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Council approves performance contract with Water Company of America to audit utility billing
Summary
Nacogdoches approved a performance-based contract with Water Company of America to audit utility billing for water, wastewater and solid-waste services with no upfront cost. WCA described a revenue-share model (50% of increased revenue for 48 months per finding) and said most recoveries come from commercial accounts; the council approved the contract unanimously.
The Nacogdoches City Council on June 16 approved a contract with Water Company of America to perform an audit and examination of the city’s utility billing, meter and customer-account data to identify and correct errors that may be causing lost revenue.
Assistant Finance Director Kevin Sardini told council the contract is designed to enhance revenue capture with no upfront cost to the city; WCA will be paid from a share of any increased revenue discovered. Shane Sangali of Water Company of America described the firm’s work as a deep dive into billing data and field verification, saying they usually physically verify roughly 1–2% of accounts and that the firm has operated for more than 35 years.
On compensation, a WCA representative said the program is performance-based and "50% for 48 months" — 50% of the increased revenue for a 48-month period for each finding — and that the payment period starts per find. Councilors asked whether customers would receive refunds if WCA found overbilling; Shane Sangali said he would submit any such finding to the utility billing office, and it would be the utility’s responsibility to decide how to handle corrections and refunds.
Councilors also discussed common sources of lost revenue, including incorrect meter sizes, rate codes and unmetered hydrant tapping. Staff said some hydrant-tapping issues had already been identified and addressed internally. After discussion, the council moved to approve the contract; the motion carried unanimously.
