CM-2024-291 - 11/8/20241
PROFESSIONAL CONSULTING SERVICES AGREEMENT
BETWEEN THE CITY OF ROUND ROCK
AND AMERICAN MUNICIPAL TAX-EXEMPT COMPLIANCE CORP.
FOR ARBITRAGE REBATE COMPLIANCE SERVICES
THE STATE OF TEXAS §
§
CITY OF ROUND ROCK § KNOW ALL BY THESE PRESENTS:
§
COUNTY OF WILLIAMSON §
COUNTY OF TRAVIS §
This Agreement (“Agreement”) is made and entered into on this the _____ day of
__________, 2024, by and between the CITY OF ROUND ROCK, TEXAS, a home-rule
municipality whose offices are located at 221 East Main Street, Round Rock, Texas 78664,
referred to herein as the “City,” and AMERICAN MUNICIPAL TAX-EXEMPT
COMPLIANCE CORP. D/B/A “AMTEC,” whose offices are located at 90 Avon Meadow Lane,
Avon, Connecticut 06001, referred to herein as “Consultant.” This Agreement supersedes and
replaces any previous agreement between the named parties, whether oral or written, and
whether or not established by custom and practice.
RECITALS:
WHEREAS, City desires arbitrage rebate compliance services; and
WHEREAS, City has issued its “Request for Proposals” for the provision of said
services; and
WHEREAS, City has determined the proposal submitted by Consultant provides the best
value to the City; and
WHEREAS, the parties desire to enter into this Agreement to set forth in writing their
respective rights, duties, and obligations;
NOW, THEREFORE, in consideration of the mutual promises contained herein and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties mutually agree as follows:
1.0 DEFINITIONS
A. Agreement means this binding legal contract between City and Consultant
whereby City is obligated to buy specified services and Consultant is obligated to sell same. The
Agreement includes the following: (a) City’s Request for Proposal, designated Solicitation
Number 24-028 dated July 2024 (“RFP”); (b) Consultant’s Proposal; and (c) any exhibits and/or
November
8th
CM-2024-291
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addenda thereto. Any inconsistencies or conflicts in the contract documents shall be resolved by
giving preference in the following order:
(1) This Agreement;
(2) Consultant’s Proposal;
(3) City’s Request for Proposals, Addenda, exhibits, and attachments.
B. City means the City of Round Rock, Williamson and Travis Counties, Texas.
C. Effective Date means the date set out in the introductory paragraph above.
D. Services mean the specified services, supplies, materials, commodities, or
equipment.
E. Consultant means American Municipal Tax-Exempt Compliance Corp. d/b/a
“AMTEC,” or any successors or assigns.
2.0 EFFECTIVE DATE AND TERM
A. This Agreement shall be effective on the Effective Date and shall remain in full
force and effect unless and until it expires by operation of the term indicated herein or is
terminated or extended as provided herein.
B. The term of this Agreement shall be for sixty (60) months from the Effective
Date.
C. City reserves the right to review the relationship at any time and may elect to
terminate this Agreement with or without cause or may elect to continue.
3.0 CONTRACT DOCUMENTS AND EXHIBITS
A. City selected Consultant to supply the Services as outlined in the RFP; any
Addenda to RFP; and the Proposal submitted by Consultant, all as specified in Exhibit “A,”
incorporated herein by reference for all purposes. The intent of these documents is to formulate
an Agreement listing the responsibilities of both parties as outlined in the RFP and any Addenda
to RFP and as offered by Consultant in its Proposal.
The Services which are the subject matter of this Agreement are described in Exhibit “A”
which is fully a part of this Agreement as if repeated herein in full.
4.0 ITEMS AWARDED; SCOPE OF WORK
A. All items in “Segment 3 – Cost Proposal Sheet” of Exhibit “A” (Page 43 of
Exhibit “A”) are awarded to Consultant.
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B. Consultant shall satisfactorily provide all Services described in Exhibit “A,”
attached hereto, within the contract term specified in Section 2.0. Consultant’s undertakings shall
be limited to performing services for City and/or advising City concerning those matters on
which Consultant has been specifically engaged. Consultant shall perform its services in
accordance with this Agreement, in accordance with the appended exhibits, in accordance with
due care, and in accordance with prevailing industry standards for comparable services.
5 .0 COSTS
A. In consideration for the Services to be performed by Consultant, City agrees to
pay Consultant the amounts set forth in “Segment 3 – Cost Proposal” of Exhibit “A” (page 43 of
Exhibit “A”).
B. The City shall is authorized to pay the Consultant an amount not-to-exceed
$37,000.00 for the term of this Agreement.
6 .0 INVOICES
A. All invoices shall include, at a minimum, the following information:
1. Name and address of Consultant;
2. Purchase Order Number;
3. Description and quantity of Services provided; and
4. Delivery dates.
7.0 INTERLOCAL COOPERATIVE CONTRACTING / PURCHASING
A. Authority for local governments to contract with one another to perform certain
governmental functions and services, including but not limited to purchasing functions, is
granted under Government Code, Title 7, Chapter 791, Interlocal Cooperation Contracts,
Subchapter B and Subchapter C, and Local Government Code, Title 8, Chapter 271, Subchapter
F, Section 271.101 and Section 271.102.
B. Other governmental entities within the State of Texas may be extended the
opportunity to purchase off of the City’s proposal, with the consent and agreement of the
successful service provider(s) and the City. Such agreement shall be conclusively inferred for the
Consultant from lack of exception to this clause in the service provider’s response. However, all
parties hereby expressly agree that the City is not an agent of, partner to, or representative of
those outside agencies or entities and that the City is not obligated or liable for any action or
debts that may arise out of such independently-negotiated “piggyback” procurements.
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8.0 NON-APPROPRIATION AND FISCAL FUNDING
This Agreement is a commitment of City’s current revenues only. It is understood and
agreed that City shall have the right to terminate this Agreement at the end of any City fiscal year
if the governing body of City does not appropriate funds sufficient to purchase the Services as
determined by City’s budget for the fiscal year in question. City may affect such termination by
giving Consultant a written notice of termination at the end of its then-current fiscal year.
9.0 PROMPT PAYMENT POLICY
In accordance with Chapter 2251, V.T.C.A., Texas Government Code, any payment to be
made by City to Consultant will be made within thirty (30) days of the date City receives the
Services under this Agreement, the date the performance of the Services under this Agreement
are completed, or the date City receives a correct invoice for the services, whichever is later.
Consultant may charge interest on an overdue payment at the “rate in effect” on September 1 of
the fiscal year in which the payment becomes overdue, in accordance with V.T.C.A., Texas
Government Code, Section 2251.025(b). This Prompt Payment Policy does not apply to
payments made by City in the event:
1. There is a bona fide dispute between City and Consultant, a contractor,
subcontractor, or supplier about the Service performed that cause the payment to
be late; or
2. There is a bona fide dispute between Consultant and a subcontractor or between a
subcontractor and its supplier about the Services performed that causes the
payment to be late; or
3. The terms of a federal contract, grant, regulation, or statute prevent City from
making a timely payment with federal funds; or
4. The invoice is not mailed to City in strict accordance with any instruction on the
purchase order relating to the payment.
10.0 GRATUITIES AND BRIBES
City may, by written notice to Consultant, cancel this Agreement without liability to
Consultant if it is determined by City that gratuities or bribes in the form of entertainment, gifts,
or otherwise were offered or given by Consultant or its agents or representatives to any City
officer, employee or elected representative with respect to the performance of this Agreement. In
addition, Consultant may be subject to penalties stated in Title 8 of the Texas Penal Code.
11.0 TAXES
City is exempt from Federal Excise and State Sales Tax; therefore, tax shall not be
included in Consultant’s charges.
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12.0 INSURANCE
Consultant shall meet all City of Round Rock insurance requirements set forth in the RFP
and on the City’s website at:
http://www.roundrocktexas.gov/wp-content/uploads/2014/12/corr insurance 07.20112.pdf.
1 3.0 CITY’S REPRESENTATIVE
City hereby designates the following representative authorized to act in its behalf with
regard to this Agreement:
Adam Gagnon
Purchasing Supervisor
221 East Main Street
Round Rock, TX 78664
(512) _218-5456
agagnon@roundrocktexas.gov
14.0 RIGHT TO ASSURANCE
Whenever either party to this Agreement, in good faith, has reason to question the other
party’s intent to perform hereunder, then demand may be made to the other party for written
assurance of the intent to perform. In the event that no written assurance is given within the
reasonable time specified when demand is made, then and in that event the demanding party may
treat such failure as an anticipatory repudiation of this Agreement.
1 5 .0 DEFAULT
If Consultant abandons or defaults under this Agreement and is a cause of City acquiring
the specified goods elsewhere.
Consultant shall be declared in default of this Agreement if it does any of the following
and fails to cure the issue within thirty (30) days of receipt of written notice:
1. Fails to fully, timely and faithfully perform any of its material obligations under
this Agreement;
2. Becomes insolvent or seeks relief under the bankruptcy laws of the United States,
and is unable to perform its material obligations under the Agreement.
1 6.0 TERMINATION AND SUSPENSION
A. City has the right to terminate this Agreement, in whole or in part, for
convenience and without cause, at any time upon thirty (30) days’ written notice to Consultant.
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B. In the event of any default by Consultant, City has the right to terminate this
Agreement for cause, upon ten (10) days’ written notice to Consultant.
C. Consultant has the right to terminate this Agreement only for cause, that being in
the event of a material and substantial breach by City, or by mutual agreement to terminate
evidenced in writing by and between the parties.
D. In the event City terminates under subsections (A) or (B) of this section, the
following shall apply: Upon City’s delivery of the referenced notice to Consultant, Consultant
shall discontinue all services in connection with the performance of this Agreement and shall
proceed to cancel promptly all existing orders and contracts insofar as such orders and contracts
are chargeable to this Agreement. Within thirty (30) days after such notice of termination,
Consultant shall submit a statement showing in detail the goods and/or services satisfactorily
performed under this Agreement to the date of termination. City shall then pay Consultant that
portion of the charges, if undisputed. The parties agree that Consultant is not entitled to
compensation for Services it would have performed under the remaining term of the Agreement
except as provided herein.
17.0 INDEMNIFICATION
Consultant shall defend (at the option of City), indemnify, and hold City, its successors,
assigns, officers, employees and elected officials harmless from and against all suits, actions,
legal proceedings, claims, demands, damages, costs, expenses, attorney’s fees, and any and all
other costs or fees arising out of, or incident to, concerning or resulting from the fault of
Consultant, or Consultant’s agents, employees or subcontractors, in the performance of
Consultant’s obligations under this Agreement, no matter how, or to whom, such loss may occur.
Nothing herein shall be deemed to limit the rights of City or Consultant (including, but not
limited to the right to seek contribution) against any third party who may be liable for an
indemnified claim.
18.0 COMPLIANCE WITH LAWS, CHARTER, AND ORDINANCES
A. Consultant, its agents, employees and subcontractors shall use best efforts to
comply with all applicable federal and state laws, the Charter and Ordinances of the City of
Round Rock, as amended, and with all applicable rules and regulations promulgated by local,
state and national boards, bureaus and agencies.
B. In accordance with Chapter 2271, Texas Government Code, a governmental entity
may not enter into a contract with a company for goods or services unless the contract contains
written verification from the company that it: (1) does not boycott Israel; and (2) will not boycott
Israel and will not boycott Israel during the term of this contract. The signatory executing this
Agreement on behalf of Consultant verifies Consultant does not boycott Israel and will not
boycott Israel during the term of this Agreement.
C. In accordance with Chapter 2274, Texas Government Code, a governmental entity
may not enter into a contract with a company with at least ten (10) full-time employees for a
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value of at least One Hundred Thousand and No/100 Dollars ($100,000.00) unless the contract
has a provision verifying that it: (1) does not have a practice, policy, guidance, or directive that
discriminates against a firearm entity or firearm trade association; and (2) will not discriminate
during the term of the contract against a firearm entity or firearm trade association. The signatory
executing this Agreement on behalf of Consultant verifies Consultant does not have a practice,
policy, guidance, or directive that discriminates against a firearm entity or firearm trade
association, and it will not discriminate during the term of this Agreement against a firearm
entity or firearm trade association.
D. In accordance with Chapter 2274, Texas Government Code, a governmental entity
may not enter into a contract with a company with at least ten (10) full-time employees for a
value of at least One Hundred Thousand and No/100 Dollars ($100,000.00) unless the contract
has a provision verifying that it: (1) does not boycott energy companies; and (2) will not boycott
energy companies during the term of this Agreement. The signatory executing this Agreement on
behalf of Consultant verifies Consultant does not boycott energy companies, and it will not
boycott energy companies during the term of this Agreement.
1 9.0 ASSIGNMENT AND DELEGATION
The parties hereby bind themselves, their successors, assigns and legal representatives to
each other with respect to the terms of this Agreement. Neither party shall assign, sublet or
transfer any interest in this Agreement without prior written authorization of the other party.
20.0 NOTICES
A. All notices and other communications in connection with this Agreement shall be
in writing and shall be considered given as follows:
1. When delivered personally to recipient’s address as stated in this Agreement; or
2. Three (3) days after being deposited in the United States mail, with postage
prepaid to the recipient’s address as stated in this Agreement.
Notice to Consultant:
AMTEC
90 Avon Meadow Lane
Avon, CT 06001
Notice to City:
City Manager Stephanie L. Sandre, City Attorney
221 East Main Street AND TO: 309 East Main Street
Round Rock, TX 78664 Round Rock, TX 78664
B. Nothing contained herein shall be construed to restrict the transmission of routine
communications between representatives of City and Consultant.
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21.0 APPLICABLE LAW, ENFORCEMENT, AND VENUE
This Agreement shall be enforceable in Round Rock, Texas, and if legal action is
necessary by either party with respect to the enforcement of any or all of the terms or conditions
herein, exclusive venue for same shall lie in Williamson County, Texas. This Agreement shall be
governed by and construed in accordance with the laws and court decisions of the State of Texas.
22.0 EXCLUSIVE AGREEMENT
This document, and all appended documents, constitutes the entire Agreement between
Consultant and City. This Agreement may only be amended or supplemented by mutual
agreement of the parties hereto in writing.
23.0 DISPUTE RESOLUTION
City and Consultant hereby expressly agree that no claims or disputes between the parties
arising out of or relating to this Agreement or a breach thereof shall be decided by any arbitration
proceeding, including without limitation, any proceeding under the Federal Arbitration Act (9
USC Section 1-14) or any applicable state arbitration statute.
2 4 .0 SEVERABILITY
The invalidity, illegality, or unenforceability of any provision of this Agreement or the
occurrence of any event rendering any portion or provision of this Agreement void shall in no
way affect the validity or enforceability of any other portion or provision of this Agreement. Any
void provision shall be deemed severed from this Agreement, and the balance of this Agreement
shall be construed and enforced as if this Agreement did not contain the particular portion or
provision held to be void. The parties further agree to amend this Agreement to replace any
stricken provision with a valid provision that comes as close as possible to the intent of the
stricken provision. The provisions of this section shall not prevent this entire Agreement from
being void should a provision which is of the essence of this Agreement be determined void.
