Title
Consider and take action on a resolution authorizing a three-year agreement with ISI Water Company, Inc., dba Water Company of America, for Utility System Audit Services (Director of Finance)
Background
Approval of this item will authorize the City Manager to execute a three-year agreement with ISI Water Company, Inc. (doing business as Water Company of America) to conduct a comprehensive Utility System Audit.
The audit will include a review of the City’s utility billing system to identify potential deficiencies, unbilled services, metering issues, and possible instances of service theft. The objective is to ensure billing accuracy and enhance revenue recovery.
Compensation for the contractor will be performance-based and contingent upon the successful identification and recovery of unbilled or underbilled services. Accordingly, project costs will be offset by the additional revenue generated as a result of the audit findings. The contractor will receive fifty percent (50%) of all increased revenue for a period of forty-eight (48) months following the recovery. This compensation structure aligns with industry standards, reflecting the financial risk assumed by the contractor should no additional revenue be realized.
A Request for Proposals (RFP 25-031) was issued on July 8, and two proposals were received. After evaluation, ISI Water Company, Inc. was determined to provide the best overall value to the City based on qualifications, methodology, and cost structure.
Attachments:
1. Proposed Resolution
2. ISI Water Company Inc. Proposal
3. City RFP 25-031 - Utility System Audit
4. RFP 25-031 Evaluation
FUNDING
{X} If approved, a budget amendment will be required to increase Utility Billing Contractual Services expense account #10207100-53490 which will be offset with an increase in Utility Fund Water Services revenue accounts#1020-43001:43016, dependent on the amount of revenue recovered.
STRATEGIC PLANNING
{X} Addresses Strategic Planning Critical S...
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