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HomeMy WebLinkAbout18-Finance 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: ~ ;:;L.OOt?- /11] 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. 2 17 18 19 20 21 22 23 24 25 26 27 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 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. II I III II I II I II I /VOl /g ;)1/06 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1 2 3 4 5 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: ~ ~ 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: o ~ o o EDA 0 Facilities 0 Finance G,~ . .. 0 FIre Department Human Resources 0 o o o o o Information Services Parks & Recreation Police Department Public Services Water Department Notes: Ready to File: _ Revised 12/18/03 Date: