Close
About
FAQ
Home
Collections
Login
USC Login
Register
0
Selected
Invert selection
Deselect all
Deselect all
Click here to refresh results
Click here to refresh results
USC
/
Digital Library
/
University of Southern California Dissertations and Theses
/
Evaluation of professional services consultants in rural government
(USC Thesis Other)
Evaluation of professional services consultants in rural government
PDF
Download
Share
Open document
Flip pages
Contact Us
Contact Us
Copy asset link
Request this asset
Transcript (if available)
Content
INFORMATION TO USERS
This manuscript has been reproduced from the microfilm master. UMI films
the text directly from the original or copy submitted. Thus, some thesis and
dissertation copies are in typewriter face, while others may be from any type of
computer printer.
The quality of this reproduction is dependent upon the quality of the
copy submitted. Broken or indistinct print, colored or poor quality illustrations
and photographs, print bleedthrough, substandard margins, and improper
alignment can adversely affect reproduction.
In the unlikely event that the author did not send UMI a complete manuscript
and there are missing pages, these will be noted. Also, if unauthorized
copyright material had to be removed, a note will indicate the deletion.
Oversize materials (e.g., maps, drawings, charts) are reproduced by
sectioning the original, beginning at the upper left-hand comer and continuing
from left to right in equal sections with small overlaps.
Photographs included in the original manuscript have been reproduced
xerographically in this copy. Higher quality 6" x 9” black and white
photographic prints are available for any photographs or illustrations appearing
in this copy for an additional charge. Contact UMI directly to order.
ProQuest Information and Learning
300 North Zeeb Road. Ann Arbor, Ml 48106-1346 USA
800-521-0600
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
NOTE TO USERS
Page(s) missing in number only; text follows. Page(s)
microfilmed as received.
78
This reproduction is the best copy available
UMI'
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
EVALUATION OF PROFESSIONAL SERVICES
CONSULTANTS
IN RURAL GOVERNMENT
by
Terry Winslow Curl
A Dissertation Presented to the
FACULTY OF THE SCHOOL OF POLICY,
PLANNING, AND DEVELOPMENT
UNIVERSITY OF SOUTHERN CALIFORNIA
In Partial Fulfillment of the
Requirements for the Degree
DOCTOR OF PUBLIC ADMINISTRATION
August 2000
Copyright 2000 Terry Winslow Curl
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
UMI Number: 3054860
Copyright 2000 by
Curl, Terry Winslow
All rights reserved.
_ _ _ _®
UMI
UMI Microform 3054860
Copyright 2002 by ProQuest Information and Learning Company.
All rights reserved. This microform edition is protected against
unauthorized copying under Title 17, United States Code.
ProQuest Information and Learning Company
300 North Zeeb Road
P.O. Box 1346
Ann Arbor, Ml 48106-1346
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
UNIVERSITY OF SOUTHERN CALIFORNIA
SCHOOL OF POLICY. PLANNING. AND DEVELOPMENT
UNIVERSITY PARK
LOS ANGELES. CALIFORNIA 90089
This dissertation, written by
.Te r r y .Wins low .C u rl
under the direction o f hi? Dissertation
Committee, and approved by all its
members, has been presented to and
accepted by the Facility o f the School o f
Policy, Planning, and Development, in
partial fiufillment o f requirements fo r the
degree o f
DOCTOR OF PUBLIC ADMINISTRATION
M y^
< 3 < 3
Dean
Date
DISSERTATION COMMITTEE
Chairperson
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission
ACKNOWLEDGEMENTS
I would like to express my gratitude to the members of my dissertation
committee: Professor Chester A. Newland (Chair), Ross Clayton, and Francis V.
Yanak.
Many colleagues and friends have supported me in this endeavor. I would
also like to thank the 70-plus dedicated public servants who endured my one to
two hour interview sessions. Their true professionalism provided me the
essential empirical data for this research.
To my wife, Kandace K. Curl, and children (Hollee E. Curl, Amber S. Curl,
and Tobias H. Curl), who have expended much time, patience, and sacrifice on
my behalf-thanks for always being there.
My research partners: Dr. Helen Lake, Dr. Denise Kent, Dr. Francis
Yanak, and Diane Paque, provided the loving assistance, encouragement, and
moral support I needed. I cannot thank Dr. Francis Yanak enough for his many
telephone calls of encouragement.
I wish to thank Laurie Schwabe, technical writer, for her editing, typing,
and weekly telephone calls challenging me to get this dissertation done.
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Finally, I would like to thank John R. (Jack) Selvage, CEO of SHN
Consulting Engineers & Geologists, Inc., who allowed me time during my duties
as Regional Manager and Director of Marketing for SHN to accomplish many of
the interviews with the various agencies.
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
TABLE OF CONTENTS
Page
ACKNOWLEDGEMENTS........................................................................................... II
LIST OF ILLUSTRATIONS.......................................................................................XII
LIST OF TABLES.................................................................................................... XIII
ABSTRACT..............................................................................................................XIV
CHAPTER 1. INTRODUCTION................................................................................. 1
Background......................................................................................................1
Researcher's Experience............................................................................... 4
Theoretical Foundations................................................................................. 5
Additional Research Questions..................................................................... 6
Definition Of Term s.........................................................................................8
What This Research Does Not Cover......................................................... 12
End Notes......................................................................................................13
CHAPTER 2. LITERATURE REVIEW......................................................................14
Agency Theory.............................................................................................. 14
Positivist Perspective............................................................. 18
Principal-Agent Perspective................................................... 18
Accountability.....................................................................................19
High Performing Consultants.......................................................................23
iv
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
TABLE OF CONTENTS, CONTINUED
Page
Management Levels Compared To Skill Levels.........................................24
End N otes..................................................................................................... 26
CHAPTER 3. METHODOLOGY AND CITY/AGENCY DESCRIPTIONS AND
ASSESSMENTS........................................................................................................28
Methodology..................................................................................................28
Interviews...................................................................................................... 29
Northern California Cities-Descriptions And Researcher’s
Assessment................................................................................................... 31
City of Areata..........................................................................31
City of Eureka.........................................................................34
City of U kiah...........................................................................35
Town of Windsor.................................................................... 35
City of Santa Rosa................................................................. 36
City of Rohnert P ark.............................................................. 37
City of Petaluma.................................................................... 38
City of Napa............................................................................39
City of Davis............................................................................40
City of W oodland................................................................... 41
City of Yuba C ity.................................................................... 42
City o f South Lake Tahoe......................................................43
v
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
TABLE OF CONTENTS, CONTINUED
Page
City Of Chico........................................................................... 45
City Of Redding......................................................................46
Selected Other Agencies............................................................................. 47
Summary Observations Of Cities And Selected Agencies In The
Research........................................................................................................50
End N otes..................................................................................................... 52
CHAPTER 4. SUMMARY AND COMPARISON OF INTERVIEW RESULTS 58
Introduction................................................................................................... 58
Interview Results Keyed To Survey Questions.......................................... 59
Length And Nature Of Involvement With Consultants......... 59
Criteria For Determining When To Use Consultants........... 60
Process For Selecting Consultants....................................... 61
Type Of Contractual Instruments Used.................................63
Methods Used To Monitor Consultant Progress..................63
Methods Used To Evaluate Consultant Performance......... 64
Attributes Of Outstanding Consultants..................................66
Attributes Of Unsatisfactory Consultants..............................67
Memorable Experiences With Consultants...........................70
Plans For Using Consultants In The Future......................... 71
