HomeMy WebLinkAboutAgenda Statement 1974/12/10 Item 18AGENDA I'~EM~Nd. [
CHULA VISTA CITY COUNCIL MEETING OF: December 10, 1974
ITEM TITLE: Resolution - Approving Contract with the Chula Vista Sanitary
SerVlce. for billing services
INITIATED BY: Director Of Flndnce
BACKGROUND
On August 27, 1974, the City Council authorized a contract between the City
of Chula Vista and the Chula Vista Sanitary Service for data processing
services. An initial implementation charge of $5,587.50 will be paid
by the Chula Vista Sanitary Service for design and programming of the
billing system. On-going charges of approximately $2,980.15 will be
charged by the City of Chula Vista on a monthly basis for all processing.',.
The scope of services is to provide a full billing system and to supply
this system on behalf of the Chula Vista Sanitary Service under provisions
of a three-year contract.
Exhibit I
Exhibit II
ATTACHED
Data Processing Service Agreement
Initial proposal approved by the City Council on
August 27, 1974.
Resolution [X]
Financial Statement:
N/A
Commission-Board Recommendation:
N/A
Department Head Recommendation:
Recommends Approval
City Manager Recommendation:
Concur
18 ]
Ordinance [ ] Agreement ~ ] ' Plat [ ]
See EXHIBITS [x] INo• 1-2-3
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T;YHIBTT II AGENUA ITEM N0. [ ]
CHULA VISTA CITY COUNCIL h1EETING OF: AUgust 27, 174'•
. .. F.~i~~BIT
• ITGM TITLE: Report - Proposal for the Implementation and Processing A
of the Chula Vista Sanitary Service Billing System' L
INITIATED BY: Director of Finance EXHIBIT
BACKGROU"7D
Mr. Dick Chase, owner of the Chula Vista Sanitary Service, made ij~quiries
to the City Manager's Office concerning the possibility of the Cii;y of Chula
Vista processing his company's billings.- The City Manager then dtirected the
Finance Department to perform a study as to the feasibility of implementing
a billing system for the Chula Vista Sanitary Service. ~,
The Chula Vista Sanitary Service is currently .processing through ~n
agency which instituted a 50°:• increase on their current billing s~stem.
Our initial study shows that the City of Chula Vista can not onlylpro-
• vide the required service at a substantial savings to the Sanitary Service,
but also utilize available computer time to defray fixed costs.
Exhibit I Brief of proposal to be submitted to the
Chula Vista Sanitary Service
Exhibit II Cost justification of providing a billing
• system to the Ctiula Vista Sanitary Service •
Exhibit III Opinion of the City Attorney on the legality
of providing this service to private enterprise;
ATTACHED: Resolution [ J Ordinance [ ] Agreement '[ ] Plat [ ]
See EXHIBIITS [X] No. 1 ,2,3
Financial Statement: N/A
Commission-Board Recommendation: N/A
Department Head Recommendation:
It would be advantayeous for the City of Chula Vista to pursue thy' possibility
of processing the Chula Vista Sanitary Service billing system. Iru addition
to recovering 28" of the cost of the Data Services Section, many b,'asic billing
systems could be designed with minor modifications. Eventually, the City of
Chula Vista will utilize the computer facilities to its full exten~,t. However,
in the interim period, contractual agreements with outside agencieis make
' sound economic sense.
City Manager• Recommendation:
A-113(Rev.10/72)
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Exhibit I
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City o~ ~Glu~a ~J~sta
CALIFORNIA ',
July 22, 1974
Mr. Dick Chase
Chula Vista Sanitary Service
311 F. Street
Chula Vista, California
Dear Mr. Chase:
We are most pleased to have the opportunity of submitting our proposal
to you for the implementation and processing of the Chula Vista Sanitary
Services billing system. In arriving at what we believe to be a reason-
able bid for the system, we have made the following assumptions:
1. Bank of America will provide a tape containing all current master
billing information.
2. City of Chula Vista Data Processing will design and develop
programs to handle billing.
3. City of Chula Vista Data Processing will be responsible for key-
punching, updating, reporting and billing for Chula Vista Sanitary
Service.
If the assumptions listed are true, the City of Chula Vista Data Processing
Department will complete the system in five man weeks. -
Upon approval of this proposal, a complete study of the current system being
used by the Chula Vista Sanitary Service will .be done in order to complete
a new system specified by the Chula Vista Sanitary Service. The new deign
will enable Chula Vista Sanitary Service to encompass new ideas into a chew
bi 11 i ny system.
The system completion schedule will be determined by the priorities
established by the Chula Vista Sanitary Service.
