Agenda - Council - 11/14/2000 - Laserfiche WebLink

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above. The City has recently used a financial consultant for the sale and Lease of R~e:n..'i!! Bonds (Fire Station #9), Tax Increment Bonds (Water Tower #2), and Capital ~¢~}P~i~i~}(~! Certificates. In looking through the proposals by Springsted Pubhc F~nance Advm.~(~}and ~Jur_an *-'~ and Moody, the services they offer are very comparable and either consultant cod'al:provide the services requested by the City. Although the scoring was close, Juran and Mo°~i~':~'!higher than Springsted on a few issues which follow: ~.~?~5~;~' ' ~,~ Pro osed Fees for Debt Issuance- The cost of issuing Gener~:Obli~¢6~- debt is fa}~'.::~'~':.~,~ ) co~Psistent between the rims, but Springsted is considerably hi~'~n,:the i§~ance of Lease Revenue and Revenue Bonds. For example, Springsted ch~j~$14,2~p¢~or the issuance of a ~:M¢od's fe'~~ would be $11,250 0 Lease Revenue Bonds, whereas, Juran an~:~:: y ' $1,000,00 .~i~-?~ ' . · ~:-,~' 'Additionally, Sprin~sted charges for all issuance costs'~¥61ved suclxas pnntmg of statement, t,-~,ml ~ta luran affd Moody's fees for issuance co~i~ inCluded ~i~he initial fee. 2) S~u'd"i;;'a-~d'-~-~Iysis- Jur~m and Moody perfoi~:~'d~b~:~anageme~t:.s~es and financial planning analysis free of charge. Springsted cha(ges a 3:a 'hou= ' fi%1: Xii services that are non-debt obligation related. , '~ , , , 3) Personal Attention - The majority of Springsted s clients ai~;::!ar.ge cities such as ~v~ap~e Grove, Coon Rapids, and Woodbu~. Juran and Moody focus"~)e,.on~t14:~ ~maller cities, such as Andover, Chaska, and ©~§e°~;~:~This may seem like .a mmo~ ~1, but m recent negotiations with Spr/ngstecL:(~'h~d'/~e:~"c~ihas. currently used om, i~':~i~ond sales) it was apparent that Springsted ~m'-iaei;e~!;the Cibf~::a!.:~0.[ .p. layer.., B~!.§aying this, staff was referring to the lack of staff~Jpdate~;i~hd cornmuni9/~ti'dn~7~tweei~i:~the City and Springsted. A smaller firm representative, with s/ii'er citi~!!~0uld ~;¢I~i~ely devote more personal attention to the City s projects and poS'~ib!y e~:~g~xpedite;~"~rrant projects. Finance Officer Lund:'f°t~::tha award of th~::bontract for financial services does not eliminate Spfingsted pub~Finance'~ctvis°rs from ne~,tin~i~ith the City in future years. The City is, at this timi¢¢~:"otiating a oG)ear agreement. ~X~~ end of the term, the City will examine the servxceofferedgfrom the finan..mal consultant ani~!i~ecommendation will be made at to whether to cont~ue wttkthe said finanmM~Ututmn fO~:}the following ye . Councilmember 'A~nd'~0n stated that sh~' was conCerned with the request because she was not ~;:'-' .... e that the Ci ~'bidding for financial services and that the staff only requested b~ds from City AdminS~tor Norm~fd'plied that Juran and Moody offer the same services as S.pnngsted. and that staff'i!a~es the p~ftion that they are the people that have to work with the adwsors and they feel comf6rtable with working with Juran and Moody. ~:.~: :-. Counc~lmemberAnderso replied that the City Council has to take the responsibility and felt that -'iii/flXe issue sh~0UI'd be researched further. She stated that it is not proper to submit a request for ~r~PosaI'S!t0;'one company that City staff is not in favor of and another company that st'afl ts faV'ori:ng.? She wants to make sure that the City enters into an agreement with a company that has theiaP~ropriate amount of staff to help the City. -54- Finance Committee/September 26, 2000 Page 2 of 3