RDAP-2008-07 2008-11-03RESOLUTION NO. RDAP-2008-07
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 3~d day of November, A.D 2008.
+ 4~
DAP Chairman
ATTEST:
DAP Secretary
Exhibit "A"
Resolution No. RDAP-2008-07
i
ARBITRAGE COMPLIANCE SPECIALISTS, INC.
April 14, 2008
Ms. Claire Manthei, Director of Finance
City of Pearland ("City")
3519 Liberty Drive
Pearland, Texas 77581
On Behalf of
Development Authority of Pearland ("Authority")
COMPREHENSIVE CONTRACT LETTER FOR ARBITRAGE COMPLIANCE SERVICES
FOR THE DEVELOPMENT AUTHORITY OF PEARLAND TAX-EXEMPT BOND ISSUES
THROUGH THE PERIOD ENDING FYE 9/30/09
Arbitrage Compliance Specialists, Inc. ("ACS") is proposing a comprehensive contract ("Contract") to complete
and bring to current status all rebate reports through the FYE 9/30/09, pertaining to the required rebate to the United
States Treasury, Internal Revenue Service ("IRS") for all tax-exempt debt issues ("Bonds") of the Authority listed in
Exhibit A of this Contract. ACS has offered the Autlrnrity volume discounted fees of ~1,z50 for annual Rehate
Repnrts.from our sta~idard,fee of X1,500.
Based on ACS's prior experience with arbitrage rebate computations for the Authority's Bonds, ACS's review of
various Authority 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 Exhibit A of this Contract to be $5,500
with a contingency of $500, for a Contract total not to exceed $5,500. '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 Authority. All invoices will be
paid to ACS by tl~e Authority as of tl~e payable date of tl~e invoice.
The scope of this Contract would cover the services, as stipulated in Exhibit A for arbitrage compliance reports.
ACS has provided fora $500 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
ConU-actor of this Contract and does not plan to retain or manage any subcontractors to assist with this Contract.
7400 East Orchard Road, Suite 270 ~ Greenwood Village ~ Colorado ~ 80111
' 'r~c,r;t: (303) 756-5100: (800) 672-9993 = ! -„ (303) 756-0901 (800) 756-6505 ~ ~ n~~ ri' Arbitrage@RebateByACS.com
La Jolla, CA f Greenwood Village, CO :Orlando, FL Boise, ID ! Las Vegas, NV
Durham, NC ! Portland, OR Nashville, TN ' Houston, TX Salt Lake City, UT Seattle.. WA
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(A W IH
.April 14, ?008
Ms. Claire Manthei, Director of Finance
City of Pearland ("City")
3519 Liberty Drive
Pearland, Texas 77581
On Behalf of
Development Authority of Pearland ("Authority")
EXHIBIT B
FEE SCHEDULE
~_
ARBITRAGE COMPLIANCE SPECIALISTS, INC.
FOR ARBITRAGE COMPLIANCE SERVICES
FOR THE DEVELOPMENT AUTHORITY 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, PARTIAL YEARS ARE PRORATED $600
VARIABLE RATE BONDS:
FIRST PEAR OF REPORT (COMPUTATION PERIOD OF UP TO ONE YEAR $1,850
EXTENSION FEE (REPORTS 1N 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 FTLING INSTRUCTIONS ON-TIME $295
LATE $395
REFUNDING BONDS WITH TRANSFERRED PROCEEDS ALLOCATIONS HOURLY;
RATE $150
ALLOCATION REVIEW VERIFICATION OF COMMINGLED FUNDS HOURLY;
RATE $150
OTHEP. CONSULTING~IRS AUDIT ASSISTANCE~DATA GATHEPJNG 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 $1,250
7400 East Orchard Road, Suite 270 ~ Greenwood Village ~ Colorado ~ 80111
;n +~~: (303) 756-5100 ~ (800) 672-9993 i (303) 756-0901 (800) 756-6505 < nrri' Arbitrage@RebateByACS.com
La Jolla, CA ; Greenwood Village, CO (Orlando, FL ; Boise, ID ;Las Vegas, NV
Durham. NC Portland. OR ' Nashville, TN ,` Houston, TX + Salt Lake City, UT Seattle, WA
ACS's 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 h•ansactional 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 inveshnents to be evaluated.
Spending Exception Report Fee -Fee for calculating ACP (the amount to be spent semi-annually), determining expenditures and
retainage and any penalties owed.
" TFIIIRS ALL01~1~5 A CREDIT' OP UI' T"O $5,000 PER S-YEAR FILING. ACS~S FEES ARE LESS'PHAN THE CREDIT YOU RECEIVE FROM TFIE IRS.
Note: ACS's fees should be paid from bond proceeds. ACS's fees stated above include all normal business expenses such as
faxes, copies, regular U.S. mail postage, and telephone access via ACS's toll free telephone number. FedEx, when needed, is
billed to the Authority at cost.
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We appreciate the oppo--tunity 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.
Sincerely,
Arbitrage Compliance Specialists, Inc.
Da y ~~-
Doug Pahnke, Director, Vice President
Please acknowledge acceptance of this Contract by executing and returning one copy of this letter to Arbitrage
Compliance Specialists, lnc. along with any other purchase orders or required paperwork deemed necessary by the
Authority to Arbitrage Compliance Specialists, Inc.
Accepted by -Signature
Date
Tom Reid
Accepted by -Print Name
Development Authority of-Pearl and
Organization
Chairman
Title
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