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Home My WebLink AboutArbitrage Compliance Specialists - Arbitrage Compliance Services AgreementARBITRAGE COMPLIANCE SPECIALISTSI= July 11, 2018 Ms. Tara Lewis, CPA, Financial Services Manager City of Yakima, Washington ("City") 129 North Second Street Yakima, Washington 98901 Dear Ms. Lewis AGREEMENT FOR ARBITRAGE COMPLIANCE SERVICES Arbitrage Compliance Specialists, Inc. ("ACS") is pleased to present this agreement for professional services ("Agreement") to provide arbitrage compliance services for the City. Our firm has distinctive legal and accounting experience with arbitrage compliance services dating back to the inception of the arbitrage rebate regulations of 1986. ACS is one of the most prominent and well-respected providers of arbitrage compliance services in the nation. ACS' staff members are accounting professionals who have extensive knowledge of governmental accounting, accounting allocation methods and legal interpretation skills to compute the lowest permissible liability allowed. We pride ourselves on our unprecedented commitment to each and every client we represent. This Agreement relates to the City's tax advantage bond issues and shall become effective on the date of acceptance ("Acceptance") by the City and remain in effect for three years from the Acceptance. The City or ACS can terminate this Agreement upon a 30 -day written notice and payment of any services to -date. ACS has provided a fee schedule to encompass the various elements that we may encounter during the calculations. ACS' fees are derived by the number of years included in the calculation. The fee schedule listed on page 2 provides fees for reports covering the applicable periods. Each calculation includes a CPA opinion to provide assurance that the calculations were completed according to Section 148(D of the Internal Revenue Code of 1986 that governs the arbitrage rebate requirements (the "Tax Code"). We appreciate the opportunity to provide assistance to help the comply with the IRS arbitrage compliance requirements. As always, if we may be of further assistance or if there are any questions, please do not hesitate to call us at (800) 672-9993 ext. 7536. Sincerely, Arbitrage Compliance S ��/ Robert Goubert, Associate Director Please acknowledge acceptance of this engagement by signing and e -mailing this letter in its entirety to Arbitrage Compliance Specialists, Inc. at Robert@rebatebyacs.com. Accepted 4iy — Signature 43. I (� Date CITU CONTRACT NO: 2c/13 /Sy RESOLUTION NO: 11/a 6,c( C/'j2 c Print Name C PA 4 /L46� . Title Organization O v Kf b1 5975 S. Quebec St. #205 1 Centennial, Colorado 80111 1 800.672.9993 1 www.rebatebyacs.com y ss Bond Qt.tipliance 'rograru Services ,Fees ;. s�,. `� • '2 z)F`w' �.q �P��''Y T � !, i 'c� ,� e �'4 k 'N� = ArbYtrag;,Calculat an Servzces Arbitrage Rebate Calculation Fee Per Issue: $525 per year $525 h Arbitrage Rebate Calculation Fee Per Issue (subsequent 5th year<period (i.e. 10"',.15"...)):`$400 per year $400 '-:Arbitrage' Rebate. Review; Fee'P.er Issue (subsequent 5`,!'.yearperiod (i.e. 10"', 15`h...)):`$1:50;per,year.:: ; "g.0 r (Gross Proceeds -Spent)* :' :.ra; : ;.. . • >: :` $1'5021 : ,, s1K g.r:-., '4 '° .m. 4er• ddibona �Arbi rage Rebate Calculation Semces::(Ifitequired) :....'� •,-. ` � ;,.,1 Comprehensive Arbitrage Compliance Analysis/Set=Ups -rr <» • .:. ,.,,.. , Included Yield Restriction Calculation (Per Report Period) Spending Exception Calculations (Per 6 -Month Report Period) Commingled Funds and/or Transferred Proceeds `Variable Rate Issues .. ': `_;bn3' tt r "k.?