Regarding the Transportation Development Act Triennial Audit:

1. AUTHORIZE the Executive Director to execute an agreement with Michael Baker International, Inc. for the Transportation Development Act Triennial Audit project in an amount not to exceed $34,972 to provide audit services for the period ending June 30, 2016;
2. APPROVE the use of Local Transportation Development funds budgeted to this project; and
3. AUTHORIZE the Executive Director to make administrative changes to the agreement if such changes do not increase the Agency’s net cost, subject to approval by Agency counsel.

The Transportation Agency released a Request for Proposals for the Transportation Development Act Triennial Audit. The Agency received three proposals. The review committee, composed of Transportation Agency staff and Monterey-Salinas Transit staff, recommends Michael Baker International, Inc., for the project.

Pursuant to state law, the Transportation Agency contracts with an independent auditor to complete and submit transit performance audits to Caltrans every three years in its role as the administrator for Transportation Development Act funds in Monterey County. The performance audits evaluate the efficiency and effectiveness of transit operators receiving Transportation Development Act funds based on guidance in the latest performance audit guidebook published by Caltrans. The audit also evaluates the administrative functions undertaken by the Transportation Agency.

Generally, the audits review financial and operating reports to determine compliance with minimum state operating requirements (farebox recovery thresholds, explanation of operating cost increases) and administrative requirements (including timely submittal of required financial documentation, and documentation that the Agency annually identified and evaluated unmet transit needs). Any recommendations to correct findings identified in the audits must be implemented in the next three-year audit period.

Staff published the Request for Proposals for the Design of Transportation Development Act Triennial Audit to the web and emailed a notice to the consultant database on April 29, 2016. On May 13th and 23rd staff published to the web an addendum to the RFP with responses to questions, and emailed a notice to the mailing list.

On June 2nd, three proposals were received by the noon deadline. The proposals were from:

· LSC Transportation Consultants

· Michael Baker International, Inc.

· Moore and Associates

The review committee comprised of Transportation Agency and Monterey-Salinas Transit staff reviewed and ranked the proposals based on the criteria listed in the Request for Proposals: 

1. Staff experience in the preparation of and knowledge of the requirements for Transportation Development Act Triennial Performance Audits (40 points)
2. Proposed work plan approach (30 points) 
3. Cost (20 points) 
4. References from past clients (10 points) 

The committee was unanimous in recommending Michael Baker International, Inc. for the audit contract.

The review committee was impressed by Michael Baker, International, Inc.’s expertise in Transportation Development Act guidelines and auditing. Michael Baker International’s auditing team, previously with PMC Consultants, conducted the Transportation Agency’s last triennial audits. In addition, the review committee was impressed by the detailed work plan put forth in the recommended firm’s proposal.

Michael Baker International, Inc. included requests for contractual exceptions and deviations in its proposal. Agency counsel reviewed the requested exceptions and deviations, and approved modifications to the standard template in order to provide Michael Baker International, Inc. with clarification for the terms of payments, termination, insurance requirements, and confidentiality of data and records. The final Scope of Work is attached.