vi
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
TABLE OF CONTENTS, CONTINUED
Page
Desired Changes In Policy Or Procedure In Using
Consultants............................................................................. 71
End Notes......................................................................................................72
CHAPTER 5. REPRESENTATIVE PROJECTS IDENTIFIED FROM
SELECTED NORTHERN CALIFORNIA CITIES...................................................... 79
Introduction................................................................................................... 79
City Of Eureka............................................................................................... 79
Case 1. Adorni Memorial Recreation C enter...................... 79
Case 2. Eureka Small-Boat Basin.........................................84
C ityO fU kiah................................................................................................. 87
Case 3. General Plan Update.............................................87
Town Of W indsor.......................................................................................... 89
Case 4. Pleasant Oaks Park Development..........................89
City Of Petaluma........................................................................................... 90
Case 5. Airport Master Plan................................................90
Cities Of Woodland And Eureka...................................................................91
Case 6. Comparison of General Plan Update Projects.... 91
Yuba City........................................................................................................93
Case 7. Water Master Plan Update..................................... 93
vii
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
TABLE OF CONTENTS, CONTINUED
Page
City O f Redding............................................................................................ 95
Case 8. Project Management Of A New Town Center 95
Summary Of Successful Cases................................................................... 96
Summary Of Unsuccessful Cases...............................................................98
End Notes.....................................................................................................99
CHAPTER 6. COMPARISON OF RESEARCH RESULTS WITH
THEORETICAL FOUNDATIONS........................................................................... 101
Introduction.................................................................................................101
Comparison Of The Research Results With Agency Theory..................102
Eisenhardt's Ten Propositions (Agency Theory) Compared With
Research Results....................................................................................... 104
Positivist Stream.................................................................. 106
Principal-Agent Stream........................................................107
Accountability..............................................................................................111
High Impact Consultants............................................................................114
Management Levels Compared To Skill Levels....................................... 118
End Notes................................................................................................... 122
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
TABLE OF CONTENTS, CONTINUED
Page
CHAPTER 7. GENERIC MODEL FOR LOCAL GOVERNMENTS IN
SELECTING, MONITORING, AND EVALUATING PROFESSIONAL SERVICE
CONSULTANTS..................................................................................................... 123
Introduction.................................................................................................123
Determination Of The Local Government Agency's Need For
Professional Service Consultants.............................................................. 124
Staff Capacity...................................................................... 124
Consultant Selection Policy................................................ 124
Determining The Method For Consultant Selection..................................126
Determining Selection Criteria................................................................... 128
Selecting An Evaluation Committee..........................................................129
RFQ Advertisement....................................................................................130
Selection Committee Proceedings............................................................131
Consultant Selection And Local Government Approval........................... 133
Negotiating And Developing A Contract With Top Consultant................. 134
Keeping The Governing Board Informed...................................................136
Monitoring The Consultant's Progress......................................................137
Evaluation And Acceptance Of Consultant's Work...................................140
ix
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
TABLE OF CONTENTS, CONTINUED
Page
CHAPTER 8. CONCLUSIONS.............................................................................. 142
Introduction................................................................................................. 142
Research Outcomes And Research Findings...........................................142
Theoretical Foundation And Comparison Of Results...............................145
Agency Theory......................................................................146
Accountability........................................................................146
High Performing Consultants...............................................147
Non-High Performing Consultants...................................... 148
Management Levels Compared To Skill Levels................. 149
Summary O f The Research Results................................... 149
Process For Determining The Need, Selection, And Evaluation Of
Consultants................................................................................................. 154
Future Research.........................................................................................154
Use Of This Research................................................................................ 156
REFERENCES....................................................................................................... 157
Books...........................................................................................................157
Journal Articles............................................................................................159
Interviews.................................................................................................... 160
Newspaper Article.......................................................................................165
x
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
TABLE OF CONTENTS, CONTINUED
Page
Miscellaneous............................................................................................. 165
Dissertations.........................................................................165
Conference Proceedings..................................................... 166
Government Documents...................................................... 166
APPENDICES
A. Northern California Cities.............................................................................168
B. Selected Other Agencies, State University, Community College,
State Agency, Special Districts, And One Small C ity................................. 200
xi
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
LIST OF ILLUSTRATIONS
Page
3-1. Map Of 14 Northern California Cities Included In This Research...............32
3-2. Map Of Nine Northern California Agencies And One City With A
Population Under 15,000 Included In This Research................................ 49
6-1. Weekly Consultant Report...........................................................................104
8-1. Consulting Flow Diagram, Including Important Points Derived From
The Research Results................................................................................ 155
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
LIST OF TABLES
Page
2-1. Relationship Between Management Levels And Skill Levels.........................25
4-1. Cities And Agencies Interviewed For This Research.................................... 58
4-2. Summary Of All City And Selected Agency Staff Experience Working
With Professional Services Consultants....................................................... 59
4-3. Reasons For Using Consultants.....................................................................60
4-4. City Policies For Using Consultants...............................................................62
4-5. Monitoring Of Professional Services Consultants' W ork............................... 63
4-6. Evaluation Of Consultants’ Work At End Of Contract.................................... 65
4-7. Attributes Of An Outstanding Consultant....................................................... 67
4-8. Attributes Of An Unsatisfactory Consultant.................................................... 68
4-9. List Of Representative Case Studies............................................................. 70
4-10. Plan For Using Professional Consultants In The Future................................71
6-1. Relationship Between Management And Skill Levels: Comparison Of
Theoretical And Research Results...............................................................119
7-1. Suggested Consultant RFQ Selection Criteria.............................................128
8-1. Summary Of Research Results.....................................................................150
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
ABSTRACT
This research evaluates uses of professional services consultants by non-
metropolitan cities of Northern California and by selected agencies in the region.
Fourteen cities with over 15,000 population and nine agencies are analyzed,
drawing on interviews with over 70 local governmental managerial staff and on
collection and analysis of policies and procedures employed in use of
consultants. Case studies of representative projects are developed.
