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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From: Barbara Pachon,
Director of Finance
ORIGINAL
Subject: Resolution of the City of San Bernardino
authorizing a Purchase Order in the
amount of$53,265 to Bureau Veritas
for inventory and valuation of the City's
infrastructure assets including depreciation
schedules to meet the financial reporting
requirements of GASB 34.
Dept: Finance
Date: May I, 2006
Synopsis of Previous Council actiou:
No previous council action
Recommended motiou:
Adopt resolution
~~c/BL
Signature
Contact person:
Barbara Pachon. Director of Finance
Phone:
ext. 5242
Supporting data attached:
Staff Reoort
Ward:
All
FUNDING REQUIREMENTS: Amount:
$53.265
Source:
001-092-5502
Finance:
Council Notes:
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Agenda Item No. --18
s/'/oVJ
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
ST M'F REPORT
Subiect:
Resolution of the City of San Bernardino authorizing a Purchase Order in the amount of
$53,265 to Bureau Veritas for inventory and valuation of the City's infrastructure assets
including depreciation schedules to meet the financial reporting requirements of
Governmental Accounting Standards Board Statement No. 34 (GASB 34).
Background:
In June 1999, the Governmental Accounting Standards Board (GASB), which sets
financial reporting rules and requirements for all state and local governments,
established a new framework for financial reporting. This new framework represented
the biggest single change in the history of governmental accounting. These changes,
which are collectively known as GASB Statement 34: Basic Financial Statement - and
Management Discussion and Analysis - for State and Local Governments, were
designed to be implemented in phases with full implementation required to be done by
June 30; 2006. The City of San Bernardino has implemented all phases of GASB 34
except for the retroactive infrastructure reporting requirements of GASB 34.
For GASB 34, infrastructure assets are defined as long-lived capital assets that are
normally stationary in nature and are used by government in providing services.
Examples of infrastructure assets include roads, bridges, tunnels, drainage systems,
traffic signals and lighting systems. GASB 34 requires all major infrastructure assets to
be identified, assigned an acquisition date, and then the original cost to be determined.
The estimating of the original cost of infrastructure and related depreciation generally
requires three steps. First the acquisition date must be determined. Second, the actual
or historical cost is determined either using actual historical cost data or using a price
level change index system. Third, the salvage value of the infrastructure is determined
and an estimated useful life is assigned to the infrastructure item. Since much of the
City of San Bernardino's infrastructure is relatively old and finance and engineering
staff resources are limited, a consultant must be retained to help complete this final
requirement of GASB 34.
In February 2006, the City, under the guidance of CBIZ Consulting of Orange County,
issued a Request for Proposal No. 06-20 (RFP) for services to help the city inventory
and value the City's infrastructure assets, including depreciation schedules to meet the
financial reporting requirements of Governmental Accounting Standards Board
Statement No. 34 (GASB 34). Staff has determined that the subsystems and networks
to be included are streets and appurtenances (including right-of-way, medians, curbs and
gutters, and sidewalks), street lights, traffic signals, bridges, storm drain lines, catch
basins, sewer lines and sewer manholes. Not included are water assets, sewer treatment
facility, street trees and library materials.
Services to be provided include a review of current inventories of relevant
infrastructure, identification of additions to the inventories including useful life,
methodologies to produce and value inventories which did not exist, and value and
update those infrastructures which do exist in inventories, and to provide depreciation
schedules for each infrastructure subsystem that should be used to complete the City's
Comprehensive Annual Financial Report as of June 30, 2006. In addition, information
and methodologies are to be provided, to be used to conduct an inventory of acquired
infrastructure and to determine its value, and propose a level of detail for each
infrastructure subsystem. The selected firm is to prepare a comprehensive narrative
report describing the scope and procedures and methodology used in performing work
that is acceptable to the City's external auditors, provide methodology and training of
selected City staff for updating additions and deletions annually, and are to provide the
City with all inventories in electronic and hard copy format.
Current Issue:
Request for Proposals were sent to eighteen firms (five local), including the San
Bernardino Chamber of Commerce, as well as published on the City's web site and the
newspaper. The City received three proposals, none of which were local. The
proposals were reviewed with regards to the capabilities of the firms to effectively
complete the project requirements, the qualifications of firm, the reasonableness of cost
and price, the completeness of response and local vendor preference.
The top two offerors were invited to give presentations to Finance Department staff and
the representative of CBIZ Consulting of Orange County. References for the most
qualified offerors were contacted by City staff.
