Title
Contract for Cost-of-Service and Utility Rate Studies (B)
Explanation
GRU annually performs in-house cost-of-service studies for four of its five utility systems, excluding the telecommunication system. Revenue requirements and rate development are also performed by staff within GRU. It has been more than ten years since an external firm has conducted cost-of-service or utility rate studies for GRU. GRU seeks an external view on these processes.
Purchasing issued a Request for Proposal for the provision of a cost-of-service and utility rate studies. The Request for Proposal was sent to twelve (12) prospective proposers and six (6) responses were received. Baker Tilly Virchow Krause, LLP submitted the best evaluated proposal for the cost-of-service and utility rate studies for GRU based on the following criteria: fees and expenses, understanding and approach, company qualifications and experience, proposed methodology and references. A tabulation of the scoring is attached for your reference.
Recommendation
The City Commission: 1) authorize the General Manager, or his designee, to negotiate and execute a one-year contract and a one-year extension with Baker Tilly Virchow Krause, LLP for the provision of cost-of-service and utility rate studies, subject to approval of the City Attorney as to form and legality; and 2) approve the issuance of purchase orders for these services in amounts not exceeding $190,000, pending final appropriation of funds.
Fiscal Note
Funds for these services have been included in the FY 2012 budget.
Drafter
Prepared by Jennifer Hunt, Chief Financial Officer, Finance
Submitted by Robert Hunzinger, General Manager