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Baker Tilly proposal to City of Bozeman MT for Utility Rate Consuting and Financial Services 082423
1 August 24, 2023 City of Bozeman, MT Proposal for utility rate consulting and financial analysis Contents The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. © 2023 Baker Tilly Municipal Advisors, LLC. Baker Tilly Municipal Advisors, LLC is a registered municipal advisor and controlled subsidiary of Baker Tilly US, LLP, an accounting firm. Baker Tilly US, LLP trading as Baker Tilly is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. LETTER OF TRANSMITTAL ............................................................................................ 1 PROJECT DESCRIPTION AND APPROACH ................................................................. 2 PROJECT TEAM ............................................................................................................ 10 RELATED EXPERIENCE ............................................................................................... 13 COST PROPOSAL ......................................................................................................... 26 APPENDIX: RESUMES .................................................................................................. 28 ATTACHMENT A: NONDISCRIMINATION AND EQUAL PAY AFFIRMATION ........... 35 Baker Tilly is responsive, interactive and produces the results they say they will. We are very pleased with the services they provide and consider Baker Tilly a leader among accounting and advisory firms. Controller “ 1 Letter of transmittal August 24, 2023 Mike Maas, City Clerk City of Bozeman PO Box 1230 Bozeman, MT 59771 Delivered electronically Dear Mr. Maas: Baker Tilly Municipal Advisors, LLC (BTMA) appreciates the opportunity to further our work with the City of Bozeman, MT (City), specifically regarding your request for proposals (RFP) for utility rate consulting and financial analysis. We understand the City is seeking proposals from firms to serve as the consultant of record for water, sewer and stormwater rates for a five-year period. Our proposal is based on our substantial experience providing utility rate studies and financial analysis to other municipal utilities throughout the United States. We are committed to meeting all established timelines and criteria set forth in the RFP. As the fourth largest city in Montana tasked with providing municipal utility services to more than 50,000 residents, including Montana State University, the City has unique business needs and concerns. We are eager to further demonstrate how BTMA will help you address your most pressing goals and objectives so that your attention can remain focused on serving your citizens and customers. Benefits of working with BTMA include: The right firm The City will benefit from our best-of-both-worlds solution that pairs the technical qualifications, technology tools and expansive resources of the largest firms with the responsive service, personalized attention and proactive communication of smaller firms. The right experience We are structured around industry-specialized practice groups, allowing us to provide focused training and continuing education to our team. Our understanding of your organization, paired with targeted experience serving municipal utility clients, will help you thrive now and as you evolve. The right team Your handpicked engagement team of includes technical and industry-specialized team members who understand your organization’s requirements, challenges and opportunities. You will receive a tailored approach designed to meet your needs and exceed your expectations. The right value We provide high-quality service for a fair and reasonable fee. Our significant level of partner and manager involvement translates into a responsive, efficient engagement and the ability to deliver value throughout the year. The City is a valued client of BTMA, and we will be personally involved in all aspects of our relationship, from planning through completion. Thank you for the opportunity to make tangible contributions to your success. Our team is excited to earn your trust, and we look forward to discussing your questions and feedback. Sincerely, Scott Miller, CPA, Partner +1 (317) 465 1506 scott.miller@bakertilly.com Brad Elmer, CFA, Managing Director +1 (608) 240 6760 brad.elmer@bakertilly.com Steve Scharff, Senior Manager +1 (651) 223 3003 steve.scharff@bakertilly.com Baker Tilly Municipal Advisors, LLC 8365 Keystone Crossing Suite 300 Indianapolis, IN 46240 +1 (317) 465 1500 bakertilly.com 2 Project description and approach Our relationship-driven approach is powered by technology and led by partners and managers who deliver a cost-effective, quality engagement for the City. We will deliver solutions that address the underlying complexities and your unique opportunities. Provide a statement of the goods and/or services to be provided including a detailed explanation of how the goods and services are to be provided. Understanding your needs to achieve your goals The City requests qualifications from one or more qualified consultants to assist with the performance of specific rate studies, review and advice on rate modeling and rate model maintenance, development of financial plans and models and the preparation of cost of service analyses for each utility. This section details our understanding of the project scope and approach to the financial services. Approach to utility financial services BTMA has extensive experience providing the types of financial and municipal advisory services requested by the City, including long-term financial planning, rate and cost of service analysis and the development of various rate models designed to achieve the City’s objectives of sufficient and appropriate cost recovery from its customers. We will work with management to determine a customized approach to successfully provide the utility financial services requested. We believe the combination of our accounting, rate analysis and design and municipal advisory service experience sets us apart from other rate consultants. The data we collect to undertake a utility rate study or cost of service study will include historical financial data, consumption and billing data, current rates, fees and charges, anticipated capital improvements, current and proposed debt, financial policies, customer growth projections, asset management plans, master plans, information from outstanding wholesale contracts in place and other relevant data. The analytical procedures we apply can vary based on the scope of each project requested by the client. For example, some clients request cost allocations to functional cost components, some request alternative rate structures, and other services. In all cases, our analytical approach is to develop financial projections to determine the overall change in revenue required to provide for adequate funding for major capital improvement programs, to meet all recurring annual operating and capital expenditures, to cover all debt service requirements, to comply with any revenue bond and loan covenants, and to maintain sufficient cash balances and capital reserves. This approach forms the basis for determining rates to provide the needed revenues to effectively and efficiently operate the City’s utilities while at the same time minimizing to the extent possible the future impact on customer rates. 3 PROJECT DESCRIPTION AND APPROACH We will perform the required tasks in the RFP, including the following: Analyze financial history and rate structure, identification of data needs, and comparative analysis of rate structures in other similarly situated municipalities. This will include analysis of the utilities’ financial statements, detailed revenues and expenses, and the current rate structure and fees. A comparative analysis of rate structures will also be included. Revenue requirement analysis BTMA will develop a financial plan and future revenue requirements, a future capital plan (based on information from the City), recommended reserve policy for operations, capital replacement and emergencies and provide financial planning considering various scenarios from the capital markets. BTMA will recommend scenarios in collaboration with the City. We will include capacity calculations for funding new capital projects and for determining cost based system development charges. Cost of service analysis BTMA will perform a cost of service analysis based on industry-accepted guidelines and rate setting principles as provided by American Water Works Association (AWWA), Water Environment Federation (WEF) and other industry publications. This analysis will allow us to develop cost-based rates and charges with proper allocations to the various customer classes to ensure equitable recovery of the revenue requirements for all customer classes. Depending on the cost shift and rate burden on certain