Memorandum

City of Lawrence

City Attorney’s Office

 

TO:

Mayor and City Commission

CC:

Michael Eglinski, City Auditor

David L. Corliss, City Manager

Diane Stoddard, Assistant City Manager

Casey Toomay, Assistant City Manager

FROM:

Toni R. Wheeler, City Attorney

DATE:

January 9, 2015

RE:

Professional Services Agreement with McDonald & Associates, Inc. for Construction Cost Review Services Related to Rock Chalk Park

 

Please place the attached agreement with McDonald & Associates, Inc., (hereinafter “McDonald & Associates” or the “firm”) on the City Commission’s agenda for consideration and approval.  It relates to an independent review of the payment for certain infrastructure pursuant to the Rock Chalk Development Agreement. 

 

Background

At its regular meeting on January 6, 2015, the City Commission directed the City Auditor and City Attorney to negotiate an agreement with McDonald & Associates to review construction and related costs for certain infrastructure at Rock Chalk Park.  The City Auditor recommended the firm to the City Commission, and the City Commission accepted the recommendation.  See Mr. Eglinski’s Memorandum to the City Commission dated January 6, 2015. 

 

The Work

The proposed agreement provides that the firm will perform those services described in Exhibit A. The overarching objectives are (1) to determine whether the work (infrastructure improvements) was delivered according to the Development Agreement and (2) to determine whether the City’s expenditures for the infrastructure improvements (hard and soft costs) were in compliance with the Development Agreement.  The firm intends to compare the infrastructure cost with a reasonable and agreed upon comparable and evaluate on a limited test basis whether support for the expenditures agree or do not agree with the terms and conditions found in the Development Agreement.  The firm will attempt to perform the services in compliance with Institute of Internal Auditors Standards.  However, under the circumstances, full compliance with the standards may not be possible.  The City is aware of that fact and understands that may be a possible result. 

                                                                                                 

The agreement designates the City Auditor as the firm’s point of contact.  As such, the City Auditor will be able to make decisions with respect to the work in consultation with the Mayor and Vice-Mayor. 

 

The Price

The firm’s proposal indicated that it anticipated its staff would devote 120 hours to the review at an hourly rate of $160 for a total of $19,200.  The City will pay McDonald & Associates for actual work performed under the agreement up to a limit established by the Commission.  To provide some flexibility, the City Auditor recommends that the City Commission authorize up to $25,000 for the work, plus reimbursement for reasonable out-of-pocket expenses.  The out of pocket expenses may include long distance calls, postage, travel, transportation, and similar expenses.

 

The Timeline

Exhibit A provides that McDonald & Associates will use its best efforts to perform the work and provide a written report by February 12, 2015, for consideration by the City Commission at its regular meeting on February 17, 2015. 

   

Staff Recommendation

Staff recommends an agreement in substantially the form of the attached agreement be approved.  Staff recommends the City Commission consider Exhibit A to the agreement and advise Mr. Eglinski of changes it determines are appropriate, if any. 

 

Action

Authorize the Mayor to execute a professional services agreement and scope of services with McDonald & Associates, Inc., in substantially the form of the attached agreement and scope, for the independent review of the payment for certain infrastructure costs at Rock Chalk Park, if appropriate.