The Independent Consultant’s Report prepared for the City had to be based on information not within the control of the consultants. In conducting our studies, we considered such books, records, documents, and projections that were provided to be reliable; however, we were not in a position to verify the accuracy of these documents or the validity of the information provided by others. Thus, our report would be subject to these limitations. Due to the timing of the planned bond issuance, we were constrained by eight weeks to complete our review and submit the final report.

The evaluation of the natural gas utility system included discussions with key management personnel regarding the organization, management structure, and staffing; system service area; supply facilities; distribution facilities; and the utility’s Capital Improvement Plan (CIP). We conducted physical inspections of above-ground facilities and visited customer service offices, town border stations, C&I metering facilities, and active construction sites. The review also covered: (a) financial feasibility information, (b) Revenue requirement and O&M expense projections; (c) CIP financing plans; (d) an assessment of the utility’s ability to satisfy the bond; and (f) potential liquefied natural gas expansion opportunities.

The final report was issued April 24^, 2020. Our overall finding was that the utility was a competently managed and operated gas distribution utility. The System was organized, operated, and maintained at a level equal to, or in excess of, regulatory requirements and generally accepted industry practices. The revenues pledged as security for the Bonds issued are projected to be sufficient to comply with the rate covenant of the General Bond Ordinance. Due to the timing of our review and report however, it did not take into consideration the impact, if any, that the COVID-19 pandemic might have in the projections and assumptions contained therein.