Agency Theory and Accountability frameworks are the two chief
theoretical foundations tested. Characteristic behaviors and attitudes of effective
and ineffective consultants, from cities' and agencies' perspectives, are identified
and analyzed. Needs are demonstrated for specific provisions for employing,
monitoring, and evaluating consultants.
A generic model for effective utilization of professional services
consultants is developed. Additionally, distinct characteristics of effective
relationships are identified and analyzed. These include the following:
• The contract between the local government (principal) and the
consultant (agent) must be clear and specific.
• Both project managers (governmental and consultant) must have
clearly defined responsibilities and effective interpersonal skills.
xiv
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
• A strong, positive relationship and open, ongoing communications
between the two project managers is pivotal to a successful
outcome.
• Both project managers must be empowered to make the project
successful and must be held accountable for their specific
contractual responsibilities.
• Successful projects must receive full support and participation from
elected officials and staff, from concept through completion.
• Qualifications-based consultant selection is more successful than
fee-based selection.
• Local governments should consider open-end contracts with consultants
and inclusion of incentives in their consultant contracts.
• Local governments should provide more approval authority ($100,000) for
staff (city manager) to select consultants.
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
CHAPTER 1. INTRODUCTION
BACKGROUND
After the passage of Proposition 13 in the late 1970’s, California’s cities
initially suffered a decline in revenue and limits on increases thereafter. Despite
revenue limitations, citizens are demanding even more services (police, fire,
engineering, and development). Furthermore, federal, state, and local
governmental regulatory agencies remain firm on mandated requirements but
offer limited assistance to local governments to meet them. Prior to the 1980's,
cities attempted to meet the many demands placed on them by depending mainly
on staff. However, local governments and elected officials in non-metropolitan
areas of Northern California are reluctant to employ more full-time staff because
o f additional expenses (salaries, benefits, and training), and once personnel have
attained permanent civil servant status, they are difficult to remove.
Today, cities with limited budgets are using private professional services
consultants more to satisfy citizen demands, regulatory requirements, and high-
technical standards. Consultants have the experience and expertise for getting
specific tasks accomplished in a timely manner. A further incentive to use
consultants is that, once a consultant has completed the contract requirements,
both the city's and consultant's obligations are complete.
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
California cities use consultants to fulfill a variety of needs:
• Feasibility Studies
• Planning (Downtown Revitalization, California Environmental
Quality Act Requirements, Environmental Impact Reports/Studies)
• Audits
• Infrastructure (Project Management, Program Management,
Design, Construction Management, Inspection)
• Management Evaluations (Re-Engineering, Strategic Planning)
Based on the researcher’s over 30 years of experience as well as the
results of this study, it is clear that the cities use the largest number of
consultants in the professional areas of planning, infrastructure (architecture and
engineering), finance, and audits. An accepted definition of “professional
services" includes those provided by a professional (attorney, accountant,
architect, certified inspector, engineer, planner, or other professional) that require
specialized training, certification, registration, or expertise, to furnish specialized
deliverables (studies, research, design, construction, and so on) (Eureka, 1995).
Ken Blackman, City Manager for the City of Santa Rosa for 27 years,
stated: “We use professional services consultants frequently because my staff
does not have the time or the technical expertise, and we need a neutral party to
help us clearly and objectively analyze our complex challenges" (1997).
2
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Both Osborne (Reinventing Government, 1992) and Gore (National
Performance Review, 1993) emphasized the need for government to operate
more like the private sector. By cities properly using private-sector consultants,
they take advantage of external technical expertise and experience to provide
effective and efficient services to their citizens.
This research examines use of professional services consultants in
planning, architectural, and engineering areas by fourteen (14) Northern
California cities in non-metropolitan/rural areas. The cities selected are north of
San Francisco and have populations of 15,000 or more. A population of 15,000
or more is considered large enough to require significant use of consultants
because of the large and aging infrastructures and development needs
compared to those of smaller cities of less than 15,000. The fourteen (14) cities
studied are:
Areata • Rohnert Park • Yuba City
Eureka • Petaluma • South Lake Tahoe
Ukiah • Napa • Chico
Windsor • Davis • Redding
Santa Rosa • Woodland
Furthermore, for the purposes of comparison, this research evaluates nine
(9) other governmental agencies. These agencies often use consultants
because of their limited budgets and personnel; they offer insights into similarities
and/or differences as to consultant use and effectiveness.
3
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
These agencies are:
• California Department of Transportation
• City of Crescent City
• College of the Redwoods
• Humboldt Bay Harbor, Recreation, and Conservation District
• Humboldt County Public Works
• Humboldt Municipal Water District
• Humboldt State University
• Humboldt T ransit Authority
• McKinleyville Community Services District
All of these agencies are in Humboldt County, except the City of Crescent
City, which is the county seat of Del Norte County.
In California, over fifty percent (50%) of professional services consultants
used by local governments are planners, architects, or engineers. Therefore, this
research only considers these three areas of expertise.
RESEARCHER'S EXPERIENCE
The researcher’s experience covers several perspectives of the research.
He spent twenty-one (21) years as a U.S. Army Corps of Engineers Officer (1966
-1 9 8 9 ). He worked all over the world on engineering projects. During eight (8)
of those years, he was a contracting officer for two Corps of Engineers Districts
(Mobile and San Francisco) and was involved in the selection and hiring o f both
4
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
planning and engineering consultants on large federal projects. Second, after
leaving the U.S. Army, the researcher spent four (4) years (1989 - 1993) as
Assistant City Manager for the City of Eureka, California. He was responsible for
many projects, and was involved in selecting and using professional services
consultants. Finally, during the six (6) years between 1993 and 1999, he has
worked as a project manager and principal engineer with a small, private
consulting engineering firm in Eureka and now with a private international
environmental engineering consulting firm with 3,500 personnel. During both
private engineering experiences, he has provided professional services
consulting (engineering and planning) for local governments. Thus, the
researcher brings significant consulting engineering and planning experience to
this research, both in using consultants and in being a consultant for local
governments.
THEORETICAL FOUNDATIONS
The theoretical foundations for this research consist principally of Agency
Theory and Accountability. The research is from a local government manager
and staff perspective. Specifically, this research addresses the fundamental
question: How can local government city managers, department directors,
and staff (as the principal) make the most effective use of professional
(planning, architectural, and engineering) service consultants (as agent) to
meet the many requirements of their citizens?
5
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
ADDITIONAL RESEARCH QUESTIONS
1. What are important factors in evaluating the need to use professional
services consultants in cities?
2. What are important considerations in selecting and monitoring the
performance of professional services consultants?
3. Based on the research empirical data, what is a model and framework for:
A. determining the need for consultants,
B. developing the criteria for using and selecting consultants,
C. measuring the progress of the consultant's work, and
D. evaluating the performance of consultants once their work and
contracted obligations are completed?
