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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: 1) 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 Bonds, 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. 2) Studies and Analysis - Juran and Moody perform debt management studies and financial planning analysis free of charge. Springsted charges a per hour rate for all services that are non-debt obligation related. 3) Personal Attention - The majority of Springsted's clients are large cities such as Maple Grove, Coon Rapids, and Woodbury. Juran and Moody focus more on the smaller cities, such as Andover, Chaska, and Osseo. This may seem like a minor detail, but in recent negotiations with Springsted (who the City has currently used on it bond sales) it was apparent that Springsted considered the City a minor player. By saying this, staff was referring to the lack of staff updates and communication between the City and Springsted. A smaller firm representative, with smaller cities would most likely devote more personal attention to the City's projects and possibly even expedite important projects. Finance Officer Lund noted that award of the contract for financial services does not eliminate Springsted Public Finance Advisors from negotiating with the City in future years. The City is, at this time, negotiating a one year agreement. At the end of the term, the City will examine the service offered fi'om the financial consultant and a recommendation will be made as to whether to continue with the said financial institution for the following year. Kathy Aho, Springsted Public Financial Advisors, stated that she has worked with the City for numerous years and feels that Springsted is the right firm for the City. She explained that Springsted does not buy and sell securities they only .offer advice to their customers. She reviewed the types of services that Springsted has to offer the City of Ramsey. Ms. Aho stated that she understands that there has been some communications problems over the last year between the City of Ramsey and Springsted staff, and explained that Springsted has had numerous turnovers which have impacted the City of Ramsey more than other cities. She stated that Springsted has put together a team that they feel will be a benefit to the City of Ramsey. The first person on the team would be John Moir who recently came to Springsted after being the Finance Director for the City of Minneapolis, the second member on the team would be Brenda Krueger who is in the client services. John Moir, Springsted Public Finance Advisors, reviewed Springsted's municipal market analysis. He explained that Springsted is the #1 financial advisor in Minnesota and has the Finance Committee/October 10, 2000 Page 2 of 5