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Home My WebLink About4.07 Agreement Hall, Hill & White Arbitrage Calcuations CITY OF DUBLIN AGENDA STATEMENT • - MEETING DATE: March 13, 1989 SUBJECT :Agreement with Jones Hall Hill & White for the purpose of determining the arbitrage calculations of the Refinanced Certificates of Participation. EXHIBITS ATTACHED � e agreement. RECOMMENDATION . :Authorize the Mayor to sign the arbitrage agreement• with Jones Hall Hill & White. FINANCE STATEMENT :The City is required to pay a one time $1,000 acceptance fee plus , $2,000 each year that' the - calculations are performed. Though there is sufficient money 'budgeted in the Enterprise fund for these costs this year, Staff will need to transfer money from one department to another. DESCRIPTION :The Internal Revenue Code •(IRC) Sections 148 (f) and 149(d) require that arbitrage calculations be performed on the investments made from the proceeds of both an original bond issue and a refinanced bond issue. The purpose is to determine whether the primary plan for the proceeds is to generate income to the issuer by investing the proceeds at a higher yield than the coupon rate of the bonds. This is the first year that Dublin is required to have the arbitrage ' calculations performed. This is because the IRC - required the arbitrage determination on all appropriate bonds. issued after 1986. • The law firm of Jones Hall Hill & White was the City' s counsel during the refinancing process of the 1985 Certificates of Participation. They are familiar with the workings of the issue and are best positioned because of their knowledge of the investments that were made, to perform the work necessary for the arbitrage calculations. Staff recommends that the Council authorize the City' s Mayor to sign the agreement and directs the staff to 1. make the necessary budget adjustments in the Enterprise funds and . 2, - process the payments• necessary to execute the agreement with the law firm of Jones Hall Hill & White for the purpose of making and preparing all necessary calculations and reports to be filed with the Internal Revenue Services. • •suogsjn2aa e gsoTjdds . pus epoO eqj jo (j)sfq uor.}oes £q paarnbaa suotgsjnajso agsgaa tuaO•jaad •V :salsourgaap eql gjim uor}oeuuoo ut apoo erg jo (j)9yj uor}oas "ma eournjdtaoo aoj eprAoad oI Sasssaoeu jualxe aqI oI seoinaas 2utmojjoJ alp aapuea pus tuaojaad jjsgs sSeuaogww sAaN2TOJ,.LV,io sELsna I TIOIZITV :suor rpuoo pus suing 2uriaojjoj erg uodn `IuetaSojdtua tjons gdaoos sicauaopV pure `sSeuaoTly sicojdtua S1D erg ` To Ta I -a `mom :se n .ies "ions epIAoad o;2uuJtM eau sSouaogw pus `peagnbea seopuos uoilu;ndtaoo arg tuaojaad of eouaraadxo pus 2urureal pe 1unb aas sSeuao v ,svaaaum pay :(„opoo„ et ) 9961 JO apo3 enuaAe5 jsuaalul et jo 0)8'T uogoes qp.tm e3uupaOoos in `BOLIOICCV JO sO181s peyran og. s2U11LI 8 ItatumsOArn SSOOXO jo ajsgaa aoj guemeimba' etg o. 2unlsjaa seq ipgisuodsaa pus satTnp uraTaoo e3iBgaepum og pe.r nbea si ctO etjg `Iuomaea2v ;em 0113 jo LO'L uogjoes oI gusnsand `svgagaAd quemeea2v essaZ alp aaptm Sglo Sq pTsd eq og sjuattrfsd essat ui sgsaae;ut jsuotjosaj peprAtpun Ioo p 2uguasaadaa (;,sagsor gaaO„ Kg) (loacoad aaguao oIAi3) uowediogasd jo sajsogg ieD 2(1 pm i 000`O8Z`L1$ s;t ,jo £IaATjep erg pesnuo suq SItO etjj `(„.uataoaa2V lsna j„ et{I) 9951 `1 110 IAj pagsp `gueunaea.2V 3snay s of ausnsand pus `(„luameaa2V essaZ„ atTl) 8961 `1 q0.1-Bp pa;sp ;uouleaaty assaZ peso a pure papuemr atj; of qusnsand `sVa2IEIt. :HZaSSaMj, IA� :(„siCouao;g.v„ papa uleaaq) uquaoni