10 - Arbitrage Rebate Compliance Services Agreement

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Item No. 10 TO: City Council John Godwin, City Manager FROM: Gene Anderson, Finance Director SUBJECT: AGREEMENT FOR ARBITRAGE REBATE COMPLIANCE SERVICES DATE: 10-23-2018 BACKGROUND: First Southwest has been providing arbitrage rebate compliance services to the City since February 1997. Their services have been efficiently and professionally performed. The IRS has never found fault with any of their calculations. STATUS OF ISSUE: The current five year agreement with First Southwest expires this month. The proposed agreement is also for a five year period with the option to terminate the agreement for any reason with thirty days written notice. BUDGET: The annual base fee under the agreement is $1,200 (the same as the previous five years). Should the IRS issue a refund request, there is an additional $750 fee for preparing the refund request package required by the IRS. This fee would also cover assisting the City in responding to any IRS correspondence or other requests for information. RECOMMENDATION: Motion to approve the proposed arbitrage rebate agreement with First Southwest.