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HomeMy WebLinkAbout2013-044 Engagement Ltr - Hawkins Delafield & Wood DELAFIELD & WOOD LLP PHONE: 212-820-9300 ONE CHASE MANHATTAN PLAZA NEW YORK FAX: 212-514-8425 NEW YORK, NY 10005 WASHINGTON WWW.HAWKINS.COM NEWARK HARTFORD LOS ANGELES SACRAMENTO SAN FRANCISCO PORTLAND (212) 820-9410 February 4, 2013 Mr. D.L "Lee" Tuneberg Director of Administrative Services & Finance City of Ashland 20 East Main Ashland, Oregon 97520 Re: City of Ashland, Jackson County, Oregon Water Revenue Bonds, Series 2003 Arbitrage Rebate and Yield Restriction Compliance Services Dear Mr. Tuneberg: This letter sets forth the terms and conditions of the engagement of Hawkins Delafield & Wood LLP ("Hawkins") by the City of Ashland, Jackson County, Oregon (the "City") to provide legal advice regarding arbitrage rebate and yield restriction compliance with respect to the above-mentioned bond issue designated by the City, (the 'Bond Issue"). The advice involves applying applicable tax toles contained in Section 148(1) of the Internal Revenue Code of 1986 (the "Code") and regulations of the United States Department of the Treasury (the "Regulations"). In providing such advice, Hawkins may render, as appropriate, some or all of the services listed under Scope of Services set forth in Exhibit A hereto. It is understood that such services do not include those under Services Not Provided. Excluded services may be provided by Hawkins at the request of the City pursuant to a separate fee arrangement. The City will undertake to provide or cause to be provided to Hawkins such data and information as requested by Hawkins from time to time to enable Hawkins to render advice prior to each date on which calculations are to be performed (each, a "Calculation Date") with respect to arbitrage rebate and yield restriction compliance. The City will notify Hawkins of any early redemption or refunding of any of the bonds of the Bond Issue, and of any derivative products such as swaps or hedges that relate to the Bond Issue within 15 days of the relevant transaction date. Hawkins will not disclose to any third party person any data or information provided to Hawkins or developed pursuant to this engagement without the prior written consent of the City. The fees payable to Hawkins for providing rebate advice for the Bond Issue are due and payable in the amounts and at the times as set forth on the fee schedule in Exhibit B hereto. Hawkins will begin gathering and cataloguing of necessary documentation, initial review of documents, and setting up of new transactions on Hawkins' accounting, records, and arbitrage rebate database systems upon receipt of this signed engagement letter. 02/5/201312:17PM 1236163 I.DOC j Page 2 The City or Hawkins may terminate this engagement by written notice to the other party, such termination to be effective immediately; provided that, if Hawkins terminates this engagement prior to delivering any rebate or penalty advice, the Set-Up Fee (if previously paid) shall be refunded to the City, and if the City terminates this engagement other than as of the date of delivery of any rebate or yield restriction calculation and opinion with respect to a Calculation Date, the City shall pay a termination fee as determined by both parties, but not in excess of the fee that would be payable for services actually performed with respect to the next succeeding Calculation Date. Hawkins may not assign its rights and obligations under this engagement, whether in whole or in part, without the prior written consent of the city. The City waives any and all conflicts-of-interest that may have arisen or may arise hereafter from this engagement or from any attomey-client relationship Hawkins may have had, may have currently, or may have in the future, with other parties involved in some manner with the Bond Issue or the City. If this engagement letter is agreeable to you, please arrange to have an authorized officer sign two copies, retain one signed copy