On July 23, 2013 (M&C C-26350), the City Council authorized contracts with First Southwest Company (City Secretary Contract (CSC) No. 45144), First Southwest Asset Management, Inc. ( CSC No. 45387), FSC Disclosure Services, a division of First Southwest Company (CSC No. 45200) and Estrada Hinojosa & Company (CSC No. 45274) to provide financial advisory, arbitrage rebate compliance services and continuing disclosure services to the City. The amendments will allow the City to continue these services for an additional year. The amendments will also acknowledge the following changes in ownership. First Southwest Company and FSC Continuing Disclosure Services were acquired by Hilltop Securities, Inc., and First Southwest Asset Management, Inc., is now First Southwest Asset Management, LLC.
FirstSouthwest, a Division of Hilltop Securities, Inc., and Estrada Hinojosa & Company, Inc., have satisfactorily served as the City' s co-financial advisors for over a decade. The fee structure for financial advisory services will be a base fee in the amount of $35,000.00 plus $0.75 per $1,000.00 denomination for each series of bond issues. As in the current contract, the fee will be split 65/35 between the two firms, respectively. FirstSouthwest, a Division of Hilltop Securities, Inc., the lead financial advisor, and Estrada Hinojosa & Company , Inc., a certified minority-owned firm and the co-financial advisor, are in compliance with the City's BDE Ordinance by committing to the work fees on bond transactions being split 65/35 between the two firms respectively on this project.
Typically, no charges for financial advisory services related to bond transactions are incurred unless bonds are actually sold. The Agreements will also provide for the financial advisors to provide special financial consulting work not directly related to a bond sale with compensation paid based on an hourly rate ranging from the amount of $75.00 for work performed by administrative assistants to the amount of $250.00 per hour for work performed by managing directors, executive vice presidents or senior vice presidents. An individual engagement letter will be executed for each special project compensated on an hourly basis.
Arbitrage rebate compliance services will be provided by First Southwest Asset Management, LLC, and FSC Disclosure Services, A Division of Hilltop Securities, Inc., will provide continuing disclosure services. Disclosure services will be compensated at a rate of $2,500.00 per year for assistance in preparation and distribution of each annual report and the amount of $3,500.00 per year for distribution of audited financial statements. Arbitrage rebate compliance services will be compensated at a rate of $1,400.00 per computation year. Additional fees would apply for specialized arbitrage-related services, if needed, in connection with an IRS refund request of commercial paper calculations. |
