municipal revenue enhancement - Maruleng Local …

1 MOPANI DISTRICT SUPPLY CHAIN MANAGEMENT UNIT _____ TENDER INFORMATION TENDER TITLE municipal revenue enhancement TENDER NUMBER MLM/SCM/08/2011 ADVERT DATE 29 APRIL 2011 CLOSING DATE 20 MAY 2011 TENDERER INFORMATION COMPANY NAME COMPANY REGISTRATION NUMBER TENDER PRICE MOPANI DISTRICT SUPPLY CHAIN MANAGEMENT UNIT NOTICE NO: MLM/08/2011 municipal revenue enhancement Interested companies are invited to submit tender proposals for municipal revenue enhancement trough municipal customer Data Cleansing; Meter Reading, and Debt Management for Maruleng municipality.

2 Terms of reference are obtainable from finance department from the 3RD MAY 2011, 64 Springbok Street, Hoedspruit, upon payment of non-refundable fee of Cheques made to Maruleng municipality will not be accepted. Tenders sealed in an envelope clearly marked municipal revenue enhancement should be placed in the tender box at Maruleng municipality budget and treasury office. The following documents should be attached with the proposal submission: Company registration certificate Valid Tax Clearance Company Profile Track record Proof of payment for purchase of tender document CLOSING DATE FOR THE SUBMISSION OF TENDERS IS 20 MAY 2011 AT 12:H00.

3 LATE OR INCOMPLETE TENDERS WILL NOT BE CONSIDERED AND ACCEPTED. Enquiries should be directed to Mrs RM Ngoveni or Mr. K R Phiri at 015 793 2409 during office hours (07h00-16H00) RJ RAMOTHWALA municipal MANAGER Terms of Reference of request for Proposal for revenue enhancement Data Cleansing Electronic/Automated Water Meter Reading or Prepaid Water Metering Pilot Debt Management 1. Background Maruleng Municipality intends to enter into a service level agreement with a service provider for the provision of revenue enhancement solutions in the form of data cleansing, electronic or automated meter reading, and debt management projects, and as such the terms of reference are arranged in order to have a collaborative, coordinated and integrated implementation of their powers and functions as provided for in the municipal Systems Act 32 of 2000.

4 Maruleng Municipality Debtor Database has challenges with a section of the database with regard to old personal information and incomplete information and as such it creates challenges for the municipality to effectively manage some of these accounts. The appointed service provider will assist the Municipality with improving this situation as part of the Municipality s revenue enhancement Strategy. 2. Purpose The purpose of the terms of reference is to map out the requirements of the project by the Municipality. The project is aimed at assisting Maruleng Municipality with regards to data cleansing in order to determine the collectable and uncollectable amount and proposals for write-off where necessary; through ensuring that the municipality has a reliable revenue data, and can improve efficiencies in collecting water meter data through automated systems and subsequent billing in order to enhance the level of services offered to its customers.

5 3. Functions While the present data is reasonably well-arranged and managed, the expansion of debtor listing to all the areas under the Municipality s jurisdiction requires a clear set of rules and procedures in relation to naming convections (farms, suburbs, and extensions), debtor groupings, and data loading authority levels to protect the data purity. One specific area where improvements can be made is the current land valuations. All accounts linked to farm properties with no land valuation need to be rectified where necessary.

6 This includes accounts linked to properties currently under the administration of national or provincial government departments. This could potentially increase revenue of the municipal property rates. An associated activity is the review and correction of the owner/tenant indicator to ensure that all owner accounts are linked to the valuation roll and associated assessment rates tariffs. 4. Services required The following are services required to be provided to the municipality in the area of revenue enhancement : Customer Data Cleansing The scope of work to be undertaken is as follows: Comprehensive data cleansing of all farm properties to ensure billing integrity o Total number of farms: 114 o Valuable properties: 1 124 o Non valuable properties.

7 129 Debtor information and debtor classification Debt book clean up Improve billing accuracy Investigate all debtors by type and reclassify debtors that are incorrectly identified on the billing system Verify account status (active/inactive) and include as reporting indicator Obtain tile Deed information per property Reflect arrears per account according to ageing and by service Investigate all accounts which appear to have incorrect billing, tenant accounts with assessment rates Correctly categorise each account according to the correct and responsible debtor Produce account reconciliations for each account Consolidation of duplicated customer profile/accounts The current payment levels for farms is 28 % Automated meter reading Maruleng Municipality expects that the automated system will serve as a vital tool for achieving its vision as it moves forward.

8 The system is expected to further enhance the opportunity to improve revenue management through information technology which will: Provide the municipality s customers with timely water consumption information, in order to control water usage and costs. Significantly enhance services to the municipal customers, including billing accuracy, faster customer responses and more efficient customer service, on-demand move-in / move-out remote meter reads and improved reliability Improve the Municipality s operational efficiency and reduce costs through reliable interval data from water meter reads for right-sizing programmes, prompt notification of leaks, tampering, etc.

9 Assist the Municipality to achieve its goal of efficiency and concern for the environment by providing the infrastructure to support the municipality in its programme of water conservation Therefore, the municipality wishes to implement a pilot programme to determine proof of concept of the automated metering systems. The pilot will be implemented in order to determine the viability and functionality of the automated systems and provide a basis for a phased-in roll-out in all properties where water is supplied. The financing model will form part of this bid submission.

10 The number of properties with water meters is 403 Debt Management The debt management intervention must ensure that the following objectives are achieved through this project: Updating of customer information with ease Adding of new customers to the system with a record of their deposits and other registration requirements, and Changing and alternating customer status between regular and indigent, thus instituting credit control measures promptly Managing the revenue environment through regular reports and updates on income received per area and service for the monitoring of revenue Managing customer queries by keeping records of complaints and the response that was provided with dates and times.