HomeMy WebLinkAboutE-12 Staff Report Procure America Revenue ShareCONSENT ITEM
E-12
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: TROY L. BUTZLAFF, ICMA-CM, CITY MANAGER
FROM: ANN GRAF, DIRECTOR OF INFORMATION TECHNOLOGY AND LIBRARY
SERVICES
DATE: MARCH 6, 2017
SUBJECT: REQUEST TO APPROVE THREE YEAR REVENUE SHARING ARRANGEMENT
WITH PROCURE AMERICA
SUMMARY:
In May of 2016, the City entered into a contingent fee audit with Procure America to conduct an in
depth analysis of its telephone bills. Although there were no up-front costs associated with this audit, the
City agreed to share 50% of the actual realized savings with the company if their findings were
implemented. Based on the audit, the City has the potential to save approximately $29,166 annually.
The proposed action approves a three year revenue share with Procure America at 50% of the actual
realized savings from Frontier Communications.
RECOMMENDATION:
Staff recommends that the City Council take the following action:
1) Approve a three year revenue sharing arrangement with Procure America at 50% of the
actual realized savings for telephone services from Frontier Communications.
DISCUSSION:
The City contracts with Frontier Communications (formerly Verizon) for telephone services. In looking
at ways to reduce on-going costs, the City retained Procure America to conduct an in depth analysis and
audit of our telephone bills. Through a deep forensic review Procure America was able to uncover
unused or unneeded services, billing errors, and areas of savings going forward, including an
opportunity to renegotiate a contract with Frontier Communications. This potentially will save the City
approximately $29,166 annually, with the revenue share the savings to the City will be $14,583. The
three year revenue share will be paid as the savings are realized.
APPROVED
COUNCIL MEETING
3/6/2017
Approve Revenue Sharing with Procure America
March 6, 2017
Page 2
FISCAL IMPACT:
Based on the implementation of the audit findings, there is an opportunity to save approximately
$29,166 annually. After sharing the savings with Procure America, the City should realize a savings of
$14,583 a year.
Prepared by: Fiscal Impact Reviewed by:
Ann Graf Talika M. Johnson
Director of Information Technology Director of Finance
and Library Services
Reviewed and Approved: Reviewed and Approved:
Louie F. Lacasella Troy L. Butzlaff, ICMA-CM
Management Analyst City Manager