The City of Edmonton spent $580M on consulting services from 2015-2019
By
Mack Male
Between 2015 and 2019 the City of Edmonton spent more than $580 million on professional consulting services, about three quarters of which was for capital projects, according to a new report.
The report follows an audit conducted in 2018 which found that the City of Edmonton spent $616 million on consulting services from 2013-2017, about 72% of which was for capital projects. The city auditor also found that frequent contract amendments — created when work is added, removed, or modified from an original contract — added 72% to the budgeted amount for consulting services. A motion passed in December 2018 directed administration to reduce the overall external services budget between 2019 and 2022.
According to the new report, the City of Edmonton spends about 1.2% of the operating budget and 9.0% of the capital budget on consulting services each year.
The report also shows that 944 total contract amendments were administered from 2015-2019. Of those, 544 were planned with a total value of $318 million while 400 were unplanned with a total value of $59 million.
Administration says that the COVID-19 pandemic resulted in one-time decreases of $16 million in 2020 and $2.8 million in 2021 for consulting and contractor costs. The report also says that consulting services were reduced by $3.7 million per year during last year's budget process and that administration continues to "seek contract savings from all active contracts" with progress to be reported in the spring.
Also coming up at council
Here are some of the other notable agenda items coming before city council for the week of March 1-5:
- The City of Edmonton is looking to extend the 24/7 temporary pandemic accommodation at the Edmonton Convention Centre until April 30 at a cost of $2.2 million. The facility continues to support an average of 618 visits per day for drop-in day services and 260 visits per night for overnight shelter. Council previously approved $8.5 million for the shelter in October 2020.
- Administration does not recommend the use of tax increment financing (such as a community revitalization levy) to help fund the construction and operation of LRT lines arguing it would "distort property taxation" and put pressure on taxes in future years, and that it "bypasses council's capital budget prioritization process."
- A sole source contract worth $459,000 with NEC Corporation of America for facial recognition technology was among the $1.3 million in non-competitive agreements entered into by the Edmonton Police Service between July 1 and Dec. 31, 2020.
- There are 78 approved plans containing undeveloped park sites. The 2019-2022 capital budget includes $17.2 million for new park development, but a 10-year capital investment outlook estimates the total cost of 214 new or redeveloping parks at $379.9 million.