RDAP-2016-05 2016-09-26 RESOLUTION NO.RDAP 2016-05
A RESOLUTION OF THE DEVELOPMENT AUTHORITY OF PEARLAND
(DAP), TEXAS APPROVING A CONTRACT WITH ARBITRAGE
COMPLIANCE SPECIALISTS, INC. FOR ARBITRAGE COMPLIANCE
SERVICES
BE IT RESOLVED BY DAP BOARD OF DIRECTORS:
Section 1. That contract letter for arbitrage compliance services, a copy of which is
attached hereto as Exhibit "A" and made a part hereof for all purposes, is hereby
authorized and approved.
Section 2. That the Chairman is hereby authorized to execute and the Secretary to attest
a contract letter for arbitrage compliance services.
PASSED, APPROVED, AND ADOPTED this 26th day of September, A.D 2016.
Tom Reid
DAP Chairman
ATTEST:
Ed Baker
DAP Secretary
11ARBITRAGE
COMPLIANCE
SPECIALISTS I=
1;0\1)(0111U■Nt L s610.10:5
April 22,2016
Mr. Rick Overgaard,Assistant Director of Finance
City of Pearland,Texas
3519 Liberty Drive
Pearland,Texas 77581-5416
on behalf of:
Development Authority of Pearland("Authority")
FOR FYE 9/30/17
COMPREHENSIVE CONTRACT LETTER FOR ARBITRAGE COMPLIANCE SERVICES
FOR THE DEVELOPMENT AUTHORITY OF PEARLAND TAX-EXEMPT BOND ISSUES
Arbitrage Compliance Specialists, Inc. ("ACS") is proposing a comprehensive contract ("Contract") to
complete and bring to current status all rebate reports through the FYE September 30, 2017, pertaining to the
required rebate to the United States Treasury, Internal Revenue Service ("IRS") for all tax-exempt debt issues
("Debt") of the Authority listed in. Exhibit A of this Contract. ACS has offered the Authority volume
discounted fees of$1,250 for annual Rebate Reports from our standard fee of$1,500.
Based on ACS' prior experience with arbitrage rebate computations for the Authority's Debt, ACS' review of
various Authority accounting information and, ACS' experience with similar engagements of this nature and scope,
we have set forth the total contractual cost to complete rebate reports as defined in Exhibit A of this Contract to be
$5,600 with a contingency of$560, for a Contract total not to exceed $6,160. The fees due for arbitrage compliance
services will be billed by ACS, based on ACS' Fees, at the time of the Report delivery to the Authority. All invoices
will be paid to ACS by the Authority as of the payable date of the invoice.
The scope of this Contract would cover the services, as stipulated in Exhibit A for arbitrage compliance
reports. ACS has provided for a $685 contingency budget in this Contract if the scope of the Contract needs to expand
for any services after discovery and will be based on the Fee Schedule defined in Exhibit B. ACS is the prime
manager and Contractor of this Contract and does not plan to retain or manage any subcontractors to assist with this
Contract.
5975 S. Quebec St., #205 I Centennial, Colorado 80111 1 800.672.9993 I www.rebatebyacs.com
i
We appreciate the opportunity to present this Contract to the Authority. If we may be of further assistance, or if
you or any of the involved Authority personnel have any questions, please do not hesitate to call us at (800) 672-9993
ext. 7526 or 7530.
Sincerely,
att Collins Stephen H. Broden
Account Manager Vice President
Please acknowledge acceptance of this Contract by executing and returning one copy of this letter to
Arbitrage Compliance Specialists, Inc. along with any other purchase orders or required paperwork deemed
necessary by the Authority to Arbitrage Compliance Specialists, Inc.
Accepted by—Signature Print Name
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11ARBITRAGE
COMPLIANCE
SPECIALISTS I April 22, 2016
Bo\D COMPLIA\CI:SERI'ICES p
Mr. Rick Overgaard,Assistant Director of Finance
City of Pearland,Texas("City")
3519 Liberty Drive
Pearland,Texas 77581-5416
EXHIBIT B
FEE SCHEDULE
FOR ARBITRAGE COMPLIANCE SERVICES
FOR THE CITY OF PEARLAND
SERVICE FEE SCHEDULE:
REBATE REPORT FEES(PER YEAR):
FIXED RATE BONDS:
FIRST YEAR OF REPORT(COMPUTATION PERIOD OF UP TO ONE YEAR) $1,250
EXTENSION FEE(REPORTS IN EXCESS OF ONE YEAR) $600
VARIABLE RATE BONDS:
FIRST YEAR OF REPORT(COMPUTATION PERIOD OF UP TO ONE YEAR) $1,850
EXTENSION FEE(REPORTS IN EXCESS OF ONE YEAR,PARTIAL YEARS ARE PRORATED) $700
REBATE SUPPLEMENTAL FEES:
BOND YEAR SLICING(PER YEAR) $1,000
PREPARATION OF FORM 8038-T AND IRS FILING INSTRUCTIONS ON-TIME$295
LATE$395
REFUNDING BONDS WITH TRANSFERRED PROCEEDS ALLOCATIONS HOURLY;
RATE$150
ALLOCATION/REVIEW/VERIFICATION OF COMMINGLED FUNDS HOURLY;
RATE$150
OTHER CONSULTING/IRS AUDIT ASSISTANCE/DATA GATHERING HOURLY;
RATE$175
YIELD RESTRICTION CALCULATIONS:
YIELD RESTRICTION CALCULATIONS(REPORT FEE FOR 1ST YEAR PERIOD) $1,000
REPORTS COVERING COMPUTATION PERIOD IN EXCESS OF 1 YEAR FOR $875
EACH ADDITIONAL PARTIAL OR FULL YEAR
PENALTY/SPENDING EXCEPTION REPORT FEES:
SPENDING EXCEPTION CALCULATIONS-PER SEMI-ANNUAL SPENDING PERIOD I $1,250
li5975 S. Quebec St., #205 I Centennial, Colorado 801111800.672.99931 www.rebatebyacs.com
ACS'fees are based on the following three categories:
Rebate Report Fees-There are different report fees for the various types of bond issues that reflect the necessary time and effort
required for legal and technical analysis,due diligence and transactional reporting.
Rebate Supplemental Fees-Optional fees may apply in more complex rebate areas dealing with Transferred Proceeds arising in
connection with refunding bonds or commingled investments to be evaluated.
Spending Exception Report Fee-Fees for calculating ACP(the amount to be spent semi-annually),determining expenditures and
retainage and any penalties owed. These fees are in lieu of rebate fees.
*THE IRS ALLOWS A CREDIT OF UP TO$7,340 PER 5-YEAR FILING. ACS'FEES ARE LESS THAN THE CREDIT YOU RECEIVE FROM THE IRS.
Note: ACS'fees should be paid from bond proceeds. ACS'fees stated above include all normal business expenses such as faxes,
copies,regular U.S. mail postage,and telephone access via ACS' toll free telephone number. FedEx,when needed,is billed to
the City at cost.
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