REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Eric G. Parra, Interim City Manager
VIA: Travis K. Hopkins, Assistant City Manager
PREPARED BY: Catherine Jun, Deputy City Manager
Subject:
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Approve and authorize execution of a service agreement between the City of Huntington Beach and Procure America for expense reduction and cost recovery services
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Statement of Issue:
Under this service agreement, Procure America will audit several categories of the City's business-related expenses to recommend potential opportunities for cost savings or revenue generation. Upon review, the City Manager may choose to approve any (or none) of the recommendations and direct Procure America to realize savings on behalf of the City.
Financial Impact:
There is no direct cost for Procure America to prepare its initial audit and recommendations. If the City Manager authorizes Procure America to implement one or more recommendations, any savings or revenue will be split 70/30 (City/Procure America) for a limited duration of 12-60 months, depending on the level of services requested from Procure America. After that term, the City will be entitled to the entirety of those savings.
Recommended Action:
recommendation
Approve and authorize the Mayor and City Clerk to execute a "Service Agreement Between the City of Huntington Beach and Procure America for Expense Reduction and Cost Recovery Services."
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Alternative Action(s):
Do not approve the recommended action, and direct staff accordingly.
Analysis:
Procure America, headquartered in Orange County, specializes in cost reduction services for public sector organizations such as municipalities, counties, and special districts. Procure America proposes a no-cost audit of the following four categories: utilities, telecommunications, treasury services, and shipping and logistics. Utilizing subject matter experts to audit these categories, Procure Ameri...
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