AGREEMENT FOR ACTUARIAL SERVICES
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AGREEMENT FOR ACTUARIAL SERVICES
This AGREEMENT made this /51 day of ~.dz. ,1992-, by and
between the City of Clearwater, Florida (City), P. O. Box 4748, Clearwater Florida
33758, and PRICEWATERHOUSECOOPERS LLP, 101 East Kennedy Boulevard, Suite
1500, Tampa, Florida 33602 (Consultant), a Florida limited liability partnership.
WHEREAS, City issued Request for Proposal No. 150-98 for Actuarial and Other
Services to the Clearwater Employees Pension Plan (Plan) (See Exhibit "A"); and
WHEREAS, City selected Consultant to provide actuarial and other related
services (Project) according to CO':lsultant's response to Request for Proposal No. 150-
98 (See Exhibit "B").
NOW THEREFORE, the City and Consultant do hereby incorporate all terms and
conditions in Exhibit "A" and Exhibit "B" and mutually agree as follows:
1. SCOPE OF PROdECT. Consultant agrees to provide actuarial and
other related services under the terms and conditions described in Request for Proposal
No. 150-98.
2. TIME OF PERFORMANCE. Project will commence on January 1, 1999
and shall terminate on December 31, 2001.
3. REPORTS. Consultant agrees to provide to City reports on the Project
upon request by the City and under the terms provided in the Request for Proposal No.
150-98.
4. COMPENSATION. The City will pay Consultant a sum not to exceed
the following amounts: $16,000.00 for 1999; $16,500.00 for 2000; and $17,000.00 for
2001. City agrees to pay Consultant 50% of the amount due each year upon
commencement of the services, and 50% upon acceptance by City of the final actuarial
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report. Any additional services related to the Project must be approved by the City
Project Manager. The City may, from time to time, request changes in the scope of the
project of Consultant to be performed hereunder. Such changes, including any increase
or decrease in the amount of Consultant's compensation and changes in the terms of
this Agreement which are mutually agreed upon by and between City and Consultant
shall be effective when incorporated in written amendment to this Agreement.
5. METHOD OF PAYMENT. Consultant shall bill City according to the
payment schedule, and City agrees to pay after approval by the City Project Manager
under the terms of the Florida Prompt Payment Act F.S. 218.70.
6. CONTACTS FOR RESPONSIBILITY. Stephen M. Metz will be
designated as Project Director for this project by Consultant to manage and supervise
the performance of this Agreement on behalf of Consultant. Associated with the Project
Director will be staff members whose experience and qualifications are appropriate for
this Project. The City will be represented by Michael J. Roberto, or his designee for all
matters relating to this Agreement.
7. TERMINATION OF CONTRACT. The City at its sole discretion may
terminate this contract by giving Consultant ten (10) days written notice of its election to
do so and by specifying the effective date of such termination. The Consultant shall be
paid for its services through the effective date of such termination. Further, if Consultant
shall fail to fulfill any of its material obligations hereunder, this Agreement shall be in
default, the City may terminate the contract, and Consultant shall be paid only for work
completed.
8. NON-DISCRIMINATION. There shall be no discrimination against any
employee who is employed in the work covered by Consultant, or against applicants for
such employment, because of race, religion, color, sex, or national origin. This provision
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shall include, but not be limited to the following: employment, upgrading, demotion, or
transfer; recruitment or recruitment advertising; layoff or termination; rate of payor other
forms of compensation; and selection for training, including apprenticeship.
9. INTERESTS OF PARTIES. Consultant covenants that its officers,
employees and shareholders have no interest and shall not acquire any interest, direct
or indirect, which would conflict in any manner or degree with the performance of
services required to be performed under this Agreement.
10. INDEMNIFICATION AND INSURANCE. Consultant agrees to protect,
defend, indemnify and hold the City and its officers, employees and agents free and
harmless from and against any and all losses, penalties, damages, settlements, costs,
charges, professional fees or other expenses or liabilities of every kind and character
arising out of or due to any negligent act or omission of Consultant or its employees in
connection with or arising directly or indirectly out of this Agreement and/or the
performance hereof. Without limiting its liability under this Agreement, Consultant shall
procure and maintain during the life of this Agreement liability insurance coverage as
described in Exhibit "A". This provision shall survive the termination.ofthis Agreement.
11. PROPRIETARY MATERIALS. Upon request by City, Consultant
shall transfer, assign and make available to City or its representatives all property and
materials in Consultant's possession belonging to the City, or originally produced by
Consultant as a deliverable hereunder.
12. ATTORNEYS FEES. In the event that either party seeks to enforce this
Agreement through attorneys at law, then the parties agree that each party shall bear its
own attorney fees and costs, and that jurisdiction for such an action shall be in a court of
competent jurisdiction in Pinellas County, Florida.
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13. WARRANTIES. Consultant warrants that the service provided will
be performed and supervised by qualified personnel. notwithstanding anything to the
contrary contained in this agreement, consultant makes no other warranties, express or
implied, or whether arising by operation of law, course of performance or dealing,
custom, usage in the trade or profession or otherwise, including without limitation
implied waranties of merchantability and fitness for a particular purpose. Except as
expressly provided in the engagement letter, Consultant is not providing any Year 2000
services (for example, Year 2000 assessment, conversion or testing) nor making any
warranties with respect to the products or services provided by Consultant or by third
parties under this Agreement to correctly process, provide and/or receive date data
within and between the twentieth and twenty-first centuries.
14. LIMITATION OF LIABILITY. Other than the City's obligations to
make payments that are due and owing under this Agreement, a party's and its affiliates'
entire and collective liability arising out of or relating to this Agreement, including without
limitation on account of performance or nonperformance of obligations hereunder,
regardless of the form of the cause of action, whether in contract, tort (including without
limitation negligence), statute, or otherwise, shall in no event exceed in the aggregate
the amounts paid to Consultant under this Agreement. notwithstanding anything to the
contrary contained in this agreement, neither party nor its affiliates shall, under any
circumstances, be liable to the other party or its affiliates for any claim based upon any
third party claim or for any consequential, incidental, indirect, punitive, exemplary or
special damages of any nature whatsoever, or for any damages arising out of or in
connection with any malfunctions, delays, loss of data, loss of profit, interruption of
service or loss of business or anticipatory profits, even if a party or its affiliates have
been advised of the likelihood of such damages occurring. No action, regardless of
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form, arising out of this Agreement may be brought by either party more than one (1)
year after the cause of the action has accrued.
15. CONFIDENTIALITY. Each party agrees to take measures to
protect the confidentiality of the other party's Confidential Information that, in the
aggregate, are no less protective than those measures it used to protect the
confidentiality of its own Confidential Information, but at a minimum, each party shall
take reasonable steps to advise their employees (and, in the case of the Consultant, its
subcontractors) of the confidential nature of the Confidential Information and of the
prohibitions of copying or revealing such Confidential Information contained herein.
