HomeMy Public PortalAbout13-8539 American Utility Bill Auditors Sponsored by: City Manager
Resolution No. 13-8539
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
OPA-LOCKA,AUTHORIZING THE CITY MANAGER TO ENTER
INTO A CONTRACT WITH AMERICAN UTILITY BILL AUDITORS
(AUBA), TO PIGGYBACK ON AN EXISTING CONTRACT
BETWEEN THE CITY OF NORTH MIAMI BEACH AND
AMERICAN UTILITY BILL AUDITORS, ON A CONTINGENCY
FEE BASIS, FOR AUDITOR'S SERVICES, PAYABLE FROM
ACCOUNT NUMBER 19-519340; PROVIDING FOR
INCORPORATION OF RECITALS; PROVIDING FOR AN
EFFECTIVE DATE.
WHEREAS, American Utility Bill Auditors (AUBA) will review the City's
Franchise and Utility Fee Agreements, as well as the utility bills and customer service
records, in order to achieve utility credits, refunds and future savings for the City of
Opa-locka; and
WHEREAS, the City will pay AUBA a 45% contingency fee for the recovered
refunds; and
WHEREAS, AUBA will participate in future savings for 18 months,beginning with
the date the first refund(savings) appears on client's bill; if there are no refunds within the
18 month period, then no payments are made to AUBA; and
WHEREAS, the City desires to piggyback on an existing agreement between the
City of North Miami Beach to procure the services of American Utility Bill Auditors.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE CITY COMMISSION
OF THE CITY OF OPA-LOCKA, FLORIDA:
Section 1. The recitals to the preamble herein are incorporated by reference.
Resolution No. 13-8539
Section 2. The City Commission of the City of Opa-locka hereby authorizes the City
Manager to piggyback on an existing contract between the City of North Miami Beach and
American Utility Bill Auditors,to negotiate an agreement between the City of Opa-locka and
American Utility Bill Auditors for auditor services, payable from Account 19-519340;
Session 3. This resolution shall take effect immediately upon adoption.
PASSED AND ADOPTED this 13th day of February, 2013.
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YRA AYLOR
MAYOR
Attest to:
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J p nna Flores
ty Clerk
Approved a to form and lega ciency:
liak t '
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J. ri.,-41. eller
ensp'0 on Marder, P.A.
Si r Attorney
Moved by: VICE MAYOR KELLEY
Seconded by: COMMISSIONER JOHNSON
Commission Vote: 5-0
Commissioner Holmes: YES
Commissioner Johnson: YES
Commissioner Santiago: YES
Vice-Mayor Kelley: YES
Mayor Taylor: YES
,43/
09
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V A
A"ORAT E.
City of Opa-Locka
Agenda Cover Memo
Commission Meeting 02/13/2013 Item Type: Resolution Ordinance Other _
Date: X
(EnterX in box)
Fiscal Impact: Ordinance Reading: 1st Reading 2nd Reading
(EnterX in box) Yes No (EnterX in box)
Public Hearing: Yes No Yes No
(EnterX in box) X
Funding Source: (Enter Fund&Dept) Advertising Requirement: Yes No
(Enter Acct No.) 19-519340 (EnterXin box) X
Contract/P.O.Required: Yes No RFP/RFQ/Bid#:
(EnterXin box) X N/A
Strategic Plan Related Yes No Strategic Plan Priority Area: Strategic Plan Obj./Strategy: (list the
(Enter X in box) specific objective/strategy this item will address)
Enhance Organizational 0
Bus.&Economic Dev 0
Public Safety 0
Quality of Education ]
Qual.of Life&City Image ]
Communcation I]
Sponsor Name City Manager Department: City Manager
Short Title:
A RESOLUTION OF THE CITY OF OPA-LOCKA, FLORIDA AUTHORIZING THE CITY MANAGER TO ENER INTO A
CONTRACT WITH AMERICAN UTILITY BILL AUDITORS ON A CONTINGENCY FEE BASIS, PAYABLE FROM ACCOUNT
NUMBER 19-519340.
Staff Summary:
American Utility Bill Auditors (AUBA) reviews the utility bills and customer service records for billing errors and
overcharges. AUBA will also review the City's Franchise and Utility Fee agreements to determine if any
underpayments exist. The City will piggy-back on the agreement with the City of North Miami Beach.
Proposed Action:
Staff recommends approval.
Attachment:
City of North Miami Beach agreement.
