OFFICE OF THE CITY AUDITOR
Roland E. Smith, CPA
City Auditor

December 16, 2003

TO: President De La Fuente and Members of the City Council

SUBJECT: RESOLUTION AUTHORIZING AWARD OF A CONTRACT TO ANDES CONSTRUCTION, INC. FOR THE REHABILITATION OF SANITARY SEWERS IN THE AREA BOUNDED BY CREST, MICHIGAN ABD 82ND AVENUES AND MACARTHUR BOULEVARD - SUBBASIN 84-112 (PROJECT NO. C158110) FOR THE AMOUNT OF ONE MILLION THREE HUNDRED TWENTY THOUSAND SIX HUNDRED THIRTY DOLLARS ($1,320,630)

PURPOSE AND SCOPE

In accordance with the Measure H Charter Amendment, which was passed by the voters at the General election of November 5, 1996, we have made an impartial financial analysis of the accompanying Council Agenda Report, and Proposed Resolution. In making our analysis we also obtained copies of the engineer's estimate and the Notice Inviting Bids, as advertised in the September 4, 2003 edition of the Oakland Tribune.

Since the Measure H Charter Amendment specifies that our impartial financial analysis is for informational purposes only, we did not apply Generally Accepted Government Auditing Standards as issued by the Comptroller General of the United States. Moreover, the scope of our analysis was impaired by Administrative Instruction Number 137, effective May 21, 1997, which provides only one (1) week for us to plan, perform and report on our analysis.

SUMMARY

On October 13, 2003 the City Clerk received two bids for the project, as shown below:

Under the City's formula for giving preference to Small and Local Business Enterprises, Andes Construction, Inc. is considered to be the lowest bidder. The engineer's estimate for the work was $1,620,250.

FISCAL IMPACT

Funds are available from the following source:

CONCLUSION

The proposed resolution appears to be reasonable.

Prepared by:

Jack McGinity, CPA

Issued by:

Roland E. Smith, CPA
City Auditor

Report completion date:
November 10, 2003