte, fs W.mi 1. Px"b7; Herxhf� Healthcare Actuaries RFP 14-45 — Actuarial Valuation Services Please provide a census with the following data fields for each of the LEOFF 1 or Firemen actives or retirees who will be eligible for a pension benefit: Employee unique identifier Employee group: LEOFF 1 or Firemen Date of birth Date of hire Gender . Coverage tier (for example, employee only, employee + spouse, and so on) Census information should be as of December 31, 2015. In addition to the census, please provide the following: The current value of the funds' assets as of December 31, 2015. To qualify as "plan assets," the assets must meet the following criteria: • Contributions from employers and non -employer contributing entities to the pension plan and earnings on those contributions are irrevocable. • Pension plan assets are dedicated to providing pensions to plan members in accordance with the benefit terms. n Pension plan assets are legally protected from the creditors of employers, non -employer contributing entities, and the pension plan administrator. If the plan is a defined benefit pension plan, plan assets are also legally protected from creditors of the plan members. Changes to the funds' assets for the past two years (2014 and 2015), including contributions, investment earnings and details of disbursements. . A description of the funds' investment strategy. A description of the pension benefit. Benefits appear to be based on RCW 41.16, 41.18 and 41.26. Please confirm. Post-retirement increase percentages applied to benefits for the past two years for both the wage increase and the CPI increase. Limits on Liability We do not currently request any limits on liability from our clients. We carry insurance for $2 million per claim and in aggregate with professional liability (errors and omissions) insurance. We do not have any pending legal actions against our firm. M 00 tlarP, , h 1 i�,.ot;cq (i,-r7'/11v, v, >Lre, lrq h,r ti Fci,. ! ;!, 0•r"!iP. Healthcare Actuaries Proposal RFP 14-45 — Actuarial Valuation Services Project organization and Staffing Your project team will comprise Roger T. Burton, FSA, MAAA, FCA, the project manager and key contact, Naomi M. Hudetz, ASA, MAAA, consulting actuary, and Nadine J. Pileggi, ASA, MAAA, consulting actuary. Ms. Hudetz and Ms. Pileggi will produce the valuations and provide peer review. Organizational Chart Naomi Roger Hudetz Burton Nina Both Mr. Burton and Ms. Hudetz have been with Healthcare Actuaries since its inception in 2006, with Ms. Pileggi joining the firm in 2009. Roger T. Burton, FSA, MAAA, FCA — Lead Consulting Actuary Background Mr. Burton is a senior healthcare actuary with over twenty years' experience in the actuarial field, working for the GE Capital Corporation, Premera Blue Cross, and Mercer Human Resource Consulting, before taking ownership of Healthcare Actuaries. Educational and Professional Activities Mr. Burton received his Bachelor of Science in Applied Mathematics from Yale University. He became a Member of the American Academy of Actuaries (MAAA) in 2001, a Fellow in the Society of Actuaries (FSA) in 2003, and a Fellow in the Conference of Consulting Actuaries (FCA) in 2005. 0 ....,:r0 , C ^ali.hv 1 win's. I c µ u< t I. M&1, ,, txi!,1, �"r;,Bi: Healthcare Actuaries Proposal RFP 14-45 — Actuarial Valuation Services Experience Mr. Burton's experience includes rating, reserving, data reporting, and product development, among other skills. Most recently, Roger left his position as a senior actuarial consultant at Mercer's Health Et Benefits practice in the Seattle Office, as part of the Boeing team, where he worked closely with Boeing to provide actuarial support on many projects. His responsibilities included leading projects that determine appropriate healthcare rates, evaluating appropriate benefits, reporting on the financial status of the client, and providing support for various other client needs of an actuarial nature. Prior to joining Mercer, he worked for Premera Blue Cross for eight years in various positions, including actuarial