Consultant and City each agree to require that the other party's Confidential Information
be kept in a reasonably secure location. Notwithstanding anything to the contrary
contained in this Agreement, neither party shall be obligated to treat as confidential, or
otherwise be subject to the restrictions on use, disclosure or treatment contained in this
Agreement for, any information disclosed by the other party (the "Disclosing Party")
which: (1) is rightfully known to the recipient prior to its disclosure by the Disclosing
Party; (2) is generally known or easily ascertainable by non-parties of ordinary skill in
computer or process design or programming or in the business of the Consultant; (3) is
released by the Disclosing Part to any other person, firm or entity (including
governmental agencies or bureaus) without restriction; (4) is independently developed
by the recipient without any reliance on Confidential Information; or (5) is or later
becomes publicly available without violation of this Agreement or may be lawfully
obtained by a party from any nonparty. Neither party will be liable to the other for
inadvertent or accidental disclosure of Confidential Information if the disclosure occurs
notwithstanding the party's exercise of the same level of protection and care that such
party customarily uses in safeguarding its own Confidential Information.
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IN WITNESS WHEREOF, the City and Consultant have executed this
Agreement on the date first above written.
Countersigned:
CITY OF CLEARWATER, FLORIDA
Rita Garvey
Mayor-Commissioner
By:
Michael J. Roberto
City Manager
Approved as to form:
Attest:
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John Carassas
Assistant City Attorney
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. W Cynthia E. Goude
V- City Clerk
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PRICEWA TERHOUSECOOPERS LLP
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By: S ~L-- /1'1 t1t ~
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CITY OF CLEARWATER, FLORIDA
REQUEST FOR PROPOSAL FOR ACTUARIAL AND OTHER SERVICES
RFP #150-98
A. INTRODUCTION I BACKGROUND
The City of Clearwater (hereinafter "City") is requesting proposals from qualified flfllls of actuarial consultants
interested in providing actuarial and other related services to the City of Clearwater Employees' Pension Plan
(hereinafter "Plan"). A Selection Committee (hereafter "Committee"), has been fonned to facilitate the selection
process. The Committee is composed of five (5) City appointees.
The Plan, is a contributory, defmed benefit pension plan for eligible City employees. Members presently contribute
8.0% of their earnings on a pre-tax basis to the plan until time of retirement, while the City contributes the balance
required as determined by the actuarial valuation. The Plan requires a minimum City contribution of 7.0%. This
Plan includes a disability retirement provision for members who become disabled. The Employees' Pension Plan is
governed by the member of the City Commission who serve as the Plan Trustees.
The City is a City Manager/Commission fonn of local government which offers a tradi~iona1 mix of municipal
services to a population of approximately 104,000.
For the 1998/99 fiscal year, the total ofaU City operating and capital budgets is approximately $192 million. Of this
amount $73.4 million is budgeted for the General Fund, $70.7 million for proprietary fund activities, and $46
million for capital budgets. The proprietary fund activities include primarily the provision of water, sewer, gas and
sanitation utility services and the operation of a toll bridge, marina and parking facilities. The City employs
approximately 1,700 persons, over 1,450 of whom are members of the Employee Pension Plan. The Plan assets had
a market value of $358 million as of January I, 1998.
B. REQUllffiDSER~CESANDPERFORMANCESTANDARDS
Actuarial Review
(1) The valuation must be performed in accordance with accepted actuarial principles including the use of
appropriate actuarial assumptions. The financial information produced, including the employer's pension
expense for the current year and the relationship between the plan assets and the pension benefit obligation,
must be in accordance with generally accepted accounting principles, including full compliance with
Governmental Accounting Standards Board (GASB) statements. The actuarial report must provide
sufficient information to enable the City to make all footnote disclosures required by GASB statements.
(2) The techniques and assumptions used and the content of the report issued must conform to the
requirements of all applicable laws and rules including Florida Statutes and Chapter 22 of the Florida
Administrative Code, and the fee quoted is to include responses by the actullJ)' to the State Board of
Administration as necessary.
(3) Actuarial studies must be completed and the reports thereon must be rendered within 120 days of the date
the contract is signed.
Employee Pre-Retirement Plannine Workbooks
Request For Proposal For Actuarial ServicrJ RFP# 150-91 I
City ofOurwlter, Florida
EXHIBIT "A"
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The existing workbook will be reviewed and will be revised due to material changes in law, the pension
plan, Social Security, or any other reason. If the workbook needs to be revised, an updated version in
camera-ready format will be delivered to the City within 30 days of the date the contract is signed. The
City will handle the printing, duplication, and distribution of the workbooks.
Employee Benefit Statements
Individual employee benefit statements will be prepared and delivered to the City for distribution to
employees. The benefit statements will include such infonnation as projected plan benefits, employee
contributions, accrued plan benefits, date of 100% vesting. etc. The statements will be delivered to the
City by April I, 1999 for distribution to employees.
Ouarterlv Pre-Retirement Seminars
Quarterly pre-retirement seminars will be conducted by the fmn. These seminars will be targeted to
employees approaching retirement and will be presented in a workshop fonnat to groups of employees
(size at the option of the City). These workshops will assist the employees in identifying their retirement
goals and objectives and the actions required to achieve them. The seminars will be used to educate
employees on investment strategy, plan options and the retirement planning process.
Telephone Pension Advise and Counselin~ Services
The firm will provide counseling to employees within one year of retirement on benefit estimates and
options. The counseling will be up to I hour of counseling per employee. The finn will get approval from
the City prior to counseling any employee.
Advise to City Staff on Tax and Plan Issues
The finn will be available to advise City staff on issues pertaining to tax and plan considerations such as
plan design, estimated funding requirements of various alternative plan designs, and detailed actuarial
reports and impact statements related to the Employees' Pension Plan. Recognizing that service providers
and clients have an on-going need for communications, the service provider will advise the City when
discussions are such that a billing will occur. Fees will typically be based on a fee per hour, however, for
large projects, a per project fee will be negotiated.
C. INDEMNIFICATION AND INSURANCE REQUIREMENTS
Indemnification:
The proposer shall hold harmless, indemnify and defend the City, its elected officials,
officers and employees, against any claim, action, lawsuit, loss, damage, injury (whether
mental or physical, and include death to persons, or damage to property), liability, cost and
expense of whatsoever kind or nature including, but not by way of limitation, attorney's fees
and court costs, caused by negligent acts or omissions of Actuarial Services.
The City shall also be held harmless against all claims for financial loss with respect to the
provision of or failure to provide professional or other services resulting in professional
malpractice, or errors or omissions liability arising out of performance of the agreement or
contract, unless such claims are a result of the city's own negligence.
Request For Proposal For Aduarial Strvlees RFPtI 150-98
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City oIC1urwater, Florida
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Insurance
(I) Without limiting its liability under the contract, the proposer shall procure and
maintain at its sole expense during the life of the contract, insurance of the types and
the minimum amounts stated.
