Okaloosa County BOCC — July 1, 2014 — ACTUARIAL Glicksman — reading text

the estimated outstanding amounts will be shown at low/high reasonable and various confidence levels (expected, 60%, 65%, 70%, 75%, 80%, 85% and 90%) and/or recommended high/low/point projections. 2. Project Future Losses and Recommend Funding. We will project future losses and recommend funding for the upcoming five fiscal years (2014/15 and 2015/16, plus 2016/17, 2017/18 and 2018/19). The projected future losses are the accrual cost of claims by year of occurrence. Reinsurance and tort limits will be applied. The projected future losses will be shown on a full-value basis and-present-vatue basis. The losses will be shown at low/high reasonable and various confidence levels (expected, 60%, 65%, 70%, 75%, 80%, 85% and 90%) and/or high/low/point projections. 3. Project Future Cash Flow. We will project cash flow for the upcoming five fiscal years (2014/15 and 2015/16, plus 2016/17, 2017/18 and 2018/19). The projected cash flow is the cash-out-the-door of claims by year of payment. 4. GASB Statement No. 10 Compliance. We will provide.a statement affirming GASB No. 10 compliance or, in the event of non-compliance, provide guidelines for future compliance. The Scope of Work is more comprehensive than required by the County. For example, we are: e Providing a greater range of confidence levels. e Apportioning the outstanding losses into short-term (payable in one year) and long-term (payable after one-year) components. e Five years of projections instead of two requested. We will compare the actuarial study with the previous study. We will work with the County to achieve stability. and mitigate swings in financial performance. We will submit.a draft report. We will discuss the draft report with the County. Based on new facts ascertained in the meeting we will issue a final report as a deliverable. The delivery date of the draft is October 31 or sooner. The delivery date of the final is November 15 or sooner. The report will include the equivalent of an executive summary, background, objectives, conclusions, methodology/analyses and glossary sections. We will provide summary exhibits that will be designed to readily communicate key findings to non-actuaries at a glance. We will affirm that the reports are in compliance with generally accepted actuarial principles and relevant GASB statements, including GASB Statement No. 10 and all State disclosure requirements. The reports will lay the groundwork to facilitate future studies. Our work plan will ensure quality and provide a solid foundation for future studies. We are fastidious with regard to documenting all key GLICKSMAN CONSULTING, LLC 6 assumptions and adjustments within the text of the actuarial report. We will provide as many hours as required to complete the work and explain the results. We propose the following work schedule: Item Description of Work Work Schedule Data Collection Conduct an initial discussion with the County. Learn about | October 10 to data availability. Submit a written data request. Gather and | October 15 compile data. Review the data for reasonableness. Analysis Perform a comprehensive actuarial study of the program... | October 15 to October.20 Preparation and Prepare a draft report of our conclusions and-|-Draft report by Delivery of Report { recommendations. Discuss the draft report with The County. | October 31 Issue a final report. Final report by November 15 We guarantee the timeliness of our work. We understand the governmental tort limits in Florida.-Essentially, liability losses currently filed within the jurisdiction of Florida are capped to $200,000 per claim and $300,000 per occurrence unless special compensation is awarded by the legislature. Claims filed in federal court, suchas many civil rights violations, are not subject to the caps. We view this as a long-term:relationship: As such, we will have ample time devoted to the County. We will.schedule the work as required to meet the County's needs. We foresee no problems in performing work within the dates required by the County. We are committed to providing the County with superior service. As our references will attest, we are exceptional in helping programs understand and manage their finances. Telephone calls will be answered promptly. We will take the time to integrate our report with the specific goals of the County. Our work i is typically finished ahead of schedule. i As for management style, we are easy to work with. We only ask for data that is required. The report will feature clear summary tables of the information you require. Presentations are informative. We speak in plain terms. We have a hands-on approach. Work will not be delegated to non-accredited staff. Though this would normally involve significant additional cost, we do not support a top- heavy organizational structure. Most of all, we are client service oriented. Telephone calls will be answered promptly. We will take the time to integrate our report with the specific goals of the County. Our work is typically finished ahead of schedule. All work will be performed in the United States. We do not out-source. GLICKSMAN CONSULTING, LLC 7 Glicksman Consulting, LLC has no regulatory or license sanctions. Glicksman Consulting, LLC has had no lawsuits. Glicksman Consulting, LLC has had civil or criminal litigation. Glicksman Consulting, LLC is unaware of any conflicts of interest that would impair our objectivity. 