Laserfiche WebLink
RIVERSIDE PUBLIC UTILITIES <br />Board Memorandum <br />BOARD OF PUBLIC UTILITIESDATE <br />:APRIL11, 2016 <br />ITEM NO <br />: 4 <br />File ID –16-1040–Consent <br />SUBJECTSECONDAMENDMENT TO THE AGREEMENT FOR PROFESSIONAL CONSULTANT <br />: <br />SERVICES FOR ANEXAMINATION AND PERFORMANCE AUDIT <br />ISSUE <br />: <br />The item for Board of Public Utilities consideration isapproval of aSecondAmendment to the <br />Professional Services Agreement (Agreement) with Baker Tilly Virchow Krause, LLPfor an examination <br />of the Northside Property transactions and a performance audit regarding fiscal policies and review of the <br />City’s departmental cost allocation model charged to the Electric and Water Funds, extendingtheterm of <br />the Agreement to August 1, 2016. <br />RECOMMENDATION <br />: <br />That the Board of Public Utilitiesapprovethe SecondAmendment to the Professional Service Agreement <br />with Baker Tilly Virchow Krause, LLP for the performance audit to extend the termthroughAugust 1, <br />2016. <br />BACKGROUND <br />: <br />On August 7, 2015, the Board of Public Utilities (Board) approved the Agreement with Baker Tilly <br />Virchow Krause, LLP.(Baker Tilly),for the purpose of conducting an examination and performance audit <br />for Riverside Public Utilities. The scope of the examination focuses on three areas: <br />Project 1 –Examination of Northside property transactions; <br />Project 2 –Performance audit regarding RPU’s fiscal policies; and <br />Project 3 –Review of the City’s departmental cost allocation model charged to the Electric and <br />Water Funds. <br />The work for the three projects is a coordinated effort between RPU Finance and City Finance divisions. <br />The projects were originally projected to be completed by November 15, 2015. With other competing <br />finance initiatives and deadlines, both with City and RPU Finance division staff, the projects have taken <br />longer than planned. <br />On January 22, 2016, the First Amendment to the agreement was approved to extend the date to May <br />31, 2016. Due to a combination of recent turnover in staff in the Finance department and also additional <br />information needed to complete the scope of the projects, staff is requesting to extend the term of the <br />contract to August 1, 2016. This should provide sufficient time to complete all three projects. <br />FISCAL IMPACT <br />: <br />There isno fiscal impactassociated with extending the term of the Agreement. <br />Prepared by:Laura Chavez-Nomura, Public Utilities Assistant General Manager/Finance <br />Approved by:Girish Balachandran, Public Utilities General Manager <br />Approved by: John A. Russo, City Manager <br />Approved as to form:Gary G. Guess, City Attorney <br />Attachment: SecondAmendment to Professional Consultant Services Agreement –Baker Tilly <br />Virchow Krause, LLP <br />Page 8 <br />