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Executive
Summary
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Exhibits
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December 4, 2006
Ms.
Dianne F. Stanford, Controller
City
of Sugar Land (“City”)
Accounting
Department, Suite 346
2700 Town Center Boulevard
Sugar Land, Texas 77479
COMPREHENSIVE
CONTRACT LETTER FOR ARBITRAGE COMPLIANCE SERVICES
FOR THE CITY OF SUGAR
LAND TAX-EXEMPT BOND ISSUES
THROUGH THE
PERIOD ENDING FYE 9/30/07
Dear Ms. Stanford:
Arbitrage Compliance
Specialists, Inc. (“ACS”) is proposing a comprehensive contract (“Contract”) to
complete and bring to current status as of FYE 9/30/07 (that can be completed
by 9/30/07), all of the necessary arbitrage compliance computations 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 $900 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
Bonds, 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 $58,300 with a contingency of
$2,000, for a Contract total not to exceed $60,300. This year's contract is greater in scope than
past Contracts due to the fact that the City will be requesting two arbitrage
rebate refunds, and it includes three arbitrage rebate reports on bonds issued
by Fort Bend County MUD #113, which was annexed by the City in December
2005. 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.
In providing the services set forth in this
Contract, it is agreed that ACS shall not incur any liability for any error or
judgment made in good faith by a responsible employee thereof and, except to
the limited extent set forth in this paragraph, shall not incur any liability
for any other errors or omissions, unless it shall be proved that such error or
omission was a result of the negligence or willful misconduct of said
employee. In the event a payment is
assessed by the IRS due to an error by ACS, the City will be responsible for
paying the correct Arbitrage Amount and ACS (and its insurers) responsibility
shall not exceed the amount of any penalty or interest imposed on the Arbitrage
Amount as a result of such error. If in
the event that the City has made an error or omission, then it is the City’s
sole responsibility and cost to rectify the error or omission.
The scope of this Contract
would cover the services, as stipulated in Attachment A for arbitrage
compliance reports. ACS has provided for
a $2,000 contingency budget in this Contract if the scope of the
Contract needs to expand for any services after discovery. 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.
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.
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.
ACCEPTED BY:
______________________________
Allen Bogard, City Manager
ATTEST:
______________________________
Glenda Gundermann, City
Secretary
APPROVED:
______________________________
Joe Morris, City Attorney
List of Reports needed from
10/1/06 through 9/30/07, to be completed within 60 days after the report date,
follows. ACS needs to receive all data,
documents and information, as requested by ACS from the City, on or
before 21 days after the report date.
