| Show Me The Money!" (Where does it all go?) | |
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(An Analysis of Consultant Fees Spent by the City of Sultan from 1/01/01 to 8/15/01) As we reported earlier, the city has paid approximately $375,000.00 in consultants' fees in the brief 8 1/2-month period from January 1, 2001 through August 15, 2001. We ask the community to keep in mind that there's a significant difference between what the city has paid in fees thus far, and what it has spent but not yet paid. Just for starters, consultants (primarily Berryman & Henigar) were forced to step in as the city's defacto planner for jobs already in the hopper when the last of the planning department cleared the city's halls in May of this year. And the planning department staff was basically induced to leave, either by overt or subtle pressures emanating from the mayor's office. Acting as temporary city planning staff, consultants' fees totaled $46,570,64 in a 3 1/2-month period. That's about $3,528.08 per week, or $14,112.32 per month, a pretty pricey employee. For purposes of comparison, the $14,112.32 per month paid to consultants compares to the 2001 budget for the entire planning department of $5,880.50 per month. If we extrapolated these fees out over the entire "non-planner" period of 22 weeks, the cost amounts to $77,617.76. Granted this is a non-linear comparison. But considering the fact many of these Berryman & Henigar invoices were for work performed before July, the total amount paid for a consultant to "act" as a city engineer will undoubtedly exceed $77,617,76, which is $7,000 more than the budgeted amount for the entire planning staff for the entire year. Even a first year Economics student could lecture the city on the cost-benefits of attracting and retaining good employees. The costs of training and replacement of staff is prohibitive, a "hidden" expense which does not get recorded in any way as a budget line item, except as it appears in other categories, such as when temporary help is hired, in this case, consultants. One basic rule of thumb is: Temporary help always, always, always costs more. Total 2001 fees paid to Berryman & Henigar, the city's "favorite" consultant, amounted to $254,517. And despite the obvious advantages of using the more cumbersome but cost-effective RFQ and contract selection process, their services were utilized by the city for nearly everything:
LID-97-1 Expenses: An Earth Tech budget of $743,766 for engineering and professional services on the LID-97-1 was fairly well maxed out this year. A U.S. Dept. of Agriculture Rural Development contract for $1,501,878.60 is also pretty well depleted (Earth Tech shows as the engineer and Thomco Construction Co., the contractor.) One thing is clear from this study: The city's growth and development was allowed to get out of control too fast, and it's spending too much on consultant fees in order to do it. These fees are being shouldered by the community. Awhile back the pro-Rowe, pro-development contingent in town made a big stink about the amount the council approved for an ESA consultant to help us over the rocky shoals of complying with the ESA 4d Rule. The price was $50,000. After looking at what the city spends in consultants' fees on development projects and "redo's" for screw-ups in an 8-month period, I would have to say that that $50K price tag seems like fairly inexpensive "insurance" to make certain we "do it right the first time." (Memory-jogger: Remember the Wagley Creek LID and Willow Run "disasters.") _______________________________________________________ NOTES ON TRYING TO "NAVIGATE" IN EXCEL: You can sort and resort these listings. You can resort them to appear by the consultant's name, dollar amount, date, project name, or other header category. To resort the entire list, do the following:
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View the Consultant Fee Date (Excel file)
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