2 5.0 MISCELLANEOUS PROVISIONS
A. Standard of Care. Consultant represents that it employs trained, experienced and
competent persons to perform all of the services, responsibilities and duties specified herein and
that such services, responsibilities and duties shall be performed in a manner according to
generally accepted industry practices.
B. Time is of the Essence. The parties agree that, from time to time, certain unique
transactions may have special requirements relative to timing and, accordingly, the parties will
identify those transactions and exercise best efforts to accomplish those transactions within the
stated timeframe. Other timing requirements will be met in a commercially reasonable manner.
Where damage is caused to City due to Consultant’s failure to perform in the special timing
requirement circumstances, City may pursue any remedy available without waiver of any of
City’s additional legal rights or remedies.
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C. Binding Agreement. This Agreement shall extend to and be binding upon and
inure to the benefit of the parties’ respective heirs, executors, administrators, successors and
assigns.
D. Multiple Counterparts. This Agreement may be executed in multiple
counterparts, any one of which shall be considered an original of this document; and all of
which, when taken together, shall constitute one and the same instrument.
[Signatures on the following page.]
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IN WITNESS WHEREOF, City and Consultant have executed this Agreement on the
dates indicated.
American Municipal Tax-Exempt Compliance Corp.
By: ______________________________________
Printed Name: _____________________________
Title: ___________________________________
Date Signed: _______________________________
City of Round Rock, Texas
By: ______________________________________
Printed Name: _____________________________
Title: ___________________________________
Date Signed: _______________________________
For City, Attest:
By: _______________________
City Clerk
For City, Approved as to Form:
By: _____________________
Stephanie L. Sandre, City Attorney
Raymond H. Bentley
President
Raymond H. Bentley
10/31/2024
Laurie Hadley
City Manager
11/08/2024
Ann Franklin
City of Round Rock, Texas
Purchasing Division
221 East Main Street
Round Rock, Texas 78664-5299
www.roundrocktexas.gov
REQUEST FOR PROPOSAL (RFP)
ARBITRAGE REBATE COMPLIANCE SERVICES
SOLICITATION NUMBER 24-028
JULY 2024
Exhibit "A"
City of Round Rock
Arbitrage Rebate Compliance Services
RFP No. 24-028
Commodity Code: 918-04 / 918-49
JULY 2024
Page 2 of 11
ARBITRAGE REBATE COMPLIANCE SERVICES
PART I
GENERAL REQUIREMENTS
1. PURPOSE AND BACKGROUND: The City of Round Rock, herein after “the City” seeks proposals from
firms experienced in providing arbitrage compliance services for all long-term bonds issued by the City which
are subject to the arbitrage requirements of the Internal Revenue Service Code of 1986, as amended. It is
clarified in section 148.
2. SOLICITATION PACKET: This solicitation packet is comprised of the following:
3. SCHEDULE OF EVENTS: It is the City’s intention to follow the solicitation timeline below.
EVENT DATE
Solicitation released July 17, 2024
Deadline for submission of questions August 5, 2024 @ 3:00 PM, CST
City responses to questions or addendums Approx August 7, 2024 @ 3:00 PM, CST
Deadline for submission of responses August 21, 2024 @ 3:00 PM, CST
All questions regarding the solicitation shall be submitted through Bonfire in writing by 5:00 PM, CST on the
due date noted above. A copy of all questions submitted and the City’s response to the questions shall be
posted on the City’s webpage in the form of an addendum at:
https://roundrocktexas.bonfirehub.com
The City reserves the right to modify these dates. Notice of date change will be posted to the City’s website:
https://roundrocktexas.bonfirehub.com
4. SOLICITATION UPDATES: Respondents shall be responsible for monitoring the City’s website at
https://roundrocktexas.bonfirehub.com for any updates pertaining to the solicitation described herein. Various
updates may include addendums, cancellations, notifications, and any other pertinent information necessary
for the submission of a correct and accurate response. The City will not be held responsible for any further
communication beyond updating the website.
Description Index
Part I – General Requirements Page(s) 2-4
Part II – Definitions, Standard Terms and Conditions,
and Insurance Requirements Page 5
Part III – Supplemental Terms and Conditions Page(s) 6-7
Part IV – Scope of Work Page(s) 8
Part V – Proposal Preparation Instructions and Evaluation Factors Page(s) 9-11
Attachment A – Proposal Submittal Form Separate Attachment
Attachment B – Reference Sheet Separate Attachment
Attachment C – Current Outstanding Debt Separate Attachment
Exhibit "A"
City of Round Rock
Arbitrage Rebate Compliance Services
RFP No. 24-028
Commodity Code: 918-04 / 918-49
JULY 2024
Page 3 of 11
5. RESPONSE DUE DATE: Appropriately submitted responses are due at or before 3:00 PM, on the due date
noted in PART I, Section 3 – Schedule of Events. The Offeror shall respond via the City’s electronic bidding
platform, Bonfire: https://roundrocktexas.bonfirehub.com
A. This request for proposal (RFP) does not commit the City to contract for any supply or service.
B. No paper or submittals outside of Bonfire will be accepted by the City.
C. Responses cannot be altered or amended after digital opening.
D. No response can be withdrawn after opening without written approval from the City for an acceptable
reason.
E. The City will not be bound by any oral statement or offer made contrary to the written specifications.
F. Samples and/or copies shall be provided at the Respondent’s expense and shall become the property of
the City.
G. Late responses will not be considered.
6. CERTIFICATE OF INTERESTED PARTIES: Section 2252.908 of the Texas Government Code requires the
successful offeror to complete a Form 1295 “Certificate of Interested Parties” that is signed for a contract
award requiring council authorization. The “Certificate of Interested Parties” form must be completed on the
Texas Ethics Commission website, printed, signed, and submitted to the City by the authorized agent of the
Business Entity with acknowledgment that disclosure is made under oath and under penalty of perjury prior to
final contract execution. Link to Texas Ethics Commission Webpage:
https://www.ethics.state.tx.us/whatsnew/elf_info_form1295.htm
7. EX PARTE COMMUNICATION: Please note that to insure the proper and fair evaluation of an offer, the City
of Round Rock prohibits ex parte communication (e.g., unsolicited) initiated by the Offeror to the City Official,
Employee, City Consultant, or Evaluation Team member evaluating or considering the offers prior to the time
an award decision has been confirmed. Communication between an Offeror and the City will be initiated by
the appropriate City Official or Employee in order to obtain information or clarification needed to develop a
proper and accurate evaluation of the offer. Ex parte communication may be grounds for disqualifying the
offending Offeror from consideration of award in evaluation or any future bid.
8. OPPORTUNITY TO PROTEST: The Purchasing Manager for the City of Round Rock (“City”), in consultation
with the City Attorney, shall have the authority to settle or resolve any dispute concerning the solicitation or
award of a contract. The Purchasing Manager may solicit written responses to the protest from other
interested parties. The aggrieved person must prepare his or her complaint in writing and send it by
electronic mail to the City’s Purchasing Department at protest@roundrocktexas.gov.
In the event of a timely protest, the City shall not proceed further with the solicitation or award of a contract
unless it is determined that the award must take place without delay, to protect the best interests of the City.
The procedures for notifying the City of an alleged deficiency or filing a protest are listed below. If you fail to
comply with any of these requirements, the Purchasing Office may dismiss your complaint or protest.
A. Prior to Offer Due Date: If you are a prospective offeror for the award of a contract (“Offeror”) and you
become aware of the facts regarding what you believe is a deficiency in the solicitation process before the
due date for receipt of offers in response to a solicitation (“Offers”), you must notify the City in writing of
the alleged deficiency before that date, giving the City an opportunity to resolve the situation prior to the
Offer due date.
B. After Offer Due Date: If you submit an Offer to the City and you believe that there has been a deficiency
in the solicitation process or the award, you have the opportunity to protest the solicitation process, or the
recommended award as follows:
i. You must file a written notice of your intent to protest within four (4) working days of the date that you
know or should have known of the facts relating to the protest. If you do not file a written notice of
intent within this time, you have waived all rights to protest the solicitation process or the award.
ii. You must file your formal written protest within ten (10) working days of the date that you know or
should have known of the facts relating to the protest unless you know of the facts before the Offer
has been closed. If you know of the facts before those dates, you must notify the City as stated in
section (A) above.
Exhibit "A"
City of Round Rock
Arbitrage Rebate Compliance Services
RFP No. 24-028
Commodity Code: 918-04 / 918-49
JULY 2024
Page 4 of 11
iii. You must submit your protest in writing and must include the following information:
a. your name, address, telephone number, and email address.
b. the solicitation number.
c. a specific identification of the statutory or regulatory provision that you are alleging has been
violated.
d. a detailed statement of the factual grounds for your protest, including copies of any relevant
documents.
e. a statement of any issues of law or fact that you contend must be resolved; and
f. a statement of the argument and authority that you offer in support of your protest.
iv. Your protest must be concise and presented logically and factually to help with the City’s review.
C. Receipt of Timely Protest: When the City receives a timely and complete written protest, the Purchasing
Manager, with assistance from the City Attorney, shall make one of the following determinations:
i. Determine that a violation of rules and statutes has occurred prior to the award of the contract and
inform you and other interested parties of the determination. The City will prepare updated solicitation
documents and will re-solicit.
ii. Determine that no violation of rules or statutes has occurred and inform you and other interested
parties of the decision by letter. The reasons for the determination will be presented in the letter.
iii. Determine that a violation of rules and statutes has occurred after the award of the contract and
inform you and other interested parties of the determination. However, the awarded contract will not
be canceled. As needed, corrective actions may be taken with purchasing or any other pertinent City
staff.
iv. A determination will usually be made within fifteen (15) business days after receipt of the formal
protest.
v. Any written decisions by the Purchasing Manager shall be the final administrative action for
the City.
All documentation pertaining to a protest will be kept on file at the City and are subject to open records
requests.
Exhibit "A"
City of Round Rock
Arbitrage Rebate Compliance Services
RFP No. 24-028
Commodity Code: 918-04 / 918-49
JULY 2024
Page 5 of 11
PART II
DEFINITIONS, STANDARD TERMS AND CONDITIONS,
AND INSURANCE REQUIREMENTS
1. DEFINITIONS, STANDARD TERMS AND CONDITIONS: By submitting a response to this solicitation, the
Respondent agrees that the City’s Definitions and Standard Terms and Conditions, in effect at the time of
release of the solicitation, shall govern unless specifically provided otherwise in a separate agreement or on
the face of a purchase order. These can be obtained from the City’s website at:
https://www.roundrocktexas.gov/city-departments/purchasing/. In addition, the Supplemental Terms and
Conditions listed in Section III, shall also be enforced as part of the contract.
2. INSURANCE: Insurance does not apply to this solicitation.
Exhibit "A"
City of Round Rock
Arbitrage Rebate Compliance Services
RFP No. 24-028
Commodity Code: 918-04 / 918-49
JULY 2024
Page 6 of 11
PART III
SUPPLEMENTAL TERMS AND CONDITIONS
1. AGREEMENT TERM: The terms of the awarded agreement shall include but not be limited to the following:
A. The term of the Agreement shall begin from date of award and shall remain in full force for sixty (60)
months.
B. Upon expiration of the contract term, the Contractor agrees to hold over under the terms and conditions of
this agreement for such a period as is reasonably necessary to re-solicit and/or complete the project up to
120 days.
2. RESPONDENT QUALIFICATIONS: The City has established the following minimum qualifications.
Respondents who do not meet the minimum qualifications will not be considered for award. The Respondent
shall:
A. Be firms, corporations, individuals, or partnerships normally engaged in providing arbitrage rebate
compliance services as specified herein and have adequate organization, facilities, equipment, financial
capability, and personnel to ensure prompt and efficient service to the City.
B. In order to confirm financial stability, the City may choose to review audited financial statements at any
time throughout the RFP evaluation process. Upon request, the Respondent shall provide two years
audited financial statements, including any notes or supplemental schedules within 2 business days of the
original request.
C. The Respondent shall include in the proposal a list of all litigation the company or its principals have been
involved in within the last three (3) years.
D. Be domiciled in or have a home office inside the United States. Respondents domiciled outside the
United States, or not having a home office inside the United States will not be included for consideration
in this RFP process.
3. SUBCONTRACTORS: Respondent shall not subcontract or otherwise engage subcontractors to perform
required services. The City seeks to do business directly with a company experienced in arbitrage rebate
compliance services.
4. PRICING: The Respondent shall determine and submit a fixed cost for the work and shall include all
incidental costs, labor, overhead charges, travel, payroll expenses, freight, equipment acquisition and
maintenance, demurrage, fuel surcharges, delivery charges, costs associated with obtaining permits,
insurance, bonds, and risk management. No separate line-item charges shall be permitted for either
response or invoice purposes.
5. PRICE INCREASE: Contract prices for arbitrage rebate compliance services shall remain firm throughout the
initial twelve (12) month term of the contract. A price increase to the agreement may be considered on the
anniversary date of the Contract each year and shall be equal to the consumer price index for that year, but at
no time can the increase be greater than 5% for any single line item unless otherwise approved by the City.
A. Consumer Price Index (CPI): Price adjustments will be made in accordance with the percentage
change in the U.S. Department of Labor Consumer Price Index (CPI-U) for all Urban Consumers. The
price adjustment rate will be determined by comparing the percentage difference between the CPI in
effect for the base year six-month average (January through June OR July through December), and each
(January through June OR July through December six month average) thereafter. The percentage
difference between those two CPI issues will be the price adjustment rate. No retroactive contract price
adjustments will be allowed. The Consumer Price Index (CPI) is found at the Bureau of Labor Statistics,
Consumer Price Index website: http://www.bls.gov/cpi
B. Procedure to Request Increase:
i. Email the written price increase request to purchasing@roundrocktexas.gov with the rate detail
comparison, a comprehensive calculation, and any supporting documentation to the designated City
Contract Specialist a minimum of 45 days prior to the annual Contract anniversary date. The detailed
written calculation will be verified and confirmed. All written requests for increases must include the
Exhibit "A"
City of Round Rock
Arbitrage Rebate Compliance Services
RFP No. 24-028
Commodity Code: 918-04 / 918-49
JULY 2024
Page 7 of 11
City of Round Rock contract number, solicitation reference information and contact information for the
authorized representative requesting the increase.
ii. Upon receipt of the request, the City reserves the right to either accept the escalation and make
change to the purchase order within 30 days of the request or negotiate with the Vendor or cancel the
agreement or purchase order if an agreement cannot be reached on the value of the increase.
6. PERFORMANCE REVIEW: The City reserves the right to review the awarded Contractor’s performance
anytime during the contract term.
7. ORDER QUANTITY: The quantities shown on the solicitation are estimates only. No guarantee of any
minimum or maximum purchase is made or implied. The City will only order the services/goods needed to
satisfy requirements within budgetary constraints, which may be more or less than indicated.
8. AWARD: The City reserves the right to enter into an Agreement or a Purchase Order with a single award,
split award, primary and secondary award, non-award, or use any combination that best serves the interest
and at the sole discretion of the City. Respondents to the solicitation will be notified when City staff
recommendation of award has been made. The award announcement will be posted to the City’s website at
https://roundrocktexas.bonfirehub.com once City Council has approved the recommendation of award and the
agreement has been executed.
