Report 2018-131 Recommendation 4 Responses
Report 2018-131: Alum Rock Union Elementary School District: The District and Its Board Must Improve Governance and Operations to Effectively Serve the Community (Release Date: May 2019)
Recommendation #4 To: Alum Rock Union Elementary School District
To ensure proper oversight of construction costs, the district should stop using payment terms for construction management and program management services that base fees on a percentage of construction costs or bonds issued.
1-Year Agency Response
On February 13, 2020, the Board adopted BP 3312, which states in part, the District shall not enter into a contract for construction management services or program management services where compensation is based on a percentage of construction costs or bonds issued. Contracts for construction management services or program management services shall stipulate compensation on a not-to-exceed basis. The District shall not use the same firm for program and construction management services.
- Completion Date: March 2020
- Response Date: May 2020
California State Auditor's Assessment of 1-Year Status: Fully Implemented
The district fully addressed this recommendation, although the last sentence in its response pertains to a different recommendation.
6-Month Agency Response
The Board move to terminate all construction contracts with Del Terra in December 2018. This is reflected on the minutes for the Dec. 2018 meeting items 8.05 and 8.06 pages 9 and 10 of the minutes for the meeting. Link to the minutes will be sent to Brian Boone.
- Completion Date: December 2018
- Response Date: November 2019
California State Auditor's Assessment of 6-Month Status: Partially Implemented
In addition to terminating its construction contracts with Del Terra, the board considered adopting changes to its board policy to be explicit about not entering into contracts for construction management services or program management services where compensation is based on a percentage of construction costs or bonds issued. However, the district did not provide evidence that the board formally adopted those changes.
- Auditee did not substantiate its claim of full implementation
- Auditee did not address all aspects of the recommendation
60-Day Agency Response
1. Staff is in process of updating BP and AR to stop using payment terms for construction management and program management services that that base fees on a percentage of construction costs or bonds issues.
Note: The District will complete this when The Board Policies in 3000 series are completed.
- Estimated Completion Date: The District will complete this when The Board Policies in 3000 series are completed
- Response Date: August 2019
California State Auditor's Assessment of 60-Day Status: Pending
All Recommendations in 2018-131
Agency responses received are posted verbatim.