HomeMy WebLinkAbout2017-017 Consultant Expenses-Capital ProjectDate: March 3, 2017
Report No. 2017-017
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
This is a report of expenses for outside consultants and professional services for the City's capital
project funds.
EXECUTIVE SUMMARY:
The purpose of this report is to provide the Mayor and City Council with a report summarizing
expenses for outside consultants and professional services for the City's capital project funds in
the last two fiscal years. There is no action necessary as this report is for informational purposes
only.
BACKGROUND:
This report has been prepared at the request of the city Council. This report is only for expenses
associated with capital projects. It shows expenses by general category for the last two fiscal years.
This information was obtained by reviewing all of the payments in the capital proj ects funds during
the fiscal year sorted by individual vendor. It shows purchase orders by general category and the
dollar amount of the full purchase order is based on the fiscal year in which the service was
approved. In many cases the actual payments for these services may occur over of period of one
year or longer. The summary also shows the full amount of the purchase order, but some projects
may not spend the full amount.
DISCUSSION:
Below is a table displaying major areas of expenses for outside consultants and professional
services in capital project funds during fiscal year 2014-15 and 2015-16. The total capital project
fund expenditures for FY 2014-15 was $116,980,123 and in FY 2015-16 was $129,959,215.
Category
Engineering and Architectural Design
Land, Survey and Appraisal Services
Legal Services
Construction Testing Services
Other Services*
Total
FY 2014-15 FY 2015-16
$ 10,039,622 $ 5,778,038
91,723 229,480
551,118 130,000
453,568 200,420
747,989 446,851
$ 11,884,020 $ 6,784,789
Percent of Total Capital Expenditures
1016% 5.22%
*Other services include utility studies, software implementations, rate studies and cost allocation studies.
Date: March 3, 2017
CONCLUSION:
Report No. 2017-017
These expenses are in line with expectations for a range of 8% to 15% of capital project
expenditures to be related to design and other professional services. This percentage can vary
significantly from year to year depending on the timing of engineering contracts versus
construction contracts. After reviewing the expenses in these categories, and considering the types
of services received, staff concluded that no personnel or contract modifications are necessary.
Please do not hesitate to contact me if you have any questions regarding this report.
STAFF CONTACT:
Chuck Springer, Director of Finance
940-349-8260
Charles. Springer@cityofdenton.com