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16-1101_UTILITY COST MANAGEMENT LLC_D2_ Agenda Report_Supplementary
City of San Juan Capistrano Supplementary Agenda R eport TO: Honorable Mayor and Members of the City Council FROM : ~n Siegel, City Manager SUBMITTED BY: Steve May, Public Works and Utilities Director ~(/1/V--.-- DATE: November 1, 2016 11/1/2016 012 SUBJECT: Consideration of a Professional Services Agreement for an Audit of City Electrical Accounts RECOMMENDATION: By motion, approve and authorize the City Manager to execute a standard form professional services agreement with Utility Cost Management, LLC, for an audit of the City's electrical accounts to identify cost savings opportunities, and direct staff to return to the City Council with recommendations upon completion of the electric account audit. SITUATION : One of the four proposers for an audit of the City's electrical accounts, Troy & Banks, had not authorized publication of its proposal prior to completion of the agenda reports on Wednesday, October 26, 2016, and now wishes to publish its proposal. Troy & Banks indicated in an email on Monday, October 31, 2016, that it needed to get advice from its legal counsel on the matter, which delayed their response to staff's request for authorization to publish the proposal. The Troy & Banks proposal is submitted herewith as Attachment 1 (identified as Attachment 3 in the original staff report). Troy & Banks had the lowest fee proposal, although the recommendation was to exclude Troy & Banks for lack of authorization to publish its proposal and lack of responsive references. The recommendation has not changed as there have been no responsive references of three contacted by voicemail, and no references listed in the proposal in the west coast region of the country. ATTACHMENT : Attachment 1: Proposal from Troy & Banks, Inc . CITY OF SAN JUAN CAPISTRANO , CA Request for Proposal for CONSULTING SERVICES to PERFORM UTILITY BILL AUDIT Thursday, O c t o b e r 6 , 2016 at 3:00 P.M. PST CONTACT: Troy & Banks, Inc. 2216 Kensington Avenue Buffalo, New York 14226 (716) 839-4402/ (716) 839-4452 fax t rana llo @troyban ks. com www.troybanks.com Thomas T. Ranallo, President ATTACHMENT 1 Page 1 of 33 TROY & BANKS, INC . City of San Juan Capistrano Attn: Steve May Public Works & Utilities Department 32400 Paseo Adelanto San Juan Capistrano, CA 92675 Dear Mr. May: October 6, 2016 RE: Utility Bill Audit It is with great pleasure that Troy & Banks is prepared to provide the Consulting Services to Perform Utility Bill Audit as required by the City of San Juan Capistrano, California ("City"). Founded in 1991, Troy & Banks ('T&B") is a privately held, independent energy and telecommunications consulting company with corporate offices located in Buffalo, NY. We have extensive experience working with municipalities in the audit and analysis of utility and communications systems. Troy & Banks will provide professional services to analyze the City of San Juan Capistrano's electricity accounts. The review will determine whether erroneous charges have been imposed in the past. If overcharges have occurred, T&B will work with the utility provider to recoup refunds. Troy & Banks will also determine whether ongoing utility charges can be reduced by application of new rate schedules, rate options, or other billing adjustments. We will work with the utility providers to implement the rate changes and other billing adjustments we identify. An audit by Troy & Banks involves verv little involvement on the part of the City after we have obtained the initial paperwork. To initiate a review, the City will simply provide us with one copy of each bill for every electricity service invoice issued to the City. Troy & Banks is capable of extracting the necessary billing detail electronically. Our auditors will review the utility billing history for the previous two (2) years as per the City's request. We are confident that the City of San Juan Capistrano, California will conclude that our firm is the most experienced and qualified firm to conduct the Utility Bill Audit. Troy & Banks would also be interested in examining the City's gas, telecom, water/sewer, gross receipts tax and cable franchise fee accounts at the discretion of the City. Troy & Banks understands, agrees with and accepts the scope of services and accepts all other requirements, terms, and conditions set by the City. Further, Troy & Banks certifies that if awarded the contract for this solicitation, it will meet the City Business Tax Certificate and insurance requirements of the City. CONFIDENTIAL and PROPRIETARY ATTACHMENT 1 Page 2 of 33 TROY & BANKS, INC . I appreciate the opportunity to submit the enclosed proposal for your review and would welcome showing you and your staff why so many other municipalities and businesses have hired Troy & Banks, Inc. I can be reached at 1-800-499-8599. Thank you. TTR/mbp Sincerely, TROY & BANKS, INC. BY: ')!~ I k4.-~fJ- Thomas T. R~nallo, President CONFIDENTIAL and PROPRIETARY ATTACHMENT 1 Page 3 of 33 TROY & BANKS, INC. Table of Contents A. General Information B. Proposed Project Approach C. Staff Qualifications and Related Experience 1. Staff Qualifications and Experience 2. Related Experience 3. References 4. Legal/Contractual Experience ATTACHMENTS: 1. Surety Information 2. Fee Proposal [added 10/31/16] CONFIDENTIAL and PROPRIETARY ATTACHMENT 1 Page 4 of 33 TROY & BANKS, INC . 1. Troy & Banks, Inc. 2216 Kensington Avenue Buffalo, NY 14226 A. General Information (716) 839-4402/ (800) 499-8599 www.tro y banks.com T&B was incorporated on 6/23/1994 No former firm name 2. Contact: Thomas T. Ranallo, President (716) 839-4402, ext. 1005 tra na il o@troyba n ks. com 3. Troy & Banks, Inc. is aS-Corporation, incorporated in the State of New York. 4. Personnel of Troy & Banks are listed below, backgrounds and credentials are given in Section C. 1. We hereby give assurance of continuity of our personnel. Troy & Banks has clearly assembled a first class consulting team with a proven track record of success. Our firm will bring the knowledge, professionalism and expertise of our team to effectively and successfully handle all work required under this project. Thomas T. Ranallo, President and Owner Keith Wiese, Pre-Audit and Audit Coordinator Edgar Fostveit, Regulatory Consultant Energy Team: Justin D. Raybeck, Energy Analyst Keith Tyson, VP of Strategic Initiatives & Energy Services James Campagna, Street Light Specialist Rick Staychock, Client Services -Street Light Auditor Additional Support Staff: Ms. Paula Gregorio-Hebler Ms. Jenah Hernek Mr. Robert Nusall Ms. Molly Pancurak 5. Surety Information Please see attachment #1 for the Certificate of Liability Insurance. 