AUDIT COMMITTEE SUMMARY
September 19, 2017
Audit of SAPD Growdon Vehicle Storage Facility Contract Administration
Report Issued August 3, 2017
Audit Objective
Determine if contract administration is effective to monitor compliance with key terms of the City contract for the Growdon vehicle storage facility.
Background
The Growdon Rd. Vehicle Storage Facility (Growdon VSF), a City-owned property, is used to hold impounded vehicles. In 2008, an operations and maintenance agreement between United Road Towing, Inc. (UR) and the City was approved by City Council for a 62-month term with an optional renewal for a 2-year period. In April 2015, City Council chose to extend the contract through September 30, 2017, which coincides with another contract extension provided to UR for its auction-services agreement.
In fiscal year 2015, approximately 26,000 vehicles were impounded, while approximately 29,000 vehicles were impounded in fiscal year 2016.
An SAPD contract coordinator monitors UR's Growdon VSF operations and property management for compliance with key terms of the agreement. Monitoring activities include regular site visits as well as annual performance reviews. UR provides monthly reports to the SAPD that include a detailed list of all impounded vehicles, detailed revenue reports, and summary reports of activities at the Growdon VSF.
Audit Scope & Methodology
The audit scope was October 1, 2014 through September 30, 2016 and also included site visits performed in fiscal year 2017 (during this audit).
We reviewed monitoring efforts related to hiring practices, the release of vehicles, customer complaints, operational efficiency, environmental concerns, property maintenance, and security.
Audit Conclusions
Contract administration is effective to monitor compliance with key terms. The SAPD performed an extensive fiscal year 2015 contract compliance review and performed follow-up monitoring as needed.
However, the current contract makes SAPD's contr...
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