Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Louise F. Rogers, Chief, San Mateo County Health
Lisa Mancini, Director, Aging and Adult Services
Subject: Agreement with The Brauner Company for Financial Advisor Services
RECOMMENDATION:
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Adopt a resolution authorizing an agreement with The Brauner Company to provide financial advisor services for conserved clients of the Public Guardian and decedent estates of the Public Administrator, for the term of July 1, 2020 through June 30, 2023, in an amount not to exceed $875,000.
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BACKGROUND:
Aging and Adult Services (AAS) operates the Public Guardian (PG) program, which acts under the authority of the Superior Court to manage the estates of conserved individuals who are deemed by the court to be unable to care for themselves and/or manage their financial affairs. AAS also operates the Public Administrator (PA) program, which is regularly appointed by the Superior Court to administer the estates of deceased County residents when there is no one available to take on this responsibility. The PA’s responsibilities include safeguarding, managing, and distributing the assets of such estates to heirs and beneficiaries. The financial advisor services required by the PG and PA include providing a wide range of investment options and information on the cost basis of assets for tax reporting, as well as preparing reports for court and monitoring purposes. For PG clients, the services also include financial planning and appropriate estate planning.
In 2016, The Brauner Company was selected to provide financial advisor services through a Request for Proposal (RFP) process conducted by AAS. The contract term was January 1, 2017 through June 30, 2020.
DISCUSSION:
In March 2020, AAS released an RFP for financial advisor services and The Brauner Company was the only responder. An RFP Evaluation Committee comprised of individuals from AAS Administrative and Financial Services Unit, County Counsel, and the AAS Estate Management Unit reviewed the proposal and selected The Brauner Company to continue providing financial advisor services. Experience with The Brauner Company over the last two decades has been excellent. The contractor has developed a superior understanding of financial management for conserved clients and decedent estates.
In consideration of the services provided and in conformance with the Superior Count’s Local Rules and the California Rules Court, The Brauner Company will continue to be paid an annual fee directly from estate funds of one percent of the value of the of the individual estate assets under management. Fees are calculated and assessed monthly. The aggregate average monthly assets currently under management is approximately $11,000,000.
The agreement and resolution have been reviewed and approved by County Counsel as to form.
San Mateo County Health requests that the Board authorize the Chief of San Mateo County Health or designee to prepare and execute contract amendments that modify the County's maximum fiscal obligation by no more than $25,000 (in aggregate) and/or modify the contract term and services so long as the modified term or services is/are within the current or revised fiscal provisions.
It is anticipated that the number of claims filed against the County for loss or misappropriation will be zero.
PERFORMANCE MEASURE:
|
Measure |
FY 2020-21 Projected |
FY 2021-22 Projected |
|
Number of claims filed against the County for loss or misappropriation |
0 |
0 |
FISCAL IMPACT:
The term of the agreement is July 1, 2020, through June 30, 2023. The amount of the agreement is not to exceed $875,000 for the three-year term. Fees for these services are reimbursed directly and entirely from the assets of PG clients and from decedent’s estates. As a result, there is No Net County Cost associated with this agreement. Funds for these services have been included in AAS FY 2020-21 Recommended Budget. Similar arrangements will be made for future budget years. The payment provisions for this agreement are the same as those of previous agreements.
ATTACHMENT:
RFP Matrix