for the City's record and return one signed copy to Mr. Takashi Iwata. Very truly yours, ? By: Kam Wong Tax Partner +L Accepted this .7 S day of «Ai" *"y, 2013: City of Ashland, Jackson County, OR. By: Idee, n;n=tft4~ Title: fiw4-.ucc Zia4ero L nn A 17 ZED FORM Sign ure 3-I- 1.7 Date I 2/52013 12:17 PM 1236163 I.DOC EXHIBIT A SCOPE OF SERVICES Transaction Set-Up • Consult with the client regarding the nature of the bond program and the appropriate source information necessary to prepare the rebate and yield restriction calculations. Discuss and address any concerns and questions of the client. • Review documents for any special elections and eligibility for any spending exceptions. Determine Bond Year and relevant IRS filing dates. Consult with the client regarding Bond Year selection if no selection was made at closing. Arbitrage Rebate and Yield Restriction Report or Penalty In Lieu OfArbitraQe Rebate Report • Review documents with respect to each bond issue including, but not limited to, the Tax Certificate, IRS filings, portions of the Official Statement, the Verification Report (if any), and any documents relating to hedge transactions, investments, derivative products, and defeasances. • Review and analyze debt service, original issue discount or premium, sources and uses of funds, and arbitrage yield by preparing schedules from source information such as the dated date, issue date, maturity dates, interest payment dates, bond coupons, redemption dates, initial public offering prices (or yields), and the flow of funds. Determine whether any yield adjustments resulting from "deep discount bonds" or "premium bonds" are required. • Review and analyze the portfolio of investments in which gross proceeds of each bond issue are invested and reinvested, including the amount and type of investment (e.g., U.S. Treasury securities, bank certificates and deposits, guaranteed investment contracts, repurchase agreements, or other instruments), the purchase and sale dates, the purchase and sale prices, the coupon rates, the maturity dates, the interest payment dates, the investment earnings, and the funds and accounts in which such investments are held. • Determine if any of the arbitrage exceptions are applicable and available to the subject bond issue. Determine if such available exception actually reduces the arbitrage rebate liability. Undertake the strategy., that best serves the client. Exceptions include the 6-month spending exception, 18-month spending exception, 24-month spending exception, $100,000 debt service fund earnings exception and $2,500,000 annual debt service exception. • Review and analyze whenever necessary the fair market price or present value of investments when. the same are allocated to or de-allocated from each bond issue. • Review and analyze, using the future value methodology prescribed by the Regulations, the amount of rebate liability with respect to each bond issue once each year as of the end of each bond year and as of the final maturity or redemption of such bond issue, taking into accounts adjustments required or permitted by the Regulations. • Review and analyze the amount of the penalty in-lieu-of arbitrage rebate with respect to each bond issue for which an election to use such penalty was made. • Review and analyze if any gross proceeds of each bond issue are subject to yield restriction. Calculate thhe-amount of all applicable yield restriction liability. DD>cf.I/PW New York. Los Angeles. San Francisco. Sacramento -Washington D.C. • Newark. Portland. Hartford Financial Analysis & Services Group EXHIBIT A • Prepare and provide to the client a detailed Arbitrage Rebate and Yield Restriction Compliance Report (which also contains the Hawkins tax opinion as described below) with respect to each bond issue as to the amount of rebate and yield restriction liability and summarizing the assumptions and results of the arbitrage rebate and yield restriction calculations, with all relevant calculation schedules and input information