Explanation
1. BACKGROUND: This legislation authorizes the Director of Public Utilities to enter into a professional services agreement with Utility Revenue Management, Inc. in the amount of $25,000 for utility billing system audit services for the Divisions of Water, Division of Sewerage and Drainage, and Division of Power. These auditing services will ensure that rate payers for water, sewer, storm, and power services are properly and equitably billed for such services. The consultant will evaluate the Department’s billing records to identify billing issues and field conditions. It is anticipated that the selected firm will evaluate the Department’s billing database and investigate any situation which appears to be the result of improper rate coding, billing, consumption, quantification, etc. The firm’s findings will be presented to the Department on a regular basis. The Department will determine, based on both technical and non-technical considerations, whether or not recommendations of the consultant are fully implemented. Findings from the audit may reveal meter off situations, meter malfunctions, incorrect service type recorded, incorrect industrial waste surcharges, and incorrect meter data collection. Utility Revenue Management Company, Inc. will only be compensated based on validated cases of increased revenue realized to the City. Under this arrangement, Utility Revenue Management, Inc. will receive 50% of the new revenue realized and the City will receive 50%, for a period of 48 months. After 48 months the City will receive 100% of the new revenues.
2. ECONOMIC IMPACT/ADVANTAGES; COMMUNITY OUTREACH; PROJECT DEVELOPMENT; ENVIRONMENTAL FACTORS/ADVANTAGES OF PROJECT: This contract is needed to provide expertise with technical billing system audit services. The economic impact from these services will result in equitable fees, charges, and rates charged to our customers. Community outreach may be needed during the course of the audit as field investi...
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