Type
Professional Liability
Amount
$2,000,000
Comprehensive or Commercial General Liability
$500,000
$500,000
Comprehensive or Business Automobile Liability
Workers' Compensation Coverage as imposed by State Law
$ Statutory
Employers Liability
$100,000/$100,000/$500,000
(2) The proposer comprehensive general liability policy shall include contracturalliability on
a blanket or specific basis to cover this indemnification.
(3) Such insurance shall be written by a company or companies licensed to do business in
the State of Florida and satisfactory to the City. Prior to commencing any work under this
contract, certificates evidencing the maintenance of said insurance shall be furnished to and
approved by the City's Risk Management Division.
(4) The insurance coverages and conditions required shall not be suspended, voided,
cancelled or modified except after thirty (30) days prior written notice has been given by
certified mail, return receipt requested, to the City's Risk Management Division Office.
(2) The City may, at its option, require a copy of the Proposer's insurance policies.
(6) All insurance policies required within this RFP and any contract subsequently entered
into between the parties shall provide full coverage from the first dollar of exposure unless
otherwise stipulated. No deductibles or self-insurance retention will be accepted without
prior approval from the City. The proposer's deductible/Self-insurance retentions (SIRs)
shall be disclosed to the City and may be disapproved by the City. They shall be reduced or
eliminated at the option of the City. The proposer is responsible for the amount of any
deductible or SIR.
(7) Except for workers' compensation and professional liability insurance, the proposer's
insurance policies shall be endorsed to name the City as an additional insured to the extent
of the city's interest.
Request For Proposal For Actulrla' Servlees RFPtI 150-91
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City orOunrater, Florid.
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(8) Insurance required of the proposer or any other insurance carried by the proposer shall be
considered primary and any insurance of the City shall be considered excess as may be
applicable to claims under any contract or agreement between City and proposer.
(9) Any party providing services or products to the City will be expected to enter into a
written agreement, contract, or purchase order with the City that incorporates, either in
writing or by reference, all of the pertinent provisions relating to insurance and insurance
requirements as contained herein. A failure to do so, may, at the sole discretion of the City,
disqualify any party from perfonning services or selling products to the city provided,
however, the City reserves the right to waive any such requirement.
(10) If a claims made fonn of professional liability coverage is provided, the retroactive date
of coverage shall be no later than the inception date of claims made coverage, unless prior
policy was extended indefinitely to cover prior acts. Coverage shall be extended beyond the
policy year either by a supplemental extended reporting period (ERP) of as great duration as
available, and with no less coverage and with reinstated aggregate limits, or by requiring that
any new policy provide a retroactive date no later than the inception date of claims made
coverage.
D. RFP TIME TABLE
The anticipated schedule for the RFP and contract approval is as follows:
RFP available for distribution
September 18, 1998
Deadline for receipt of questions
October 9, 1998
Deadline for receipt of proposals
Tuesday, October 20, 1998,4:00p.m.
Evaluation I Selection process:
Review of proposals
October 21, 1998
Selection of Candidates to make presentations
Week of November 2, 1998
Staff Recommendation.
Monday, November 9, 1998
City begins contract negotiations
Monday, November 9, 1998
Recommendation to Pension Trustees
Monday,~cember7, 1998
Projected Contract award and start date
January I, 1999
Request For Proposal For Adaarial Servietl RFP# 150-98
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E. RFP AVAILABILITY
Copies of the RFP are available by contacting George McKibben at (727) 562-4634, or by visiting the Purchasing
Division located at the Municipal Services Building, 3n1 Floor/Finance, 100 South Myrtle Avenue, Clearwater,
Florida 33756-5520.
F. PROPOSAL SUBMISSION
One original and five copies (a total ohlx) shall be delivered to the City of Clearwater, Purchasing Manager, 100
South Myrtle Avenue, Clearwater, FL 33756-5520, prior to the opening time of 4:00 p.m., EDT, on Tuesday,
October 20, 1998. Proposals shall be as brief and to the point as possible while still meeting proposal requirements.
The delivery of proposals to the City of Clearwater Purchasing Office prior to the specified date and time is solely
and strictly the responsibility of the proposing firm. The City shall not, under any circumstances, be responsible for
delays caused by the United States Postal Service or any private delivery service, or for other delays. All responses
must be manually and duly signed by an authorized authority to bind said fmn, and proposer(s) must aff'lXtheir
company's corporate seal to the Proposal. In the absence of a corporate seal, the Proposal must be notarized by a
Notary Public
The submittal of a proposal by a preparer will be considered by the City as constituting an offer by the Proposer to
perform the required services at the stated fees. The stated fees shall be considered locked in for 180 days from the
time of receipt.
All responses must be marked on the outside:
"Request For Proposal For Actuarial Services
for the City of Clearwater, Florida
RFP 150-98
To be opened at 4:00 PM, EDT, October 20,1998."
Each proposer is solely responsible for reading and completely understanding the requirements of this RFP. The
opening time shall be and must be scrupulously observed. Under no circumstances will proposals delivered after
the specified delivery time be considered. Late submissions shall be returned unopened to the firm with the notation
"The Proposal was received after the delivery time designated for the reuipt and opening of the proposals."
All proposals shall be prepared and submitted in accordance with the provisions of this RFP. However, the City
may waive any informalities, irregularities, or variances, whether technical or substantial in nature, or reject any and
all proposals at its discretion. Any proposal may be withdrawn prior to the indicated time for opening of proposals
for authorized proponent thereof. No firm may withdraw a proposal within ninety (90) days after the actual date of
the proposal's opening. Promotional material may be included as supplemental information, but will constitute a
proposal itself.
G. INQUIRIES AND ADDENDA
Each firm shall examine all RFP documents and shall judge all matters relating to the adequacy and accuracy of
such documents. Any inquiries, suggestions or requests concerning interpretation, clarification, or additional
information pertaining to the RFP shall be made in writing a minimum of five (5) working days prior to due date
through the City of Clearwater's Purchasing Manager, George McKibben, at P.O. Box 4748, Clearwater, FL 33758-
4748; or FAX 727-562-4635. Facsimiles must have a cover sbeet which includes, at a minimum, the proposer's
name, address, number of pages transmitted, phone number, and facsimile number. It is the proposer's
responsibility to be sure all addenda were received.
Request For Proposal For Actuarial Servka RFPIII50-9I 5 Ofy or Ourwater, florid.
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The City shall not be responsible for oral interpretations given by any City employee, representative, or others. The
issuance of a written addendum is the only official method whereby interpretation, clarification, or additional
information may be given. If any addenda are issued to this RFP, the City will attempt to notify all prospective
fmns who have secured same. However, it shall be the responsibility of each ftrm, prior to submitting the proposal,
to contact the City of Clearwater's Purchasing Manager (727-S62-4634) to determine ifaddenda were issued and to
make such addenda a part of the proposal.
H. LATE PROPOSALS PROPOSALS, LATE MODIFICATIONS AND LATE
WITHDRAWALS
Proposals received after the Proposal Due Date and time are late and will not be considered. Letters of withdrawals
received after the Proposal Due Date or after contract award, whichever is applicable, are late and will not be
considered.