attached thereto. • Assist the client in determining its record-keeping, accounting and allocation methodologies and related areas that may better assist in complying with the arbitrage rebate and yield restriction requirements and reduce administrative burden. • Prepare and provide to the client detailed instructions with respect to each bond issue as to the filing of the IRS Form 8038-T with the Internal Revenue Service or, at the direction of the client, make such filing on behalf of the client or any of its borrowers. • Deliver to the client a tax opinion of the firm that the methodology used in computing the rebate and yield restriction liabilities comply with the Code and the Regulations. • Assist the client in the event of an audit, examination, or inquiry made by the Internal Revenue Service, or any other federal or state governmental or regulatory bodies regarding the calculation of the rebate and yield restriction liabilities. Such assistance is limited to the furnishing of rebate and yield restriction information and calculations, the explanation of the methodology and assumptions used in determining such liabilities, and related technical and numerical matters. Variable Rate and HedQtnQ Transactions • Review additional documents such as the letter of credit agreement and reimbursement agreement, as necessary. • Obtain from the client, data regarding actual interest payment amounts and dates and any early redemption of principal and actual letter of credit and/or liquidity fee payments amounts and dates. • Advise as to the calculation of the bond yield based on the Code and the Regulations regarding variable rate bonds. • Obtain from the client, records and data regarding payments made and received with respect to qualified hedges (i.e., interest rate swaps and interest rate caps) for the bonds. Transferred Proceeds and Universal Can Calculations • Analyze and advise as to the transferred proceeds of each bond issue, if any, arising under the Code and the Regulations. • Advise as to whether any alternate transferred proceeds rules may be available to the client and identify whether any potential benefits may arise from its application. • Determine, under the universal cap rules, the amount of gross proceeds in excess of the value of the bond issue and deallocate the excess amount from such issue and reallocated as replacement proceeds of other bond issues to the extent possible. D ' 6 wDG ur New York • ens AnSeles • San Francisco • Sacramento • Washington D.C. • Newark • Portland • Hartford rlEtuD Financial Armlysis & Seniors Group ExHjBIT A Commingled Funds Calculations • Identify any accounts that contain gross proceeds of each bond issue as well as other funds of the issuer. • Analyze the nature of the commingled investments and determine the available allocation methodologies for allocating such funds. • Advise as various allocation methodologies available under the Regulations and their effects on the rebate and yield restriction liabilities. All of the above services will be rendered or performed diligently to permit the client to make all deadlines for the filing of necessary forms with, and the submission of any check for payment of the rebatable arbitrage amount to, the Internal Revenue Service. All such tasks are for the sole purpose of calculating arbitrage rebate and yield restriction liabilities and any penalty in lieu of rebate. It is understood that Hawkins will be entitled to rely entirely on information provided by the client or on behalf of the client, including by the trustee or any agents and assigns, without independent verification. Services Not Provided It is understood that none of the services listed above are intended to constitute an audit of the client's operations, financial policy, or investment policy. It is further understood that Hawkins will not be engaged, and Hawkins will not be obligated, to perform any of the following: • Independently determine whether there were "prohibited payments," "imputed receipts" or other