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<br />Request for Action <br /> <br /> <br /> <br /> <br /> <br />To Item Number <br />Mayor and City Council 4.5 <br />Agenda Section Meeting Date Prepared by <br />Consent March 4, 2024 Cal Portner, City Administrator <br />Item Description Reviewed by <br />Master Service Agreement: Municipal Advisory <br />Engagement <br />Reviewed by <br /> <br /> <br />Action Requested <br />Approve, by motion, the Master Service Agreement with Baker Tilly for Municipal Advisory Engagement. <br /> <br />Background/Discussion <br />The City of Elk River has contracted with Baker Tilly (formerly Springsted) for general municipal financial <br />advisory work, securities issuance, continuing disclosure, and arbitrage compliance since 2013. Baker Tilly sent <br />out new Master Service Agreements with updated fees to many clients last year. Our last contract with them is <br />dated June 27, 2019, when Baker Tilly acquired Springsted. We have not had our fees adjusted since 2016. With <br />the long lag of time and with inflation they felt it was time to do so; therefore, they began implementing these <br />new fees in 2023. <br /> <br />Following is a summary of the changes: <br /> Price increases for bond issuances vs current contract averages a 25% increase. <br /> Eliminates recalculation of MA fee when Par is reduced on sale day due to premium. <br /> Increased pricing transparency. <br /> Non ad valorem and advance refunding goes from 1.25 x fee to 1.35 x fee. <br /> Referenda debt changed from 1.10 x fee to 1.25 x fee. <br /> Added 30-day notice in advance of fee changes (current contract didn’t allow us to change fees without <br />modified contract). <br /> Hourly rates increased as per the Standard Hourly Rates table below: <br /> <br /> <br /> <br />The arbitrage fees compared to prior fees based on the city’s contract for calculations to be done every 5-years; <br />under the old contract a five-year calculation would be $3,100, the new fee is $4,500. <br /> <br />The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional <br /> <br />service, and community engagement that encourages and inspires prosperity. <br /> Updated: August 2020 <br /> <br />