COUNTY ADMINISTRATION OFFICE - R. ESPINOSA

Approve contract with Raymond James & Associates, Inc. for Placement Agent Services in the amount of $17,500.00, for ENGIE Solar Improvements Lease Financing.

SBC FILE NUMBER: 119

Under the guidance of KNN Financial Inc., the County is in the process of procuring lease financing in the amount of $8,185,000 for Solar improvements as proposed by the ENGIE Services presented at the Board of Supervisors meeting of January 23, 2018. The Engie Solar Project is viable only upon successful financing and Board of Supervisors approval for the creation of the Capital Project. The intention of the County is to not collateralize any of the County's assets in the intended equipment lease agreement. This will allow the County to utilize, if necessary, the County's assets as collateral in a future debt financing should the County wish to pursue additional financing. According to KNN Financial Inc., Placement Agent services are required for this financing effort. The selection of Raymond James is based on "piggybacking" on the recent request for quotes performed by Trinity County for similar financing. The three Placement Agents providing quotes were Stifel, Raymond James and Brandis Tallman LLC (attached).   Brandis Tallman LLC and Raymond James both had the lowest quote of $17,500 from the three firms that provided quotes. KNN Financial Inc has worked with both firms but Raymond James has performed other financial services for the County in the past.  The County's familiarity with their fine work is the determining factor in the selection of Raymond James. If this project proceeds to gain successful financing and approval by the Board of Supervisors, a Capital Project will be created for the expenditures of funds for the Placement Agent Services.  Placement Agent services will not increase the cost of the ENGIE services as proposed at the Board of Supervisor's meeting of January 23, 2018 since  ENGIE representative Anju Jain has agreed to pay the cost of the Placement Agent.