Agenda

Return

C. 59

To:	Board of Supervisors
From:	David Twa, County Administrator
Date:	November 6, 2018

Contra

Costa

County

Subject:

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

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 11/06/2018

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Diane Burgis, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:	Lisa Driscoll, County Finance Director (925) 335-1023
cc:	Hon. Robert R. Campbell, Auditor-Controller Hon. Russell V. Watts, Treasurer-Tax Collector

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: November 6, 2018
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

APPROVE and AUTHORIZE the County Administrator, or designee, to execute a contract amendment with Milliman, Inc., effective September 30, 2018 to extend the term of the agreement from September 30, 2018 through January 30, 2019.

FISCAL IMPACT:

No additional impact is associated with this contract extension. 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 a period of 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

This contract extension allows for Milliman, Inc. to continue providing services to the County, on an as needed basis, while a request for proposals is prepared and released for a new contract period. This allows county staff to have access to actuarial services that may be needed during this period.

CONSEQUENCE OF NEGATIVE ACTION:

The County will not have an actuary for other-post employment benefits retained.