rating, corporate reserves, and leading an internal and external data -reporting unit. He also has one year of experience in product development for annuity products. As the owner of Healthcare Actuaries, Mr. Burton works with many employers in analyzing and solving complex benefit issues. He serves as lead actuary for organizations from 50 to 15,000 employees. Mr. Burton uses his actuarial expertise to review and analyze benefit costs, including in-depth analysis of healthcare costs, projecting future costs, establishing annual budgets, calculating client -specific trend rates, pricing plan design changes to meet changing employer objectives and legislative requirements, establishing flex pricing and employee contribution strategies, and recommending appropriate reserve levels. Responsibilities Mr. Burton will be responsible for managing the project, acting as the key point of contact with the City, and providing input and peer review for the valuations. Naomi M. Hudetz, ASA, MAAA — Consulting Actuary Background Ms. Hudetz is a senior healthcare actuary with over twenty-two years of actuarial consulting experience for public and private organizations, including nineteen years of health Et welfare actuarial consulting, and five years of retirement actuarial consulting. She has worked for Mercer Human Resource Consulting, Healthcare Actuaries.com, LLC, and is currently with Healthcare Actuaries. Educational and Professional Activities Ms. Hudetz received her Bachelor of Science in Mathematics from Oregon State University. She became an Associate in the Society of Actuaries (ASA) and a Member of the American Academy of Actuaries (MAAA) in 2009. 10 H, It '/. (,"4 t , CI p,II. III, �. i f ct.1 /1,: ,v Y )_., . L r f, h F;t), ! c"W' 3rrrlNv Healthcare Actuaries Proposal RFP 14-45 — Actuarial Valuation Services Experience Ms. Hudetz provides actuarial consulting and analysis for public and private employers. Services include analysis of health care experience, development of funding rates for self-funded plans, trend analysis, and experience reporting. In addition, she provides assistance with plan design development, plan design changes, and determination of the cost impact. She also has significant experience in providing actuarial valuations for retiree health plans. Ms. Hudetz' experience includes the following: ■ GASB, FASB, statutory, and multiemployer actuarial valuations • Long-term disability actuarial funding valuations ■ Annual healthcare funding projections ■ Incurred but not reported (IBNR) claim liability projections ■ Benefit plan pricing ■ Collective bargaining pricing and budgeting • HMO contract reconciliation for healthcare facilities ■ COBRA rate development ■ Evaluation of TPA fees ■ Evaluation of health care utilization data ■ Cost analysis of vendor bids Responsibilities Ms. Hudetz will be responsible for the healthcare valuations and peer review of the pension valuations. Nadine J. Pileggi, ASA, MAGA — Consulting Actuary Background Ms. Pileggi is a senior healthcare actuary with over twenty-five years of actuarial consulting experience for public, private, and collectively bargained organizations. She has worked for Milkman, Mercer Human Resource Consulting, and Independent Actuaries and is currently with Healthcare Actuaries. Educational and Professional Activities Ms. Hudetz received her Bachelor of Science in Biology from Portland State University and pursued post -graduate baccalaureate studies in mathematics at the same institution before embarking on her actuarial career. She is an Associate in the Society of Actuaries (ASA) and a Member of the American Academy of Actuaries (MAAA). Experience Her experience includes all aspects of retirement plan consulting as well as health and welfare consulting. She has significant experience in providing actuarial pension valuations. 