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Agenda Item
ASR
Control 08-002587 |
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MEETING DATE: |
01/27/09 |
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legal entity taking action: |
Board of Supervisors |
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board of supervisors
district(s): |
All Districts |
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SUBMITTING
Agency/Department: |
Treasurer-Tax Collector (Approved) |
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Department contact
person(s): |
Colleen Avila 714-834-3968 |
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Jennifer Burkhart 714-834-6143 |
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Subject:
Amend Bloomberg to add Data
License Agreement
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ceo Concur |
County
Counsel Review |
Clerk of the Board |
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Concur |
Approved Agreement to Form |
Consent Calendar |
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3 Votes Board Majority |
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Budgeted: Yes |
Current Year Cost:
$5,000 |
Annual Cost:
$15,000 |
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Staffing Impact: No |
# of Positions:
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Sole Source:
Yes |
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Current Fiscal Year Revenue: N/A |
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Funding Source: 100%
Revenue |
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Prior Board Action: N/A
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RECOMMENDED ACTION(S)
Authorize the Treasurer Tax Collector’s Deputy Purchasing Agent or her designee to amend Bloomberg Agreement #PA N4000006715 to add the capability to download daily security market prices via Bloomberg’s Data License feed at the cost not to exceed $15,000 annually for the time period February 1, 2009 through January 31, 2011.
SUMMARY:
Approval is requested to amend Bloomberg Agreement #PA N4000006715 to add the capability to download daily security market prices via Bloomberg Data License feed.
BACKGROUND INFORMATION:
The Bloomberg Portfolio Trading System has been utilized by the Treasurer’s Investment staff for the past seven years. In order to provide market values for the portfolios on a daily basis we currently receive data files from Bloomberg. These files are imported into the Sungard AvantGard Quantum application which is used to perform the accounting and cash management activities for the County’s investment portfolios. In June 2008, the Board approved an upgrade of the Quantum software in order to provide a more updated version with enhanced features.
As part of the Quantum upgrade an evaluation of all integrated data feeds currently imported into Quantum were reviewed in light of new functionality and programming changes to accommodate these changes.
Currently, prices are sent to the Treasurer’s office via a nightly batch pricing feed from Bloomberg. The prices are then manipulated via an in-house developed module that converts them to security market values and imports the values via Excel spreadsheets into Quantum. SunGard has indicated the upgraded version will no longer be able to support the functionality used by the older version, and have provided a new rate feed capability as part of the upgraded version. This will allow the prices to be imported directly into the Quantum application rather than via Excel spreadsheets, thereby circumventing the need to continue to support the in-house module. Additionally, the developer of this module is no longer employed by the County, and we do not have the necessary resources to program another such custom module.
This new capability allows for a “plug-in” module using the Bloomberg Data License feed and will replace the existing spreadsheet-based uploads. SunGard has an existing interface for the Bloomberg feed which we can use without incurring additional consulting costs. If we do not use the Bloomberg feed, we will need to pay for additional consulting, programming, and testing time for SunGard to develop a module to inmport market values from an alternative data provider.use the Bloomberg feed, we do not have to pay for additional consulting, programming and testing time for Sungard to develop a module to import market values.
Another vendor similar to Bloomberg is IDC and they were contacted. We have found their ability to provide prices and their costs comparable to Bloomberg. However, the savings would be in programming time to develop an import module for Quantum. In order to avoid changing the scope of the Quantum upgrade and paying for additional SunGard consulting services to create a customized daya transmission interface, we recommend using the Bloomberg solution.
Bloomberg’s cost is based on the amount of data requested during each calendar month. The number of securities averages approximately 200 per day at an average price of $.03 per price. The minimum charge is $1,000 per month. We do not anticipate exceeding the minimum charge on a monthly basis. This is comparable to the charges by IDC.
The proposed amendment is a standard contract provided by Bloomberg for this service. In order to receive this service from Bloomberg, the County is required to accept the terms and conditions as provided for in the proposed amendment. The County was able to negotiate the inclusion of the County’s Fiscal Appropriation Clause. Nevertheless, the amendment does provide for a sole indemnification provision to the benefit of Bloomberg. The amendment also contains a copyright/trademark infringement indemnification provision to the benefit of the County. The proposed amendment has been reviewed by both County Counsel and Risk Management. Risk Management has determined that the language in the proposed amendment is acceptable. Due to the need for such services, we believe it is in the County’s best interest to approve the amendment as written.
A copy of this Agreement is on file with the Clerk of the
Board.
FINANCIAL IMPACT:
N/A
STAFFING IMPACT:
N/A
EXHIBIT(S):
Sole Source
ATTACHMENT(S):
Bloomberg DataLicense (per Security) Agreement, Bloomberg DataLicense Pricing Schedule and Bloomberg Per Security Datalicense Amendment