I. RFP POSTPONEMENT I CANCELLATION
The City may, at its sole and absolute discretion, reject any and all, or parts of any and all, proposals; re-advertise
this RFP; postpone or cancel, at any time, this RFP process; or waive any minor or immaterial irregularities in this
RFP or in the proposals received as a result of this RFP.
J. COSTS INCURRED BY PROPOSERS
All expenses involved with the preparation and submission of proposals to the City, or any work performed in
connection therewith shall be borne by the proposer(s). No payment will be made for any responses received. nor
for any other effort required of or made by the proposer(s) prior to commencement of work as defmed by a contract
approved by the City Commission.
K. ORAL PRESENTATION
A formal oral presentation may be required by each finn that is selected during the initial review process (at the sole
option of the City). If required. presentations sbould be in support of the finn's proposal or to exhibit or otherwise
demonstrate the information contained therein. If the Committee wishes additional clarification of any information
or additional information, any of the firms may be requested to submit that information in writing.
L. EXCEPTION TO THE RFP
Proposers may take exceptions to any of the terms of this RFP unless the RFP specifically states wbere exceptions
may not be taken. Should a proposer take exception where none is permitted. the proposal will be rejected as non-
responsive. All exceptions taken must be specific, and the Proposer must indicate clearly what alternative is being
offered to allow the City a meaningful opportunity to evaluate and rank proposals.
Where exceptions are permitted, the City shall determine the acceptability of the proposed exceptions and the
proposals will be evaluated based on the proposals as submitted. The City, after completing evaluations, may
accept or reject the exceptions. Where exceptions are rejected. the City may request that the Proposer furnish the
services or goods described berein, or negotiate an acceptable alternative.
M. PROPRIETARY INFORMATION
Request For Proposal For Actuarial Services RFI'N 150-98
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aty oraeal'1l'ater, Florida
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Responses to this Request for Proposals upon receipt by the City become public records subject to the provisions of
Chapter 119 F.S., Florida's Public Records Law. If you believe that any portion or all of your response is
contidential and/or proprietary, you should clearly assert such exemption and the specitic legal authority of the
asserted exemption. All material that you assert qualities for exemption from Chapter 119 must be submitted in a
separate envelope, clearly identitied as 'TRADE SECRETS EXCEPTION," with your firm'S name and the proposal
number marked on the outside.
Please be aware that the designation of an item as a trade secret by you may be challenged in court by any person.
By your designation of material in your proposal as a "trade secret" you agree to hold harmless the City for any
award to a plaintiff for damages, costs or attorneys' fees and for costs and attorneys' fees incurred by the City by
reason of any legal action challenging your claim. You may be required to pay any costs of fees incurred in
defending such a charge if the City declines to do so.
N. QUALIFICATIONS AND OTHER FACTUAL INFORMATION
(1) Firm Qualifications
A. Indicate size of finn, organizational structure, location of management and charter authorization and
licenses to do business in the State of Florida.
B. Describe in general your fmu's national, statewide and local service capabilities to perform the
required services as stated in Section B of this RFP.
C. Describe resources available to your firm such as computer capability, personnel with specialized
knowledge and expertise in the governmental (including tax exempt) field.
D. Describe your firm's experience in serving as a actuary and consultant to local governmental units
including your most recent clients within the State of Florida, including the names, addresses, and
phone numbers of contact persons; briefly describe the services performed for these clients.
E. Indicate whether your fmn qualifies as an "Enrolled Actuary" as defmed in Chapter 22D-1.02(e) of the
Florida Administrative Code.
F. Please provide information on litigation your firm has been a party to during the past three (3) years.
(2) Familiarity with GASB Statement Requirements
Please indicate your familiarity with GASB Statement requirements relating to Pension Plans by providing
a brief summary of the requirements and your experience in providing required disclosures.
(3) Qualifications of Personnel to be Assigned
Provide resumes of the personnel who would be directly involved in performing actuarial and consulting
services for the City, including but not limited to:
(i) formal and supplemental education;
Request For Proposal For Actuarial Services RFPN 150-9.
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(ii) Experience in performing actuarial services and consultation regarding employee benefit
programs including governmental client names where possible;
(Hi) Knowledge of State of Florida regulatory requirements applying to municipal pension plans;
(iv) Experience, if any, in performing valuations in compliance with GASB Statements.
(v) Memberships in professional organizations; and
(vi) Professional recognition and awards.
(4) Costs to Provide the Various Services
A. Provide full information on the cost for each of the required services identified in Section B of the RFP
including whether or not the fee is on the project basis and the total cost, on an hourly basis and the
estimated number of hours and total cost, and any other costs which would be reasonable expected to
be incurred as a result of the performance of the service. Costs should be quoted on each service as
follows:
. Actuarial Review (project basis)
. Employee Pre-Retirement Planning Workbooks (project basis)
. Employee Benefit Statements (project basis)
. Quarterly Pre-Retirement Seminars (hourly basis)
. Telephone Pension Advise and Counseling Services (hourly basis)
. Advise to City Staff on Tax and Plan Issues (hourly basis)
O. NEGOTIATIONS
The City may award a contract on the basis of initial offers received, without further negotiations or may negotiate a
fmal contract. Therefore, each initial offer should contain the proposer's best terms from a cost or price and
technical standpoint.
The City reserves the right to enter into contract negotiations with the selected proposer. If the City and the selected
proposer cannot negotiate a successful contract, the City may terminate said negotiations and begin negotiations
with the next selected proposer. This process will continue until a contract has been executed or all proposers have
been rejected. No proposer shall have any rights against the City arising from such negotiations.
P. RIGHT TO PROTEST
Any actual or prospective Proposer who is aggrieved in connection with the solicitation or award of a contract may
seek resolution of its complaints by contacting the Purchasing Manager.
Q. RULES; REGULATIONS; LICENSING REQillREMENT
The proposer shall comply with all laws, ordinances and regulations applicable to the services contemplated herein,
including those applicable to conflict of interest and collusion. Proposers are presumed to be familiar with all
Federal, State and local laws, ordinances, codes and regulations that may in any way affect the services offered.
R. EV ALVA TION CRITERIA AND RANKING PROCESS
Request For Proposal For Actuarial ServIces RFPIIlSO-98
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GENERAL
The evaluation and ranking of all competitive proposals received shall be accomplished utilizing the criteria
described in this Section. Infonnation and data included in the Actuarial Services proposal shall be considered in
the evaluation and ranking process.
COMPLETENESS OF COMPETITIVE PROPOSALS
Following the receipt of competitive proposals, the City shall review all proposals with respect to completeness and
confonnance with the instructions and requirements specifically indicated in this RFP. Proposals which are deemed
incomplete and/or non-confonning with instructions and requirements of this RFP may not be given further
evaluation. The City reserves the right to reject any or all proposals and to waive any irregularity, variance or
informality whether technical or substantial in nature, in keeping with the best interest of the City.