9. POINT OF CONTACT / DESIGNATED REPRESENTATIVE:
A. Contractor’s point of contact: In order to maintain consistent standards of quality work performed
across the City, the City shall be provided with a designated and identified point of contact upon award of
the contract to include contact information. The City’s designated representative shall be notified by the
Respondent immediately should the point of contact change.
B. The City’s designated representative: The City’s designated representative shall be:
Melana Taylor
Deputy Chief Finance Officer
Finance
Phone: 512-218-3295
E-mail: mtaylor@roundrocktexas.gov
C. Do not contact the individual listed above with questions or comments during the course of the
solicitation.
10. INTERLOCAL PURCHASING AGREEMENTS:
A. The City has entered into Interlocal Agreements with other Governmental agencies pursuant to the
Interlocal Cooperation Act, Chapter 791 of the Texas Government Code.
B. The Contractor may offer the same price and terms and conditions to other eligible agencies that have an
interlocal agreement with the City.
C. The City does not accept any responsibility or liability for the purchases by other government agencies
through an interlocal cooperative agreement.
Exhibit "A"
City of Round Rock
Arbitrage Rebate Compliance Services
RFP No. 24-028
Commodity Code: 918-04 / 918-49
JULY 2024
Page 8 of 11
PART IV
SCOPE OF WORK
1. PURPOSE AND BACKGROUND: The City of Round Rock, herein after “the City” seeks proposals from firms
experienced in providing arbitrage compliance services for all long-term bonds issued by the City which are
subject to the arbitrage requirements of the Internal Revenue Service Code of 1986, as amended. It is
clarified in section 148.
2. CONTRACTOR RESPONSIBILITIES: The Contractor shall-
A. Provide consultation to City staff as necessary regarding arbitrage matters.
B. Review all outstanding bond issues (see Attachment C) to create a schedule to identify all arbitrage
computation dates and associated IRS filing deadlines.
C. Assess all outstanding bond issues to determine the existing level of arbitrage compliance and future
compliance needs.
D. Calculate the bond yields.
E. Calculate the excess investment earnings, if any, required to be rebated to the Federal Government
within the legally permitted time period.
F. As appropriate, calculate any yield reduction amount on any funds that are yield restricted.
G. Provide the City a report identifying the amount of arbitrage owed and summarizing the results of the
calculations, the calculation method used, assumptions, and conclusions.
H. Provide documentation certifying arbitrage calculation results are consistent with the 1986 Rebate
Provisions, as amended.
I. Monitor the City’s ongoing compliance with all arbitrage requirements for its bond issues.
J. Assist the City as necessary in the event of an Internal Revenue Service (IRS) inquiry.
K. Prepare necessary reports and IRS forms to accompany any required payment to the Federal
Government.
L. Provide assistance and consultation as necessary to retain records and documentation at least six (6)
years after the issue’s final maturity.
M. Any other work necessary to ensure the City satisfies all requirements relative to arbitrage rebate.
3. CITY RESPONSIBILITIES: The City will-
A. Provide the Contractor with the required documentation necessary to complete the arbitrage rebate
compliance services tasks and evaluations requested.
B. Provide the Contractor with agreed upon prioritization schedules to complete analysis of requested
services.
C. Make available to the Contractor staff members who are knowledgeable about the bond transactions,
investments, and disbursements of bond proceeds.
4. REPORTING REQUIREMENTS: Reports shall include, at a minimum, the following information-
A. Amount of arbitrage owed.
B. Written explanation of the computation methodology, assumptions and conclusions employed.
C. Delivery of calculations, formal rebate reports, and rebate exception reports.
D. Provide documentation certifying arbitrage calculation results in accordance with code and regulations.
E. Provide recommendations of existing accounting and investment practices, if necessary.
Exhibit "A"
City of Round Rock
Arbitrage Rebate Compliance Services
RFP No. 24-028
Commodity Code: 918-04 / 918-49
JULY 2024
Page 9 of 11
PART V
PROPOSAL PREPARATION INSTRUCTIONS
AND EVALUATION FACTORS
1. PROPOSAL ACCEPTANCE PERIOD: All proposals are valid for a period of one hundred and twenty (120)
calendar days subsequent to the RFP closing date unless a longer acceptance period is offered in the
proposal.
2. PROPOSAL RESPONSE: Responses shall be clear and concise while appropriately responding to the
evaluation criteria listed below in Section 3. In order to do business with the City of Round Rock you must be
registered with the City’s Vendor Database. To register, go to:
https://roundrocktxvendors.munisselfservice.com/Vendors/default.aspx
Proposal Submittal Instructions: The Respondent shall include all of the following documents in their
response-
o Attachment A- Proposal Submittal Form
o Attachment B- Reference Sheet
o Acknowledged Addenda (if applicable)
o Segment requirements listed below.
o A statement of your compliance with all applicable rules and regulations of Federal, State and Local
governing entities.
o List of Exceptions (if any)- Be advised that exceptions to any portion of the Solicitation may jeopardize
acceptance of the Proposal by the City. Exceptions to this solicitation if any, shall be submitted on a
separate sheet labeled “Exceptions” with the Respondent’s proposal.
3. EVALUATION CRITERIA:
A. Segment 1 – Respondent’s Methodology, Technical Approach, & Solution
i. Methodology and Technical Approach: Describe your methodology and technical approach for
accomplishing required work. Include such time-related displays, graphs, and charts as necessary to
show tasks, sub-tasks, milestones, and decision points related to the Scope of Work and your plan for
accomplishment. Specifically indicate:
1. Provide a narrative description of the Firms’ plan to accomplish the work and services to be
provided to the City.
2. Clearly acknowledge your understanding of the scope of work, including a detailed approach to
completing this project in a phase-by-phase fashion, including staff assignments for each phase
of the project.
3. Provide suggestions and ideas for completing this project in an efficient, effective, and innovative
manner.
4. Clearly identify materials and knowledge resources that the Firm will need from the City to
complete this project.
5. Include the points at which written, deliverable reports will be provided.
ii. System Concept and Solution: Define in detail your understanding of the requirement presented in
the Scope of Work of this request for proposal and your system solution. Provide all details as
required in the Scope of Work and any additional information you deem necessary to evaluate your
proposal.
B. Segment 2 – Company Work Experience and Personnel
i. Business Organization: State full name and address of your organization and identify parent company
if you are a subsidiary. Specify the branch office or other subordinate element which will perform, or
assist in performing, work herein. Indicate whether you operate as a partnership, corporation, or
individual. Include the State in which incorporated or licensed to operate.
Exhibit "A"
City of Round Rock
Arbitrage Rebate Compliance Services
RFP No. 24-028
Commodity Code: 918-04 / 918-49
JULY 2024
Page 10 of 11
ii. Project Management Structure: Provide a general explanation and chart which specifies project
leadership and reporting responsibilities; and interface the team with City project management and
team personnel.
iii. Prior Experience: State the number of years the Respondent company has been providing the
services requested in the solicitation. Describe only relevant municipal, governmental, corporate, and
individual experience for the company and personnel who will be actively engaged in the project. Do
not include corporate experience unless personnel assigned to this project actively participated. Do
not include experience prior to 2014. Supply the project title, year, and reference name, title, present
address, and phone number of principal persons for whom prior projects were accomplished.
Specifically:
1. Describe recent experience (last 5 years) in conducting calculations with similar scope,
complexity, and magnitude for other public agencies in Texas.
2. The City of Round Rock prefers references provided by other cities, towns, or local governments
in Texas that the proposer has provided services to.
3. Provide general experience with handling bond compliance reviews.
4. If applicable, describe how your company has assisted another entity in the event of an Internal
Revenue Service (IRS) inquiry and the outcome.
iv. Personnel: Include names, qualifications, and resumes of all personnel who will be assigned to the
account. State the primary work assigned to each person and the percentage of time each person will
devote to this work. Identify key persons by name and title.
v. Contractors’ past performance with the City may be evaluated.
B. Segment 3 – Cost Proposal: Information described in the following subsections is required from each
Proposer. Your method of costing may or may not be used but should be described. A firm fixed price or
not-to-exceed Contract is contemplated with progress payments as mutually determined to be
appropriate.
i. Provide a detailed fee schedule for each bond described in Attachment C.
ii. Describe a fee schedule, including any special fees for:
1) Yield restriction analyses.
2) Commingled funds analyses.
3) Transferred proceeds analyses.
4) Variable rate issues.
5) Periods in excess of twelve (12) months.
iii. Total (not to exceed) 5-year cost.
4. EVALUATION SCORING: The intent of the City is to award to one Respondent in accordance with the
evaluation criteria below. The purpose of this evaluation criteria is to determine which proposal best meets
the requirements and provides the best overall value to the City.
A. Evaluation Criteria: Weights:
• Respondent’s Methodology, Technical Approach, & Solution (Segment 1) 30 pts
• Company Work Experience and Personnel (Segment 2) 30 pts
• Cost Proposal (Segment 3) 40 pts
Maximum Weight: 100 pts
B. An evaluation committee will be established to evaluate the proposal. The committee will include
employees of the City and may include other impartial individuals who are not City employees. The
evaluation committee will determine if discussions and/or Best and Final Offers (BAFO) are necessary.
Award of a contract may be made without discussions or BAFO, if in the best interest of the City. The
evaluation committee may determine that discussions are necessary to clarify or verify a written proposal
response. The City may, at its discretion, elect to have respondents provide oral presentations of their
proposal. The City reserves the right to rescore an offer based on provided demonstrations. A request
Exhibit "A"
City of Round Rock
Arbitrage Rebate Compliance Services
RFP No. 24-028
Commodity Code: 918-04 / 918-49
JULY 2024
Page 11 of 11
for a BAFO is at the sole discretion of the City and will be requested in writing. The evaluation committee
will evaluate the finalists and make a recommendation for award.
C. The City reserves the right to reject any or all proposals submitted, or to award to the respondent who in
the City’s opinion, offers the best value to the City. The City also reserves the right to cancel the RFP
process and pursue alternate methods for providing the requirements.
D. The City reserves the right to conduct studies and other investigations as necessary to evaluate any
proposal.
E. The City reserves the right to waive any minor technicality, irregularities, or informalities noted
in the submission process. Submission of proposal confers no legal rights upon any
Respondent.
F. The City reserves the right to request further documentation or information and to discuss proposal
response with any Respondent in order to answer questions or to clarify any aspects of the proposal.
G. The City may develop a “short list” of qualified proposal and may determine that the
Respondent(s) should submit a Best and Final Offer (BAFO). Each “short listed” Respondent will be
given a reasonable opportunity for discussion and revision of their proposal.
5. AGREEMENT NEGOTIATIONS AND AWARD PROCESS:
A. A proposal presented in response to this RFP is subject to negotiation concerning any issues deemed
relevant by the City. The City reserves the right to negotiate any issue with any party. Any unsolicited
communication by the Respondent to a City official, undesignated employee, or an evaluation team
member evaluating or considering the offers may be grounds for disqualifying the offending Offeror from
consideration of award.
B. Submission of proposal indicates the Respondent’s acceptance of the evaluation process and recognition
that the City may make subjective judgments in evaluating the proposal to determine the best value for
the City.
C. If negotiations are successful, the City and Respondent may enter into an agreement. If negotiations are
unsuccessful, the City may formally end negotiations with that Respondent.
D. The City also reserves the right to reject any or all submittals, or to accept any submittal deemed most
advantageous, or to waive any irregularities or informalities in the submittal received.
E. An independent signed authorized Contract will be sent to the successful Respondent(s). Execution of a
City of Round Rock contract is required prior to starting work and processing any payments to the
Contractor.
6. POST AWARD MEETING: The City and the Respondent may schedule a post award meeting to discuss, but
not be limited to the following:
A. The method to provide a smooth and orderly transition of services performed from the current Contractor.
B. Provide City contact(s) information for implementation of the Agreement.
C. Identify specific milestones, goals, and strategies to meet objectives.
Exhibit "A"
ATTACHMENT A
SOLCITATION SUBMITTAL FORM AND EXECUTION
NOTE: RESPONDENTS SHALL COMPLETE, SIGN, AND UPLOAD THIS ATTACHMENT WITH
THEIR SUBMITTAL IN BONFIRE. FAILURE TO DO SO MAY RESULT IN DISQUALIFICATION OF
THE SUBMITTAL.
By signature hereon, the Respondent certifies that:
All statements, pricing and information prepared and submitted to the City’s Bonfire portal in response to
this solicitation are current, complete, and accurate.
He/she has not given, offered to give, nor intends to give at any time hereafter, any economic opportunity,
future employment, gift, loan gratuity, special discount, trip, favor, or service to a City employee, evaluator,
or evaluating entity in connection with the submitted response. Signing the Execution of Solicitation
Submittal Form with a false statement shall void the submitted offer or any resulting contracts.
Respondent represents and warrants that the individual signing this Execution of Solicitation Submittal
Form is authorized to sign this document, represent the Respondent and to bind the Respondent under
any contract resulting from this submittal.
RESPONDENT (COMPANY): American Municipal Tax-Exempt Compliance Corp., dba AMTEC
SIGNATURE (INK/DIGITAL):
NAME (TYPED/PRINTED): Raymond H. Bentley
TITLE: President DATE: August 21, 2024
STREET: 90 Avon Meadow Lane
CITY/STATE/ZIP: Avon, CT 06001
TELEPHONE & FAX NO.: Phone: 860-321-7521; Fax: 860-321-7581
E-MAIL ADDRESS: rbentley@amteccorp.com
FEDERAL TAX IDENTIFICATION NUMBER (FIN): 06-1308917
By submitting a response to this solicitation, the Respondent agrees that the City’s Definitions and Standard
Terms and Conditions, in effect at the time of release of the solicitation, shall govern unless specifically
provided otherwise in a separate agreement or on the face of a purchase order. In addition, the
Supplemental Terms and Conditions listed in Section III, shall also be enforced as part of the contract, and
can be obtained from the City’s website at: https://www.roundrocktexas.gov/city-businesses/solicitations/
Exhibit "A"
CITY OF ROUND ROCK, TEXAS
REQUEST FOR PROPOSAL (RFP)
Arbitrage Rebate Compliance Services
SOLICITATION NUMBER 24-028
American Municipal Tax-Exempt Compliance Corporation
August 21, 2024
Exhibit "A"
i
TABLE OF CONTENTS
Executive Summary
EVALUATION CRITERIA
Segment 1 – Respondent’s Methodology, Technical Approach, & Solution
-- Methodology and Technical Approach
-- System Concept and Solution
Segment 2 – Company Work Experience and Personnel
-- Business Organization
-- Project Management Structure
-- Prior Experience
-- Personnel
Additional Information
APPENDIX – AMTEC S/M/ABE Certifications
1
4
9
16
16
17
21
24
A-1
ADDITIONAL SUBMISSIONS (separate documents/responses)
Segment 3 – Cost Proposal
Attachment A - Proposal Submittal Form
Attachment B - Reference Sheet
Acknowledgement of Receipt of Addenda
Agreement to Comply with Rules and Regulations
List of Company Litigation (n/a)
List of Exceptions (n/a)
Exhibit "A"
1
August 21, 2024
Ms. Melana Taylor
Deputy Chief Financial Officer
City of Round Rock
221 East Main Street
Round Rock, TX 78664
Re: City of Round Rock, Texas
Request for Proposal (RFP) for Arbitrage Rebate Compliance Services, Solicitation Number 24-028
Greetings Ms. Taylor:
Thank you for inviting AMTEC to submit its Proposal for Arbitrage Rebate Compliance Services to the City of
Round Rock, Texas (the “City”) for current and future issuances of municipal debt. AMTEC appreciates this
opportunity and welcomes additional dialogue with the City.
