8.1. SR 09-16-2013 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
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