customer classes, the City may want to consider phasing in the cost of service shift to certain customer classes over a period of years and phasing in any rate adjustment to mitigate rate shock as much as possible. Rate structure options analysis BTMA will calculate various rate structure options based on current rate-making methodologies, comparing them to the current rates increased for the projected revenue requirements. We will consider the consistency between rate and fee schedules, consumption/revenue elasticity based on the proposed rate adjustments, adequate and equitable usage, demand and basic charges, low-income rates and charges and the need to accomplish short term goals and long-term stabilization. Implementation strategy and customer impacts analysis BTMA will work with the City to develop strategic planning regarding the rate study and show the customer impacts of the proposed rate structures. This strategy will be based on BTMA’s extensive experience related to financial planning and developing cost-based rates and charges, and frequently includes a phased implementation of the adjustments to rates and charges. BTMA will assist the City with transparency and implementation of any rate change from the customer service, billing, equity, public education and administrative perspectives. BTMA will provide the findings in a spreadsheet and written form and prepare documents, graphs, PowerPoint slides and publications to facilitate public awareness of the need for a rate adjustment and the equitability of rates and charges. Final report and recommendations BTMA will provide a written report and presentation with the final recommendations and participate in in-person meetings with the City as the subject matter expert as necessary. 4 PROJECT DESCRIPTION AND APPROACH Project management BTMA will perform project management work for this engagement, including preparing a project schedule, holding progress meetings or calls at least monthly, preparing presentations for and attending meetings to present the financial analysis and recommendations derived from same, and managing and addressing the City’s comments and questions on tasks and deliverables, and preparing written reports and other deliverables as required. Other Financial Services BTMA provides a wide range of services related to the financial operations of municipal utilities. Furthermore, we closely monitor industry activity and publications to stay abreast of the latest issues impacting utilities across the country. We will notify you should we identify other items of potential interest for consideration by the City. Achieving your objectives BTMA has extensive experience with long-term financial forecasts, cost of service and rate studies. Our utility specialization uniquely qualifies our firm to provide value-added consulting services to the City. Our dedicated utility professionals will provide you with realistic ideas and solutions to your challenges. We understand your unique business needs and our principal objective is to provide you with strategic insights and assist you in achieving your long-term goals. Our process to help the City of Bozeman achieve its objectives and our approach to this project is shown in the diagram above. Further details are provided in the tasks that follow. 5 PROJECT DESCRIPTION AND APPROACH Approach and methodology PROJECT APPROACH TO ACHIEVE YOUR OBJECTIVE TASK 1 – ADMINISTRATION/COORDINATION/MEETING • Project kick-off meeting • Introduce project team • Review project approach and revise, as required • Discuss and confirm the study objectives, scope and approach presented in this proposal • Arrange logistics including data collection, specific dates for status reports and meetings, contact persons at the City and any remaining contractual matters • Finalize work plan, including any revisions to the proposed objectives, scope and approach, as well as consultant assignments and specific schedules for the project tasks • Provide data requests listing key data and documents needed by BTMA for the study TASK 2 – REVIEW BACKGROUND INFORMATION • Review background information for each utility • Review the City ’s current water, sewer and storm water rates • Review the City’s current policies, goals and objectives • Review historical financial information, volumetric rates, system fees, meter fees, residential equivalent units, and other fees and charges that provide sources of revenue • Review relevant current financial and operating information including adopted budgets, Annual Comprehensive Financial Reports, and internal financial forecasts and financial reports • Review historical trends in revenues, expenditures and ending cash balances • Evaluate the current rate schedule’s ability to adequately fund future operational and capital requirements; estimates will include optimistic, pessimistic and most likely assumptions • Review projected maintenance, repair and/or replacement costs of existing utility assets • Review any current allocation of costs to functional cost components, and to rates and charges • Review any current allocations of capital costs to system development fees, connection fees and other charges • Review current and historical billing data • Review historical water consumption • Review current funding practices, funding sources and policies related to financing capital improvements • Review and update the existing capital improvement plan identifying the sources of funding for each improvement • Review outstanding debt service related to the water, sewer and storm water utilities • Review any existing debt service coverage requirements for both senior and subordinate debt and the impact of adding additional debt to finance new capital improvements • Analyze and make recommendations on the current fees and charges to determine whether there are additional service fees and charges that are currently not assessed and may be applicable to each utility’s provision of services as well as how the fees imposed by the City of Bozeman compare to neighboring communities in Montana • Review ordinances, policies and practices related to user fees, system development fees and other charges for utility services 6 PROJECT DESCRIPTION AND APPROACH PROJECT APPROACH TO ACHIEVE YOUR OBJECTIVE • Review the historical growth of the customer base and projections for anticipated growth for each utility • Review any asset management plans • Review any engineering studies, cost of services studies and other relevant studies related to each utility • Review the planning period to be used in the studies • Analyze information and develop a fully burdened cost of providing water, sewer and storm water services to all customers, including a review of outstanding debt, and current and projected operations and capital expenses to provide a baseline scenario cost of service analysis • Analyze the information to identify any omissions and/or inconsistencies and collect additional information, as needed • Develop projected customer growth and future service demands • Develop a Microsoft® Excel-based financial rate model that enables the projection of revenue requirements, cost of service and rate increases needed for each utility. • The model will identify the overall change in revenue required to provide for adequate funding for major capital improvement programs, to meet all recurring annual operating and capital expenditures, to cover all debt service requirements, to comply with any revenue bond and loan covenants, and to maintain sufficient cash balances and capital reserves for each utility • The projections will be made using an income statement approach and will include a yearly cash flow analysis • It will incorporate dashboard graphics that can be used to present the historical and projected future financial performance of the utilities • Develop a baseline scenario cost of service analysis to identify the relative responsibility of each rate classification for the recovery of the costs of service that provides equity to the users • Equity to the users will be evaluated based on the ability to allocate the cost of service to each customer class in proportion to the benefit received • Analyze current and historical revenue and billing data to estimate the reliability of rate forecasts for the baseline scenario fiscal year and through subsequent fiscal years • Project the cost of providing services • Review utility rate comparisons with other cities, rate equity analysis including any recommended changes, the baseline scenario and preliminary rate model with the City • Based on our discussion and review of the preliminary rate model, BTMA will make modifications or changes, incorporating the City’s comments into preliminary rate model, as appropriate TASK 3 – CONDUCT RATE STUDY • Using the rate model, we will develop a multi-year financial projection for each utility that integrates all anticipated revenue sources, anticipated operating