Due diligence and 2008A bond refunding?

Has Boone County done “due diligence” in the selection of Speer Financial (advisor) and Robert W. Baird Company (broker) in the proposed refunding of Boone County’s 2008A bonds.

(These bonds are going to be refunded at a lower rate, possibly this year)  I sent this email to the Finance subcommittee and County Administration

Courtesy prevented me from raising this question in front of Mr. Mc Canna at last Wednesday’s Finance subcommittee.

I understand that state law considers this to be “professional service” and as such not subjected to a bidding process. However this is a very large expenditure, the commission and profit to these venders may amount to the $10,000’s. As such I think it is only prudent to ask your committee and Mr. Terrinoni, the reason Mr. McCanna was selected and what efforts were made to compare his services and costs to other advisors and brokers.

I would prefer your reply be in writing and be specific as to contacts and approximate dates of interviews or communications with other advisors/brokers and why Mr. McCanna was selected.

Bill Pysson

A reply from the County Administrator:

In the summer of 2008, I along with Chairman Ward and Finance Committee Chair Dave Taylor looked at four possible Financial Advisors for purposes of selling bonds:

Crowe Chizek and Company LLC (John Miller, formerly with RV Norene & Associates)

Ehlers & Associates Inc.

Wells Fargo Public Finance

Speer Financial Inc.

Speer was considered the more qualified of the four due to depth of staffing and experience with municipal bonds.

Hope this answers your questions.

Ken Terrinoni

Based upon the volatile nature of the finance industry since the Great Recession, I question whether fresher research was warranted to insure that Speer Financial is still well qualified.  However because of the urgency due to possible interest rate rise perhaps keeping with Speer is the best decision at this point.  Nonetheless, I believe that the Finance Subcommittee and the County Board should have had a voice in the decision to keep Speer.  Did they?—Bill P