6. Troy & Banks has never received any notices of violations, corrective action notices, enforcement actions or orders, warning notices, or other forms of permit violation/non-compliance documentation. T&B does not have a parent company and/or subsidiaries. CONFIDENTIAL and PROPRIETARY ATTACHMENT 1 Page 5 of 33 TROY & BANKS, INC. B. Proposed Project Approach Founded in 1991, Troy & Banks is a privately held, independent energy and telecommunications consulting firm. We have extensive experience working with municipalities and businesses in the audit and analysis of utility and communications account relationships. Our principle business activities have included the review, analysis of utility and telecommunication companies for securing of refunds/credits for electric, gas, water, telecommunications, and cable franchise fees underpayments. We specialize in auditing commercial customer accounts for billing errors and overcharges. Troy & Banks also presents and prosecutes claims for refunds, credits and rate changes to utility companies. We have no affiliations or associations with any utility company or service provider. Since 1991, we have partnered with over 15,000 clients. T&B has successfully represented over 2,500 cities, towns and villages, 2,000 public school districts, 1,000 colleges/universities, 1,000 hospitals, 500 library systems and more than 1,500 state agencies. Troy & Banks is prepared to provide the Utility. Bill Audit as required by the City. We will provide utility auditor services in evaluating and auditing electricity bills to achieve utility bill credits and/or refunds. Our auditors will implement our sophisticated and proven audit techniques on your historical billing in search of recovery and savings opportunities. Once errors are found, we will implement the necessary changes and recover overcharge refunds due . We will monitor the accounts to verify that all changes are executed and refunds or credits are issued to the City. Troy & Banks is only compensated from the amount of any refund or credit in the costs of service; we do not add to your overhead. Each step of the audit process requires that data is tracked and logged. Invoice copies, transcripts, account numbers, vendors and their representatives, phone numbers, fax numbers, e-mails, vendor addresses, updated tariff information, audit results, claim items, claim dates, claim results, refund results, public service complaint submissions, and hearing dates and resolutions all contribute to the data that needs to be managed, analyzed and organized . Our auditors make sure that customers are only charged approved and agreed upon utility rates, tariffs, and service options. We research tariff options, billing histories, service classifications, rate changes, service option modifications, and contract changes. We utilize all software resources which are available to our clients, i.e . CDs, online reporting and/or online billing utilities. Dependent on the vendor, we utilize any available reporting tools to determine the overall amount of usage for a given service, oversubscription, under subscription, zero use devices and so on. CONFIDENTIAL and PROPRIETARY ATTACHMENT 1 Page 6 of 33 TROY & BANKS, INC . Specifically, Troy & Banks will : • Identify errors and submit claims to the service providers on behalf of the City. At a minimum, T&B shall provide the following Required Product: • Extensively review bills in light of tariffs, rates, regulations, ordinances or other rules governing utility charges . • Determine whether erroneous charges have been imposed within the past two years. • Determine whether ongoing charges can be reduced by changing assigned rate schedules/rate options or other bill determinants. • Provide a written report that identifies and describes basis for any refunds and ongoing reduction of charges . • With City's approval, implement recommendations set forth in written report, including obtaining identified refunds and implementing changes of rate schedules, rate options or other bill determinants, all as identified and described in the written report .. • Measure and report on the refunds obtained and ongoing savings actually realized by the City as a result of implementation of recommendations. The report will specify all calculations, assumptions, and inputs used to determine the ongoing savings actually realized by the City. • Send invoices to the City that are based on a percentage of the refunds obtained and ongoing savings actually realized during the contract term . The invoices will specify all calculations, assumptions, and inputs used to determine the ongoing savings actually realized during the contract term. Troy & Banks will provide a written report that identifies and describes the basis for any refund and on-going reduction of charges. The report shall include possible cost savings recommendations that would result in reduced expenses for the City. At a minimum the report will include: 1. Utility bills reviewed and evaluated 2. Refunds due to the City 3. Current list of all accounts/meters will include: buildings/facilities covered under utility franchise agreements. Listing at a minimum, facility name, address, utility usage, meter numbers, account numbers, total annual cost by meter, and general usage information. 4. Correspondence from utility providers agreeing to amounts of the refund due to the City, and methods to be used to refund money owed the City. CONFIDENTIAL and PROPRIETARY ATTACHMENT 1 Page 7 of 33 TROY & BANKS, INC . 5. Recommendation and guidance on industry best practices for utility bill intake, processing, data entry, and record keeping. 