expenditures, including existing and projected new depreciation, anticipated capital expenditures, existing and projected debt service, and changes in the customer base over the planning period: • Develop recommendations for the financing of the anticipated capital improvements • Evaluate financing alternatives and structures to minimize rate impacts to the greatest extent possible • Develop recommendations for cash reserve balances • Identify the overall change in revenue required to provide for adequate funding for major capital improvement programs, to meet all recurring annual operating and capital expenditures, to 7 PROJECT DESCRIPTION AND APPROACH PROJECT APPROACH TO ACHIEVE YOUR OBJECTIVE cover all debt service requirements, to comply with any existing revenue bond and loan covenants, and to maintain sufficient cash balances and capital reserves • The projections will be made using an income statement approach and will include a yearly cash flow analysis • Develop potential new rate structures. • Each potential rate structure will provide revenue recovery at levels necessary to support each utility’s operation as defined above for a multi-year period. • Rates developed will include fixed and variable user fees, system fees, and other fees and charges that provide sources of revenue to each utility. • Our recommended fee/rate structures will result in no decrease in the stability of revenue streams for each utility, as compared to the current rate structures. Rate structure will take into consideration the following: • Ability to fairly distribute the cost of service among customers • Current and future cost of providing utility services in accordance with established and anticipated standards and regulations • Projected demand • The need to fund both long-term capital improvements and replacements, and annual capital reinvestment • Funding requirements for all current and anticipated long-term liabilities and debt obligations (bonds and loans) • Impact of current and future environmental regulations • Maintenance of existing utility assets and infrastructure • Direct identification of revenues appropriate to fund utility operating activities and infrastructure • Base rates to cover fixed costs and consumption rates to cover variable costs • The City’s utility billing system • Justification of any special classes of customers • Ease of administration and understanding • Weigh the benefits of any proposed charges in rate structures against the financial impacts on ratepayers, including an affordability analysis for residential customers • Perform a sensitivity analysis to illustrate the impacts of adverse assumption changes (e.g., future customer growth, water sales, seasonable aberrations, operating costs, capital costs) • Compare the proposed fees and charges to the current rates, fees and charges and demonstrate the effect of proposed rates on typical utility customers • Identification of customer accounts receiving a change of ten percent from their current billing • Evaluate and compare the proposed fee structures to the current fee structures and to the fee structure of neighboring local government utilities previously identified. Penalties for late fees and certification on taxes will be included. • Make recommendations for reasonable operational or policy level strategies (i.e., refinancing, combining or paying off outstanding bond issues, deferring or accelerating capital investment which the City may reasonably consider for mitigating the impact of any proposed/required rate increases • Make recommendations on any changes in miscellaneous fees and charges to ensure they are reasonable; compare these to the fees and charges of the five neighboring communities selected 8 PROJECT DESCRIPTION AND APPROACH PROJECT APPROACH TO ACHIEVE YOUR OBJECTIVE • Review the rate study, alternative rate structures, comparison with other municipalities, financial projections, and final rate model with the City. Based on this review, we will modify or change the rate study and rate model, incorporating the City’s comments as appropriate. TASK 4 – PREPARE AND PRESENT REPORT OF FINDINGS AND RECOMMENDATIONS • BTMA will prepare and present a Report of Findings and Recommendations that will contain our findings and recommended rate structures to the City in a workshop session. • We will provide an electronic copy in PDF format • We will present the final rate model to City staff in a workshop session and provide training on its use. The model will be provided on flash drive and will have an instruction page built into it. Expectations In order to conduct this study, the City will need to designate a staff member to serve as a project manager. This person will be responsible for assisting BTMA with any questions that may arise regarding the utilities and reviewing the draft and final reports. Meeting your deadlines BTMA has the resources to begin your utility rate consulting and financial analysis immediately upon receiving the notice to proceed. We will work with the City to develop an acceptable timeline for each specific scope of work as needed. Below is an illustrative timeline based on previous rate studies conducted for similar municipalities. Upon selection, we will work with you to further refine the timing of project milestones to meet City deadlines and objectives. TASK MONTH 1 MONTH 2 MONTH 3 MONTH 4 Task 1 Task 2 Task 3 Task 4 9 PROJECT DESCRIPTION AND APPROACH TIMELINE MILESTONE Month 1 • Project kick-off meeting • Develop mutually agreed-upon timeline and work plan Month 2 • Review of data provided by City staff • Fieldwork to finalize analysis of historical data, assumptions and forecasted results • Review of utility rate comparison with other cities, rate equity analysis baseline scenario, and preliminary rate model with the City Month 3 • Review of alternative rate structures, comparison with other cities, financial projections, and final rate model with the City Month 4 • Present Final Report • Present and train the City on rate model COMMITMENT TO SUCCESSFULLY DELIVER SERVICES TO MEET THE CITY’S REQUIREMENTS The City’s time is valuable. We will co-develop a timeline to provide the City’s services on time or ahead of schedule. 10 Project team The City will work with a consistent engagement team who understand your organization and can add value from day one. The combination of your engagement team’s public sector experience and service knowledge translates into tangible results for the City. List the experience and qualifications of staff who will be working on the project. Describe the applicable skills and accomplishments of the project manager. Confirm availability and commitment of named key staff to the project. If the project manager is not local, identify any local contact and describe how project management, coordination and communications with the City will be accomplished. Do not include persons who will not be working on the project. Include resumes at the back of the proposal which reflect education, registrations and experience of key staff. Aligning key engagement team members with your goals Your handpicked team of professionals offers a collaborative focus supported by the breadth and depth of our firm’s national resources. We believe in strong personal relationships, and this means a personal interest in the City from some of our most experienced team members. Engagement team members are introduced below, and complete resumes are available in the Appendix. INTENTIONALLY SELECTED ENGAGEMENT TEAM FOR THE CITY Scott Miller CPA, MAS — Partner Role: Engagement partner Scott will oversee the engagement to make sure the City receives a meaningful, genuine experience. He will work with our engagement team to provide a seamless and well-planned engagement process, valuable solutions and technically accurate final deliverables to achieve your goals. Scott specializes in providing utility rate and financial advisory services as well as assisting with financial and capital forecasts, and impact fees. Doug Baldessari, CPA – Partner Role: Rate setting specialist Doug has more than 20 years of experience serving public sector entities. He specializes in financial studies and projects for municipally owned water, sewage and stormwater utilities, not-for-profit water, regional water and sewer districts and conservancy districts. These projects often involve bond financing, financial analysis and determining utility revenue requirements, cost-of-service studies, asset management, and financial planning associated with capital acquisition. Brad Elmer, CFA – Managing director Role: Financial planning specialist Brad brings 20 years of public finance experience to BTMA and has assisted with the issuance of over $5 billion of municipal revenue, general obligation and appropriation debt in the State of Wisconsin, including large bond transactions for Wisconsin sewer utilities. Drawing on both public and private experience, Brad 11 