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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