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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
County Manager’s Office
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DATE:
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December 4, 2009
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BOARD MEETING DATE:
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December 15, 2009
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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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David S. Boesch, County Manager
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SUBJECT:
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Resolution Authorizing Agreement with California Financial Services for Financial Advisory Services related to 2009 Lease Revenue Refunding Bonds
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RECOMMENDATION:
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Adopt a resolution authorizing the President of the Board to execute an agreement with California Financial Services for the provision of financial advisory services related to the 2009 Lease Revenue Refunding Bonds, in the maximum amount of $108,000, for the term of October 1, 2009 through January 1, 2010.
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BACKGROUND:
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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 lease revenue refunding 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.
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DISCUSSION:
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Mark Epstein of California Financial Services is particularly well qualified in the areas of bond financing and has done considerable work as Financial Advisor for the County, the Authority and other public entities. Mr. Epstein has provided services to the County in the past, with excellent results. His expertise has been invaluable in helping the County reduce ongoing debt obligations 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.
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The fee of $108,000, which includes out-of-pocket expenses, will be due and payable upon the delivery of and receipt of payment for the bonds. The term of the Agreement is through January 1, 2010.
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Government Code Section 31000 provides that the County may contact with independent contractors for the furnishing of such services.
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The Agreement and Resolution have been reviewed and approved by County Counsel. The insurance has been reviewed and approved by Risk Management. California Financial Services 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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Authorizing this Agreement will contribute to the Shared Vision 2025 outcome of a collaborative community by supporting fiscal accountability.
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FISCAL IMPACT:
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The maximum amount to be paid out under this contract is $108,000. Any amounts paid will be paid out of the Bond proceeds. There is no additional Net County Cost.
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