HomeMy WebLinkAboutMINUTES - 04152003 - C78 011
Contra
TO: BOARD OF SUPERVISORS • j ��;
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FROM: JOHN SWEETEN, County Administrator - Costa
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DATE: APRIL 9, 2003 : ..-
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SUBJECT: FOLLOW-UP RESPONSE TO GRAND JURY REPORT NO, 0301,
ENTITLED "UNDER FUNDED EMPLOYEE BENEFITS THREATEN THE
COUNTY'S FINANCIAL STABILITY"
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
ADOPT report as the Board of Supervisors' follow-up response to Grand Jury Report No.
0301, entitled "Under Funded Employee Benefits Threaten the County's Financial Stability».
BACKGROUND:
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In February 2003, the Board of Supervisors issued a response to Grand Jury Report No.
0301, but indicated that Recommendation No. 4 of that report required further analysis
before a response could be made. To be timely, the Board's follow-up response to
Recommendation No. 4 must be issued by May 4, 2003,
CONTINUED ON ATTACHMENT: YES SIGNATURE:
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COMMENDATION OF COUNTY ADMINISTRATOR RECO E DATION OF BOARD COMMITTEE
APPROVE QTHER
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ACTION OF A ON_ An r i 1 15 _ 2 0 0 3 APPROVE AS RECOMMENDED OTHER
VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE
AND CORRECT COPY OF AN ACTION TAKEN
XX'�UNANIMOUS(ABSENT ) AND ENTERED ON THE MINUTES OF THE
BOARD OF SUPERVISORS ON THE DATE
AYES: NOES: SHOWN.
ABSENT: ABSTAIN:
DISTRICT III SEAT VACANT April 15 2003
ATTESTED p �
CONTACT: JULIE ENEA 925)335-1077
( .JOHN SWEETEN,
CLERK OF THE BOARD OF SUPERVISORS
CC: BOARD OF SUPERVISORS MEMBERS AND COUNTY ADMINISTRATOR
PRESIDING JUDGE OF THE GRAND JURY
GRAND JURY FOREMAN
COUNTY ADMINISTRATOR _
HUMAN RESOURCES DIRECTOR �? �
BY— DEPUTY
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FOLLOW-UP RESPONSE TO GRAND JURY REPORT NO. 0301
UNDER FUNDED EMPLOYEE BENEFITS
THREATEN THE COUNTY'S FINANCIAL STABILITY
RECOMMENDATION NO. 4
[The Board of Supervisors should] recommend to their appointed CCCERA trustees that
the Association reconsider and adopt the three unadopted actuarial assumptions as set
forth in finding number 1, to more adequately track and appropriately fund the URAL.
Response: Has been implemented.
The three actuarial assumptions that were not adopted by the Retirement Board were:
1. Marriage Assumption valued at$13,603,000*
2. Service from Unused Sick Leave Conversion valued at$21.,097,000*.
3. Post-Retirement Mortality valued at$45,,580.,000*.
*From the June 2001 Experience Analysis
The Board of Supervisors agrees that, assuming the actuary's assumptions are correct,
the Retirement Board's failure to adopt the three assumptions has resulted in UAAL.
The Board of Supervisors has, through its appointees and County Administrator,
expressed its concerns to the Retirement Board regarding the accumulating URAL and
its ultimate impact on the County's budget.
Since the release of the Grand Jury's report, the Retirement Board has hired a new
actuary who is conducting the annual valuation study. The actuary recommended to
the Retirement Board that no changes be made to the current actuarial assumptions
until the next experience study is conducted in January 2004. Any changes made to
assumptions in January 2004 would be reflected in retirement rates effective July 1,
2005.
Grand-Jury725 Court Street
ContraPO.Box 911
Costa Martinez, CA 94553-0091
County
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February 27, 2003
Supervisor Mark DeSaulnier, Chairman
Contra.Costa County Board of Supe-nrisors
2425 Bisso Lane, Suite 110
Concord, CA 94549
Dear Supervisor DeSaulnier:
The Compliance &Review Committee of the Contra Costa County Grand Jury has received and
accepted your response to Report No. 0301 —"Under-Funded Employee Benefits Threaten the
County's Financial Stability."
We appreciate your timely response and comments.
Regarding Recommendation No. 4 where you stated that your response will require further
analysis to be completed within 180 days, according to Penal Code 933.05, the Grand Jury will
need your response no later than May 4, 2003,which is six months from the date of the Report.
Again, we appreciate your response to Report No. 0301 and look forward to your follow-up
response by May 4, 2003.
Sincerely,
,4
LW
IRO , oreman
002-2003 Contra Costa County Grand Jury
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RECEIVED
cc: John Sweeten, County Administrator r`
MAR 52003
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