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AWARD CONTRACT FOR FINANCIAL ADVISORY SERVICES By: Diana Lund, Finance Officer FC #1 Background: On September 11, 2000, staff solicited proposals for financial advisory services by distributing the "Request for Proposal - Financial Advisory Services" to the firms of Springsted Public Finance Advisors and Juran and Moody. Proposals were sent out at this time, as the City had not solicited proposals on Financial services for several years. The City wanted to review what was available in the marketplace for financial services. Proposals were due by Friday, September 22, 2000. Both Springsted and Juran and Moody returned a proposal of services offered and a fee schedule. A copy of each fee schedule and proposal is attached. The Financial Advisor selection was discussed briefly at the Finance Committee meeting on September 26, 2000, but was tabled for a later period when there would be more time for open discussion. The City of Ramsey uses a financial consultant not only in the structuring and issuance of bonds, but for the assistance in projects such as revenue forecasting, cash analysis for applications like tax increment financing, and for any special projects which the City has inquiries about possible funding alternatives. The financial consultant works closely with the City's bond attorney (Briggs & Morgan) in several of the projects listed above. The City has recently used a financial consultant for the sale of Lease Revenue Bonds (Fire Station #2), Tax Increment Bonds (Water Tower #2), and Capital Equipment Certificates. In looking through the proposals by Springsted Public Finance Advisors and Juran and Moody, the services they offer are very comparable and either consultant could provide the services requested by the City. Although the scoring was close, Juran and Moody ranked higher than Springsted on a few issues which follow: i) Proposed Fees for Debt Issuance - The cost of issuing General Obligation debt is fairly consistent between the firms, but Springsted is considerably higher in the issuance of Lease Revenue and Revenue Bonds. For example, Springsted charges $14,250 for the issuance of a $1,000,000 Lease Revenue Bond, whereas, Juran and Moody's fee would be $11,250. Additionally, Springsted charges for all issuance costs involved such as printing of statement, travel, etc. Juran and Moody's fees for issuance costs are included in the initial fee. (Ex: $11,250)