HomeMy WebLinkAbout1984-01-24; City Council; Resolution 74831
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RESOLUTION NO. 7483
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD
AUTHORIZING THE MAYOR TO ENTER INTO AN AGREEMENT FOR CONSUL
SERVICES WITH ARTHUR YOUNG AND COMPANY TO ASSIST THE CITY IN SELECTING AND IMPLEMENTING AN ACCOUNTING
replace or substantially improve the accounting software system
ING
presently running on the City's Hewlett Packard -3000 computer
system; and
SOFTWARE SYSTEM, AND TRANSFERING FUNDS.
WHEREAS, the City has determined that a need exists to
WHEREAS, the City wishes to use consulting services to
assist in the evaluation of the present system, review of
replacement systems and implementation of any selected accounting
software; and
WHEREAS, the City has requested proposals from qualified
consulting firms capable of providing the above services; and
WHEREAS, after review of said proposals, the City finds
that the proposal of Arthur Young and Company most closely meets
the City's needs; and
WHEREAS, the City Council has elected to fund the costs
associated with this study from the Contingency account.
NOW, THEREFORE, BE IT RESOLVED by the City Council of
the City of Carlsbad as follows:
1. That the proposal of Arthur Young and Company
attached hereto is hereby accepted and the Mayor is authorized to
execute the attached agreement with Arthur Young and Company for
consulting services.
2. That the amount of $22,680 is hereby transferred
from the Contingency account to the Finance Department budget to
fund these services.
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PASSED, APPROVED AND ADOPTED at a regular meeting of the
ity Council of the City of Carlsbad held the24fi day of
, 1984, by the following vote, to wit:
AYES:
NOES: None
ABSENT: Mne
Council Members Casler, Lewis, Kulchin, Chick and Prescott
K, dL,,
MARY H. CPLER, Mayor
rTTEST:
u d. (2-
\LETHA L. RAUTENKRANZ, City CJ)erk
:SEAL)
I t
AGREEMENT
THIS AGREEMENT is made this day of , 1984,
between the CITY OF CARLSBAD, a municipal corporation of the
State of California, hereinafter referred to as CITY, and ARTHUR
YOUNG AND COMPANY hereinafter referred to as CONSULTANT.
RECITALS
WHEREAS, the City has determined that a need exists to
replace or substantially improve the accounting software system
presently running on the City's Hewlett-Packard computer system;
and
WHEREAS, the Consult ant has the qualifications to assist
the City in evaluating the present system and selecting new
accounting software; and
WHEREAS, the Consult ant shall be an independent
contractor of the City.
NOW, THEREFORE, in consideration of their mutual conve-
nants and conditions, the parties hereto agree as follows:
(1) DUTIES OF THE CONSULTANT
The Consultant shall provide the services outlined in the
proposal, Exhibit A attached hereto, dated January 12,
1984. These services shall include but not be limited to:
(a> Review the current general ledger, accounts payable
systems including purchase orders, encumbrances, and
budgetary reporting as described in Task I of the
attached proposal.
(bl) In the event that the Consultant recommends
modifications to the existing software, the Consultant
shall assist the City in selecting a qualified firm to
perform such modifications and shall act as the City's
project manager throughout the process up to and
including implementation of such program
modifications.
(b2) Should the City and Consultant choose to replace the
existing accounting software, the Consultant shall
assist the City in the evaluation of three software
packages as described in Task 2b in the attached
proposal. This evaluation shall include interviews
with users, onsite visits, benchmark testing and
evaluations of system performance with regard to the
system specifications developed in this task. The
Consultant shall prepare a report to the City
summarizing the results of the study, including a
summary of any hardware modifications which would be
necessary to accommodate the proposed software and
present this report to City management. This report
shall include a recommendation as to which software
system best meets the City's needs.
The Consultant shall provide implementation assistance
to the City including development of an implementation
plan and project coordination and monitoring
services.
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(c) Provide a warranty that all staff provided by the
Consultant shall have the qualifications necessary to
perform the required analysis and that all products and
reports provided by Consultant shall be accurate
representations of the facts.
(2) DUTIES OF THE CITY
(a) The City will make payment to the Consultant as pro-
vided for in this agreement.
(b) The City will make available to the Consultant any do-
cument, studies, or other information in its possession
related to the proposed project.