>'n £'., �: ?+&r`t'-. s . ;.� 1fy+\ �.''ia{` -i`�+a'`�. _ Y �,' Y•=`, •,("..: N` .,�^'\`„�; �.:.'. Standartl ie a S , ces IfA hcable ; 6 ` IRS Audit Assistance: For Bond``Issues Completed ivACSi`''' ' Included ostfflalculations;Sergi ces Debt Compliance Monitoring Service g¢„ ,,."': Included Record Retention Service **If the only reporting requirement pertains to reviewing, testing and confirmation of a bona fide debt service fund the fee is decreased to $150 per applicable bond per year. This reporting is consistent with the current IRS post -issuance compliance recommendations and includes such on-going services as record retention, and all other related Bond Compliance Program Services. Rebate report fees are determined based on the number of years included in the calculations. An interim report may cover a period from one year to five years. ACS will review each bond issue to determine if the debt issue is subject to arbitrage rebate at no charge. If it is determined that a bond issue is subject to arbitrage rebate, ACS will make their recommendation(s) and proceed with the calculations based on the fee schedule listed above at the direction of the City. Calculation Services 1. Review the documents related to the debt issue to include the Official Statement, Tax Certificate, IRS Form 8038-G and CPA Verification Report. 2. Complete an in-depth analysis of the debt structure by our in-house tax attorney to determine if the debt issue is subject to rebate and/or yield restriction and identify applicable exceptions. 3. Monitor IRS filing deadlines, election requirements and restricted periods in our database tracking system to ensure timely reporting. 4. Perform the rebate, yield restriction/yield reduction or spending exception/penalty calculations in compliance with Internal Revenue Code of 1986. 5. Provide calculations with legal opinion and CPA certified professional opinion that can be relied upon by the City regarding the liability. The report will provide supporting documentation to include the calculation method employed, assumptions and conclusions. 6. Prepare payment Form 8038-T with detailed filing instructions for accurate and timely filing to the IRS, if applicable. Support Services 7. Discuss the report and findings to ensure a complete understanding of the procedures and recommendations in such report. 8. Prepare a debt compliance monitoring schedule that identifies all-important relevant information by issue including prior calculations, liability amounts, future calculation due dates and important status notes. 9. Advise on how future changes in the Tax Code may affect the debt issue. 10. Provide technical assistance and consultation in matters related to the arbitrage compliance regulations. 11. Assist in the IRS record retention requirements, which include storage of records related to the debt issue. -2- ARBITRAGE COMPLIANCE SPECIALISTS k Itr'•`:t: .:3i€I'I.� 1`,E:3' ^i' :\ it 1, Arbitrage Compliance Specialists, Inc. Phone: (800) 672-9993 Fax: (800) 756-6505 www.rebatebyacs.com ARBITRAGE REBATE SUMMARY City of Yakima, Washington Wednesday, July 11, 2018 12.00 $5,585,524.65 $1,430,524.65 Ltd Tax GO Bonds, 2003 Series A $4,155,000 Ltd Tax GO Refunding Bonds, 2003 Series B 06/17/03 12/01/23 Yes Yes Arbitrage Rebate Calculation Arbitrage Rebate Review 05th Year 06/17/08 ($149,927.61) 15th Year 06/17/18 13.00 $17,545,000.00 $7,390,000 Water and Sewer Revenue Bonds, 2003 Series A & $10,155,000 Water and Sewer Revenue Bonds, 2003 Series B 12/22/03 11/01/14 Yes Yes