11 < iL.:e I,0 t B[1 ( ..;'t q v r)'nul'✓a Con,-Jf're ,o"ra!,r hexi hle gene f,,5 Healthcare Actuaries Proposal RFP 14-45 — Actuarial Valuation Services Ms. Pileggi's experience includes the following: ■ GASB, FASB, statutory, and multiemployer actuarial valuations ■ Long-term disability actuarial funding valuations ■ Annual healthcare funding projections ■ Incurred but not reported (IBNR) claim liability projections • Benefit plan pricing ■ Modeling of retiree contributions strategies • Collective bargaining pricing and budgeting ■ HMO contract reconciliation for healthcare facilities ■ COBRA rate development ■ Evaluation of TPA fees ■ Evaluation of health care utilization data ■ Cost analysis of vendor bids • ERISA valuations for corporate, multiple -employer, collectively -bargained, public, and individual pension plans ■ Defined Contribution (401(k)) Allocations ■ Non-discrimination testing of retirement plans ■ Retirement plan funding valuations ■ Retirement benefit calculation determination ■ Withdrawal Liability calculation and review ■ Form 5500, Schedule B and PBGC form preparation ■ Cash Balance and PEP administration Responsibilities Ms. Pileggi will be responsible for the pension valuations and peer review of the healthcare valuations. Subcontractors Both Ms. Hudetz and Ms. Pileggi are subcontractors for Healthcare Actuaries with no contract work for other firms. Ability to Perform Work Our project team has the capacity, qualifications, and ability to perform the project described in the scope of work, as demonstrated in our resumes, in our experience working on similar projects described below, and our record of providing on-time deliverables to our clients. 12 lv r YI, e8: cC"", f " ;' r..VNv, .5I'I) Q 0 is11 r f 1,i7enr rr:LL>!3e,oIf; =. Healthcare Actuaries Proposal RFP 14-45 — Actuarial Valuation Services Related Project Experience Recent Experience Our primary business is providing actuarial consulting services to self-insured plans and plans with retiree health benefits. Our book of business evenly split between these two major service types. ■ GASB 45 and FASB retiree healthcare valuations; ■ Analysis and interpretation of claims data, including experience monitoring; ■ Benefit and plan design pricing; ■ Financial forecasting and projections; ■ Rate -setting and employee contribution strategies; and ■ Incurred claim liability estimates (IBNR reserves). Specific to the services requested by the City of Pasco, we have extensive experience serving similar municipalities providing the same services requested by the City. The following information details why we believe that we are the best choice to provide actuarial services for the City. We provide retiree healthcare valuations or retiree healthcare valuation support to: • City of Bellevue • City of Kent • City of Puyallup • City of Renton • City of Richland • City of Tukwila • Central Pierce Fire and Rescue • King County • Fayette County (Georgia) • Lake County (Montana) • Marion County (Oregon) • Bay Area Hospital (Oregon) • Great Falls Public Schools (Montana) • Laurel Public Schools (Montana) • Medford School District (Oregon) • Springfield School District (Oregon) • Missouri Rural Water Association (Missouri) We recently expanded our services and began offering pension valuations. We currently provide pension valuations to: • City of Richland • City of Tukwila 13 Aia t""; "t rt Ht )etultl, io I plc tr S • iil'i!}l ht e J,m I hemi k"'rnl (4 Healthcare Actuaries RFP 14-45 — Actuarial Valuation Services We also provide retiree valuations to several non-governmental entities, including: • Alaska Pipe Trades (Alaska) • Carpenters Trusts of Western Washington • Electric Power Research Institute (California) • LEOFF Health Et Welfare Trust • McNeil Et NRM, Inc. (Ohio) • PEMCO • Salem Health (Oregon) • School Employees Credit Union References The following references are municipalities for which we provide similar actuarial services. Client: City of Kent Project: GASB 45 Valuation Length: Annual contract since 2008 (2006 for other projects) Address: 400 West Gowe Street I Kent I Washington 1 98032-6019 Contact: Becky Fowler Title: Benefits Manager E-mail: bfowler@ci.kent.wa.us Telephone: (253)856-5290 Client: City of Richland Project: GASB 45 and GASB 67 Valuations