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Home My WebLink AboutArbitrage Compliance Specialists - Agreement for Arbitrage Compliance Services ARBITRAGE August 31,2021 COMPLIANCE SPECIALISTS I= Ms. Kimberly Domine,Financial Services Manager City of Yakima,Washington("City") 129 North Second Street Yakima,Washington 98901 Dear Ms. Domine: 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 interpretation 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(f) 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 ecialists, Inc. Robert Goubert, Director Please acknowledge acceptance of this engagement by signing and e-mailing this letter in its entirety to Arbitr e Compliance Specia ists,Inc. at Robert@rebatebyacs.com. Ro b r4 c4--r1`1 or Accepted by—Signature Print Name ‘Sk 730-41 C-rhA irVIATAairr' Date Title CITY CONTRACT NO �r �{1Cub ' • ., RESOLUTION NO: OrganiAtion U Arbitrage Compliance Specialists, Inc. 6041 S. Syracuse Way #310 I Greenwood Village, Colorado 80111 1800.672.9993 I www.rebatebyacs.com and Compliance Program Services: Fees Arbitrage Calculation ._: .. Arbitrage Rebate Calculation Fee Per Issue: $525 per year $525 Arbitrage Rebate Calculation Fee Per Issue(subsequent 5th year period(i.e. 10th, 15th...)):$400 per year $400 Arbitrage Rebate Review Fee Per Issue(subsequent 5th year period(i.e. 10th, 15th...)):$150 per year ! $150 (Gross Proceeds Spent)** Additional Arbitrage Rebate Calculation Services: (If Required) • Comprehensive Arbitrage Compliance Analysis/Set-Up Yield Restriction Calculation(Per Report Period) Spending Exception Calculations(Per 6-Month Report Period) Included Commingled Funds and/or Transferred Proceeds Variable Rate Issues d, IRS Audit Assistance(For Bond Issues Completed By ACS) Included Po „g Debt Compliance Monitoring Service 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 professional staff 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 a 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- 11 Arbitrage Compliance Specialists, Inc. ARBITRAGE REBATE SUMMARY Phone: (800) 672-9993 City of Yakima, Washington ARBITRAGE Fax: (800) 756 6505 www.rebatebyacs.com Tuesday, August 31 , 2021 COMPLIANCE • SPECIALISTS I BOND FACTS COMPLETED FUTURE Subject Date Final Subject to project Y • PAR Bond Issue Issued Maturity Rebate Resin Type End Date Liability Type End Date 12.00 $5,585,524.65 $1,430,524.65 Ltd Tax GO Bonds,2003 06/17/03 12/01/23 Yes Yes Arbitrage Rebate Calculation 05th Year 06/17/08 ($149,927.61) Series A $4,155,000 Ltd Tax GO Refunding Bonds,2003 Series B Arbitrage Rebate Review 20th Year 15.00 $5,215,000.00 Irrigation System Revenue Bonds, 09/14/04 09/01/34 Yes Yes Arbitrage Rebate Calculation 05th Year 09/14/09 ($83,575.62) Series 2004 Arbitrage Rebate Review 20th Year 09/14/24 17.0G $8,980,000.00 Limited Tax General Obligation and 05/08/07 05/01/26 Yes Yes Arbitrage Rebate Calculation 05th Year 05/08/12 ($7,810.60) Refunding Bonds,2007 Arbitrage Rebate Review 15th Year 05/08/22 Spending Exception Calculation 18 Months 11/08/08 18.00 $8,840,000.00 Water and Sewer Revenue Refunding 06/05/08 11/01/27 Yes Yes Arbitrage Rebate Calculation 10th Year 06/05/18 ($281,671.60) 15th Year 06/05/23 Bonds,2008 21.00 $4,980,000.00 Limited Tax General Obligation Bonds, 08/28/09 12/01/32 Yes Yes Arbitrage Rebate Calculation 05th Year 08/28/14 ($123,450.59) Series 2009B Taxable(Build America Bonds-Direct Payment) Arbitrage Rebate Review 15th Year 08/28/24 22.00 $9,400,000.00 Water and Sewer Revenue Refunding 05/31/12 11/01/23 Yes No Arbitrage Rebate Calculation 05th Year 05/31/17 ($287,868.76) Bonds,2012 Arbitrage Rebate Review 10th Year 05/31/22 24.00 $13,140,000.00 Limited Tax General Obligation Bonds, 06/09/14 06/01/24 Yes Yes Arbitrage Rebate Calculation 05th Year 06/09/19 ($65,777.62) Final 06/01/24 2014A 25.00 $3,500,000.00 General Obligation Refunding Bonds, 12/01/28 Unknown Unknown 1. Documents Needed: Series 2018(Street Resurfacing Project) Resolutions,8038G,Tax Certificate, Loan Agreement, Stand By Purchase Agreement, Indenture Active Issues for Rebate Purposes Page 1 of 2 BOND FACTS REPORT COMPLETED FUTURE NOTES Subject to 0'. Date Final Subject to Project Yield Ctrt# PAR Bond Issue Issued Maturity Rebate Restriction , _ Type End Date Liability Type End Date 25.40 $4,440,127.00 General Obligation Refunding Bonds, 06/01/35 Unknown Unknown 1. Documents Needed: 8038G, Series 2018(Yakima Sport Complex) Tax Certificate, CPA Verification, Loan Agreement,Stand By Purchase Agreement, Indenture 25.60 $8,009,873.00 General Obligation Bonds,Series 2018 12/01/42 Unknown Unknown 1. Documents Needed: (Aquatic Center-YMCA) Resolutions,8038G,Tax Certificate, Loan Agreement, Stand By Purchase Agreement, Indenture 26.00 $6,390,000.00 Limited Tax General Obligation 04/21/20 12/01/34 Yes No Arbitrage Rebate Calculation 05th Year 04/21/25 Refunding Bonds, Series 2020A 1. 41•111•111•11111111111111 II Active Issues for Rebate Purposes Page 2 of 2