PROJECT TEAM INTENTIONALLY SELECTED ENGAGEMENT TEAM FOR THE CITY helps clients evaluate financing alternatives and advises on the issuance of bonds, private placements, and loans. He has also managed $1 billion of commercial paper and a $200 million derivative portfolio used to finance capital projects in Wisconsin. Steve Scharff – Senior manager Role: Project manager Steve’s experience primarily consists of serving state and local government organizations by providing nuanced capital finance solutions through comprehensive debt and capital structuring; ongoing debt management; performing security pricing analysis; proforma cashflow forecasting including Tax Increment, special district revenues, housing/project finance modeling, structuring effective underwriting/lending requests for proposals, reviewing legal documents and performing various ad-hoc reporting and analysis. THE CITY WILL RECEIVE TANGIBLE RESULTS WITH BTMA All engagement team members are committed to the City’s success. Their industry experience and service expertise translate into tangible results for the City. Securing our proposed team members’ availability We are committed to staffing your project with our proposed team. To make sure this happens, our firm uses ProStaff scheduling software to plan and secure each team member’s availability. Project managers will also meet monthly to make sure our time is managed to meet your needs. The team members identified in this proposal will perform the City’s financial consulting work. They will not be substituted with other personnel or reassigned to another project without the City’s approval. Serving the City effectively from anywhere Borderless client service approach Baker Tilly goes to market by industry and service specialization, so we assign team members based on skill set rather than geographic location. Each team member selected to serve the City will bring individual strengths that directly benefit your engagement. Based on our understanding of your needs, we can provide the best service by managing our relationship with the City out of our Indianapolis, IN and St Paul, MN offices based on a similar client base, public sector focus and targeted experience serving organizations like yours. Your engagement team has the technology tools to support the City in meeting objectives from anywhere. None of this is new to our Baker Tilly professionals. We have led a borderless client service approach for many years and are adept at providing a seamless remote experience for all clients, whether they are down the street, on the other side of the country or across the ocean. Every Baker Tilly professional receives a laptop and remote access credentials to connect to our internal network resources from outside the office. 12 PROJECT TEAM Your team is only a day away for face-to-face meetings, if appropriate — the same level of commitment we provide “local” clients. When we are not able to meet in person, we leverage Microsoft Teams, our web conferencing software, to host remote meetings. It is almost as good as being in the same room and saves everyone time, cost and carbon footprint. This approach has been very successful for similar clients, and we will make sure it is successful for you. 13 Related experience Provide project descriptions for up to five recent projects similar in nature to the proposed project, including completion dates, measures that indicate quality and successful project completion, and a client reference name and phone number. Indicate the involvement of proposed key staff on those or similar projects. Indicate the team’s familiarity with the local area. Provide any background information on the size, capability and location of the firm that may be beneficial. Rate study experience BTMA has extensive knowledge of ratemaking and municipal finance across the country. We currently serve as municipal advisor for both large and small municipalities, as well as a wide array of other entities, such as economic development districts and special districts. For several decades, our specialists have worked with communities to review and develop cost-based utility rates and connection/impact fees, explore available financing for project improvements, and perform long-range financial forecasting. We help as many as 50 utility clients each year prepare for the future through long-term forecasting and planning for major capital projects that require creative rate and funding solutions. This experience provides a broad view of industry issues and a specific familiarity with municipal utility goals. Competed rate studies Below is a representative list of rate studies completed within the last few years. RECENTLY COMPLETED RATE STUDIES Client State Project Alexandria Municipal Sewage Works IN 2020 Rates Alexandria Municipal Water Utility IN 2020 Rates Alexandria Sanitation IN 2021 Rates Alexandria Stormwater Utility IN 2020 Rates Allen County Regional Water and Sewer District IN 2020 Rates Argos Municipal Water Utility IN 2021 Rates Ashland WI Water & sewer rate study Avilla Municipal Electric Utility IN 2021 Rates Avilla Municipal Sewage Works IN 2021 Rates Bargersville Electric Utility IN 2020 Rates Bath Charter Township, Clinton County MI 2021 Rates (Sewer) Berrien Springs Village, MI MI 2020 Rates (SAW) Big Creek Mentor Utility Authority MI 2020 Rates (SAW) Black River Falls Municipal Utilities WI Sewer rate study Blue Lake Sewage IN 2021 Rates Boonville Stormwater Utility IN 2020 Rates Boyne City, City of MI 2020 Rates (Water) Brazil Sewage Works IN 2020 Rates Brazil Stormwater IN 2020 Rates 14 RELATED EXPERIENCE RECENTLY COMPLETED RATE STUDIES Client State Project Brazil Water Utility IN 2020 Rates Bridgman, City of MI 2022 Rates (DWAM) Brighton Township MI 2020 Rates (SAW) Brockway Township Sanitary District 1 WI Sewer Rate Study Bronson, City of MI 2021 Rates (SAW) Brookston Sewage Works IN 2021 Rates Brookston Water Utility IN 2021 Rates Brownsburg, Town of IN 2021 Rates Buchanan, City of MI 2022 Rates (W&S) (Comp Projection) Burns Harbor Sanitation Department IN 2020 Rates Burr Oak Village MI 2020 Rates (SAW) Butler Municipal Sewage Works IN 2020 Rates Butler Municipal Sewage Works IN 2021 Rates Butler Municipal Sewage Works IN 2022 SDI Rates Cadillac, City of MI 2020 Rates (Water) Calumet Township Sewer IN 2021 Rates Carlisle Municipal Water Utility IN 2022 Rates (URT) Carlisle Stormwater IN 2021 Rates Carp Lake Township MI 2020 Rates (SAW) Center Township Sewer IN 2021 Rates Centerville Sanitation IN 2020 Rates Chandler Municipal Water Utility IN 2022 Rates (URT Decrease) Charlestown Municipal Sewage Works IN 2020 Rates Charlestown Sanitation Department IN 2020 Rates Chesterfield Water Utility IN 2021 Rates Chisholm MN Water, Sewer & Solid Waste Collection Utility Rate Study Churubusco Sewage Works IN 2020 Rates Citizens Westfield Gas IN 2022 Rates (IURC) City of Coloma, MI MI 2022 Rates (Water) (Comp Forecast) Clark County Stormwater KY 2021 Rates Clarksville Municipal Sewage Works IN 2021 Rates Clayton Municipal Sewage Works IN 2020 Rates Clear Lake Municipal Sewage Works IN 2021 Sanitation Rates Clear Lake Municipal Sewage Works IN 2021 Rates Cologne MN Utility Rate Study Connersville Municipal Sewage Works IN 2021 Rates Courtland Township, MI MI 2022 Rates (Sewer) (Comp Forecast) Culver Sewage Works IN 2021 Rates Culver Water Utility IN 2021 Rates 15 RELATED EXPERIENCE RECENTLY COMPLETED RATE STUDIES Client State Project Cumberland Sewage Works IN 2021 Rates Cumberland Stormwater Utility IN 2021 Rates Decatur County Rural Water Corp. IN 2022 Rates Dublin Electric Utility IN 2021 Rates Dublin Water Utility IN 2021 Rates Dubois Water Utilities, Inc. IN 2021 Rates Dunkirk Municipal Stormwater Utility IN 2020 Rates Durand, City of MI 2021 Rates (W&S) East Chicago Sanitary District IN 2020 Rates Eastern Bartholomew Water Corporation IN 2020 Wholesale Rates El Dorado KS Army Corps of Engineers Water Reservoir Analysis Elk Rapids, Village of MI 2020 Rates (SAW) Elkhart County Regional Sewer District IN 2021 Rates Elkhart County, IN IN 2021 Rates (New Sewer System) Elkhart Municipal Water Utility IN 2021 Rates (IURC) Ellettsville Municipal Sewage Works IN 2020 Rates Ellettsville Municipal Sewage Works IN 2022 Rates Ellettsville Water Utility IN 2020 Rates Ellettsville Water Utility IN 2022 Rates Escanaba, City of MI 2018 Rates (Water) Evansville, IN, City of IN 2021 IURC Rates Evansville, IN, City of IN 2022 Rates (COS) Evart, City of MI 2020 Rates (W&S) Fenton Charter Township, Genesee County MI 2022 Rates (W&S) Fenton Charter Township, Genesee County MI 2022 Rates (W&S) Ferrysburg, City of MI 2020 Rates (SAW) Florence Regional Sewer District IN 2022 Rates Fort Branch Sewage Works IN 2019 Rates Fort Madison IA Sewer Rate Study IFA Loan Proforma Fort Wayne City Utilities IN 2022 Rates French Lick Sewage Works IN 2020 Rates Gahanna, City of OH 2021 Rates Georgetown Sewage Works IN 2021 Rates German Township