HomeMy WebLinkAboutMINUTES - 06152010 - C.43RECOMMENDATION(S):
APPROVE and AUTHORIZE the County Administrator, or designee, to execute a contract
extension with Bond Logistix, LLC to extend the contract term from June 30, 2010 to June
30, 2011 for arbitrage rebate consulting services.
FISCAL IMPACT:
There is no change to the Contract Payment Limit of $100,000. Fees associated with rebate
liability analysis are charged out proportionately to various County departments based on
their share of the funds from a particular bond issue.
BACKGROUND:
In May of 2008, the County issued a Request for Proposals (RFP) for Arbitrage Rebate
Consulting Services and Bond Logistx, LLC was selected to serve in this role. The RFP
stated that the contract term would be for two years with the option of a third. The County
wishes to exercise the option of a third year which requires this contract extension.
Arbitrage rebate calculation agent services are required to calculate rebate liability on
various County bond issues. Under federal tax law, this liability
APPROVE OTHER
RECOMMENDATION OF CNTY
ADMINISTRATOR
RECOMMENDATION OF BOARD
COMMITTEE
Action of Board On: 06/15/2010 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
Contact: Danielle
Fokkema, 925-335-1039
I hereby certify that this is a true and correct copy of an action taken and entered
on the minutes of the Board of Supervisors on the date shown.
ATTESTED: June 15, 2010
David J. Twa, County Administrator and Clerk of the Board of
Supervisors
By: , Deputy
cc:
C.43
To:Board of Supervisors
From:David Twa, County Administrator
Date:June 15, 2010
Contra
Costa
County
Subject:Arbitrage Rebate Consulting Services Contract Extension
BACKGROUND: (CONT'D)
is determined for each County tax-exempt bond issue based on the amount of interest
earnings that have accrued on bond proceeds over time. While the County is allowed to
keep interest earnings up to the rate of return of the initial bond offering, any earnings
above this bond rate must be rebated to the federal government every five years.
Since its inception in 1989, Bond Logistix LLC has grown to become the largest provider of
arbitrage rebate consulting services in the country, with a total of over 1,500 clients in every
U.S. State and Territory. Each year they prepare approximately 4,000 arbitrage analyses and
legal opinions.
Having served the County in the capacity of arbitrage rebate consultant since 1989, Bond
Logistix LLC is familiar with the County’s unique debt profile and the services that are
needed.