TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: Utility Audit Contract Extension
ACTION ITEM
RECOMMENDED ACTION(S):
Title
Consider authorizing a one-year extension of the contract with Eric Ryan Corporation (ERC) for utility auditing consulting services through April 8, 2022.
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
Maintain Financial Stability and Resiliency by auditing utility bills and collecting Low Carbon Fuel Standard (LCFS) revenue. The LCFS program is a carbon-intensity reduction incentive program managed by the California Air Resource Board (CARB).
BUDGETARY/FISCAL IMPACT:
To date, the contract has saved the District over $300,000 in utility audits and collected over $100,000 in LCFS revenue. Consultant's portion is payment retained as a commission of 20% of the total savings. For the coming year, staff does not expect as much savings in utility auditing since most of the savings to date represent corrections to past over-billings; however, staff estimates close to $370,000 to be collected in LCFS revenue due to increases in zero-emission bus (ZEB) fleet and mileage.
BACKGROUND/RATIONALE:
The purpose of this contract is to save on utility expenses upon which the District relies, including telephone/data services, water/waste, and electric and fuel sources (including clean energy sources such as solar and hydrogen). ERC and subconsultant, SRECTrade (a LCFS broker), coordinate on the District's behalf with utility companies and utility oversight agencies.
After receiving Board approval to solicit utility auditing services in May 2018, Finance staff reviewed several qualifying proposals and, with Board approval in February 2019, engaged Eric Ryan Corporation (ERC) to audit the District's billings and assess opportunities for savings.
Staff is pleased with the services provided by ERC and subconsultant and recommends ...
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