December 3, 2003
BOARD MEETING DATE:
December 16, 2003
Honorable Board of Supervisors
Paul T. Scannell, Assistant County Manager
Thomas F. Casey III, County Counsel
Resolution Authorizing Execution of Contract with Orrick, Herrington & Sutcliff, and California Financial Services
Adopt a resolution waiving the Request for Proposal process and authorizing execution of a contract with Orrick, Herrington & Sutcliff, LLP and California Financial Services
In 1993 the County issued $68,137,797 Lease Revenue Bonds to refinance the 1991 $63,539,741 Certificates of Participation that were issued to finance the Maguire jail and the County Parking structure. A number of the 1993 bonds, maturities from July 1, 2005 through and including July 1, 2008, are now capable of being refunded at a savings to the County, Henderson Capital Partners did the analysis and brought the proposed transaction to the County.
Legal services and financial advisor services will be necessary in connection with the issuance and payment of bonds. Orrick, Herrington & Sutcliff has provided the County with excellent legal services in connection with various funding projects, including the Certificates of Participation for construction of the Maguire jail in 1991; Lease Revenue Bond refunding of that transaction in 1993; the Lease Revenue Bond for the North County Satellite Clinic in 1993; the 1994 Health Center financing;
the 1995 financing for the 2500 Middlefield Office for the Human Services Agency and the new courtrooms on the fourth floor; the 1997 Colma Creek Flood Control Zone; the 1997 Lease Revenue Bonds for 555 County Center, the 1999 refinancing and the 2001 Series A and Series B bonds for the financing of the communications project and the Crime Lab and the 2003 Youth Services Center financing. California Financial Services (CFS) has also been instrumental in these prior financings with its provision of financial consulting services related to the bonds. In addition, CFS has provided payment services for the construction projects and monthly updates to track construction progress; the cumulative reports on all payments for the annual audit of the bond issuance as well as assistance on the County's annual financial statements. We have worked very successfully with these firms in connection with the County's bond issuances. It is recommended that we contract with Orrick, Herrington & Sutcliff and with California Financial Services to provide such services for the current financing and waive the Request for Proposal process.
Government decisions are based on careful consideration of future impact, rather than temporary relief of immediate gain.
The maximum amount payable under the contract is $35,000 to Orrick, Herrington & Sutcliff and $35,000 to California Financial Services. Payment will be made from the proceeds of the bonds.