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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
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HEALTH DEPARTMENT
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DATE:
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July 19, 2007
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BOARD MEETING DATE:
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August 7, 2007
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SPECIAL NOTICE/HEARING:
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None
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VOTE REQUIRED:
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Majority
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TO:
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Honorable Board of Supervisors
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FROM:
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Charlene A. Silva, Director, Health Department
Lisa Mancini, Director, Aging and Adult Services
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SUBJECT:
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Agreement with The Brauner Company
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RECOMMENDATION:
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Adopt a resolution:
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1.
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Authorizing the President of the Board of Supervisors to execute an Agreement with The Brauner Company for financial advisor services for conserved clients for the term July 1, 2007 through June 30, 2010 in the amount of $750,000; and
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2.
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Authorizing the Director of Health or the Director's designee to execute contract amendments which modify the County's maximum fiscal obligation by no more than $25,000 (in aggregate) and/or modify the contract term and/or services so long as the modified term or services is/are within the current or revised fiscal provisions.
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VISION ALIGNMENT:
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Commitment: Ensure basic health and safety for all.
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Goal 8: Help vulnerable people—the aged, disabled, mentally ill, at-risk youth and others—achieve a better quality of life.
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Services provided by The Brauner Company contribute to this commitment and goal by assisting conservators to optimize management of Public Guardian clients’ assets.
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Performance Measure:
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Measure
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FY 2006-07
Estimated
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FY 2007-08
Projected
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Percent of cases managed by the Public Guardian in which no fiduciary claims were filed against the Aging and Adult Services Division
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99%
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99%
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BACKGROUND:
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The Aging and Adult Services (AAS) Public Guardian/Conservatorship Program serves frail elderly, physically disabled and mentally disabled residents who are substantially unable to provide for their own personal needs of health, food, clothing, or shelter and/or are unable to manage their financial resources or resist fraud or undue influence.
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The Public Guardian, acting under the authority and direction of the Superior Court, may be appointed for the person, for the estate, or for both. The general duties of a Conservator of the Person include arranging for the person’s care and protection, deciding where a person will live, and making arrangements for health care, meals, clothing, personal care, and transportation. The general duties of a Conservator of the Estate include managing the person’s finances, marshalling and protecting assets, collecting all income due to the person, paying all just debts, making investments as appropriate, and representing or arranging representation in all legal matters.
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DISCUSSION:
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The Brauner Company participated in and was selected through a Request for Proposals process completed in May 2007 for financial advisor services for the term July 1, 2007 through June 30, 2010. The Brauner Company has provided financial advisor services for the Public Guardian Program in previous years. Financial advisor services include a wide range of investment options, information on cost basis of assets for income tax purposes, reports for court and for monitoring purposes, and consultation on selected cases as part of a client’s Estate Plan.
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In consideration of the services provided as described above and according to local court-established commissions for sales, The Brauner Company will be paid directly from clients’ portfolios a fee based on an annual percentage rate of one percent (1%) of the value of assets under management. The fee is calculated monthly and is deducted directly from the clients’ accounts. The average monthly asset amount currently under management is $19 million.
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The Agreement and Resolution have been reviewed and approved by County Counsel and Risk Management. The contractor has assured compliance with the County's Contractor Employee Jury Service Ordinance, as well as all other contract provisions that are required by County ordinance and administrative memoranda, including but not limited to insurance, hold harmless, non-discrimination and equal benefits.
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FISCAL IMPACT:
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The term of the Agreement with The Brauner Company is July 1, 2007 through June 30, 2010. The total amount of this Agreement is $750,000 or $250,000 annually. Funds for this Agreement are reimbursed directly from clients’ personal assets. There is no Net County Cost.
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