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buckconsultanta <br />March 25, 2010 <br />City of Santa Ana <br />Executive Director of Finance and Management Services <br />20 Civic Center Plaza (M -17) <br />Santa Ana, CA 92702 <br />A Xerox Company <br />RE: GASB 45 — Other Post Employment Benefit (OPEB) Actuarial Study <br />Dear Executive Director: <br />Section 1 — Transmittal Letter <br />Buck Consultants, LLC (Buck) is pleased to provide you with this proposal for providing <br />valuations of the retiree health plans of the City of Santa Ana (the City), which are compliant <br />with GASB 43 and 45. This letter describes our understanding of the objective, our approach, <br />the data needed, the consulting fees, and timeline for performing this analysis. <br />It is our understanding that the objective of this project is to develop an actuarial analysis of <br />the current liability for the City's retiree health insurance plans. This will include an <br />assessment of the current liability for the existing retirees and the expected future liability for <br />the current active employees. The valuation reports will provide the information and exhibits <br />necessary to comply with GASB 43 and 45 reporting requirements. Various funding <br />strategies, expected cash flows, implicit rate subsidy liabilities, and amortization schedules <br />will be presented with the valuation reports. <br />Our actuarial team for the City is composed of two actuarial consultants from our San Diego <br />office, Mike Schionning and Jim Summers. Both are Fellows of the Society of Actuaries and <br />Members of the American Academy of Actuaries. Mike Schionning and Jim Summers can be <br />reached at (619) 725 -1700. Our San Diego office actuaries specialize in health and welfare <br />actuarial practice and the valuation of other post employment benefits (OPEB). All services <br />will be performed within the time period specified. <br />Mike Schionning, Principal, is authorized as supervising actuary to represent the proposer, <br />Buck Consultants at the address and phone number given in the footer of this transmittal page. <br />Buck's website is at www.buckconsultants.com. You may e -mail Jim Summers with any <br />additional questions at james .summers @buckconsultants.com. <br />1455 Frazee Road, Suite 805 • San Diego, CA 92108 -4320 <br />619.725.1700 • 619.297.5220 fax <br />EXHIBIT A <br />