R2007-027 2007-02-26
RESOLUTION NO. R2007 -27
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND,
TEXAS, AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO
ENTER INTO AN ARBITRAGE CONSULTING SERVICES AGREEMENT
WITH ARBITRAGE COMPLIANCE SPECIALISTS INCORPORATED.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. That certain contract by and between the City of Pearland and
Arbitrage Compliance Specialists Incorporated, 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 City Manager or his designee is hereby authorized to execute
and the City Secretary to attest a contract with Arbitrage Compliance Specialists
Incorporated.
PASSED, APPROVED and ADOPTED this the 26th day of February, A.D., 2007.
~'"' Qw
TOM REID
MAYOR
ATTEST:
APPROVED AS TO FORM:
Q~k~
DARRIN M. COKER
CITY ATTORNEY
R2007 -27
File No. 07 -0014
..........
--f
ARBITRAGE COMPLIANCE SPECIALISTS, INC.
February 8, 2007
Ms. Claire Manthei, Director of Finance
City of Pearland ("City")
3519 Liberty Drive
Pearland, Texas 7758]
COMPREHENSIVE CONTRACT LETTER FOR ARBITRAGE COMPLIANCE SERVICES
FOR THE CITY OF PEARLAND TAX-EXEMPT BOND ISSUES
THROUGH THE PERIOD ENDING FYE 9/30/07
Dear Ms. Manthei:
Arbitrage Compliance Specialists, Inc. ("ACS") is proposing a comprehensive contract ("Contract") to complete
and bring to current status all rebate reports to 5/31/07 or applicable filing date through the FYE 9/30/07, pertaining to
the required rebate to the United States Treasury, Internal Revenue Service ("IRS") for all tax-exempt debt issues
("Bonds") of the City listed in Attachment A of this Contract. ACS has offered the City volume discounted fees of
$1,250 for annual Rebate Reports from our standard fee of $1,500.
Based on ACS's prior experience with arbitrage rebate computations for the City's Ronds, ACS's on-site City
visits, ACS's review of various City accounting information and, ACS's experience with similar engagements of this
nature and scope, we have set forth the total contractual cost to complete rebate reports as defined in Attachment A of
this Contract to be $29,200 with a contingency of $2,920 for a Contract total not to exceed $32,120. The fees due for
arbitrage compliance services will be billed by ACS, based on ACS's Fees, at the time of the Report delivery to the City.
All invoices will be paid to ACS by the City as of the payable date of the invoice.
The scope of this Contract would cover the services, as stipulated in Attachment A for arbitrage compliance reports.
ACS has provided for a $2,795 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 Attachment B. ACS is the prime manager and
Contractor of this Contract and does not plan to retain and manage any subcontractors to assist with this Contract.
7400 East Orchard Road, Suite 270 . Greenwood Village. Colorado. 80111
Phone: (303) 756-5100 (800) 672-9993. Fax: (303) 756-0901 (800) 756-6505. E-Mail: ArbCom@earthlink.net
LOCATIONS NATIONWIDE: Greenwood Village, CO I La Jolla. CA I Orlando, FL I Boise, 10 I Boston, MA I Durham, NC
Las Vegas, NV I Columbus, OH I Oklahoma City, OK I Portland, OR I Nashville. TN I Houston, TX I Salt Lake City. UT I Seattle, WA
We appreciate the opportunity to present this Contract to the City. If we may be of further assistance, or if you or
any of the involved City personnel have any questions, please do not hesitate to call us at 1.800.672.9993.
Sincerely,
Arbitrage Compliance Specialists, Inc.
-p():#~
Doug Pahnke, Director
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 City
to Arbitrage Compliance Specialists, Inc.
&115:-
Accepted by - Signature
r
----
FehrlJi'lry ?6, ?007
Date
Bill Eisen
Accepted by - Print Name
City Manager
Title
City of Pearl and
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February 8, 2007
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Ms. Claire Manthei, Director of Finance
City of Pearland ("City")
35] 9 Liberty Drive
Pearland, Texas 77581
ARBITRAGE COMPLIANCE SPEClALlSTS,INC.
EXHIBIT B
FEE SCHEDULE
FOR ARBITRAGE COMPLIANCE SERVICES
FOR THE CITY OF PEARLAND
SERVICE FEE SCHEDULE: I
REBATE REPORT FEES (PER YEAR):
FIXED RATE BONDS:
FIRST YEAr, OF H.EPORT (COMPUTATION PERIOD OF UP TO ONE YEAR) $1,250 I
EXTENSION FEE (REPORTS IN EXCESS OF ONE YEAR) $600 I
I
VARIABLE RATE BONDS: I
FIRST YEAR OF REPORT (COMPUTATION PERIOD OF UP TO ONE YEAR) $1,850 I
EXTENSION FEE (REPORTS IN EXCESS OF ONE YEAR, PARTIAL YEARS ARE PRORATED) $700
REBA TE SUPPLEMENTAL FEES: I
BOND YEAR SUCING (PER YEAR) $1,000
PREPARATION OF FORM 8038-T AND IRS FlUNG INSTRUCTIONS ON-TIME $295
LA TE $395
REFUNDING BONDS WITH TRANSFERRED PROCEEDS ALLOCATIONS HOURLY;
RATE $150
ALLOCATION/REVIEW /VERIFICATION OF COMMINGLED FUNDS HOURLY;
RATE $150
OTHER CONSULTlNG/ IRS AUDIT ASSISTANCE/DATA GATHERING HOURL Y;
RATE $175
YIELD RESTRICTION CALCULATIONS:
YIELD RESTRICTION CALCULATIONS (REPOln FEE FOI, 1ST YEAR PERiOD) $1,000
REPORTS COVERING COMPUTATION PERIOD IN EXCESS OF 1 YEAR FOR $875
EACH ADDITIONAL PARTIAL 01, FULL YEAR
PENALTy/SPENDING EXCEPTION REPORT FEES:
I
SPENDING EXCEP110N CALCULATIONS - PEl, SEMI-ANNUAL SPENDING PERIOD $1,250
7400 East Orchard Road, Suite 270 . Greenwood Village. Colorado. 80111
Phone: (303) 756-5100 (800) 672-9993. Fax: (303) 756-0901 (800) 756-6505. E-Mail. ArbCom@earthlink.net
LOCATIONS NATIONWIDE: Greenwood Village, CO I La Jolla. CA I Orlando. FL I Boise. 10 I Boston. MA I Durham. NC
Las Vegas. NV I Columbus, OH I Oklahoma City. OK I Portland. OR I Nashville, TN I Houston. TX I Salt Lake City, UT I Seattle, WA