We have carefully examined the RFP and have highly experienced and qualified professional staff available
immediately to provide arbitrage tracking, calculation reporting, and consultation services to perform the Scope
of Work identified in the RFP and in our response. We certify that we are qualified to fulfill the requirements of
the RFP, and to ensure the City’s bond issues are in compliance with Section 148(f) of the Internal Revenue Code
(the “Code”). We further certify that we will honor the pricing structure throughout the engagement period.
Executive Summary
AMTEC was appointed as the City’s arbitrage rebate compliance specialist in 2009, and again in 2014 and 2019.
During this time period, the following was accomplished:
• Seamless transition to AMTEC’s service;
• Catch-up of several years of computations that had not been completed;
• 100% restatement of the activity for all older calculations prepared by other firms;
• Annual rebate reports as of the City’s Fiscal Year End for all active bond issues;
• Timely delivery of Computation Date (5-Year) Reports within 45 days of payment dates;
• The preparation of an Annual Report and Executive Summary for each fiscal year end; and,
• Full support of the arbitrage rebate function for the City over the entire contract period.
It is clear from our experience since 2009 that the City understands its obligation to comply with Section 148(f)
of the Internal Revenue Code and has worked consistently over time to achieve this goal. It is understood that we
will continue to deliver the highest level of diligence and unlimited support to guarantee that the City is in
compliance with the Code as relates to arbitrage rebate, as well as provide a competitively priced product. We
will continue to perform the Scope of Work and other important services that have been delivered previously.
Exhibit "A"
2
Since 2009, AMTEC has rendered hundreds of arbitrage rebate opinions for over 30 bond issues. Today, we are
very pleased to report that ALL City bond issues are in compliance with the Code. This was made possible through
the efforts of our respective professional staff members. We thank the City for assisting us with this outcome.
We are also pleased to have developed an extremely productive relationship with you and your colleagues. We
thank the current and prior members of the City’s team who worked diligently with our staff over the years,
witnessed our service, and can attest to the streamlining of this function for the City. We believe your team can
feel confident the City will continue to receive unlimited support from AMTEC across its municipal bond tax
compliance functions, and benefit from a flawless record of compliance with the Code.
As a result of the efforts placed upon the delivery of timely and effective services in the early period of our
relationship, annual rebate computations arrive systematically each year. While our rebate report delivery appears
to be almost effortless, the methods that evolved and are currently followed reflect a significant amount of hard
work and coordination between the City and AMTEC over the last decade and a half.
Why should the City retain AMTEC for this assignment?
• AMTEC is one of the few nationally recognized, dedicated providers of arbitrage rebate calculations and
refunding verification services. Providing these services for thousands of bond issues across the United
States gives us a unique and thorough understanding of Section 148(f) of the Internal Revenue Code and
the Treasury Regulations.
• AMTEC is one of the earliest providers of Arbitrage Rebate Compliance Services and has operated under
our original name longer than any of our competitors.
• AMTEC is one of the most trusted Refunding Verification Agent providers, since offering this service
beginning in 2002 to issuers, financial advisors, and underwriters.
• AMTEC is a qualified Small, Minority, and Asian Business Enterprise (S/M/ABE). (Please see Appendix
for related certifications.)
• AMTEC has invested in technological advances, which have made us more efficient than ever, allowing
us to pass on our savings to our clients. We have created and continue to improve the following:
o AMTEC ARC, AMTEC Corp. 2010-2024, is our proprietary software to compute arbitrage, rates of
returns, commingled funds, spending exceptions, etc.
o AMTEC BankUScan System, AMTEC Corp. 2012-2024, is our proprietary software that makes it
possible to directly receive bank statements, paper or electronic, and convert them into a readable
electronic file that can be stored indefinitely.
o SwifTEC Report, AMTEC Corp. 2016-2024, is an innovative approach to assembling reports directly
related to the AMTEC ARC and BankUScan System.
With its national client base, AMTEC brings significant financing and compliance experience from other
jurisdictions, resulting in enhanced exposure to diverse and innovative financing structures with a guarantee of
accuracy and efficiency in the arbitrage rebate computations for our clients. We compute arbitrage all day every
day. We invest in our future to become more efficient so we can pass on the savings to our clients. We do not
charge by the hour or for questions or additional assistance the City may require. We never charge additional
or add-on fees. Our guaranteed fee is guaranteed. AMTEC will provide the City with an opportunity to
maintain highly competitive costs for high quality Arbitrage Rebate Compliance Services into the future.
Fees are not the only benefit of a relationship with AMTEC that separates us from our competition. Customer
service – Large or small, you’ll feel like our only client. We answer the phone when you call. We respond to
emails almost instantly. We complete our reports in a timely fashion. Our time working for the City to date
confirms this.
Exhibit "A"
3
AMTEC – Key Points Summary
• Work with City staff to determine an efficient method for the transfer of investment and disbursement
activity from bond proceeds;
• Prepare rebate reports as of the required reporting dates; and,
• Provide the City with all IRS payment filings and written instructions and unlimited support including
support for any IRS inquiry.
For decades, AMTEC has specialized in arbitrage rebate and refunding verification services for clients across the
country. In fact, unlike many of our competitors, these are the only services we provide to clients—all day, every
day. This level of specialization—along with our proven, repeatable processes—drive efficiencies that provide
significant cost savings to our clients, supported by our guaranteed fee structure. And our uncommon focus
means you can always feel confident that a partnership with AMTEC will ensure your compliance with IRS
regulations will never be in doubt.
Work Plan Summary and Comprehensive Reporting – Our work plan includes a continuation of annual rebate
reports for all active issues and a review of the documentation for any new issues. Each rebate report contains an
executive summary, detailed and concise computations, definitions of applied terms, computation methodology,
recommendations and AMTEC’s professional opinion. All computations are completed in accordance with the
Code and the Treasury Regulations, as amended. Our opinion for the City will remain unchanged and contains
the following wording: “The methodology used is consistent with current tax law and regulations and may
be relied upon in determining the rebate liability.”
AMTEC’s Compliance and Service Philosophy – Our service enables issuers to become proactive rebate
managers. We structure our services toward the early recognition of any rebate liability through timely annual
computations (or semiannual, when necessary) and realignment of investments. This enables the City to optimize
the earnings from its investment of bond proceeds.
AMTEC is qualified and committed to continue providing Arbitrage Rebate Compliance Services. We are
familiar with each bond issue and various projects of the City. Based upon our experience and understanding of
the Scope of Work requested, we are well positioned to meet all expectations of this project. The City also has
our pledge that fees will not increase over the entire term of the contract.
The material in the pages that follow is detailed and corresponds to the City’s requirements. Please let us know if
you require any additional information related to this request. We trust that your team has been pleased with our
service and thank you for the opportunity to continue providing arbitrage rebate computations and support to the
City of Round Rock.
Very truly yours,
Raymond H. Bentley
President
Exhibit "A"
4
Segment 1 – Respondent’s Methodology, Technical Approach, & Solution
Methodology and Technical Approach
AMTEC’s Exclusive Methodology
The computation of arbitrage rebate is defined by methodology, technical proficiency and practice through the
understanding of Section 148(f) of the Internal Revenue Code and Arbitrage Regulations to ensure consistent
application. AMTEC has developed its own proprietary software, internal process and practices. These tools,
along with 34 years of experience, support the accuracy of our calculations. Our systems and training have stood
the test of time and are tested regularly by the IRS each time we request a refund for a client. They are also tested
by our tax counsel and professional staff daily. When you receive an AMTEC rebate report, you are assured it is
accurate and you can feel confident about our work.
The Computational Methodologies
It takes years to train a competent arbitrage calculation specialist. Each AMTEC computation specialist is trained
and mentored by a senior staff professional for two years before they can provide arbitrage calculations to an
AMTEC client. A significant part of this training focuses on the computational methodologies utilized. Each
computational methodology relates to the technical aspects of the calculation. They include, as an initial step, the
selection of computation methods such as Purpose Investment and Nonpurpose Investment.
Potential Problems with the Nonpurpose Investment Method
Even the most skilled arbitrage consultant may compute an inaccurate rebate amount when using the Nonpurpose
Investment method. This method requires 100% input of all investment activity. Reports are voluminous
depending on the amount of investments purchased, difficult to follow and ultimately require the attention of an
arbitrage professional to interpret the substantive activity that aggregates the rebate amount, which could be
inaccurate.
Since only the invested proceeds are measured, bond proceeds that may not be immediately reinvested, or set aside
for a disbursement at a later date, will not be reflected in the rebate calculation. The calculation methodology
assumes that the reinvestment and the capital disbursement occur simultaneously. As a result, the rebate liability
computed using this method may be artificially higher than the actual rebate liability since only invested proceeds
are measured.
The occasional lag time created by reinvestments of earnings and capital disbursements that do not occur on the
reinvestment date will generally reduce the rebate liability when factored into a rebate calculation. Amounts not
invested, even for a day, will lawfully reduce the rebate liability when blended with the cash flow of the invested
portfolio.
The Arbitrage Regulations permit the blending of short lag times caused by the reinvestment of funds and for the
payment of expenditures. However, the nonpurpose investment methodology does not allow this blending to
occur and often results in an inflated rebate liability that is greater than required by Section 148(f) of the Internal
Revenue Code.
Additionally, capital disbursements are not identified in the rebate calculation when using this methodology.
Therefore, it is not possible to identify the amounts spent for capital improvements from a rebate report that utilizes
the nonpurpose investment methodology.
Exhibit "A"
5
In short, in addition to the possibility of it generating an inaccurate result, it has been our experience that the
nonpurpose method is inconsistent. It tends to “overstate” the actual rebate amount and is typically utilized by
firms with inexperienced staff or with a high staff turnover rate.
AMTEC’s Choice is the Purpose Investment Method. Purpose investments are defined as the expenditure of
the bond proceeds as payment of the bonded project or for the “purpose for which the bonds were issued.” This
Methodology is clearly illustrated in the Arbitrage Regulations, while the others are not. The purpose investment
method is the most efficient method and requires professional expertise to be applied accurately. This method
focuses on actual project expenditures and not on extraneous investment activity and money movement from bank
account to bank account.
Examples of Discretionary Methodology
• Rebate Exception vs. Rebate
• Uncommingling of Funds
• Valuation Methods
In each of the above, the arbitrage consultant must institute an approach that is supported by the Arbitrage
Regulations. Many times, there is more than one method to follow. As an example: A consultant may advise
their client that an issue qualifies for a spending exception from rebate. Many consultants begin the service here
and if they can “shoehorn” an exception into place and issue the finding, they do not bother to compute the rebate
amount. This practice increases the consultant’s profit.
However, it is always important to examine the value of achieving a spending exception from rebate whether or
not a rebate liability has accumulated. In scenarios such as this, the AMTEC analyst will acknowledge the
exception, but provide the rebate calculation supporting our opinion. This demonstrates that no rebate liability has
accumulated and it quantifies the amount of negative arbitrage. The reasoning is twofold:
First, in the AMTEC report, the IRS (upon review) can see that no rebate liability accumulated, the actual bond
yield, the rate of return from the investment of bond proceeds, the investment income amount and the arbitrage
liability expressed as a positive (liability) or negative (no liability) number. None of this is evident in a rebate
exception computation. The IRS may also want to see all of the activity, including construction invoices to confirm
the exception election.
Second, the accumulated negative arbitrage from the project fund during the Temporary Period can be used as an
offset against positive arbitrage generated by a Reserve Fund in a subsequent computation period in a more
favorable investment climate.
Valuation Expertise Valuation methodologies can greatly increase or decrease the computed rebate liability; the selected firm must be
skilled in all types of qualified investments and apply the investment valuation methodology that produces the
lawfully smallest rebate amount. AMTEC’s professional staff have years of training beyond college, where this
is not taught. We are able to provide investment valuations that are 100% accurate and will result in the lawfully
smallest rebate amount.
Commingled Funds
Many of AMTEC’s clients pool or commingle funds from one or more bond issues for the ease of investing funds.
This is not uncommon and while other firms often charge an increased fee for an “uncommingling analysis,”
AMTEC does not charge any fee for this service.
Exhibit "A"
6
We have developed software programs to separate and allocate principal, interest and balances among any variety
or number of investments. If the City commingles bond proceeds, it will not need to pay AMTEC any additional
fee to provide an “uncommingling analysis.”
Overall, AMTEC has developed the most accurate and cost-effective arbitrage computation product available.
Our goal is to continue to improve upon our product. By doing so, we are able to eliminate fee increases and pass
the savings on to our clients as our efficiency improves.
Due to AMTEC’s role and experience as a Refunding Verification Agent, our ability to understand each type of
bond issue is enhanced. Our understanding also enables the effective application of the various restrictions placed
upon bond proceeds by Section 148(f) of the Internal Revenue Code and the Treasury Regulations. As these
restrictions are recorded in the Federal Tax Agreement by Bond and Tax Counsel, AMTEC is able to comply with
these instructions using the most efficient and cost-effective methodologies.
AMTEC applies the same internal controls and protocol to any bond issue, whether it is for a new client or an
existing client. We have completed thousands of calculations for various types of bonds. By applying the
AMTEC protocol to each and every type of bond issue, we are able to understand the intricacies of the transaction
prior to preparing our report and ensure the elimination of calculation errors. This protocol includes:
1. Gather bond documents and investment records.
2. Thoroughly read the bond documents, especially the Federal Tax Certificate, which is the “road map” of
the bond issuance. This document will specify the sources and uses of funds, elections, yield restrictions
and any other requirements relating to the arbitrage compliance of the bonds.
3. Process investment records and ensure results are reasonable.
4. Prepare arbitrage report for internal review and final issuance.
As an issuer of tax-advantaged bonds, the City is required to comply with Section 148(f) of the Internal Revenue
Code to maintain the tax-advantaged status of its bonds. It is the City’s responsibility to ensure that arbitrage
rebate analyses are performed no later than the fifth anniversary date of each issuance and the requisite rebate
payment is made, if necessary.
AMTEC can help achieve this goal. AMTEC staff follow the same procedures for each bond issue, whether for
an existing client or a new client. This provides an ongoing assurance of thoroughness and accuracy relied upon
by our clients. This process is described in detail in the following table:
Task
1. Consult with the City regarding the nature of the debt and collect all necessary documentation and
investment data.
AMTEC provides its clients with unlimited support. This support includes consultation with the City staff, bond counsel,
other City consultants and the IRS.