Exftibit T
Page 2 of 6
Chula Vista Sanitary Service
Proposed System Narrative
Utilizing the proposed billing form, manual labor is cut to a minimum
on mailing and receiving bills. Since a tab card (pre-punched) is used,
only the exceptions need to be handled. For example, the pre-punched caird
number 123 is billed to Mrs. Jones. The computer puts the number 123 irk
Mrs. Jones's record as the bill is printed. When the bill is returned ',
and the billed amount and check amount are verified, the tab card is re-
inputted into the system and when bill number 123 is found, the amount
billed is then transferred to the amount paid (Received) automatically..',
This update occurs daily and reports are generated showing the activity!
against the master billing file.
This is the basic narrative explained in the simplest terms of how the
proposed system would work. When a detailed design is complete, it will)
show the exact method of updating and reporting. ',
Exhibit I
Page 3 of 6 .
ATTACHMENT A
Initial Project to Implement Biding System
. System Study and Design
Approximately 40 hours @ $22.50 per hour $ 900.Op
Program Development
' Approximately 250 hours @ $18.75 per hour 4,687.Sp
Includes Documentation and Computer Time
Total Initial Cost $ 5,587.Sb
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Exhibit I
Page 4 of 6~
ATTACHMENT B
On-Going Processing. .
Keypunch
Utilizing an average of 125,000 transactions per year
and allowing 5% needing keypunch effort
520 cards per month @ .02 per transaction $ 10.4Q
Includes adds, deletes and changes
Computer Processing
Update Master File @ .28 per transaction
Includes all required reports
Approximately 10,420 transactions per month 2,917.64
Estimated processing cost per month 2,928
Estimated processing cost per year $35,136.Op
All costs were estimated using figures regarding transactions and
billing supplied by the Chula Vista Sanitary Service. .
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Exhibit I
page 5 of 6
During the intervening time, that is, between program start and im~le-
mentation, Chula Vista Data Processing will hold status meetings with
Chula Vista Sanitary Service personnel in order to maintain effective
communication and control of the system's progress.
This proposal is based on figures supplied by Chula Vista Sanitary
Service and it is understood that the transaction charges may vary
according to the number of transactions submitted.
Chula Vista Sanitary Service
311 F. Street
Chula Vista, California 92010
. BY ~ '~
TITLE
DATE
City of Chula Vista Data Processing
276 4th Avenue
Chula Vista, California 92010
BY
TITLE
DATE
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.Exhibit I
Page 6 of 6
Conclusion
In conclusion, the City of Chula Vista would like to thank Chula Vista ',
Sanitary Service for the opportunity of quoting this system.
We hope we have shown your firm that we have the ability, flexibility
and latitude to adjust our services to accommodate your needs.
If we can be of any further assistance, please do not hesitate to call. .
Exhibit II
~lustification for Handling Billing System
Currently, the City of Chula Vista Data Systems Section operates (8) eight
hours per day. The average computer usage is (4) hours per day and
average billing to outside vendors is $500.00 per month. .By adding the
sanitation billing system to our current work, an additional 28q of cost
can be recovered on a yearly basis.
Capital Outlay
In order to implement the billing system, a front end cost of approximately ~',
$10,000.00 wi17 be required to purchase forms for re-sale to the sanitation
company. With the form being generalized, it can also be used for other
outside services such as water departments, other sanitation services, etc.
The initial outlay of $10,000 will be recovered within the first six months ',
of operation. Utilizing the basic billing system design, the following
systems can be created with minor modifications:
1. Dog License System ~ ',
2. Business License System
3. Library System
4. Other Billing Type Applications
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Exhibit-III
• .~ .
• ~ . -.
. .
', DATE: August 6, 1974 •
.•
T0: Gordon K. Grant, Director of Finance
~M= George D. Lindberg, City Attorney
SUBJECT; Provision of Complete Billing System by the
I~ City of Chula Vista for Chula Vista Sanitar
Service Y
Your memo of.July 26, 1974 requests an opinion as to whether
or not the City of Chula Vista may legally enter into a con-
tractual arrangement with the Chula Vista Sani '
to provide a complete billing system utilizingtthe City'se
computer services.
This office sees no objection whatsoever to•providing such
a service on the same cost basis as we have been and will
in the future be providing for other operations.
In the instance of the Chula Vista Sanitary Service,, in fact
it is to the advantage of the City to be able to insure the ~
.reduction of service costs to the citizens of the City through
su h'assistance so long as it does not add additional costs to
~t~taxpayers. ',
•r
GDL:lgk
Ca: City Manager
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