OFFICE OF THE CITY AUDITOR
Roland E. Smith
City Auditor

(510) 238-3378
FAX: (510) 238-7640
TDD: (510) 839-6451

June 4, 2002

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

Resolution Authorizing Addendum No. 3 to the Agreement with Swinerton Builders for the Fire Station No. 8 Replacement Project - Site Utilities, Tenant Improvements and Mechancial, Electrical and Plumbing Phase (Project No. C143910) for a Not-to-Exceed Amount of $1,800,000

We have reviewed the accompanying Public Works Agency Council Agenda Report and draft resolution proposing authorization by the Oakland City Council of the above-referenced addendum on the agreement between the City and Swinerton Builders.

SCOPE OF OUR REVIEW

Our review was made on the basis of the Council Agenda Report, draft resolution, and other background materials provided by the Public Works Agency.

We reviewed the report and resolution for contents, such as for consistency and agreement of information between them, the reasonableness of any assumptions or projections and accuracy of any computations presented, the availability of funding, and as to relevance to City goals and objectives.

The current proposal calls only for an addendum to an existing agreement. Accordingly, our work did not include a review of the process that led to the selection of Swinerton Builders as contractor, as to fairness and as to compliance with City rules and procedures.

A summary of the results of our review is shown under Exhibit 1.

CONCLUSION

In our opinion, the proposed amendment no. 3 to the agreement with Swinerton Builders on the Fire Station no. 8 Replacement Project merits a favorable consideration from the City Council. We hereby recommend its approval.

Respectfully submitted by:

Elmer L. de Leon, CGFM
Deputy Auditor

Issued by:

Roland E. Smith, CPA
City Auditor

May 10, 20002

Exhibit 1
Summary of Review Results
PPT 02 082

PROPOSED ACTION

City Council authorization for an addendum number 3 to the agreement with Swinerton Builders
on the Fire Station No. 8 Replacement Project. The addendum pertains to the site utilities, tenant improvements, and mechanical, electrical and plumbing phase of the project. Swinerton is the "construction management at-risk " contractor for the City's Fire Station No. 8 Replacement Project, acting as its construction manager-risk project delivery method.

BUDGET AMOUNT

The addendum is for a not-to-exceed amount of $1.8 million.

BUDGET FUNDING SOURCE

The funding for this phase of the agreement is coming from Fund 550, Organization 94211, Project No C143910 to be appropriated in FY 2002-2003 under the Capital Improvement Program budget already approved by the City Council on June 19, 2001.

PROJECT DESCRIPTION

The proposed work is the third and final phase of the agreement with Swinerton Builders. It includes site utilities, tenant improvements, and mechanical, electrical and plumbing works, as well interior wood framing, interior finish work, heating system, roofing, exterior building skin, painting and landscaping.

PROPOSED TIMETABLE

Phase 3 is estimated to begin in June 2002 and to be completed in January 2003.

CITY PRIORITY GOALS/OBJECTIVES TO BE MET AND PROJECTED BENFITS TO THE CITY

The project will enable Oakland to implement its goals for repair and maintenance of the City's infrastructure, and for safer neighborhoods. Also, the construction will help the City avail of the opportunities for easy physical access to the subject facility by people with disabilities.

CITY AUDITOR COMMENTS AND RECOMMENDATIONS

We recommend approval by the City Council of the proposed amendment no. 3 to the City's agreement with Swinerton Builders.

Report Number: 02-082