Grosse Pointe Park hopes to find cost savings through utilities review

GROSSE POINTE PARK — Facing the same utility price increases as residents, Grosse Pointe Park officials are hoping to find some savings on their business costs.

The city will be contracting with Petoskey-based firm Tenurgy, which will analyze, audit and monitor the city’s operating and utility costs, including telecommunications, electricity and natural gas and material suppliers, in an effort to identify areas where the city could trim its expenses without impacting services. The company would also review previous bills, look at future bills and make recommendations for possible areas of savings.

Under the terms of a proposed agreement between Tenurgy and the Park, Tenurgy would conduct its studies and make recommendations over a 36-month period, but Tenurgy would not be authorized to make any of these changes themselves. During that three-year period, the city would agree to turn over 50% of any savings, refunds, reductions or credits realized as a result of Tenurgy’s analysis. Tenurgy doesn’t charge a fee for its services — it only recoups half of the savings during the contract period.

Tenurgy’s previous Grosse Pointe-based clients have included nonprofits such as The War Memorial and the Edsel and Eleanor Ford House, as well as Grosse Pointe City and the Grosse Pointe Public School System.

During a Feb. 2 Park City Council meeting, City Manager Nick Sizeland said the Park reached out to other entities that contracted with the company.

“They were very happy with Tenurgy,” Sizeland said.

Mayor Michele Hodges called this proposal “excellent.”

Park City Councilman Tim Kolar wondered about changes recommended by Tenurgy.

“What does the approval path look like?” Kolar asked.

Sizeland said Tenurgy “cannot make any decisions until they come back to (city) administration,” and administrators would seek council approval on any changes. The Park is under no obligation to make any of the changes that Tenurgy suggests.

“It’s something that can’t hurt us,” Sizeland said. “It’s only going to help us.”

The council voted unanimously in favor of entering into a three-year agreement with Tenurgy.