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r � r CONTINUATION OF ACTUARIAL SERVICES FOR FY -96/97 - COOPERS The Board reviewed the following memo dated 2/4/97: TO: James E. Chandler, County Administrator THRU: Ron Baker, Personnel Director FROM: Beth Jordan, Risk ManagerT DATE: 4 February 1997 SUBJECT: Actuarial Services for FY 96-97 Staff requests consideration of the following information at the February 11, 1997, regular -meeting of the Board of County Commissioners. Background Since the inception of the modified self-insurance program beginning with FY 88-89, the County has completed an annual actuarial study through Coopers & Lybrand (Coopers). The actuarial study confirms the financial soundness of the self-funded portion of the program, and provides a valuable tool for the County's overall budget process. Analysis In the past, Coopers performed the actuarial services as part of the County's overall annual audit. With the selection of Berger Hams Toombs Elam & McAlpin, now Cotherman Harris and Associates, staff confirmed with Ross Cotherman that actuarial services _are not performed by that firm. Coopers, however, continues to be available to perform this service and staff recommends that the Board authorize them to proceed with the annual update. The annual actuarial study provides the County with the following information. It separately addresses general liability, automobile liability and workers' compensation self-insured coverages to project ultimate losses by fiscal year, accrued liability as of 12/31/96 including case reserves, late reported claim reserves and case development reserves; funding recommendations as of 12/31/96 and projected as of 09/30/97 for use in determining the appropriate balances in the various funds, giving consideration to excess insurance and Special Disability Trust Fund recoveries; prospective funding recommendations for FY 97-98; cash flow estimates for claims payments; determination of an appropriate margin for adverse development; and prospective expected loss rates. The study considers the protections afforded through Florida's sovereign immunity statute. Each year, the study builds upon past loss data, which for the past seven (7) years has been collected and analyzed by Coopers. Coopers is knowledgeable of the County's operations and its exposures. In FY 95-96, the cost to perform the service was over $3,000.00 less than in previous years due to the experience with the project, and costs this year have been projected at a cost not to exceed $12,500.00. Recommendation Staff recommends that the Board waive the request for proposal process and approve continuation of the actuarial relationship with Coopers at a cost not to exceed $12,500.00. ON MOTION by Commissioner Adams, SECONDED by Commissioner Macht, the Board unanimously waived the RFP process and approved the continuation of actuarial services with Coopers & Lybrand at a cost not to exceed $12,500, as recommended by staff. FEBRUARY 11, 1997 37 fs(iK Fr,a-