(c) The City Finance Director shall act as the City's
representative for resolution of questions with respect
to this project and as the City's representative with
respect to performance of this agreement.
(3) TERMINATION OF AGREEMENT
The City may terminate this agreement at any time by giving
written notice to the Consultant of such termination and
specifying the effective date thereof, at least fifteen days
prior to the effective date of the termination. In event of
termination all finished or unfinished documents and other
materials prepared pursuant to this agreement shall become
the City's property. Upon termination for reasons other
than breach of this agreement City shall pay Consultant the
reasonable value of the services completed to the date of
notice of termination,
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(4) RELEASE OF INFORMATION BY CONSULTANT
Any reports, information or other data, prepared or assem-
bled by the Consultant under this agreement shall not be
made available to any individual or organization by the Con-
sultant without the prior written approval of the City.
(5) OWNERSHIP, PUBLICATION, REPRODUCTION AND USE OF REPORTS AND
OTHER MATERIALS
All documents and materials prepared pursuant to this agree-
ment are the property of the City. The City shall have the
unrestricted authority to publish; disclose, distribute and
otherwise use, in whole or in part, any reports, data, or
other materials prepared under this agreement.
(6) PAYMENT
The Consultant will be paid a maximum of $22,680 dollars for
all work necessary to carry out the requirements of this
agreement as shown in Exhibit 8 attached hereto. Actual
payment shall be based on the attainment of milestones as
shown in Exhibit 8.
(7) TIME OF COMPLETION
Time is of the essence in carrying out the terms of this
agreement. The Consultant shall complete the installation
of an accounting system by May 15, 1984, and shall notify
the City in writing of any cause for delay beyond this date,
If a delay is caused as a result of the City's actions or
inaction, the Consultant's completion deadline shall be
extended by the number of days of said delay. In the event
the Consultant shall not complete the assigned duties before
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3une 30, 1984, due to no fault of the City, the City may
immediately terminate this agreement and shall not be liable
for further payments to the Consultant.
(8) LIMITS OF THE OBLIGATION
The limits of the obligation of the City under this agree-
ment is in the sum of $22,680 which amount is estimated to
be sufficient to compensate the Consultant for all services
performed hereunder during the terms of this agreement. In
the event at any time it appears to the Consultant that said
sum may not be sufficient, he shall immediately so notify
the Finance Director. He will not perform any work or incur
any obligation beyond said sum of $22,680 without
appropriate amendment to this agreement.
(9) CHANGES IN WORK
If, in the course of this contract, changes seem merited by
the Consultant or the City and informal consultations indi-
cate that a change in the conditions of the contract is war-
ranted, the Consultant or the City may request a change in
the contract. Such changes shall be processed by the City
in the following manner. A letter outlining the required
changes shall be forwarded to the City or Consultant to
inform them of the proposed changes along with a statement
of estimated changes in charges or time schedule. After
reaching mutual agreement on the proposal, a supplemental
agreement shall be prepared by the City and approved by the
City Council. Such supplemental agreement shall not render
ineffective or invalid unaffected portions of the agreement.
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Changes requiring immediate action by the Consultant or the
City shall be ordered by the City Manager, who will inform a
principal of the Consultant's firm of the necessity of such
action and follow up with a supplemental agreement covering
such work.
The lump sum amounts detailed in this agreement shall be
adjusted for changes, either additive or deductive, in the
scope of work.
(IO) HOLD HARMLESS
The Consultant will indemnify the City against and hold it
harmless from all and any cost, expense, or liability for
damages on account of injury or death to persons or damage
to property or for any copyright or patent infringement
resulting from or arising out of or in any way connected
with the performance by Consultant of this agree-ment,
including the defense of any action arising therefrom.
Consultant will reimburse the City for all costs, expenses
and losses incurred by it in consequence of any claims, de-
mands and causes of action which may be brought against it
by any person arising out of the performance by Consultant
of this agreement.
( 11) MAINTAIN INSURANCE
Consultant shall, at all times that this agreement is in
effect or the premises are occupied by Consultant, cause to
be maintained in force and effect an insurance policy or
policies which will insure and indemnify both City and Con-
sultant against liability or financial loss result ing from
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injuries occurring to persons or property in or about the
premises or occurring as a result of any acts or activity of
Consultant. The liability under such insurance policy shall
be not less than $100,000 for any one person injured or
$300,000 for any one accident and $50,000 for property dam-
age. The policy shall be written by a responsible company
or companies to be approved by City, and shall be noncancel-
able except on ten days written notice to City.
