HomeMy WebLinkAboutC23-208 Arbitrage Compliance SpecialistsJune 01, 2023
Sincerely,
Arbitrage Compliance Specialists, Inc.
Accepted by – Signature Print Name, Title Date
Nicole McKenna, Account Manager
Ms. Julia Bankert, Finance Director
Eagle County, Colorado ("Issuer") P.O.
Box 850
Eagle, CO 81631-0850
2023 Engagement Letter
Arbitrage Compliance Specialists, Inc. (“ACS”) is pleased to present our fees to provide arbitrage compliance
services for the Issuer. 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.
ACS has provided a fee schedule, listed on page 2, to encompass the various elements that we may encounter
during the calculations. ACS’ fees are derived by the complexity of the issuance and the number of years included in
the computation period. 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 assist the Issuer comply with the IRS arbitrage compliance requirements. 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.7520.
Please acknowledge acceptance of this engagement by signing, scanning and e-mailing this letter in its entirety
to Arbitrage Compliance Specialists, Inc at Nicole@rebatebyacs.com.
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DocuSign Envelope ID: 86601CF5-4813-4466-91B4-FE8CE8FE91DC
6/21/2023JILL KLOSTERMAN CFO
Bond Compliance Program Services: Fees
Certificates of Participation, Series 2019$8,310,000.009.00
$500.00Interim Arbitrage Rebate Calculation (“Calculation Period”): 05/28/2022 to 05/28/2023
Certificates of Participation, Series 2021$17,930,000.0010.00
$500.00Interim Arbitrage Rebate Calculation (“Calculation Period”): 08/11/2022 to 08/11/2023
Total $1,000.00
Arbitrage Rebate Calculation Services
Comprehensive Arbitrage Compliance Analysis (Set-Up and Regulatory Updates)Included
Spending Exception Calculations (Per 6-Month Report Period)Included
Commingled Funds and / or Transferred Proceeds Included
Support Services
IRS Audit Assistance (For Bond Issues Completed By ACS)Included
Post-Calculation Services
Debt Compliance Monitoring Service Included
Record Retention Service Included
Calculation Services
1.
2.
3.
4.
Complete an in-depth analysis of the applicable bond documents and debt structure by our professional staff to determine bond
elections and identify applicable exceptions
Information Provided by the Issuer:
1.
a.
b.
i.
ii.
iii.
iv.
v.
vi.
1.
2.
3.
Monitor IRS filing deadlines, election requirements and restricted periods in our database tracking system to ensure timely
reporting.
Review the applicable rebate, yield restriction/yield reduction or spending exceptions in compliance with Internal Revenue
Code of 1986.
Provide calculations with a CPA certified professional opinion that can be relied upon by the Issuer regarding the arbitrage
rebate liability. The report will provide supporting documentation to include the calculation method employed, assumptions
and conclusions.
Issuer agrees to provide all necessary information within 15 days after the end of Calculation Period to provide ACS adequate
time to meet the installment payment deadline as defined in the Tax Code.
Issuer agrees to provide all necessary Bond documents requested by ACS including, but not limited to: Official Statement,
Tax Certificate, IRS Form 8038-G, Escrow Verification Report and if applicable, letter of credit/liquidity facility and/or
swap/hedge agreements.
Issuer agrees to provide all expenditures, investment earnings, and monthly cash investment balances for all gross
proceeds. This includes (but is not limited to) the following funds accounts: Capital Project, Debt Service Reserve,
Interest Sinking, Cost of Issuance, Escrow funds and if applicable all liquidity facility fees paid and/or swap/hedge
payments. To accurately complete the calculations, as required by the Tax Code, data is to include:
Expenditures by date
Earnings by date.
Fair Market Value, if available, at the last day of the computation period.
Exclusion of non-cash transactions such as amortization, accounts payable, and accounts receivable, etc.
Fixed Investment records are to include:
Settlement Date
Purchase Amount
Accrued interest paid on settlement date
Running balance or at the least a monthly balance.
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DocuSign Envelope ID: 86601CF5-4813-4466-91B4-FE8CE8FE91DC
Support Services:
Other Terms & Conditions:
3.
4.
5.
6.
1.
2.
3.
4.
1.
Accrued interest paid on settlement date
Coupon Rate
Maturity Date
Maturity Amount
Discuss the report and findings to ensure a complete understanding of the procedures and recommendations in such report.
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
Advise on how future changes in the Tax Code may affect the debt issue.
Provide technical assistance and consultation in matters related to the arbitrage compliance regulations.
ACS reserves the right to withdraw or re-negotiate the terms of this engagement if our involvement is greater than originally
anticipated. Examples include an increase in ACS’ time, commitment resources utilized to research and/or locate missing
documents or activity requested by ACS, or if information requested by ACS was not provided in the format listed in
“Information Provided by Issuer,” Sections 1(a), and Sections 1(b).
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DocuSign Envelope ID: 86601CF5-4813-4466-91B4-FE8CE8FE91DC