2. Review documentation for special elections and eligibility for spending exceptions.
Verify that the issue is subject to the rebate requirement. Initially, the Tax Agreements, Official Statements and other
relevant documents are reviewed. The Tax Agreement, prepared by bond counsel, provides information about the bond
proceeds and other funds that could be subject to rebate and information relating to rebate exceptions. The Federal Tax
Certificate prepared by bond counsel and IRS Form 8038-G will provide adequate documentation to determine any
special elections. Spending exceptions, if not specifically elected, can be applied, when appropriate, following the
processing of all bond and investment activity.
3. Verify debt service, original issue discount (premium), sources and uses, and calculate the arbitrage yield.
Independently verify data provided by the City corresponds with bond data reported to EMMA by utilizing EMMA
data to reconcile to City generated bond documents.
Exhibit "A"
7
Calculate the bond yield. Since the bond yield is the basis for arbitrage liability, ensuring that all amounts are identified
and applied in accordance with the Code is extremely important. Amounts such as the original issue discounts, premiums
and qualified guarantee payments are needed to complete this process.
From the information gathered in the bond document and review process, AMTEC independently computes the bond
yield for each fixed yield issue. Occasionally, the fixed bond yield provided to bond counsel by the underwriter is not
complete or may contain inaccuracies. Through AMTEC’s independent verification of the bond yield, the City will be
assured that the bond yield has been recomputed in accordance with the Treasury Regulations and is correct.
The bond yield for any variable rate bonds will be computed on each rebate computation date. As an example, if the
rebate was computed at the end of the first bond year, the yield on the bonds would also be computed. The Treasury
Regulations allow the issuers of variable rate bonds to align periods of high interest rates on their bonds and investments in
an effort to minimize rebate. AMTEC uses its discretion as to which periods or variable bond years will produce the least
amount of rebate.
Identify which funds are subject to yield restriction. The Tax Agreement is the roadmap for the arbitrage consultant.
Within the Tax Agreement, each fund and account subject to yield restriction is identified. This information forms the
foundation for all rebate computations and incorporates the length of each Temporary Period along with the types of
restrictions placed on each class of proceeds, including debt service reserve funds and surplus funds.
4. Review / analyze portfolio of investments and the funds and accounts in which the investments are held.
Obtain the necessary information related to investments, including investment and expenditure detail and interest
earnings. AMTEC has confidence that the information provided by the City will be adequate to complete Arbitrage
Rebate Compliance Services. AMTEC does not require the creation of a new layer of accounting strata to provide the
records required to compute rebate.
Investment Portfolio Evaluation. Along with the disbursement listings, we gather information on the unspent bond
proceeds and investments. Each investment is valued for every calculation. AMTEC follows the regulatory valuation
requirements and selects the most advantageous valuation method. The most advantageous valuation is the one that
produces the smallest amount of rebate. We use care in these determinations to ensure market value fluctuations do not
give rise to erroneous rebate returns.
As a final control, the total income from the portfolio is identified and compared to the actual sums received. Project
disbursements and investment income amounts are also balanced, ensuring that all items have been identified and are
recorded in the financial records.
A review of the Trust Indenture and Trust Bank Statements will provide the necessary information to complete these
tasks. The timeframe can vary widely depending on the number of funds, accounts and sub-accounts as well as the
number of investments held within each account. We have also allocated time for the management of the Trust
Statements each year.
5. Calculate the excess investment earnings (cumulative rebate liability), taking into account any proceeds
that are or have become subject to yield restriction requirements and all credit and debits required or
permitted by the tax regulations.
Perform Excess Earnings Calculations
• Computing/verifying the allowable yield limit for each issue;
• Compute the estimated rebate liability, if any; and,
• Compute the excess earnings as of the Computation Date.
Computation of excess earnings (the rebate amount) is completed following the computation of the bond yield. The
technical steps to arrive at the excess earnings amount are enumerated within above. Exceptions from rebate will be tested
at this juncture, but not utilized in the final results if the computation does not produce an arbitrage liability. The value of
any exception from rebate is questionable and should not be used when the arbitrage liability is negative.
6. Deliver a comprehensive report detailing the arbitrage rebate calculations, the rebate liability and any
yield restriction issues as well as an opinion letter regarding the calculations for obligations issued by the
City, which shall provide, among other things, that such calculations were performed in compliance with
federal tax law.
Exhibit "A"
8
Comprehensive Calculations, Annual Reports and Opinions. The rebate report is a formal document issued together
with an executive summary, all computation schedules and the professional opinion of AMTEC. Our opinion cites the
various computation methodologies used to arrive at the rebate amount and indicates that all computations are in accordance
with the Code and the Treasury Regulations. AMTEC’s professional opinion provides the City with a level of confidence
that rebate computations are accurate and in accordance with the Code and the Treasury Regulations.
Formal reports include an executive summary. Identification of the methodology employed, major assumptions,
conclusions, and any recommendations for changes in the City record keeping and investment policy are also included.
7. If required, prepare and provide for signature a completed Form 8038-T for filing with the IRS.
Internal Revenue Service Reporting Requirements including the preparation all filings required by the Internal
Revenue Service necessary for the payments of arbitrage rebate or refunds.
IRS Reporting. Should a rebate liability exist on a Computation Date, AMTEC would prepare the required transmittal
documents for IRS reporting. The completed documentation and letter of instructions would be provided within 45 days
advance of the payment due date.
IRS Representation by AMTEC is included as long as we are engaged as your consultant. There is no additional fee for
this representation. There is no limit to the amount of support we will provide should the City become involved in a review
or audit. Depending on the issues that are brought before the City, we will employ the correct methodology and procedures
to demonstrate to the IRS the compliance work completed by the City is in accordance with the Code and the Treasury
Regulations.
8. Maintain a database of all bond issues for the programs and advise the City of any important dates as they
occur (yield restrictions, calculations and payment dates).
A database will be created and maintained by AMTEC. This information will be provided to the City regularly. The
database will contain key information about each bond issue including, but not limited to:
Bond Yield Investment Yield Rebate Liability
Closing Date Maturity Date Computation Date
Temporary Period Yield Restrictions Refunding Data
Prior Rebate Paid Transferred Proceeds Fees
9. Assist the City as requested in the event of an IRS or other inquiry.
As stated above, AMTEC provides unlimited support of its clients for any function within in its expertise, including an IRS
or any other inquiry. There is never a charge for this support.
AMTEC will only need the assistance of a single City staff member, knowledgeable in the bond issuance process,
to maintain current rebate computations. AMTEC staff will initiate all requests for data and will deliver rebate
reports systematically over time. Ideally, the City will be able to provide an entire copy of each bond transcript.
If one is not available, then we will request the following data:
• Official Statement;
• Federal Tax Certificate;
• IRS Form 8038-G;
• Refunding Verification Report, if one exists; and,
• Monthly bank statements and/or Excel tracking data.
Annual reporting will be scheduled as of September 30, the fiscal year-end of the City, or as otherwise desired.
Additionally, required Computation Date (Five-Year) Reports that fall on bond anniversary dates within the fiscal
year will be prepared for no additional fee. There is no fee for an interim requested report.
Exhibit "A"
9
System Concept and Solution
The City has issued several series of bonds. Bonds were issued for a variety of purposes including capital projects
for roads and infrastructure, equipment and refundings. The structure of the City’s bond issues range in complexity
and include general obligation, sales tax revenue, certificates of obligation and limited tax notes.
It is clear from our experience since 2009 that the City understands its obligation to comply with Section 148(f)
of the Internal Revenue Code and has worked consistently over time to achieve this goal. It is understood that we
will continue to deliver the highest level of diligence and unlimited support to guarantee that the City is in
compliance with the Code as related to arbitrage rebate, as well as providing a competitively priced product. We
will continue to perform the Scope of Work and other important services that have been delivered previously. All
services will be performed within 45 days after each calculation date as we generally deliver calculations within
15 days of receiving the required bond and investment activity from the City.
In addition to our prompt service and support, by engaging AMTEC, the City has and will continue to “lock in”
its costs for arbitrage rebate computations for the duration of the engagement term. More importantly, the City
received the full support and expertise of AMTEC for additional services. These services include, but are not
limited to, the following:
• Unlimited consultation and support in the event of an IRS inquiry of a rebate computation. If the IRS
places an issue under investigation or follows up to ensure calculations were completed, it could take
hours of time by bond counsel, financial advisors and staff to respond to the questions raised by such a
review. AMTEC is the only consultant that provides this service to our clients for no additional fee.
• Provide pre-issuance rebate forecasting from estimated bond proceeds spending schedules and basic
investment information. From this data, we can prepare the potential investment earnings from an issue
along with an estimate of the rebate amount, if any, or the qualification potential from a spending
exception from rebate.
• Development of a database of all active bond issues that is used for senior managers of the City as well
as the City’s auditors for financial statement purposes.
As the incumbent, we find it prudent to review our approach, goals and objectives for the City that were submitted
in 2009, and again in 2014 and 2019, and achieved in their entirety following our appointment.
AMTEC’s Management Plan and 2009 / 2014 / 2019 Pledge – Reaffirmed
“If AMTEC is selected as your consultant, we will never make you feel as though you work for us. We will exceed
your expectations and do whatever is required to ensure the engagement runs smoothly from the onset.”
We have kept our word and continue this pledge of consistent and unwavering service to the City for this
engagement.
AMTEC’s Understanding and Objectives
• Our single, most important objective is to assure the City that its bond issues are in full compliance with
the Code and Treasury Regulations, as amended.
Secondary Objectives Include:
• Assisting the City to maximize its earnings from bond proceeds through regularly prepared rebate reports,
by providing significant information about the performance of its selected investments and determining
their effectiveness. This is accomplished within our rebate reports that display the computed rate of return
from all investments and compare this yield to the bond yield, quantifying the amount of excess earnings,
Exhibit "A"
10
which can be expressed as a positive or a negative number. With this information, management may
target higher yielding qualified investments in the event negative arbitrage has accumulated or establish
reserves for the future payment of a rebate liability, if one accumulates.
SIX MAJOR TASKS TO ACHIEVE SERVICE OBJECTIVES
1. Restate All Prior Rebate Reports. – Completed in 2009
A 100% restatement and legal review of the prior activity extracted from the prior rebate reports, from the date of
each closing through the date of the last report received by the City.
AMTEC provided this transition service for no additional charge. Our restatement of the prior rebate reports
ensures that the prior computations were accurate. Additionally, the City will need only the most recent AMTEC
rebate report to encompass the entire rebate history that dates back to the closing for each bond issue.
2. Update rebate calculations through current bond anniversary dates and issue formal reports.
– This has been done annually.
Formal computations with AMTEC’s opinion have been provided as of each bond anniversary date. Reports were
consistently delivered within 15 days of receiving the required bond and investment information from the City or
its designee.
3. Issue formal rebate reports on five-year bond Computation Dates – All Computation Date
reporting is current.
In addition to annual reporting discussed above, formal reports have been issued on each Computation Date (5-
year anniversary date) for no additional fee. Five-year reports are referred to as Computation Date Reports and
are required for compliance with the Code.
4. Intellectual Review Process – An AMTEC Trademark – Every report delivered to the City has
received this review.
The arbitrage rebate computation is not complete once the numbers have been crunched. This is when our
expertise, gained over 34 years of service, provides the analytics necessary to ensure that our computations and
final determinations are accurate. Our senior staff members are expert in the application of the Code and the
Treasury Regulations. No AMTEC report is complete without a detailed review of all information that will
ultimately comprise the arbitrage rebate computation.
During this review, we ensure that every opportunity to lawfully reduce the arbitrage rebate liability and yield
reduction liability has been implemented. Since many of the techniques and methodologies lawfully allowed to
reduce rebate are not elected before the closing, our expertise with the application of the Regulations is carefully
compared with the bond and investment history of the issues. The results can include important compliance
information as follows:
• A potential spending exception from rebate;
• The value of the spending exception when negative arbitrage accumulates;
• The quantitative value of a spending exception when the Reserve Fund generates a rebate liability;
• Determine valuation methodology for ending asset balances that lawfully reduce the rebate liability;
• Identification of the Temporary Period when the investment of bond proceeds is unrestricted and any
actions that may result in a restriction on the proceeds;
• Identification of any yield restrictions that have been placed on the proceeds following the end of the initial
Temporary Period and any other Temporary Period that may result from receipt and investment of debt
service payments; and,
• The testing of the Universal Cap for a potential de-allocation of bond proceeds.
Exhibit "A"
11
5. Develop an Arbitrage Database – This is completed and updated annually and has been used
by the City to prepare financial statements.
A database was developed and is maintained by AMTEC. This information has been provided to the City and its
Auditor regularly. The database contains key information about each bond issue and includes, but is not limited
to the following:
Bond Yield Investment Yield Rebate Liability
Closing Date Maturity Date Computation Date
Temporary Period Yield Restrictions Refunding Data
Prior Rebate Paid Transferred Proceeds Fees
6. Proactive Support From AMTEC
Since all bond issues have been brought current and formal rebate reports document the arbitrage status of the
issues, AMTEC works with the staff of the City to “manage” its rebate liability.
Arbitrage rebate was originally thought of (and is still believed to be by many of our competitors) as only a “legal”
and compliance issue, similar to income tax filings. As long as it is done in a timely manner, it will not be subject
to negligence and penalties.
AMTEC believes there is much more to achieve than being timely. Municipalities can benefit by utilizing the
information contained in each rebate report to increase income from the investment of bond proceeds and, at the
same time, reduce its rebate liability to the lawfully smallest amount or qualify for an exception from rebate and
retain all investment income. Active management of the rebate liability is a task that is critical to the success of a
compliance plan.
Each AMTEC rebate report contains an Executive Summary for senior managers and all of the detail for
accounting/support personnel and auditors. We identify the rebate liability and it is expressed as a positive or a
negative number. If a positive number results and an exception from rebate is possible, we provide the subsequent
spending levels and dates that the City must achieve to retain the excess income. If the issue cannot qualify for an
exception from rebate, we provide a recommended set-aside amount for future payment to the United States
Treasury.
DETAILED SCOPE OF WORK
All calculations and services related to the arbitrage and/or rebate penalty election requirements contained in the
Code and those regulations promulgated therein. Applying applicable federal tax rules, the calculations are to be
performed with respect to the City bond issues, current and future for the term of this engagement will be
accomplished following the steps identified below.
Verify that the issue is subject to the Rebate Requirement. Initially, the Tax Agreements, Official Statements
and other relevant documents are reviewed. The Tax Agreement, prepared by bond counsel, provides information
about the bond proceeds and other funds that could be subject to rebate and information relating to rebate
exceptions. These documents provide the information which enables us to complete an independent verification
of the bond yield.
Identify which funds are subject to yield restriction. The Tax Agreement is the roadmap for the arbitrage
consultant. Within the Tax Agreement, each fund and account subject to yield restriction is identified. This
information forms the foundation for all rebate computations and incorporates the length of each Temporary
Period along with the types of restrictions placed on each class of proceeds, including debt service reserve funds
and surplus funds.