6. User-friendly guide to identify common utility billing errors for each type of utility bill reviewed by City staff for training purposes. Methodology: A. Methodology used to implement the recommended changes with each utility provider: Once discrepancies or potential changes to accounts are identified, Troy & Banks prepares a claim letter for the utility provider, documenting our findings. If necessary, we then personally follow up with each utility provider to ensure that the changes specified have taken place. We then continue to monitor your accounts to ensure that the billing errors have stopped and the appropriate changes were implemented. B. Methodology used to recover overpayments and how far back they will go: T&B will audit invoices from and payments to your utilities suppliers. The audit will include a review of all applicable tariffs and riders. Our audit will ascertain whether the invoices are accurate and appropriate under tariffs and regulations. Our specialized audit software is designed to check for billing errors. If overbilling has occurred, we will prepare a claim letter, document our findings, and forward to the service providers requesting reimbursement plus interest. Our extensive experience has combined to produce millions of dollars in refunds and savings for our clients. T&B is committed to ensuring a timely and successful completion of every audit undertaken. All of our audits are monitored by an audit coordinator and tracked in our database. This helps to ensure that all audits are progressing smoothly. T&B also has a team dedicated to following up on requests for billing history, as well as claims submitted on your behalf, ensuring that requests for information and claims are responded to promptly. The technical approach to the audit will be tailored to the needs of the City of San Juan Capistrano. Typically, we follow a three-phase process. There is an organizational phase (phase 1 ). an audit phase (phase 2), and a claims resolution phase (phase 3). They are described as follows: PHASE I -AUDIT SET UP (Approx. 45 days) • Compile client information (including invoice copies, account lists, facilities list, contact information, and contracts) • Order transcripts from investor-owned, municipal and cooperative utility providers • Organize data for audit phase CONFIDENTIAL and PROPRIETARY ATTACHMENT 1 Page 8 of 33 TROY & BANKS, INC. PHASE II-DETAILED AUDIT/Audit Software (Approx. 2-8 weeks) • Conduct detailed review of all monthly charges including rates, demand reads, taxes, riders, adjustments and special contracts • Validate monthly charges against applicable rate cards, tariffs, and rate spreadsheets • Identify billing errors and cost saving recommendations PHASE Ill-REFUND CLAIM NEGOTIATIONS & COST SAVINGS IMPLEMENTATIONS (Approx. 4-8 weeks) • Report billing errors to utility vendors, requesting refunds • Negotiate appropriate credits or refunds • Prepare cost saving proposals for client approval • Provide Final Management Summary Report documenting refund and cost saving issues City Participation : An audit by Troy & Banks involves very litt le involvement on the part of the City after we have obtained the initial paperwork. To initiate a review, the City will simply provide us with one copy of each bill for every account that will be subject to the audit. Troy & Banks is capable of extracting the necessary billing detail electronically. In order for Troy & Banks to perform our audit, we will need the following items from the City: 1. Copy of a summary account listing by vendor including account number and address, preferably in an electronic format-OR, if necessary-one (1) bill from each of the City's accounts including all electric and gas. If the City chooses, T&B will also need bills from all street light, telecommunications and water/sewer accounts. We would also need a copy of the cable franchise fee agreement. 2. An executed Client Agreement and Letter of Authorization form. CONFIDENTIAL and PROPRIETARY ATTACHMENT 1 Page 9 of 33 TROY & BANKS, INC. Troy & Banks Organizational Structure: Lead Energy Analyst Justin Raybeck A na lyst Bob Nusall e ident homas anaJlo /; Ene.rgy Services Keith Tyson l \ Street Light Analyst James Campagna Auditor Rick taychock CONFIDENTIAL and PROPRIETARY Audit Managel' Keith Wiese ATTACHMENT 1 Page 10 of 33 TROY & BANKS, INC. C. Staff Qualifications and Related Experience 1. Staff Qualifications and Experience An intricate part of Troy & Banks' success is the implementation of a "team approach" of specialists. Our staff has accumulated over 300 years of combined professional, "in the field", auditing and consulting experience. What distinguishes our firm from others is our comprehensive staff which includes former utility and telecommunication company executives. managers and field personnel. Our regulatory consultants worked extensively at the New York State Public Service Commission (PSC) in both the utility and telecommunications divisions. The Troy & Banks "team" has successfully produced the following work product for our clients: * Negotiated over $20 million in utility and telecommunication refunds * Reduced our clients' expenses in excess of $250 million * Designed and negotiated over 75 specialized contracts * Secured over two million dollars in payments for our clients through electric curtailment programs Our consultants have: * Served with various State Public Service Commissions * Served as municipal account managers * Testified in Public Service Commission rate case proceedings * Executed over 1 ,000 electrical engineer site surveys * Represented major industrial consumers with respect to natural gas transportation contracts, cogeneration development, electric and natural gas litigation, hydroelectric power allocations and international trade law enforcement * Represented clients in a number of electric rate cases on a variety of avoided cost and rate matters * Represented major corporations and associations with respect to telecommunication tariffs, contracts, and FCC regulatory matters THOMAS T. RANALLO. President and Owner-5% of time Founder -Troy & Banks, Inc. 25 years of management experience in the utility and telecom-auditing fields Successfully negotiated over $50 million in over billing refunds Successfully managed multiple site, multi-faceted audits for the following large clients: Port Authority of New York & New Jersey, AMTRAK, New York Stock Exchange, Bausch & Lomb, City of Albany, City of Buffalo, U.S. Postal Service - Northeast Region, M& T Bank, Niagara Frontier Transportation Authority, HSBC Bank, Buffalo and Rochester City School Districts, and Off-Track Betting Corporation -Capital & Western Region CONFIDENTIAL and PROPRIETARY ATTACHMENT 1 Page 11 of 33 TROY & BANKS, INC . Has had professional consulting training from the Center for Communications Management Information including courses in the following: 1998 -"Telecommunication Audit Secrets"-Covering rules and