In “Chapter 2: Literature Review,” the theoretical concepts of Agency
Theory, Accountability, and others are presented from the perspective of
organizational behavior. These concepts constitute the primary foundation for
this research and set its theoretical perspective and framework.
Chapter 3 presents the methodology of this research. The chapter also
includes a summary of the information gathered from interviews with managerial
level staff from the fourteen (14) non-metropolitan/rural cities. Finally, the last
part of the chapter summarizes information derived from interviews with staff
from selected other Northern California agencies (a state university, a community
college, California Department of Transportation, special districts, and a small
6
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
city with a population of less than 15,000). Interview results from these other
agencies are compared to the results from the fourteen (14) cities for additional
insights.
A comparison and analysis of the cities and selected agencies is
presented in Chapter 4. Based on discussions with representatives from the
various cities and agencies, Chapter 5 examines selected cases that highlight
important information regarding the use of consultants. Based on these results,
a comparison with the research's theoretical foundations is presented in Chapter
6. Chapter 7 presents a model for selection, monitoring, and getting the "best
results for the dollar" from selected professional services consultants.
Conclusions and suggestions for further research complete the last chapter
(Chapter 8).
Descriptions of each of the fourteen (14) Northern California cities are
presented in Appendix "A.” These descriptions include general information on
each city, its use of selected criteria for the selection of consultants, identification
of city staff interviewed, and summaries of interview results.
Appendix B presents a description of other public agencies (a state
university, a community college, California Department of Transportation, special
districts, and a small city with a population of less than 15,000) using
professional services consultants. The information includes a brief description of
each governmental agency, current consultant policies, and staff interview
results.
7
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
DEFINITION OF TERMS
Accountability: Answering to a higher authority in the bureaucratic
organization chain-of-command, as well as the implementation of laws, rules,
and regulations.
Adverse Selection: Misrepresentation of ability by consultant (agent).
Agency Theory: A theory that focuses on the relationship between the
principal and agent, where the principal is the purchaser and the agent is the
supplier of goods or services. Agency Theory assumes that, in life, there are
buyers of goods and services (principals) and providers of goods and services
(agents). The relationship between the two (principal and agent) is governed by
a contract that specifies responsibilities for each participant. For this research,
the local government is the principal and the professional services consultant is
the agent.
Agent: In this research, the agent is the professional services consultant.
Bait and Switch: A process by which consultants offer the services of a
senior, more experienced and/or well liked employee or principal (usually in the
proposal) to get the job (BAIT), then change project team members after they
have the job (SWITCH) to make a larger profit.
City Staff: Local government appointed employees (managers,
department directors, professional and technical city employees, and other
appointed employees).
8
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Deliverable: A specific item (design, report, presentation, or product) that
has been specified in a contract.
G overning Board: Local government elected officials (city councils,
commissioners, and supervisors).
Liquidated Damages: Monetary penalties (usually a percentage of the
contract total) that are imposed on consultants and contractors for each day
beyond the project’s scheduled completion.
Local Governm ent: Local elected and appointed government staffs that
cover a specific geographic area and/or function (city government, special water
district, county government, and so on).
Lum p Sum: Total dollar amount to fulfill all contract requirements. This
type of fee is usually a one-time payment at the end of the contract; although, for
contracts that extend over a long period, lump sum contracts may be paid out in
a series or payments, according to milestones met.
M ilestones: Defined due date for a contractual deliverable.
M oral Hazard: A lack of effort on the part of the consultant (agent).
Nickel and Dime: A technique used by consultants to get more money
from the governmental agency. The consultant puts in change orders and bills
for every change or addition, no matter how insignificant. Note: While
consultants are "for profit," there is a basic difference in attitude between
consultants that provide effective and efficient service for the contracted, fair
9
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
price and those that add costs for every little change. This practice seems to be
a result of the "idea" that governmental agencies have bottomless pockets.
Open-End C ontract: A type of contract that a local government would
use for multiple, different, unique tasks provided by consultants. For example, a
city would select a large, multi-talented consultant for two years, for a maximum
fee (not a guaranteed minimum) of $2,000,000. As specific projects evolve,
individual work orders for specific work items and dollar amounts, would be
issued to the consultant. Open-end contracts provide flexibility to the local
government and save time and the expense of solicitations because formal
selections are not required for each work order.
O rganizational Behavior: Concerned with the understanding, prediction,
and management of human behavior in organizations.
O ut Year: Future budget year-not the current year.
P o sitivist (Agency Theory): Perspective of Agency Theory that focuses
on identifying situations in which the principal and agent are likely to have
conflicting goals; it then delineates the governance mechanism that limits the
agent's self-serving behavior. It is not mathematically rigid and is mainly for
owners and managers of large, public corporations and is useful in identifying
various contractual alternatives.
P rincipal: In this research, the principal is the local governmental agency.
P rincipal-A gent (Agency Theory): Perspective of Agency Theory that
focuses on general theory of principal and agent relationships; application to
10
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
employer-employee, lawyer-client, buyer-supplier, and other agency
relationships; abstract and mathematical; broader focus on general interest; look
at which contract is the most efficient under varying levels of outcome
uncertainty, risk aversion, information; and determine the optimal contract type
(outcome- or behavior-based).
Private Sector: Privately held, for-profit firm or organization (as opposed
to government-run "not-for-profit” agencies that have elected or appointed
officials). In this research, "private sector” refers specifically to a professional
individual or firm (consultants-agent).
P rofessional Services C onsultant: Any professional (attorney,
accountant, architect, certified inspector, engineer, planner, or other professional)
that provides services that require specialized training, certification, registration,
or expertise, to furnish specialized deliverables (studies, research, design,
construction, and so on).
Program Management: A large project ($20 million or more) where the
overall project covers a wide range of professional disciplines (planning,
permitting, environmental and civil engineering, construction management,
budgeting, and so on). Examples include the NASA Space Program, Port of
Oakland Maritime Capital Program, and the U.S. Army Corps of Engineers Civil
Works Program.
Public Sector: Government-run (local, state, or federal) agencies.
1 1
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
RFP (Request fo r Proposals): A solicitation for services, requesting that
a proposal be submitted by an organization. An RFP requests such information
as qualifications; approach; team organization; references; and most importantly,
costs. Usually, the low cost proposer is selected by the local governmental
agency that is doing the advertising.
RFQ (Request For Q ualifications): Similar to an RFP, except it requests
no cost information and is usually designed around a specific scope of services.
An RFQ may ask for unique approaches to attaining its goals. Using an RFQ
process, the top proposer is selected, based on qualification criteria and then a
price is negotiated for the services.