Exhibit "A"
12
Identification of Unrestricted and Restricted Assets
Three-Year Temporary Period. Generally speaking, proceeds from the sale of the bonds used for capital project
purposes are unrestricted for a three-year period following the sale of the bonds. This time frame is referred to as
the Temporary Period.
During the Temporary Period, bond proceeds may be invested at a yield above the bond yield (without restriction)
and issuers are required to pay a rebate of the excess earnings above the bond yield to the United States Treasury.
An exception to paying a rebate occurs when the issuer qualifies for one of the spending exceptions from rebate.
Certain actions by issuers can cause the Temporary Period to terminate before three years. One of the more
common actions occurs when any of the bonds are advance refunded. This action truncates the Temporary Period
and any unspent capital project funds will become yield restricted.
Restrictions on Bond Proceeds. All bond proceeds invested are yield restricted with the exclusion of bond
proceeds used for capital purposes as described above for a three-year Temporary Period or when the proceeds
have been used to fund a Debt Service Reserve Fund.
Absolute Yield Restrictions. Bond proceeds deposited into an Escrow Fund that are used to pay future principal,
interest and redemption premium on bonds are yield restricted and may not be invested above the bond yield.
Other Yield Restriction – Not Absolute. Unspent bond proceeds are yield restricted following the end of the
Temporary Period. However, due to the nature of bond proceeds in a Capital Projects Fund, the Regulations
provide issuers with the ability to maintain their investments, regardless if they are generating excess yield, and
pay the excess yield to the United States Treasury in the form of a Yield Reduction Payment or YRP. A YRP is
similar to a rebate payment and paid at the same time and in the same manner.
Calculate the bond yield. Since the bond yield is the basis for arbitrage liability, ensuring that all amounts are
identified and applied in accordance with the Code is extremely important. Amounts such as the original issue
discounts, premiums and qualified guarantee payments are needed to complete this process.
From the information gathered in the bond document and review process, AMTEC independently computes the
bond yield for each fixed yield issue. Occasionally, the fixed bond yield provided to bond counsel by the
underwriter is not complete or may contain inaccuracies. Through AMTEC’s independent verification of the bond
yield, the City will be assured that the bond yield has been recomputed in accordance with the Regulations and is
correct.
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.
Reconciliation of Proceeds. The Tax Agreement is used to reconcile the sources and uses of funds which can be
tracked into the various bond and capital accounts. This step is important because the correct amount of bond
proceeds must be identified and measured in order to ensure that the final rebate results are accurate. Failure to
perform these initial steps violates the integrity of the rebate computation work which must follow.
Identification of transferred proceeds and development of transferred proceeds schedules are performed
systematically with current and advance refundings.
Uncommingling funds (when applicable) are not evident until the rebate computation has commenced. Our
analysis of the various asset accounts will provide evidence of a commingled fund. Once detected, we can utilize
Exhibit "A"
13
our internal process to uncommingle bond proceeds from non-bond proceeds or bond proceeds between two or
more issues, such as a single debt service reserve fund for issues of a certain type to compute the rebate.
Our internal controls have been designed to provide the rebate amount, investment income and rate of return for
each bond fund or account. Our expertise, which has been derived from the completion of more than 7,600 rebate
computations, provides special insight that only this experience can offer.
Our analysts have historical experience with all types of qualified investments and our internal controls highlight
unusual rates of return, either high or low, which are often the result of commingling. When this occurs, we use
our expertise and provide a series of tests that will easily identify the transactions that cause most aberrations in
rebate computations.
We obtain the necessary information related to investments, including investment and expenditure detail and
interest earnings. AMTEC has confidence that the information provided by the City will be adequate to complete
arbitrage rebate computations. AMTEC does not require the creation of a new layer of accounting strata to provide
the records required to compute rebate.
Investment Portfolio Evaluation. Along with the disbursement listings, we gather information on the unspent
bond proceeds and investments. Each investment is valued for every calculation. AMTEC follows the regulatory
valuation requirements and selects the most advantageous valuation method. The most advantageous valuation is
the one that produces the smallest amount of rebate. We use care in these determinations to ensure market value
fluctuations do not give rise to erroneous rebate returns.
As a final control, the total income from the portfolio is identified and compared to the actual sums received.
Project disbursements and investment income amounts are also balanced, ensuring that all items have been
identified and are recorded in the financial records.
Regulatory Changes, Procedural Review and Recommendations
During the course of the engagement, AMTEC provides its clients with detailed information on any changes to
the Treasury Regulations. In addition, if changes in the Treasury Regulations would provide an improved rebate
position or refund for the City, AMTEC would restate the computations for no additional fee and present it for
internal review.
Record Keeping Review and Recommendations. During the course of our engagement, a review of the record
keeping process and investment policy is conducted. AMTEC will evaluate and make recommendations on
current investment and record keeping practices for all funds subject to rebate to ensure the City systems and
procedures meet the requirements of the Code. Through 2024, no recommendations were necessary as the City
is in compliance with all recordkeeping requirements.
Project Schedule / Reports
Perform Excess Earnings (Arbitrage) Calculations
• Computing/verifying the allowable yield limit for each issue;
• Compute the estimated rebate liability, if any; and,
• Compute the excess earnings as of the Computation Date.
Computation of excess earnings (the rebate amount) is completed following the computation of the bond yield.
The technical steps to arrive at the excess earnings amount are enumerated within above.
Rebate Consolidation. We solve the rebate for each account within a specific issue. Once each separate account
has been solved and reconciled, the entire report is consolidated and the rebate amount is identified. The
Exhibit "A"
14
consolidation produces a blended rate of return and rebate amount for all accounts within an issue. We also provide
the individual computations for each fund so our clients can easily determine which funds are generating arbitrage
profits and which are generating losses.
Testing for Rebate Exceptions and Penalty in Lieu of Rebate Elections. Once we have determined the rebate
amount, we continue to test for exceptions from rebate. If a rebate liability has accumulated and the issue qualifies
for an exception from rebate, we will issue our opinion utilizing the rebate exception criteria and the rebate would
not be payable.
If a client has elected to pay a penalty in lieu of rebate, we would discover this election during our bond document
review and apply the penalty test and remit any penalty on a timely basis in accordance with the Regulations.
Comprehensive Calculations, Reports and Opinions. The rebate report is a formal document issued together
with an executive summary, all computation schedules and the professional opinion of AMTEC. Our opinion
cites the various computation methodologies used to arrive at the rebate amount and indicates that all computations
are in accordance with the Code.
AMTEC’s opinion is generally broader than most opinions and clearly provides the assurance that our
computation methodology is in accordance with the Code and the City may rely on it. The opinion will remain
unchanged for this engagement.
AMTEC’s professional opinion provides a level of confidence that rebate computations are accurate and in
accordance with the Code. Our opinion is backed by our full faith and credit and a multi-million dollar professional
liability insurance policy.
Issuance of Annual Rebate Reports and 5-Year Anniversary Computation Date Reports with an executive
summary and schedules. Identification of the methodology employed, major assumptions, conclusions, and any
recommendations for changes in the City record keeping and investment policy are also included. Report copies
will be provided in the quantity and format requested by the City.
Annual Executive Summary. AMTEC’s Annual Report of all bond issues will be prepared for the City annually,
at each year end and updated on a regular basis throughout the year. The Report is an executive summary of each
outstanding bond issue subject to the rebate requirements. It was developed to assist senior managers understand
the most important issues concerning their arbitrage liability, Code compliance status and other key data, without
having to read multiple rebate reports in their entirety. The Annual Executive summary will list the rebate liability
for all issues at a glance. AMTEC staff and the City will know which issues are the highest priority at all times.
IRS Reporting Requirements
Internal Revenue Service Reporting Requirements including the preparation filings required by the Internal
Revenue Service necessary for the payments of arbitrage rebate or refunds.
IRS Reporting. Should a rebate liability exist on a Computation Date, AMTEC would prepare the required
transmittal documents for IRS reporting. The completed documentation and letter of instructions would be
provided within 45 days advance of the payment due date.
IRS Representation by AMTEC is included and unlimited as long as we are engaged as your consultant. There
is no additional fee for this representation. There is no limit to the amount of support we will provide should the
City become subject to a random IRS inquiry. AMTEC will employ the correct methodology and procedures to
demonstrate to the IRS the compliance work completed by the City is in accordance with the Code.
Exhibit "A"
15
ADDITIONAL SERVICES
Develop Post-Issuance Tax Compliance Policy and Written Procedures and present this Program for
Compliance to the City staff that enables the City to “Check the Box” on lines 43 and 44 of IRS Form 8038-G.
Training of the City Staff regarding arbitrage and rebate. This program is very interesting and provides financial
professionals an overview of this topic and the Code. It is a user friendly presentation and blends the technical
aspects of this topic into an understandable format. The presentation lasts about one-half day and will be provided
upon request for no additional fee.
Electronic Off Site Back-Up. We will provide with electronic back-up of all data and reports generated by
AMTEC for a period that extends three years after the redemption date or last maturity date of an issue. This data
is created daily and moved off-site to a secured storage facility. Should additional support or assistance with
records retention be necessary, documentation or retrieval of any items that are related to its rebate computations,
they will be made available by AMTEC, upon request.
AMTEC’s standard Scope of Services includes, but is not limited to, the following:
• Verification that each issue is subject to the rebate requirements.
• Calculation of the bond yield.
• Calculate the gross proceeds through a reconciliation of the sources and uses of funds.
• Calculation of the yield on all investments, subject to rebate, annually and upon the date that all bonds of
an issue are retired.
• Determine the arbitrage rebate liability.
• Verification of whether a penalty in lieu of rebate has been elected.
• Testing for exceptions from rebate.
• Proforma calculations that include a projection of the arbitrage rebate liability, either negative or
positive.
• Written explanation of the computation methodology and recommendations for rebate reserves. Each
rebate report includes a written explanation of the methodology, assumptions and conclusions
employed. Recommendations for rebate reserves or the elimination of negative arbitrage and
recommendations accompany each report.
• Delivery of updated calculations and formal rebate reports, rebate exception reports and penalty in lieu
of rebate reports, each indicating the above stated information;
• Issuance of the AMTEC professional opinion, which is legally enforceable, stating that the computations
are in accordance with Section 148(f) of the Internal Revenue Code and the Treasury Regulations and
that the methodology used is consistent with current federal tax law and regulations and may be relied
upon by the City in determining its arbitrage rebate liability.
• Delivery of appropriate documentation required to support all computations with each report.
• Unlimited consultation with City personnel, as necessary, regarding arbitrage related matters.
Consultation on the results of our report with staff, bond counsel, auditors, trustees and the IRS.
• Monitoring of the City’s ongoing compliance with all arbitrage requirements for its tax-exempt issues
and the safeguarding of completed projects for a period of six years after the final redemption date of
each issue.
• Assurance to the City that all current issues are in compliance with the Treasury Regulations.
• Guarantee the completeness and accuracy of our work, computation methodology and positive
compliance with Section 148(f) of the Internal Revenue Code and the Treasury Regulations.
• Preparation of IRS Form 8038-T, accompanying documentation, payment instructions and report
delivery, within 45 days of the computation date should a rebate payment be required.
• Review of existing accounting and investment practices / recommendations for improvements.
Exhibit "A"
16
• Assistance in the planning stages of new bond issues to discuss possible rebate exceptions, the pro-forma
testing of anticipated expenditures of proceeds for rebate exception purposes based on a variety of
investment scenarios.
• Provide the City with expert assistance regarding required documents and data collection.
• Request all relevant investment data from the City or trustee and perform reviews and analysis.
• Prepare a comprehensive data base of the bond issues, identifying relevant information such as bond
yield, investment yield, the next rebate calculation date and the rebate liability.
• Provide annual arbitrage rebate reports, and anniversary reports, through the term of the contract.
• Discuss the arbitrage rebate report and findings with City to ensure full understanding of the procedures
and recommendations in such report.
Segment 2 – Company Work Experience and Personnel
Business Organization
Name of Organization American Municipal Tax-Exempt Compliance Corp., dba AMTEC
EIN 06-1308917
Address 90 Avon Meadow Lane, Avon, CT 06001
Telephone Number 860-321-7521
Fax Number 860-321-7581
Business Organization S Corporation
Years in Business 34
Authorized Signatory Raymond H. Bentley, President (rbentley@amteccorp.com)
AMTEC is an independent, minority-owned firm. Our founder began performing arbitrage rebate calculations in
1986 before forming AMTEC in 1990 and today, we remain the oldest dedicated arbitrage rebate specialty firm.
100% of our resources are pledged to arbitrage rebate and refunding verification transactions. The computation
of arbitrage rebate does not require any certification or licenses, other than the registration as a tax preparer with
the IRS. This registration is completed annually and is in place for AMTEC through 2024.
AMTEC operates from a centralized location in Avon, Connecticut. Here, eight professional and support staff
manage our nationwide client base of more than 2,000 municipal bond issuers and the calculations of arbitrage
rebate for more than 7,600 bond issues. The centralized business model results in a focused, collaborative
environment for our personnel that supports swift, accurate and cost-effective service to our client base. We staff
our office from 8 A.M. until 8:00 P.M. Eastern to ensure daily support of our national clients. AMTEC does not
use voice mail before 8:00 P.M., so when you call, a trained staff member will be here to answer your question.
Project Management Structure
AMTEC has been working with the City since 2009. We have streamlined the arbitrage rebate computation
process, resulting in efficient and cost-effective services. AMTEC will only need the assistance of a single City
staff member, knowledgeable in the bond issuance process, to maintain current rebate computations. AMTEC
staff will initiate all requests for data and will deliver rebate reports systematically over time. Ideally, the City will
be able to provide an entire copy of each bond transcript. If one is not available, then we will request the following
data:
Exhibit "A"
17
• Official Statement;
• Federal Tax Certificate;
• IRS Form 8038-G;
• Refunding Verification Report, if one exists; and,
• Monthly bank statements and/or Excel tracking data.
AMTEC Organizational Chart
The AMTEC Team assigned to this engagement, including roles and responsibilities, is described in the Personnel
section response further below.
Prior Experience
AMTEC has achieved 34 years of success in our industry as a provider of Arbitrage Rebate Compliance Services,
and we continue to search for new technologies and methodologies to streamline the computation and compliance
process for our clients and increase our own efficiency. As a result of this focus, we have earned a reputation as a
high-quality, competitively priced provider of Arbitrage Rebate Compliance Services. We can deliver Arbitrage
Rebate Compliance Services for any size bond issue on an extremely cost-effective basis. We have the confidence,
expertise and a proven track record. We also have many references who will confirm our claims of accuracy and
fair dealings.
AMTEC maintains expertise in two key areas of tax compliance:
• Arbitrage Rebate Computations; and,
• Refunding Verification Services.
Project Manager
Michael Scarfo
(Senior VP)
Team Leader
David Mancuso
(Vice President)
Independent Tax
Counsel
Lisa Soeder, Esq.
