COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Health System

 

DATE:

May 14, 2010

BOARD MEETING DATE:

June 22, 2010

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

 

TO:

Honorable Board of Supervisors

FROM:

Jean S. Fraser, Chief, Health System
Lisa Mancini, Director, Aging and Adult Services

   

SUBJECT:

Agreement with The Brauner Company

 

RECOMMENDATION:

Adopt a Resolution:

1)

Authorizing the President of the Board to execute an Agreement with The Brauner Company for financial advisor services for conserved clients for the term July 1, 2010 through June 30, 2013, in the amount of $750,000; and

   

2)

Authorizing the Chief of the Health System or 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.

   

BACKGROUND:

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.

 

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.

 

DISCUSSION:

The Bruaner Company participated in and was selected through three consecutive Request for Proposals (RFP) processes to provide financial advisor services for AAS Public Guardian clients since 1999. Experience with The Brauner Company over the last decade has been excellent. This Contractor has developed a superior understanding of conservatorship needs and requirements and has earned an exceptional reputation with the Public Guardian’s Office. A fourth RFP process for financial advisor services for the term July 1, 2010 through June 30, 2013, in which The Brauner Company was the sole agency to submit a proposal, was completed in February 2010. 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.

 

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 $15 million.

 

Risk Management has reviewed and approved this Agreement. County Counsel has reviewed and approved the Resolution and Agreement as to form. 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

 

Services provided by The Brauner Company contribute to the Shared Vision 2025 outcome of a Healthy Community by assisting conservators to optimize management of Public Guardian clients’ assets. It is anticipated that 99% of Public Guardian cases will result in no fiduciary claims.

 

Performance Measure:

Measure

FY 2009-10
Estimate

FY 2010-11
Projected

Percentage of cases managed by the Public Guardian in which no fiduciary claims were filed against the Aging and Adult Services Division

99%

99%

 

FISCAL IMPACT:

The term of the Agreement with The Brauner Company is July 1, 2010 through June 30, 2013. The amount of the Agreement is not to exceed $750,000 for the three-year term. Funds for this Agreement are reimbursed directly from conserved clients’ estate assets. There is no Net County Cost associated with this action.

 

Exhibit A

Request for Proposals (RFP) Matrix

1.

General Description of RFP

Financial Advisor Services

2.

List key evaluation criteria

    Prior experience

    Demonstrated competence in performing the services required

    Ability to document services, provide reports, and maintain records

    Flexibility and variety of investments

3.

Where advertised

Daily Journal: once on a weekday and once on a weekend

4.

In addition to any advertisement, list others to whom RFP was sent

None

5.

Total number sent to prospective proposers

2

6.

Number of proposals received

1

7.

Who evaluated the proposals

Controller’s Office

County Manager’s Office

Health System Administration

8.

In alphabetical order, names of proposers (or finalists, if applicable) and location

Brauner Company, The, Redwood City, CA