Agenda

Return

C. 47

To:	Board of Supervisors
From:	David Twa, County Administrator
Date:	June 5, 2018

Contra

Costa

County

Subject:

Independent Registered Municipal Financial Advisor Contract

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 06/05/2018

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Diane Burgis, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:

Timothy Ewell, Chief Assistant County Administrator (925) 335-1036

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: June 5, 2018
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

APPROVE and AUTHORIZE the County Administrator, or designee, to execute a contract with Montague DeRose & Associates, LLC, in an amount not to exceed $350,000 for Independent Registered Municipal Financial Advisor services for the period of July 1, 2018 through June 30, 2021.

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. Other special bond related projects are billed on an hourly basis and charged to occupants of the property for which the bond was issued. Non-issuance and Special Project services are billed hourly and will be funded by General Fund debt management monies.

CONSEQUENCE OF NEGATIVE ACTION:

The County would not have the necessary expertise of an Independent Registered Municipal Financial Advisor.

BACKGROUND:

On March 2, 2018, 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, Montague DeRose and Associates, LLC (MDA) was unanimously recommended to provide IRMA services to the County for the next contract period. The contract terms specified in the RFP indicated an initial contract agreement through June 30, 2021 with a two year renewal option.

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 Natalie Perkins, Manging Director, who will be responsible for the overall performance of MDA fulfilling the requirements of the County. Ms. Perkins has been with MDA since 2009 following five years of experience as a public finance investment banker at Morgan Stanley. 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.

As a result of the aforementioned RFP, the Department of Conservation and Development has also selected a firm, Fieldman Rolapp and Associates, to provide Assessment and Mello Roos District IRMA services. Retaining these services will be on a separate contract through the Department of Conservation and Development. The Successor Agency will also have a separate contract with Montague DeRose for Refunding Tax Allocation Bonds.