Water District, Inc. IN 2020 Rates Glenwood Water Utility IN 2022 Rates (URT) Goshen Sewage Works IN 2021 Rates Grandview Water Utility IN 2020 Wholesale Rates Grandview Water Utility IN 2021 Rates Greencastle Municipal Water Utility IN 2020 Rates 16 RELATED EXPERIENCE RECENTLY COMPLETED RATE STUDIES Client State Project Greenville Town Utilities IN 2022 Rates Griffith Water Utility IN 2021 Rates GRSD Authority MI 2022 Rates Gull Lake Sewer & Water Authority MI 2021 Rates (Sewer) Hagerstown Electric Utility IN 2021 Rates Hagerstown Sewage IN 2021 Rates Hagerstown Water Utility IN 2021 Rates Hamilton Lake Conservancy District IN 2020 Rates Harbor Springs Utility Authority MI 2020 Rates (SAW) Harrison County Sewer IN 2021 Rates Harrisonville MO CWSS rate review Haubstadt Water Utility IN 2022 Rates Hendricks County Conservancy District IN 2022 Rates Hobart Sanitary District IN 2021 Rates Hibbing MN Sewer Rate Study Hobart Stormwater Utility IN 2021 Rates Huntington County IN 2020 Rates Huntington Municipal Sewage Works IN 2021 Rates Huntington Water Utility IN 2021 Rates Jackson, MI, City of MI 2020 Rates (SAW) Jackson, MI, City of MI 2020 Rates (Water) Jasonville Stormwater Utility IN 2020 Prelim. Rates Jasper Electric Utility IN 2021 Rates Kent City MI, Village of MI 2021 Rates (SAW) Kentwood, City of MI 2020 Rates (SAW) La Plata MD Water and wastewater major facility fees LaGrange County Regional Utility District IN 2020 Rates LaGrange County Regional Utility District IN 2021 Rates LaGrange Sewage Works IN 2021 Rates Lake Dalecarlia Regional Sewer District IN 2020 Rates Lakes Area Sewage MI 2020 Rates Laketon Township, Muskegon County MI 2020 Rates (SAW) Lawrence Sewage Works, IN IN 2021 Rates Lawton, Village of MI 2021 Rates (W&S) Lebanon Electric Utility IN 2022 Rates (URT Decrease) Lebanon Municipal Sewage Works IN 2022 Rates (Avail) Lebanon Water Utility IN 2022 Rates (Avail) Lebanon Water Utility IN 2022 Rates (URT Decrease) Leesburg Municipal Sewage Works IN 2022 Rates Leo-Cedarville Sewage Works IN 2020 Rates 17 RELATED EXPERIENCE RECENTLY COMPLETED RATE STUDIES Client State Project Leo-Cedarville Water Utility IN 2020 Rates Linden, City of MI 2021 Rates (W&S) Lino Lakes MN Utility Rate Study Loogootee Municipal Water Utility IN 2021 Wholesale Rates Marcellus, Village of MI 2020 Rates (SAW) Marshall County RSD IN 2020 Rates Maysville Regional Water And Sewer District IN 2020 Rates Maysville Regional Water And Sewer District IN 2021 Rates Medaryville Water Utility IN 2022 Rates Merrillville Conservancy District IN 2021 Rates Minnetonka MN Water and Sewer Rate Study Monon Municipal Sewage Works IN 2022 Preliminary Rates Monroe City Water Utility, OH OH 2021 Rates Morgan County IN 2021 Rates Morgan County IN 2022 Rates Montgomery MN Utility Rate Study Mount Vernon Municipal Sewage Works IN 2021 Rates Mulberry Municipal Sewage Works IN 2022 Rates Mulberry Municipal Water Utility IN 2022 Rates Muncie Sanitary District IN 2022 Rates (DCRWD) Munster Municipal Utilities IN 2020 Preliminary Rates (Sewer & Water) New Buffalo Township, Berrien County MI 2020 Rates (Sewer) New Buffalo, City of MI 2022 Rates (W&S) New Carlisle Municipal Electric Utility IN 2022 Rates New Prague MN Debt Model and Rate Study Updates Newberry Village MI MI 2020 Rates (SAW) Newburgh Municipal Sewage Works IN 2021 Rates Newton County Regional Water & Sewer District IN 2021 Rates (Sewer) Newton County Regional Water & Sewer District IN 2022 Rates (Wholesale Water - Mt. Ayr) Noblesville Wastewater Utility Department IN 2021 Rates (Availability Fees) North Houghton County WSA MI 2020 Rates (SAW) Northfield MN Water and sewer rate study Oakdale MN Water Sewer Storm Street Rate Study Oakdale MN Sewer Cost Allocation with Lake Elmo Owosso, City of MI 2021 Rates (W&S) Parchment, City of MI 2020 Rates (SAW) Parkville MO Wastewater Admin Charge Allocation Pierceton Municipal Sewage Works IN 2021 Rates Pierceton Municipal Water Utility IN 2021 Rates Pike-Gibson Water, Inc. IN 2020 Rates 18 RELATED EXPERIENCE RECENTLY COMPLETED RATE STUDIES Client State Project Pinckney, Village of MI 2021 Rates (SAW) Pine Lake Conservancy District IN 2021 Rates Pleasant Springs, Town of WI Accounting Assistance Plymouth Wastewater Utility IN 2020 Rates (Pretty Lake) Portage Sewage Works IN 2022 Rates Porter County IN 2021 Rates Porter Sewage Works IN 2020 Rates Portland City, MI MI 2020 Rates (SAW) Portland Municipal Stormwater Utility IN 2020 Rates Princeton Municipal Sewage Works IN 2020 TMMI Rates Reed City, City of MI 2020 Rates (SAW) Rensselaer Municipal Gas Utility IN 2021 Rates Rensselaer Sanitation Department IN 2020 Rates Rensselaer Water Utility IN 2020 Rates Reynolds Municipal Sewage Works IN 2020 Rates Reynolds Municipal Water Utility IN 2020 Rates Roann Municipal Sewage Works IN 2022 Rates Roann Municipal Water Works IN 2022 Rates Roanoke Sewer Utility IN 2021 Rates Rochester Municipal Water Utility IN 2020 Rates (Misc. Charges) Rochester Stormwater, IN IN 2022 Rates Royal Center Water IN 2021 Rates Saginaw, City of MI 2021 Rates (Sewer) Salem Municipal Utilities IN 2018 Rates Saline, MI, City of MI 2021 Rates Saugatuck Township, MI MI 2021 Rates (W&S) Schoolcraft, Village of MI 2022 Rates (W,S,R) (Comp Forecast) Scott County Sewage IN 2021 Rates Scottsburg Municipal Sewage Works IN 2022 Rates (Wholesale) Sellersburg Municipal Sewage Works IN 2020 Rates Sellersburg Municipal Water Utility IN 2020 Rates Shelby, Michigan, Village of MI 2022 Rates (Sewer) Sister Lakes Area Utility Authority MI 2021 Rates (SAW) South Bend Municipal Sewage Works IN 2020 Rates South Bend Municipal Water Utility IN 2020 Rates (IURC) South Bend Stormwater Utility IN 2020 Rates South County Water and Sewer Authority MI 2020 Rates (SAW) Speedway Sewage Works IN 2021 Rates Speedway Water Utility IN 2021 Rates Springfield, MI, City of MI 2021 Rates (W&S) 19 RELATED EXPERIENCE RECENTLY COMPLETED RATE STUDIES Client State Project Spurgeon Water Utility IN 2021 Rates St. Anthony Water Corporation IN 2020 Rates St. Anthony Water Corporation IN 2021 Rates St. Henry Water Corporation IN 2021 Rates St. Johns, City of MI 2020 Rates (W&S) St. Joseph, City of MI 2021 Rates Sudlersville MD Water and sewerage utility rate study Tell City Municipal Sewage Works IN 2020 Cannelton Rates Tipton Electric Utility IN 2021 Rates Tri-Township Water Corporation IN 2021 Rates Valparaiso Department of Waterworks IN 2021 Rates Valparaiso Water Reclamation Department IN 2021 Rates Van Buren Sewage Works, IN IN 2021 Rates Van Buren Water Utility, IN IN 2021 Rates Versailles Sewage Works IN 2022 Rates Versailles Water Utility IN 2020 Rates Wakarusa Municipal Water Utility IN 2022 Rates Wakarusa Sewage Works IN 2020 Rates Warsaw Stormwater Utility IN 2020 Rates Washington Municipal Electric Utility IN 2021 Rates Washington Municipal Sewage Works IN 2021 Rates Washington Municipal Water Utility IN 2021 Rates Washington Stormwater Utility IN 2021 Rates West Central Conservancy District IN 2022 Rates (SDC) West Milton Utilities, OH MI 2021 Rates (Sewer & Water) Wheatfield Municipal Sewage Works IN 2021 Rates White Pigeon Sanitary System MI 2021 Rates (SAW) Whitehall Sewage Works, OH OH 2020 Rates Whitehall Water Utility, OH OH 2020 Rates Whitley County Regional Sewer District IN 2020 Rates Wilkinson Sewage Works IN 2020 Rates Winchester Stormwater Utility, IN IN 2021 Rates Winona Lake Stormwater Utility IN 2020 Rates Wolcottville Municipal Sewage Works IN 2020 Rates Wyoming MN Stormwater Utility Rate Study 20 RELATED EXPERIENCE Demonstrating successful relationships with similar clients We encourage you to connect with the clients below to learn more about the value of their relationship with BTMA. Each client will offer a different perspective as you consider your own needs. LEBANON MUNICIPAL UTILITIES Contact information Sandra Morgan, Chief Financial Officer +1 (765) 482 8816 | smorgan@lebanon-utilities.com Project description For more than 30 years, BTMA has provided rate and financing services for the City’s water, sewer, electric, telecommunications and stormwater utilities. These services have included rate and cost of service studies, non-recurring charge calculations, availability fee implementation and the issuance of revenue bonds through the State Revolving Fund and the capital markets. Completion dates Availability fee analyses and non-recurring charge analyses were completed in 2022 for water and sewer. Water rates were last calculated in 2020 and resulted in a two-phase increase in conjunction with a financing in 2021. Sewer rates were last calculated in 2015 and supported a 2021 financing. At present, BTMA is assisting with the evaluation of rate and financing solutions for a multi-billion-dollar expansion of water and sewer service in a new state sponsored technology and industrial park currently under construction in the City’s service territory. Staff involvement Scott Miller – Engagement lead EVANSVILLE