Length: Annual contract since 2015 Address: 505 Swift Avenue I Richland I Washington ( 99352 Contact: Lynn Kauer Title: Accountant E-mail: Lkauer@ci.richLand.wa.us Telephone: (509)942-7310 Client: King County Project: GASB 45 Valuation Length: Annual contract since 2008 Address: YES -ES -0500 1 400 Yesler Way I Seattle I Washington 1 98104-2683 Contact: Kerry Schaefer Title: Manager, Benefits and Well -Being Strategic Planning E-mail: kerry.schaefer@kingcounty.gov Telephone: (206)263-5051 14 �irr f .:,ii;l3ur t(u.va'rtpir, le r'Valy r irnfmi 6u z P!grni ] '6bh' Healthcare Actuaries Proposal RFP 14-45 — Actuarial Valuation Services Price Proposal We propose the following fees for this project. The fees listed are per valuation, and are valid for each of the 2015, 2016, and 2018 valuations separately. If the City wishes to engage us for a multi-year contract, we will honor these rates for the 2015 and the next two full valuation reports. We would charge one-half of the rates stated above for projected valuations for the years in which a full valuation is not required. These valuations are optional. We did not include travel expenses in the fees above. If the City requires in-person meetings, we will bill for travel at one-half of our hourly fees (listed below) and at our full rates for time spent in meetings with the City, plus other reasonable travel expenses, such as vehicle mileage charges or airline fares and meals. The project manager will attend any required meetings, and either or both of the consulting actuaries will attend the meeting only at the City's request. Our hourly rates, for any services beyond the scope of work in this proposal, are: °e a Project Manager/Lead Actuary $360 Consulting Actuary $240 15 CERTIFICATE OF LIABILITY INSURANCE DaTE(MMmorYrrl 01/15/2016 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(les) must be endowed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER NAME C MarieMegcs CB Malaga Insurance Services LLC PHONE ---_ VIA License #762661 tE°LMcn N' t`-(�0j-��0 -- -71a •N—°1° 840 Apollo Street, Suite 125 Roo E ' EI Segundo CA 90245 INSVRER S AFFORDING COVERAGE NAIC K . -- -- .____._.___ INSURED INSURERA: Maxum lndemni Com an 26743 __.._ Healthcare Actuaries LLC INSURER B: 16519 107th Place Northeast INSURERO: INSURER 0: Bothell WA 96611 INSURER E: F• 1.NSURER COVFRA(:FS '--"-" - RGvI51VN NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS_ AND CONDITIONS OF SUCH POLICIES, LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LTR TYPE OF INSURANCE GENERALLIABILITY DOL Am UR --' POLICY NUMBER POLICY EFF11" LIMITS COMMERCIAL GENERAL LIABILITY CLAIMS -MADE OCCUR �� EACHOCCURRENCE $ D"AM)CPREMISES EGET6RENTEO—"'-'--" e Occunence S MED EXP(Any ars (arson) E g_— PER SADVINJURY — _ GENERALAGGREGATE $ GENL AGGREGATE POLICY LIMIT APPLIES PER: PRO. LOC PRODUCTS _COMPlOP AGG - _ E AUTOMOBILELIAULBY .�- ANY AUTO ALLOWNED SCHEDULED AUTOS AUTOS HIREDAUTOS NOTING-SNNCD f f MBU D N LIM Eh_-0CWn.1 S GODLY INJURY(Porporson) E --_----- HO OILY INJURY (Pei MAIOaN) E --- -- P �Qo 5�E--.a ------.-_� _ UMBREl1A UAB EXCESS LIAR OCCUR CLAIMS -MAGE F_ NIA r EACH OCCURRENCE __.._.__...____. E _AGGREGATE __......_..._ S DED RETENTION S—" WON i(ERE COMPENSATION AND EMPLOYER$' LIABILITYNC ER/ECUTIVE YIN ANY PBOPXCLUIX OPFN:EIMEMBER MBER EXCLUDED? (NanEebry in IIYPF Oo1a10o un0or STATU- TH- Y ItrllTS --'—'"— S $E07 E.L. EACH ACCIDENT E.L. DISEASE -EA EMPLOYE S E.L. DISEASE -POLICY LIMIT S A Professional Liability; Claims -made r basis 2,000,000 Limit, each claim I PFP 6022436.03 062672015 06/26/2016 $ $2,000,000 Limit, aggregate DESCWPTION OF OPERATION$rLOCATgNS I VEHICLE$ (ABeca ACORD 101, AGEIRIonel Remake aMatlulO, If mom epaco Is requlmel $10,000 Deductible, each daim Location: 16519107th Place Northeast, Bothell, WA 98011 Description of Operations: Health Actuarial Services and Consulting rcOTICIrw TQ ant nrn _ _ _ _ City Of Pasco 525 North Third Avenue Pasco WA 99301 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. ACORD 26 (2010/06) The ACORD name and logo are registered marks of ACORD