METROPOLITAN EMERGENCY SERVICES BOARD REQUEST FOR PROPOSALS (RFP) FOR ACTUARIAL SERVICES DUE DATE: MAY 18, 2018

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1 METROPOLITAN EMERGENCY SERVICES BOARD REQUEST FOR PROPOSALS (RFP) FOR ACTUARIAL SERVICES DUE DATE: MAY 18, 2018 ISSUED BY: METROPOLITAN EMERGENCY SERVICES BOARD 1

2 1.0 PURPOSE The Metropolitan Emergency Services Board (MESB) is soliciting proposals from qualified firms of actuaries to provide an actuarial study on its Other Post-Employment Benefits (OPEB) obligations in compliance with Governmental Accounting Standards Board (GASB) 75 requirements. 1.1 BACKGROUND MESB is a joint powers board in the State of Minnesota, formed to provide oversight and management of the regional system and regional public safety radio system, and to provide coordination of the regional EMS system. The MESB was formed under Minnesota Statues and The MESB is governed by its board, which currently consists of 17 elected officials from its ten member agencies (City of Minneapolis and Counties of Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott and Washington). The MESB employs an Executive Director who manages the staff necessary for the day-to-day operations of the MESB and its duties. MESB is funded through assessments to its member agencies. The MESB also receives some state and federal grants for certain activities. The MESB operates on a calendar year fiscal year. 1.2 SCOPE OF SERVICES The Governmental Accounting Standards Board (GASB) issued Statement Number 75, Accounting and Financial Reporting for Post-Employment Benefits Other than Pensions. The statement requires actuarial es for each plan for active employees and retirees with certain parameters. The MESB will be required to report in its Comprehensive Annual Financial Report certain additional data. The purpose of this procurement is to secure professional services, which will obtain data from MESB s Other Post-Employment Benefits for Health Insurance Plans that will satisfy the requirements of GASB 75. The firm shall prepare annual Actuarial Valuation Reports of Post- Employment Benefits starting January 1, 2018 to include determination of the Actuarial Accrued Liability and estimation of the Annual Required Contribution for a two-year contract period with options for three additional one-year periods. 1.3 REPRESENTATION OF THE PLAN The following is information relative to the MESB Plan at December 31, 2017: A. Effective December 13, 2006, the MESB provides Post-Employment Benefits for health insurance only for those employees hired before December 13, 2006, and who have at least ten years benefit-eligible employment. B. Eligible employees may receive Post-Employment Benefits if they retire before the age of 65; benefits only last until age 65. C. As of December 31, 2017, the number of current employees eligible for OPEB is two (2), both of whom are under the age of 65. D. The MESB has one (1) retired employee who has OPEB for health insurance for life. E. The amount of MESB contribution for retirees health insurance coverage is dependent on length of service with the MESB. 2