(12) INDEPENDENT CONTRACTOR
Consultant in accordance with his status as an independent
contractor, covenants and agrees that he will conduct him-
self consistent with such status, that he will neither hold
himself out as nor claim to be an officer or employee of the
City by reason hereof, and that he will not by reason
hereof, make any claim, demand, or application to or for any
right or privilege applicable to an officer or employee of
the City including, but not limited to, workmen's compensa-
t ion coverage, unemployment insurance benefits, social se-
curity coverage, or retirement membership credit.
( 13) ASSIGNMENT OF CONTRACT
Consultant shall not assign this contract or any part there-
of or any monies due or to become due thereunder without the
prior written consent of the City.
(14) SUBCONTRACTING
If the Consultant shall subcontract any of the work to be
performed under this contract by Consultant, the Consultant
j
shall be fully responsible to the City for the acts and
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omissions of its subcontractor and of the persons either
directly or indirectly employed by its subcontractor, as it
is for the acts and omissions of persons directly employed
by it. Nothing contained in this contract shall create any
contractual relationship between any subcontractor of Con-
sultant and the City. The Consultant shall bind every sub-
contractor and every subcontractor of a subcontractor by
their terms of this contract applicable to its work unless
specifically noted to the contrary in the subcontract in
question approved in writing by the City,
(15) PROHIBITED INTEREST
No official of the City who is authorized in such capacity
on behalf of the City to negotiate, make, accept or approve,
or to take part in negotiating, making, accepting or approv-
ing any architectural, engineering, inspection, construc-
tion, or material supply contract or subcontract in connec-
tion with the construction of the project, shall become dir-
ectly or indirectly interested personally in this contract
or in any part thereof. No officer, employee, architect,
attorney, engineer or inspector of or for the City who is
authorized in such capacity and on behalf of the City to
exercise any executive, supervisory or other similar func-
tions in connection with the performance of this contract
shall become directly or indirectly interested personally
in this contract or any part thereof.
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(16) VERBAL AGREEMENT OR CONVERSATION
No verbal agreement or conversation with any officer, agent
or employee of the City, either before, during or after the
execution of this contract, shall affect or modify any of
the terms or obligations herein contained, nor such verbal
agreement or conversation entitle the Consultant to any
additional payment whatsoever under the terms of this
contract.
IN WITNESS WHEREOF, the parties hereto have executed
this agreement on the day and year first above written.
CITY OF CARLSBAD, a Municipal
Corporation of the State of
C a1 if orni a
BY FRANK ALESHIRE, City Manager
BY CONSULTANT
ATTEST:
ALETHA RAUTENKRANZ, City Clerk
APPROVED AS TO FORM:
VINCENT F. BIONDO
City Attorney
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EXHI BIT "6"
PAYMENT SCHEDULE
The nature of this project is such that a payment schedule based on the
attainment of measurable milestones is to the advantage of both parties.
The following schedule of payments shall be followed unless modified in writing
and accepted by authorized representatives of both parties.
Mi 1 es tone
Evaluation of present software and hardware
system and presentation of completed report.
Electing modification of existing software
i. Selecting of qualified technicians to perform modifications to existing software
ii. Preparation of implementation plan,
schedules, standards, testing procedures,
milestones, and quality control points
Initiation of testing of completed software
modules iii.
iv. Installation and successful completion all
of modifications as described in ii above
Acceptance of completed system by City v.
Electing selection of new accounting software
i. Presentat ion of completed report covering
results of the consultant's review of existing specifications, and present at ion of plans for evaluation software systems
ii. Presentation of report on results of
review accounting systems
Installation of selected accounting systems on
the City's HP-3000 computer
i . Preparation of implement at ion plans,
schedules, standards, testing procedures,
milestones and quality control points
ii. Initiation of testing of installed
software modules.
