HomeMy WebLinkAboutAgenda Statement 1976/02/10 Item 05
CITY OF CHULA VISTA
COUNCIL AGENDA STATEMENT
ITEM NO
FOR MEETING OF: 2/10/76
ITEM TITLE: RESOLUTION #8052 :Appropriating Funds far Adjustment to 1974-1975
Agreement with Aztec Bus Lines
SUBMITTED BY~ Director of Public Works/City Engineer ~,)
ITEM EXPLANATION:
Each year, during the month of March, the City submits its upcoming fiscal
year's Local Transportation Fund (LTF) request to the Comprehensive Planning
Organization. This request is only an estimate of the yearly expenses. The
final LTF payment is then made at the end of the fiscal year based upon
actual revenues and expenses which are supported by an audited financial
statement.
A large part of Chula Vista's LTF claim is for service provided by Aztec
Bus Lines. This service is provided through an agreement between the City
and Aztec. The projected costs for this agreement are provided by Aztec
each year in time for the March submission of the City's annual LTF claim.
Aztec's agreement for FY1974-75 provided for payment by the City to Aztec of
$140,822, and this amount was reflected in the LTF claim. In a letter dated
January 15, 1975, Aztec Bus Lines requested a revision to their FY1974-75
contract. The requested revision was to meet unforeseen fuel, parts, and
labor expenses for the period from July 1, 1974 to June 30, 1975.
At the time of their request for additional funds in January, 1975, Aztec's
additional expenses could only be partially certified, with the remainder
being forecast. In response to the Aztec letter, staff requested a
certified public financial statement to substantiate the claim for additional
(continued on supplemental page 2)
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Agreement Resolution X Ordinance Plat Other
Environmental Document. Attached Submitted on
STAFF RECOMMENDATION:
Council authorize an additional payment of $24,614 to Aztec Bus Lines to
cover unanticipated costs during FY1974-75. Council appropriate $24,614
in Account No. 22-1720-5271.
BOARD/ COMMISSION RECOMMENDATION
APPR 0 4~ P
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City C`~~-_~ ~~~.?
COUNCIL ACTION G
Chula v iU~-a, C~.? 1 ~~c ~.~_:; a
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Dated..,... ,~~.~d .~
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~~Y Form A-113 (Rev. 5-75)
Agenda Item No. 5
Supplemental, page 2
expenses. Aztec elected to wait until the end of the fiscal year to
submit a statement, at which time their public accountant could
make a certified statement for the entire 1974-75 fiscal year.
At the end of FY1974-75, Aztec's FY1974-75 certified financial statements,
endorsed by the City, were forwarded to CPO to enable CPO to make the
final FY74-75 payment determination. The certified statement showed a
$24,614 deficit. Using these certified statements, the CPO Board of
Directors approved Chula Vista's FY1974-75 LTF claim on December 15,
1975. The City received final payment on the 1974-75 claim in January,
1976.
Included in this final payment was $24,614 for a supplemental payment
to Aztec Bus Lines to cover the cost of increased operating costs
during the period from July 1, 1974 to June 30, 1975.
Since the bus service agreement is between the City and Aztec, the City
must decide if all or part of the extra payment is justified, and a
Council resolution appropriating the amount of City approved payment is
required. That portion, if any, of the $24,614 LTF allocation which is
not paid to Aztec must be returned to the LTF fund through CPO.
In staff opinion, the additional payment to Aztec Bus Lines is justified.
Our review of their financial statement indicates that due to large
fuel price increases in FY74-75 and other inflationary factors, that
the operating costs were considerably in excess of the estimated cost
for that year upon which the LTF claim was made.
FINANCIAL STATEMENT:
There is presently $24,614 allocated from LTF funds in the unappropriated
balance of Bus Service Fund 22. If Council approves the additional
payment to Aztec, an appropriation of $24,614 is required in Account
22-1720-5271 to make this payment.
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Form No. F-229
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CERTIFICATE CF CITY/DIRECTOR OF FINANCE
Certification of. Unappl-opriated Balance
I HERBY CEP,TIEY tl.at the money required for the
appropriation of funds for the purpose set forth i:i the attaches.
resolution is available in thc: Treasury, or is anticipated }o
come into the Treasury, and is otherwise unappropriated.
Amount 524,614.00 rand Bus Service Operation
Purpose Adjustment to 1974-75 Agreement with Aztec Bus Lines _
Eidder N/A
2-1720-5271 ,~ ~ 7~. •~/~~~~(. ,
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Director cf FinncL
The City of Chula vista
Date February 5, 1976 By
Certification of Unencumbered 3alarce
I i-iF:REBY CEkTIFY that *he indebtedness and :;b1i:,atian
to be incurred by the contract or agreamont authorized ~ja thF:
attached resolution can be incurred s,~itraut the vialatior. of fr_y
cf the provisions of the Ch«rter of t',-ie City cf Chula Vista, or
t?~.e CariStltutli~n ar the laws Of t',e Statevf C3'_ifGrriia, tl"ia"~.
sufficient monies have been appropriated for file pupos~~> of 3air::
contract, that sufficie:~t monies to meet the ablig<3tians of th.`
contract are actually in the Treasury, or ars anticipate' to ro,-~,~
into the Treasury to the credit of the a~,propriatian from ,phi c'r:
the same are to be drawn, and that sair monies nc~•~ actually in
the Treasury, togetizer witi: the monies anticipated to coma into
t?^.fi Treasury, to the credit of said appropriation are Gtherw~.s~
~.;nencartbered.
F,mount Not to Exceed $
Director of ~`irarce
il.e City of Chula Vi s~ca.
Date
F~;.nd
By
Dept./Activity
Purpose
Bidder
uc~t:.L•iC.wtE NCB. 68
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