Back-Up Team
Trong Tran
(Assist. Vice President)
Reserve Staff
Team Member
Casey Komp
(Managing Director)
Independent Compliance
Officer
Michael Torsiello, CPA
Engagement Manager
Raymond Bentley
(President)
Back-Up Team
Joseph Pascucci
(Analyst/Admin)
Back-Up Team
Caitlyn McGovern
(Assist. Vice President)
Team Member
Christopher Linehan
(Vice President)
Exhibit "A"
18
Arbitrage Rebate Computations are AMTEC’s core business. AMTEC developed its program in 1990,
stressing the importance of the arbitrage function not only as a compliance tool for new Regulations, but as a tool
to ensure the highest rate of return from the conservative investment of bond proceeds in qualified securities.
Post-Issuance Tax Compliance is provided in conjunction with arbitrage rebate computations. AMTEC believes
that an issuer who has established and followed comprehensive written procedures to promote post-issuance tax
compliance is less likely to violate the federal tax requirements related to its bond issues. In the current interest
rate environment, it is important to maintain compliance with the Post-Issuance Tax Compliance guidelines and
written procedures, as agreed upon by the City when checking Boxes 43 and 44 of IRS Form 8038-G. Compliance
with post-issuance federal tax requirements, such as arbitrage reporting, involves ongoing monitoring throughout
the life of the bonds.
AMTEC applies the same internal controls and protocol to any bond issue, whether it is for a new client or an
existing client. We have completed thousands of arbitrage rebate computations for numerous types of bonds. By
applying the AMTEC protocol below to each and every type of bond issue, we are able to understand the
intricacies of the transaction prior to preparing our report and ensure the elimination of calculation errors.
1. Gather bond documents and investment records.
2. Thoroughly read the bond documents, especially the Federal Tax Certificate, which is the ‘road map’ of
the bond issuance. This document will specify the sources and uses of funds, elections, yield restrictions
and any other requirements relating to the arbitrage compliance of the bonds.
3. Process investment records and ensure results are reasonable.
4. Prepare arbitrage report for internal review and final issuance.
Refunding Verification Services provide AMTEC with additional, critical expertise compared to the
competition. Since entering into the Refunding Verification business until 2002, we have completed in excess of
2,100 transactions as Refunding Verification Agent to both large and small bond issuers. This line of business has
grown exponentially over the last five years and rivals our arbitrage business. By being a part of the financing
team that is comprised of the largest and brightest investment banks and financial advisors in the United States,
we have become expert in the tax treatment and structure of any type of taxable or tax-exempt bond issue.
Due to AMTEC’s involvement in the role of Verification Agent, our ability to understand each type of bond issue
is enhanced. Our understanding also enables the effective application of the various restrictions placed upon bond
proceeds by Section 148(f) of the Internal Revenue Code and the Arbitrage Regulations. As these restrictions are
recorded in the Federal Tax Agreement by Bond and Tax Counsel, AMTEC is able to comply with these
instructions using the most efficient and cost-effective methodologies.
AMTEC is legally permitted to operate in Texas and registered with the Texas Secretary of State – No. 801266777.
AMTEC has completed arbitrage rebate calculations for more than 400 bond issues in Texas, aggregating over
$15 billion of debt. We have provided Arbitrage Rebate Compliance Services for Texas issuers listed below:
Bexar County City of Lubbock Alamo Regional Mobility Authority
City of San Marcos Brazos River Authority San Antonio Alternative Housing Corp.
McLennan County Stayton at Museum Way San Antonio Housing Authority
Houston Community College Fort Bend Baptist Academy Alamo Area Mutual Housing Association, Inc.
Christian Care Centers, Inc. Merced Housing Texas Buckingham Senior Living Community
(Please also see the separately submitted Attachment B - Reference Sheet for further AMTEC client references
with contact and other related information.)
AMTEC has a well established presence in Texas. We understand Texas public financing and offer arbitrage
expertise / responsive customer service at an economical fee. We are familiar with the local government
Exhibit "A"
19
investment pools and how they function. We have accumulated years of experience in Texas and consequently,
streamlined our processes for our current local clients. We know that the City’s issues are similar to these clients,
which will facilitate our rebate computation procedures.
We will continue to assimilate the City’s arbitrage reporting requirements into our master task schedule with ease.
September 30 is a common fiscal year end for Texas clients – we are aware of the importance of the arbitrage
analyses and will produce results within a timely fashion for the City, as we have annually for local clients for
many years. As you will see below, we have completed a significant number of analyses for local clients. This
regional experience, along with our national practice, has formed the foundation for one of the most
knowledgeable, and oldest, arbitrage rebate computation firms in the United States.
Complex Bond Issues
Complex bond issues utilized by states, agencies, counties and city governments are not foreign to AMTEC. This
is attributed to many years of performing rebate computations and refunding verification services to state level
governments who usually devise the most complex debt structures. AMTEC has completed rebate computations
for complex issues, including revolving fund programs and commercial paper programs, for the high-profile
issuers listed below.
Business Capacity
As an arbitrage rebate specialty firm, we have developed proprietary software and procedures that create
efficiencies and increase our productivity, enabling us to provide a very competitive fee structure that produces
significant savings to our clients. Currently, we have the capacity to complete rebate calculations for an
additional 350 new bond issues annually. Our business plan authorizes the hiring of full-time professional level
financial specialists and support positions to complement the existing staff as growth benchmarks are achieved.
As you will see below, AMTEC has continued growth for many years. We have the experience and business
acumen to know when to increase our staff well before the number of calculations dictates.
Experience Providing Similar Services
AMTEC has been awarded, on average, 310 new bond issues in each of the last five years. We plan for this
growth increase and train staff accordingly. We have never missed a calculation deadline and this record is due
to our organizational expertise, planned professional staff expansion and training program. The staff of AMTEC
can assume the current City issues as well as those that will be issued into the future. We are always ready to assist
our clients with a reputation for service excellence that has been in place for 34 years.
AMTEC computes arbitrage rebate for thousands of bond issues that are structured similarly to the City. The
tables below provide evidence of our experience in providing Arbitrage Rebate Compliance Services and arrays
the types of clients and number of clients since our inception.
From 2019 to 2023
New Bond Issues
Year
#
Bond Issues
Aggregate
Bond Issues
Debt
Issuance
Aggregate
Debt
1990 – 2018 5,895 5,895 $238,097,243,146 $238,097,243,146
2019 307 6,202 $28,719,823,932 $266,817,067,078
2020 294 6,496 $19,670,945,478 $286,488,012,556
2021 319 6,815 $16,857,400,486 $303,345,413,042
2022 270 7,085 $10,729,614,943 $314,075,027,985
2023 362 7,447 $13,272,616,276 $327,347,644,261
19-23 New Issues 1,552
$89,250,401,115
Total Issues 7,447 $327,347,644,261
Exhibit "A"
20
From 2019 to 2023
New Bond Issues
From 2019 to 2023
Calculations Completed
Type
of Issuer
#
Bond Issues Year
# Calculations
Completed
Aggregate
Calculations
State 140 1990 – 2018 24,498 24,498
City / County 429 2019 1,237 25,735
School Districts / Misc. 983 2020 1,255 26,990
19-23 New Issues 1,552 2021 1,493 28,483
2022 1,476 29,959
2023 1,668 31,627
19-23 Calculations 7,129
Total Calculations 31,627
Nationally, we are exclusive arbitrage rebate service provider to the following city and county governments:
Cape Fear Public Utility Authority (NC) Greenville County (SC) Charleston County (SC)
Fort Lauderdale (FL) Bexar County (TX) Tulsa (OK)
Pima County (AZ) Tucson (AZ) Auburn (AL)
Lubbock (TX) Dane County (WI) Colorado Springs (CO)
Nationally, we are exclusive arbitrage rebate service provider to the following state-level issuers:
State of Connecticut New Jersey Building Authority State of West Virginia
Montana Department of Natural Resources and Conservation State of Vermont
Minnesota Public Facilities Authority Alaska Municipal Bond Bank
Ohio Turnpike and Infrastructure Commission State of Mississippi
AMTEC has assisted issuers of tax-advantaged debt on numerous occasions with the Internal Revenue Service.
These matters have involved general audits, pointed audits, arbitrage rebate refunds and arbitrage and yield
reduction payments with or without late interest and penalties. Most, if not all, inquiries were eventually closed
by the IRS with no adverse action to the issuer
Over the years, we have successfully obtained arbitrage rebate refunds in excess of $2,000,000 for our clients;
however, our most satisfying achievement is described below.
An AMTEC client received a letter from the IRS, informing them that a specific bond issue was under general
audit. After months of back and forth, including helping our client provide all data related to the arbitrage rebate
calculation, the IRS computed the rebate liability internally and required that the following be paid:
• $36,546 – Rebate Liability
• $19,223 – Penalty
• $1,193 – Late Interest
Our client had previously retained AMTEC for this analysis and our last report had indicated that the rebate
liability was negative $(324,913.07) – reporting to the IRS was not necessary.
Since AMTEC provides unlimited representation in front of the IRS to all of its clients, we contacted the IRS
and asked for their computations. Upon review, we realized that the IRS had used the Purpose/Nonpurpose
Investment Methodology (discussed above) and failed to make sign convention changes as interest income was
received into the bond proceeds account.
Exhibit "A"
21
By failing to reflect the activity using the appropriate sign convention, investment income deposited into the fund,
which should have been expressed with a minus (–) sign, was processed as though it was an additional
disbursement giving rise to the erroneous rebate liability. AMTEC studied the calculations prepared by the IRS
and responded with our findings. The IRS promptly dropped its inquiry.
This may seem like a simple oversight, but to the untrained and eye, it may have cost a client almost $60,000. As
experts in our field, we defend and stand by our arbitrage rebate analyses. We were persistent and achieved the
outcome in favor of our client.
What did AMTEC charge for this assistance? $0. As your arbitrage rebate consultant, we do not charge an hourly
fee. Representing the City in an IRS audit is included in our Scope of Work, regardless of the amount of time and
effort required for resolution.
Personnel
AMTEC utilizes a team approach for our engagements. Each member of the team is expert in the computation of
rebate and the application of Section 148(f) of the Internal Revenue Code and the Treasury Regulations. The
combination of professional resources has been structured to complete rebate computations accurately, efficiently
and on a cost-effective basis. Our focused approach to rebate calculations translates into a process that identifies
the regulatory needs of the City and enables us to deliver accurate computations for reasonable fees.
The team effort ensures that checks and balances, required for complex assignments, are maintained to validate
the integrity of each rebate report. The expertise of the team also ensures that rebate reports will be completed in
accordance with the reporting schedule. We expect that rebate reports for any issue will be delivered shortly
following the receipt the bond and investment activity from the City.
Each staff member assigned to this engagement endured rigorous and comprehensive training in order to achieve
their current standing within the firm. An AMTEC staff member can only become a team member once they have
learned how to research and understand Section 148 of the Internal Revenue Code and the Arbitrage Regulations
that pertain to arbitrage and apply the Regulations and defend his/her regulatory application to AMTEC’s senior
management.
Team members must be able to compute fixed and variable bond yields using sophisticated software and apply
various regulatory adjustments such as credit enhancement, premium to call bonds and interest rate swap
payments. Once they are fully trained to calculate bond yields, they rely on their training and knowledge of reading
complex legal documents that include the Federal Tax Certificate and the Certification of the Underwriter to
balance the sources and uses of funds. Additionally and importantly, the training ensures our staff can determine
the type of restriction(s) to apply to a particular deposit of bond proceeds to be used for capital expenditures during
the Temporary Period and deposits to Reserve Funds. They also become expert in the determination and
application of the restriction(s) that may apply to post-Temporary Period funds, Escrow Funds and one of the more
complex computations of determining the status of proceeds used in a bona fide debt service fund and the
applicable restriction on any excess proceeds that must be excluded from the bona fide debt service fund
computation.
We have assembled a professional team of two senior managers and three team members for this engagement, as
detailed below.
The Engagement Manager (20% of time) is responsible for the overall effectiveness of the engagement. This
individual will maintain day-to-day contact with the City and will develop and implement the compliance plan for
Exhibit "A"
22
the engagement. They will also coordinate AMTEC’s team to ensure the flow of the work with the City is efficient
and that all predetermined time, service, and other benchmark requirements are met.
The Project Manager (30% of time) ensures that the efforts of AMTEC’s team are directed to provide the City
with clear and concise requests for necessary data and financial information, which is then used to support the
arbitrage rebate calculations and all tax compliance requirements efficiently.
The Project Manager and the Computation Team Members (50% of time) are responsible for the technical
processing of the bond information financial data that was gathered from bond and tax counsel and the City staff.
By receiving this data, the following is determined:
• Bond yield calculation to include swaps, if applicable;
• Reconciliation of Sources and Uses of Proceeds;
• Confirm the correct deposit of bond proceeds into various funds and accounts;
• Ensure applicable restrictions are in compliance;
• Determine Temporary Periods for various classes of proceeds;
• Determine if transferred proceeds allocations are applicable;
• Calculate the rebate, yield restriction liability and bona fide debt service fund exception; and,
• Determine overall rate of return and issue formal arbitrage report.
Professional achievements and designations of key personnel are listed below.
Name/Title of Selected AMTEC Key Personnel (Role) Years of Experience
Raymond H. Bentley, President (Engagement Manager) 24
Michael J. Scarfo, Senior Vice President (Project Manager) 24
David G. Mancuso, CPA, MBA, Vice President (Team Leader) 14
Casey R. Komp, Managing Director (Team Member) 10
Christopher J. Linehan, Vice President (Team Member) 24
Compliance Partner
Michael Torsiello, CPA (Independent Compliance Officer) 26
Raymond H. Bentley, President and Engagement Manager, is the owner of AMTEC. In this role he leads all
aspects of AMTEC’s efforts providing tax-exempt compliance services to a national client base comprising state
governments and agencies; counties, cities, and school districts; and specialty and conduit issuers. Under his
leadership, the firm has continued its tradition of providing high-quality, customized service that serves as the
foundation of its numerous long-standing client relationships. Mr. Bentley has been successful in obtaining in
excess of two million dollars in the recovery of overpayments under the arbitrage rebate provisions for issuers.
During his 24-year tax-exempt compliance career, Mr. Bentley has worked extensively in every technical function
at AMTEC and is thoroughly skilled in every aspect and application of Section 148(f) of the Internal Revenue
Code and the Treasury Regulations. He is one of the few professionals in the U.S. who oversees a portfolio of
arbitrage rebate clients while also acting as refunding verification agent on refinancing transactions.
Mr. Bentley is responsible for the overall effectiveness of the engagement. He develops and implements the
compliance plan for the engagement and maintains contact with the City staff. He coordinates AMTEC’s
management and staff to ensure the flow of the work with the City is efficient and that all predetermined time,
service, and other benchmark requirements are met. The efforts of the Engagement Manager ensure that the work
of AMTEC’s management and staff are directed to provide the City with clear and concise requests for data and
financial information as necessary to deliver the Arbitrage Rebate Compliance Services and all tax-compliance
requirements efficiently.
Exhibit "A"
23
Mr. Bentley is registered as a tax preparer with the IRS. He is an associate member of the National Association
of Bond Lawyers and actively participates in a number of governmental associations. He has also developed and
presented a variety of educational materials to clients and financial professionals on the topics of arbitrage rebate
and post-issuance tax compliance. Mr. Bentley is a graduate of Boston University, where he earned a B.S. in
Mathematics Education. Mr. Bentley promises to service your account today and into the future, as he has for
the past 24 years to countless issuers.
