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AUG. 51991 860K 4 7 _R4GE 120 <br />FISCAL AGENT SERVICES <br />ADMINISTRATOR NELSON REPORTED THAT HE REVIEWED THE DESIRA— <br />BILITY OF HAVING A FISCAL AGENT FOR THE COUNTY WITH THE INTERGOVERN— <br />MENTAL COORDINATOR AND COMMISSIONER SCURLOCK AND WISHED TO SUBMIT <br />THE RECOMMENDATIONS IN THE FOLLOWING MEMO: <br />TO: The Honorable Members of DATE: July 29, 1981 FILE: <br />the Board of County Commissioners <br />SUBJECT: Fiscal Agent Services <br />FROM: NeiN. elson REFERENCES: <br />County Administrator <br />DESCRIPTION AND CONDITIONS <br />During the past few years the County has issued several bond issues for <br />various capital projects. For each of these issues, a fi=rm was selected to <br />provide financial advisory services through the sale of the bonds. Basically, <br />each issue was handled as a separate matter with several firms participating <br />on different issues. <br />During the next few years, the Administration forsees the possibility of additional <br />bond financing particularly for utilities and road construction projects. <br />ALTERNATIVES AND ANALYSIS <br />The County's past methods of securing financial advisory services on an <br />individual project basis, and of allowing the financial advisor to negotiate <br />the purchase of the bond, in some cases, has proven less than totally <br />satisfactory. <br />Alternatives to past practice include competitive selection of either "fiscal <br />agent" or investment banking" services for: <br />a) each bond issue, <br />b) on an annual basis, or <br />c) to serve at the pleasure of the Board. <br />The Administration believes a potential conflict of interest existing with an <br />"investment banking" agreement. Under this type agreement the County's advisor <br />negotiates with the County to purchase the bonds. The County must then either trust <br />that the investment banker is acting in the Corm ty's best interests, or secure <br />independent advice regarding the merits of the "ba.hkers" offer. <br />Under a "fiscal agent" agreement the County's advisor handles all of the advice <br />and details prior to a bond sale, and then coordinates a competitive bid sale of <br />the bonds, continuing to advise the County regarding the merit of bids received. <br />In both the "investment banker" and "fiscal -agent" agreements, the advisor <br />handles all details preparatory to bond closing.- <br />