regulations, options with competing providers and auditing essentials 1999-"Advanced Auditing Sessions"-Covering frame relay technology, FCC's de-tariffing order, traffic analysis essentials and precision auditing exercises 2002-"Advanced Auditing Sessions"-Covering frame relay technology, FCC's de-tariffing order, traffic analysis essentials and precision auditing exercises 2002 -"Frame Relay Service and Billing"-Covering frame relay technology Institute on Public Utility Law 2006 -This continuing educational conference included sessions on Network Reliability and Security, status of Telecom Competition Three, Wind Energy, Fixed-Price Commodity Option, and Utility Land Use Issues KEITH WIESE. Pre-Audit and Audit Coordinator-10% of time Organize audit data Order utility and telecommunication histories and customer service records Coordinate the distribution of audit information to the appropriate auditors Perform follow-up work for the auditors Verify applicable credits and refunds 22 years with Troy & Banks EDGAR FOSTVEIT. Regulatory Consultant-5% of time 26 years with the New York State Public Service Commission, first as an investigator, and later as a hearing officer (15years). Ruled on gas and electric complaints submitted to the Commission by consumers, and he is also experienced in tariff and Public Service Law. Served as a consultant for the Pennsylvania Public Utility Commission and Vermont Public Service Commission, and has provided frequent testimony in three states as either a staff member or consultant, in cases involving utilities Energy Team: JUSTIN D. RAYBECK. Energy Analyst-30% of time Eleven years' experience in the deregulated utilities industry Energy Consultant-analyzes rate and billing histories for New York State investor-owned utilities and municipal utility providers, as well as out-of-state providers Researches and identifies over-billings, preparing necessary supporting evidence for over-billing claims Prepares discrepancy claim letters, documenting the over-billing, as well as developing status reports Knowledge of tariffs for various utilities assures clients that they are being placed on the most appropriate and money-saving rate Managed audits for clients such as: CONFIDENTIAL and PROPRIETARY ATTACHMENT 1 Page 12 of 33 TROY & BANKS, INC. Pfizer United States Postal Service City of Syracuse City of Buffalo Ohio Department of Transportation Nassau County New York State Police Department New York State Thruway Authority New York Stock Exchange Onondaga-Cortland-Madison BOCES KEITH TYSON. VP of Strategic Initiatives & Energy Services-10% of time Client representative for major accounts such as General Electric, City of Buffalo, Erie County, Rockland County, Hanson Aggregates, Buffalo Public Schools, Western and Capital District Off-Track Betting Corporations, New York Racing Association, Inc., General Mills, and OxyChem; many municipalities, school districts, and manufacturers. Research analyst responsible for investigating accounts and working with senior auditors on claim development and resolution. Coordinator of Public Service Commission cases representing approximately 80 municipalities and numerous religious organizations. These resolved cases have returned over $6 million in refunds and has provided thousands of dollars in future cost savings to these entities. Directs TB's electrical Demand Response programs in New York (SCR) and nationally. JAMES CAMPAGNA. Street Light Specialist -10% of time Nine years' experience in the Street Lighting sector Prepares inventories of all street lighting accounts and verifies correct billing for each light Researches and identifies over-billings, preparing necessary supporting evidence for over-billing claims Prepares discrepancy claim letters, documenting the over-billing, as well as developing status reports Knowledge of tariffs for various utilities assures clients that they are being placed on the correct street light rate Managed Street Light Audits for clients such as: Geneva City Schools, NY City of Buffalo, NY City of Virginia Beach, VA City of Syracuse, NY James City County, VA City of Olean, NY City of Utica, NY Village of Royal Palm Beach, FL RICK STAYCHOCK, Client Services -Street Light Auditor -30% of time Undergraduate and Graduate education in Geography and Planning with GIS coursework Utilization of GIS technology to create digital street light map inventories with desired attributes and photography for municipal clients Researches and identifies over-billings to prepare supporting evidence for over- billing claims Prepares discrepancy claim letters, documents over-billing, as well as development of status reports CONFIDENTIAL and PROPRIETARY ATTACHMENT 1 Page 13 of 33 TROY & BANKS, INC. Conducted Street Light Field Audits for clients such as: Pleasanton, CA, Macon- Bibb, GA, City of Huntington, WV Additional Support Staff: The following individuals are responsible for the coordinating of office and support work. Their primary responsibilities in support of the audit process are records attainment and retention, data entry and management, application development and claim generation. Ms. Paula Gregorio-Hebler Ms. Jenah Hernek Mr. Robert Nusall Ms. Molly Pancurak Troy & Banks will not be subcontracting any of the services required under this RFP. 2. Related Experience a. Sample Utility Account Audit: City of Pleasanton, CA-The City signed an agreement with T&B in 2015 to conduct a forensic audit of utility, street light and telecom accounts. The City is a suburb in the San Francisco Bay area and located about 25 miles east of Oakland. Our audit includes an examination of all gas, electric, telecommunications and water/sewer accounts. To date, T&B has recovered over $283,000 for the City in credits and refunds. b. Project Reporting: T&B will provide the reports over the course of the audit. Standard reports include: Credit/Refund Request, Claim Spreadsheet, Inventory Report, Report on Refunds and Savings, and Audit Summary These reports will be provided on a regular basis as we obtain the information, generally monthly but can be altered as desired by the City. Two sample reports for the City of Virginia Beach, VA and the City of Hampton, VA are included at the end of this section. c. Financial Impacts : Please see the example of savings identified for the City of Syracuse, NY. This is included at the end of this section. d. Scheduling: The following is a general time schedule for the scope of work : CONFIDENTIAL and PROPRIETARY ATTACHMENT 1 Page 14 of 33 TROY & BANKS, INC. 1. Analyze historical account billing for accuracy of charges for the utility vendors: ./ We will be able to start the audit immediately upon notification of award by the City. It will take approximately 30-45 days to obtain the historical account billing. As soon as account information is received, we will start the analysis. It will then take about two to eight weeks to conduct the audit of all monthly charges. 