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Memorandum
TO: Mayor Myra L. Taylor
Vice-Mayor Joseph L. Kelley
Commissioner Timothy Holmes
Commissioner Dordthy Johnson
Commissioner Luis B. Santiago
FROM: Kelvin Baker, Sr. , City Manage ..-------
DATE: January 24,2013
I
RE: Resolution: American Utility Bill Auditors
Request: A RESOLUTION OF THE CITY OF OPA-LOCKA, FLORIDA AUTHORIZING
THE CITY MANAGER TO ENER INTO A CONTRACT WITH AMERICAN
UTILITY BILL AUDITORS ON A CONTINGENCY FEE BASIS, PAYABLE
FROM ACCOUNT NUMBER 19-519340.
Description: American Utility Bill Auditors (AUBA) reviews the utility bills and customer service
records for billing errors and overcharges. AUBA will also review the City's Franchise
and Utility Fee agreements to determine if any underpayments exist. The City will
piggy-back on the agreement with the City of North Miami Beach.
Financial Impact: AUBA works on a 100%contingency fee basis with no upfront fees.
Implementation Timeline: Immediately upon approval.
Legislative History: None.
Recommendation(s): Staff recommends approval.
Analysis: AUBA will examine the City's utility records and will coordinate with the utilities to
determine the proprietary audit methods, if monthly services are being overcharged, and
if inefficient services or tariff violations may now exist, or have existed on previous
billings. AUBA will request and prepare in its discovery, all documentation deemed
appropriate to negotiate (if necessary) with the utility companies ore regulatory agencies
to have overcharges removed in the form of a refund or a credit.
The City will pay AUBA all recovered overcharges and future savings at a 45% rate. Future
savings are shared for a period of eighteen (18) months if no funds are received. If refunds are
received and the number of months refunded exceeds eighteen(18)months,then AUBA does not
participate in future sharing. For example, if only six (6) months of refunds are obtained, then
AUBA will share in only the remaining twelve (12) months of future savings. If refunds or
credits are not received by the City then no payments are made to AUBA.
Attachments: City of North Miami Beach agreement
PREPARED BY: Faye Douglas, Budget Administrator
" F� 4;�K Mrati,"
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CITY OF NORTH MIAMI BEACH
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INTER-OFFICE MEMORANDUM -1*PE PUS
PROCUREMENT MANAGEMENT DIVISION
TO: DARCEE S. SIEGEL
CITY ATTORNEY
FROM: BRIAN K. O'CONNR
CHIEF PROCUREMENT OFFICER
DATE: JUNE 9, 2009
RE: Request to Review and Approve Attached Agreement for Utility Auditing
Services with American Utility Bill Auditors, Incorporated
Attached is an agreement submitted by American Utility Bill Auditors, Inc. to provide
electricity, gas, and telephone auditing services by reviewing every rate for every item
billed to determine if it is billed in accordance with tariff regulations.
The CARE RESERVES AND REVENUES COMMITTEE entertained a presentation by
the vendor and was impressed by the breath and depth of their services. Please review
the Contract along with the Utility Monitoring Agreement (Exhibit A) and the
Authorization Form (Exhibit B) for legal form and sufficiency.
If everything is in order, please sign below and return to the Procurement Management
Division so that I may secure the City Manager's signature, the vendor's signature and
all the necessary insurance documents.
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Approved by Legal A..ror _d y ity M ager
Darcee S. Siegel K-Iv L. Baker
ti
Dareee,AUBA Agreement
CONTRACT BETWEEN THE CITY OF NORTH MAIMI BEACH
AND
AMERICAN UTILITY BILL AUDITORS, INC.
This AGREEMENT, made and entered into this day of A.D.,
2009, by and between the City of North Miami Beach, Florida, a municipal corporation of the
State of Florida, (hereinafter sometimes called the "City"), and American Utility Bill Auditors,
Inc. a Florida corporation, (hereinafter sometimes called the "Vendor").
WITNESSETH: That the parties hereto, for the consideration hereinafter set forth,
mutually agree as follows:
ARTICLE I. SCOPE OF WORK:
The Vendor shall furnish all labor, materials and equipment and perform all the work in
the manner and form provided by the Contract Documents, and as more fully described in the
Scope of Work, attached as "Exhibit 'A', for the project entitled:
Utility auditor assistance in evaluating and auditing utility bills (telephone,
electric, gas, to achieve utility bill credits, refunds and future savings
wherever possible
ARTICLE 2. THE CONTRACT SUM:
The City shall pay to the Vendor, for the faithful performance of the Contract, in lawful
money of the United States, and subject to additions and deductions and based on unit prices
(where applicable), all as provided in the Proposal and other Contract Documents, a 45%
contingency fee if and when the City receives a refund or savings on its utility bills as set forth
in attached "Exhibit 'B'.
ARTICLE 3: PARTIAL AND FINAL PAYMENTS: NOT APPLICABLE
Upon submission by the Vendor of evidence satisfactory to the City that all payrolls,
material bills and other costs incurred by the Vendor in connection with the construction of
the work have been paid in full, and also, after all guarantees that may be guarantees that may
be required in the Specifications or by the Vendor have been furnished are found acceptable by
the City, final payment on account of this Agreement shall be made within sixty (60) days after
completion by the Vendor of all work covered by this Agreement and acceptance of such work
by the City.
ARTICLE 4. CONTRACT DOCUMENTS:
All of the documents hereinafter listed from the Contract and they are as fully as part of
the Contract as if hereto attached, or repeated in this Agreement: Exhibit "A" and Exhibit
ARTICLE 5 TERMS AND CONDITIONS:
The City of North Miami Beach agrees to pay American Utility Bill Auditors, Inc (AUBA)
I, A
all recovered overcharges and future savings at a 45% rate. Future savings are shared for a
period of Eighteen (18) months if no funds are received. If refunds are received and the number
of months refunded exceeds Eighteen (18) months, then AUBA does not participate in future
sharing. However, if only six (6) months of refunds are obtained, for example, then AUBA will
share in only the remaining Twelve (I 2) months of future savings. If refunds or credits are not
received by the City then no payments are made to AU BA.
ARTICLE 6 NOTICES:
All notices or other communications required under this Agreement shall be in writing
and shall be given by hand-delivery or by registered or certified U.S. Mail, return receipt
requested, addressed to the other party at the address indicated herein or to such other
address as a party may designate by notice given as herein provided. Notice shall be deemed
given on the day on which personally delivered; or, if by mail, on the fifth day after being posted
or the date of actual receipt, whichever is earlier.
To Vendor: To the City:
Len A. Garvin, President City of North Miami Beach
American Utility Bill Auditors, Inc. Finance Director
PO Box 970145 17011 NE 19th Avenue, 3rd Floor
Boca Raton, FL 33497-0145 N. Miami Beach, FL 33162
Phone: 305-787-6000
Fax: 305-948-2996
IN WITNESS WHEREOF the parties hereto have executed this Agreement on the thy and the
first above written in three (3) counterparts, each of 'ich sh.' without proof or accounting
for the other counterparts, be deemed an original contr.ct.
. aprov- s by:
' 1 -- -- By: it.�
Brian K. O'Connor y 7-1 n Baker
Chief Procurement Officer City anager
As to compliance with Procurement
Code Date:
•
Attest: 2 ,�v,
, City k
A Ow Ni . %Cler i(-y
Attests Approved as to form
porate Secretary/Notary Public and legal sufficiency
Corporate Seal/Notary Seal
Darcee S. Siegel, City Attorney
UTILITY MONITORING AGREEMENT (EXHIBIT A)
Between
AMERICAN UTILITY BILL AUDITORS,INC. CLIENT: CITY OF NORTH MIAMI BEACH
PO Box 970145 And 17011 NE 191 Avenue
Boca Raton,Florida 33497-0145 North Miami Beach,Florida 33162
(561)852-1872 X 301(Admin)/FAX(561)477-3100 Tel: 305-947-7581
E-Mail: aubanauba.net Fax: 305-948-2996
I. The undersigned or any affiliates, hereinafter called CLIENT, have entered into an agreement in writing this date with AMERICAN UTILITY BILL
AUDITORS,INC.,hereinafter called AUBA,to serve as their utility auditing professionals for the undersigned,concerning the following UTILITY bills:
1. Telephone 2. Electric 3. Gas
AUBA makes no guarantee as to the amount of recovery and/or savings if any at all exists.
II. AUDIT PROCESS
AUBA agrees to examine CLIENT's utility accounts.AUBA will coordinate with the utilities and determine the proprietary audit methods,if monthly services are being
OVERCHARGED,and if inefficient services or tariff violations may now exist,or have existed on previous billings.AUBA will request and prepare in its discovery,all
documentation deemed appropriate to negotiate (if necessary) with the proper UTILITY COMPANY (S), TELEPHONE COMMUNICATION COMPANY (S) or
Regulatory Authorities to have OVERCHARGES removed,in the form of REFUNDS and/or CREDITS. In addition,after AUBA submits reviewed findings to CLIENT in
our written audit update report(s),by specific issues,information can be used to request REFUNDS or seek to reduce future billing(s)approved by CLIENT.
III.RECOVERED OVERCHARGES
CLIENT agrees to pay AUBA(50%)of ALL RECOVERED OVERCHARGES in the form of REFUND(S)or CREDIT(S),billed upon Clients receipt of refund check or
of Utility's invoice reflecting the credit(s). Where there is NO refund/credit or there is NO reduction in the monthly utility charges,there is NO FEE!
IV.FUTURE BILLING REDUCTION(Savings)
In the event AUBA is successful in obtaining a REDUCTION in CLIENTS BILLINGS,whether by correction of billing error(s),rate(s),tariff changes,meter changes,
inefficient mechanical and electrical systems,or any combination thereof, that shall manifest in FUTURE SAVINGS,CLIENT agrees to pay AUBA 50 percent of the
ACCUMULATIVE SAVINGS FOR THIRTY-SIX (36) months period beginning the date the savings FIRST appears on CLIENT bill. Client may prepay the entire
estimated savings at once or may pay quarterly during the contract term after the actual savings are realized.
The CLIENT is under NO obligation to carry out any recommendations.In the event the recommended changes are carried out by the CLIENT,or
AUBA with the CLIENTS prior approval,AUBA is entitled to compensation,at the rate of 50 percent of the monthly reduction(s)over the same period as above,beginning
with the first month the reduction becomes effective and realized.If CLIENT declines to carry out proposed cost savings recommendations by AUBA,then CLIENT must
do so in writing. If,within 2 years of the date of the written notice presented to AUBA,the CLIENT performs the recommended changes or a portion thereof,then the
CLIENT is subject to the AUBA compensation arrangement described above.
V.PROCESSING FEE,(IF ANY)
In conjunction with this agreement,AUBA may require a ONE TIME PROCESSING FEE of($-0-)ZERO in certain cases of complex reviews.-WHEN APPLICABLE&
AGREED UPON
VI.TERM
This agreement shall remain in effect through the completion of the following:
(A) Client agrees to respond with initial issue and follow-up issues,if any,to AUBA within(20)working days from date of audit reports.
(B) All documented and presented audit issues to CLIENT provided by AUBA have been resolved
(C) Recovery of funds or credits from the utilities have been received by the CLIENT and settled with AUBA in accordance to the above agreement.
(D) AUBA has notified CLIENT in writing that NO recoveries or credits will be made or forth coming.
(E) Access to CLIENT's utility records for at least 2 years after the completion of the above,for review of post audit tariff activity&potential savings.
(F) During the term of this agreement,should any in house review or any other business or entity conduct a similar analysis or audit,we are still entitled to the same
percentage of refunds and savings as stated above from such an analysis.**Items,if any,not to be included as part of the audit
[Please initial if no items are to be excluded from the audit.]
(G) CLIENT acknowledges by initially the above section VI(F),NO negotiations are currently underway between CLIENT and any of its utility suppliers.
VII.BASIC INFORMATION:
Client shall give its full reasonable cooperation to AUBA in completing any forms and providing information, and copies of appropriate documented
backup, in a timely manner. During the term of our utility monitoring agreement,and for a period of two(2)years thereafter,each party shall retain
confidentiality and require it's directors,officers,employees,consultants,representatives,employer's,principals and agents to retain in confidence any
and all proprietary information of the other. "Proprietary information" shall mean any information obtained from either party in the course of
performance of the Utility Monitoring Agreement. The parties agree that each party's proprietary information constitutes trade secrets and that the
disclosure thereof in contravention of this agreement would constitute an unfair trade practice and material breach of this Agreement.
Client hereby represents and warrants that they have full written authority to act for and bind their Principals(Who is the actual property owner)to this
Agreement and further, that (i) there are no contractual or legal restrictions to their executing this Agreement on their Principals behalf, and (ii) no
consents or their executing this Agreement on their principals behalf.The foregoing representation and warranty is a material inducement for AUBA to
enter into this agreement and undertake the work required hereunder.
VIII. This agreement shall be governed by and construed by the laws of the State of Florida,with exclusive venue being Palm Beach County,Florida. Client
agrees to pay AUBA reasonable attorneys'fees in the event that amounts due under this agreement are collected by or through attorneys. All payments are
due within 30 days from the date billed. All payments thereafter are subject to a late charge in the amount of 1.5%interest per month,for each month that
the invoice is past due.
