HomeMy WebLinkAboutContract 45387-A2 CSC No. 7—AA
CITY OF FORT WORTH
CONTRACT RENEWAL NOTICE
6/5/15
First Southwest Asset Management, Inc.
325 North St. Paul St. Ste. 800
Dallas, TX 75254
Re: NOTICE OF CONTRACT RENEWAL
Arbitrage Rebate Compliance Services
Contract No. CSC No. 45387-A 1 (the "Contract")
Renewal Term No. 2: August 1, 2015 to July 31, 2016
The above referenced Contract will expire on July 31, 2015. Pursuant to the Contract, contract renewals are at the sole
option of the City. This letter is to inform you that the City is exercising its right to renew CSC No. 45387-A 1 for an
additional one year period, which will begin immediately upon the expiration of the current term and will end on July 31,
2016. All other terms and conditions of CSC No. 45387-A1 remain unchanged. Please return this signed
acknowledgement letter, along with a copy of your current insurance certificate, to the address set forth below,
acknowledging receipt of the Notice of Contract Renewal.
Please log onto BuySpeed Online at http//fort«orthtexas. ov/purchasing to insure that your company information is
correct and up-to-date.
If you have any questions concerning this Contract Renewal Notice, please contact me at the telephone number listed
below.
Sincerely yours,
Darian Gavin, Contract Compliance Specialist
FMS, Purchasing Division
817-392-2057 - Direct
817-392-8440 -Fax
I hereby acknowledge receipt of the Contract Renewal Notice for CSC No. 45387-A 1 for a one year period ending on July
31, 2016.
By: 6dVL lit& Date:
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Date: A�xAs M&C No. C-26350
CITY SECRETARY
FT.WORTH,TX
'
M&C Review Page 1 of 2
Official site of the City of Fort Worth,Texas
CITY COUNCIL AGENDA FoR� T� Wer
COUNCIL ACTION: Approved on 7/23/2013
DATE: 7/23/2013 REFERENCE NO.: **C-26350 LOG NAME: 1313 FA
CONTRACT
CODE: C TYPE: CONSENT PUBLIC NO
HEARING:
SUBJECT: Authorize Necessary and Related Agreements with First Southwest Company, First
Southwest Asset Management, Inc., and Estrada Hinojosa & Company, Inc., for the
Provision of Financial Advisory, Arbitrage Rebate and Continuing Disclosure Services
(ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the execution of necessary and related Agreements with First Southwest Company,
First Southwest Asset Management, Inc., and Estrada Hinojosa & Company, Inc., for the provision of
financial advisory, arbitrage rebate and continuing disclosure services; and
2. Authorize a commencement date of August 1, 2013 and expiration date of July 31, 2014 with two
one-year renewal options for each Agreement.
DISCUSSION:
First Southwest Company and Estrada Hinojosa & Company, Inc. (Estrada Hinojosa), have
satisfactorily served as the City's co-financial advisors for over a decade. During this same period,
First Southwest Asset Management, Inc., and First Southwest Company's FSC Disclosure Services
Division have provided arbitrage rebate compliance services and continuing disclosure services to
the City.
Staff is recommending that the City continue these relationships with First Southwest Company
serving as lead financial advisor and Estrada Hinojosa, a minority-owned firm, acting as co-financial
advisor. Approval of the Agreements will ensure continuity as the City enters its traditional debt-
issuance season.
The fee structure for financial advisory services will be a base fee in the amount of
$35,000.00 plus $0.75 per$1,000.00 denomination for each series of bond issues. As in the
current contract, the fee will be split 65/35 between the two firms, respectively.
First Southwest Company, the lead financial advisor, and Estrada Hinojosa, a certified minority-
owned firm and the co-financial advisor, are in compliance with the City's BDE Ordinance by
committing to the work fees on bond transactions being split 65/35 between the two firms respectively
on this project.
Typically, no charges for financial advisory services related to bond transactions are incurred unless
bonds are actually sold. The Agreements will also provide for the financial advisors to provide special
financial consulting work not directly related to a bond sale with compensation paid based on an
hourly rate ranging from the amount of$75.00 for work performed by administrative assistants to the
amount of$250.00 per hour for work performed by managing directors, executive vice presidents or
senior vice presidents. An individual engagement letter will be executed for each special project
httn://anns.cfwnet.orvJcouncit vacket/mc review.asp?ID=18709&councildate=7/23/2013 1/6/2014
M&C Review Page 2 of 2
compensated on an hourly basis.
Arbitrage rebate compliance services will be provided by First Southwest Asset Management, Inc.,
and FSC Disclosure Services, a Division of First Southwest Company, will provide continuing
disclosure services. Disclosure services will be compensated at a rate of$2,500.00 per year for
assistance in preparation and distribution of each annual report and the amount of$3,500.00 per year
for distribution of audited financial statements. Arbitrage rebate compliance services will be
compensated at a rate of$1,400.00 per computation year. Additional fees would apply for
specialized arbitrage-related services, if needed, in connection with an IRS refund request of
commercial paper calulations. The costs for those services are reflected in the fee schedule, which is
attached.
FISCAL INFORMATION/CERTIFICATION:
The Financial Management Services Director certifies that funds required to pay financial advisory
fees will be available from proceeds of bond sales, appropriate debt service funds, and/or appropriate
operating funds.
TO Fund/Account/Centers FROM Fund/Account/Centers
PE47 554010 0132000 $0.00
GD06 554010 0132000 $0.00
Submitted for City Manager's Office by: Susan Alanis (8180)
Originating Department Head: Jay Chapa (8517)
Additional Information Contact: Lisa Parks (6630)
ATTACHMENTS
CFW 2013 Fee Schedulepdf
httn://anns.cfwnet.org/council nacket/mc review.asn?ID=18709&councildate=7/23/2013 1/6/2014
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