TITLE
Recommendation to adopt resolution authorizing City Manager, or designee, to execute a contract, and any necessary documents including any necessary amendments, with Utility Cost Management, LLC, of Fresno, CA, to perform an electric utility billing audit, in an amount equal to 33 percent of the identified refunds or credits realized by the City of Long Beach (City), and 33 percent of any future savings that accrue during a two year period following implementation of each correction, for a period of two years, with the option to renew for one additional one-year period to complete a second round cost saving review, at the discretion of the City Manager. (Citywide)
DISCUSSION
City Council approval is requested to enter into a contract with Utility Cost Management, LLC (UCM), for electric utility billing audit services. Through this process, UCM reviews the City’s electric utility accounts 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 is based only on actual refunds and/or cost savings as a direct result of their work 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 any future savings that accrue during a two-year period following implementation of each correction; therefore, the City only incurs a fee if cost savings are realized.
On October 10, 2017, the City Council adopted a Request for Proposals (RFP) FM17-009 for performing an electric utility billing audit, and awarded a contract to UCM for a period of two years, with the opt...
Click here for full text