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HomeMy WebLinkAboutMINUTES - 08011989 - 2.1 AV THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Order on August 1, 1989 , by the following vote: AYES: Supervisors Powers, Fanden, Schroder, McPeak, Torlakson NOES: None ABSENT: None ABSTAIN: None ------------------------------------------------------------------ ------------------------------------------------------------------ SUBJECT: Hospital Replacement Project Consultants The Board received the attached report dated July 13 , 1989 from the County Administrator recommending appointment of the underwriter and bond counsel for the Merrithew Hospital replacement project. Board members discussed the matter and requested further information relative to the ranking process used in selection of the consultants, public finance experience both local and in other areas and a comprehensive analysis of all firms considered. Therefore, IT IS BY THE BOARD ORDERED that consideration of the attached report is CONTINUED to August 15, 1989 . IT IS FURTHER ORDERED that the County Administrator is REQUESTED to provide to the Board more comprehensive information on selection of the consultants. cc: County Administrator Health Services Director 1 hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of SupeMeors an the date shown. ATTESTED: /. /ft? PHIL BAT OR,Clerk of the Board Of SupeMsas and County Administrator TO: . - BOARD OF SUPERVISORS Contra FROM: Phil Batchelor, County Administrator Costa ot n. 15 m ce County DATE: July 13 , 1989 TA CpUN� SUBJECT: Appointment of Underwriter and Bond Counsel for Merrithew Hospital Replacement Project SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATIONS 1 . Approve the selection of The First Boston Corporation as Senior Manager and Bank of America Capital Markets as Co-Manager for the Financial-Underwriter consultant for the Hospital Replacement Project. 2. Approve the selection of Orrick, Herrington & Sutcliffe with Pamela S. Jue, Esq. as Co-Bond Counsel consultants for the Hospital Replacement Project. 3 . Direct the County Administrator to negotiate appropriate agreements with the selected firms. If a satisfactory agreement cannot be reached with any of the firms, then undertake negotiations with the next ranked firm from the list interviewed and ranked by the Selection Committee. 4. Direct that consideration be given to the selection and addition of a third co-manager with MBE/WBE certification for the underwriting portion of the consulting services when and if the project results in an approved bond issue. 5. Approve First Boston' s designation of the law firm of Nossaman, Guthner, Knox and Elliot as Underwriters ' Counsel. CONTINUED ON ATTACHMENT: X YES SIGNATURE: /� 0ec-P -RECOMMENDATION OF COUNTY ADMINISTRATOR -RECOMMENDATION OF BOARD COMMITTEE _APPROVE _OTHER SIGNATURE(S): CTION OF BOARD ON July 25, 1989 APPROVED AS RECOMMENDED _ OTHER VOTE OF SUPERVISORS 1 HE Y CERTIFY THAT THIS IS A TRUE UNANIMOUS(ABSENT ) AND COR T COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED HE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON DATE SHOWN. ATTESTED PHIL BATCHELOR,CLERK O E BOARD OF SUPERVISORS AND COUNTY ADMI TRATOR M382 (10/88) BY PUTY -2- FINANCIAL IMPACT The fee for Underwriter services is on a contingency basis and is paid from the proceeds of a bond issue when and if the project reaches that stage. . Funds necessary for agreements negotiated as a result of this Board action will- come from future bond proceeds or from funds available to the Hospital Enterprise Fund. BACKGROUND In accordance with Board direction, requests for proposals were widely distributed for the Underwriter and Bond Counsel consulting services. Thirty-nine requests were sent out for Underwriter with 17 responses and 18 requests for Bond Counsel with nine responses. A Review Committee screened the responses to four firms for each of the tasks. The selected firms were interviewed on June 8, 1989 and ranked in order based upon the qualifications, knowledge of the issues and capabilities of the individuals to be assigned to the County project. The Selection Committee was comprised of the Assistant County Administrator-Finance, a Deputy County Administrator, the Director of Health Services, the Executive Director of Merrithew Hospital, the Hospital Finance Director, the Auditor-Controller, the Treasurer-Tax Collector, the County Redevelopment Director, a Senior Leasing Agent from General Services and a Management Analyst from the County Administrators ' Office. The Committee reached a unanimous decision on the recommended consulting team. All of the firms interviewed were well qualified to perform the tasks necessary for a successful project. . The Selection Committee was impressed with the quality and experience of the firms and individuals interviewed. The recommended firms have been reviewed by the County d Affirmative Action Office. The Bond Counsel, Co-Counsel arrangement meets the MBE/WBE policy goals. The Underwriter firms interviewed are not certified as MBE/WBE firms. The Affirmative Action Office has recommended adding a firm so qualified, at the time additional assistance can be used in the marketing of an approved bond issue. The staff will work with the appointed Underwriter to select a well qualified MBE/WBE firm to add to the team at that time. The selected Underwriter, First Boston, has asked that the County concur in the appointment of the law firm of Nossaman, Guthner, Knox and Elliot to serve as the Underwriters ' Counsel to advise the County and the Underwriter on technical issues related to the financing. The firm is well respected in the field and will be a valuable asset to the project team. cc: Health Services' General Services Auditor-Controller Treasurer-Tax Collector County Counsel