02-286 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
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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
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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%