Agenda

Return

C. 34

To:	Board of Supervisors
From:	David Twa, County Administrator
Date:	October 25, 2016

Contra

Costa

County

Subject:

Contract Admendment with Milliman, Inc. for Actuarial and Consulting Services

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 10/25/2016

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Mary N. Piepho, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:	Lisa Driscoll, County Finance Director (925) 335-1023
cc:	Robert Campbell, County Auditor-Controller Ann Elliott, Employee Benefits Manager

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: October 25, 2016
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

APPROVE and AUTHORIZE the County Administrator, or designee, to execute a contract amendment with Milliman, Inc., effective October 1, 2016, to increase the payment limit by $300,000 to a new payment limit of $700,000 to continue providing actuarial services, and to extend the term of the agreement from October 1, 2016 through September 30, 2018, subject to approval as to form by County Counsel.

FISCAL IMPACT:

The cost of this contract will be paid out of charges to County departments for Benefits Administration.

BACKGROUND:

BACKGROUND: (CONT'D)

In August 2013, the County Administrator’s Office issued a request for proposals from actuarial consultants to advise the County on strategies for managing its post-employment liabilities, other than pensions (“OPEB”), and complying with the requirements of GASB 43, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, and GASB 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, and Government Code Section 7507 for the next three to five years.

The County received eight responses to the issuance and a management panel interviewed the top four respondents. Based on those interviews and reference checks, the panel recommended that Milliman, Inc. be contracted to assist the County with meeting the actuarial and accounting requirements of GASB 43/45, Government Code 7507, and with actuarial advice on developing strategies for the ongoing management of its OPEB liabilities.

The County’s Other Post Employment Benefit liability issue is complex. The liability grew over a period of almost fifty years. The Board of Supervisors has developed a sound strategy to address the obligation and the Board’s goals are being achieved. All OPEB reports and materials are available on the County’s internet site at: http://ca-contracostacounty.civicplus.com/index.aspx?NID=756