3 F. Per state statutes, other employees have the option of remaining on MESB insurance upon retirement until the age of 65. Employee is responsible for 100% of the premium. Insurance rates are blended, however MESB is a small part of a larger plan. G. The MESB s contributions are financed on a pay-as-you-go basis. During 2017, expenditures of $3,841 were recognized for post-employment comprehensive medical benefits. 1.4 SCOPE OF WORK A. Prepare actuarial s for the MESB following GASB 75 standards including the following for both full and roll forward, as applicable: the actuarial present value of total projected benefits; actuarial accrued liability; actuarial value of assets; the unfunded actuarial accrued liability; normal cost; and net pension obligation. Reports shall be completed annually by December 30. Reports shall be broken out by retiree and by employee. B. Analyze the data to assess any inconsistences and make recommendation for enhancing data quality. C. Prepare the necessary information for the Comprehensive Annual Financial Report to comply with GASB OPEB reporting and disclosure requirements. D. Prepare the annual gain/loss analysis to determine reasons for changes in the unfounded actuarial accrued liability, whenever a prior actuarial is available to support this. E. Determine the implicit rate subsidy, if any, and the impact it would have on OPEB liability. F. Prepare a sensitivity analysis showing the impact of alternative assumptions on the employer s contributions. 1.5 PERIOD OF PERFORMANCE The period of performance shall be for one two-year report with a provision to extend, at MESB s sole and absolute discretion. This contract may be renewed by exercising additional one-year reports for a maximum contract term of five years. Written notice of MESB s intention to renew shall be given approximately 60 days prior to expiration date of each contract period. 1.6 FORMAT REQUIRED The proposal is required to include all information specified within the body of the proposal. The proposal shall be presented in tabbed sections as described below. Responses of a boilerplate nature, or which merely provide a review of vendor qualifications will not be accepted as responsive. To be considered, the proposal shall respond to all requirements of this part of the request for proposal, and it shall be signed by an individual authorized to bind the firm. Any other information thought to be relevant, but not applicable to the categories below, may be provided as a separately bound appendix to the proposal. The proposal should be concise and to the point. Sections to be included are: A. Qualifications and Experience of Firm Demonstrate the firm s understanding and qualifications for completing the necessary work, evidence of the firm s ability to perform this type of work, and any record of past experience including similar projects or issues relative to municipal, county, or other political entities. Include a profile of firm s principals, staff and facilities. Describe any qualities that your organization possesses that will enhance, provide continuity, and contribute to the efficiency of providing this service (E Criteria A). 3

4 Qualifications and Experience of Key Personnel Identify the individual(s) that will be assigned to this project, their qualifications, training, responsibilities and resumes. Be specific as to their level of experience with local governments, particularly as it relates to this scope of services (E Criteria A). B. References Provide current references (within the last five years). Provide names, contact number, data of service and description of the work performed (E Criteria B). C. Approach and General Understanding Provide your general understanding of the services required, your approach to transitioning into the work, your ability to meet the deadline, and any value-added components that your firm can offer (E Criteria C). D. Price Provide fees for services in a separate sealed envelope. The following items must be included: FYE Valuation Type Fee 12/31/2018 Year 1 Full GASB 75 $ 12/31/2019 Year 2 Roll-forward GASB 75 $ 12/31/2020 Year 3 Full GASB 75 $ 12/31/2021 Year 4 Roll-forward GASB 75 $ 12/31/2022 Year 5 Full GASB 75 $ E. Licensing Requirements Evidence that the offeror meets all licensing requirements, as applicable (E Criteria E). All proposals must be submitted in accordance with the specifications of this proposal. No requirement and/or specification should be construed as an attempt on the part of MESB to limit competition. 1.7 WITHDRAWAL OF PROPOSAL Proposals may be withdrawn by written request dispatched by the firm in time for delivery in the normal course of business and prior to the time fixed for receipt of proposals. The same person signing the proposal must sign the withdrawal request. 1.8 RECEIPT AND OPENING OF PROPOSALS One original and two copies of the proposal must be sent to: Jill Rohret, Executive Director Metropolitan Emergency Services Board 2099 University Avenue W. St. Paul, MN Proposals should be clearly marked Proposal Actuarial Services for GASB 75, no later than 4:00 p.m. on Friday, May 18, Fee schedules or quotes should be placed in a separate envelope, sealed and marked to indicate the firm s name, and included with the proposal. Electronic transmissions will not be accepted. 4