Value Engineering: A process of evaluation in which a professional
consultant reviews a method, procedure, or design developed to see if it can be
improved, to save money, improve safety, and so on.
WHAT THIS RESEARCH DOES NOT COVER
This research does not research any perspective other than that of the
local governmental agency as principal or look in detail at larger cities’, state, or
federal agencies' use of consultants.
Finally, this research most likely has fewer notes and references than
other dissertations. Most of the observations result from this researcher’s over
30 years of professional experience and the empirical data from the over 70
interviews conducted.
12
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
END NOTES
Blackman, Kenneth, City Manager, City of Santa Rosa, California. Personal
Interview. February 14, 1997.
City of Eureka. "Section 2-6.1: Procedures for Retaining Consultants and
Professional Technical Services," Eureka Municipal Code. 1995.
Eisenhardt, Kathleen. "Agency Theory: An Assessment and Review,” Academy
of Management Review. Vol. 14. No. 1. 1989. 57-74
Gore, Al. The National Performance Review: The Gore Report on Reinventing
Government— Creating a Government That Works Better and Costs Less.
Washington, D.C. 1993.
Hersey, Paul, Kenneth Blanchard, and Dewey Johnson. Management of
Organizational Behavior Utilizing Human Resources. Upper Saddle River,
NJ: Prentice-Hall, Inc. 1996.
Kearns, Kevin. Managing for Accountability. San Francisco, CA: Jossey-Bass,
Inc., Publishers. 1996.
Osborne, David, and Ted Gaebler. Reinventing Government: How the
Entrepreneurial Spirit is Transforming the Public Spirit. Reading, MA:
Addison-Wesley Publishing Company, Inc. 1992.
1 3
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
CHAPTER 2. LITERATURE REVIEW
The theoretical foundations for this research primarily focus on Agency
Theory and Accountability with consultants as agents of local governments.
AGENCY THEORY
As described by Charles Perrow:
In its simplest form, Agency Theory assumes that social life
is a series of contracts. Conventionally, one member, the
buyer of goods or services is designated the 'principal' and
the other, who provides the goods or service is the 'agent'—
hence the term Agency Theory. The principal-agent
relationship is governed by a contract specifying what the
agent should do and what the principal must do in return.
(Perrow, 1986)
Waterman and Meier discuss an application to Agency Theory:
A common application in economics is the market for
professional services, say between a patient-the principal—
and a physician-the agent (Evans 1980). Assuming that
both are rational utility maximizers, a patient and a
physician are likely to have different goals. The patient
would like to be made healthy but pay as little as possible,
The physician would be interested in maximizing income
so, therefore, faces the temptation to provide more medical
services than are necessary or to charge a higher price
than is warranted. In this exchange, patients are at a
disadvantage because they cannot directly evaluate the
services provided by the physician. In short, an information
asymmetry exists, with an advantage to the physician.
Principals seek to manipulate and mold the behavior o f
agents so that they will act in a manner consistent with the
principals' preferences. The contractual arrangement is
one tool for accomplishing this goal. (Waterman & Meier,
April 1998)
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
According to Eisenhardt:
Agency theory is concerned with resolving two problems
that can occur in agency relationships. The first is the
agency problem that arises when (a) the desires or goals of
the principal and agent conflict and (b) it is difficult or
expensive for the principal to verify what the agent is
actually doing. The problem here is that the principal
cannot verify that the agent has behaved appropriately.
The second is the problem of risk sharing that arises when
the principal and agent have different attitudes toward risk.
The problem here is that the principal and the agent may
prefer different actions because of the different risk
preferences.
Because the unit of analysis is the contract governing the
relationship between the principal and the agent, the focus
of the theory is on determining the most efficient contract
governing the principal-agent relationship given
assumptions about people (e.g., self-interest, bounded
rationality, risk aversion), organizations (e.g., goal conflict
among members), and information (e.g., information is a
commodity which can be purchased). Specifically, the
question becomes, Is a behavior-oriented contract (e.g.,
salaries, hierarchical governance) more efficient than an
outcome-oriented contract (e.g., commissions, stock
options, transfer of property rights, market governance)?
(Eisenhardt, 1989)
The literature on Agency Theory focuses on the relationships that mirror
the basic agency structure of a principal and an agent who are engaged in
cooperative behavior but have differing goals and different attitudes toward risk
(Eisenhardt, 1989; Perrow, 1986; Waterman and Meier, April 1998).
Eisenhardt (1989) presents two streams of Agency Theory: positivist and
principal-agent.
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
The Positivist stream focuses on:
A. identifying situations in which the principal and agent are likely to have
conflicting goals and then describe the governance mechanism that limits
the agent's self-serving behavior;
B. not mathematically rigid;
C. owners and managers of large, public corporations; and
D. identifying various contractual alternatives.
The Principal-Agent stream focuses on:
A. general theory of principal and agent relationships;
B. application to employer-employee, lawyer-client, buyer-supplier, and other
agency relationships;
C. abstract and mathematical;
D. broader focus on general interest;
E. which contract is the most efficient under varying levels of outcome
uncertainty, risk aversion, information; and
F. determination o f the optimal contract (outcome- or behavior-based).
The literature discusses two important problems in Agency Theory:
adverse selection and moral hazard. Adverse selection occurs when the agent
misrepresents his or her abilities, experience, and skills. For example, a local
government selects and enters into a contract with a professional services
consultant to design a large, complex road and bridge project. The local
government requires the consultant to have extensive bridge and road design
16
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
experience using state-of-the-technology (computer aided design and drafting,
current scheduling software, and so on). The local government assumes the
information regarding the consultant's qualifications and experience that was
presented in the proposal is accurate. After the consultant begins work, it
becomes obvious that his experience is inadequate, and that he had
misrepresented his ability and skill (adverse selection).
The second problem in the Agency Theory refers to moral hazard.
Essentially, moral hazard refers to lack of effort on the agent's part. The agent
essentially shirks the work.
This research uses the local government as the principal and the
professional services consultant as the agent. The local government (principal)
wants:
A. a contract that provides a detailed scope of services with deliverables, a
schedule for completing those deliverables, specific language on
compensation, and any incentives or penalties;
B. contract language that assigns responsibility for monitoring the
consultant's work (meetings, reports, and presentations) to ensure the
consultant meets the contracted requirements;
C. goals for both the principal (local government) and agent (consultant); and
D. contract language that includes what it (the local government) will provide
by way o f information or specific parts o f the work.
17
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
For such a contract to be effective, risk must be minimal for the local
government (principal).
This research addresses professional services consultant contracts that
are outcome-based and, primarily, lump sum with specific requirements
(deliverables, such as milestones and schedules).
In her 1989 article, "Agency Theory: An Assessment and Review," which
was published in the Academy of Management Review. Kathleen Eisenhardt
presents ten testable propositions for Agency Theory.
