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79241 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 RESOLUTION NO. 7,924 98 A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT FOR AN ELECTRIC AND TELEPHONE BILLING STUDY WITH TRI STEM, INC. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF LITTLE ROCK, ARKANSAS: SECTION 1. The City Manager is hereby authorized to enter into a contract with Tri Stem, Inc. of Waco, Texas for an electric and telephone billing study. ADOPTED: April 5, 1988 ATTEST: — Qwt./ CITV CLERK JANE CZECH APPROVE AS TO FORM: MARK STODOLA, CITY ATTORNEY APPROVED: LOTTIE 4 -2 8 BO OF DIRECTORS COMMUNICATW -- M E M O R A N D U M Date: March 22, 1988 TO: Mayor an rd of Directors FROM: Tom on City Manager SUBJECT: Res ion Authorizing a Contract for an Electric and Telephone Billing Study RECOMMENDATION• It is recommended that a resolution be passed authorizing the City Manager to approve a contract with Tri Stem, Inc. for an electric and telephone billing study. BACKGROUND INFORMATION: For some time the Finance Department has been considering the initiation of a utility billing study for the purpose of effecting considerable savings in the payment of utility bills. In this regard they have been in contact with Tri Stem, Inc. a consulting firm from Waco, Texas which specializes in reviewing utility bills to determine if amounts billed are in accordance with rates allowed under public service authorities. This company, which has been in business nine years operating in 45 states, proposes a contractual arrangement with the City to conduct a utility billing study . Briefly, their proposal is as follows: A. All power bills paid by the City of Little Rock for the last three years and all telephone bills paid the past year will be compared to utility rates authorized. B. Any overcharges will be identified, and Tri Stem will file a refund request for the City. C. Tri Stem will be paid nothing unless a refund is due. D. Their remuneration would be 50% of any refund actually received by the City. E. Tri Stem would receive no payment of future savings resulting from reduced billings. CITY OF LITTLE ROCK, ARKANSAS OMPOF Dr Mayor and Board of Directors March 22, 1988 Page Two W = W 'ORS COMMUNICAT&N — 100 In accordance with City policy, we advertised locally for proposals to conduct a utility billing study. In addition to Tri Stem's proposal, Trans -Tec, a local consulting engineering firm, submitted a proposal to conduct an electric billing study only: Our finance director and purchasing agent contacted several cities to determine if there are other firms who conduct this type of consulting service. They found none. They also investigated the background and references of both firms and found the following: A. Tri Stem, Inc. has _conducted innumerable studies of this nature over the past nine years. Their references characterize the company as being a highly reputable firm whose performance was outstanding. The cities of Tulsa, Oklahoma and Longview, Texas reported refunds in excess of $100,000. Representatives of these cities felt the real benefit of the studies was the correction of utility rates that will save their cities sizeable amounts of utility costs in the future. B. Trans -Tec is a local firm organized approximately two years ago. Proposed charges for their services would be $40 per hour, however, their payment would not be contingent upon a refund. In checking Trans -Tee's references staff found: (a) they are an electrical engineering consulting firm, (b) the company has not conducted this type of utility billing study for any city, (c) one member of the firm worked for AP &L as an engineer for four years. Given the extensive experience of Tri Stem compared to Trans -Tec, staff recommends a contract be awarded to Tri Stem, Inc. Representatives of both firms have been invited to the agenda meeting. If additional information is needed in advance, please contact my office. CITY OF LITTLE ROCK, ARKANSAS