5 Proposals received prior to the due date will be securely kept, unopened. No proposal will be received after the designated time and date. Should MESB close earlier than normal hours due to uncontrolled events such as fire or building evacuation, proposals will be accepted by 4:00 p.m. on the next business day of MESB. At the designated date and time, MESB will open and list the proposals for the record. This is not a public opening. The proposals will be reviewed by an e committee, which will develop a recommendation for the Board. The Board will review the recommendation and make the final determination. 1.9 CONTACT INFORMATION Questions concerning this RFP shall be directed to Jill Rohret, Executive Director, and shall be ed to jrohret@mn-mesb.org. It shall be the responsibility of the sender to verify receipt of all s. MESB shall not be responsible for missed s. All questions must be submitted by 4:00 p.m., Friday, March 23, 2018, and both the question(s) and answer(s) will be shared on the MESB s webpage, EVALUATION CRITERIA The following criteria will be used in the e of proposals: TAB CRITERIA POSSIBLE POINTS A Demonstration of the firm s understanding and qualifications for completing the necessary work, evidence of firm s ability to perform this type of work, and any record of past experience, including similar projects or issues relative to municipal, county, governmental or other political entities. Include profile of firm s principals, staff and facilities. Provide qualities that your organization possesses that will enhance, provide continuity, and contribute to the efficiency of providing this service. 45 B C D Identify the individual(s) that will be assigned to this project, their qualifications, training, responsibilities, and resumes. Include their level of experience with local governments. Provide current references (within the last five years). Provide names, contact number, date of service, and description of the work performed. Evidence of your general understanding of the services required, your approach to transitioning into the work, your ability to meet the deadline, and any value-added components that your firm can offer. Provide fees for services, per contract year as per attached pages

6 E Provide evidence that the offeror meets all licensing requirements, as applicable. Mandatory 1.11 EVALUATION AND SELECTION PROCESS During the e phase, proposals are reviewed by applicable MESB staff to determine which addresses all the requirements of the RFP and to technically review the proposals. Proposals determined to be non-responsive will be eliminated at this point. Once the qualified firms have been determined, the applicable MESB staff shall rank all responsive proposals and formulate a recommendation to be considered and determined by the Board. MESB reserves the right in its sole discretion to award a contract related to this RFP based upon the written proposals received by MESB without interviews or prior discussion or negotiation with respect to those proposals. However, each firm choosing to submit a proposal should be willing to attend a conference, if necessary, at its own expense, for negotiations. MESB reserves the right to request additional information from any or all respondents as necessary to clarify any information which is contained in the proposals. Negotiations shall be conducted with the firm ranked first. If a contract satisfactory and advantageous to MESB cannot be negotiated with the firm ranked first, then negotiations may be conducted with the firm ranked second, and so on until a contract has been negotiated or all proposals are rejected. Contracts must align with the scope of work and fees contained in the firm s RFP response. Contract terms must be approved by the Board. All portions of this RFP may be considered to be part of the contract and may be incorporated by reference. Any contract awarded in connection with this RFP will be subject to approvals as required by the Executive Director, the Board and Board Counsel. Issuance of this RFP does not constitute a commitment by MESB to award a contract. MESB reserves the right, at its sole discretion, to accept or reject any and all proposals received as a result of this RFP or to cancel this RFP if it is in the best interest of MESB to do so; to waive minor irregularities; and to conduct discussions, if needed, with all responsible Respondents, in any manner necessary, to serve the best interest of MESB CONFLICTS OF INTEREST Firms submitting proposals must identify and disclose any real or apparent conflicts of interest with MESB INSURANCE The firm selected for award shall maintain professional liability insurance in amounts/limits dictated by MESB to protect MESB from acts, omissions, and negligence on the part of the firm, its partners, attorneys, and/or employees and shall furnish MESB certificates of insurance evidencing such coverage naming MESB as their interests appear. PUBLIC DATA Proposals submitted become a matter of public record. Information supplied by any proposer is subject to the Minnesota Government Data Practices Act, Minnesota Statutes, Sections et seq. Public Record: Under Minnesota law, data submitted by a business to a government entity in response to a request for proposal are private and nonpublic until the responses are opened. Once 6

7 the responses are opened, the name of the proposer becomes public. All other data in a proposer s response to a request for proposal are private or nonpublic data until completion of the e process. Completion of the e process means that the government entity has completed negotiating the contract with the selected proposer. After a government entity has completed the e process, all remaining data submitted by all proposers are public with the exception of trade secret data as defined and classified in Minn. Stat. Section A statement by a proposer that submitted data are copyrighted or otherwise protected does not prevent public access to the data contained in the response if such data does not qualify as trade secret data. 7