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EXHIBIT A January 13, 2011 Brian Ponty Finance Director City of Redwood City 1017 Middlefield Road Redwood City, CA 94063 Re: GASB 45 OPEB Actuarial Valuation Fee Estimate & Data Request Dear Mr. Ponty: Bartel Associates would be pleased to provide Redwood City actuarial consulting services. This letter summarizes the project scope and our fee estimate for a June 30, 2011 actuarial valuation for the City's retiree healthcare plan. The prior June 30, 2008 valuation provided the 2008/09, 2009/10, and 2010 /11 Annual Required Contributions, as approved by the City's auditors. Ca1PERS accepted the June 30, 2008 valuation rolled forward to June 30, 2009 providing the 2009/10 and 2010/11 Annual Required Contributions for the City's CERBT application. The June 30, 2011 valuation can be used for the 2011/12 and 2012 /13 Annual Required Contributions if the are no significant changes after the valuation date, for example, to plan membership, benefit provisions, funding policy, or the basis of any long -term actuarial assumptions. Ca1PERS changed the demographic assumptions for PERS pension valuations beginning with the June 30, 2009 valuation for 2011/12 contribution rates based on their recently published 1997 to 2007 experience study. Ca1PERS also requires the new demographic assumptions be used for OPEB plans funding with CERBT for valuations with valuation dates of September 1, 2010 and later. Our June 30, 2011 actuarial valuation will use the new Ca1PERS demographic assumptions and show the impact of the changes. Estimated Fees Our fee to prepare a GASB 45 valuation of the City's retiree healthcare plan as of June 30, 2011 will be approximately $13,500 including CERBT documents and with one meeting to discuss the valuation results. While our fee estimate represents the likely cost of the valuation, it is possible that the valuation may require additional time. We understand the City's budgeting needs and agree not to bill more than $15,000 for the June 30, 2011 valuation unless the project scope changes. Please note that our fee estimate assumes that: • We will bill the City at the following hourly rates: Partner $250 - $300 Assistant Vice President $200 - $225 Senior Actuarial Analyst $150 Actuarial Analyst $125 Administrative Support $75 • The City has made no significant changes to its retiree healthcare plan or healthcare providers since the last actuarial valuation as of June 30, 2008. (Please review the benefit summary from our last valuation results outline and let us know of any changes.) • The City has not changed its contribution policy since the June 30, 2008 valuation. main::. • fizz: = • web: