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Home My WebLink About02-286 Resolution No. 02-286 RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT WITH TROY & BANKS FOR AN AUDIT OF THE CITY' S UTILITY SERVICES BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Olufemi Folarin, Interim City Manager, be and is hereby authorized and directed to execute an agreement on behalf of the City of Elgin with Troy & Banks for an audit of the city' s utility services, a copy of which is attached hereto and made a part hereof by reference . s/ Ed Schock Ed Schock, Mayor Presented: August 14 , 2002 Adopted: August 14 , 2002 Omnibus Vote : Yeas : 7 Nays : 0 Attest : s/ Dolonna Mecum Dolonna Mecum, City Clerk TROY & BANKS Utility and Telecommunication Consultants Agreement Corporate Offices: BUFFALO-NEW YORK This Agreement is entered into as of 8/20/02 between Troy & Banks, Inc. ("TB"), a New Snyder Professional Ctr. Suite 102 4536 Main Street York State Corporation whose offices are headquartered at Snyder Professional Center, Buffalo,NY 14226 [BOO)499-8599 (716)839-4402 4536 Main Street, Suite 102, Buffalo, NY 14226, and the City of Elgin Telefax(716)839-4452 with an address at 150 Dexter Court , Elgin, IL 60120 (the"Client"). Branch Offices: CALIFORNIA 1143 M Street In consideration of the mutual agreements hereafter set forth, TB and Client agree as follows: Fresno,CA 93654 1. The Client engages TB to conduct an audit or survey of Client's gas, electric, FLORIDA telecommunications and water utility ("Utility") service accounts for the purpose of securing 34912 Teeview Lane refunds, credits and cost reductions resulting from discovery of charges or costs in excess of Tampa,FL 33541 those permitted or allowed by applicable contracts, tariffs, statutes, rules and regulations and/or from overcharges or billing errors. TB agrees to conduct such audit and shall GEORGIA commence its audit as provided herein immediately upon execution of this agreement. TB PD.Box 923474 shall complete the audit one calendar year from the date the agreement is executed and Norcross,GA 30010 signed above. A written report shall be completed and submitted to the Client thereon within 30 days of completion of the audit. NEW YORK 62 Matlock Road An extension may be granted for completion of the audit upon a written request submitted by Rochester,NY 14428 TB to the Client and agreed upon by both parties. 4764 Summerhurst Drive Liverpool,NY 13088 2. Overcharges — For any refunds, credits or rebates obtained by TB for prior overcharges, billing errors or costs in excess of those permitted by applicable contracts, tariffs, statutes, NORTH CAROLINA rules or regulations, TB shall be paid thirty-five (35%) of all monies refunded or credited to 12260 Greenway Circle the Client. The Client shall pay TB such thirty-five percent (35%) of monies refunded, Laurinburg,NC 28352 credited or rebated to the Client within 30 days after the Client receives such refunds, credits or rebates. TENNESSEE 904 Lake Haven Road 3. Future Cost Reductions - For any reductions in future costs for electric, gas, Knoxville,TN 37922 telecommunication and water services resulting from TB analysis, the fee is thirty-five percent (35%) of the amount saved each month for 12 months. TB will document actual monthly e-mail: savings obtained by analysis of tariff cost applications and will submit this documentation save@troybanks.com along with an invoice for payment. The Client agrees to pay TB within 30 days of receipt of Internet address: any invoice. www.troyba nks.corn 4. TB has made and makes no guarantee or assurance of any credit or refund amount or cost saving results. 5. If Client does not receive refunds, credits, or reductions in future billings, there will be no fee for TB services. 6. This agreement shall be subject to and governed by the laws of the State of Illinois. Venue for the enforcement of any rights or the resolution of any disputes shall be in the Circuit Court of Kane County, Illinois. 7. This Agreement sets forth the entire understanding and agreement between the parties. [Client Name] City of Elgin Troy&Banks, Inc. (--r, By: \ ` By: • Thomas T. Ranallo, President _ Name: 0 - -r in Date: Title: Interim City Manager Telephone: 847-931-5636 Telefax: 847-931-5622 KT • `�,�OF ESC/ `' /- City of Elgin Agenda Item No. E L 00 July 19, 2002 G �� 0 NL TO: Mayor and Members of the City Council �e 0 t FINANCIALLY STABLE CITYGOVERNMEN7 EFFICIENT SERVICES, FROM: Olufemi Folarin, Interim City Manager AND OL LITY INFRASTRUCTURE SUBJECT: RFP 02-070 - Audit of the City' s Utility Services PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information to award a contract for professional services to conduct an audit of the City' s utility services. BACKGROUND The City' s Budget Team instituted a number of initiatives to be implemented in 2002 . One of the initiatives was telephone use. Currently, the consolidation of cell phone providers is being reviewed. Earlier this year, the long distance provider was changed for a reduction in long distance service costs. As a result of the original initiatives, it was determined an audit of the fees charged by SBC/Ameritech may produce additional savings. An audit could reveal services that are not billed at the contracted rates, duplicate charges, billing for cancelled or unused services . Since the rates for the gas and electric utilities are tariffed and possible billing discrepancies may exist, the gas and electric services were included as a part of the requests for proposals for the utility audit . The utility audit would be risk free to the City. The charges for the utility audit are a percentage of any savings generated by the audit . If there are no savings, there is no fee. Also, the time commitment of the City' s staff is minimal . The utility auditors receive most of the necessary information directly from the utility company. Communities comparable in size to Elgin have averaged $25, 000 in savings . However, at this point, depending upon the variables, the savings are unknown. Four proposals were received for the audit of City utilities (see tab sheet) . Two proposals were for telephone audits, one proposal for an electric audit and one proposal included telephone, electric and gas audits . r Audit of the City' s Utility Services July 19, 2002 Page 2 Troy & Banks, Utility and Telecommunication Consultants, met the specifications of the request for proposal and submitted the lowest cost proposal . Troy & Banks has performed utility audits for municipal and governmental clients nationwide (i .e . , Albany, NY, Amtrak, Buffalo, NY and the United States Postal Service) . COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None. MA_FINANCIAL IMPACT The utility audit fees will have no impact on the current budget . Fees are paid as a percentage of any identified savings on each of the City' s utility bills . The identified savings will reduce future cost for the City' s utility budgets. LEGAL IMPACT A,171/ Contract is being reviewed by the Legal Department . ALTERNATIVES rilk 1 . Approve a contract for a utilities audit and produce future cost savings . 2 . Continue to pay the utility bills as currently billed. RECOMMENDATION It is recommended that the City Council approve a contract with Troy & Banks to conduct an audit of the City' s utilities for 35 percent of all monies refunded or credited to the City. Respectfully submitted, XY/ i,m,:( 7-1(41‘,A/Cle-5 Olufe i Folarin Interim City Manager MG/km Attachment r ""I '-'11 ''''l . TELECOMMUNICATIONS & UTILITY AUDIT TABULATION OF BIDS CITY OF ELGIN Glenview Utility Bill Auditors Inc Tel Adjust Inc Thomas R Cervelli Troy&Banks 417 Cherry Creek Lane 29000 Inkster Rd &Associates 4536 Main St Invitation No: RFP#02-070 Suite 250 Ste. 115 906 Lacey Avenue Ste 111 Suite 102 Date of Opening: June 12,2002 Prospect Heights IL 60070 Southfield MI 48034 Lisle IL 60532 Buffalo NY 14226 Department: Finance Item #1 Description 1 AMOUNT 1 AMOUNT 1 AMOUNT I AMOUNT 1 Percentage of savings for Commonwealth Edison-electric bill: 50% N/A N/A 35% 2 Percentage of savings for NiCor-gas bill: N/A N/A N/A 35% 3 Percentage of savings SBC/Ameritech- N/A local telephone service: 50% 35% 0-$50,000 50% $50,000-$250,000 40% Over$250,000 35%