similar payments or receipts within the meaning of the Regulations. • Represent or furnish legal advice to the client in the event of an audit, examination, or inquiry made by the Internal Revenue Service or any other federal or state governmental or regulatory bodies with respect to any aspect of any bond issue or the program financed by the proceeds of any bond issue, other than those technical and numerical matters that are covered in the Scope of Services above. • Consider any information furnished to Hawkins pursuant to a rebate engagement for any purpose other than determining the rebate, yield restriction or penalty liability on each bond issue. • Update any report or opinion delivered by Hawkins because of events occurring, changes in the Regulations, or data or information received subsequent to the date of delivery of such report or opinion. D D" ti WOOS LL. Nm York • Lot Angeles • San Francisco • Sacramento • Washington D.C. • Ne.ark - Portland • Hartford Financial Analysis & Services Group EXHIBIT B . FEE SCHEDULE ~Amounto Base Fees (per bond issue) k.ar'-. Engagement Fee: One time fee, per issue. Waived Basic Report Fee: The report includes a summary of results, our legal opinion, summaries of $2,000 assumptions and methodologies, detailed schedules, and, if necessary, a Form 8038-T with instructions for submission to the IRS. Each report covers a period of up to one year. At the request of the client, Reports may also be provided in PDF electronic file format at no additional charge. Increin'en[al Fees (per tiotid issue - fifaictAmounr~'. Extended Computation Periods Fee: This fee reflects the incremental time and effort required for $500/per year preparing rebate and yield restriction analyses covering periods in excess of 12 months. Transferred Proceeds Analysis Fee: Transferred proceeds occur as a result of bond refundings. This +$1,000 fee reflects the incremental time, effort, and expertise required for calculating transferred proceeds. Transferred proceeds analyses are generally complex. The fee is based on the scope and complexity of the required calculations. Yield Restriction Analysis: This fee reflects the additional analysis for yield restriction compliance. +$1,000 Commingled Fund Analysis Fee. This fee reflects the incremental time and effort required for +$1,000 preparing allocation analyses when the issuer invests and expends its funds on a commingled basis. The fee is based on the scope and complexity of the required calculations. Debt Service Fund Test. This fee reflects the time and effort to determine whether funds qualify as $1,000 bona fide debt service funds. Universal Cap Analysis Fee: The amount of gross proceeds allocable to the bond issue at any time +$1,000 may not exceed the value of the bond issue. This fee reflects the incremental time, effort, and expertise required for calculating the Universal Cap. The Universal Cap analyses are generally complex. The fee is based on the scope and complexity of the required calculations. Cash Flow Recreationlincomplete Records Fee.- This fee reflects the time and effort to recreate the Billed at generally - cash flows from previous rebate or yield restriction calculations and/or having to adjust for incomplete applicable analyst records. hour) rates Variable Rate Transaction Fee: This fee reflects the additional time and effort required in calculating +$1,000 the variable rate bond yield. Hedging Transaction Fee: This fee reflects the additional time and effort required in calculating the +$1,000 rebate liability and/or yield restriction liability with respect to interest rate swaps and/or interest rate caps. ddifional",Fees ' Amount Legal Advice to Extraordinary Items: The foregoing fee schedule does not include the time and effort Negotiated separately required in providing legal advice or counsel with respect to extraordinary items not included in our standard scope of services (e.g., legal representation of the issuer or client in the event of an IRS audit, etc.). For these items, we