RDAP-2019-05 2019-09-23RESOLUTION NO. RDAP 2019-05
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 23rd day of September. A.D 2019.
ATTEST:
eci
DAP Secretary
DAP Chairman
11 ARBITRAGE
COMPLIANCE
SPECIALISTS II
Rosa Cu411.1vx[ 51 r% ICI S
August 27, 2019
Ms, Cynthia Pearson, Director of Finance
City of Pearland, Texas
3519 Liberty Drive
Pearland, Texas 77581-5416
on behalf of:
Development Authority of Pearland ("Authority")
FOR FYE 9/30/20
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, 2020 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.
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
$1,250.00 with a contingency of $300.00, for a Contract total not to exceed $1,550. 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 $300 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.
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,
tt Collins
Senior Manager
5975 S. Quebec St., 8205 I Centennial, Colorado 80111 1800.672.9993 I www.rebatebyacs.com�
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 e A ority to Arbitrage Compliance Specialists, Inc.
Accepted b ' —'Signature
ei4n 'so},
Print N9 P_. e
Page 2 of 2
Arttnaonc/nosnonnonruaa,, inn
Pave i
EXHIBITA
DEVELOPMENT AUTHORITY OF PEARLAND
ARBITRAGE AND YIELD RESTRICTION REPORT FEES
NEXT
FILING GATE
ISSUE
DELIVERY
(RaREBATEI
(YR=TIELO REST)
(STH•STH YEAR!
(10TH=10TH YEAR)
FY
CNTRL
9
BOND ISSUE
AMOUNT
DATE
IF=FINAL)
1011119 -9/30G0
73
Tax Increment Contract Revnnun SOnds. Sodas 2011
S8.06M
12/09/14
12)19114-12/09/1951h(R
51.200
SUBTOTAL
51.250
ESTIMATE OF IINC.OMMINOI.INC FEES ♦ CONTINGENCIES
E90Q
41454
TOTAL
ARBITRAGE
COMPLIANCE
SPECIALISTSP
O' t MIME nan lerS
Ms. Cynthia Pearson, Director of Finance
City of Pearland, Texas ("City")
3519 Liberty Drive
Pearland, Texas 77581-5416
August 27, 2019
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)
EXTENSION FEE (REPORTS IN EXCESS OF ONE YEAR)
$1,250
$600
VARIABLE RATE BONDS:
FIRST YEAR OF REPORT (COMPUTATION PERIOD OF UP TO ONE YEAR)
EXTENSION FEE (REPORTS IN EXCESS OF ONE YEAR, PARTIAL YEARS ARE PRORATED)
$1,850
$700
REBATE SUPPLEMENTAL FEES:
BOND YEARSUCWG (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 RESTRICr1ON CALCULATIONS:
YIELD RESTRICTION CALCULATIONS (REPORT FEE FORM' YEAR PERIOD)
$1,000
REPORTS COVERING COMPUTATION PERIOD IN EXCESS OF 1 YEAR FOR
EACH ADDITIONAL PARTIAL OR FULL YEAR
$875
PENALTY/SPENDING EXCEPTION REPORT PEES:
SPENDING EXCEPTION CALCULATIONS - PER SEMI-ANNUAL SPENDING PERIOD 1 $1,250
5975 5. Quebec St., 8205 1 Centennial, Colorado 80111 1 800.672.9993 I www.rebatebyacs.com�
ACK' fere, are based nn the following three categories:
Rebate Report Fres -'there arc different report fens 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 he evaluated.
Spending Exception Report Fee - Pecs for calc<dating ACP (the amount to he spent semi-annually), determining expenditures an<f
retainage and any penalties owed. These fees are in lieu of rebate fees.
• Fiir TRS ALLOWS A CREDIT OF UP TO $7,340 KR 5-YI1AIt}ILIYt0. ACS' sus ARE LESS THAN rue CnE.D1'r YOU RECEIVE FROM TIIE IRS.
Note: ACS' fees should be paid front bond proceeds. ACS' fees slated above include all normal business expenses such as faxes,
copies, regular US. mail postage, and telephone access via ACS' toll free telephone number. FedEx, when needed, is billed to
the City at cost.