The Public Service Commission generally recommends investigation if water usage not billed exceeds 15 percent. A similar comment was made by the city s auditor during their annual audit. The city has not performed a formal review of the adequacy of the water and sewer rates since 1994. The city contracts with an independent contractor for management services for the Neosho golf course. The City Manager indicated that bids have not been solicited by the city for these services.
State law requires contracts of political subdivisions be in writing.
The city should enter into written contracts for services rendered or obtained. A written contract, signed by the parties involved, should specify the services to be rendered and the manner and amount of compensation to be paid. Change orders are normally used to make adjustments for minor problems that are unknown when construction projects are originally bid. They should not be used to make significant changes to existing contracts. The city should ensure that all aspects of the projects are adequately bid.