SELECTION CRITERIA
All proposals shall be equally evaluated with respect to the completeness of the data provided, support for all claims
made, and the overall approach taken. The following criteria shall be utilized in the evaluation of the proposal:
30%>>
20%
2001'0
20%
10%
(1) Firm Qualifications
(2) Familiarity with GASB Statement Requirements
(3) Qualifications of Personnel to be Assigned
(4) Costs to Provide the Various Services
(5) References
References may be called regarding the level of satisfaction with services rendered by the proposing firm, technical
ability, cost, education of and presentation to governing bodies.
Rtquest For Proposal For Actuarial Servka RFPII ISO.'.
9
at)' orOtarwaler, florida
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STATEMENT OF NO BID
Note: If you do not intend to respond to this bid request, please complete and return this sheet to:
City of Clearwater
Purchasing Department
P.O. Box 4748
Clearwater, FL 33758-4748
We, the undersigned, have declined to bid on the above noted Invitation for Bid for the following
reason(s):
Insufficient time to respond to Invitation for Bid.
Do not offer this product/service.
Our schedule will not pennit us to perform.
Unable to meet specifications.
Unable to meet insurance requirements.
Specifications unclear (please explain below.)
Remove us from your "Bidder Mailing List. "
Other (please explain below.)
Remarks:
We understand that if a "no bid" statement is not returned, our name may be removed from the Bidderts
List of the City of Clearwater.
Company Name:
Address:
City. State. Zip:
Telephone:
Date: Signature:
Request For Proposal For Aduarial Suvices RFP# 150-98 10
Oty orOurwater, Florida
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Request For Proposal
For
Actuarial Services
RFP #150-98
EXHIBIT "B"
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CONTENTS
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Firm Qualifications
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Familiarity with GASB Statement Requirements 12
Qualifications of Personnel to be Assigned 13
Costs to Provide the Various Services . 20
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People
Processes
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Plv,~..~i)a....~~pp!!1~li.'.~~~~rJl~B!'i~... ~!ii!~.'~'"-';.~..Jf~.'. 3J..-~'.....".~~.,' ..
DoeS~' the ~ manaemen":.o"r.amzatioiJ.'{. ana: StiiiCtur~oi~~' oilr.:HR
~..'_ _,:.', ".~';;-_ --..: 00,_. :.8~;:",~,,'...,r....F.~.:'.c,~)m.... ;;_:-~Y--'I~'-:"''-~~ :'::"r"-:-'~";;~.' -;.:~..;..-. -:-:-Y:...~ : ::: ~;.'~'.- .
ac~yit!~.a4d .v~e.~9~yq~f~tffijilesi?~J3yJ9Jlli.:*~g.~th:i6~ we
can measure .the'v81ue~""'enci3.te(I"6" ;:'" 'ur~,,':r~~'/~iirrenfHR
~_-~i~~l=ei:~__~~~~l
lna;'~e~e~s:~pptov~tfor=-i1iffii~!"~eai\VC'~tan'!:
heip you to cOnstruct a realistic. pl~ to guide '~mpiemenuition. . Our
app~ch encompasses:..-- ?,:.f~'2';.~':;"'" :h~:.'~' ,~.~
Strategy ~a review ofwhat HR needs ~ Cl~8ilclwhy ....
Busil!ess Process Reengineeriilg.2- how to>lliip~je workflow
and efficiency..' .. . ..t./::..'.
Implementation -:.:. the who, what and where of improving
administration
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Operation - the system 'ofcontmuous improvement.
Merger and Acquisition Support- due diligence on assets,
liabilities and corporate philosophies '
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SpecificaJly for the City of Clearwater, we have in-depth resources in Tampa,
backed up by additional resources in Atlanta, Philadelphia and throughout the
U.S., to provide the services required by your RFP. In fact, we have been
providing these services to tbe City for the past ten years.
Our Florida Global Human Resource Solutions practice is based in Tampa and
includes actuaries and benefits consultants as well as tax and accounting
specialists. We have completed actuarial reviews for Clearwater and other
governmental agencies, employee pre-retirement planning workbooks,
benefits statements, pre-retirement seminars, telephone advice and counselling
services as well as advice on tax and plan issues.
Here in Tampa, our Global HR Solutions practice is recognized by the Tampa
Bay Business JOU111al as the largest fee for service benefits consulting practice
in the region. We are the largest Big Five firm as well.
Some of our Florida clients include Hillsborough County, HiIlsborough
County School District, and the City of Clearwater on the West Coast; Darden
Restaurants and Dixon Ticonderoga in Orlando; The City of Jacksonville,
Blue CrossIBlue Shield of Florida and the PGA Tour in North Florida; and
Jackson Memorial Hospital, Carnival Cruise Line, and Palm Beach County in
South Florida; and Sarasota Memorial Hospital. We have extensive
knowledge of governmental retirement issues and work with numerous
governmental employers on issues regarding the Florida Retirement System
and stand-alone defined benefit, defined contribution and hybrid plans.
Our Tampa GHRS practice includes over 20 professional consultants in a
variety of employee benefit specialties. We design, consult on and administer
defined benefit and defined contribution plans, so we are extremely familiar
with the features of both types of plans. We are also familiar with
governmental employers in Florida and the unique issues they face. We have
five actuaries in the Tampa office as well as three defined contribution
consultants.
We do not accept any commissions or sell any insurance or investment
products so our advice is totally objective.
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C. Describe resources available to your firm such as computer capability,
personnel with specialized knowledge and expertise in the governmental
(including tax exempt) field.
Computer Capabilities
Our actuarial valuation software platfonn consists of a database management
system, a pension valuation system, a retiree medical valuation system,
workpapers and reports based in the Microsoft Application Suite.
Our database management system, BENEFACTOR, supports our defined
contribution recordkeeping practice, has been installed at major clients and
continually improved in its network version.
PENV AL, our pension valuation system, is flexible and comprehensive; it
values all pension plan benefits explicitly.
During the early phases of the FEI Field Test, we recognized that traditional
software developed for pension actuarial valuations would not adequately
address the unique nature of health benefits and the additional assumptions
needed to measure retiree health obligations. Accordingly, a team of our
firm's health care actuaries, pension actuaries with substantial valuations
experience, EDP professionals, and accountants designed RETIREASE, our
proprietary software package. RETIREASE fully automates the calculation of
retiree health and life insurance obligations and expense through the use of
two modules--the Liability Module and the Expense Module.
Actuarial assumptions, plan provisions, asset information and financial
reporting policy are entered through the use of a series of menu-driven
screens. Tbe system automatically provides obligations for retirees, active
employees fully eligible for benefit and active employees not yet fully eligible,
in conformance with the actuarial method and attribution period required
under F ASB Statement 106. In addition, the software allows you to use a
different actuarial method to project contributions for funding purposes.
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Tbe system goes beyond the determination of expense by providing results for
year-end disclosure. In addition, obligations may be generated by plan as well
as by other breakdowns (e.g., location, subsidiary). Expense amounts may be
determined under a variety of options, recognizing both current accounting
policy and options available under F ASB Statement 106.
