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3.07 3.7 SERVICES\Cost Control Associates-Audit Utility and Telecom Bills-2-23-15 RESOLUTION AUTHORIZING ENGAGEMENT OF COST CONTROL ASSOCIATES, INC. TO AUDIT TOWN UTILITY AND/OR TELECOMMUNICATION BILLS RESOLUTION NO.: , 2015 INTRODUCED BY: WHO MOVED ITS ADOPTION SECONDED BY: WHEREAS, the Queensbury Town Board wishes to engage the services of a consultant to audit the Town's utility and/or telecommunication bills as previous audits have resulted in significant recovery of past over-billings as well as reductions in ongoing telecommunication/utility billings, and WHEREAS, in the past the Town Board engaged the services of Cost Control Associates, Inc., to perform these auditing services and was pleased with its services, and WHEREAS, Cost Control Associates, Inc., will be compensated for its services from refunds received by the Town and future utility savings, and WHEREAS, by Resolution No.: 57, 2015, the Town Board authorized engagement of the auditing services of cost Control Associates, Inc., on a 12 month basis but now wishes to authorize engagement of their services for a 36 month period to increase the Town's potential savings as set forth in the proposed Cost Reduction Agreement presented at this meeting, NOW, THEREFORE, BE IT RESOLVED, that the Queensbury Town Board hereby approves and authorizes engagement of the auditing services of Cost Control Associates, Inc., and further authorizes and directs the Town Supervisor to sign the Cost Reduction Agreement and Letter of Authorization substantially in the form presented at this meeting, as well as any other needed documentation, with the costs of the auditing services to be paid for from recovery of past telecommunication/utility over-billings as well as reductions in ongoing billings, and BE IT FURTHER, RESOLVED, that the Town Board further authorizes and directs the Town Supervisor, Budget Officer and/or Town Counsel to take any further action necessary to effectuate the terms of this Resolution. Duly adopted this 23rd day of February, 2015, by the following vote: AYES NOES ABSENT: cyst Control COST REDUCTION AGREEMENT- Assouales, Inc. GOVERNMENT PROGRAM This Agreement is made as of the last date signed below by and between -1-fe-1-f Town o F [f ee e sbtE v' , hereinafter referred to as CLIENT,and COST CONTROL ASSOCIATES, INC.,hereinafter referred to as CCA. I. SERVICES AVAILABLE Cost Recovery and Reduction Services: CCA will review energy and telecom service types as specified by CLIENT below for the purposes of obtaining refunds(whether by check or account credit)and identifying cost reductions. CCA will file claims,negotiate with suppliers,and implement CLIENT-approved cost-reducing changes. Such cost-reducing changes will be submitted in a report to CLIENT for CLIENT's review and approval. II. SERVICES SELECTED CCA will perform services as described above for CLIENT's energy and telecom services specified with a"yes"below: Please Indicate With a "Yes"Those Service Type hems Desired A. Electricity B. Natural Gas C. Propane, Oil, and Other Petroleum Fuels D. Water& Wastewater E. Waste Removal F. Telecom Local Services `(e S G. Telecom Long Distance Services YeS H. Cellular Phones &Devices I. Other(specify): III. FEES CLIENT will pay fees to CCA according to the following schedule: Accumulated Refunds and Cost Savings Fee Amount First $125,000 45% Next $125,000 42% Next $125,000 40% Next $125,000 38% Next $500,000 35% Over $1,000,000 30% This schedule will be applied to Findings, in a cumulative manner,with the first fee bracket being entirely satisfied before moving to the next bracket. Findings will consist of the following items: A. Refunds: Any refunds recovered due to CCA's efforts are subject to a one-time fee of each refund at the percentage indicated in the schedule above. This fee is payable after the refund check or credit is received by CLIENT; and Cost Reduction Agreement-Government Program,rev.01/12/13,Page 1 oft B. Client-approved Cost Reductions: For any cost reductions recommended by CCA and approved for implementation by CLIENT,CCA will share in the resulting savings at the percentage indicated in the schedule above for the first 36 months following implementation of the changes. This fee will be payable on a monthly basis, or CLIENT may elect to prepay the entire amount at a discount. Cost reduction recommendations implemented during the term of this Agreement and within 36 months thereafter are subject to this fee. IV.TERM: The initial term of this Agreement is one year. After the initial term,this Agreement will remain in effect on a month-to-month basis unless cancelled in writing by either party with at least 30 days written notice. Any fees due CCA,as indicated in Section III above,will continue to be payable,regardless of cancellation or expiration of this Agreement, for findings in process at the time of cancellation or expiration of this Agreement. Findings in process include refunds identified,but not yet collected; cost reductions implemented, but for which all fees have not yet been billed; and cost reductions identified, but not yet implemented in the event they are implemented. V. OTHER A. Except as noted on a referenced attachment to this Agreement,CLIENT is not currently working on pursuing refunds or implementing cost reduction items. If CLIENT becomes aware of a refund or cost reduction opportunity other than through CCA's efforts,which CLIENT elects to pursue on its own,CLIENT agrees to notify CCA in writing upon CLIENT'S discovery of the item. SEE ATTACHMENT IF CHECKED B. CLIENT will cooperate with CCA by signing letters of authority to energy and telecom suppliers, supplying copies of appropriate bills, completing forms and providing other documentation and information during the term of this Agreement and for a period of 36 months after this Agreement expires. CCA should work directly with vendors to effectively collect refunds and implement CLIENT-approved cost reduction items. If CLIENT chooses to pursue a refund or implement a cost reduction item that was recommended by CCA on its own,or should a refund or cost reduction item based on an issue identified by CCA become available to CLIENT based on actions of third parties, CCA is still entitled to its Fees. C. CCA is permitted by CLIENT to use specialists on a subcontract basis in the performance of the work in this Agreement at no additional cost to CLIENT in the event that CCA deems the use of such specialists to be beneficial. D. Fees are payable to CCA within 30 days of date invoiced. Late fees are payable on invoices more than 10 days past due at the rate of 1.5%per month. E. This is the entire Agreement between the parties. F. In the unlikely event of any disputes,the parties will attempt to settle the dispute among themselves. If unsuccessful, the dispute will be submitted to the American Arbitration Association in Albany,New York. The award of the arbitrator will include costs and reasonable attorneys' fees to the prevailing party. CLIENT by: Signature Date Strou qh SipeNiw J Print Name Title CCA by: Signature Date Print Name Title Cost Reduction Agreement-Government Program,rev.01/12/13,Page 2 of 2 • Date: LETTER OF AUTHORIZATION To Whom It May Concern: Cost Control Associates has been engaged to review our utility and/or telecom bills. This letter authorizes Cost Control Associates to act as an agent and consultant on our behalf in all matters pertaining to our utility and/or telecom bills including access to billing records, equipment records, service records (including a breakdown of charges per line), and any other information deemed necessary, including regional toll and long distance carrier PIC information. Responses to requests for information or refunds should be made in writing as directed by Cost Control Associates. Cost Control Associates is authorized to execute changes in rates, meters, services,private area lighting, street lighting, and other changes. Cost Control Associates is also authorized to request refunds and approve resolution of requested refunds. This authorization will remain in effect for a period of one year from the above date. If you have any questions about this authorization,please contact me. Sincerely, Signature k' Slim ugh Name (Printed) TOE Su° J,S6 r Title