8.1. SR 09-16-2013 - Laserfiche WebLink

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City of Elk Request for Action River To Item Number Mayor and City Council 8.1 Agenda Section Meeting Date Prepared by General Business September 16, 2013 Tim Simon, Finance Director Item Description Reviewed by Financial Advisory Services Cal Portner, City Administrator Reviewed by Action Requested Approve by motion, Springsted,Inc.,to provide financial advisory services to the City of Elk River. Background/Discussion The City and Elk River Municipal Utilities (ERMU) have completed a review of professional services over the past few years which included audit and insurance agent of record. A joint request for proposal (RFP) was initiated to review the financial advisory services. We received four proposals in response to our RFP. An interview committee was formed which included Councilmember Wilson, Finance Director,Assistant Finance Director, City Administrator, Economic Development Director, and ERMU's Finance Manager. The committee interviewed three of the firms on August 23. After committee discussion, references were checked on two of the firms based on the interviews. The committee unanimously selected Springsted to recommend to the City Council for financial advisor services. The committee felt Springsted would provide a fresh perspective, expertise, and very strong customer service. Springsted also provides a full service approach which includes everything from long-range financial plans to organizational development items. Springsted represents cities larger and smaller than Elk River,including Blaine,Maple Grove,Lino Lakes, Shoreview, and Roseville. They also work with public utilities in Moorhead and Marshall. Springsted currently represents approximately 10% of all AAA-rated governments. The committee felt that Springsted had a very strong economic development service which includes tax increment,tax abatement,and strategic planning for future economic development needs. Our Economic Development staff recently worked with them on a tax increment financing project and felt it went very well even considering the short timeframes. As part of the RFP, Springsted completed a credit rating analysis review which we will share at an upcoming meeting. Financial Impact Financial advisory fees are based on when we need services, for example when we do a bond issue or tax increment financing. All three firm's fees ranged relatively close on an hourly basis also. Attachments ■ August 23, 2013, Springsted Handout P a w E R E U 6 Y NaA f RE]