The firm of Bureau Veritas, from San Diego, (formerly Berryman & Henigar) is
determined to be the selected candidate based on the written proposal and the
presentation to staff. Although the cost was approximately $15,000 more than the
runner-up firm (GK and Associates from Diamond Bar), staff felt the proposal from
Bureau Veritas was more detailed and complete. In addition, Bureau Veritas proposal
provided a more comprehensive and complete ongoing maintenance of the system so
that City Finance staff would be able to annually update the system without further
outside help from consultants.
Fiscal Impact:
The original estimate for this work was $40,000 and this amount is in the 2005/06
budget. Additional funds needed for this contract in the amount of $13 ,300 will not be
needed until FY 06-07 and therefore will be included as part of the FY 06-07 budget.
Recommendation:
Adopt resolution.
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RESOLUTION NO.
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AUTHORIZING THE DIRECTOR OF FINANCE OR
DESIGNEE TO ISSUE A PURCHASE ORDER IN THE AMOUNT OF $53,265 TO
BUREAU VERIT AS FOR INVENTORY AND V ALUA TION OF THE CITY'S
INFRASTRUCTURE ASSETS AS REQUIRED BY GOVERNMENTAL ACCOUNTING
BOARDS STATEMENT No. 34 (GASB 34).
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. That the Mayor and Common Council authorize the Director of Finance
or designee to issue a Purchase Order not to exceed $53,265 to Bureau Veritas to provide
inventory valuation of the City's infrastructure in compliance with Governmental Accounting
Boards Statement No. 34 (GASB 34).
SECTION 2. The purchase order shall reference this Resolution No. 2006-
and
shall read, "Bureau Veritas to provide valuation of the City's infrastructure assets as required
16 by governmental accounting boards statement No. 34 (GASB 34), PO No.
not to
exceed $53,265", and shall incorporate the terms and conditions of the Request for Proposal
No. 06-20.
SECTION 3. The authorization to execute the above referenced Purchase Order is
rescinded ifnot issued within sixty (60) days of the passage of this resolution.
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AUTHORIZING THE DIRECTOR OF FINANCE OR
DESIGNEE TO ISSUE A PURCHASE ORDER IN THE AMOUNT OF $53,265 TO
BUREAU VERITAS FOR INVENTORY AND VALUATION OF THE CITY'S
INFRASTRUCTURE ASSETS AS REQUIRED BY GOVERNMENTAL ACCOUNTING
BOARDS STATEMENT No. 34 (GASB 34).
6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor
and Common Council of the City of San Bernardino at a
meeting thereof, held
on the
day of
, 2006, by the following vote, to wit:
Council Members:
AYES
NAYS
ABST AlN ABSENT
ESTRADA
BAXTER
MCGINNIS
DERRY
KELLEY
JOHNSON
MCCAMMACK
Rachel G. Clark, City Clerk
The foregoing resolution is hereby approved this
day of
2006.
Patrick J. Morris, Mayor
City of San Bernardino
Approved as to Form:
JAMES F. PEr\i'MAN,
C;ty Att:~X, 11 #r. /) Ifl ~
By Wj(ttllh-.:....~
(
\.,
** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT **
RESOLUTION AGENDA ITEM TRACKING FORM
Meeting Date (Date Adopted): ~ Item # I r Resolution #
Vote: Ayes~ -l..p Nays ~ Abstain -..::er
Change to motion to amend original documents 0 Companion Resolutions
JDDfo- / /7
Absent 7
Null/Void After: bI2- days /JUYJ -e 3 () fd l~D f D....
Date Sent to Mayor: :5 / 'J- / D (p
Date of Mayor' s Signature: 5/ d~i ~
Date ofClerk/CDC Signature: :s () (!
I
Resolution # On Attachments: 0
PUBLISH 0
POST 0
Date Memo/Letter Sent for Signature:
l;t Reminder Letter Sent:
Note on Resolution of attachment stored separately: 0
RECORD W/COUNTY 0
By:
Reso. Log Updated:
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Seal Impressed:
Reso. # on Staff Report 0
tJ/A-
Not Returned: 0
Date Returned:
2nd Reminder Letter Sent:
Request for Council Action & Staff Report Attached:
Updated Prior Resolutions (Other Than Below):
Updated CITY Personnel Folders (6413, 6429, 6433,10584,10585,12634):
Updated CDC Personnel Folders (5557):
Updated Traffic Folders (3985,8234,655,92-389):
Yes / No By_
Yes No ,/ By_
Yes No ,/ By_
Yes No ~ By_
Yes No / By_
Copies Distributed to:
Animal Control
City Administrator
City Attorney
Code Compliance
Development Services
Others:
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o
o
EDA 0
Facilities 0
Finance G,~
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FIre Department
Human Resources 0
o
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o
o
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Information Services
Parks & Recreation
Police Department
Public Services
Water Department
Notes:
Ready to File: _
Revised 12/18/03
Date: