RDAP 2020-02 2020-09-28RESOLUTION NO. RDAP 2020-02
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 28th day of
September , A.D. 2020.
DAP CHAIRMAN
ATTEST:
DAP SECRETARY
ARBITRAGE
COMPLIANCE
SPECIALISTS 1=
)AIPLIANCL
August 31, 2020
Mr. Tom Reid, Chairman
Development Authority of the City of Pearland, Texas
3519 Liberty Drive
Pearland, Texas 77581-5416
FOR FYE 9/30/21
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 $1,850.00 with a contingency of $150.00, for a Contract total not to exceed $2,000.00. 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 $150.00 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,
or
Ztt Collins
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.
r--
eT-
Accepted by — Signature Print Name
)mpliance Specialists, Inc.
EXHIBIT A
UtvLWNMLN I AUTHORITY OF PEARLAND
ARBITRAGE AND YIELD RESTRICTION REPORT FEES
NEXT
FILING DATE
(R=REBATE)
(YR=YIELD REST)
ISSUE DELIVERY
(5TH=5TH YEAR)
(10TH=10TH YEAR)
FY
BOND ISSUE AMOUNT DATE
(F=FINAL)
10/1/18-9/30M9
ement Contract Revenue and Refunding Bonds, Series 2015 $66.03M 11/12/15
DOMMINGLING FEES + CONTINGENCIES (10%)
4/12/16 - 11/12/20 5TH (R)
$1,850
$1,850150
$2,009
ARBITRAGE
COMPLIANCE
SPECIALISTSI=
BOM) . :; APLIANCE SERVICES August 31, 2020
Ms. Cynthia Pearson, 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):
FDCED 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 YEAR SLICING R 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
EACH ADDITIONAL PARTIAL OR FULL YEAR
$875
PENALTY/SPENDING EXCEPTION REPORT FEES:
SPENDING EXCEPTION CALCULATIONS - PER SEMI-ANNUAL SPENDING PERIOD $1,250
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.