OLD BUSINESS  3.

COMMITTEE MEMORANDUM

HISTORY:

At the March 31, 2017 Finance and Citywide Projects Committee meeting, a referral from the City Commission (Item C4N) was discussed regarding the engagement of a Cost Reduction Consultant. In addition, it was discussed to repeat the revenue enhancement study of the City’s Utilities department previous performed in 2009.  Direction was given to identify other areas for cost reduction potential so that an RFQ can be issued for both the revenue enhancement and cost reduction review.

At the June 30, 2017 Finance and City Wide Committee meeting, the administration presented those areas where the city would benefit from this type of evaluation and those areas where an evaluation would not be necessary since a review has been recently performed by other parties.  The City recommended the following:

An RFQ be solicited for:

·  A revenue enhancement study of the City’s Utilities department since the last study was performed in 2009.

·  A cost reduction consultant for the other areas not covered by previous reviews as follows:

o    Credit Card Processing Services

o    Insurance Policies

o    Security Services

o     Fedex, UPS shipping

o     Elevator Services

Committee approved the issuance of the RFQ for both revenue enhancement and the utilities and cost reduction evaluations of the 5 areas discussed.  The Committee also requested that Administration come back with the scope of the RFQ for the Committee’s review.

ANALYSIS:

PROPOSED SCOPE OF SERVICES

Minimum Eligibility requirement

Consultant should have a minimum of 5 years in performing similar work.  Experience in Government agencies particularly in municipalities is preferred for the revenue enhancement study of the City’s Utilities department. This should include expertise and nationwide experience in teaming with state or local government utilities to identify and recover unread, misread, and unmetered water revenues.

Scope of work for the revenue enhancement study of the City’s Utilities department would include the following tasks:

·  Consists of, but is not limited to, identifying an analyzing the cause of revenue loss  from unread, misread and unmetered water and  sewer usage, wastewater services problems, meter related malfunctions, or lost accounts.

·  Consists of, but is not limited to, quantifying the potential revenue enhancement associated with the correction of these problems.

Scope of work for cost reduction consultant for the other areas not covered by previous reviews as listed as follows:

               o        Credit Card Processing Services

                o        Insurance Policies

                o        Security Services

               o       Fedex, UPS shipping

               o        Elevator Services

Review of City invoices paid and contracts from vendors relating to the above categories of expenditures and to determine if over billings have occurred and recover retroactive refunds from companies that have been overpaid.  Also, determine whether new contract terms beneficial to the City could be secured to lower the overall costs for the City.  The net result of this review is to reduce monthly costs paid for these services.

Fees paid to the awarding consultant would be based under a contingency-fees arrangement and the City would incur no costs since payment fees would be based upon any savings and recoveries.

CONCLUSION:

The Administration recommends that the Finance and Citywide Projects Committee approve the scope of the RFQ for both the revenue enhancement and cost reduction evaluations.