Explanation
This legislation authorizes the Director of Public Utilities to enter into a planned modification (Mod#1) for professional services with Utility Revenue Management Company, Inc. (URM) in the amount of $800,000.00 for continuation of billing system and meter audit services for the Division of Water, Division of Sewerage and Drainage, and Division of Power.
The scope of work for this modification will provide for ongoing billing system and metering audit services for the Division of Water, the Division of Sewerage and Drainage, and the Division of Power, in addition to other tasks outlined in the original scope of services. The consultant will continue evaluating the Department’s billing records and metering operations to identify billing issues and meter system field conditions that need corrected. The consultant will continue to 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 so far have been presented to the Department on a regular basis; the department has reviewed and validated the findings. To date findings from the audit have discovered meter off situations, meter malfunctions, incorrect service types recorded, no sewer being billed, and meter by-passes open. 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 Company, 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.
The modification also adds language to the contract clarifying how Utility Revenue Management Company, Inc. (URM) will be paid from back bill revenue received by the Department. This language was not clarified in the original contract. The modified language will specify that for all bac...
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