P o sitivist Perspective
"P roposition 1: When the contract between the principal and agent is
outcome-based, the agent is more likely to behave in the interests of the
principal."
"P roposition 2: When the principal has information to verify agent
behavior, the agent is more likely to behave in the interest of the principal."
P rincipal-A gent Perspective
"P roposition 3: Information systems are positively related to behavior-
based contracts and negatively related to outcome-based contracts."
"P roposition 4: Outcome uncertainty is positively related to behavior-
based contracts and negatively related to outcome-based contracts."
18
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
"Proposition 5: The risk aversion of the agent is positively related to
behavior-based contracts and negatively related to outcome-based contracts."
"Proposition 6: The risk aversion of the principal is negatively related
to behavior-based contracts and positively related to outcome-based contracts.”
"Proposition 7: The goal conflict between principal and agent is
negatively related to behavior-based contracts and positively related to outcome-
based contracts."
"Proposition 8: Task programmability is positively related to behavior-
based contracts and negatively related to outcome-based contracts."
"Proposition 9: Outcome manageability is negatively related to
behavior-based contracts and positively related to outcome-based contracts."
"Proposition 10: The length of the relationship between principal and
agent is positively related to behavior-based contracts and negatively related to
outcome-based contracts."
These propositions are tested against the data collected in this research in
Chapter 6.
ACCOUNTABILITY
According to Keams (1996), narrow interpretation of Accountability
involves answering to a higher authority in the bureaucratic organization chain of
command. This definition draws on a fundamental question: To whom (in the
hierarchical chain) are public organizations (local governments) accountable?
19
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
This question deals primarily with mechanics of supervision, oversight,
and reporting to a higher authority in a hierarchical chain of command. In a
contractual relationship, the more difficult issues of Accountability, such as
establishing expectations, verifying performance, maintaining the responsiveness
of the agent, assessing blame, and sorting out responsibilities are often left to be
addressed at a later date or overlooked entirely (Johnston and Romzek, 1999).
The logic of Accountability when contracting is that of specifying the
mutual expectations, responsibilities, and obligations of the contracting parties.
Some governmental agencies (the principals) monitor the consultants (agents)
for compliance with the terms of performance specified in their contracts. In
other words, they ensure that the professional services consultants meet the
conditions specified (deliverables, time line, budget, and quality of work) in the
contracts. The challenge of Accountability for managers is the presence of
multiple, conflicting, and shifting expectations for performance that are held by
the diverse, legitimate sources of expectation (citizens, city councils, local
governmental agencies, and consultants).
To measure Accountability against common practice in the test cities, the
data was tested by asking the following question. Are procedures or
mechanisms set forth by local government to hold the principal (local government
staff met contract requirements) and agent (consultant delivered services)
accountable?
20
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
In this research, local government managers and staff are held
accountable to the citizens and governing boards for properly using professional
services consultants. Specifics for accountability really focus on the internal city
organizations developing procedures for monitoring and evaluating consultants.
These procedures should enhance organizational accountability, the
accountability of individuals, and the group of individuals who oversee the
consultants' work. For the non-city agencies interviewed, the agency managers
and staff are accountable to their Boards of Directors, referred to herein as the
"Governing Boards."
In designing an organizational system to use consultants effectively and
efficiently, the local government organizations must build an accountability
system for contract administration.
The local governments’ responsibilities include:
A. developing and following clear policies for selecting, monitoring, and
evaluating consultants;
B. preparing clear RFPs/RFQs;
C. developing detailed scopes of services for each contract;
D. assigning responsibilities for both the principal and the agent (what each
will furnish the other);
E. specifying timelines for milestones;
F. designating a specific staff-member (normally called out in the contract
and referred to as the government project manager) who will monitor work
21
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
progress and act as the consultants’ primary contact and source of
direction and/or information;
G. establish a communication system between local government staff and the
consultants (weekly meetings, E-mail, presentations, and so on); and
H. ensure that consultants as well as local government staff provide all
contracted services and deliverables.
The consultants’ responsibilities are to;
A. clearly understand what is expected;
B. designate a person as the primary contact with the local governmental
agency (consultant project manager);
C. use the right staff members to meet the contract demands;
D. communicate with city staff, other consultants, and subconsultants;
E. meet the schedule for milestones and deliverables;
F. meet the contract budget amount;
G. produce quality deliverables;
H. provide a consultant project manager with food communication skills who
works closely with the local government's primary contact; and
I. develop trust and respect.
As this research will show, consultants that fulfill these responsibilities are
considered by the test cities to be “effective.”
Mike Warren, City Manager of Redding, emphasized, “I hold my city
project manager accountable to make sure the consultant completes the project
22
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
on time, within budget, and of quality. There are no good or bad consultants—
my department head is totally accountable and responsible” (Warren, 1997). The
researcher agrees with this statement. Most cities do not hold their department
directors and project managers fully accountable for consultants’ work.
HIGH PERFORMING CONSULTANTS
According to Schaeffer, for a consultant project to be called a success,
three outcomes must be achieved:
"1. The consultant must provide a solution or a method new to the
client.
2. The client must achieve some measurable improvement in its
results by accepting the consultant’s solution.
3. The client must be able to sustain the improvement over time"
(Schaeffer, 1997).
Schaeffer also presents five fatal flaws of consultants:
” 1. The project is defined in terms of the consultant's expectations
or product, not in terms of specific results to be achieved for the
client."
"2. The project's scope is determined solely by the subject to be
studied or problem to be solved, ignoring the client's readiness
for change."
23
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
"3. The project aims for one big solution rather that incremental
successes."
"4. The project entails a sharp division of responsibilities between
client and consultant; there is no partnership between them."
"5. The project makes labor-intensive use of a consultant; instead
of leveraged use."
Although Schaeffer focuses on management consultants, it is the
researcher’s belief that professional services consultants must also meet these
three criteria and minimize or eliminate the five flaws to be considered
successful.
Denhardt (1992) emphasizes that the more progressive public managers
are highly attentive to performance standards and Accountability. He further
emphasizes the importance of empowering individuals (such as project
managers and key staff) throughout the organization to encourage leadership
roles, and decision making and to provide professional growth and confidence.
MANAGEMENT LEVELS COMPARED TO SKILL LEVELS
Hersey, Blanchard, and Johnson (1996) presented three areas of skill
necessary for the process of management: technical, interpersonal (referred to
as "human" by Hersey, Blanchard, and Johnson), and conceptual skills.
Technical Skill: Ability to use knowledge, methods,
techniques, and equipment necessary for the performance
of specific tasks acquired from experience, education, and
training.
24
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Human (Interpersonal) S kill: Ability and judgment in
working with and through people, including an
understanding of motivation and an application of effective
leadership.
