Travis County Commissioners Court
March 20, 2007
Housing Finance Corporation
Due to technical difficulties some caption files may be incomplete.
Regarding the determination of qualifications for bond counsel for the bond -- from the bond counsel selection committee, including direction as to necessary follow-up actions. Mr. Davis?
>> good afternoon. On February 13 its the board authorized -- appointed a selection committee and authorized the committee to issue a request for qualifications for bond counsel. The request was sent to seven firms and was also published -- public notice was published in the "austin american-statesman". All seven firms that we sent the request to responded, and we have we viewed the firms, and overall they were extremely qualified. They were very good applications. We contacted references and all the firms have wide experience being bond counsel for these types of bond, single-family bond programs. We scored the applications and the scores are in the attachment he, as part of your backup the scores we came up with. According to the state law, what we have to do in selection is determine the most qualified firm and then once that determination is made, then we can negotiate the fee. And if the negotiation goes okay, then they're your bond counsel. If not frks you feel the -- if not, if you feel the fee -- you can't come to an agreement, then you would go down to the next firm as far as the next qualified and try to negotiate a fee with that firm.
>> I wasn't here on the 13th, harvey. And I saw there was some kind of -- when you discussed it before the court I wasn't here on March 13th. I was in continuing education. So I wasn't here. I wasn't aware this was even coming up. But anyway, just enlighten me as far as what was discussed just real brief like.
>> well, on the 13th the board approved a committee. The committee consisted of April bacon, myself and ladd pattillo, and we went out for a request for qualification for bond counsel. That was sent to seven firms. Those firms are listed in the backup. And again, all those firms responded to the request. So this today we're we'ring back with the results of our evaluation of those seven firms. I also -- about a year ago I did a review of fees that are -- that were charged -- I contacted other housing finance corporations and asked them what fees they were being charged for bond counsel. The result that have survey is on the last page of your backup. But in my opinion a fee that has been charged other firms has been about two dollars, $2.50 a bond. So, for example, on a 15-million-dollar bond program, which is around the size that this corporation issues single-family bonz bonds, the bond counsel fee would be 30,000 to $37,500.
>> the big problem that was clear was vin son and he will kin charged a whole lot month. So we didn't doubt their work, it was of a fine quality, but on some issues it seems to be two and three times what other firms were charging. So the r.f.p. Is what we approved basically and they have come in as the best rated firm, but by law the next step is to get them to give us a price.
>> that's right.
>> and this is the problem. But they have this information the same as we. And by law, unless we, I guess, figure out some way to legally disqualify them, which I certainly would not do, then baifkly our next step is to sit down with them and talk price. Which is right where we were before we went out on r.f.p. Because we were satisfied with the work. They were just clearly charging two or three times more than others doing the same work, and as far as we know the same quality because we're talking about standard issues. So if there's something out of the ordinary, then a sort of extraordinary fee may be justified.
>> right.
>> and we discussed this with them several times before approving the r.f.p. Issuance. And I assume that they know what action is recommended to the board today.
>> I have not talk with them.
>> well, I bumped in to mr. Opal at the capitol yesterday and congratulated he and his firm for being the most qualified. He and I then chuckled that now it time to talk price, which is what the law requires.
>> right. I do have in the backup a request for fee schedule, which I would request the board to authorize by sending this request to the most qualified firm, which in the committee's selection process was vinson and elkins.
>> I just wanted to know what happened while I was absent, harvey. I didn't mean to put you on the spot.
>> I tried to put you on that committee, but the board thought you wouldn't want that. I was not on the committee, vinson and elkins. I move that we approve the recommendation that we choose vinson and elkins as the best qualified firm based on the evaluation and the committee's recommendation, and authorize staff to negotiate price with vinson and elkins and use the format provided, the request for fee schedule prepared by mr. Davis for the corporation, and report back to the board as soon as possible.
>> that would be fine. And if it's okay, I will ask them to respond by the end of this week. I don't think it should take long to respond. And perhaps we can have it on the agenda for next week.
>> if they need a few additional days I'd grant it, but I agree with you, you would think they would be able to turn this around in 24, 48 hours. But if it requires more consideration than that, another week won't hurt us, will it?
>> no.
>> maybe that will get ug 10 or 15 dollars reduced from
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Last Modified:
Wednesday, March 21, 2007 8:00 AM