2. Prepare a written report to the City on any billing inaccuracies or discrepancies: ./ It will take about two weeks to prepare the written report on any billing inaccuracies or discrepancies following our detailed audit. 3. Prepare a written report on the recommended steps for the City to take to correct billing inaccuracies and procure refunds, if applicable: ./ We estimate about two weeks to prepare the written report on the recommended steps for the City to take, if applicable, following our analysis. 4. Prepare a detailed list of recommendations, including implementation plan and estimated cost savings for each recommendation: ./ T&B will prepare the detailed list of recommendations at the conclusion of our audit. 5. Assist the City in correcting billing inaccuracies, implementing recommendations and procuring refunds: ./ In general, it will take approximately six to eight months to assist the City in correcting billing inaccuracies, implementing recommendations and procuring refunds. 3. References The following are municipalities that Troy & Banks has worked/is working with to provide utility bill audits since October, 2011. Our services for these audits have included utility and street light forensic reviews. Town of Remington VA Village of Moravia NY Town of Horseheads Edgefield County sc City of Cortland NY Town of Ashland Town of Poughkeepsie NY Patrick County VA Herkimer County City of Passaic NJ Russell County VA Town of Newburgh City of Buffalo NY Richmond County VA City of Binghamton Town of Colonial Beach VA Town of Westmoreland NY Town of Barre Village of Norwood NY Town of Morristown NY Douglas County Tazewell County VA Village of Fishkill NY Lewis County County of Chesterfield VA Village of Dansville NY City of West Linn Town of Camillus NY Pulaski County VA City of Poughkeepsie Village of Jordan NY Charles City County VA Spotsylvania County Washington County OR Village of Morristown NY Village of Cambridge City of Tonawanda NY Prince George's County MD Town of Wilna Village of Pittsford NY City of St Pete Beach FL Village of Wappingers Town of Wise VA City of Galax VA Falls City of Hampton VA Cattaraugus County NY Town of Hurt CONFIDENTIAL and PROPRIETARY ATTACHMENT 1 NY VA NY NY NY NY OR NY OR NY VA NY NY NY VA Page 15 of 33 TROY & BANKS, INC . Town of Milan NY Town of Fishkill NY City of Beaverton OR Village of Vernon NY Town of Hempstead NY Town of Boydton VA Dickenson County VA Town of Vestal NY Town of Warsaw VA Essex County VA Southampton County VA Town of Niskayuna NY City of Waynesboro VA Town of South Hill VA City of Suffolk VA Village of Hoosick Falls NY Town of Broadway VA Town of Cheektowaga NY Town of Lysander NY Cumberland County VA City of Buffalo NY City of Little Falls NY Village of Ravena NY Town of Chenango NY Town of Geddes NY Town of Maine NY Dinwiddie County VA Town of Coeymans NY Village of Kenmore NY County of Page VA Town of Dewitt NY Town of Tonawanda NY Village of Rhinebeck NY Village of Barneveld NY City of White Plains NY Town of Tully NY Town of Farmington NY City of Batavia NY City of Emporia VA Town of Middleburg VA Village of Dolgeville NY City of Manassas Park VA Town of Marion NY County of Prince George VA Town of Champion NY Town of Concord NY City of Manassas VA City of Auburn , NY NY Village of Black River NY City of Troy NY Town of Onondaga NY Village of Alexandria Bay NY Town of Germantown NY City of Canandaigua NY Pittsylvania County VA Greensville County VA Town of Timberville VA Town of Altavista VA Town of Christiansburg VA Town of Somers NY Village of Bloomfield NY Livingston County NY Town of Montross VA Town of Mineral VA City of Saratoga Springs NY City of Niagara Fails NY Town of Purcellville VA City of Petersburg VA Village of Adams NY Town of Lenox NY Lunenburg County VA Botetourt County VA Town of Clay NY Town of Wilson NY Bath County VA County of Louisa VA Town of West Seneca NY Village of Saranac Lake NY Middlesex County VA Town of Ashland NY Town of Corinth NY CONFIDENTIAL and PROPRIETARY City of Reno NV City of Ogdensburg NY Town of East Greenbush NY Town of Vienna VA Village of Minoa NY Town of Potsdam NY Village of Wilson NY Village of McGraw NY County of Isle of Wight VA Town of Orchard Park NY City of Lackawanna NY Town of Lewiston NY New Kent County VA City of Albany NY Scott County VA Town of Fries VA Village of Bainbridge NY City of Poquoson VA Town of Pembroke NY Montgomery County VA County of Grayson VA City of Virginia Beach VA Village of Lewiston NY City of Rensselaer NY Town of Bladensburg MD Town of Niagara NY King and Queen County VA Town of Sodus NY Village of Cazenovia NY County of York VA Town of Porter NY Town of Brighton NY Town of Cicero NY Village of Manlius NY Town of Adams NY Town of Kirkland NY City of Johnstown NY Village of Port Byron NY ATTACHMENT 1 Page 16 of 33 TROY & BANKS, INC. Three references: a. Town of Salina , NY b. Utility and Telecom Audit c. $166,643.74 d. T&B provided a utility, telecom, street light and cable franchise fee audit for the Town. e. Mark Nicotra, Supervisor 201 School Road, Liverpool, NY 13088 # (315) 457-6661 f. 9/25/201 0 -1/5/2015 g. The Town recovered over $165,000 in refunds and savings. a. City of Buffalo, NY b. Audit of Electrical Service Accounts Including Street Lighting, Audit of the Cable Franchise Agreement, Audit of the Collection of the Gross Receipts Tax and c . $1,680.770.50 d . T&B has been hired, through the Request for Proposal process, by the City several times for various types of audits. We are reviewing the City's utility and street light accounts, the Gross Receipts Tax, and the cable franchise fee agreements. e. Kevin Kaufman, City Auditor 65 Niagara Square, Buffalo, NY 14202 # (716) 851-5265 f. 10/30/2013, 12/15/14 and 6/16/15-all to present g. The City has realized over $1.6 million in refunds and credits to date. a. City of Virginia Beach, VA b. Utilities Accounts Audit c. $347,583.06 d. Following the