Traverse City Record-Eagle

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September 19, 2012

Consultant to create Light and Power overview

Audit will examine efficiency and ways to cut costs

TRAVERSE CITY — Officials expect that a consultant chosen to conduct an operations audit of Traverse City Light & Power will take about three months to complete the work.

City commissioners this week agreed with a task force recommendation to pick Hometown Connections International, LLC to complete a management and operations study of the city utility. Final contract details with the Colorado-based firm will be negotiated by city Manager Ben Bifoss and Light & Power Executive Director Ed Rice.

The Light & Power board already authorized payment up to $92,500 for the audit, which will examine the utility's efficiency and consider ways to cut costs.

Mayor Michael Estes suggested the evaluation, and the city commission supported the plan. The Traverse Bay Economic Development Corp. and a task force made up of city, utility and other representatives developed the study's scope and recommended Hometown Connections from the four responses.

That approach created an "independent" process for selecting a firm, said utility board Chairman Patrick McGuire. Light & Power will enter into the contract with Hometown, and work could begin in November if details are finalized. The firm will provide a draft version of its findings and report back to Light & Power and the city commission.

McGuire said it will be the job of the utility staff and board to act on the recommendations.

"I think we have to respond on a point-by-point basis," he said.

Doug Luciani, president and CEO of the Traverse City Area Chamber of Commerce, said the task force was unanimous in its support of the chosen firm. Hometown Connections has experience in west Michigan and has completed hundreds of similar audits for municipal utilities, he said.

"Every member of the task force agreed that this was a clear No. 1 choice," he said.

The EDC is a chamber subsidiary.

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