San Carlos, CA

Request for Quote - Actuarial Services

The City of San Carlos (CSC) and the City of Redwood City (RWC) are seeking proposals from qualified actuarial firms (Consultant) to provide professional services regarding the valuation of the unfunded liability associated with the pensions of fire personnel as it relates to the fire services agreement between the two agencies. 

Please read the full text of the RFQ and exhibit prior to submitting.

The target dates are as follows:

Release of RFQ                                              August 9, 2023

Proposal due                                                   August 30, 2023                                             

The contract will be between the City of San Carlos (City), serving as the administrator of the contract for both San Carlos and Redwood City, and the Consultant. A copy of the professional services agreement is attached for your reference.

All inquiries regarding the quote shall be directed to Administrative Services Director Rebecca Mendenhall by email at rmendenhall@cityofsancarlos.org.  Proposers are encouraged to submit their quotes prior to 3:00 p.m. on Wednesday, August 30, 2023.


QUESTIONS & ANSWERS
The City received the following questions (in bold) that were submitted through emails.  Answers are in plain type below each question. This section will be updated on Friday, August 25, 2023 if necessary.

  • Please provide a copy of the prior May 2018 actuarial study that estimated CSC’s portion of the RWC unfunded liability.
Please see the attached Final Actuarial Report – May 2018, and the attached Staff Report that discusses the outcomes and the incorporation into the agreement between both agencies.

  • Please provide a copy of the most recent RWC OPEB actuarial report that includes a description of relevant benefit provisions. Please provide a copy of the most recent RWC pension plan actuarial report.
Please see Redwood City Actuarial Report 2018.  Also attached is the Redwood City IDR Actuarial Report, a more recent analysis from 2022, but was focused more narrowly on Industrial Disability Retirements.

  • Please confirm whether copies of the annual pension and OPEB actuarial reports from 2013 through 2023 will be available to the actuarial firm that is successfully awarded this project.
Once a firm has been selected, historical actuarial reports can be provided.

  • Please provide a copy of the most recent actuarial reports.
This actuarial report is not done every year but rather is done as a part of our contract negotiations.  Please see the attached:
      • Final Actuarial Report – May 2018,
      • Redwood City Actuarial Report 2018
      • Redwood City IDR Actuarial Report
  • Is the current actuary permitted to bid?
All firms are invited to bid.

  • What were the fees paid in the last three years?
This actuarial report is not done every year but rather is done as a part of our contract negotiations. Please see City of San Carlos – Millman Contract for fees.

  • The RFQ references the prior May 2018 actuarial study completed to determine CSC’s portion of the unfunded liability. 
    • Can you provide a copy of that study?
Please see attached Final Actuarial Report – May 2018.

    • Can you tell us the fee charged for the study?
Please see attached City of San Carlos – Millman Contract for actuarial services fees.

    • Was the prior study methodology and quality acceptable to CSC and RWC?  If not, can you explain issues that came up that you’d like to correct/avoid?
Please see attached Staff Report that discusses the outcomes and the incorporation into the agreement between both agencies.

  • Ideally, when would CSC and RWC like to see items 1, 2, and 3 in the Scope of Services completed?
Redwood City and San Carlos have extended the existing agreement until December 31, 2023 while we continue negotiations. The actuarial report is a critical component as it determines the actual cost of services.  Therefore, we would like to have the report prepared and finalized as quickly as possible.

Attachments:
Request for Quote - Actuarial Services
Exhibit A - Professional Services Agreement

Final Actuarial Report – May 2018

Staff Report

City of San Carlos – Millman Contract

Redwood City Actuarial Report 2018

Redwood City IDR Actuarial Report

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