Rating: NNNNN
If it weren’t for the way Mayor Mel’s team threw big money at consultants, taxes wouldn’t have gone up and we wouldn’t be in this financial mess.
CONSULTANT CHA-CHING
Total that city staff says it paid consultants:
what the amalgamated city spent on Y2K consultants in the last three years: $160 million
amount taxes go up for every $10 million council has to raise to meet a budget shortfall: 1 per cent
what the city auditor said about the total 1998 and 99 consulting expenditures staff reported to council: They are misstated.
WHO’S ON THE GRAVY TRAIN?
Ball Hsu and Associates
value of 2000 contract: $2.1 million
what city paid: $10 million
Network Architecture
Value of 2000 contract: $260,000
What city paid: $869,442
Beacon Software
Value of 2000 contract: $180,000
What city paid: $535,807
Remarkable Software
Value of 2000 contract: $100,000
What city paid: $439,757
value of one consulting contract awarded to two former city employees for 2001 alone: $344,000
pay while each was city staff (including benefits): $80,000-$100,000 annually
Contract limit for IT desktop support consultant for the first six months of 2001: $1 million
amount each “support” person was paid: $50 per hour
amount city staffer is paid for same job: $32 per hour
City auditor’s thoughts on hiring staff as opposed to consultants: “In many cases, significant cost savings could be realized through in-sourcing, particularly in situations where there may be an ongoing requirement for certain skills or expertise.”
THE COST OF MISMANAGEMENT
Number of city staff laid off since amalgamation: approximately 2,000
total budget shortfall in 2000: $50 million (after cuts and provincial bailout brought it down from over $300 million)
Total tax increase in 2000: 5 per cent
projected shortfall for 2001: approximately $200 million
WHO GIVES OUT THE GOODIES?
Chief Administrative Officer can authorize payments up to $500,000. Conditions: None
Commissioners can authorize payments up to $250,000 where approved procurement procedures have been followed and up to $50,000 where normal purchasing procedures are not possible.
General Managers, Executive Directors, Fire Chief, City Clerk, Medical Officer of Health, City Solicitor and City Auditor can authorize payments up to $250,000 where approved procurement procedures have been followed and up to $25,000 where normal purchasing procedures are not possible.
CLOSING THE WALLET
What city council has recommended: All consulting contracts above $50,000 be approved by council.
What the city’s new CAO, Shirley Hoy, is doing to halt the consultant gravy train: Staff will now have to make a case for hiring a consultant.