Request for Proposal process, the City hired Troy & Banks to review their utilities, street light accounts, and telecommunications e. Lyndon Remias, City Auditor 2401 Courthouse Drive, Building 1, Room 344, Virginia Beach, VA 23456 # (757) 385-5872 f. 12/19/2011-to present g. The City has recovered almost $350,000 in refunds , savings and credits to date. 4. Legal/Contractual Experience Troy & Banks has never failed to complete a contract. There are no legal or administrative proceedings that are pending or have been concluded adversely against Troy & Banks within the last five years. CONFIDENTIAL and PROPRIETARY ATTACHMENT 1 Page 17 of 33 PROPRIETARY & CONFIDENTIAL .... nergy Audit Summary for: City of Virginia Beach TROY&BANKS Utility and Telecommunication Consultants ATTACHMENT 1 Page 18 of 33 PROPRIETARY & CONFIDENTIAL CONTENTS: Tooic I. Vendors D. Methodology of Audit Process []J. Audit Results & Observations IV. Total Refund and Savings Page 1 1, 2 2 3 ATTACHMENT 1 Page 19 of 33 ~OI'JlQI:llliiJll~§: BUFFALO • NEW YORK 2216 Kenf:iington Avenuo Konsington Avonuo ot Snratoya Bullalo, NY 14~26 1800)499-8599 1716) 839.4402 TelelnKI718) 8394452 ARIZONA 10641 East llrllor Avo Meso, AZ 85208 CALIFORNIA 398 E Cal nb Ave Fn~snn CA 93651'\ FLORIDA 11048 Main So•lllr. Fo l auderdnlo, FL 33026 2330 W'fl1 ·h!ur f)rclo LAkelAnd FL 338111 NEVADA 7881\ !llgler Cow t Post Off1co Oox 2G I 0 Zuphyr Cwu, NV 89•1<19 NEW YORK r-lnc:lo.f1fHII~r Ctolll.(>r Po-st Qll.co BOA 3968 New YO<k NY 10185 12121 G9fl 0621 450 Jer,chu Turnp1~0 Su•le ?fX~ Moneola NY 11501 (51 lil l'lli-0992 11754 Swnrnl:!r hw !il Or l1vvt puol. NY 13D81l OR£GON 111 sw HM'ISOil Sl, ID Pnrlloml, 011 97201 TEXAS B418E<khertRd MJIOI Son Antmw. IX 78240 VIRGINIA 325 East ll":l"·''" !Ji.Jd Su•l..€ 11201 f'Jodul~ .. VA 28~:£0 1/511 !J:J<!·1·11~ e·milil: savnrmu·oylutnk~ com internet nddross: wvrN.troybnnks.com PROPRIETARY & CONFIDEN To From Date TROY&BANKS Uiilify aud Telecommunication Consultants City of Virginia Beach Lori Herrick Justin Raybeck Energy Auditor/ Advisor 711/2013 Energy Audit Summnn for City of Virginia Beach Overall Findings-Prepared by Troy and Banks-Justin Raybeck I, Vendors The following vendor accounts were examined: • Dominion VA Power/ VA Energy Purchasing Governmental Assoc.(VEPGA) • Virginia Natural Gas II. Methodology of Audit Process Troy and Banks deployed a four step process to complete the audit: Step I: Collection qf Billing Information Troy and Banks was provided with an invoice copy for each of the accounts that were to be audited. Step ll: Ordering of Historical Customer Service Records Troy and Banks reached out to all vendors and requested historical billing records for each account. Step III: Detailed Audit Once billing records were received and the tariffs were reviewed, Troy and Banks audited each account. The following are just some ofthe items that were evaluated for each account: • Incorrect Monthly Charges 1 ATTACHMENT 1 Page 20 of 33 PROPRIETARY & CONFIDENTIAL • Incorrect Rate Assignment • Alternate Rate Schedules • Abnonnal Demand Reads • Abnonnal Usages • Multiple Month Billings • Applicable Riders • Applicable Credits or Discounts • Incorrect Delivery Voltage Levels and Meter Multipliers • Incorrect taxes Step IV: Claim Resolution & Future Savings Evaluation As incorrect billing items and opportunities for future savings were identified, claim letters were submitted to the appropriate vendors. III. Audit Results & Observations Dominion VA Power/ VA Energy Purchasing Governmental Assoc. (VEPGA): An analysis of all Dominion accounts led to the submittal of ll claim letters. Eight letters were submitted for questionable historical billings and after discussions with the utility, two were agreed to be billed in error. The credit/refund breakdown is below. Account Number 14763-77500 95303-57502 Credit/Refund $13,616.13 $145 .96 $13,759.09 Three additional claim letters were submitted to reduce the Minimum Contract Quantities for three accounts. Dominion agreed with our findings and "Letter Supplements" were forwarded to the City for execution. During this time, it was found that one of the accounts (Sandler Center) is under contract until April 2014 and cannot be changed until then. The other two accounts are in the process of being changed and the lower quantities should be effective July 2013. The savings breakdown is below. Account Number 98931-91412 29490-91033 Annua l Savings $31,900 $7.800 $39 700 2 ATTACHMENT 1 Page 21 of 33 PROPRIETARY & CONFIDENTIAL Troy & Banks conducted rate analyses for all accounts and identified 106 accounts that may benefit from alternative rates. Since there was no Future Savings contract signed, T &B handed this list off to the City with no expectation of compensation. VA Natural Gas: An analysis of all VA Natural Gas accounts led to the submittal of one claim letter. After discussions with the utility, the account was found to be billed accurately. Accounts are being billed correctly. No overcharges were identified. IV. Total Refunds and avings ltem Refund Refund Contract Demand Reduction Contract Demand Reduction Account# 14763-77500 95303-57502 98931-91412 29490-91 033 Refund/Annual Savings $13,616.13 $145.96 $31,900 $7.800 $53,459.09 Please review the summary and if you have any questions or concerns, please feel free to contact me at 716-517-3962 or jnwbeck@troybank .com. Sincerely yours, -· lustm Raybeck, Vice >rc 1denl Utility Auditing & Energy Services 3 ATTACHMENT 1 Page 22 of 33 == I :! ,, I , PROPRIETARY & CONFIDENTIAL Utility Audit Summary for : City of Hampton AMPT VA TROY&BANKS Utility and Telecommunication Consultants ATTACHMENT 1 Page 23 of 33 I. II. III. IV. PROPRIETARY & CONFIDENTIAL CONTENTS ~ Topic Veodon Methodology of Audit Process Audit Results & Observations Total Refund and Savings Pt1ge 1 1, 2 l-4 4 ATTACHMENT 1 Page 24 of 33 ~ ll..llllt.u: BUFFALO· NEW YORK 2216 l<flfl510ijton Avunua Kanain!)lon Avonue Buflolo. NY 14?.26 (80014998599 (7101 0394402 T~lelo• (7161 839445?. IJrqnph Qlflg.qg: CALifORNIA 398 E. Corob llvo Frosno. CA 9385~ FLORIDA ~980 w Browonl Blvd Ft Loudlln!ula. FL 333 I 2 1!330 Worblo• Cortlo Lo~olftod 1'1. 338 10 NEW YORK Rockor"ner CenlrJr Post Ofi!CD Bu• 3968 NowYort. NY 10185 (?.121 699{)621 450 Jo~cl'" Tumpot.o SWto 203 Minoolo. NY 11 !>01 (511li7~G{J992 OREGON 111 SWtl<trnoooSt 10 Pottlood.OR 97201 n:XAS 6410 f<lhoot n~ •3101 Son 1\nlorliD, TX 78240 VIRGINIII 325 [n!o1. Oll'fiLl'W Blvd SUit.O 11201 Nor1oll. VII :?3!)