Michael J. Scarfo, Senior Vice President and Project Manager, is a senior officer of the firm with 24 years of
arbitrage rebate computational expertise. Mr. Scarfo has also served as the Project Manager to several of
AMTEC’s high profile clients in state and local government. The expertise required to serve high profile clients
was developed following many years of compiling Arbitrage Rebate Compliance Services. Mr. Scarfo has been
responsible for presenting computational documentation to the Internal Revenue Service, resulting in receipt of
millions of dollars of rebate refunds for AMTEC clients. This accomplishment, along with several VCAP
settlements he has participated in over the years, demonstrates his expertise and application of the Treasury
Regulations and the working relationship he has developed with the IRS.
Mr. Scarfo serves on other AMTEC teams that include the engagement for the States of Minnesota, West Virginia,
Connecticut and Montana, the University of Connecticut, and the Virginia Municipal League / Virginia
Association of Counties. He is fully qualified as a professional in all phases of municipal finance, rebate and
refunding, making him an expert in the application of Section 148(f) of the Internal Revenue Code and the
Treasury Regulations as they relate to tax-advantaged bonds. Mr. Scarfo is a graduate of the University of Utah.
David G. Mancuso, CPA, MBA, Vice President and Team Leader, joined AMTEC ten years ago as a Rebate
Analyst following four years working as a payroll auditor and an accountant. Mr. Mancuso has been promoted to
his current position as a result of his tax background, mastering many aspects of tax compliance tasks that are
necessary to qualify as a Team Leader.
Mr. Mancuso manages a series of complex Arbitrage Rebate Compliance Services in conjunction with other senior
staff members of the firm. He is experienced in applying various computation methodologies through the
issuances of variable and fixed rate debt. He is proficient in the computation of transferred proceeds, management
of parity reserve allocations, allocation of bond proceeds to investment income and the allocation of expenditures.
Mr. Mancuso serves on other AMTEC teams that include the engagement for the States of Minnesota,
Connecticut, and Montana, and the University of Massachusetts. He has prior experience as an accountant in a
public accounting firm, leveraging this experience to his current position. He has mastered refunding analytics
and has achieved a level of understanding of the complex and widely accepted DBC refunding verification
software. He is fully qualified as a professional in all phases of municipal finance, rebate and refunding, making
him an expert in the application of Section 148(f) of the Internal Revenue Code and the Treasury Regulations as
they relate to tax-advantaged bonds. Mr. Mancuso is a graduate of The University of Hartford where he earned
his undergraduate degree in Accounting and an MBA from the University of Tampa.
Casey R. Komp, Managing Director and Team Member, began his career at AMTEC ten years ago. Since
his hire, Mr. Komp has completed hundreds of refunding verification transactions and has successfully filled the
role of Managing Director for AMTEC’s Refunding Verification Service. He has mastered refunding analytics
and has achieved the highest level of understanding of the complex and widely accepted DBC refunding
verification software. He is fully qualified as a professional in all phases of municipal finance and is expert in the
application of Section 148(f) of the Internal Revenue Code and the Treasury Regulations. He is a senior staff
member responsible for AMTEC’s refunding verification product.
Mr. Komp manages a series of complex Arbitrage Rebate Compliance Services in conjunction with other senior
staff members of the firm. He is experienced in applying various computation methodologies through the
Exhibit "A"
24
issuances of variable and fixed rate debt. He is proficient in the computation of transferred proceeds, management
of parity reserve allocations, allocation of bond proceeds to investment income and the allocation of expenditures.
Mr. Komp has been selected multiple times as the engagement manager for the refunding verification by the New
York City Municipal Water Finance Authority, New York State Thruway Authority, and the New York State
Environmental Facilities Corporation. Mr. Komp is the Senior Manager of our engagement with the Regional
Transportation District (Colorado), the States of Connecticut, Kentucky, and Alaska, the University of
Connecticut, and the Cities of Round Rock and Lubbock (TX). Mr. Komp is a graduate of the University of
Hartford, where he earned a B.A. in Mathematics and Minor in Actuarial Science.
Christopher J. Linehan, Vice President and Team Member, joined AMTEC in 2017 following a 17-year
career in the asset management industry. In his current role as Vice President, he oversees the accuracy of the
Arbitrage Rebate Compliance Services, in addition to supporting AMTEC’s refunding verification services efforts
as well as new business development strategies.
Mr. Linehan manages a series of complex Arbitrage Rebate Compliance Services in conjunction with other senior
staff members of the firm. He is experienced in applying various computation methodologies through the
issuances of variable and fixed rate debt. He is proficient in the computation of transferred proceeds, management
of parity reserve allocations, allocation of bond proceeds to investment income and the allocation of expenditures.
Mr. Linehan began his career with GE Company’s investment management arm—GE Asset Management
(GEAM)—where he held various positions of increasing responsibility with the firm’s operations and marketing
teams, ultimately assuming the role of Communications Director. In this position he was responsible for all of
GEAM’s major communications processes and initiatives, spanning public relations, strategic client
communications, and employee engagement. In 2016, he served as GE’s lead communicator for the transition
process and organizational integration of GEAM into State Street Global Advisors as part of GE’s sale of GEAM
to State Street Corporation. Mr. Linehan holds a B.A. from the University of Pennsylvania. While with GE, he
held the Series 7, 24 and 63 securities licenses.
Michael Torsiello, C.P.A. – Tax Compliance Partner, Morrisville, North Carolina, is a compliance partner
who is not an employee of AMTEC. We work with him to provide advice with respect to certain tax matters, but
he does not perform any arbitrage rebate calculations. If he is called upon for consultation, AMTEC will not pass
on the costs of their services to the City. By utilizing this independent expertise, it provides our clients with a
conforming opinion for no additional charge. Mr. Torsiello is a licensed Certified Public Accountant who has
over 26 years of diversified experience in public accounting and financial management of sizable corporations.
Mr. Torsiello is a member of the American Institute of Certified Public Accountants (AICPA) and North Carolina
Association of Certified Public Accountants (NCACPA) and is a Certified Construction Industry Professional.
Mr. Torsiello is AMTEC’s tax compliance partner, when necessary, and ensures each engagement is performed
in accordance with standards established by the AICPA, in addition to signing off on the final refunding
verification report.
Additional Information
• AMTEC has been and will continue to be in compliance with all applicable rules and regulations of
Federal, State and Local governing entities.
• AMTEC agrees to comply with terms of this Request for Proposal and has no Exceptions to any portion
of the Solicitation.
• Neither AMTEC nor its principals have been involved in any litigation within the last three (3) years.
• AMTEC acknowledges receipt of Addendum No: 1, dated August 7, 2024, to this RFP.
Exhibit "A"
25
APPENDIX
AMTEC S/M/ABE Certifications A-1
Exhibit "A"
A-2A-1
Exhibit "A"
SOUTH CENTRAL TEXAS REGIONAL CERTIFICATION AGENCY
Your unified certification source
www.sctrca.org
February 10, 2023
Raymond Bentley
American Municipal Tax-Exempt Compliance Corp. DBA AMTEC
90 Avon Meadow Lane
Avon, CT 06001
Dear Raymond Bentley:
We are pleased to inform you that your application for certification in our Small, Minority, Woman and Veteran Business
Enterprise (S/M/W/V) Program has been approved. Your firm met the requirements of the SCTRCA Policy and Procedure
Manual and is currently certified as a:
**ABE ESBE MBE SBE
Certification Number: 2223028949
Certification Expiration: FFebruary 28, 2025
Providing the following products or services:
NAICS 541219: OTHER ACCOUNTING SERVICES
On the two year anniversary date of your certification, you are required to provide a renewal application affirming that no
changes have occured affecting your certification status. The SCTRCA will send you a Certification Renewal reminder ssixty (60)
days prior to your expiration date. The SCTRCA will no longer include a certificate upon certification renewals. YYour expiration
date is February 28, 2025.
Please notify this office within tthirty (30) days of any changes affecting the size, ownership, control requirements, or any
material change in the information provided in the submission of the certification application. Thank you in advance.
Sincerely,
Sandra Ramos
Executive Director
A-5A-1
Exhibit "A"
South Central Texas Regional Certification Agency of Bexar County, Texas hereby duly affirms that:American Municipal Tax-Exempt Compliance Corp.DBA AMTEChas successfully met the established requirements of SCTRCA's Business Enterprise Certification Program to becertified as a*ABE ESBE MBE SBECertified NAICS CodesNAICS 541219: OTHER ACCOUNTING SERVICESCertification Number: 223028949Effective Date: February 10, 2023Expiration Date: February 28, 2025SSandra RamosExecutive DirectorNote: This certificate is the property of the South Central Texas Regional Certification Agency and may be revoked should the above named firm graduate from or fails tocomply with SCTRCA's Business Enterprise Program. A Certification Renewal Application is required every two years.A-6A-1
Exhibit "A"
1
City of Round Rock, Texas
Request for Proposal (RFP)
Arbitrage Rebate Compliance Services
Solicitation Number 24-028
Segment 3 – Cost Proposal
As a long-time AMTEC client, the City has direct experience with AMTEC and its senior management has
experienced the delivery of prompt, accurate and reasonably priced services. There has never been any ambiguity
over our costs or the level of service we promised and delivered.
We understand your complex bond issues better than any other competitor. While our experience is evidenced by
34 years of service and more that 7,600 issues under engagement, it is most important to us that the City and its
bond counsel feel that AMTEC has provided the expertise and stewardship of the arbitrage function since 2009
and would like to continue with this relationship.
Since our initial engagement in 2009, we have NEVER charged the City an hourly fee for consultation, regardless
of the amount of time necessary to respond to emails/questions or participate in phone calls or assistance with IRS
related issues. We will not start now – there is no loaded hourly rate.
AMTEC is proposing the following guaranteed fee structure: $500 per bond issue, per year (or any part
thereof) that requires analysis.
Based upon the information provided by the City as part of this RFP in Attachment C, the City has identified three
outstanding bond issues with proceeds remaining. (Our understanding is that the fourth issue with proceeds
remaining shown in Attachment C, the 2022 State Infrastructure Bank Loan, is not subject to rebate calculations.)
As a result, and given the City’s request to cease rebate reporting for an issuance once all bond proceeds
have been expended, we have computed a guaranteed annual fee not to exceed $1,500 for Fiscal Year 2025,
and a total (not to exceed) 5-year cost fee of $7,500 for Fiscal Years 2025 through 2029 for the issues with
proceeds remaining, as identified in Attachment C.
Please note that we will not charge any more than this amount to complete the arbitrage rebate computations over
this five-year period; however, it is likely that our fee will be less if it is determined that a report(s) is not required.
Please also note that, in order to ensure AMTEC’s cost proposal for this submission is comparable to the cost
proposals other respondents are likely to submit (i.e., reflecting the same number of issues with proceeds remaining
and requiring calculations), this fee is based solely on the provided information in Attachment C reflecting which
issues currently have proceeds remaining. In any given year, should any other issues that require rebate
calculations also have proceeds remaining, an additional fee of $500 per bond issue, per year (or any part thereof)
that requires analysis will be charged to the City.
Exhibit "A"
2
Annual reporting will be scheduled as of September 30, the fiscal year-end of the City, and our analyses will be
delivered before November 15. Additionally required Computation Date Reports that fall on bond anniversary
dates within the fiscal year will be prepared for no additional fee. There is no fee for an interim requested report.
There is no fee for a yield reduction calculation.
AMTEC’s guaranteed fees are guaranteed and all-inclusive. Follow-up consultation and services after
completion of the arbitrage calculation are included for no additional fee as long as AMTEC is your arbitrage
provider. AMTEC will not charge more than $500 per bond issue, per year (or any part thereof) that requires
analysis, regardless of the time and effort necessary to ensure tax compliance. This applies to future City bonds
as well. There is no additional fee for any other efforts, such as a yield restriction calculation, a variable rate
calculation, commingled funds, transferred proceeds or any other calculation that is in addition to the arbitrage
report fee listed above. There is also no fee difference between fixed and variable rate issues, nor are there set-up
fees, add-on fees, other annual fees or filing fees. We do not charge anything additional for interim updates or
reports, we do not charge for yield restriction calculations (which are included for no fee with our rebate
calculation), nor do we charge for preparation of IRS payment filing forms. In addition, if new regulations require
amending previous calculations, AMTEC will amend its previous calculations for no additional fee to the City.
IRS Audit or Other Representation – AMTEC will provide the City with the necessary support in the event of
an IRS inquiry. Additionally, we will work with the City’s staff and consultants regarding all arbitrage related
matters. AMTEC will not assess an additional hourly rate for this support. Unlimited support for the City is
provided because we are your arbitrage consultant.
Exhibit "A"
ATTACHMENT B
REFERENCE SHEET
PLEASE COMPLETE AND RETURN THIS FORM WITH THE SOLICITATION RESPONSE
SOLICITATION NUMBER: 24-028
RESPONDENT’S NAME: American Municipal Tax-Exempt Compliance Corp., dba AMTEC DATE: August 21, 2024
Provide the name, address, telephone number and E-MAIL of at least three (3) valid Municipal,
Government agencies or firms of comparable size that have utilized services that are similar in type and
capacity within the last two (2) years. City of Round Rock references are not applicable. References may
be checked prior to award. If references cannot be confirmed or if any negative responses are received it
may result in the disqualification of submittal.
1. Company’s Name Bexar County, Texas (AMTEC arbitrage rebate client since 2008)
Name of Contact Juan Arteaga
Title of Contact Director of Accounting
E-Mail Address jarteaga@bexar.org
Present Address 101 W. Nueva, Suite 800
City, State, Zip Code San Antonio, TX 78205
Telephone Number ( 210 ) 335-2301 Fax Number: ( 210 ) 335-2683
2. Company’s Name City of Lubbock, Texas (AMTEC arbitrage rebate client since 2007)
Name of Contact Amber Magar, CPA
Title of Contact Capital Program Finance Manager
E-Mail Address AMagar@mylubbock.us
Present Address 1625 13th Street
City, State, Zip Code Lubbock, TX 79401
Telephone Number ( 806 ) 775-2160 Fax Number: ( 806 ) 775-3273
3. Company’s Name City of San Marcos, Texas (AMTEC arbitrage rebate client since 2018)
Name of Contact Jesse Garcia
Title of Contact Accounting Manager
E-Mail Address JGarcia@sanmarcostx.gov
Present Address 630 E. Hopkins Street
City, State, Zip Code San Marcos, TX 78666
Telephone Number ( 512 ) 393-8179 Fax Number: ( 855 ) 697-4658
FAILURE TO PROVIDE THE REQUIRED INFORMATION WITH THE SOLICITATION RESPONSE MAY
AUTOMATICALLY DISQUALIFY THE RESPONSE FROM CONSIDERATION FOR AWARD.
Exhibit "A"
1
City of Round Rock, Texas
Request for Proposal (RFP)
Arbitrage Rebate Compliance Services
Solicitation Number 24-028
AMTEC agrees to comply with terms of this Request for Proposal and has no Exceptions to any portion of the
Solicitation.
Exhibit "A"