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HomeMy WebLinkAboutBerens-Tate Consulting Group-Professional Services Agreement-03.19.2007 3--19 0 7 Ty Iv.�va 7 - 1V BERENS-TATE CONSULTING GROUP SPECIALIZING IN PUBLIC SECTOR ACCOUNTING AND FINANCE March 7, 2007 Michelle Weidner City of Waterloo 715 Mulberry Street Waterloo,IA 50703 Dear Ms. Weidner: Thank you for the opportunity to provide arbitrage rebate services to City of Waterloo ("City"). This letter outlines my understanding of the project. SCOPE We will perform an arbitrage rebate calculation for the following bonds for the period ending June 30,2007: • City of Waterloo $11,640,000 Sewer Revenue Refunding Bonds Series 2004A PROCEDURES We will perform the following procedures: • Review of bond documentation (official statement, arbitrage certificate, investment information, IRS Form 8038,etc.). • Determine the bond yield. • Compute the rebate amount (based upon the net future value of the non-purpose investments or the"cash flow method"). • Work closely with bond counsel to resolve any questions which may arise. • Work with you to determine the appropriate investment strategy for each bond issue/account, as well as the funding of and accounting for any rebate liability which might exist. 10050 REGENCY CIRCLE / SUITE 400 OMAHA, NEBRASKA 68114 • (402) 391-6188 • FAX (402) 391-7363 • REPORTS We will prepare the following reports: • Summary report-describes procedures performed and the amount of any rebate owed. • Arbitrage rebate report - includes details of all transactions, sources of information, assumptions, as well as the calculation. • IRS Form 8038-T-prepare the proper IRS Form if any rebate is owed and paid at this time. CITY'S RESPONSIBILITIES The City is responsible for providing the Consulting Group with the documentation necessary to complete the calculation. This would include bond documentation (official statement, arbitrage certificate, 8038, etc.), as well as expenditure and investment information (trust statements/activity summary by fund, investment summary, disposition of bond proceeds, etc.). In determining the rebate amount for the Bonds, we will rely on the information provided by you without independent verification. We will retain copies of the records you have supplied us, along with our work papers for your engagement. However, our work papers and files are not a substitute for the original records of the client. FEES We estimate our fees for the project will be $3,000-$4,000 plus actual out-of-pocket expenses (travel, delivery charges, etc.). This fee is dependent on the availability, quality, and completeness of the records noted above and will be due within 30 days of completion of the project. If unexpected problems arise which are beyond the scope of our work and would affect our fee quote we would discuss these with you and obtain the necessary authorization from you before performing any additional procedures. We look forward to working with the City of Waterloo on this project and appreciate this opportunity to serve you. Sincerely, BERENS-TATE CONSULTING GROUP Chris D. Berens If you agree with t is outlined in this letter, please sign in the space provided below and return a copy to me Accepted by: Date: 3 -/ 9--O7 BERENS-TATE CONSULTING GROUP SPECIALIZING IN PUBLIC SECTOR ACCOUNTING AND FINANCE March 7,2007 Michelle Weidner City of Waterloo 715 Mulberry Street Waterloo,IA 50703 Dear Ms. Weidner: Thank you for the opportunity to provide arbitrage rebate services to City of Waterloo ("City"). This letter outlines my understanding of the project. SCOPE We will perform an arbitrage rebate calculation for the following bonds for the period ending May 31, 2007: • City of Waterloo $6,900,000 General Obligation Bonds Series 2002A • City of Waterloo $8,825,000 General Obligation Bonds Series 2003A PROCEDURES We will perform the following procedures: • Review of bond documentation (official statement, arbitrage certificate, investment information,IRS Form 8038, etc.). • Determine the bond yield. • Compute the rebate amount (based upon the net future value of the non-purpose investments or the"cash flow method"). • Work closely with bond counsel to resolve any questions which may arise. • Work with you to determine the appropriate investment strategy for each bond issue/account, as well as the funding of and accounting for any rebate liability which might exist. 10050 REGENCY CIRCLE / SUITE 400 OMAHA, NEBRASKA 68114 • (402) 391-6188 • FAX (402) 391-7363 REPORTS We will prepare the following reports: • Summary report-describes procedures performed and the amount of any rebate owed. • Arbitrage rebate report - includes details of all transactions, sources of information, assumptions, as well as the calculation. • IRS Form 8038-T-prepare the proper IRS Form if any rebate is owed and paid at this time. CITY'S RESPONSIBILITIES The City is responsible for providing the Consulting Group with the documentation necessary to complete the calculation. This would include bond documentation (official statement, arbitrage certificate, 8038, etc.), as well as expenditure and investment information (trust statements/activity summary by fund, investment summary, disposition of bond proceeds, etc.). In determining the rebate amount for the Bonds, we will rely on the information provided by you without independent verification. We will retain copies of the records you have supplied us, along with our work papers for your engagement. However, our work papers and files are not a substitute for the original records of the client. FEES We estimate our fees for the project will be $2,500-$3,000/each plus actual out-of-pocket expenses (travel, delivery charges, etc.). This fee is dependent on the availability, quality, and completeness of the records noted above and will be due within 30 days of completion of the project. If unexpected problems arise which are beyond the scope of our work and would affect our fee quote we would discuss these with you and obtain the necessary authorization from you before performing any additional procedures. We look forward to working with the City of Waterloo on this project and appreciate this opportunity to serve you. Sincerely, BERENS-TATE CONSULTING GROUP Chris D. Berens If you agree with the ices outlined in this letter, please sign in the space provided below and return a copy to me. Accepted by: Date: 3 i 9 o 7 •T-