Conceptual S kill: Ability to understand the complexity of
the overall organization and where one's own operation fits
into the organization. This knowledge permits one to act
according to the objectives of the total organization rather
that only on the basis and needs of one's own immediate
group. (1996)
Table 2-1 presents the relationship between management levels and skill
levels. The subject evaluation (High, Medium, Low, N/A) are based on Hersey et
al (1996), the researcher’s experience, and the literature review.
TABLE 2-1
RELATIONSHIP BETWEEN MANAGEMENT LEVELS AND SKILL
LEVELS
Management Level Technical Interpersonal
(Human)
Conceptual
Elected Officials/Governing
Board
N/A High High
Executive
(City Manager)
Low High High
Middle-Management
(Department Director, Project
Manager)
Medium High Medium
Supervisory
(Division Chief. Lead Worker)
High to
Medium
Medium Low
Non-supervisory High Low N/A
H High Level (necessary)
M Medium Level (important)
L Low level (not very important)
N/A Not applicable
Table 2-1 shows that:
• At the highest management level (elected officials and governing
boards), the most important skills are interpersonal and conceptual
skills, and it is unnecessary to have technical expertise.
25
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
• At the executive level of management (city managers, chief executive
officers), it is necessary to have interpersonal and conceptual skills
and technical expertise is of low importance. This is true for both local
government and consultants.
• At the middle-management level (department director, project
manager) it is necessary to have well developed (high level)
interpersonal skills and only moderately important to have technical
and conceptual skills.
• At the low-management level (non-supervisory), it is necessary to have
a high level of technical ability, only moderately important to have
interpersonal skills, and unnecessary to have conceptual skill.
Thus, the primary points of contact for both principals (local government
project managers) and agents (consultants' project managers)-should have high
interpersonal skills and only need moderate technical and conceptual skills.
Greater technical skills can be provided by experts from the consultant and local
government staff.
END NOTES
Denhardt, Robert. The Pursuit of Significance: Strategies for Managerial Success
in Public Organizations. Belmont, CA: Wadsworth Publishing Company.
1992.
Eisenhardt, Kathleen. "Agency Theory: An Assessment and Review," Academy
of Management Review. Vol. 14. No. 1.1989. 57-74.
26
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Hersey, Paul, Kenneth Blanchard, and Dewey Johnson. Management of
Organizational Behavior Utilizing Human Resources. Upper Saddle River,
NJ: Prentice-Hall, Inc. 1996.
Johnston, M. Jocelyn, and Barbara S. Romzek. "Contracting and Accountability
in State Medicaid Reform: Rhetoric, Theories, and Reality," Public
Administrative Review. Vol. 59. No. 5 September/October. 1999. 383-
399.
Kearns, Kevin. Managing for Accountability. San Francisco, CA: Jossey-Bass,
Inc., Publishers. 1996.
Kotter, John. A Force for Change: How Leadership Differs From Management.
New York, NY: The Free Press. 1990.
Perrow, Charles. Complex Organizations: A Critical Essay. Third Edition. San
Francisco, CA: McGraw-Hill Publishing Company. 1986.
Pratt, John, and Richard J. Zeckhauser. Principals and Agents: The Structure of
Business. Boston, MA: Harvard Business School Press. 1985.
Schaeffer, Robert. High Impact Consulting. San Francisco, CA: Jossey-Bass,
Inc. Publishers. 1997.
Warren, Michael, City Manager, City of Redding, California. Personal Interview.
July 19, 1997.
Waterman, Richard W., and Kenneth J. Meier. "Principal-Agent Models: An
Expansion?" Journal of Public Administration Research and Theory. Vol.
8, No. 2. April 1998. 173-202.
2 7
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
CHAPTER 3. METHODOLOGY AND CITY/AGENCY DESCRIPTIONS
AND ASSESSMENTS
This chapter presents the methodology used to conduct and analyze this
research. It also presents a summary of the information gathered from the
interviews conducted with managerial level staff from the fourteen (14) non
metropolitan/rural cities. Lastly, the chapter summarizes information derived
from interviews with staff from selected other Northern California agencies (a
state university, a community college, California Department of Transportation
special districts, and a small city). The detailed information on each city and
agency is provided in Appendices "A" and B, respectively.
METHODOLOGY
The fourteen (14) non-metropolitan/rural cities and nine (9) agencies were
chosen for this research because of their size, complexity, and extensive use of
consultants. Of these cities, Santa Rosa (population 128,000) is the largest and
Areata (population 15,000) is the smallest. A population of 15,000 was chosen
as a minimum. This size city has a large infrastructure, challenging issues, and a
reasonably large city staff. Several other governmental agencies were analyzed
to secure additional data and insights for comparison with the cities. These
2 8
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
agencies include Humboldt State University, College of the Redwoods (a
community college), the California Department of Transportation (Caltrans),
Crescent City (8,000 people), and special districts (transit, service, harbor).
INTERVIEWS
From November 1996 through December 1998, interviews were
conducted with key staff from the cities and agencies. The same open-end
questions were asked of each of the staff members interviewed. These
questions were:
1. What have been the length and nature of your involvement with the
use of consultants in local government? Your current job and
organization?
2. What criteria have you used and/or are you currently using to
determine when to use consultants?
3. What process do you use in selecting consultants?
4. Once a consultant is selected, do you use a standard contract or
some other contractual instrument?
5. Once the contract is awarded, in what ways do you monitor die
progress of the consultant?
6. How do you evaluate the consultant's performance during and then
at the compledon of the contractual work?
29
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
7. Key Comments On Consultants
A. Description of an Outstanding Consultant
B. Description of an Unsatisfactory Consultant
C. Example Experience, Good or Bad, With Consultants
D. Do you plan to use more, about the same, or fewer consultants
in the future?
E. What changes would you like to see for consultants to do
better work for the city?
Interviews for this research included the people in the positions listed
below or their equivalent. However, not all of these people in each jurisdiction
were interviewed.
• City Manager (Chief Executive Officer, General Manager, or Chief
Administrative Officer)
• Assistant City Manager
• Director of Finance
• Director of Public Works
• Director of Engineering (City Engineer)
• Director of Utilities
• Director of Community Development (Director of Planning)
30
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Over 70 local government and agency staff members (with extensive
knowledge and experience using consultants) were interviewed. The information
gathered in these interviews, and the researcher’s experience in both the
principal and agent capacities, were used to develop the research results and an
understanding of how these city governments and agencies use consultants.
Empirical data were also used to develop a suggested (generic) process for cities
and agencies to adopt when considering and then using professional services
consultants.
NORTHERN CALIFORNIA CITIES-DESCRIPTIONS AND RESEARCHER’S
ASSESSMENT
This section briefly summarizes each city's practices in using consultants.