are typically compensated at our customary hourly rates for FAS members, partners, associates and other staff or under such other arrangement as may be reached with the client. In no event will any such additional services be rendered unless expressly requested and approved by the client. Expedited Services: This fee is charged for an arbitrage calculation prepared due to an IRS Audit or IRS Inquiry $500 Refund Request: The amount of time reflected to complete the Form 8038R. $500 Travel Expenses: We expect to be reimbursed for any actual travel costs (e.g., airfare, taxi, and hotel) Actual incurred at the request of the client. All travel arrangements will be made at the lowest possible cost Cost consistent with prudent business practice. Disbursements: We expect to be reimbursed for any actual costs incurred for deliveries, duplicating, Actual telephone, etc. Cost • d p w New York • lM Angeles • San Francisco • Sacramento • WashingtOn D.C. • Nmark • Pordand • Hartford Finandcl Arwlystt & Semkes Group EXHIBIT B Descriptions - Howl";:Rates - Tax Partner $650 Tax Associate $425 FAS Director $350 FAS Associate Director $225 FAS Consultant $175 FAS Financial Analyst $125 FAS Administrative Assistant - $100 Based on the foregoing schedule and assuming no unusual circumstances, the estimated fee for a five year arbitrage rebate compliance report for a fixed rate bond issue would be $4,000, as shown below. Engagement Fee (one time fee): Waived Basic Report Fee: $2,000 Extended Computation Periods Fee: $2,000 Total Fees: $4,000 D G' i WOOD tv New York . Los Angeles • San Franclsto • Sacramento • Washington D.C. • Newark • Portland . Hartford Financial Analysis & Services Group iALAS ATTORUEYS' LIAOILITY ASSURANCE SOCIETY, INC., A RISE RETENTION CROUP February 11, 2013 Hawkins Delafield &Wood LLP One Chase Manhattan Plaza 42nd/43rd Floors New York, NY 10005-1401 To Whom It May Concern: CONFIRMATION OF INSURANCE We hereby confirm that Hawkins Delafield &Wood LLP has Professional Liability Coverage under Policy ALA#1893 with an annual limit of $60,000,000 per claim and $120,000,000 in the aggregate with the right, under stated conditions, to purchase extended reporting rights upon termination of such Policy by ALAS. The self-insured retention under such Policy is $500,000 each claim up to an aggregate of $1,000,000 and $100,000 each claim thereafter. The Policy effective date is from January 1, 2013 to January 1, 2014. Such Policy is subject to the terms, conditions, limitations and exclusions stated therein. ATTORNEYS' LIABILITY ASSURANCE SOCIETY, INC., A RISK RETENTION GROUP By: / Date: February 11, 2013 Nancy J. Montroy Vice President - Director of Underwriting 311 South Wacker Orire. Suite 5100 Chicago, It 60606-6622 .1312.897-6900*312897 6901 w6,aatas.com HAWKI-1 OP ID: TG CERTIFICATE OF LIABILITY INSURANCE 0 °A'1/25113 ' 01125/13 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(les) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsements . PRODUCER 973-467-8005 CONTACT Bollingger, Inc. NAME: 101 Jf-K Parkway 973-921-2876 ac0 io Ea: AIC No: Short Hills, NJ 07078-5000 E-MAIL Donna Mercadante ADDRESS: INSURER(S) AFFORDING COVERAGE NAIC R INSURER A: Great Northern Insurance Co. 20303 INSURED Hawkins Delafield & Wood LLP INSURERS: Federal Insurance Company 124 One Chase Manhattan Plaza New York, NY 10005 INSURER C: INSURER D : INSURER E : I INSURER F; COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. ILTR TYPE OF INSURANCE ADDL SUER POLICY NUMBER MWDIDY/YYEFF POLICY UP YY MM/DD/YYYY LIMITS GENERAL LIABILITY EACH OCCURRENCE $ 1,000,00 A X COMMERCIAL GENERAL LIABILITY 35829933 01113113 01113114 PREMISES Ea occurrence $ 1,000,00 Fy7 CLAIMS-MADE OCCUR MED UP (My one person) $ 10,000 PERSONAL S ADV INJURY S 1,000,00 GENERAL AGGREGATE $ 2,000,08 GENT AGGREGATE LIMIT APPLIES PER PRODUCTS - COMP/OP AGG $ include POLICY PRO- LOG E JECT F-1 AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT 1,000,00 Ea accident S B ANY AUTO 74992354 01/13113 01/13114 BODILY