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****PRELIMINARY AND TENTATIVE FINDINGS**** suggestions with respect to structure, timing, and marketing of the bonds being sold.6 Bond counsel renders an opinion on the validity of the bond offering, the security for the offering, and whether and to what extent interest on the bonds is exempt from income and other taxation. The opinion of bond counsel provides assurance both to issuers and to investors who purchase the bonds that all legal and tax requirements relevant to the matters covered by the opinion are met.' The GFOA recommends that issuers selecting financial advisors, underwriters, and bond counsel employ a competitive process using a Request for Proposal (RFP) or Request for Qualifications (RFQ). A competitive process allows the issuer to compare the qualifications of proposers and to select the most qualified firm based on the scope of services and evaluation criteria outlined in the RFP or RFQ. A competitive process also provides objective assurance that the best services and interest rates are obtained at the lowest cost possible and demonstrates that marketing and procurement decisions are free of self-interest and personal or political influences. Furthermore, a competitive process reduces the opportunity for fraud and abuse and is fair to competing professionals." The GFOA's best practice further recommends that debt issuers review their relationships with bond professionals periodically. Financial Advisor Services. Contrary to the GFOA's best practice, the FMPA contracted with its current financial advisor since 1978 without utilizing effective competitive selection. In April 2007, the FMPA did undertake a financial advisor selection process by forming a Financial Advisor Committee (Committee) and issuing an RFQ for financial advisor services. Four firms responded and gave presentations in July 2007 to the Committee. Subsequently, the Committee sent the firms a list of questions and requested written responses. The existing financial advisor did not provide written responses and withdrew from the selection process. The Committee met on August 24, 2007, to select a financial advisor from the remaining three firms, and unanimously recommended a new financial advisor to be presented to the Board for approval. However, on September 27, 2007, the Board voted to table the RFQ and to issue a new RFQ to the initial four firms to be awarded solely on a retainer and hourly fee basis, retaining its existing financial advisor in the interim. On October 5, 2007, the Committee evaluated the retainer and hourly fees submitted by the four financial advisors and selected its existing financial advisor, although the rates were higher than the other three respondents, because the Committee members felt comfortable working with the financial advisor.9 At the December 6, 2007, Board meeting, the Committee recommendation was presented to the Board for approval. Despite FMPA staff recommendations to consider two of the other financial advisors, the Board voted to continue contracting with its existing financial advisor. In addition, the RFQ indicated that the resulting contract would be for a three-year period, with two optional one year extensions, for a total of five years; however, the contract signed with its existing financial advisor dated December 6, 2007, indicated that "the term of this contract is for so long as the parties continue to both desire to be bound by this contract." Accordingly, as of September 30, 2014, the FMPA has made no additional effort to competitively select a financial advisor. )= Bond Counsel Services. Contrary to the GFOA's best practice, the FMPA last contracted with its bond counsel in 1996 and had not, as of November 2014, issued an RFP or RFQ for bond counsel services. GF( )A Best Practice: Selecting and Afanaging Undenu'niten %a -Negotiated Bond Sales (2014) ' GFOA Best Practice: Selecting Bond Counsel (1998 and 2008) GFOA Best Practice: Selec/ing and Managing Municipal Adoirols (2014); GF( )A Best Practice: Selecting and Alanaging t 1ndenvriters %a - Negotiated Bond Sales (2014); GF( )A Best Practice: Selecting Bond Counsel (1998 and 2008) " The financial advisor provided services to four of the five member municipalities. 20 22