C om p let ion Date
2/ 10184
21 241 84
3/16/84
4/16/84
5/1/84
6/4/84
2/17/84
3/ 16/84
3/ 16/84
41 1 6 / 84
Amount Due
Consultant
$ 3,600
$ 2,160
$ 2,160
$ 2,160
$ 2,160
$ 2,160
$ 3,240
$ 3,240
$ 2,700
$ 2,700
iii. Completion of installation and final tests 5/1/84 !$ 2,700
$ 2,700 iv. Acceptance of completed system by City 6/4/ 84
The City and Consultant understand that the installation phase of this project
is scheduled to be 120 hours of the Consultant's time.
exceeded by 10% before the Consultant may request the City to renegotiate the
Agreement. The Consultant will notify the City at the earliest sign of delay
or excessive use of the Consultant's time on any part of the project. Consultant agrees to reserve at least 120 hours of service for the installation phase of this project.
This number may be
The
Completed installation shall be measured by the City as constructive use of
outputs such as reports or checks generated by the new or modified system.
Constructive use shall mean the ability of the City to use such outputs in the day-to-day administration of the City's accounting process.
citp of GarIsbab
Proposal to Provide Software Selection
and lmplementation Assistance
January 1984
ARTHUR YOUNG 8, COMPANY
11 0 WEST A STREET, SUITE 1400
SAN DIEGO, CALIFORNIA 92101
(619) 238-1 144
January 12, 1984
Mr. James F. Elliott Finance Director City of Carlsbad
1200 Elm Avenue
Carlsbad, CA 92008
Dear Mr. Elliott:
We are pleased to submit this proposal to the City of Carlsbad
to assist in the selection and implementation of an accounting
software package. Our proposal is in response to your request
of December 29, 1983, and is designed to meet the specific
needs of the City of Carlsbad.
Arthur Young & Company is dedicated to providing San Diego
County clients with full-service, locally resident consulting
support. As such, we have staffed this project with San
Diego-based consultants.
We look forward to assisting you on this important project. If
you have any questions regarding this proposal, please contact
Mr. Dan Littrell at (619) 238-1144.
Very truly yours,
1
TABLE OF CONTENTS
I. PROJECT BACKGROUND
11. TECHNICAL APPROACH
111. PROJECT SCHEDULE AND FEES
IV. PROJECT ORGANIZATION AND PERSONNEL
A. Project Organization B. Project Staffing
V. FIRM EXPERIENCE AND QUALIFICATIONS
A. Our San Diego Office B, Our Reputation
C. D. Management Services
E. Summaries of Related Engagements
Quality of Service and Experience
VI. RESUMES OF PROJECT TEAM
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I. PROJECT BACKGROUND
The City currently owns a Hewlett Packard 3000-30 computer.
City staff has been dissatisfied with the General Ledger and
Accounts Payable applications software packages selected and
implemented to date.
The City seeks to retain a qualified consulting firm to
evaluate the current General Ledger and Accounts Payable
software packages, and make recommendations regarding the
advisability of modifying and enhancing the existing software
versus selecting new software. Based on that decision the
consultant will a> coordinate the modification and enhancement
of the -existing software, or b) assist in the evaluation,
testing and implementation of three alternative software
packages.
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11. TECHNICAL APPROACH
In this section we present our technical approach, consisting
of three tasks. Our approach is based on our understanding of
the present environment and our experience in conducting
similar engagements,
Task 1 - Evaluate Current Software Packages
The major objective of this task is to access the current
status of the existing General Ledger and Accounts Payable
packages. During this task, we will work closely with City
staff experienced in the operation of the current systems,
Based upon information derived through interviews with City
employees and review of system documentation and reports,we
will outline the current systems' advantages and disadvantages.
In addition to our review of the systems' general capabilities
and limitations we will review the systems' technical per-
formance including but not limited to:
Database structure
Database access methods
Programming structure
Based upon analysis of the review data, we will assist you
in evaluating the suitableness of having your existing software
modified and enhanced to meet your specifications, We under-
stand that the software company (SIMCOM) that acquired the
ownership of the software package Carlsbad is using has
offered to make modifications and enhancements, We will work
with you and the software company in assessing their proposed
approach to the software modifications. As a result of this
review we will make our recommendations advising the City as to
whether we believe it would be a reasonable approach for the
City to follow.