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With this software, our actuaries can meet a client's varied needs for
information including:
. Using 'either net claims cost data or recognizing cost components by age,
sex and status.
. Modeling changes in actuarial assumptions.
. Modeling alternative substantive plan approaches.
. Analyzing the effect of alternative delivery systems and other cost
containment methods and other plan design changes with greater
flexibility than typically available from other programs.
. Recognizing health care cost trends that vary by year, type of medical
service, claim component and age (over/under age 65).
. Performing multiple-year projections of obligations an expense, using an
open group methodology (e.g., forecasting new hires to produce estimates
for management beyond what is needed for Statement 106).
. Reflecting alternate dates for the adoption of Statement 106.
. Maintaining easy access to all results for use in generating customized
reports and quickly responding to special client requests.
Specialized Knowledge and Knowhow
Our Tampa practice provides actuarial services in all aspects of benefit plan
design, implementation, compliance, 9lfministration and employee
communications, as well as financial analysis and reporting. Our actuarial
expertise encompasses pension plans, retiree life and medical plans (SF AS
# I 06), disability plans, life insurance plans, Supplemental Executive
Retirement Plans and severance plans (SF AS # 112). The Tampa office of the
GHRS group has been providing dermed benefit actuarial services since its
inception in 1985.
We are particularly proud of our track record in serving clients throughout
Florida. In fact, throughout the thirteen years we've been serving clients
through our Tampa office, we have never lost an actuarial client to a
competitor.
The Tampa GHRS practice includes two actuarial principals and 25
professional staff members. This office serves clients throughout Florida.,
providing the full range of our finn's human resource advisory services.
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Our Florida practice is supported by our National Technical Consulting Unit
in Washington, D.C., a key resource for research as well as up-to-date
information on legislative and regulatory activities. The National Technical
Services Unit sends out technical memoranda to our practice offices daily via
our intranet - The Knowledge Curve. This unit also acts as our liaison with
government agencies to obtain information through key contacts and to obtain
formal rulings.
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Our Accounting, Auditing, and SEC Consulting Services Directorate and Tax
Directorate also maintain research units. Specialists in these groups bring
their expe~ise to emerging issues. Our work on the FERF Research Project
and the FBI Field Test on post-retirement benefits are specific examples of
these multidisciplinary research units working together. This extensive work
required the involvement of group and pension actuaries, health care and
benefits consultants, and accounting and tax professionals from both practice
offices and research units. More recently, the research units are analyzing the
impact of the proposed change in accounting treatment of stock based
compensation.
Keeping our consultants informed on emerging issues, legislative changes and
research results is a top priority for us and at the core of our high-quality,
responsive service. We get the information out quickly so your team can help
you respond before there is a negative impact on your business. And, with our
contacts in Washington, D.C., and representation on various committees, the
City can be confident that the information is accurate and timely.
The National GHRS library, which is part of the NTCU, is staffed by two
librarians specializing in employee benefits and human resources. The
mission of this library is primarily to provide research support to all GHRS
practice offices worldwide. Such specialized research is provided through the
use of print sources, on-line data bases, and CD-ROM technology. In
addition, the library maintains a clearinghouse of reports issued by the GHRS
practice. The GHRS practice is kept abreast of recent practice and legislative
developments through the issuance of monthly annotations of the trade press.
Extensive employee benefits and human resources subject files are maintained
and the library currently subscribes to more than 100 periodicals specific to
the human resources/employee benefits field. Extensive survey information is
also maintained in order to provide competitive intelligence to consultants and
clients.
Our firm also maintains other libraries to meet the diverse needs of our clients.
The National Library is staffed by five librarians and provides research
support to all of our offices worldwide. This library maintains a laser disk
collection of all SEC filings and bas a collection of more than 10,000 volumes
and more than 500 periodicals covering all of our areas of service and the
industries in which the Firm has clients.. This collection covers each company
on the New York and American Stock Exchanges and more than 2,500 over-
the-counter companies.
A health care library, staffed by two health librarians is housed in the Chicago
office. This library has an extensive collection of medical and health-related
publications and provides research support.
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The firm's OHRS practice also uses a wide variety of lmmunication vehiclea
to disseminate technical infonnation and the related business issues to our
consultants across the country on a timely basis. These communication
methods inClude:
. The Knowledge Curve - our Intranet - as well as specialized data libraries on
our Lotus Notes servers. These are core resources we use to keep current
with infonnation in the office or on the road, using worldwide dial-up
capability. The Knowledge Network provides our professionals with access
to finnwide discussion groups for each of our various disciplines. Through
these discussion groups, your engagement team learns about current
developments and is able to exchange ideas with PwC professionals across
the country.
. Monthly national conference calls and several annual national meetings are
held to share technical opinions and creative solutions to client problems as
well as to discuss ways to meet new client service needs.
. To inform consultants of particularly significant developments or projects,
we conduct seminars across the country. We recently participated in
Discovery - our Firm's national human resources educational meeting for
major clients and annually participate in the Cash Balance Plan Forum. On
a local basis, we have committed to providing local benefits briefings to
address emerging human resources issues affecting our clients. Over the
past several years, our Benefits Briefmgs have addressed the Pension
Protection Act, HIP M and other timely matters.
. We also offer an internet service to our clients, The Tax News Network.
This on-line service includes ongoing analysis and infonnation about
national benefits legislation and regulations. The Tax News Network is on
the World Wide Web at www.taxnews.com.
D.
Describe your firm's experience in serving as an actuary and consultant to
local governmental units including your most recent clients within the State
of Florida, including the names, addresses, and phone numbers of contact
persons; briefly describe the services performed for these clients.
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Governmental employers must address challenges different from those of
private companies. In most cases, this includes a larger, more diverse work
force and separate and distinct compliance issues, among others.
Governmental employers in Florida must also comply with Chapter 112 of
Florida Statutes, which contains specific funding requirements for pension
plans. We would like to point out our extensive experience with governmental
clients in Florida. We have worked extensively with government clients,
including several government owned hospitals and health systems.
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Most specifically, we served as actuaries and consultants to the City of
Clearwater for the past ten years and we are proud of our track record of
service. Examples of our assistance to the City include the following:
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ordinance effective January 1, 1996 subject to collective bargaining. This
process required frequent and difficult efforts on short notice. We also
worked at the side of City staff to ensure that an agreement was reached
with the collective bargaining units without subjecting the City to
excessive cost or risk of future cost increases. We received
commendations from several members of the City's staff following the
completion of the process.
. We have assisted the City in developing creative actuarial methods and
techniques to make its pension plan costs more manageable. These
include developing an asset averaging approach and establishing a credit
balance for City contributions above those required by State law. The
result of these changes has been to greatly reduce the volatility of the
City's funding requirements, stabilizing its costs for several years.
. We assisted the City in responding to the Snair lawsuit as well as a
number of other pension and retirement issues.
. We have been holding pre-retirement seminars for City employees for the
past two years and have received overwhelmingly positive responses via
employee surveys. Employees have unanimously responded that the
seminars are effective and infonnative.