MUNICIPAL UTILITIES Contact information Lane Young, Executive Director +1 (812) 436 4560 | ltyoung@ewsu.com Project description Sewage Works – Since 2005, BTMA has helped the Utility execute its long-term control plan through the completion of multiple cost of service and rate studies and the issuance of over $500 million in State Revolving Fund and capital market financing for system improvements. Water Utility – Since 2006, BTMA has complete six state regulated water rate and financing cases involving cost of service and rate studies and the issuance of nearly $300 million in State Revolving Fund and capital market financing for system improvements and capacity expansion. Completion dates Sewage Works – Last rate study concluded in 2016 with rates effective through 2020. The latest financing was completed in April 2023. Water Utility – Last rate case concluded March 2022 approving phased-in rates through April 2026 Staff involvement Doug Baldessari – Engagement lead 21 RELATED EXPERIENCE COLUMBUS CITY UTILITIES Contact information Columbus City Utilities Roger Kelso, Director +1 (812) 418 6409 | rkelso@columbusutilities.org Project description Recent projects include water and sewer cost-of-service studies and debt issuance to support utility capital needs. BTMA is currently assisting with asset management plans for both water and sewer. Completion dates Water utility regulated cost-of-service rate case and financing – March 2020 to August 2022 Sewer utility cost-of-service and financing – March 2021 to November 2022 Staff involvement Doug Baldessari – Engagement lead CITIZEN ENERGY GROUP Contact information Debi Bardhan-Akala, Director Regulatory Affairs 317-927-4591 | dbardhan-akala@citizensenergygroup.com Project description Natural Gas Utility – regulated rate case before the Indiana Utility Regulatory Commission for approval of increased rates and charges. BTMA prepared a rate base valuation report and a cost-of-service study to determine revised rates and charges, filed direct and rebuttal testimony, and participated in discovery and settlement discussions. Steam Utility – regulated rate case before the Indiana Utility Regulatory Commission for approval of increased rates and charges. Steam Utility – BTMA prepared a cost-of-service study to determine revised rates and charges, filed direct testimony and participated in discovery and settlement discussions. Completion dates Gas Utility Rate Case – December 2021 to April 2023 Steam Utility Rate Case – August 2022 to Regulatory approval expected next month Staff involvement Scott Miller – Engagement lead PROVIDING VALUABLE PERSPECTIVES FROM CURRENT CLIENTS At Baker Tilly, relationships matter. Our team has a record of successfully enhancing and protecting similar clients’ mission — resulting in experience-based insights for the City. 22 RELATED EXPERIENCE About the firm: Baker Tilly at a glance We dedicate ourselves to delivering efficiency, quality, creativity, innovation and forward-thinking solutions. We are passionate about enhancing and protecting our clients' value, which is a collective effort by everyone across our firm. the City will receive an exceptional experience for your board of commissioners and — ultimately — those you serve. Below are some key facts about our firm. COMPREHENSIVE EXPERIENCE TO SERVE YOU The City will receive support and guidance from a respected firm that continues to grow — as evidenced by INSIDE Public Accounting naming Baker Tilly as the 10th largest accounting firm in the United States on their 2022 IPA Top 100 list. Celebrating more than 90 years serving our valued clients As a future-looking firm, we celebrate more than 90 years in the marketplace by honoring our roots and continuing to shape our future. We embrace the fact that business can’t stand still — and we won’t stand still. As we help our clients identify new needs and opportunities, we innovate and change to work better. As a firm, we practice our shared passion for enhancing and protecting our clients’ value. As we reimagine our lasting impact, we remain grounded in our timeless core values. Through dedication, creativity and adaptability, Baker Tilly makes a lasting connection to our clients, our people, our communities and our profession. Public sector specialization Baker Tilly has served local governments since our establishment 91 years ago. We are one of the few professional services firms with a state and local government practice dedicated entirely to serving governmental clients. Unlike many of our contemporaries, Baker Tilly is organized by industry, not service line. What does this mean for the City? It means you will be served by a carefully selected team that blends our government-focused professionals with experienced specialists in operational finance projects. The City will be working with knowledgeable professionals who understand the specific challenges you face and provide innovative solutions to help you overcome them. 23 RELATED EXPERIENCE State and local government is a complex, unique environment shaped by fiscal, regulatory and operational considerations not found in other industries. Recognizing this complexity, and eager to be a valued service provider to the public sector, Baker Tilly formalized its dedicated public sector specialization more than 60 years ago. More than 350 Baker Tilly professionals — including over 40 partners and principals — focus directly on serving state and local governments, providing hundreds of thousands of client service hours annually to the public sector. Nationwide, our practice serves nearly 4,000 state and local government entities, including cities, counties, municipalities, school districts, public utilities and transit organizations. Your team is ready to help you find solutions to the obstacles that stand between you and your goals. Municipal advisory services Baker Tilly Municipal Advisors, LLC (BTMA) brings more than 65 years of experience in solid financial consulting and planning for public sector organizations, not-for-profit corporations and special districts and has resulted in completed projects and improved management and operations for utilities, municipalities, counties, school districts, libraries and other governmental units. We realize that our success is a result of the personal attention, integrity and high quality of service we provide to each client. At any time, we represent several hundred public sector clients. The financial advice and solutions we provide reflect our broad range of experience with similar projects. User fees Bond issuance Wholesale rate negotiations Investments* Public Finance Accounting services Financial management services Housing and economic development Refunding Attestation services Referendum assistance/surveys Arbitrage/rebate regulatory compliance Asset management * Services provided by Baker Tilly Investment Services, as a division of Baker Tilly Wealth Management, LLC, a registered investment adviser and wholly-owned subsidiary of Baker Tilly. 24 RELATED EXPERIENCE Industry and service specialization Baker Tilly’s public sector practice focuses exclusively on providing services to public sector organizations, including municipal utilities. This industry specialization approach allows us to provide specialized training and continuing education to our staff, assuring you of a team with the necessary knowledge and skills you desire. Benefits to the City include: BENEFITS OF USING BAKER TILLY Local governmental regulations, practices and technology are rapidly changing; we closely monitor proposed changes in laws, regulations and practices. We keep you abreast of the new developments and trends that may impact your operations through thought leadership, training and industry alerts with updates and answers to your financial and governmental questions. Our specialists are active in national and state organizations, participate in ongoing continuing education to obtain industry certifications, and speak and author articles on industry trends. Water and sewer utility services Baker Tilly and BTMA work with more than utility clients. We provide an array of services to these organizations, including: • Cost of service user fee and utility rate studies • Long range financial plans and models • Capital improvement planning • Customer outreach planning • Credit rating support • Debt management • Financial management • Strategic planning • Refundings • Sustainability planning Baker Tilly has developed a logical approach and process to assisting clients with utility rate studies. The data we collect to undertake a utility rate study includes historical financial data, consumption and billing data, current rates, fees and charges, anticipated capital improvements, current outstanding debt, financial policies, customer growth projections, asset management plans, master plans, previous relevant studies and other relevant data. The analytical procedures we apply can vary based on the scope of each project requested by the client. For example, some clients request cost allocations to functional cost components, some request alternative rate structures, and other services. In all cases our analytical approach is to develop long-range financial projections to determine the overall change in revenue required to provide for adequate funding for major capital improvement programs, to meet all recurring annual operating and capital expenditures, to cover all debt service requirements, to comply with any revenue bond and loan covenants, and to maintain sufficient cash balances and capital reserves for the combined utility. This approach forms the basis for determining rates to provide the needed revenues. 