Agenda Packets - 1983/10/24 - Laserfiche WebLink

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-2- After the written proposals were received and the presentations were made, staff contacted five to six references which had been provided by each firm. The references included staff members of client cities and bond attorneys. These reference checks provided the following profiles of each firm. Public Financial Systems was founded in 1981. The principals of the firm were previously heads of divisions of another Minnesota based financial consulting firm. Public Financial Systems has been described as a young, aggressive, and growing firm that seeks new and innovative financing methods for their clients. They have a respectable list of clients. References contacted stated that they would do a good job for the City. Springsted, Inc. is a well established financial consulting firm. It was founded approximately fifty years ago. In terms of the number of bond issues handled for clients, it is the largest firm in Minnesota and the nation. Sprinsted, Inc. has been described as a very professional firm. References state that they tend toward conservatism in their financing metods. They have a very respectable list of clients. References contacted stated that they would do a very good job for the City. Fees charged by consulting firms for bond issues are calculated on the basis of the size of the issue. The fee schedules of Springsted, Inc. and Public Financial Systems, although based �I upon the size of a bond issue, are not directly comparable as each uses a different formula to calculate their fee. In order l_� to provide a comparison, the fees of each firm for a $1,500 000 and a $3,500,000 issue were calculated and are listed below. In addition, the fees of our present financial consultant were also calculated. FEES FOR A $1,500,000 BOND ISSUE Public Financial Systems $1, 9,500 Springsted, Inc. 13,0900 Ehlers 6 Assoc., Inc. FEES FOR A $3,500,000 BOND ISSUE Public Financial Systems $135 00 Springsted, Inc. 1, 5,700 00 Ehlers 6 Assoc., Inc. The Clerk -Administrator and I were very impressed with the technical competence of Springsted, Inc. staff members and the professionalism of both their written proposal and their presentation of it. They seemed to be the most technically competent and were honest and straight forward in their dealings with us. In answering our questions, they presented us with their professional opinions and not "what we wanted to hear". In our judgement, Springsted, Inc. appears to be the most qualified to serve the needs of the City of Mounds View.