INJURY (Per person) $ ALL OWNED SCHEDULED BODILY INJURY (Per accident) S AUTOS AUTOS X HIRED AUTOS X NON-OWNED PROPERTY DAMAGE S AUTOS Peraoddent E X UMBRELLA DAB X OCCUR EACH OCCURRENCE $ 9,000,00 B UCESS LIAB CLAIMS-MADE 79836646 01113/13 01113114 AGGREGATE $ 9,000,00 DED X RETENTIONS 10,000 $ WORKERS COMPENSATION X Y4C STATU- TH- AND EMPLOYERS'LUABILITY YIN T RYLIMIT ER B ANY PROPRIETORIPARTNERIEXECUTIVE 71636057 12131112 12131/13 E.L EACH ACCIDENT $ 1,000,00 OFFICERMIEMBER EXCLUDED? ~ NIA (Mandatory In NH) E.L. DISEASEEA EMPLOYE S 1,000,00 be unde °ESCRIPTTIION OF OrPERATIONS hel. E. L. DISEASE -POLICY LIMIT $ 1,000,00 DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (Attach ACORD 101, Addhlonal Remarks Schedule, R more space N required) CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE EVIDENCE OF INSURANCE ONLY THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE ©1988-2010 ACORD CORPORATION. All rights reserved. ACORD 25 (2010105) The ACORD name and logo are registered marks of ACORD DELAFIELD & WOOD LLP PHONE: 212-820-9300 ONE CHASE MANHATTAN PLAZA NEW YORK FAX. 212-514.8425 NEW YORK, NY 10005 WASHINGTON WWW.HAWKINS.COM NEWARK HARTFORD LOS ANGELES SACRAMENTO SAN FRANCISCO PORTLAND (212) 820-9432 February 4, 2013 Mr. D.L "Lee" Tuneberg Director of Administrative Services & Finance City of Ashland 20 East Main Ashland, Oregon 97520 Re: City of Ashland, Jackson County, Oregon Water Revenue Bonds, Series 2003 Arbitraee Rebate and Yield Restriction Compliance Services Dear Mr. Tuneberg: In accordance with email correspondence attached, enclosed are two copies of the proposed engagement letter. If the terms are agreeable to you, please arrange to have the two copies signed, retain one signed copy for the City of Ashland's record and return one signed copy to me. Please call me if you should have any questions regarding the enclosure. We look forward to working with you on this rebate engagement. Very truly yours, Takashi Iwata, Director Financial Analysis & Services Group cc: Jennifer Booth Cordova, Hawkins Delafield & Wood LLP 02/5/201312:17PM 1236163 1.DOC Page 1 / 1 CITY OF CITY RECD PPER ASHLAND r..i° DATE PO NUMBER 20 E MAIN ST. 3/1/2013 11469 ASHLAND, OR 97520 (541) 488-5300 VENDOR: 017398 SHIP TO: Ashland Finance Deartment HAWKINS DELAFIELD 8 WOOD LLP (541) 488-5300 ONE CHASE MANHATTAN PLAZA 20 E MAIN STREET NEW YORK, NY 10005 ASHLAND, OR 97520 FOB Point: Req. No.: Terms: Net Dept.: Req. Del. Date: Contact: Lee Tuneberg Special Inst: Confirming? NO Quantity. Description Unit Price Ext. Price. Arbitrage Review of 2003 Water Revenue 10,000.00 Bonds and Related Projects Per attached engagement letter dated February 4, 2013. SUBTOTAL 10 000.00 BILL TO: Account Payable TAX 0.00 20 EAST MAIN ST FREIGHT 0.00 541-552-2010 TOTAL 10,000.00 ASHLAND, OR 97520 Account Number Project Number Amount Account Number Project Number Amount E 670.08.18.00.60410 10,000.00 Authorize Signature VENDOR COPY FORM#3 CITY OF A r~ L t s~ for a Purchase Order ASHLAND REQUISITION Date of request: Zlzs/~i3 Required date for delivery: Vendor Name f>Lr}c✓ICrNS b"4FI41-6 WDO D LL-P Address, City, State, Zip Qk//-' Ctf7fS6 HrAUr{fi7TNN 001_.q Z,4 , IV" YOGIC Ny _ 10ee Contact Name & Telephone Number K4M)a14G, be cy •JIA,41 / Ti4C45yfr 1`~✓.~ra 2/Z Stn 9300 Fax Number AI z - 82,0 - 43r0 SOURCING METHOD ❑ Exempt from Competitive Bidding ❑ Emergency ❑ Reason for exemption: ❑ Invitation to Bid (Copies on file) ❑ Form #13, Witten findings and Authorization ❑ AMC 2.50 Date approved by Council: ❑ Written quote or proposal attached ❑ Written quote or proposal attached ❑ Small Procurement Cooperative Procurement Less than $5.000 ❑ Request for Proposal (Copies on file) ❑ State of Oregon ❑ Direct Award Date approved by Council: Contract # ❑ Verbal/Written quote(s) or proposal(s) ❑ State of Washington Intermediate Procurement ❑ Sole Source Contract # GOODS & SERVICES ❑ Applicable Form (#5,6, 7 or 8) ❑ Other government agency contract $5,000 to $100,000 ❑ Written quote or proposal attached Agency ❑ (3) Written quotes attached ❑ Form #4, Personal Services $5K to $75K Contract # PERSONAL SERVICES ❑ Special Procurement Intergovernmental Agreement $5.000 to $75.000 ❑ Form #9, Request for Approval ❑ Agency Less than $35,000, by direct appointment [_1 Written quote or proposal attached Date original contract approved by Council: (3) Written proposals attached Date approved by Council: (Date) ❑ Form #4, Personal Services $5K to $75K Valid until: _(Date) I Description of SERVICES Total Cost ar2i3rTRA►dA- Q!