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Based upon your decision as to the software approach the City
will follow, we will assist in the second task in one of two
ways:
a) Act as project coordinator for the modifications to
the existing software, or
b) Assist the City in the evaluation and testing of three alternative software packages
Task 2A - Project Coordination of Current Software Modifica- tions
Ne will assist the City to monitor and benchmark the modifica-
tions made by the software firm to the existing software. We
will help the City to prepare an implementation plan to direct
the modifications and enhancements. Included in this plan will
be periodic milestones and quality control check points to
ensure that the project remains on schedule and that the
modifications perform the functions correctly.
During the quality control check points we will assist the City
to develop test data and routines to adequately exercise the
various options of each function being modified and the soft-
ware packages as a whole. We will determine if any functions
or capabilities not being modified are not affected by other
modifications.
Upon completion of all modifications and enhancements we will
work with the City and Simcom to design and develop a complete
system test package. This package will provide the acceptance
testing for the new software by the City.
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Task 2B - Assist in the Evaluation and Selection of Software
Packages
The major objective of this task is to assist the City in the
evaluation and selection of new Accounts Payable and General
Ledger software packages.
We will review the City's existing system specifications to use
as a basis for the functional requirements of the new packages.
Together with our information collected during Task 1, we
will develop a complete set of specifications for each system
sufficiently detailed to be useful in comparing the capabil-
k ities of the software packages to the City's requirements.
,d 2'- di iJr I We will assist the City in the evaluation of three alternative
packages for each of the General Ledger and Accounts Payable
systems. During this evaluation we will develop sufficient
test data to adequately test the operations of the considered
packages.
We will accompany the City on site visits to see the software
d- in operation and to interview current users of the software to
determine their level of satisfaction with the software's
performance and the level of support supplied by the vendor.
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If necessary, benchmark testing will be performed on the
packages to match the performance of the software against the
City's functional specifications.
As a result of our site visits, benchmark testing and documen-
tation review, we will summarize our findings regarding each
package evaluated. In this summary we will outline the
advantages and disadvantages of each alternative resulting from
our analysis of the evaluation data. Based upon the analysis
results the City will be able to make the final selection of
which software packages to acquire.
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We will evaluate the impact on the City's current hardware
configuration of the selected software packages and make
recommendations as to an'y additional capabilities that the City
may have to acquire in order to properly support the operation
of the new software packages. These recommendations will
include cost estimates where appropriate.
Task 3B - Implementation Assistance
Once Task 2B has been performed, we will assist the City in the
preparation and monitoring of the implementation of the new
software packages. This process will include the development
of an implementation plan including module testing points and
the monitoring of the implementation process against the plan.
We will act in a similar role as in Task 2A to provide the City
with project coordination and monitoring of the implementation
of the basic modules in each of the two systems. We will
actively participate in solving any problems that may occur
during the implementation process and will report the results
of the problems to the City on a timely basis. In addition to
reporting problem results, a periodic status report on the
progress of the implementat ion will be prepared and presented
to City management.
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111. PROJECT SCHEDULE AND FEES
We have estimated our time for this project on a task basis due
to the decisions which will occur during this project. The
following estimates our involvement, by task:
Hours Fees
Task 1 Current System Evaluation 40 $ 3,600
Task 2A Project Management 120 $10,800
of Current Software Modifications
Task 2B Evaluation of Three 72 $ 6,480 New Software Packages
Management of New Packages Task 3B Implementation 120 $10,800
- Since Task 3B is based upon the results of the selection of new
software and, at this point in time, we do not know which
packages will be -selected we have placed a condition on our
Task 3B estimate.
We will honor the not-to-exceed figure on Task 3B up to an
amount 10% greater than the proposed fee. If it is determined
that time will be required beyond the additional 10% we will
advise the City of the additional time estimate. We will then
continue the project once the new estimate for additional work
has been approved.
The fees for our professional services are based on the hours
of consulting provided times the applicable hourly billing rate
of the consultant performing the work. We estimate our fees
for the work described under "Technical Approach" to be $14,400
plus $1,200 for out-of-pocket expenses for Tasks 1 and 2A or
$20,880 plus $1,800 for out-of-pocket expenses for Tasks 1, 2B
and 3B. Expenses resulting from out-of-town travel for site
visits are not included in the above amounts.
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We are prepared to begin this project on February 1, 1984. We
will provide the necessary consulting time to target March 15,
1984 as the package selection date and May 15, 1984 as the
initial operational date for the new packages.