4. Primary actuary Mr. Steven Glicksman, FCAS, MAAA of Glicksman Consulting, LLC is the primary contact person. Mr. Glicksman is a Fellow of the Casualty Actuarial Society (FCAS) and a Member of the American Academy of Actuaries (MAAA). He will serve as the primary actuary and retain full responsibility for satisfaction with the work. Mr. Glicksman has ample time available to complete a thorough analysis within schedule. Mr. Glicksman’s most recent position was (National Actuarial Practice Leader for Public Entities) Managing Director, Aon... Prior to Aon, Mr. Glicksman was Principal and Director of Actuarial Services at ARM‘ Tech. His technical work included pricing and reserving of clients..across.commercial and property lines. His specialty is public entities. : Before Aon and ARM Tech, Mr.:Glicksman managed Southern California office of the Actuarial and Benefits Consulting division of Coopers & Lybrand (now PricewaterhouseCoopers). He also was. employed by the National Council on Compensation Insurance; Inc. (NCCI). where he worked in the Detailed Claim Information database and Legislative Evaluation units. Mr. Glicksman authored a publication on workers compensation claims characteristics. Mr. Glicksman: began ‘his. actuarial career with the Hartford Insurance Group (HIG) over thirty years ago. Before HIG, he taught mathematics at a community college in New York City. 5. Other staff Mr. Christopher Mariani will perform technical tasks and review as required. Mr. Mariani has ample time available to assist Mr. Glicksman complete a thorough analysis within schedule. Mr. Mariani is an actuarial analyst with twenty years of experience. Mr. Mariani has spent the last ten years providing actuarial consulting services to the following firms; Preferred Insurance Capital Consultants, LLC, Matrix Insurance Consulting, LLC and Glicksman Consulting, LLC. Mr. Mariani’s work as an actuarial consultant has included as wide variety of assignments. Among the many assignments, Mr. Mariani has estimated GLICKSMAN CONSULTING, LLC 8 reserves for both public and private entities, produced rate and rule filings for insurance companies, provided actuarial support for litigation related to insurance and reinsurance disputes, and produced actuarial exhibits in support of Uniform Certificate of Authority Applications for entities seeking license to operate as an insurer. Prior to his employment as an actuarial consultant Mr. Mariani began his actuarial career with the NCCI where he worked with Mr. Glicksman in the Actuarial and Economic Services unit. Fee Proposal . Report. We propose a fixed fee of $2,250 per year for up to six years to perform the analysis and issue the written report. .The amount includes expenses for copying, postage and telephone. ~— We will-provide as many hours as necessary to complete the work and explain the report. The reason that we can provide such high quality work at reasonable fees is scheduling. Typically, September is a slower-month for our actuarial consulting practice. It is an ideal time. to prepare for work by updating spreadsheets and text in anticipation of.September 30 Florida clients. Then, when data is available in early October, we can efficiently deliver services. . Meeting. If requested, we will present the work at an on-site meeting in the County offices. An on-site presentation (up to 6 hours) at-the County’s offices is an additional $2,000. The amount includes travel expenses. . Cost Allocation. If requested we will prepare a second actuarial report projecting future and allocating the losses (and expenses) by department. Please provide a separate proposal for this service. The fixed fee is $2,250. The fixed fee for workers compensation only is $1,500. ee RK OR We are looking forward to working with you on this project. Please feel free to contact us if you have any questions concerning this proposal. Respectfully s Steven Glicksman, FCAS, MAAA Actuary Glicksman Consulting, LLC GLICKSMAN CONSULTING, LLC 9 ADDENDUM ACKNOWLEDGEMENT | The bidder acknowledges that he/she has received the following addendum: ADDENDUM NO. DATED. ADDENDUM NO. DATED. ADDENDUM NO. DATED. ADDENDUM NO. DATED. ADDENDUM NO. DATED. Bidder Firm Name: G leeks Mary Con. CC Cc Address: So O A) Loy 4 | & lm +4 ‘Baca Qatar FL 33U96 Title: Sfovan Olicksmen Ae hatte Phone #: SU \ Go & Q2579 ( FAX No.: tuo 42. Azo fsa addeardum To Y/23 lly PLOW a cluarta/ study added onl no, “NO CONTACT CLAUSE” The Okaloosa County Board of County Commissioners have established a solicitation silence policy (No Contact Clause) that prohibits oral and written communication regarding all formal solicitations for goods and services (formal bids, Request for Proposals, Requests for Qualifications) issued by the Board through the County Purchasing Department. The period commences when the procurement document is advertised and terminates when the Board of County Commissioners approves an award. When the solicitation silence period is in effect, no oral or mitten communication is allowed regarding the solicitation between prospective bidders/proposers and members of the Board of County Commissioners, the County Administrator or members of the Board Approved Review Committee. All questions or requests for information regarding the solicitation must be directed to the designated Purchasing Representative listed in the solicitation. Any information thought to affect the committee or staff recommendation submitted after bids are due, should be directed to the Purchasing Director or his appointed representative. It shail be the Purchasing Director's decision whether to consider this information in the decision process. Any attempt by a vendor/proposer to influence a member or members of the aforementioned shall be grounds fo disqualify the proposer from consideration during the selection process. All proposers must agree to comply with this policy by signing the following statement and including-itwith their submittal. . . I aa representing A Cs (\ Carne fa Li (oa) /U < {Signature Company Name Hereby agree to abide by the County's “No Contact Clause” and understand violation of this policy shall result in disqualification of my proposal/submittal. 2. Applicable Laws & Regulations — The proposer's attention is directed to the fact that ail applicable state laws, county municipal ordinances, orders, rules & regulations of alll authorities having jurisdiction over the work shall apply to the proposal throughout, and they will