The fact that the costs are reimbursable by the developer does not eliminate the underlying governance concern. Public contracting procedures exist to ensure transparency, authorization, accountability, and proper oversight regardless of the ultimate funding source.
The Council is effectively being asked to retroactively approve work that exceeded previously authorized limits because the City received the benefit of those services. While that may ultimately be a reasonable outcome under the circumstances, it should not occur without a clear explanation of what failed procedurally and what corrective measures have been implemented.
Ratification may resolve the accounting issue, but It does not, by itself, resolve the underlying process issue and the general sloppiness and execution of these agreements.
I respectfully request that staff provide additional clarification regarding the internal control deficiencies that led to this situation and the steps being taken to ensure it does not recur, or tolerated as an ongoing, permissive approach amongst rank-and-file City staff.
Thank you for your consideration.
Sincerely,
Henry Soong