HomeMy WebLinkAboutMINUTES - 09132011 - C.71RECOMMENDATION(S):
APPROVE and AUTHORIZE the County Administrator, or designee, to execute a contract
with BLX Group, LLC in an amount not to exceed $100,000 for arbitrage rebate compliance
services for the period of July 1, 2011 through June 30, 2014.
FISCAL IMPACT:
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:
Arbitrage rebate calculation agent services are required to calculate rebate liability on
various County bond issues. Under federal tax law, this liability 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.
On May
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 09/13/2011 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I
Supervisor
Gayle B. Uilkema, District II
Supervisor
Mary N. Piepho, District III
Supervisor
Karen Mitchoff, District IV
Supervisor
Federal D. Glover, District V
Supervisor
Contact: Lisa Driscoll,
925-335-1023
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: September 13, 2011
David Twa, County Administrator and Clerk of the Board of Supervisors
By: June McHuen, Deputy
cc:
C. 71
To:Board of Supervisors
From:David Twa, County Administrator
Date:September 13, 2011
Contra
Costa
County
Subject:Arbitrage Rebate Compliance Services Contract
BACKGROUND: (CONT'D)
2, 2011, the County issued a Request for Proposals (RFP) for Arbitrage Rebate Compliance
Services. After review by committee and firm interviews, BLX Group, LLC was selected.
Having served the County in the capacity of arbitrage rebate consultant since 1989, BLX
Group, LLC is familiar with the County’s unique debt profile and the services that are
needed.
Since its inception in 1989, BLX Group, 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.
CONSEQUENCE OF NEGATIVE ACTION:
The County would not have the expertise to calculate rebate liability on County bond issues.
CHILDREN'S IMPACT STATEMENT:
None.