City of San Antonio - File #: 16-2095

• File #: 16-2095
• Type: Miscellaneous Item
• In control: City Council A Session
• On agenda: 3/31/2016
• Posting Language: An Ordinance authorizing the execution of a contract with The Bank of New York Mellon Trust Company, N.A. to provide Arbitrage Rebate Compliance Services for a period to commence April 1, 2016 and terminate March 31, 2019, with an option to extend the contract for one additional two-year period under the same terms and conditions. [Ben Gorzell, Chief Financial Officer; Troy Elliott, Director, Finance]

Date	Ver.	Action By	Action	Result
3/31/2016	1	City Council A Session	adopted	Pass

DEPARTMENT: Finance


DEPARTMENT HEAD: Troy Elliott


COUNCIL DISTRICTS IMPACTED: City-Wide


SUBJECT:

Arbitrage Rebate Compliance Services Contract for the City of San Antonio


SUMMARY:

This Ordinance authorizes the execution of a contract with The Bank of New York Mellon Trust Company, N.A. to provide Arbitrage Rebate Compliance Services for a period to commence April 1, 2016 and terminate March 31, 2019, with an option to extend the contract for one additional two-year period under the same terms and conditions.


BACKGROUND INFORMATION:

The City contracts with qualified firms to provide Arbitrage Rebate Compliance Services in connection with the City's financings. Laws codified in Internal Revenue Service Code Section 148 and regulations promulgated by the United States Treasury mandate that interest income derived from the investment of tax-exempt proceeds in excess of the permitted arbitrage rate must be rebated to the United States Government. Arbitrage rebate compliance requires that computations be performed which are consistent with the complex technical requirements contained in the aforementioned laws and regulations to determine the rebate amount, if any. Any rebate amount due must be reported and paid to the United States Government. The scope of Arbitrage Rebate Compliance Services includes a comprehensive review of the City's outstanding tax-exempt obligations, debt service funds, debt service reserve funds, capital projects funds and other funds, into which tax-exempt proceeds have been deposited. Such services also encompass calculation and verification of the arbitrage rate for each tax-exempt obligation for which an arbitrage rebate computation is required, on-going service with respect to questions that may arise from time to time concerning arbitrage rebate, and assisting the City in responding to queries posed to the City related to arbitrage.

A Request for Proposal (RFP) for Arbitrage Rebate Compliance S...