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CONSENT AGENDA <br />Indian River County 0 <br />Inter -Office Memorandum <br />Office of Management and Budget <br />TO: Members of the Board of County Commissioners <br />DATE: September 23, 2019 <br />SUBJECT: Municipal Advisory Agreement — Termination of Masterson Advisors LLC and <br />Request to Approve Agreement with Hilltop Securities Inc. <br />FROM: Kristin Daniels - Director, Management & Budget <br />Description and Conditions <br />On December 18, 2018, the Board of County Commissioners approved an agreement with <br />Masterson Advisors LLC to provide financial advisory services for the County. This agreement <br />was for an initial term of five (5) years, with ten (10) one-year renewals. Per Section 6 of the <br />agreement, if for any reason, personnel assigned is changed or replaced, the County has the <br />right to immediately terminate the agreement. Due to the unfortunate passing of Managing <br />Director Edward D. Stull, Jr., it is requested that the current agreement with Masterson Advisors <br />LLC be terminated, and a new agreement with Hilltop Securities Inc. be awarded. Staff has <br />worked with Director Joel Tindal of Hilltop Securities on past debt issuances, as Hilltop <br />Securities is the successor to First Southwest, the County's Municipal Advisor at that time. Staff <br />recommends that the Board of County Commissioners approve a new agreement with Hilltop <br />Securities Inc. Following the same terms as the prior agreement, the initial term would be five <br />(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 />Masterson Advisors LLC and approve the agreement with Hilltop Securities Inc. <br />Attachment <br />Municipal Advisory Agreement <br />71 <br />