HomeMy WebLinkAboutStaff Report 2305-14292
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: City Auditor
Meeting Date: June 5, 2023
Report #:2305-1429
TITLE
Approval of Office of City Auditor Task Order Change - 4.08 Public Safety Building-Construction
Audit, as recommended by the Policy and Services Committee.
RECOMMENDATION
The City Auditor and the Policy & Services Committee recommend that the Policy & Services
Committee recommend City Council approve the change to the Task Order 4.08 Public Sector
Building-Construction Audit.
DISCUSSION
Task Order FY21-4.8 was to perform monthly construction audit testing for the General
Contractor, Construction Manager, Architect and Waterproofing Inspector through project
closeout. The original audit project schedule did not extend through the entire construction
process, and anticipated completion of the audit prior to June 30, 2023. Construction
completion is currently anticipated during December 2023. The current task order expires on
June 30, 2023.
There are currently several minor audit issues which need to be resolved prior to closeout. In
addition, the proposed closeout testing includes a final reconciliation of the contract values for
each of the contractors under that scope of this audit to confirm those contract values are
calculated correctly and in accordance with the respective contract documents.
The current amendment is for the additional hours required to complete this testing. Based on
anticipated construction completion in December 2023, the audit is expected to conclude by
March 2024. This allows time for the City and the respective contractors to provide any billings
and applicable audit documentation subsequent to project completion.
Item 6
Item 6 Staff Report
Item 6: Staff Report Pg. 1 Packet Pg. 79 of 406
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Amendment Estimate:
The OCA estimated that the additional time required to complete the audit of the Public Safety
Building through project completion would be 87 hours, which would cost $19,734. The total
revised audit hours and budget are 507 hours and $102,234, respectively. The additional
budget of $19,734 will be supplemented from the budgets for one of the remaining audits,
Long Range Planning, listed in the approved FY23 Audit Plan.
The updated information is included in the attached modified Task Order 4.08.
FISCAL/RESOURCE IMPACT
The change is within both the approved scope and compensation of the contract with Baker
Tilly and funding levels in the FY 2023 Operating Budget for the Office of the City Auditor.
STAKEHOLDER ENGAGEMENT
The OCA coordinated with the Public Works Department to determine the appropriate timeline
for completing the audit procedures based on the estimated completion of the Public Safety
Building project.
ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by CEQA because the audit activities do
not involve any commitment to any specific project which may result in a potentially significant
physical impact on the environment. CEQA Guidelines section 15378(b)(4).
ATTACHMENTS
Attachment A: TASK ORDER FY21-24-04.08 Public Safety Bldg (Modified)
APPROVED BY:
Adriane D. McCoy, City Auditor
Item 6
Item 6 Staff Report
Item 6: Staff Report Pg. 2 Packet Pg. 80 of 406
PROFESSIONAL SERVICES TASK ORDER
TASK ORDER 04.08 Public Safety Building-Construction Audit (Modified)
Consultant shall perform the Services detailed below in accordance with all the terms and conditions of the
Agreement referenced in Item 1A below. All exhibits referenced in Item 8 below are incorporated into this
Task Order by this reference. The Consultant shall furnish the necessary facilities, professional, technical
and supporting personnel required by this Task Order as described below.
CONTRACT NO. C21179340
OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE)
1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): C21179340
1B. TASK O RDER NO.: FY21-001
2. CONSULTANT NAME: Baker Tilly US, LLP
3. PERIOD OF PERFORMANCE: START: March 1, 2021 COMPLETION: June 30, 2023 March 31,
2024
4 TOTAL TASK ORDER PRICE: $82,500 102,234
BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT TBD
5. BUDGET CODE_______________
COST CENTER________________
COST ELEMENT______________
WBS/CIP__________
PHASE__________
6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:
Greg Tanaka, Chair of the City Council’s Policy and Services Committee
7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A)
MUST INCLUDE:
SERVICES AND DELIVERABLES TO BE PROVIDED
SCHEDULE OF PERFORMANCE
MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)
REIMBURSABLE EXPENSES, if any (with “not to exceed” amount)
8. ATTACHMENTS: A: Task Order Scope of Services B (if any): N/A
I hereby authorize the performance of the
work described in this Task Order.
APPROVED:
CITY OF PALO ALTO
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
I hereby acknowledge receipt and acceptance of
this Task Order and warrant that I have
authority to sign on behalf of Consultant.
APPROVED:
COMPANY NAME: ______________________
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
Item 6
Attachment A - TASK
ORDER FY21-24-04.08
Public Safety Bldg
(Modified)
Item 6: Staff Report Pg. 3 Packet Pg. 81 of 406
Attachment A
DESCRIPTION OF SCOPE OF SERVICES
Introduction
Attachment A, the Description of Scope of Services, contains the following four (4) elements:
Services and Deliverables To Be Provided
Schedule of Performance
Maximum Compensation Amount and Rate Schedule (As Applicable)
Reimbursable Expenses, if any (With “Not To Exceed” Amount)
Services & Deliverables
Baker Tilly’s approach to conducting the Public Safety Building construction audit involves
three (3) primary steps:
Step 1: Project Planning & Management
Step 2: Monthly Monitoring
Step 3: Reporting
Step 1 – Project Planning & Management
This step includes those tasks necessary to solidify mutual understanding of the construction
audit scope, objectives, deliverables, and timing as well as ensuring that appropriate client
and consultant resources are available and well-coordinated. Tasks include:
Conduct a formal kick off meetings with the City, the Construction Manager, Architect
and Waterproofing Inspector.
Formalize the communication plan, reporting formats, status update schedule and
deliverable milestone schedule
Distribute initial document request and check list
Review the contract documents related to each provider to identify key terms and develop
a specific testing program for each contract
Step 2 – Monthly monitoring
During this step we will review monthly invoices from the Construction Manager, Architect
and Waterproofing Inspector. We will focus on the following areas:
Monthly invoice review
Change order testing
Contingency and allowance testing
Lien waiver control
Item 6
Attachment A - TASK
ORDER FY21-24-04.08
Public Safety Bldg
(Modified)
Item 6: Staff Report Pg. 4 Packet Pg. 82 of 406
Compliance with insurance requirements
Closeout testing
Verify the City’s implementation and adherence to documented project controls
Step 3 – Reporting
We will prepare a monthly status update reflecting the testing performed during the current
period and planned testing for the subsequent period(s). The monthly status update will also
reflect any current audit issues, the status of any previously identified issues and any open
requests for documentation. At the completion of the project, we will provide a final report
detailing all procedures performed along with any observations and the applicable resolutions
or recommendations.
Deliverables:
The following deliverable will be prepared as part of this engagement:
Written monthly status updates as described in Step 3
Final report as described in Step 3
Schedule of Performance
Anticipated Start Date: March 1, 2021
Anticipated End Date: June 30, 2023 March 31, 2024
Maximum Compensation Amount and Rate Schedule
The not-to-exceed maximum for this Task is $102,234 82,500. The not-to-exceed budget is
based on an estimate of 420 507 total project hours to be completed by Baker Tilly.
Reimbursable Expenses
We plan to complete the majority of the work remote including all required meetings and
documentation review. If conditions allow, Baker Tilly will perform site visits once per year
around key project milestones. Our travel expenses will be billed separately at actual cost. We
will submit an estimate of our reimbursable expenses for the City’s approval prior to traveling to
Palo Alto.
Item 6
Attachment A - TASK
ORDER FY21-24-04.08
Public Safety Bldg
(Modified)
Item 6: Staff Report Pg. 5 Packet Pg. 83 of 406