25 Industry involvement Our memberships in national and local industry organizations and our involvement as authors, speakers, trainers and promoters of governmental finance helps us actively assist you with the implementation of new regulations or the adoption of new standards. INDUSTRY INVOLVEMENT American Water Works Association (AWWA) Central States Water Environment Association Water Environment Federation American Public Works Association National Association of Municipal Advisors (NAMA) Government Finance Officers Association International City/County Management Association Indiana Water Environment Association We do not just belong to these organizations; we are active members who serve on boards and committees and support the organizations with our leadership and financial support. We are often called upon by local government associations to analyze proposed changes and to provide recommendations to improve these proposals and/or to identify elements within the proposed changes that impact our clients and their operations. In recent years, Baker Tilly has conducted training or developed educational programs on utility rates and financing, strategic planning, GASB pronouncements, budgeting, taxation, local income taxes (LIT), and other legislative impacts as well as various other topics where significant changes have occurred. Keeping you up to date Consistent communication is a critical component of the value we provide to our municipal clients. We will share relevant thought-leadership and other resources on issues that impact local governments and utilities to keep the City up to date. View our Compass webpage on federal, state and local funding solutions we call COMPASS which is an interactive advisor delivery model: https://www.bakertilly.com/page/baker-tilly-compass 26 Cost proposal Value means more than simply checking boxes and meeting your requirements. Value means services that lead to meaningful insights, help improve efficiencies and direct more dollars and resources to achieving the City's objectives. Provide a cost proposal to perform the scope of work to develop new water, sewer and stormwater 20-year rate models that reflect the City’s current rate strategy and City Commission fiscal and rate policy objectives. Include estimated person hours, labor costs and expenses for each task required to develop new rate models. Separate the cost of any proposed optional features in the rate models that will provide added value to the City. The format for the cost proposal is to be selected by the consultant. Include a listing of hourly rates for all employee classifications anticipated to work on rate consulting and/or financial analysis projects, as well as rates for non-labor direct expenses. Include similar information for any major subconsultants. The listed rates will be used in preparation of any future change orders. Delivering a professional fee estimate for the City We are excited about the opportunity to work with the City and have prepared the below fee estimate to meet the City’s needs and objectives. Our fees allow for thorough and insightful services and advice from experienced professionals without unnecessary add-on or startup charges. The estimated fees are shown on a per utility basis and represent the estimated cost of completing one 20-year rate model. Should the City proceed with rate model updates for all three utilities at once, the estimated fee would be $150,000 in total. BTMA will work with the City to determine a compensation structure that is fair and equitable for both parties and best suited for the City’s needs. Based on the nature of the specific project the proposed fee structure with not-to-exceed amounts are as follows: FEE BREAKDOWN FOR THE CITY Tasks Estimated hours Estimated fees per utility studied (1) Task 1 10 $2,500 Task 2 55 $15,000 Task 3 90 $25,000 Task 4 25 $7,500 Total 180 $50,000 (1) The estimated fees herein are based on rate model services for one utility. 27 COST PROPOSAL Avoiding surprises and a nickel-and-dime billing approach Routine phone calls, emails and quick consultations are included in the City’s fee estimate. We do not believe in billing for every question, comment or concern, and we encourage you to discuss any unusual transactions with us to gain efficiencies for year-end. If an issue arises, your engagement team members will work with you to determine the level of assistance required and arrange an appropriate fee at that time. We will always tell you if the assistance you need is out of scope, and we never perform additional work without approval. Providing our standard hourly rates When nonroutine matters arise outside the scope of the engagement, we will base our fees on our standard rates. When possible, we will provide an estimate in advance of the time and expense we believe necessary to achieve your objectives. Final billings are always evaluated in light of value delivered. Our standard hourly rates are located below. STANDARD HOURLY RATES Staff level Hourly rates Partners / Principals / Directors $295 to $525 Managers $235 to $340 Consultants / Analysts $160 to $235 Support / Paraprofessional $115 to $175 Interns $110 to $145 BAKER TILLY'S STANDARD HOURLY RATES We will base additional services on our standard hourly rates. We will always tell you if the assistance you need is out of scope and never perform additional work without approval. 28 Appendix: Resumes 29 APPENDIX: RESUMES PARTNER Scott A. Miller, CPA Scott A. Miller, partner in the public sector practice group has nearly 30 years of experience in the municipal advisor and utility rate industries. He has extensive experience with financial studies for municipally owned water, electric, gas, steam and sewage utilities, not-for-profit and investor owned water and sewer corporations, regional water and sewer districts and conservancy districts. These studies often involve determining utility revenue and rate requirements, cost-of-service studies, rate design and the financial planning associated with the acquisition of capital. Specific experience • Analyzes revenue requirements and performs cost of service studies and rate design for water, wastewater, electric, gas and steam utilities • Serves as an expert witness before regulatory bodies in utility rate proceedings • Provides assistance with bond and note financings through the capital market, State Revolving Fund, USDA Rural Development and other sources • Provides financial reporting, strategic planning and rate management for utilities • Provides asset management planning for utilities • Prepares system development and capacity fee studies • Assists with wholesale rate development and intergovernmental contract negotiations • Provides valuation services related to utility rate base • Advises on acquisitions, dispositions, mergers, privatization and re- municipalization of utilities • Authors various articles related to the utility industry • Environmental, social and governance specialist Industry involvement • American Institute of Certified Public Accountants (AICPA) • Indiana CPA Society (INCPAS) • American Water Works Association (AWWA) • Chair, Water Utility Council / Indiana Section AWWA • Accelerate Indiana Municipalities (AIM) Baker Tilly Municipal Advisors, LLC 8365 Keystone Crossing Suite 300 Indianapolis, IN 46240 United States T: +1 (317) 465 1506 scott.miller@bakertilly.com bakertilly.com Education Bachelor of Science in accounting Kelley School of Business Indiana University – Bloomington Registered Municipal Advisor and Municipal Advisor Principal with the Securities and Exchange Commission (Series 50 and Series 54) Certified Public Accountant (CPA) State of Indiana 30 APPENDIX: RESUMES PARTNER Scott A. Miller, CPA Page 2 Industry involvement, continued • Indiana Water Environment Association (IWEA) • Indiana Rural Water Association (IRWA) • Alliance of Indiana Rural Water (AIRW) • Former member AIRW Advisory Council Thought leadership, continued • “Why ESG and Why Now”, Baker Tilly Webinar, 2023 (co-author) • “ESG: What you Need to Know Now and How to Think Beyond Tomorrow,” Baker Tilly Symposium, 2022 (co-author) • “Environmental, Social, and Governance (ESG), New Tax Incentives and What Your