HomeMy WebLinkAboutMINUTES - 02271990 - 2.3 �. 3
ATO: BOARD OF SUPERVISORS Contra
L
FROM: Phil Batchelor, County Administrator \ ' Costa
County
DATE: February 27, 1990 °r q.:eouA
SUBJECT:
SOLE SOURCE CONTRACTOR FOR 90-91 SHORT-TERM BORROWING PROGRAM
SPECIFIC REOUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION
1. Continue the short-term borrowing program for 1990-1991 using the
same financial and legal consulting team that has been
consistently effective in obtaining the highest ratings at the
lowest cost for the County' s borrowing programs.
2. Direct the County Administrator to immediately start the process
for a complete RFP process for the 1991-1992 short-term note
process.
FINANCIAL IMPLICATION
Approval of the recommendation will allow for the most efficient
process for the 90-91 borrowing program, resulting in savings of staff
time and financial advisor fee.
BACKGROUND
Earlier this year, your Board approved a process whereby the selection
of consultants on capital issues would receive more committee and
Board review than they have in the past. Although the short-term
borrowing program does not fall within that definition of capital
issues, our office intends to try to follow the Board' s guidelines for
short-term notes as well.
For this year' s borrowing program ( 90-91 budget) , it is recommended
that the same financial advisor and bond counsel as in previous
years be used.
CONTINUED ON ATTACHMENT: -: YES SIGNATURE: P[�2�
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
x UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
CC: County- Administrator ATTESTED
Auditor-Controller PHIL BATCHELOR,CLERK OFT E BOARD OF
TreaFurer Tax Collector SUPERVISORS AND COUNTY ADMINISTRATOR
BY
M382 (10/88) DEPUTY
-2-
The reasons for this recommendation are:
1. Preliminary discussions on the short-term borrowing program begin
in March, and there is not sufficient time to develop either a
pool of qualified providers or go through a competitive bid
process in time to issue notes at the most favorable time.
2. Bank of America and Orrick Herrington have extensive information
and background to bring the borrowing program issue to market
with a minimum amount of time expended by the company and the
County.
3 . Both companies have a high degree of credibility with rating
agencies. This reduces the time necessary to gather and provide
information to the rating agencies. The continuity of the team
appearing before the rating agencies enhances the acceptability
by these agencies.
4. These companies are co-underwriter and co-bond counsel for the
County' s hospital project. This is likely to be a major item of
interest for the agencies this year. Use of Bank of America for
the short-term borrowing program provides extensive experience in
that program as well as in-depth knowledge of the County Hospital
project.
For these reasons, it is recommended that the County staff be
authorized to use Bank of America for the 90-91 short-term borrowing
program. This recommendation is supported by the Treasurer-Tax
Collector, Auditor-Controller and County Administrator.