HomeMy WebLinkAboutItem 9 NSI Agreement Financial Planning II_22Jan2013 (2) FINANCIAL PLANNING AGREEMENT
BY AND BETWEEN
THE CITY OF LAKE ELMO,MINNESOTA
AND
NORTHLAND SECURITIES,INC.
FINANCIAL PLANNING SERVICES II
This Agreement made and entered into by and between the City of Lake Elmo, Minnesota
(hereinafter "City") and Northland Securities, Inc., of Minneapolis, Minnesota (hereinafter
"NSI").
WITNESSETH
WHEREAS, the City desires to use the services of NSI for financial planning for the City's
water, sanitary sewer, and storm water utility systems, including, planning for user charges and
rates(hereinafter"Project").
WHEREAS,NSI desires to furnish services to the City as hereinafter described,
NOW,THEREFORE, it is agreed by and between the parties as follows:
SERVICES TO BE PROVIDED BY NSI
The scope of work to be performed by NSI is based on the following factors:
1. Using updated estimated for growth in service demand,update estimated user charges for
water,sanitary sewer, and storm sewer service to ensure adequate operating revenues and
reserves are maintained.
2. The analysis of user charges must consider updated future capital improvement plans to be
provided by the City's engineering firm.
3. The impacts of revision to prior estimates and changes to user charges on local residents and
businesses must be clearly understood and managed.
NSI will undertake the following tasks:
1. Conduct meeting with City Staff and the City's engineering firm to review project
objectives, assumptions included in prior analysis, and to collect updated background data,
including revised estimates for capital improvement plans.
Service Agreement—Financial Planning Services 11 Page 1
2. Review background information about water,sanitary sewer,and storm sewer utilities. The
City has the responsibility for collecting and providing NSI with information needed to
conduct the study. Information sought by NSI includes:
a. Current user rate schedules, as adopted for 2013.
b. Plans for capital improvements in years 2012 through 2016(and future years if
available) including type of improvement,estimated cost,funding source, and
timing.
3. Update the financial model created by NSI for the City for sanitary sewer,water, and
storm sewer systems. The updated model will be used to analyze and explain the
implications of alternative user charge structures. At a minimum,the model will
analyze changes in:operating expenses;system usage;customers;capital improvements;
and funding options.
4. Review results. NSI will meet with the City to review results of the analysis.
5. Report initial findings and recommendations. NSI will prepare a memorandum that
explains the results of the analysis in Tasks 4-5 and presents a recommended course of
action.
This scope of work includes up to two (2)meetings with the City to review results.
COMPENSATION
For the services specified, NSI will be paid an amount not to exceed $3,000. The amount is
based on the estimated number of hours required to complete these tasks at an hourly billing
rate of $160/hour plus reimbursable expenses for travel, printing and mailing. NSI will bill
on a monthly basis for actual services performed and reimbursable expenses.
ASSIGINED NORTHLAND EMPLOYEE
The NSI employee responsible for providing services pursuant to this agreement and for the
services performed is Tammy Omdal.
SUCCESSORS OR ASSIGNS
The terms and provisions of this Agreement are binding upon and inure to the benefit of the
City and NSI and their successors or assigns.
DISCLAIMER
In performing service under this agreement, NSI is relying on the accuracy of information
provided by the City and the services provided by Northland are based on current State Law.
The parties agree that the Minnesota property tax system and other laws may change and may
affect the accuracy and validity of services provided by NSI. NSI will perform its work using
the best available information. The City recognizes and accepts that future property values,tax
levies and tax rates may vary from the assumptions used by NSI and such changes may affect
the work product produced and provided by NSI.
Service Agreement—Financial Planning Services 11 Page 2
TERM OF THIS AGREEMENT
This Agreement may be terminated by thirty (30) days written notice by either the City or NSI.
In the event of early termination by the City, NSI shall provide the City with an itemized hourly
statement of services already provided. All billable hours by NSI shall be billed at the stated
hourly rates should early termination occur.
Dated this_day of January,2013.
Northland Securities,Inc.
By: iv,
City of Lake Elmo,Minnesota
By:
City Administrator
Service Agreement—Financial Planning Services 11 Page 3