TITLE
Recommendation to adopt Specifications No. RFP FM17-009 and award a contract to Utility Cost Management, LLC, of Fresno, CA, to perform an electric utility billing audit, for a period of two years, with the option to renew for two additional one-year periods, and authorize City Manager, or designee, to execute all documents necessary to enter the contract, including any necessary amendments. (Citywide)
DISCUSSION
City Council approval is requested to enter into a contract with Utility Cost Management, LLC (UCM), to perform an electric utility billing audit.
As part of UCM’s proposed agreement with the City, UCM will conduct a “Bill Analysis” service wherein the City’s electric utility accounts will be reviewed to identify billing errors, obtain refunds, find ongoing savings opportunities on the City’s electric accounts, and make recommendations to the City. UCM’s analysis includes, but is not limited to, the investigation of billing calculations, inapplicable rate schedules, proper metering of services, optional rates, applicability of taxes and surcharges, and the applicability of all rules and regulations.
UCM’s compensation will be based only on actual refunds and/or cost savings as a result of the audit and the newly assigned rates identified by UCM and implemented by the utility company. UCM’s fee is calculated at 33 percent of the identified refunds or credits realized by the City, and 33 percent of future savings that accrue during a two-year period; therefore, the City will only incur a fee if cost savings are made. There are no out-of-pocket costs to the City for these services.
The Request for Proposals (RFP) was advertised in the Long Beach Press-Telegram on November 6, 2016, and 4,555 potential proposers specializing in utility billing services were notified of the RFP opportunity. Of those proposers, 27 downloaded the proposal via the City’s electronic bid system. The RFP document was made available from the Purchasing Division, lo...
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