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-- i IV. PROJECT ORGANIZATION AND PERSONNEL
A. Project Organization -
In addition to technical competence, the consulting firm chos-
en for a project of this importance and magnitude must be
capable of successfully managing its own project team. Proven
project management techniques enhance the consultant's ability
to meet time commitments and provide realistic recommendations.
Having conducted numerous major public and private sector
consulting engagements, our Firm has found that a project
organization structure such as the one described below has a
number of significant advantages:
It provides mechanisms for maintaining a meaningful, candid and open level of dialogue between the client
and the consultants, maximizing the likelihood that
the study's outcome will be both responsive to the organization's needs and acceptable to the personnel it affects.
It provides sufficient structure and definition of
task responsibilities to ensure efficient and effec- tive utilization of both the client's and consulting firm's staff.
The critical roles in this project organization structure
are:
1) Project Coordinator
The role of the Project Coordinator is to assist in
maintaining overall day-to-day direction of the
engagement, and to assist in arranging key meetings and providing critical information sources. It is
our understanding that Mr. James Elliott will serve as the Project Coordinator.
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2) Partner-in-Charge
Our Firm has an on-going responsibility and commit- ment to maintain our national reputation by providing
the highest quality professional work possible. It will be the role of the Partner-in-Charge, Mr, Michael Kingsbury, to continually monitor the engagement for
the purpose of assuring high quality results and on-time completion of all activities, Mr. Kingsbury
has participated in similar assignments and has
extensive experience with governmental systems and operations.
3) Project Manager
Arthur Young & Company assigns to each engagement a Project Manager who is thoroughly familiar with the type of work desired by the client and is best suited to coordinate the activities of the consultants assigned to the engagement, The Project Manager serves as the main contact with the client throughout
the study and directs all of the day-to-day activi- ties. The Project Manager for this study will be Mr. Dan Littrell, a Senior Manager in our San Diego off ice.
B. Project Staffing
Arthur Young & Company has assembled a project team possessing
exceptional technical skills and knowledge of local government
operations. These team members will provide the skills,
experience and time necessary to ensure that the City receives
a high quality product.
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V. FIRM EXPERIENCE AND QUALIFICATIONS
Founded in Chicago in 1894, Arthur Young & Company, like the
accounting profession itself, has grown dramatically over the
years -- slowly at first but with increasing momentum in the
past two decades to meet the growing challenges of a dynamic
economy. Today, Arthur Young & Company is one of the largest
professional firms in the world, with services available
through 74 offices in the United States and over 130 offices
abroad.
We take pride in our history of growth and expect it to con-
tinue, for it is our conviction that any organization serving
the business community today must grow if it is to keep pace
with the increasingly diverse, complex, and widespread activi-
ties of its clients.
A. Our San Dieeo Office
Arthur Young & Company has been in San Diego since 1959.
Although the Firm is international, the $an Diego office
retains a strong local identity; the nature of our skills and
the style of our practice necessarily reflect the local en-
vironment. Like the Firm, however, we are oriented toward the
tailored solution of problems and assignments rather than
toward the narrow implementation of preconceived ideas. As a
matter of policy, we maintain as full a range of interdisci-
plinary skills as possible because we believe we can be of
maximum service to clients by doing so. When the capacity of
our local resources is exceeded, we have available to us the
additional support of our Orange County, Los Angeles and San
Francisco offices.
Currently, our personnel complement in San Diego includes 80
people, of which 70 are professional staff. These professional
people are involved in day-to-day activity in the areas of
management consulting, accounting and auditing, and tax con-
sul t ing.
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B. Our Reputation
Certainly size alone is no sound measure of the quality of a
professional firm, except perhaps to the extent that a large
and enduring clientele indicates satisfaction with the services
rendered. A far more important criterion is the firm's reputa-
tion among other members of the profession, among the clients
it serves and among the public at large. Throughout the
history of Arthur Young & Company, the Firm and its partners
individually have maintained a reputation for excellence second
to none in the professional services field. Our profession
prohibits solicitation; thus, the abilities of our staff and
the quality of our work must be one of the highest caliber if
we are to maintain and improve our position.
C. Quality of Service and Experience
As a Firm we are committed to the objective of providing the
highest possible quality of service to all our clients. Vie
accomplish this goal from the beginning through our concen-
trated recruiting and selection efforts, through our Firm-wide
training programs and through the experience gained by serving
a widely diversified selection of clients.