✓rEw OF AOO3 w.t-rrri 11¢vd'VLA9 v"O-s ,4rv~ i(Ettr+.-7 PrLoJ<_trS ID,OrSd Item # Quantity Unit Description of MATERIALS Unit Price Total Cost TOTAL COST Per attached quotelproposal $ Project Number Account Number Account Number Account Number *Expenditure must be charged to the appropriate account numbers for the financials to accurately reflect the actual expenditures. IT Director in collaboration with department to approve all hardware and software purchases: ITDirector Date Support-Yes/No By signing this requisition form, I certify that the City's public contracting requirements have been satisfied. e Employee Signature: Department Head Signature: /J V, d+'-~-~-~"' .h- (Equal to or greater than $5, City Administrator: (Equal to or greater hap$25,000) Funds appropriated for current (fiscal year. YES / NO Y 112v13 Finance Director- (Equal toorgreaterthan $5,000) Date Comments: %9r5 iS "OT- SP&IetcA-ccy 6kr r7 rS A Ue-64-1 /LL¢ 4o-,_ rrt vTOF 7"ffri F r/J R T4.WSF1 FPZ&W CeN_F1AJ6WCV WIZ-L df- 4JE /F nl~✓~9/~Q Form #3 - Requisition CITY OF FORM #4 -AS H LAN D DETERMINATIONS TO PROCURE PERSONAL SERVICES $5,000 to $75,000 To: Dave Kanner, Public Contracting Officer From: Lee Tuneberg, Administrative Services/Finance Director Date: February 25, 2013 Re: DETERMINATIONS TO PROCURE PERSONAL SERVICES In accordance with AMC 2.50.120(A), for personal services contracts greater than $5,000, but less than $75,000, the Department Head shall make findings that City personnel are not available to perform the services, and that the City does not have the personnel or resources to perform the services required under the proposed contract. However, the City Attorney, the Public Contracting Officer, or Local Contract Review Board, can require a formal solicitation for bids to ensure'that the purposes of this chapter are upheld. Background As part of the recent bond issue Bond Counsel requested a review be done of the 2003 GO bonds that were being refunded, in part, by the current issue. 'Bond Counsel needed assurance an arbitrage review would be done to ensure compliance with SEC requirements relating to Section 148(f) of the IRS Code of 1986. The bond sale would have been delayed significantly which probably would have resulted in a less lucrative sale than was achieved on February 7. This contract, already reviewed and approved by city legal counsel, hires members of the HD&W firm to perform such a review on site to expedite the process and so that staff can learn from the firm how best to manage such records for the 2013 GO bonds and into the future for all bond issues. The firm and the consultant that will visit Ashland have arbitrage calculation expertise necessary to perform all necessary reviews and calculations. The discounted preliminary fee is $4000 plus travel costs. It is likely that, given the condition of records extending. back 10 years that added work will result in increased costs. Staff is currently estimating the resultant costs, including travel, to be in the range of $6000 to $10,000. Pursuant to AMC 2.50.120(A), has a reasonable inquiry been conducted as to the availability of City personnel to perform the services, and that the City does not have the personnel and resources to perform the services required under the proposed contract? Existing City staff has no experience in such calculations or compliance with Section 148 of the 1986 tax code. Form #4 - Department Head Determinations to Procure Personal Services, Page 1 of 1, 212 712 01 3