Agenda

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C. 66

To:	Successor to the Contra Costa County Redevelopment Agency
From:	John Kopchik, Director, Conservation & Development Department
Date:	March 3, 2015

Contra

Costa

County

Subject:

Independent Registered Municipal Financial Advisor Contract

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 03/03/2015

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

ABSENT:

Federal D. Glover, District V Supervisor

Contact:

Kristen Lackey, 4-7888

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: March 3, 2015
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

APPROVE and AUTHORIZE the Conservation and Development Director, or designee, to execute a contract with Montague DeRose & Associates, LLC, in an amount not to exceed $85,000 for Independent Registered Municipal Financial Advisor services for the period March 1, 2015 through June 30, 2016.

FISCAL IMPACT:

The cost of financial advisory services is covered in the cost of issuance included in each bond issue. Fees are negotiated for each borrowing transaction based upon the size and complexity of the transaction. Non-issuance and Special Project services are billed hourly and will be funded by Redevelopment Property Tax Trust Fund monies.

BACKGROUND:

On July 18, 2014, the County issued a Request for Proposals (RFP) for Independent Registered Municipal Financial Advisor (IRMA) services. After review by members of the County's Debt Affordability Advisory Committee and firm interviews, Montague DeRose and Associates, LLC (MDA) was unanimously recommended to provide IRMA services to the County and the Successor Agency for the next contract period. The contract terms specified in the RFP indicated an initial contract agreement through June 30, 2016 with a two year renewal option. Tax Allocation Bonds (TABs) issued by the former Contra Costa County Redevelopment Agency were included in the RFP. The Successor Agency to the former Redevelopment Agency is responsible for the ongoing management of the outstanding TABs. Because the Successor Agency is a separate entity from the County, a separate contract with MDA is required to provide advisory services for TABs.

MDA, a small business financial advisory firm, has nearly 20 years of experience assisting municipal issuers by advising on the sale of short and longer-term issues. The County team will be led by Frank Perdue, Principal, who will be responsible for the overall performance of MDA fulfilling the requirement of the County. Mr. Perdue has been with MDA since 2007 following 25 years of experience in financial strategy development, capital allocation and valuation. MDA is fully compliant with all Securities and Exchange Commission (SEC) and the Municipal Securities Rulemaking Board (MSRB) regulations applicable to municipal financial advisors and is registered with both the SEC and the MSRB as an IRMA.

CONSEQUENCE OF NEGATIVE ACTION:

The County, in its capacity as Successor Agency to the former Contra Costa County Redevelopment Agency, would not have the necessary expertise of an Independent Registered Municipal Financial Advisor.

CHILDREN'S IMPACT STATEMENT:

Not applicable.