3-Attachment 2 - Scope of Work.docx

Attachment 2 - Scope of Work

The awarded Offeror shall provide arbitrage compliance computation services for the Salt Lake City Treasurer’s Office and Department of Public Utilities in accordance with IRS regulations for any bonds of such parties that require arbitrage compliance computation services during the term of this Agreement. The services shall also be available to the Community Reinvestment Agency of Salt Lake City, a public entity and subdivision of the State of Utah.

The responsibilities of the awarded Offeror include, but shall not be limited to, the following, where all statements of responsibilities for Consultant providing services for City shall, for CRA bonds, also be deemed to be statements of responsibilities for Consultant providing services for the CRA:

A. Provide City with expert assistance regarding required documents and data collection.

B. Determine the bond funds subject to arbitrage rebate and IRS filing deadlines.

C. Provide a legal opinion or a CPA assurance letter that arbitrage calculation results are consistent with the rebate requirements or an explanation as to why such opinion is unnecessary.

D. Request all relevant investment data from City or trustee and perform relevant review and analysis.

E. Calculate and record the bond yield. The awarded Offeror shall calculate bond yield on a fiscal year basis using City’s fiscal year of July 1st through June 30th.

F. Input the investment data and calculate the arbitrage rebate liability in compliance with Section 148(f) of the Internal Revenue Code of 1986.

G. Prepare IRS Form 8038-T with a transmittal letter covering all instructions for accurate and timely filing to the IRS.

H. Based on the professional opinion of the awarded Offeror, provide the necessary arbitrage rebate reports, supporting documentation and executive summary, and if applicable, the accompanying IRS Form 8038-T to City describing the calculation method employed and assumptions and conclusions. Perform all necessary, or as required by the IRS, arbitrage rebate calculations through the term of this Agreement.

I. Calculate the bond issue's excess investment earnings (cumulative rebate liability), taking into account any proceeds that are or have become subject to the yield restriction requirements.

J. Perform all anniversary arbitrage rebate calculations through the term of this Agreement.

K. Verify that the bond issue is subject to the rebate requirement.

L. Calculate the bond yield.

M. Prepare a schedule that identifies all important relevant information by bond issue including bond yield, expiration dates for temporary or spend-down periods, next rebate calculation date and rebate liability.

N. Identify, and separately account for, all "Gross Proceeds" (as that term is defined in the rebate requirement) of the bond issue, including those requiring allocation analyses due to "transferred proceeds" and/or "commingled funds" circumstances.

O. Discuss the arbitrage rebate report and findings with City to ensure full understanding of the procedures and recommendations in such report.

P. Advise City if exception, yield restriction or yield reduction calculations and reports are required.

Q. Provide an executive summary identifying the methodology employed, major assumptions, conclusions, and any recommendations for changes in City recordkeeping and investment policy.

R. Provide the City and the bond trustees with an electronic copy of the calculation reports.

S. Include appropriate documentation required to support calculations. The originals of all of the foregoing documents shall be delivered to City upon completion of the work and before final payment is made. This provision may be enforced by an order of specific performance and is independent of any other provision of this Agreement.

T. Advise City when arbitrage reports are NOT required.

U. Assist City to maintain cumulative records and provide regular updates for three years after the final maturity of the bonds as required by the IRS.

V. Provide consultation to City in matters related to the arbitrage compliance regulations and the impact of evolving changes. Train City staff on arbitrage-related matters.

W. Provide assistance to City as requested, in the event of an IRS inquiry.

X. Coordinate between the bond trustees and City so all necessary information is provided to perform calculations accurately.

Y. Warrant all services provided to the extent the resulting work product shall remain functional and in good order for as long as the Bonds are outstanding and three (3) years after the retirement of the refunding Bonds. The date of acceptance shall be defined as the date of the final payment for the work.

Z. Other related services including but not limited to refund requests, swap analysis/monitoring, private use monitoring, investment of bond proceeds, GIC bidding, etc.