Loading...
16 - Third Party Engineer Firm to review Utility Bond ProjectItem No. 16 r TO: Mayor & City Council FROM: Grayson Path, City Manager SUBJECT: Yd Party Engineering Audit DATE: October 12, 2020 BACKGROUND: At the September 28, 2020 City Council Meeting, the City Council discussed the status of the MLK and 17th Street portion of the Package 44 Contract for the Utility Bond Project. Package #4 was awarded to Oscar Renda Contracting (ORC) in December 2015. Package #4 has an approximate budget of $24 million. During this discussion, it appeared evident that the City Council has concerns with the performance of this project, be that contractor's work, inspection, engineering and/or City oversight. At one point, it was discussed that a 3rd Party Audit to review the project should be considered to make sure that the City Council can rest assured that this project was built correctly. No decision was made at the meeting, but given how this discussion went and the concerns that were expressed, it is the City Manager's job to attempt to recognize issues that the City Council would like addressed and work towards that goal. STATUS OF ISSUE: Given the agenda item on 09/28/20 was not written for the City Council to discuss seeking a 3rd Party Review, but given there was considerable concern expressed by the Council, the City Manager decided to place an item on tonight's agenda to seek guidance on how the City Council wishes to proceed. Based on his observation of the 9/28/20 council meeting, it is the City Manager's belief that the council is seeking answers as to whether this project was built correctly or not. If this is indeed the direction the City Council wishes to proceed, the City Manager requests that the City Council consider hiring a 3rd Party Engineering Firm to perform this audit. City Staff do not have the expertise, qualifications nor time capacity to take on a great task as this, particularly with the recent resignation of the City Engineer. The remaining staff, that being primarily the City Manager and Public Works Director, now need to focus on moving the existing project towards completion, working with the Design Engineer, Third Party Inspector, and Contractor. To perform the needed audit of this Package #4 project, which has extended over 5 years and across much of western Paris, a Third Party would be needed to accomplish this. It is highly advisable that if the City Council pursues this Third Parry Engineering Audit route, that it not in any way interfere with the City's existing contracts, but instead operate in parallel. It would also be advisable that the City Manager be directed to either identify a single qualified firm or multiple firms, but for the City Council to meet and interview this firm(s) to make sure the Council is confident and comfortable with that entity. BUDGET: At this point, without a known scope of service, the City Manager does not have any estimate to provide the City Council as to what a Third Party Audit might cost. For City Staff to perform such a review would have considerable cost in lost production on other matters, including continuing to perform the City's role in oversight of this project towards completion. There is expected to be available funds in Package #4 upon completion of the project; City Staff are working on estimating that amount, but it will not be an absolute as final closeout will still need to occur. OPTIONS: 1. Consider hiring a third party engineering firm to review and audit the Package #4 portion of the Utility Bond Project. 2. Consider tasking City Staff with reviewing and auditing the Package #4 portion of the Utility Bond Project. 3. Do not perform a review and audit of the Package #4 portion of the Utility Bond Project. RECOMMENDATION: The City Manager cannot provide the City Council with a solid recommendation. He has only been with the City since April 2020 while this Package #4 Project has been underway well before December 2015 (including design and initial planning). Having not seen a vast majority of this project done, he has no way to reasonably advise the City Council as to what they should or should not do. From his brief observation and based on his prior construction experience, a third party audit does not seem warranted. But if the City Council has a concern, and if they believe this concern would linger forward, then the only way to reasonably quell that concern would be to seek out a third party engineering firm to review and audit this project.