Council action is requested to enter into negotiation of a contract with DKMT Consulting LLC for a Cost-Benefit Analysis Report of the Power & Light Department.

Council approval to negotiate a contract.

Staff was tasked with the initiative to solicit consultants to perform a comprehensive Cost/Benefit Analysis of the potential sale of the Power & Light Department (IPL). The purpose is to evaluate the potential gain to the city, the future impact to the city’s operating budget and also consider if it’s in the City’s best interest to continue retaining the services of IPL as a City department.

The Procurement Division issued a Request for Qualifications (RFQ), #23056, on June 16, 2023. The RFQ was publicly available using the website of Public Purchase, which is the website the city uses for soliciting bids and proposals. Fifty-nine (59) firms were notified and eighteen (18) downloaded the RFQ. The RFQ closed on July 7, 2023, with two firms, DKMT Consulting LLC and NewGen Strategies & Solutions, LLC.

Two firms, DKMT Inc and NewGen Strategies & Solutions LLC submitted responses. DKMT was evaluated as the most qualified. DKMT has been selected to develop a comprehensive evaluation of the costs and benefits associated with the continued ownership and operation of a municipal utility and the impact to the residents and to the city’s operating budget of a potential sale of the utility. With Council approval, staff will enter into negotiations with DKMT to develop a scope of work and contract terms.

The fiscal impact to the City is $100,000.00. Funding for the Cost-Benefit Analysis Report Initiative was included in the 2022-2023 adopted budget, page 226, account number 6110-5226, Administration - Professional Services, IPL Fund 20.