HomeMy WebLinkAboutAgenda Statement 1981/07/07 Item 10. COUNCIL AGENDA STATEMENT
Item 10
Meeting Date 7-7-81
ITEM TITLE: Resolution /(~„~3 ~ Approving Agreement with Chula Vista Sanitary Service
for the Provision of Data Processing Services
SUBMITTED BY: Director of Policy Analysis and I~ (4/5ths Vote: Yes NoX )
Program Evaluation JI
The Data Processing Division has provided data processing services for Chula Vista Sanitary
Service since 1974. In November of 1980, I negotiated new rates of charge and new
contract language with representatives of Chula Vista Sanitary Service. The new
rates of charge have been in effect since December 1, 1980, but the Sanitary Service
needed corporate approval before signing the new contract and that approval has
just been received.
RECOMMENDATION: That Council:
1. Adopt the resolution approving the agreement.
BOARD/COMMISSION RECOMMENDATION: Not Applicable.
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The major data processing service the City provides the Sanitary Service is the prepara-
tion of billing statements for the Service's and Sani-Tanner's 30,000 County-wide
customers. The Sanitary Service is currently our largest data processing account
among the outside users.
Prior to the December 1, 1980 increase in the rates charged to the Sanitary Service,
the City's annual charges totaled about $23,200. After the City's December 1980
rate increase, the annual revenue from the Sanitary Service has increased to an
estimated $33,600. The rate increase has thus amounted to approximately 45% above
the rates that had been in effect from 1974 through 1980.
The new contract would be effective for an indefinite period, The
contract includes provisions for administratively adjusting the rates on
an annual basis without the necessity of formally changing the contract.
FISCAL IMPACT
The annual revenue to the City from this contract is estimated to be $33,600. The
annual direct cost to the City in providing the contractual services is estimated to
be $9,100. Thus, the contract should provide net revenue of approximately $24,500
as the Sanitary Service's share of the fixed costs of the Data Processing Division.
JT:Im
Form A-113 (Rev. 11/79)
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