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In pertinent part, the memo says Earth Tech will provide professional services in two areas: "(a) procedural evaluation of current City CIP delivery policies and practices, and (b) temporary project liaison services, in which Earth Tech will facilitate work by design consultants and develop technical and administrative guidelines in order to improve the consistency and effectiveness of future consultant engagements."
Two members of the public, Thomas Murphy and John Donaldson, spoke in opposition to the deal. Neither criticized Earth Tech but both questioned spending up to a quarter million taxpayer dollars for something they indicated city staff should be expected to do.
"..I just can't figure out why the city at the present time, with all its hard working, dedicated city employees, if given half a chance, doesn't have a few capable employees that could do the same work if necessary, due to the city's financial situation," Mr. Murphy said.
Mr. Donaldson said:
"This is nothing against Earth Tech, I think they're a fine company, glad to have them in Long Beach...[but] if you go and look at the city's staffing, and the number of people in the Public Works Dept. whose sole job it is to administer and carry out capital improvement projects, there certainly are a lot of them that make more than $60,000 a year...I just am somewhat perplexed that we cannot find those talents in project management within our own city staff. They are certainly not something that is the exclusive domain of any contractor..."
Not one Councilmember discussed the proposed $250,000 expenditure publicly, none responded to the points raised by taxpayers, none questioned city staff about the six figure consulting contract. Beyond uttering a motion and a second, not one Councilmember present (B. Lowenthal, Baker, Carroll, Richardson-Batts, Grabinski, Webb & Shultz) spoke a word before casting their vote approving the deal.
However, within minutes, the Council's vote drew fire during a subsequent Council discussion of the utility tax. (Councilman Grabinski had raised the issue of capping the utility tax to avoid a City Hall windfall if underlying utility rates rise; LBCUR leaders asked this be done immediately but Grabinski proposed, and the Council voted, to first get a report from the City Manager; LBCUR co-chair John Donaldson called this a "milquetoast motion."]
During the utility tax discussion, Mr. Ron Noe, a co-chair of LB Citizens for Utility Reform, pointedly referred to the Council's approval of the consulting arrangement:
"Earlier tonight, the Council approved up to a quarter million dollars for a consulting deal with Earth Tech. This must mean that the Public Works Department was over-budgeted in the first place. This is a complete waste of the of the taxpayers' money for receiving nothing more than a glorified term paper in return."
City staff's memo indicated that of the $250,000 maximum contract amount, roughly $100,000 would be spent for "procedural [CIP] evaluation" and sufficient funds are budgeted in the Dept. of Public Works for this; the remainder of the contract would be funded within "existing appropriations for these specific [CIP] projects."
LBReport.com requested, and the LB Dept. of Public Works provided, the pertinent part of the original RFP [Request for Proposals]. A cover memo, dated November 22, 2000 from then-City Engineer Ed Putz, solicited "proposals from qualified firms to provide temporary supplemental technical and engineering staffing for its operating programs and the City's Capital Improvement Program."
In pertinent part, the RFP stated:
BACKGROUND INFORMATION The City of Long Beach Department of Public Works is responsible for the engineering, design, inspection and maintenance of all publicly owned facilities, streets and street lighting throughout the City and the tideland ares. The Department's responsibility includes both its operating programs and the City's capital improvement programs.
In an effort to increase productivity and enhance efficiency, there is a demand from time to time for temporary technical and engineering staffing. In line with this, the Department of Public Works intends to enter into temporary technical and engineering staffing agreement for a 24-month period. The Department shall reserve the right to extend the term for three consecutive years.
SCOPE OF SERVICE The City of Long Beach Department of Public Works is seeking proposals from qualified firms to provide full-service temporary technical and engineering support to the Department of Public Works. ...
Mr. Shikada told LBReport.com the consulting arrangement followed a verbal presentation by Earth Tech and subsequent negotiations between the firm and City Hall. As stated in his memo to the City Council, "In the course of evaluating the proposals received [in response to the RFP], one of the firms submitting a proposal, Earth Tech, Inc., and the City engaged in discussions of alternative means of improving staff effectiveness at completing CIP projects."
Mr. Shikada provided LBReport.com with the actual Scope of Service (six pages) that will apply to the proposed consulting arrangement. We have posted it verbatim in pdf form and it can be viewed by clicking on Proposed consulting scope of service.
Mr. Shikada indicated the sums to be paid are within the Council-approved budget for the current, now closing, 2000-01 fiscal year. The potential quarter million dollar consulting deal comes near the end of the 2000-2001 fiscal year (ends Sept. 30), just days before the Mayor is due to release the City Manager's proposed 2001-2002 budget with the Mayor's proposed recommendations.
If the Council had not obligated taxpayers for the up to $250,000 consulting contract, the unspent taxpayer money from the current budget might have been carried over to next year's budget, possibly used directly for street and sidewalk repair, other infrastructure projects or returned to the General Fund for other purposes ranging from police, to fire to libraries.
The City Council has final decision making and spending authority over the budget.