Arbitrage Rebate Calculation 05th Year 12/22/08 1. Priority 1 - Recommend completing 5th year report 2. Statute of Limitations; 11/1/26 14.00 $6,475,000.00 $2,300,000 Unitd Tax GO Refunding 09/07/04 11/01/19 Bonds 2004, & $4,175,000 Ltd Tax GO Refunding Bonds, 2004 Yes No Arbitrage Rebate Calculation Arbitrage Rebate Review 05th Year 09/07/09 15th Year 09/07/19 1. Low Priority 2. Statutue of Limitations; 11/1/21 15.00 $5,215,000.00 Irrigation System Revenue Bonds, Series 2004 09/14/04 09/01/34 Yes Yes 17.00 $8,980,000.00 Limited Tax General Obligation and Refunding Bonds, 2007 05/08/07 05/01/26 Yes Yes a Arbitrage Rebate Calculation Arbitrage Rebate Review 05th Year 09/14/09 15th Year 09/14/19 1. Priority 1 - Recommend completing 5th year report 2. Statute of Limitations; 9/1/37 Arbitrage Rebate Calculation Arbitrage Rebate Review Spending Exception Calculation 05th Year 05/08/12 ($7,810.60) 18 Months 11/08/08 15th Year 05/08/22 18.00 $8,840,000.00 Water and Sewer Revenue Refunding 06/05/08 11/01/27 Bonds, 2008 Yes Yes Arbitrage Rebate Calculation 05th Year 06/05/13 ($207,948.34) 10th Year 06/05/18 1. Priority 2 2. Reserve funded with bond proceeds 19.00 $2,950,000.00 Limited Tax General Obligation Bonds, 08/28/08 01/21/21 2008 Yes Yes Arbitrage Rebate Calculation Arbitrage Rebate Review 05th Year 08/28/13 ($71,356.03) 10th Year 08/28/18 Active Issues for Rebate Purposes Page 1 of 2 20.00 $2,055,000.00 Limited Tax General Obligation Bonds, 08/28/09 12/01/18 Series 2009A Yes i'ro]eet Yield '.i,Restriction; Yes Arbitrage Rebate Calculation Arbitrage Rebate Review 05th Year 08/28/14 ($37,155.57) Final 12/01/18 21.00 $4,980,000.00 Limited Tax General Obligation Bonds, 08/28/09 12/01/32 Yes Series 2009B Taxable (Build America Bonds -Direct Payment) Yes Arbitrage Rebate Calculation Arbitrage Rebate Review 05th Year 08/28/14 ($123,450.59) 10th Year 08/28/19 22.00 $9,400,000.00 Water and Sewer Revenue Refunding 05/31/12 11/01/23 Yes Bonds, 2012 No Arbitrage Rebate Calculation 05th Year 05/31/17 1. Priority 2 - Recommend completing 5th year report 2. Common Reserve Fund 23.00 $5,000,000.00 General Obligation Bonds, Series 2013 01/01/13 06/20/28 Unknown Yes (Streets Project) Arbitrage Rebate Calculation 05th Year 01/01/18 1. Issuance may meet the Small Issuer Exception 2. Documents Needed Resolutions, 8038G, Tax Certificate, Loan Agreement, Stand By Purchase Agreement, Indenture 24.00 $13,140,000.00 Limited Tax General Obligation Bonds, 06/09/14 06/01/24 Yes 2014A Yes Arbitrage Rebate Calculation Arbitrage Rebate Review 05th Year 06/09/19 Final 06/01/24 1. Documents Needed: 8038G, Tax Certificate 25.00 General Obligation Refunding Bonds, Series 2018 (Streets Project) Unknown No 1. Documents Needed: Resolutions, 8038G, Tax Certificate, Loan Agreement, Stand By Purchase Agreement, Indenture Active Issues for Rebate Purposes Page 2 of 2 ARBITRAGE COMPLIANCE SPECIALISTS Bond Compliance Program Budget City of Yakima, Washington .BUDGET -PRIORITY 1 13.00 $17,545,000.00 $7,390,000 Water and Sewer Revenue Bonds, 2003 Series A & $10,155,000 Water and Sewer Revenue Bonds, 2003 Series B Arbitrage Rebate Calculation Type Start Date V4; • rEntUDate Amount, 05th Year 12/22/03 12/22/08 $2,625.00 15.00 $5,215,000.00 Irrigation System Revenue Bonds, Series 2004 Arbitrage Rebate Calculation 05th Year 09/14/04 09/14/09 $2,150.00 BON FACTS Total $4.775.00 1.61:1#1 t PAR Bond Issue $8,840,000.00 Water and Sewer Revenue Refunding Bonds, 2008 $9,400,000.00 Water and Sewer Revenue Refunding Bonds, 2012 Printed: Wednesday, July 11, 2018 Total $4,625.00