D `oostousad usS `NOIZVHTO PIOO A1VT `IVNOISSMIOlId V 'au-Em, 28 Tux ` WH sr or pue (MID„ pajjea 1119.1011) BituctnleD Jo alsls 0113 Jo smBI eql aapun 2ut1sTxe pure paztus2ao Ajnp uotjsaodaoo jsdiotunm s `1\1:nano To uIO BIZ et{I uaam3aq pus `686T ` Io &sp stgl olun paaalua pus epstu sT `ZN3:wa IrDV SIRS SaOIMILS NOI LV1llD'IVO UZV[EH uoa JimarATWa'IiDV 3joszuw •s aonrer :uotlually 111i�6 VO `oastatruaa trus 0961 alms `aaluo3 o2epuoaequia.rno,I uoiluaodaoo nauZ jeuotssajo.za v `9411tM 29 MR IIOH seuor OZ Nandau asvarid NOIZ11.0 3 IIIFAV • I B. Provide instructions to the City concerning compliance with Section 148(f) of the Code and applicable regulations. C. Consult and cooperate with the City and their officers and employees as necessary to provide for compliance of the Certificates with the requirements of Section 148(f) of the Code. D. Upon the request of City following any rebate calculation, and assuming compliance with rebate instructions provided by Attorneys, provide a legal opinion stating that the exclusion from gross income of interest payable with respect to the Certificates for federal income tax purposes has not been adversely affected by reason of failure to comply with Section 148(f) of the Code. E. Provide periodic memoranda summarizing newly issued regulations, rulings and court decisions regarding Section 148(f) of the Code and describing their application to the Certificates and suggest modifications (if any) of legal documents and procedures relating to the Certificates as may be necessary to conform to such regulations, rulings and court decisions. ARTICLE II • COMPENSATION AND COSTS For the services of Attorneys set forth in Article I, the City shall pay Attorneys an _ _ acceptance fee of $1,000 payable upon execution of this Agreement by the City and an annual service fee of$2,000 per year payable at the end of each annual rebate calculation.. period following performance of duties required of Attorneys for such year. In addition to the compensation set forth in the preceding paragraph, City shall reimburse Attorneys for direct out—of—pocket expenses for Federal Express or other courier, messenger or delivery services, telecopy services, photocopying and (upon request by the City for the same) expenses for travel outside of the State of California in connection with the services rendered by Attorneys hereunder. . . - ARTICLE III .. RESPONSIBILITIES OF CITY City shall cooperate with Attorneys in the performance of their services under Article I and shall provide Attorneys with information requested by Attorneys regarding investments made with proceeds of the Certificates and amounts to be used for payment of the Certificates or shall assist Attorneys in obtaining such information. - . J ARTICLE IV TERM OF AGREEMENT This Agreement shall terminate on the first day of the third full calendar month following the end of the fifth year pertaining to the Certificates unless earlier renewed by supplemental agreement between the parties hereto, or unless the City shall, upon ten days written notice to Attorneys, terminate this Agreement for failure of Attorneys to perform the duties set forth in Article I hereof in a manner satisfactory to the City. IN WITNESS WHEREOF, City and Attorneys have caused this Agreement to be executed, in duplicate, by one of their respective duly authorized officers, all as of the day and year first above written. CITY OF DUBLIN By PAUL MOF_FAT;'-MAYO - - JONES HALL HILL & WHITE, A Professional Law Corporation By / �� --� X Sharon Stanton White W6558