Broken Arrow City Council
Meeting of: 09-06-2016
To: Mayor and City Council
From: Finance Department
Title:
title
Approval of and authorization to execute a Professional Services Agreement with First Southwest Asset Management, LLC for arbitrage rebate compliance services
End
Background:
Over the years, the City has issued various series of tax exempt obligations including general obligation bonds and certain notes from the Oklahoma Water Resources Board that are subject to the arbitrage rebate requirements pursuant to the provisions of Section 148(f)(2) of the Internal Revenue Code of 1986, as amended. The City has engaged the services of different firms in the past to provide compliance services on an issue by issue basis. Staff believes it will be beneficial to consolidate compliance services for all outstanding issues subject to the requirements for arbitrage rebate with one firm. First Southwest Asset Management LLC is widely recognized for its ability to perform this service and has been recommended by Municipal Finance Services, our financial adviser.
The agreement is for a five year term subject to termination with or without cause by either party with thirty days notice. This service will include reviewing all outstanding issues and performing the required calculations and preparing the required report for any issue for which the calculation is necessary. Funds have been budgeted in the General Fund and the Broken Arrow Municipal Authority budget.
Cost: Not to exceed $49,000
Prepared By: Thomas L. Caldwell, Finance Director
Reviewed By: Legal Department
Assistant City Manager-Administrtion
Approved By: Michael L. Spurgeon, City Manager
Attachments: Agreement with First Southwest Asset Management LLC for arbitrage rebate compliance services
Recommendation:
Approve agreemen...
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