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Committee considers bids for district finances
By Jonathan Munson
Issue date: 4/20/07 Section: News
Originally published: 4/19/07 at 6:45 PM CSTLast update: 4/19/07 at 6:45 PM CST
The Policy and Long Range Planning; Audit, Budget and Finance; and Building, Grounds and Site Selection Committees met before the district's board of trustees Tuesday.
After voting to approve their March 13 meeting minutes, the Audit, Budget and Finance Committee brought three agenda items to the board, beginning with a presentation concerning the district's budget and finances.
To minimize reinvestment, interest and credit risks when investing $275 million bond proceeds, the committee recommended that the board approve for Hypo Public Finance Bank to act as provider, and U.S. Bank N.A. as the custodian, for a Flexible Repurchase Agreement.
Four bids were received March 19, Hypo Public Finance Bank's bid being the highest at a yield rate of 4.72 percent. The other three bids ranged from a yield rate of 4.6250 percent and 4.7030 percent. A bidding agent fee of $33,000 will be paid by Hypo Public Finance Bank to First Southwest Company, an expense which will reach the district as a somewhat lower fixed earnings rate.
The committee also recommended that the board award the Triennial Contract for Insurance Consultant Services to Marsh USA, Inc., a local company. The company will assess financial risks for the district to ensure that the best possible lines of insurance are purchased, General Counsel Martha McCabe explained.
"We may be suffering as a result of our deductibles," she said.
Twenty-five vendors were contacted in regard to the contract, five did not respond, and ranked just below Marsh USA, Inc., were RWL Group and Valley Risk Consulting. The first-year cost to the district for Marsh's services will not exceed $97,500; and the second and third year costs will not exceed $102,500. The total three year cost is not to exceed $302,500.
However, the committee anticipates paying only $50,000 for the first year of consultant services, and less than that for each of the following two years. They predict the first year will be much more labor intensive.
After voting to approve their March 13 meeting minutes, the Audit, Budget and Finance Committee brought three agenda items to the board, beginning with a presentation concerning the district's budget and finances.
To minimize reinvestment, interest and credit risks when investing $275 million bond proceeds, the committee recommended that the board approve for Hypo Public Finance Bank to act as provider, and U.S. Bank N.A. as the custodian, for a Flexible Repurchase Agreement.
Four bids were received March 19, Hypo Public Finance Bank's bid being the highest at a yield rate of 4.72 percent. The other three bids ranged from a yield rate of 4.6250 percent and 4.7030 percent. A bidding agent fee of $33,000 will be paid by Hypo Public Finance Bank to First Southwest Company, an expense which will reach the district as a somewhat lower fixed earnings rate.
The committee also recommended that the board award the Triennial Contract for Insurance Consultant Services to Marsh USA, Inc., a local company. The company will assess financial risks for the district to ensure that the best possible lines of insurance are purchased, General Counsel Martha McCabe explained.
"We may be suffering as a result of our deductibles," she said.
Twenty-five vendors were contacted in regard to the contract, five did not respond, and ranked just below Marsh USA, Inc., were RWL Group and Valley Risk Consulting. The first-year cost to the district for Marsh's services will not exceed $97,500; and the second and third year costs will not exceed $102,500. The total three year cost is not to exceed $302,500.
However, the committee anticipates paying only $50,000 for the first year of consultant services, and less than that for each of the following two years. They predict the first year will be much more labor intensive.
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