HomeMy WebLinkAboutAgenda Statement 1977/05/24 Item 14CITY OF CHULA VISTA • ITEM N0. 14
• ~ COUNCIL AGENDA STATEMENT
FOR MEETING OF: 5 2 4 7 7
ITEM TITLE: Resolution 8655 - Approving an Agreement with
Arthur Andersen and Company for Professional Services FII-~-0
~ o- A- ~
SUBMITTED BY~ Director of Public Works/City Engineer
ITEM EXPLANATION
Council appropriated $2,000 for consulting services to design an account-
ing system for Chula Vista Transit operations. The services should accom-
plish two major objectives:
o Establish a mechanism to apportion, document, and periodically
report the costs of operating the transit system.
o Develop a technique to relate the cost of operation to the
level-of-service being provided.
In December, 1976 three consultants with notable experience in transit
accounting were contacted to submit proposals for this project. Responses
were received from Peat, Marwick, Mitchell and Company and Arthur Andersen
and Company; Arthur Young and Company did not respond. There are many
other experienced accounting firms, but the invited firms were chosen
because of their specific expertise in transit accounting systems which
was considered to be an overriding qualification requirement.
At the time of the invitation for proposals, both responding consultants
indicated that they would not be able to perform a satisfactory job for
the budgeted amount ($2,000). They were each asked to prepare a proposal
with an appropriate scope of work, for minimum cost. The Arthur Andersen
and Company proposal addressed the issues properly for a proposed total
(con't on Supplemental Pg 2)
r•/1 IIf11Tn ATTA/11 Ir11
~~nirsi i ~ Hi i H~n~u
Agreement x Resolution x Ordinance Plat Other X
Arthur Andersen
Environmental Document: Attached Submitted on Proposal
STAFF RECOMMENDATION:
Adopt Resolution approving agreement with Arthur Andersen & Comp~n'4}
and authorizing the Mayor to execute the contract. ~
BOARD/ COMMISSION RECOMMENDATION
COUNCIL ACTION
~ g' O~~e Gtiti a'
4r,Q X03 G°~fi °~fiy
`~ Y yti~
_-~/°~-- _-7_~
Chula Visa, Caiiforliia
yti~ ~.
~.. /..
0~'
~~
9
Form A-113 (Rev 5-75)
•
Item No
supplemental
Page 2
cost of $4,400. The Peat, Marwick, Mitchell & Company proposal was
much less responsive to the request and had a total cost in excess of
$30,000. Arthur Andersen & Company was selected to perform the work,
contingent on the availability of funds, and both consultants were so
advised.
The proposed contract cost is $2,400 more than originally budgeted for
this project. The cost is, however, reasonable for the level of effort
required, while the budgeted amount ($2,000) would not yield a useful
end product. The Transit Division has sufficient funds in Object Account
5201 - Professional Services - to cover the cost because other antici-
pated services were not contracted.
In summary, it is considered that the project should be done as soon as
possible and that the Arthur Andersen & Company proposal is most respon-
sive to the City's needs and the available funds.
14
e~