We believe that we can focus the talents and efforts of our
people and our other resources upon the needs and objectives of
each client organization in a constructive and objective
manner. Because of our experience, we believe that we can
effectively compliment the knowledge and capabilities of the
client's own staff and contribute new and fresh ideas to the
proposed project.
Our basic philosophy can be described in one word - service.
Immediate availability to our clients of a broad range of
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business and technical competence is our prime objective and we
have organized our resources accordingly. Arthur Young &
Company is not affiliated with any dealer or manufacturer, thus
ensuring objectivity when designing and evaluating procedures
and systems for our clients.
D. Management Services
Arthur Young & Company's Management Services Group has been in
existence for over twenty-five years. It employs over 600
management consultants and is one of the largest consulting
organizations in the country.
We are equipped to provide our clients with a variety of man-
agement consulting services. These services include:
Electronic Data Processing - Design and installation of computer systems; feasibility studies; assistance in
modifying and updating existing systems.
Office Systems Consulting - Feasibility studies aimed at
evaluating applications and equipment requirements; design and implementation of office systems; assistance
in integrating office technologies and systems.
General Management and Organization Consulting - Poli-
cies and procedures design; long-range planning; organ-
ization planning; general counseling; management-by-
objective programs.
Operations Analysis - Staffing studies; methods improve- ment/work measurement programs; resource management
systems.
Financial Planning and Control - General accounting
systems; budgeting systems; cost analysis; profit plan- ning.
Personnel and Industrial Relations - Classification
studies; management development programs; compensation and incentive plans; employee training.
Executive Recruitment - Recruitment of management-level personnel.
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? I i
E. Summaries of Related Engagements
Experience on prior projects demonstrates our capability to
perform this project. The following are specific projects
related to this proposal.
City of Escondido
We are currently conducting a requirements analysis of
the City's data processing and office system needs and
developing an information systems master plan. The
project also includes the evaluation and selection of
computer hardware and software, and definition of data processing organizational considerations.
County of San Diego
Conducted a special review of EDP services. Study
resulted in findings and recommendations regarding turnover and compensation of EDP department personnel,
training needs, user needs for additional data processing support, project control and reporting system needs and project justification policies and procedures.
University of San Diego
Assisted the University to select a computer configura-
tion to perform accounting, registration, admissions,
class scheduling and student records functions. Infor- mational and operational needs were analyzed, and current
and future requirements were developed. Based on these requirements, computer equipment was selected and application software was designed.
San Diego City Schools
Developed a long-range data processing plan. Addition- ally, evaluated ten data base management system software
packages against the District's data processing needs. As part of another project evaluated the District's
payroll operations. Work involved an analysis of both the operational and data processing aspects of the
District's payroll requirements.
NU-EAR Electronics Inc., San Diego, California
Reviewed accounting and production software packages already running on the company's computer. Additionally, documented the major problems and user concerns and made
recommendations for improvement.
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7
1 Courseware, San Diego, California
Assisted in the evaluation, selection and implementation of an accounting software package to run on a micro- computer.
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i
MICHAEL F. KINGSBURY
Partner-in-Charge
Mr. Kingsbury is the Office Director of Management Services
0 in Arthur Young’s San Diego office. He has directed numerous
studies of financial systems, many of which have focused on the
ability of the system to provide management information for
planning and control of the operation, With our emerging
business clients he focuses on their needs for adequate finan-
cing using computer-based models to project cash requirements,
return of investment, and ability to fund debt, His major
areas of expertise include general accounting, cost accounting,
variable budgeting, capital budgeting and planning and fore-
casting systems.
Relevant experience includes:
Directed a series of engagements for the San Diego County Grand Jury including management reviews of data processing, fleet operations, the contracting process and the budgeting process,
-0 Directed the design and implementation of an accounting
system for a new corporation which provides data processing services to the City of San Diego.
Assisted in selecting computerized Finance Systems to perform all the fund accounting for the City of San Jose. The system was identified through a transfer study which included developing a system definition, survey of existing packages, and recommendation of the package to implement. This system will provide accoun-
ting for all capital outlay and plan fund accounting.
Assisted in defining financial management system requirements for the City of Los Angel’es.