Municipality Needs to Know, AIM, 2022 (co-author) • “Preparing for Infrastructure Funding,” NARUC Staff Subcommittee on Accounting and Finance, 2022 • “Environmental, Social and Governance (ESG),” Baker Tilly Utility University, 2022 • “ESG – What’s Coming and How to be Ready,” Illinois GFOA, 2022 (co-author) • “Funding Infrastructure,” International Making Cities Livable, 2021 (panelist) • “Growing with the Auto Industry,” AWWA, 2020 (co-author) • “Public Works and Utilities,” AIM 2020 (co-author) • “Maximize Your Financial Advisor Relationship,” Baker Tilly Utility University, 2019 (co-author) • “Leveraging Your Municipal Utility for Community Benefit,” AWWA, IWEA and AIM, 2019 (co-author) • “Municipal Storm Water Funding -an Overview,” State of Indiana Storm Water Management Task Force, 2019 • “Legislative Updates: What Utilities Need to Know,” IRWA, 2019 (co-author) • “Water Conservation and Lost Water and Their Impact on Utility Revenues,” AWWA, 2019 • “Utilities and P3s – How to Attract Capital and Manage a Strong Program,” AWWA, 2018 (co-author) • “Succession Planning for Indiana Utilities,” AWWA, IRWA and IWEA, 2017 • “Revenue Bond Financing,” Indiana Public Finance Leadership Summit, 2017 • “Utilities and P3s – How to Attract Capital and Manage a Strong Program,” AIM, 2017 (co-author) • “ARRA Build America Bonds – Time to Refinance? and Use of TIF’s,” ACEC, 2016 • “Utility Rate Comparisons and Current Trends in Project Financing,” AWWA, 2015 • “National Infrastructure Bank – A New Line of Credit?” AWWA, 2014 • “Encouraging Water Conservation through Effective Pricing,” AWWA and AIRW, 2012 • “Connect Four: Economic Development Strategies for Lining Up Municipalities, Water, Energy & Money,” AIM, 2011 • “Waterworks Rate Setting/Project Funding,” AWWA, 2011 (co-author) 31 APPENDIX: RESUMES PARTNER Scott A. Miller, CPA Page 3 Thought leadership, continued • “System Development Charges and Capital Planning,” AIRW 2010 and IRSDA 2011 • “Ensuring Adequate Revenues to Maintain Utilities,” AIM, 2010 (co-author) • “The Benefits of Financial Planning,” AWWA, 2009 • “Growing Pains: Utility Growth Issues,” AIRW, 2008 • “Alternative Revenue Sources: Bridging A Funding Gap,” AIM, 2008 (co-author) • “Sales Tax and Other Taxability Issues – An Overview,” AIRW, 2007 (co-author) • “The Right Stuff: Municipal Utilities as a Launching Pad for Growth,” AIM, 2007 • “How do you Rate? Utility Rate Studies,” AIM, 2004 (co-author) • “Rate Review Indicators and Fee Types,” IASC, 2004 32 APPENDIX: RESUMES PARTNER Doug Baldessari, CPA Doug Baldessari has been with the firm since 2000 and is a partner with the public sector practice group. Doug has over 22 years’ experience in providing financial studies and municipal advisory services for utility projects. These projects often involve bond financing, financial analysis and determining utility revenue requirements, cost-of-service studies, asset management and financial planning associated with capital acquisition. Doug also has significant experience providing advisory services related to the American Rescue Plan (ARP), Infrastructure, Investment and Jobs Act (IIJA) and now the Inflation Reduction Act (IRA) where he serves as the public practice service lead for Baker Tilly. Specific experience • Practices financial reporting, strategic planning and utility rate management for utilities • Tax credit experience to support project development activities for renewable energy and energy transition • National speaker and author supporting the utilities industry • Provides asset management and capital project planning for utilities • Utility cost of service studies and rate design • Proficient in system development/capacity fee studies • Offers assistance in wholesale rate development and assistance with intergovernmental contract negotiations • Assists with bond financing through the open market, state revolving fund, rural development and other sources • Testifies as expert witness before regulatory agencies, courts and local public hearings on behalf of clients • Advises and assists with acquisitions, disposition, mergers and privatization and re-municipalization Industry involvement • Water Environment Federation (WEF) • WEF Finance and Administrative Subcommittee • American Water Works Association (AWWA) • Indiana Water Environment Association (IWEA) • Ohio Water Environment Association (OWEA) • Indiana Section American Water Works Association Baker Tilly Municipal Advisors, LLC 8365 Keystone Crossing Suite 300 Indianapolis, IN 46240 United States T: +1 (317) 465 1508 doug.baldessari@bakertilly.com bakertilly.com Education Master of Professional Accountancy Indiana University-Purdue University–Indianapolis Bachelor of Science in finance University of Connecticut–Storrs Registered Municipal Advisor and Municipal Advisor Principal with the Securities and Exchange Commission (Series 50 and Series 54) Certified Public Accountant (CPA) State of Indiana 33 APPENDIX: RESUMES MANAGING DIRECTOR Brad E. Elmer, CFA Brad Elmer, managing director of Baker Tilly Municipal Advisors, LLC, has 20 years of finance experience, which includes the issuance of over $5 billion of municipal bonds and notes. Drawing on both public and private experience, Brad advises clients on the issuance of bonds and supports municipal clients with his specialized expertise in real estate and economic development. Brad is a Chartered Financial Analyst (CFA). Specific experience • Issued over $5 billion of municipal revenue, general obligation and appropriation debt used to finance capital improvement projects throughout the State of Wisconsin • Managed $14 billion of municipal debt including $1 billion of commercial paper and a $200 million derivative portfolio • Represents clients in discussions and negotiations with rating agencies, institutional bond investors and underwriters • Analyzes and presents complex financing and investment strategies • In-depth understanding of real estate development and the public and private financial tools available to finance it • National incentives advisory experience Industry involvement • Government Finance Officers Association (GFOA) • International City/County Managers Association • CFA Institute • Wisconsin Economic Development Association (WEDA) • Council of Community Development Finance Officers (CDFA) • Wisconsin Real Estate Alumni Association Baker Tilly Municipal Advisors, LLC 4807 Innovate Lane Madison, WI 53718 United States T: +1 (608) 240 6760 brad.elmer@bakertilly.com bakertilly.com Education Master of Business Administration, real estate University of Wisconsin – Madison Bachelor of Arts University of Northern Iowa (Cedar Falls, Iowa) Registered Municipal Advisor with the Securities and Exchange Commission 34 APPENDIX: RESUMES SENIOR MANAGER Steve Scharff Steve Scharff, a senior manager with Baker Tilly Municipal Advisors, LLC, has been with the firm since 2017. Steve’s experience primarily consists of serving state and local government organizations by providing nuanced capital finance solutions through comprehensive debt and capital structuring; ongoing debt management; performing security pricing analysis; proforma cashflow forecasting including Tax Increment, special district revenues, housing/project finance modeling, structuring effective underwriting/lending requests for proposals, reviewing legal documents and performing various ad-hoc reporting and analysis. Specific experience • Client service sectors include state, city, county and housing authorities, higher-education and student loan institutions • Areas of specialty include: • Relative value security pricing analysis • Proforma forecasting/complex revenue modeling (including sales tax, tax increment, assessment, special districts, etc.) • Comprehensive and Complex Debt structuring and refinancing • Ad-Hoc financial analysis • Worked as a structured finance analyst for an international banking firm where he participated in the closing and debt service performance of various asset-backed securities Industry involvement • National Federation of Municipal Analysts (NFMA), Minnesota chapter • National Association of Municipal Advisors • Montana League of Cities and Towns • Minnesota Government Finance Officers Association Awards and recognitions • Bond Buyer Rising Star 2023 award recipient Baker Tilly Municipal Advisors, LLC 30 E Seventh St Suite 3025 St. Paul, MN 55101 United States T: +1 (651) 223 3003 steve.scharff@bakertilly.com bakertilly.com Education Master of Business Administration in security analysis and portfolio management University of Minnesota – Carlson School of Management Bachelor of Science in finance Quincy University Series 65 Uniform Investment Advisor certification Securities and Exchange Commission (SEC) registered municipal advisor 35 Attachment A: Nondiscrimination and equal pay affirmation 36 ATTACHMENT A: NONDISCRIMINATION AND EQUAL PAY AFFIRMATION Attachment A: Nondiscrimination and equal pay affirmation