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

May 13, 2003

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

SUBJECT: RESOLUTION AUTHORIZING THE REDEVELOPMENT AGENCY TO OBTAIN PROFESSIONAL ASBESTOS AND LEAD-BASED PAINT CONSULTING SERVICES THROUGH THE CITY OF OAKLAND FROM JULY 1, 2003 THROUGH JUNE 30, 2005

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 Agenda Report and Draft Resolution. The purpose of our analysis was to ascertain whether the proposed agreement amounts were reasonable. In making our analysis we obtained copies of the Request for Proposal and discussed various matters with Agency staff.

SUMMARY

This resolution will authorize professional services agreements to provide as-needed asbestos and lead-based paint consulting services with four firms. Each agreement is for a not-to-exceed amount of $200,000 over a two-year period from July 1, 2003 through June 30, 2005, and will be managed by the Public Works Agency. The total costs for the four agreements will be a not-to-exceed amount of $800,000.

However, the Council should be aware that it will also be asked to approve a separate but related resolution that will provide as-needed general environmental consulting services with six firms. Each agreement is for a not-to-exceed amount of $350,000 over a two-year period from July 1, 2003 through June 30, 2005. The total costs for the six agreements will be a not-to-exceed amount of $ 2.1 million.

Accordingly, the combined costs for the two resolutions will be a not-to-exceed amount of $2.9 million. The proposed vendors and related amounts under the two resolutions are summarized in the Exhibit to this report.

VENDOR SELECTION PROCESS

The Public Works Agency issued a Request for Proposal, interviewed the seven responsive and qualified firms, and selected four of the firms.

FISCAL IMPACTS

For the past nine years the Public Works Agency has maintained as-needed contracts for asbestos and lead-based paint consulting services in support of the Oakland Redevelopment Agency, Oakland Army Base, Community and Economic Development Agency, Public Works Agency and Life Enrichment Agency. Funding comes from the budgets of those Agencies on a project-by-project basis. However, since the agreements are for as-needed services, the City is not committed to utilize the full amounts approved for such services.

CONCLUSION AND RECOMMENDATION

The proposed amounts of the agreements appear to be reasonable. However, the Council will decide what priorities the projects have within the City's overall budget.

Prepared by:

Jack McGinity, CPA

Issued by:

Roland E. Smith, CPA
City Auditor

Report completion date:
April 18, 2003

EXHIBIT

SUMMARY OF PAYMENTS TO BE MADE UNDER PROPOSED
AS-NEEDED SERVICE AGREEMENTS

ASBESTOS AND LEAD-BASED PAINT CONSULTING SERVICES

ENVIRONMENTAL CONSULTING SERVICES