The above represents i L:N I IRE agreement ai understanding between the parties and NO prior repro entat riti oral or written are incorporated in this agreement
Agreed to and acre. his j 2*. day of rata .200 T
AMERICAN UTI I BILL AUDI C(_)RS.I\(' CLIENT:CITY OF NO TI 11.AMI BEACH
AUBA Preside im.
BY:City Manager
�� �, Kelvin Baker CAO:
American Utility Bill Auditors,Inc. (EXHIBIT B)
PO Box 970145
Boca Raton,Fl 33794-0145
Office 561-852-1872 X 301(ADMIN) /Fax 561-477-3100
E-Mail:auba @auba.net
AUTHORIZATION FORM
TO: PLEASE LEAVE BLANK-
(NAME OF UTILITY COMPANY) ATTACH BUSINESS CARD
AMERICAN UTILITY BILL AUDITORS is hereby engaged and authorized to obtain from you all account information to file refund
applications,to inquire regarding status, and to receive any information relating to adequately auditing our account,and to process refunds to
which the undersigned may be legally entitled.
:; 'AN UTILITY BILL AUDITORS:
1l-t
0
ti rized Agent
CLIENT:PLEASE COMPLETE BELOW INFORMATION:
Organization:CITY OF NORTH MIAMI BEACH
Address:
17011 NE 19TH AVENUE
NORTH MIAMI BEACH,FLORIDA 33162
Authorized Representative of Organization: Kelvin Baker—City Manager
Roslyn Weisblum—Assistant City Manager
Susan A.Liburd—Finance Director
Brian O'Connor—Chief Procurement Officer
Signat e of fficer:
Kelvin B. e j y Manager
Date
******PROFESSIONAL AUDITING SERVICES ******
PO Box 970145
Boca Raton,FL 33428-0145
American http://www.welooktosaveyoumoney.com
Utility
Bill Telephone:
In Florida:(561)852-1872 x 307
Other Areas:(800)958-2822
Auditors, Inc. Fax:
All Areas: (561)477-3100
ADDENDUM: Added: Scope of audited services:
American Utility Bill Auditors,Inc.(AUBA)will review The City of North Miami's(CNMB)
Franchise and Utility Tax agreements along with the collection process as it relates to the City's ordinances.
✓ AUBA,if necessary,when required,will conduct on-site office visits to the City's accounting offices and to the
related utility vendors,to review their practices of matching franchise/utility tax revenues,ultimately
examining relevant data bases that support documentation for revenues to be received.
✓ AUBA will identify all revenue sources by classification,verify calculations and search for unreported
revenues.
✓ AUBA will examine both the franchisors/franchisees database to determine if all active addresses within
CNMB are legal boundaries were included in franchise fee remittance.
✓ AUBA will recalculate the franchise fee due the CNMB using the approved rates.
✓ AUBA will issue the necessary report(s)summarizing and explaining our findings.
✓ AUBA will negotiate,if necessary a financial settlement with the franchisee if any underpayments exist.
Vt■„her Th• e• ch ges made to the Utility Monitoring Agreement c rrently in place dated 619!09.
3//
Len Garvin, President
American Utility Bill Auditors, Inc.
g//0
Date Date
Nationwide Affiliates: Florida • New York • California • Georgia •Texas
PO Box 970145
/ AmAmerican Raton,FL 33428-0145
erican http://www.welooktosaveyoumoney.00m
Utility
Bill Telephone:
�i In Florida:
Auditors, Areas:(561)(18)080)529-518-872282x2307
800)852-1872 958-2822 x 307
Aud In<ie Fax:
All Areas: (561)477-3100
TO BEGIN THE AUDIT:
1. Please provide a copy of current franchise agreements and/or related ordinances.
2. Provide a listing of zip codes and street addresses within municipal boundaries, payments received,
and the contact name and telephone number contact at the related utilities FPL,
NATURAL/PROPANE GAS, CABLE, TELEPHONE-Cellular communications)
3. Please execute the attached Client—Agreement—Addendum and Letter(s) of Authority form for each
Utility to audit.
4. Send all info to the above mailing address.
If you have any questions,please call me direct at 561-951-1324
Sincerely,
Len Garvin,President
Nationwide Affiliates: Florida • New York • California • Georgia •Texas