Conducted a management review of the implementation of
new computer hardware and software for the City of Seattle. The study led to the identification of a number of areas for improvement within the system that
had been implemented.
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Michael F. Kingsbury cont.
Participated in an engagement for the San Francisco
Municipal Railway to prepare a data processing master plan. His responsibilities included the design of
systems to fulfill the Section 15 reporting require-
ments.
Managed an engagement for AC Transit District to
develop a long-range plan for systems and data proces- sing improvements, including a complete review and
analysis of existing accounting and statistical re-
porting systems. System specifications were developed to meet both management's information requirements and
federal reporting requirements (FARE).
Managed an operational audit of the purchasing func-
tion of nine major departments and agencies for the
Territorial Auditor of Guam. Many of our recommenda- tions were subsequently enacted into law, regulations and policies.
Before joining the Firm Mr. Kingsbury was an instructor at the
University of California, Berkeley. He holds an MEA and a BS
degree from the University of California, Berkeley, both with a
major in accounting. Mr. Kingsbury is a Certified Public
Accountant, a Certified Information Systems Auditor, ana a
Certified Management Consultant. He has also served as the
Chairman of the Library Commission for the City of San Diego.
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:I*
!
a
i
DAN LITTRELL Project Manager
Mr. Littrell is a Senior Manager in our San Diego office,
responsible for office systems and data processing consulting.
As such, he has been involved in engagements concerned with
the planning, design and organization of computer installa-
tions for system application software as well as hardware.
Mr. Littrell holds an MBA and a BS degree in computer science
from California Polytechnic State University in San Luis
Obispo. During his four years in industry prior to joining
Arthur Young & Company, he was involved with the establish-
ment of a large computer installation in San Diego County.
Since -joining the Firm, Mr. Littrell had been responsible for
systems design, hardware aid software select ion and organi-
zation of office systems and data processing installations
in both the public and private sectors.
Recent engagements include the following:
Currently managing a project to assist a local City with
the development of an information systems master plan,
and select hardware and software to support those plans.
Assisted in the development of a long-range data proces- sing plan for a public sector organization with a data processing budget in excess of one million dollars . The
plan included software development, hardware procure- ment and personnel planning for three years.
Directed the research and evaluation of a large payroll system for the San Diego City Schools. Evaluation
included analysis of existing payroll data collection methods and recommendations for improving them.
Developed a detailed implementation/test plan for the financial data base system for the San Diego County Board of Education.
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Dan Littrell cont. ,
Performed a management audit of the County of San Diego's data processing department. Recommendations for improvement were made in the areas of turnover and
compensation, training, user needs for additional data
processing support, project control and reporting system needs and project justification policies and
procedures,
Analyzed building permit process system for the County of San Diego to determine its effect on home building starts.
Managed the review and evaluation of the employee
benefits system for a local school district and made
recommendations for improvements to ensure system
accuracy and reliability.
Managed a project to assist the San Diego City Schools in the evaluation and selection of a data base manage- men t system,
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44
',
FLOYD G. WEBB Project Consultant
Mr. Webb is a senior consultant in our San Diego office. He
received his Master of Accountancy from Bowling Green State
University and a Bachelor's degree in Mathematics from Central
Michigan University. He has over ten years experience in
the accounting and finance area and is a Certified Public
Accountant.
Mr. Webb has a diverse business background and has been em-
ployed with the largest corporations in San Diego. His most
recent business experience includes:
For a national inventory service company, performed an evaluation of the control strengths and weaknesses of
their accounting and information reporting system.
For a semi-custom microchip manufacturer, assisted in
the development of data system requirements definition and subsequent vendor selection.
For a local utility, coordinated, with the Information Center, the development of IBM Personal Computer
Standards, procedures and control points for user deployment. Evaluated software packages compatible with the IBM Micro to determine relevance to the various user departments.
For an international public accounting firm, implemented accounting and management information systems. Partici- pated in audits of private and public companies.
For a large Defense Contractor, represented Senior Man- agement in the financial aspect of contract management.
For a computer manufacturer, assisted division manage- ment in the development of quarterly and yearly finan- cial budgets and business plans. Financial represen- tative in the implementation of automated general
ledger, billing and accounts payable system.
Mr. Webb is a member of the American Institute of Certified
Public Accountants and the California Society of Certified
Pub1 ic Accountants .
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