Weare also proud of the services we've provided to other clients, both .here in
Florida and around the world. We encourage you to contact these Tampa
office clients regarding the quality and responsiveness of our service.
City of Clearwater Reliltionship: 1988 to present
100 S. Myrtle Avenue
Clearwater, FL 34618-4748
Ms. Margaret Simmons, Finance Director
(813) 562-4538
Sarasota Memorial Hospital Reliltionship: 1994 to present
1700 S. Tamiami Trail Saraso~ FL 34239-3555
Mr. Walter L. George, Vice President, Human Resources
(941) 917-1955
Ms. Bonnie Gustafson, Manager, Compensation & Benefits
(941) 917-1407
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city 0) Dunedin Re'Dllon.Jlp: 1996 to pr..enl
542 Main Street
Dunedin, FL 34698
Ms. Maureen Freaney, Director of Administration
(813) 738-1802
University Medical Center
655 West 8th Street
Ms. Julie Crist, Manager, Compensation & Benefits
(904) 549-4847
Relationship: 1995 to present
BayCare Health System Relationship: 1996 to present
701 6th Street South, St. Petersburg, FL 33701
Ms. Debbie Dewitt, Retirement Manager
(941) 893-6793
E. Indicate whether your firm qualifIeS as an "Enrolled Actuary" as diefined
in Chapter 22D-1.02c of the FloridD Administrative Code.
PricewaterhouseCoopers qualifies as an "Enrolled Actuary" under the
definition of the Florida Administrative Code and bas been actively serving in
this capacity since 1985.
F. Please provide information on litigation your firm has been a party to
during the past three yeaTS.
The increase in litigation experienced by the business community over the past
several years affects all professional services finns. PricewaterhouseCoopers
and our competitors must expend significant amounts of time and capital
refuting an increasing number of unwarranted claims for alleged professional
malpractice.
Consistent with the experience of other major finns, our firm or its
predecessor finns, Coopers & Lybrand L.L.P. and Price Waterhouse LLP have
been named as a defendant in numerous civil actions. Many of these are
merely attempts by investors to recoup losses from third-party sources. Others
are attempts to shift responsibility for management fraud and deception to the
accounting profession.
We believe our Finn has adequate defenses to the lawsuits in which it is
named.
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FAMiliARITY WITH GASB STATEMENT REQUIREMENTS
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Please indicate your familiarity with GASB Statements requirements relating to
Pension Plans by providing a brief summary of the requirements and your
experience in providing required disclosures.
PricewaterhouseCoopers has extensive knowledge of GASB requirements as
well as experience working with governmental units in Florida and throughout
the country in the implementation of GASB statements. Our knowledge
extends throughout our human resources,
business assurance and tax and legal services
practice, including all aspects of the GASB's
requirements.
Most importantly, as the City of Clearwater's
actuaries, we assisted in the implementation of
GASB 25 and 27.
As the largest of the Big Five accounting finns,
PricewaterhouseCOOpers LLP has extensive
experience in auditing governmental entities
and assisting our clients with required
disclosures. Supporting this business assurance
practice, we put extensive resources in keeping
current on GASB, F ASB, FEI, SEC, AlCP A
and FICPA as well as other regulatory and
oversight bodies that affect our clients' financial
statements.
Here in Florida, we have an extensive
governmental audit practice, serving as public accountants for many of the
state's largest cities, counties and special districts.
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QUALIFICATIONS OF PERSONNEL TO BE ASSIGNED
The right people--the advanced techniques in the world will not help if we do
not have the right people to employ them.
That is why we have taken care in choosing the PricewaterhouseCoopersteam
for you. We are sensitive to your need for cost-effective service, a broad
range of capabilities, a business orientation and, most essentially, the people
skills without which no professional relationship can succeed. Your
PricewaterhouseCoopers team has all these attributes.
We depend upon the skills and experience of our professional staff to deliver
the high quality of service described in this proposal. Tbe commitment of our
Finn to anticipate. and meet the needs of the City of Clearwater has been
demonstrated through our ten-year track record of services and continues
through our commitment of partners and consultants to this engagement.
Ste\~ I\1clz
Eng,lgell1~l1t Partner
Christina S\\anson
Health & Wel fare
Consulting
Jim lIanlon
Busin~ss Assurance
Partna
The following pages include resumes oftbe designated staff.
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STEPHEN M. METZ
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Global Human Resource Soludons Principal
PricewaterhouseCoopers LLP, Tampa, Florida
Professional Experience
Steve Metz is the partner in charge of Global Human Resource Solutions services for Florida
and Puerto Rico. He is a pension actuary with more than 15 years of experience in human
resource consulting and employee benefits. His experience includes employee benefits plan
design, funding and administration and he consults with clients in all areas of compensation
and benefits. Mr. Metz has lead numerous compensation and benefits engagements for
employees in Florida including compensation and benefits surveys, employee
communications, and the design of qualified and nonqualified programs.
Significant Clients Served
Blue Cross/Blue Shield of Florida
Florida Rock Industries, Inc.
Intracoastal Health Care System
The PGA Tour
Rooms To Go
Sarasota Memorial Hospital
Education
B.A. from the University of North Florida
ProfessionaVCommunity Affiliations
Associate of the Society of Actuaries
Enrolled Actuary
Member of the American Academy of Actuaries
Past President, Florida West Coast Employee Benefits Council
Member, United Way of HilIsborough County Distnbution Committee
Member, Southern Employee Benefits Conference
City of Clearwater
City of Dunedin
Hi/lsborough County School Board
Martin County School Board
Jackson Memorial Hospital
University Medical Center
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MICHAEL CAREY
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Global Human Resource Solutions Senior Consultant
PrlcewaterhouseCoopers, Tampa, Florida
Professional Experience
Mr. Carey is a senior consultant in the Global Human Resource Solutions Group with ten
years of experience in defmed benefit and defined contribution consulting. He has significant
experience in performing actuarial valuations for government, private sector and not-for-
profit plans ranging in size from 100 to 10,000 participants.
Over the past few years, Mr. Carey bas worked with various clients on retirement plan
analysis. These projects included conversion analysis from traditional defined benefit plans
to defined contribution plans. Mr. Carey's experience has allowed him to work with several
employers offering hybrid retirement plans that combined features of both defined benefit and
defined contribution plans. Mr. Carey has performed several studies on retirement benefits,
assessing individual employee benefits, to determine what type of benefit plan best fits the
employers needs.
Mr. Carey has worked on three major Voluntary Compliance Reviews for Florida employers.
On these engagements, he reviewed all facets of the defined benefit and parts of the defmed
contribution plans to identify areas of non-compliance and recommend improvements to the
administration of these plans. Mr. Carey's experience also includes significant work in
preparing and reviewing government f1Iings, principally Form 5500s and PBGC filings.
