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O. W. Krohn & Associates was retained by the Indianapolis BOW in 2004 to assist with the then proposed acquisition of Boone County Utilities, Inc. Services included assessment of historical financial reports, business valuation services, assistance with the negotiation of potential acquisition terms including analysis of variables within the potential acquisition terms, litigation support services including preparation of testimony and exhibits for consideration by the IURC and the Bankruptcy Court in those related proceedings. O. W. Krohn & Associates worked closely with the City’s legal team, BOW Officials and Boone County’s consultants and attorneys. Indianapolis BOW’s came to agreement with Boone County Officials as to an appropriate valuation in which to base their joint proposal for acquisition without putting their respective stakeholders (customers) at risk. As a part of the valuation and financial feasibility analysis, cost of service techniques were employed in order to assess potential restructuring of the existing utility rates and charges.
Contact: Rob Erney, Financial Manager, Department of Waterworks Indianapolis. City County Building 200 E. Washington Street Suite 2222, Indianapolis IN 46204 (317) 327-4296
This engagement was conducted in 2003 and involved a variety of utility rate and cost of service issues. O. W. Krohn & Associates was selected as the consultant to conduct a “zero-based review” of how utility services are being handled at the IAA campus in conjunction with the proposed $900 million Midfield Terminal Project. This analysis included studies of electric, water, wastewater and gas utility services and considered IAA operations versus IAA tenant operations, including the Indianapolis Maintenance Facility (formerly United Airlines). The IAA wanted to evaluate the manner in which utility services are currently being provided and to identify and consider all of its options, including utility ownership, sales for resale, and utility supply agreements. While all four utility services were evaluated, the focus of attention became the electric supply and demand options. This analysis incorporated cost of service techniques and studies related to co-generation, peaking power and sub-station ownership issues.
Contacts: Mr. John Kish, Director of Midfield Terminal Project, Indianapolis Airport Authority, Indianapolis Airport Terminal, Suite 418, Indianapolis, IN 46251 (317) 487-5265 - Mr. Ken Koziol, Project Manager, Aviation Capital Management, 2349 Aviation Dr. Indianapolis, IN 46241 (317) 487-8552 - Mr. Kerry Vincent, General Manager of Indiana Municipal Power Agency (IMPA) Service Corp., 11610 N. College Avenue, Carmel, IN 46032 - Mr. Michael Cracraft, Hackman Hulett & Cracraft, One Indiana Square, Suite 2400, Indianapolis, IN 46204 (317) 636-5401.
O. W. Krohn & Associates became a part of the Indianapolis Clean Stream Team (CST) in 2005 and played an integral role in the financial aspects of the City’s recent Consent Decree (CD) and Long-Term Control Plan (LTCP) with the U.S.E.P.A. Services included analysis of historical financial results, including detailed analysis of operating revenues for large users, industrial users, wholesale users and all other user classes in order to determine appropriate billing determinants for use in amending the previous wastewater utility rates and charges. As a part of the overall financial modeling requirements, O. W. Krohn & Associates ran multiple variations of proposed capital improvement projects, project sequencing, project financing terms and projected costs of operation & maintenance. Cost of service based changes to the overall utility rate structure were identified and analyzed from the standpoint of the determining the potential shift in the proportion of revenues coming from the various customer classes, and customers within each class. O. W. Krohn & Associates prepared alternative rate adjustment projections based upon various techniques in allocating costs associated with the CD and LTCP to the various classes of users; and, determined the projected “Residential Indicator” for the Financial Capability Assessment (FCA) – a key component in negotiating an upper limit to the financial impact of the LTCP and CD. As a part of the FCA negotiations with the USEPA, O. W. Krohn & Associates played a key role in providing the financial justification for the City’s Residential Indicator, as well as preparing graphics, drafting and editing of technical information articulated within the FCA. O. W. Krohn & Associates also assisted the Sanitary District with the issuance of more than $350 M of revenue bonds for both Sewage Works and Stormwater capital projects.
Contacts: Mark Jacobs, CST Program Director (317) 989-2801
O. W. Krohn & Associates has provided financial advisory services for the Fall Creek Place TIF District since 2003, and has worked with TIF Districts throughout Indiana since 1990. This experience is mentioned in this RFQ as to the potential applicability of a possible option for the Town whereby redevelopment or economic development projects which would otherwise create a financial burden for the Town. Understanding the principles of TIF, as well as being able to identify appropriate projects where TIF presents a viable option, may be an important attribute for the Town’s financial advisor.
O. W. Krohn & Associates has become a regular choice for the State Budget Agency to perform due diligence analysis and review of prospective SRF applicants. As a firm that provides financial advisory services to a number of SRF applicants each year, SRF Officials have requested our firm to review other SRF applicant submittals. Regardless of whether we work with the SRF or the SRF applicant, we understand the process for issuing municipal bonds. We have worked with the Indianapolis Bond Bank and the Indiana Bond Bank, as well as funding opportunities through the USDA Rural Development and the Indiana Office of Community and Rural Affairs (OCRA).
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