(JJ (7571932·1414 o-m all: aave,troyHnke,com lntornat. nddroaa: W'INW troybankn.com PROPRIETARY & CON ~~DEN ~ ·1 ROY & HANKS To From Date Uti/lly ami T£>1rcommunlcallon Consultants City of Hampton Micah Garner Justin Raybeck Energy Auditor/Advisor 9/12/2016 Utility Audit Summat·y for· Che C ity of Hampton Overall Findings -Prepared by Troy and Banks-Justin Ray beck I. Vendors The following areas were examined: • Electric & Gas • Sales Tax • Streetlight • Telecom IJ . Methodology or Audit Pt·occss Troy and Banks deployed a four step process to complete the audit: Step 1: Collection of Billing Information Troy and Banks was provided with an invoice copy for each of the accounts that were to be audited. Step II: Ordering of Historical Customer Service Records Troy and Banks reached out to all vendors and requested historical billing records for each account. Step Ill: Detailed Audit Once billing records were received and the tariffs were reviewed, Troy and Banks audited each account. The following are just some of the items that were eva I uated for each account: I ATTACHMENT 1 Page 25 of 33 PROPRIETARY & CONFIDENTIAL • Incorrect Monthly Charges • Incorrect Rate Assignment • Alternate Rate Schedules • Abnormal Demand Reads • Abnormal Usages • Multiple Month Billings • Applicable Riders • Applicable Credits or Discounts • Incorrect Delivery Voltage Levels and Meter Multipliers • Incorrect taxes Step IV: Claim Resolution & Future Savings Evaluation As incorrect billing items and opportunities for future savings were identified, claim letters were submitted to the appropriate vendors. Ill. Audit Results & Observations Electric & Gas An analysis of all Dominion accounts led to the submittal of 27 claim letters. We identified more favorable rates for these accounts which led to actual, realized, one~year savings of $39,778.59. The breakdown of savings is below: Aecouut Number 8211335438 1632547525 4324818709 5771165007 0366320000 9080472500 1010510004 0570632505 3600275006 1181658095 1482296322 3811777501 8240125008 4580645002 6747883608 12 Mouth SaviDI!S $6,971.00 $1,648.26 $5 047.80 ($214.09) $4,296.36 $249.46 $153.58 $194.01 $753.00 $249.92 $273.81 $184.83 $188.62 $521.96 $34.87 2 ATTACHMENT 1 Page 26 of 33 PROPRIETARY & CONFIDENTIAL 3414962823 $133.30 0022529796 $108.52 7630585003 $56.95 3070647304 $13.20 8311202504 $81.13 7096763219 $115.47 4081755003 $101.97 8291230004 $378.39 0876305004 $11,972.67 0856305008 $5,883.99 1360490005 $184.19 8301182500 $195.43 Total Savings $39,778.59 Sales Tax: Tax claims have been filed with Verizon, COX and VA Natural Gas. One VA Natural Gas account was credited for $367.89 and we are awaiting responses from Verizon and Cox. Aewuat Number Credit Amount Verizon-000684 796913 TBD Verizon-0000 12245972 TBD COX-00 I 5414 I I 040890 I TBD COX-001 5414 125498101 TBD COX-001 5414 125625301 TBD COX-001 5414 125677601 TBD VA Natural Gas-8755246790 $367.89 Streetlight: Two overcharges were identified with the City's street-lighting. Account Number Streetlight Streetlight Total Savings Credit Amount $2,569.23 $7,324.61 $9,893.84 3 ATTACHMENT 1 Page 27 of 33 PROPRIETARY & CONFIDENTIAL Telei:om: The telecom audit was just contracted to start this year. However, claim letters were sent to Verizon for POT's lines and the preliminary findings are below: • Potential 3 year refund-$56,700 • Potential reduction in monthly costs-$3,375 • Annualized savings-$40,500 IV. Total Refund Area Electric & Gas Sales Tax Sales Tax Street! ight Telecom Telecom Item Annual Savings Credit Credit Credit Refund Annual Savings Amount $39,778.59 $367.89 TBD $9,893.84 TBD TBD $50,040.32 We will provide a final summary report once all areas items have been fully responded to. Please review the summary and if you have any questions or concerns, please feel free to contact me at 716-517-3962 or jraybcck@ti"Oy banks.com. Sincerely yours, Justin Raybeck Energy Auditor/ Advisor 4 ATTACHMENT 1 Page 28 of 33 Client Account# Service Address City of Syracuse ){)(}{)(X-)()()(}0( XXX City of Syracuse XXXXX-XXXXX XXX City of Syracuse XXXXX-){)()00( XXX City of Syracuse )(J()OO(.J<XXXX XXX City of Syracuse XXXXX-XXXXX XXX City of Syracuse XXXXX-XXXXX XXX City of Syracuse XXXXX-XXXXX XXX City of Syracuse XXXXX-XXXXX XXX City of Syracuse XXXXX-XXXXX XXX City of Syracuse XXXXX-XXXXX XXX City of Syracuse XXXXX-XXXXX XXX City of Syracuse XXXXX-XXXXX XXX City of Syracuse XXXXX-XXXXX XXX City of Syracuse XXXXX-XXXXX XXX City of Syracuse XXXXX-XXXXX XXX City of Syracuse XXXXX-XXXXX XXX PROPRIETARY CONFIDENTIAL City of Syracuse, NY Utility Claim Date Item neUonal grid 4-Mar-OB questionable demand read naUonalgrid 15-Feb-05 ratchet demands out or line national grid 15-Feb-05 ratchet demands out of line national grid 15-Feb-05 60 day billing national grid 15-Feb-05 60 day billing national grid 15-Feb-05 60 day billing national grid 15-Feb-05 60 day billing national grid 15-Feb-05 60 day billing national grid 15-Feb-05 eo day billing national grid 15-Feb-05 60 day billing national grid 15-Feb-05 60 day billing national grid 15-Feb-05 60 day billing national grid 15-Feb-05 demand Install from tum-on national grid 15-Feb-05 demand install national grid 15-Feb-05 Questionable demand read national grid 15-Feb-05 Multiple day demand bill r<emno Status Amount REFUNDED $6,257 .84 REFUNDED $23,382 .13 REFUNDED $7,938.58 REFUNDED $3,067.78 REFUNDED $624.99 REFUNDED $362.52 REFUNDED $398.37 REFUNDED $39.32 REFUNDED $13.88 REFUNDED $2,497.74 REFUNDED $901.71 REFUNDED $356.15 REFUNDED $1,443.85 REFUNDED $140.05 REFUNDED 5395.85 REFUNDED $840.41 ATTACHMENT 1 Page 29 of 33 ACORD® CERTIFICATE OF LIABILITY INSURANCE I DA"T£ (MMIDDIYYYY) ~ 10/3/2016 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIACATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIACATE HOLDER. IMPORTANT: If the certificate holder Is an ADDmONAL INSURED, the pollcy(les) must be endorsed. If SUBROGATION IS WAIVED, subject to the tenns and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder In lieu of such endorsement{a). PRODUCER CONTACT Commercial Lines Department NAME: M & T Insurance Agency. Inc. PHONE I f~..Jiol; 855-595-4605 285 Delaware Avenue , Ste 4000 lA/C. No, U!.): __ . ___ Buffalo NY 14202 ~"h"J~s.s:~~Servicing@mtb.com ~----·--~---~~R(S).AFFOROING COVERAGE; -NAICI - INSURER A :Hartford Fire Insurance Co. 19682 INSURED TROYA-1 INSURERs ,Hartford Ins Co of the Midwest 37478 Troy and Banks, Inc. INSURER C :fhiladel hia lndemnlcy Ins Co 18058 2216 Kensington Ave INSURER D: Buffalo NY 14226 -- ~RE: IN.sURER F ; COVERAGES CERTIFICATE NUMBER: 172535040 REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. ~~ TYPE OF INSURANCE II'WDLISUIJR INSO 1\Wtl POUCY HUMBER u:ID-J5~ ,,~~~~~ UMITS A L COMMERCIAL GENERAL UABILITY 01SBAAN3261 10/6/2016 10/6/2017 EACH OCCURRENCE $1,000,000 0 CLAIMS.MADE ~ OCCUR -DAMA"'GtrORENTEo-· r--r'iiE:"MiSes I ~:a O«U!IVIICoJ $300,000 r--MED EXP (Any one person) $10.000 PERSONAL & ADV INJURY $1,000,000 ~ ~'L AGGREGATE LIMIT APPI,J_ES PER: GENERAl AGGREGATE $2,000,000 POLICY D j~g [_J LOG PRODUCTS -COMP/OP AGG $2 000 000 OTHER: $ A AUTOMOBILE UABIUTY 01UECGF7666 101612016 101612017 rE'i:~~;~~~IN<oLI:: LIMI $1,000,000 rx-ANVAUTO BODILY INJURY (Per person) $ -~b~@'NED ;--SC~EDULED BODILY INJURY (Per eccidenl) $ -f-~~N~6WNED rt..?