Agenda

Return

C. 49

To:	Board of Supervisors
From:	Russell Watts, Treasurer-Tax Collector
Date:	January 14, 2014

Contra

Costa

County

Subject:

Financial services agreement with Morgan Stanley Smith Barney LLC

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 01/14/2014

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Mary N. Piepho, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:

Brice Bins, 925 957-2848

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: January 14, 2014
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

APPROVE and AUTHORIZE the County Treasurer to enter into a contract for financial services with Morgan Stanley Smith Barney LLC (“Morgan Stanley”), including indemnification of Morgan Stanley, for the purpose of managing the investment of bond proceeds for the Contra Costa County Community College District.

FISCAL IMPACT:

Service fees and costs will be paid for out of the bond proceeds of the Contra Costa County Community College District.

BACKGROUND:

The County Treasurer manages and invests the funds of County agencies, including 21 special districts, 19 school districts and one community college district. The Contra Costa County Community College District has requested that County Treasurer permit its bond proceeds to be invested outside of the County investment pool. Specifically, it has requested that the Treasurer authorize the investment of its bond proceeds with Morgan Stanley and associated asset managers.

Pursuant to the financial services agreement between Morgan Stanley and the County, Morgan Stanley will select asset managers and provide consulting, custody, brokerage and administrative services for the bond proceeds in exchange for a fee.

CONSEQUENCE OF NEGATIVE ACTION:

If the agreement is not authorized, bond proceeds for the Contra Costa County Community College District will remain in the County investment pool.

CHILDREN'S IMPACT STATEMENT:

Not applicable.