COUNTY OF SAN MATEO

Inter-Departmental Correspondence

COUNTY COUNSEL

DATE:

November 3, 2009

BOARD MEETING DATE:

November 10, 2009

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

County Counsel

SUBJECT:

Resolution Authorizing Agreement with Orrick, Herrington & Sutcliffe LLP, for Legal Services Related to 2009 Lease Revenue Refunding Bonds

RECOMMENDATION:

Adopt a resolution authorizing and directing the President of the Board of Supervisors to execute an agreement with the law firm of Orrick, Herrington & Sutcliffe LLP, for Legal Services Related to the 2009 Lease Revenue Refunding Bonds, in the maximum amount of $200,000, for a term through January 1, 2010.

BACKGROUND:

The County and the Community Development Commission are the members of the San Mateo County Joint Powers Financing Authority (the “Authority”). The Authority is preparing to issue refunding lease revenue bonds (the Bonds”) for the refunding of all or a portion of the Authority’s Lease Revenue Bonds 1997 Series A and Lease Revenue Bonds 1999 Refunding Series A, in an aggregate principal amount not to Exceed $155 million. The issuance of the Bonds presents unique legal and financial issues for both the Authority and the County requiring specific expertise in bond, financing and tax law.

DISCUSSION:

Mary Collins of the law firm of Orrick, Herrington & Sutcliffe LLP, is particularly well qualified in the areas of bond law, and has done considerable work as bond counsel for the County, the Authority and other public entities. Ms. Collins has provided services to the County in the past, with excellent results. Her expertise has been invaluable in helping the County to properly prepare the required documents and maximize the monies made available by the issuance of the bonds and any savings that might be available to the County and the Authority.

Amounts will be reimbursed at an hourly rate upon presentation of an invoice, payable solely upon the delivery and receipt of payment for the Bonds upon their sale. Ms. Collins bills at $740.00 per hour, which is a very competitive rate for the Bay Area. Her associate, who will do some work at her direction, bills at a rate of $335.00 per hour. The term of the agreement is through January 1, 2010, and the contract has a maximum amount payable of $200,000, based upon the issuance of Bonds not to exceed $155,000,000, plus out of pocket expenses currently estimated to be in the range of $3,000. In is anticipated, however, that the actual amount that will be paid will be considerably less.

County Ordinance Code Section 2.14.040 provides that the Board of Supervisors has the sole authority to retain outside counsel. Authorizing this contract will contribute to the Shared Vision 2025 outcome of collaborative community by supporting fiscal accountability.

FISCAL IMPACT:

The maximum amount to be paid out under this contract is $200,000, plus expenses. It is estimated that the actual amount to be paid out will be considerably less. Any amounts paid will be paid out of the Bond proceeds.