~~~~~~AMAGE HIRED AUTOS AUTOS $ -r--s A X UMBRELLA UAB H OCCUR 01SBMN3261 I 10/6/2016 10/6/2017 EACH OCCURRENCE $5,000,000 -i EXCESSUAB CLAIMS. MADE I AGGREGATE $5,000,000 OED I X l RETENTIONs 10 000 : $ B WORKERS COMPENSATION 01WBCGH3216 10/6/2016 1016/2017 X I ~~lUTE I l g~· AND EMPLOYERS' UABIUTY Y /N ANY PROPRIETOR/PARTNER/EXECUTIVE 0 NIA E.L. EACH ACCIDENT $500.000 OFFICER/MEMBER EXCLUDED? (Mandatory In NH) E.L.. DISEASE -EA EMI'LOYEE $500,000 ~~Mf~~ o"?gPERATIONS below E.L. DISEASE -POLICY LIMIT $500,000 c Profeo;&ional Liabilily PHSD 1144694 6/712016 6f7/2017 Aggr,eoato 1,000,000 Each ccurrence 1,000,000 DESCRIPTION OF OPERAT10NS I LOCATlONS I VEHICLES (ACORD 101, Additional Remerb Sohedule, mny be olloclled If more opaoelo required) CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE City of SanJuan Capistrano THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN 32400 Paseo Adelanto ACCORDANCE WITH THE POLICY PROVISIONS. San Juan Capistrano CA 92675 AUTHORIZED REPRESENTATIVE I 't-Q·~ © 1988-2014 ACORD CORPORATION. All nghts reseNed. ACORD 25 (2014/01) The ACORD name and logo are registered marks of ACORD ATTACHMENT 1 Page 30 of 33 TROY & BANKS, INC . p TROY&BANKS OPOS AN CITY OF SAN JUAN CAPISTRANO, CA Request for Proposal for CONSULTING SERVICES to PERFORM UTILITY BILL AUDIT Thursday, October 6, 2016 at 3:00P.M. PST CONTACT: Troy & Banks, Inc. 2216 Kensington Avenue Buffalo, New York 14226 (716) 839-4402 I (716) 839-4452 fax tranallo@troybanks.com www.troybanks.com Thomas T. Ranallo, President CONFIDENTIAL and PROPRIETARY ATTACHMENT 1 Page 31 of 33 TROY & BANKS, INC. 1. Proposed Fees For the Consulting Services to Perform Utility Bill Audit, Troy & Banks proposes the following contingency based pricing: a . City of San Juan Capistrano, California ("City") engages T&B to conduct an audit or survey of the City's electricity accounts for the purpose of securing refunds, credits and cost reductions resulting from discovery of charges or costs in excess of those permitted or allowed by applicable contracts, tariffs, statutes, rules and regulations and/or from overcharges or billing errors. T&B agrees to conduct such audit. b. Overcharges -For any refunds, credits or rebates obtained by T&B for prior overcharges, billing errors or costs in excess of those permitted by applicable contracts, tariffs, statutes, rules or regulations, T&B shall be paid 25% of all monies refunded or credited to the Client. c . Future Cost Reductions -For any reductions in future costs for electricity services resulting from T&B analysis, the fee of 25% of the amount saved each month for 12 months shall be paid to T&B. T&B will document actual monthly savings obtained by analysis of tariff cost applications. d . T&B has made and makes no guarantee or assurance of any credit or refund amount or cost saving results. e. If Client does not receive refunds, credits, or reductions in future billings, there will be no fee for T&B services. Troy & Banks auditors make sure that customers are only charged approved and agreed upon utility rates and service options. We research tariff options, billing histories, service classifications, rate changes, service option modifications, and contract changes. We uncover the mistakes that increase your operating costs. In some circumstances these mistakes have been ongoing for months or even years. We make sure those mistakes are corrected immediately to reduce your costs and secure any refunds due. Your refunds will include the overcharges plus all interest according to applicable laws and regulations. T&B will issue invoices to the City when a refund and/or credit is seen on the bill or a check is sent to the City for the recovered amount. Further, Troy & Banks may also determine whether ongoing utility charges can be reduced by application of new rate schedules, rate options or other billing adjustments. The firm will work with the utility providers to implement the rate changes and other billing adjustments it identifies. CONFIDENTIAL and PROPRIETARY ATTACHMENT 1 Page 32 of 33 TROY & BANKS, INC . The fee paid to T&B is calculated as follows : Example: $10,000 refund check sent to the City of San Juan Capistrano from San Diego Gas & Electric for an incorrect service classification that T&B corrected. Troy & Banks will then invoice the City for $2,500 or 25% of the refund. 2 . Rea lize d Savin gs For future savings, to measure the savings on which payments will be made, the existing bill which will be under the new rate or tariff will be recalculated using the old rate or tariff; the difference between the bill under the new rate or tariff and the bill recalculated under the old rate or tariff shall be the savings. T&B shall identify supplemental incentive programs for which the City may be qualified for with current suppliers. Further, we will identify alternative utility services or providers which may result in cost savings; including the use of deregulated and open market providers. 3. Term of Agreement For any potential cost savings for electricity services resulting from T&B analysis, the fee of 25% of the amount saved each month for 12 months shall be paid to T&B. T&B will document actual monthly savings obtained by analysis of tariff cost applications. 4. Actual Scope of Services and Fees Included T&B also offers audits of gas, sewer/water, gross receipts tax, and cable franchise fees audits, as well as energy curtailment initiatives. The fees for these services may be negotiated at the time of agreement to perform the services. CONFIDENTIAL and PROPRIETARY ATTACHMENT 1 Page 33 of 33