Significant Clients Served
Carnival Cruise Line
Hi//sborough County School District
Intracoastal Health Systems
Jackson Memorial Hospital
Martin Memorial Hospital
PGA Tour
St. Joseph's-St. Anthony's Health System
Sarasota Memorial Hospital
Martin County School
Munroe County School
Education
B.S. in Mathematics from State University of New York College at Buffalo
ProfessionaVCommunity Affiliations
Member, Tampa Connection
Past President, Toastmasters International
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CHRISTINA M. SWANSON
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Global Human Resource Solutions Senior Consultant
PrlcewaterhouseCoopers LLP, Tampa, Florida
Professional Experience
Ms. Swanson is a Senior Consultant in the Tampa office of PricewaterhouseCoopers Global
Human Resource Solutions Group. She has over twenty years of experience in benefit
management and consulting for private and public sector employers. Prior to joining
PricewaterhouseCoopers, Ms. Swanson was Director of Employee Benefits and Risk
Management for the School District of Hillsborough County, Florida, the twelfth largest
school district in the country. Ms. Swanson's experience includes:
. Medical cost containment through managed care programs, plan design and
integration, and funding alternatives
. Comprehensive analysis of benefit plans for strategic planning, cost efficiency and
employee satisfaction
. Government entity purchasing alliances
. Benefit plan communications and employee education
. Flexible Benefit Plan design and implementation
. Insurance company selection and negotiations
. Presentations to employee groups, insurance committees and collective bargaining
associations
. Analysis of and assistance with compliance requirements of federal and state statutes
. Workers' Compensation cost control, safety and retUrn-to-work programs
Prior to joining the School District, Ms. Swanson was a Senior Consultant with a Florida-
based consulting finn, specializing in governmental clients. She has also held employee
benefit management positions with Jim Walter Corporation in Tampa and, in Cleveland,
Ohio, with British Petroleum, Eaton Corporation and AmeriTrust Bank.
Significant Clients Served
City of Cocoa Beach
Duval County School District
Hillsborough County
Hillsborough County Public
Schools
City of Jacksonville
Lee County
City of Melbourne
Miami Dade County
City of Ocala/Marion County
Osceola County
Sarasota County School District
Volusia County
Volusia County School District
Education
B.A. from Case-Western Reserve University
M.A. from Kent State University
J.D. from the Cleveland-Marshall College of Law, Cleveland State University
ProfessionaVCommunity Affiliations
Admitted to Bar in Ohio
Past President, Florida Educational Risk Management Association
Past Member, Florida Division of Workers' Compensation Employer Advisory Group
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JAMES R. HANLON
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Assurance and Business Advisory Services Partner
PrlcewaterhouseCoopers LLP, Tampa, Florida
Professional Experience
Mr. Hanlon is a business assurance partner in the Tampa office with over 15 years of
accounting and auditing experience. He has provided auditing and consulting services
to a wide variety of clients in the utilities, high technology,
manufacturing/distribution, not-for-profit and goveI1llrtent industries. He has
extensive experience in mergers and acquisitions, initial public offerings, debt
financings and SEe related matters.
Significant Clients Served
TECO Energyffampa Electric Company
Kissirneee Utility Authority
Medical Manager Corporation
MessageQuest, Inc.
Integrated Supply Network, Inc.
Sarasota Manatee Airport Authority
City of New Port Richey
Pasco County
Education
B.S. in Accounting from the University of Florida
Professional/Community Affiliations
American and Florida Institutes of Certified Public Accountants
Treasurer, Tampa Crossroads, Inc.
Boy Scouts of America
Leadership Tampa Alumni
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MARK JOHNSON
Tax and Legal Services Partner
PricewaterhouseCoopers LLP, Tampa, Florida
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Professional Experience
Mr. Johnson has over 20 years of experience providing tax and fmancial consultation
in connection with various business matters, including tax-exempt financing and
employee benefit issues. He has assisted clients with the intricacies of defeasance,
arbitrage and refundings. Mr. Johnson frequently speaks on taxation matters to a
wide variety of professional groups, has written articles for various publications, and
instructs national tax courses for the Finn's partners and managers.
Significant Clients Served
City of Orlando
City ofOcala
Orange County
Charlotte County
Reedy Creek Improvement District
Education
B.S. in Accounting from Drake University
J.D. from Drake University
ProfessionaVCommunity Affiliations
American, Florida, Virginia and District of Columbia Institutes of Certified Public
Accountants
American, Iowa and District of Columbia Bar Associations
University of Florida Fisher School of Accounting Steering Committee
University of Central Florida Tax Advisory Board
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COSTS TO PROVIDE THE VARIOUS SERVICES
Our fee estimates have been developed in accordance with an hourly rate
structure projecting the time requirements of partners and staff for the work
involved. If our role in the engagement and the corresponding time
requirements should change appreciably in the course of work, it is our policy
to review a revised fee estimate with you before proceeding.
Plans administered by PricewaterhouseCoopers are monitored on a continuous
basis at no additional cost to ascertain the effects of regulatory change on the
qualified status of such plans. Other advisory services which
PricewaterhouseCoopers may request or special services necessary to maintain
the qualified status of the plans are not contemplated in our fee estimate. In
connection with all special work, a separate fee estimate will be discussed
with you before beginning the project. For planning purposes, however, the
average rate per consulting hour is estimated to be in the range of $80 to $300,
depending upon the staff mix required to complete the assignment.
We anticipate providing the actuarial valuation reports within six to eight
weeks of receiving the employee census and trust data. This anticipated
response time, as well as our fee estimates, is contingent on the employee
census data being accurate and complete within reasonable and customary
standards.
It is our practice to invoice monthly for time and expenses as the work
progresses. Each monthly invoice will identify separate totals for professional
fees earned and expenses incurred during the previous month. Payment of
invoiced amounts is appreciated within thirty days after the invoice is
received.
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1999 Estimated Fees
Recurring Actuarial Services
We will perform the annual valuation of the pension plans, including
providing a draft report and attend an annual meeting to review the
valuation.
Employee Pre-Retirement Plonning Workbooks
We will review and revise the existing workbooks each year and
provide camera-ready publications materials to the City within 30
days of the signing of the contract.
Employee Pension Statements
Individual pension plan benefit statements enhance the visibility of
the pension program to each plan participant. All the information that
the participant is entitled to request under ERISA is developed. In
addition to the required information, the statements present other
useful benefit information and a description of some of the more
important plan provisions. These statements will be delivered to the
City by April 1 for distribution to employees.
Quarterly Pre-Retirement Seminars
We will conduct quarterly pre-retirement seminars, targeting
employees approaching retirement. These workshops will assist the
employees in identifying their retirement goals and objectives and
actions required to acbieve them. These seminars will cover
investment strategy, plan options and the retirement planning process.
Miscellaneous Services
We will provide all of the other services identified by the City in its
request for proposals, including telephone pension advice and
counceling services, advice to the City of Tax and Plan Issues and
other communications as required.
PRICEW ATERHOUSECOOPERS LLP
Estimated Fees
$16,000
$500
$1,000
$200 per hour
$80 to $300 per hour
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