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FIAANCE 4111111h,
This Financial Advisory Agreement (the "Agreement") is entered into as of 1 �.� , 2Q24
between the City of Tybee Island, Georgia (the "City") and Davenport & Company LLC ("Davenport").
This agreement is specific to Financial Advisory Services related to an analysis of the City's Water &
Sewer Enterprise Fund (the Analysis").
In accordance with Rule G-23 of the Municipal Securities Rulemaking Board, Davenport is required
to have a written agreement with the City disclosing the financial advisory services it will provide
and the basis of its compensation.
In connection with the Analysis, Davenport will perform the following services:
1. Review the City's historical operating trends and how the City performed on various key
financial utility metrics including:
a. Debt Service Coverage; and,
b. Fund Balance Levels (Le. Days Cash on Hand).
2. Create a Financial Model / Multi -Year Pro -Forma of the City's Water & Sewer Enterprise Fund
including:
a. Operating Revenue and Expenditures;
b. Capital Expenditures; and,
c. Outstanding Debt.
3. Utilize the Financial Model to analyze the City's Water & Sewer Enterprise Fund's financial
health and ensure the system is self-supporting while also funding the capital needs which
would include:
a. Considering Multi -Year Rate increases; and,
b. Changes to the Rate Structures.
i. Residential vs. Industrial/Commercial; and,
ii. Volumetric vs. fixed.
4. Evaluate the City's Capital Improvement Plan. Consider the impact of such projects
including reviewing the potential financing options available to the City.
a. GEFA
b. Revenues Bonds (Bank Loans vs. Public Market)
c. Grants
d. Other available sources
5. Present findings to staff and City Council.
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The City will cooperate in provision of information necessary to finalize the assignment in timely
manner. With the assistance of City Staff, Davenport believes that the analysis could be completed
within 60-90 days, thus allowing the City to consider the analysis and know the impact well in
advance of the Fiscal Year 2025 Budget.
Davenport will base our fee upon the actual hours served. Davenport estimates that the time to
complete the services defined above would be between 60-90 hours. Based upon an hourly rate of
$300 per hour, the fee range would be between $18,000 and $27,000. We are willing to cap our
fees and in no instance will we exceed $27,000 even if the hours surpass our initial estimate,
assuming the scope of services does not change.
Davenport will also be reimbursed for all direct out-of-pocket expenses (e.g. mileage, lodging, meals
and postage) at cost and will receive an additional fee in the amount equal to 4% of the hourly fee
amount.
This Agreement shall remain in effect until such time that it is terminated by either party. Either
party may terminate this Agreement with 30 -day written notice. If any party terminates this
Agreement as set forth above, it is understood and agreed that the only amount due to Davenport
will be for services provided and expenses incurred through the date of termination.
if this appropriately describes the deliverable for your request, please indicate by signing and
returning one copy of this Letter Agreement to my attention.
City of Tybee Island. Georgia
By/
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Title
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Date
Davenport ISc Company LLC
Douglas J. Gebhardt
First Vice President
Title
December 20, 2023
Date
CC: Ricardo Cornejo, Vice President, Davenport & Company LLC
Christopher Holt, Associate Vice President, Davenport & Company LLC
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