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Mr. Ronald Neufeld <br /> May 17, 2011 <br /> Page 3 <br /> We will work with the City to identify a mutually agreeable date for completion after we <br /> receive all requested information. Generally, our turnaround time for completion of actuarial <br /> valuations of retiree health care/life insurance benefits is 8-12 weeks from the receipt of all <br /> the information necessary to complete our work. <br /> Fee Quote <br /> Based on the information we have received previously about the City's retiree benefits and <br /> our understanding of the project and the deliverables as described above, our fixed fee for the <br /> initial actuarial valuation is $7,800. If there have been little or no changes to the retiree <br /> medical program and participant data, we can use the results from the full valuation described <br /> above to provide interim valuations at considerable cost savings. The labor intensive steps of <br /> analyzing the employee and retiree data can be performed every other year. Our GASB 45 <br /> valuation techniques can produce accurate, up to date figures for the "off' fiscal year by <br /> incorporating changes in your premium/contribution structure and changes in the economic <br /> environment without needing to perform costly reruns. Our fee estimate for the "off' fiscal <br /> year calculation of the GASB 45 results is $3,100. Our fees for subsequent years would be <br /> expected to increase with inflation. <br /> These fee estimates assume: <br /> Our data needs can be provided by the City in a timely and accurate manner in our <br /> requested format. If the requested data is not provided in a timely and accurate manner in <br /> our requested format, additional fees based on our standard hourly rates will apply. <br /> Our evaluation is limited to the City's current benefit plans as included in the general <br /> summary of retirement benefits detailed in our last actuarial valuation report dated June <br /> 24, 2010. <br /> Subsequent presentations, studies, and alterations will be billed on a time and expense basis <br /> based on our standard billing rates. We would be happy to provide fee quotes in advance <br /> once the scope of the additional project is defined. <br /> Additional Available Services <br /> As a full service actuarial and benefits consulting organization, we are prepared to provide a <br /> wide range of consulting services. Any such services would be performed only upon request <br /> and would be accompanied by an advance fee estimate, if desired. Some of these services <br /> are: <br /> Milliman <br />