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CONSENT AGENDA <br />Indian River County <br />Inter -Office Memorandum <br />Office of Management and Budget <br />TO: Members of the Board of County Commissioners <br />DATE: December 10, 2018 <br />SUBJECT: Municipal Advisory Agreement — Termination of FirstSouthwest and Request to <br />Approve Agreement with Masterson Advisors LLC <br />FROM: Kristin Daniels - Director, Management & Budget <br />Description and Conditions <br />On January 9, 2016, the Board of County Commissioners approved an agreement with <br />FirstSouthwest to provide financial advisory services for the County. This agreement was for an <br />initial term of five (5) years, with ten (10) one-year renewals. Per Section 6 of the agreement, if <br />for any reason, personnel assigned is changed or replaced, the County has the right to <br />immediately terminate the agreement. Because Managing Director Edward D. Stull, Jr. has <br />moved from FirstSouthwest to Masterson Advisors LLC, it is requested that the current <br />agreement with FirstSouthwest be terminated, and a new agreement with Masterson Advisors <br />LLC be awarded. Edward D. Stull, Jr. has provided excellent service in the past including <br />numerous debt issues. At this time, staff recommends that the Board of County Commissioners <br />approve a new agreement with Masterson Advisors LLC. Like the prior agreement, the initial <br />term would be five (5) years, with ten (10) one-year renewals. <br />Funding <br />The cost of services under the proposed agreement is unchanged from the prior agreement. <br />Transaction fees under the agreement are shown in the table below. These costs are typically <br />paid from the proceeds of the bond issue upon closing of the transaction. The contract also <br />provides for additional services on an as -needed basis at an hourly rate. It should be noted that <br />the County has not been charged these fees during the term of the prior agreement. <br />Debt Transaction Fee <br />$1.20 per $1,000 <br />for the first <br />$20,000,000 of debt instruments, plus <br />$0.75 per $1,000 <br />for amounts <br />greater than $20,000,000 of debt <br />instruments <br />Minimum $15,000 per. transaction <br />Recommendation <br />Staff recommends that the Board of County Commissioners terminate the agreement with <br />FirstSouthwest and approve the agreement with Masterson Advisors LLC. <br />Attachment <br />Municipal Advisory Agreement <br />135 <br />