The city will pay for all cost overruns…

1. Cost Overruns. All cost overruns shall be the responsibility of the Grantee.

Grantee is the city this is found on page 9 of the nsp 1 awarded pdf found on the city website. The city is allowed 10% of the grant to go towards administration of the grant around 160,000.00.  If the city goes over that the overruns will be paid from the general funds. That brings me to this just how much has been spent on the administration of this grant? The city is at the half way mark on this grant program.

Based on documents obtained from the city the city has spent:

McKenna 126,533.00 the cities third-party administers

Allen Brothers the law firm doing work on the NSP grant 46,478

Total: 173,478.00

Based on this the city has gone over the 10% allowed with more invoices to come. The invoices we have are up until November of 2010. All have been approved by the council to be paid. This coming council meeting the council is going to be asked to pay more money in progress payments. These payments are for the contractors that are doing work on the NSP Grant program. The NSP Grant program manager stated in the last meeting in December that she has not paid the contractors because the council said they did not want to spend any more money. Was taken aback that not one council member pointed out to her that they did not vote to stop payments. If you remember councilwoman Horvath made the motion to do just that, but council turned it down. The city bought homes for 347,862.93 the city put in for 150,000.00 on December 6 2010 not even covering the purchase price of the homes bought. After all of this time why has the city not gotten the money back for the homes purchased? If they do not put in for the price of the homes purchased how will they get it back.

I know I keep talking about this, but with the city having a short fall in the budget we do not even know how this is affecting the budget. The fact that over 800,000.00 has been spent from the general fund with nothing coming back. Add to that any overruns are going to be picked up out of the general fund and  still more to be paid out to contractors. This is going to have an effect on the budget we keep spending and nothing is coming in.

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1 thought on “The city will pay for all cost overruns…”

  1. After watching the latest City Council meeting, I have come to the conclusion that our once proud council is withering, not because they lack the knowledge, character, or the courage to stand against the powers-that-be, but because they have become exhausted in a deluding, broken system controlled by the mayor.
    The Council has to finally admit that the system, (the city, the citizens) they are sworn to uphold has become a mockery, that the justice is beyond their reach, and the citizens have given up their right to full justice as our City Council wanes.
    Now what?

    Like

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