09.02 - Utility Rate Study Proposals

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I LETTER OF TRANSMITTAL January 20, 2012 Ms. Sandy Peine, City Clerk City of Pequot Lakes 4638 County Road 11 Pequot Lakes, Minnesota 56447 Re: Request for Proposal to Provide Utility Rate Analysis — Water and Sewer Dear Ms. Peine: On behalf of Springsted Incorporated, I want to thank you for the opportunity to provide the City of Pequot Lakes with our proposal to provide a Utility Rate Analysis for the City's water and sewer systems. Although Springsted has not had the opportunity to formally work with the City in the past, we want to ensure you that we are fully committed to partnering with you to achieve all of your objectives as a city. To demonstrate our commitment to acquiring a detailed working knowledge of the financial condition of the City's Water and Sewer Funds, accompanying the proposal in Appendix I is a Financial Management Analysis report that focuses on key indicators of your Enterprise Funds, including financial health and recent historical experience. Also accompanying the proposal in Appendix III is an analysis of the refunding (refinancing) of the City's current USDA loan (GO Bonds of 2000). The analysis currently shows that debt service related to this bond could be reduced annually by an average $4,288 ($120,000 total savings) unless the City were to have the bond rated, which in our opinion, would significantly and positively impact your savings. The savings estimated are inclusive of all costs of issuance so there would be no out of pocket expenses to the City for the refunding. Any savings achieved impact the results of the utility rate analysis, therefore we would propose that we be retained to proceed with the refunding in conjunction with the rate study providing the most current, up to date and positive overall results for the City. As you review the contents of our proposal, we want to emphasize Springsted's responsibilities to the City. Our hallmark is to provide timely, high - quality and clear products and services to assist staff and elected officials in making informed decisions. Public Sector Advisors Springsted Incorporated 380 Jackson Street, Suite 300 Springsted Saint Paul, MN 55101 -4705 Tel: 651-223-3000 Fax:651- 223 -3002 www.springsted.com LETTER OF TRANSMITTAL January 20, 2012 Ms. Sandy Peine, City Clerk City of Pequot Lakes 4638 County Road 11 Pequot Lakes, Minnesota 56447 Re: Request for Proposal to Provide Utility Rate Analysis — Water and Sewer Dear Ms. Peine: On behalf of Springsted Incorporated, I want to thank you for the opportunity to provide the City of Pequot Lakes with our proposal to provide a Utility Rate Analysis for the City's water and sewer systems. Although Springsted has not had the opportunity to formally work with the City in the past, we want to ensure you that we are fully committed to partnering with you to achieve all of your objectives as a city. To demonstrate our commitment to acquiring a detailed working knowledge of the financial condition of the City's Water and Sewer Funds, accompanying the proposal in Appendix I is a Financial Management Analysis report that focuses on key indicators of your Enterprise Funds, including financial health and recent historical experience. Also accompanying the proposal in Appendix III is an analysis of the refunding (refinancing) of the City's current USDA loan (GO Bonds of 2000). The analysis currently shows that debt service related to this bond could be reduced annually by an average $4,288 ($120,000 total savings) unless the City were to have the bond rated, which in our opinion, would significantly and positively impact your savings. The savings estimated are inclusive of all costs of issuance so there would be no out of pocket expenses to the City for the refunding. Any savings achieved impact the results of the utility rate analysis, therefore we would propose that we be retained to proceed with the refunding in conjunction with the rate study providing the most current, up to date and positive overall results for the City. As you review the contents of our proposal, we want to emphasize Springsted's responsibilities to the City. Our hallmark is to provide timely, high - quality and clear products and services to assist staff and elected officials in making informed decisions. Public Sector Advisors