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HomeMy WebLinkAboutMINUTES - 04021991 - 2.2 �V\ TO: BOARD OF SUPERVISORS Contra vE L L �. FROM: Phil Batchelor, County Administrator Costa Count April 2, 1991 ^;::. Y DATE: SUBJECT: Bond Counsel Services, 1991 Tax and Revenue Anticipation Note Borrowing Program SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATIONS: 1 . Approve the list of -qualified bond counsel firms responding to the Request for Proposals authorized by the Board on March 5, 1991. 2. Authorize the County Administrator to execute an agreement with Orrick, Herrington & Sutcliffe for bond counsel services. 3 . Determine that Orrick, Herrington & Sutcliffe meets the requirements of the County' s Minority & Women Business Enterprise Contract Compliance Program for the Bond Counsel Services, 1991 Tax and Revenue Anticipation Note Borrowing Program. FINANCIAL IMPACTS: The cost of services for the bond counsel has been determined by comparison of proposals received in a competitive process. The recommended firm proposed the lowest base fee for the service. Costs for services are payable upon successful completion of the note borrowing program and are paid as part of the cost of issuance for the issue. CONTINUED ON ATTACHMENT: x YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON April 2, 1991 APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS -�1 1 HEREBY CERTIFY THAT THIS IS A TRUE Y 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 APR 2 1991 Treasurer- Tax Collector PHIL BATCHELOR,CLERK OF THE BOARD OF Auditor-Controller SUPERVISORS AND COUNTY ADMINISTRATOR Redevelopment Director County Counsel BY ,DEPUTY M382 (10/88) -2- BACKGROUND• The Board, on March 5 , 1991 authorized the County Administrator to release a request for proposals for bond counsel services to a list of firms with the most experience in note borrowing programs. Seven firms where contacted and five firms responded. The responding firms are as follows: 1 . Orrick Herrington & Sutcliffe 2 . Brown & Wood 3 . Jones Hall Hill & White 4 . O'Melveny & Meyers 5. Alexander, Millner & McGee The firms of Nossaman, Guthner, Knox & Elliott and Pamela S. Jue did not respond to the request for proposals. We believe all five of the responding firms to be well qualified. All have offices in San Francisco. The attorneys proposed to be assigned to the issue are all well experienced and respected in their field. A comparison of the fee proposals and experience with Tax and Revenue Anticipation Note issues during 1990 for California counties provides the following ranking: Fee 1990 County Counsel Name Basic Expenses TAN Experience Orrick Herrington $13 ,750 $1 , 250 7 Jones Hall 15,000 incl. 2 O'Melveny 15,000 1 , 000 4 Brown & Wood 17,500 2 , 500 3 Alexander, Millner 19 ,000 2, 500 1 The fee proposals are very close among the three firms of Orrick, Jones Hall and O'Melveny. The comparison of County Tax and Revenue Anticipation Note issues experience for 1990 indicates that the Orrick firm completed issues for seven major California counties as well as the State of California. The other firms provided services to fewer counties, many of which were smaller, rural counties. Each of the firms completed issues for a number of school districts and cities. In view of the fact that the fee for services is the same or less than other firms, it is our recommendation to continue to work with the Orrick attorneys who have provided excellent, timely assistance in the past. The open competitive process using the assistance of the Financial Consultant has resulted in very competitive fee proposals from the best qualified firms available.