To: Board of Supervisors
From: Dan Mierzwa, Treasurer-Tax Collector
Report Title: Approve and Authorize the County Treasurer-Tax Collector to Execute a Contract with Bloomberg Finance L.P.
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the County Treasurer-Tax Collector, or designee, to execute a two-year contract with auto-renewal for successive two-year periods between Contra Costa County and Bloomberg Finance L.P. (“Bloomberg”), beginning upon execution, with an initial annual payment of approximately $79,740, for use of Bloomberg’s financial system to access, monitor, and analyze real-time financial market data, and to facilitate financial transactions, as requested by the Treasurer-Tax Collector.
FISCAL IMPACT:
Service fees will be paid out of the investment revenues generated from the County Treasury Pool deposited in the County General Fund.
BACKGROUND:
Bloomberg is the only financial company that provides BLOOMBERG TERMINAL service, a proprietary financial system that enables the Treasurer-Tax Collector to access, monitor, and analyze real-time financial market data. It also facilitates financial transactions, such as bonds traded in the County’s Investment Pool.
Contra Costa County has been using Bloomberg’s services since 2007, when the County entered into an agreement with it to utilize its services in managing the Contra Costa County Investment Pool to achieve the Investment Policy objectives: safety, liquidity, and yield.
Following negotiations between the County and Bloomberg, a new agreement has been reached. This agreement contains an initial term of two years with an automatic renewal clause that automatically renews the agreement for two-year periods unless either the County or Bloomberg elects not to renew. There is no annual payment limit.
CONSEQUENCE OF NEGATIVE ACTION:
If the agreement is not approved and authorized, the County will not be able to access the financial services offered by Bloomberg, which could hinder the County Treasurer-Tax Collector’s management of the County Investment Pool and ability to achieve investment objectives.