The data from which these summaries were derived are presented in tabular
form, in Appendix "A." Figure 3-1 shows the locations of the fourteen (14) cities
included in this research.
City of Areata
Description of City and Its Consultant Selection Proceaa
The City of Areata has a population of 15,500 and uses the council-city
manager form of government It is a general law city, with an annual budget of
$16 million, and 85 full time employees. The City of Areata is the only one in the
United States with the Green Party in political power.
31
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Reproduced w ith permission o f th e copyright owner. Further reproduction prohibited without permission.
EureM Ly , ! i;‘ ::
a Redding
'• J ■ • . ?
• » ;
. ,1 '0 ,'P k J a H .. .
-V '! . ! N®! . , ...
• Woodl and
O & a y t a R o M
Figure 3-1. 14 Northern California
Cities Included In This Research
th Lake Tahoe
w
ro
• Santa Rosa (128,000) • Napa (70,000) • Areata (15,500)
• South Lake Tahoe (23,000) • Petaluma (50,000) • Chico (50,000)
• Rohnert Park (39,000) • Redding (70,000) • Davis (52,000)
• Windsor (19,200) • Woodland (45,000) • Eureka (28,000)
• Yuba City (39,000) • Ukiah (15,030)
Areata uses consultants (local when possible) more than it does its own
staff because of the need for more expertise than city employees have, and
because many o f the city's projects include politically and/or environmentally
sensitive aspects. The city uses consultants as neutral parties for such projects.
The City of Areata has a policy for selecting and hiring consultants. The
policy prescribes an RFP process with selection based on lowest fee.
Researchers Assessment
Communication flow between consultant and city staff members needs
improvement. The consultant policy should be updated to reflect higher fee
levels, and RFQs should be used instead of RFPs. Staff should monitor the
consultants' work better, with department directors taking a more active role in
monitoring consultants. Consultant contracts need more detailed scopes of
services, schedules, and deliverables with milestones. The staff members
interviewed were dissatisfied with some consultants' work. However, some felt
that when consultants are organized, have a good project manager, and
communicate well, projects are more readily accepted by staff, the city council,
and the public.
33
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
City of Eureka
Description of City and Its Consultant Selection Process
The City of Eureka has a population of 28,000, is a charter city with a
council-city manager form of government, and has 278 full-time employees.
Eureka's annual budget is $30 million.
The City of Eureka's consultant selection process is primarily quality
based initially, with the lowest fee used as the final selection criteria. However,
price is heavily weighted in the decision making process. Department directors
are responsible for monitoring consultant progress.
Researchers Assessment
Monitoring of consultants is not performed adequately by staff. The city’s
selection policy emphasizes fees too heavily, rather than quality based selection
followed by fee negotiations. The City of Eureka would benefit from an open-end
contract with a multi-disciplined consultant for several years. Staff not following
the selection policy resulted in the delay of, and increased project costs for, a
major development project. However, the Eureka Adomi Recreation Center was
the best large project in staff memory because the consultant worked closely with
city staff members and maintained open communications with them. Overall, the
staff members interviewed felt that the consultant project manager was critical to
the success of consultant projects.
34
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
City of Ukiah
Description of City and its Consultant Selection Process
The City of Ukiah has a population of 15,030 and uses the council-city
manager form of government. It is a general law city with 161 full-time
employees, and an annual budget of $33 million. Ukiah's staff has the least
governmental experience of all of the cities researched.
The City of Ukiah does not have a specific policy for consultant selection.
Each department has its own selection procedure.
Researcher's Assessment
City staff lacks the experience to monitor consultant work well. Staff
members felt that consultants' work products were too voluminous and take too
long to complete. The City of Ukiah intends to use consultants more in the
future. Therefore, the city should develop a policy for selecting consultants
based on qualifications and then negotiating fees. This policy should include a
procedure for evaluating consultants.
Town of Windsor
Description of City and Its Consultant Selection Process
The Town of Windsor has a population of 19,200 and uses the council-city
manager form of government. It is a general law city with 49 full-time employees,
and an annual budget of $28 million. The Town of Windsor has the smallest staff
35
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
of all the cities researched. The town council's policy is to keep the staff small,
"lean and mean" because employees are very expensive. For example, Windsor
uses consultants to operate its building department with no city employees.
The professional consultant selection process is at the discretion of the
town manager and city council. Current policy requires an RFP for consultant
selection for estimated fees of over $5,000. This policy causes significant staff
time to execute. The town's policy provides preference to local consultants in
awarding consultant contracts.
Researchers Assessment
The Town of Windsor’s selection policy needs review and updating to
allow for a higher fee limit and staff discretion. A larger staff is needed to monitor
consultants properly. One solution could be to use consultants to monitor
performance of other consultants.
City of Santa Rosa
Description of City and Its Consultant Selection Process
The City of Santa Rosa is a charter city with a council-city manager form
o f government, and has a population of 128,000. Santa Rosa has 1,125 full-time
employees and an annual budget of $200 million. This is the largest city included
in this research and has the most experienced staff. The city manager has been
in office for 27 years, and key department directors have worked together for
36
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
over 10 years. The City of Santa Rosa has a very detailed policy for selection
professional services consultants. The policy requires consultant selection
based on qualifications with fees finalized during contract negotiations. The city
uses consultants for most of its large, complex projects.
Researcher’s Assessment
Because it uses so many consultants, the City of Santa Rosa is working
on improving consultant monitoring and establishing two staff-positions to assist
department directors in monitoring consultant contracts. The city wants to
expand the current policy to allow the city manager to approve consultant
selection for projects of up to $100,000 (double the current limit). The city has
city council members or decision makers on each consultant selection committee
to ensure understanding and support for the projects. With its size and aging
infrastructure, the City of Santa Rosa should consider open-end contracts with
consultants with multi-disciplined capabilities.
City of Rohnert Park
Description of City and Its Consultant Selection Process
The City of Rohnert Park is a general-law city, uses the council-manager
form of government, and has a population of 39,000. It has 60 full-time
employees and an annual budget of $17.5 million.
37
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
The city relies very heavily on consultants, but it has one of the loosest
policies and consultant-selection processes of all of the cities evaluated in this
research. One department director awards all projects using sole source
contracts (currently uses only one consultant). Several consultants are suing the
city because they are not getting their “fair share” as local consultants.
Researchers Assessment
The city should develop a policy that details consultant selection criteria
for all departments to follow. The policy should encourage use of multiple
consultants, based on qualifications, and allow department directors discretion up
to a reasonable fee ($100,000).
City of Petaluma
Description of City and Its Consultant Selection Process
The City of Petaluma has a population of 50,000 and is a chartered city
with a council-manager form of government. The city employs 260 employees
and has a general fund budget o f $21 million.
Petaluma has no specific guidelines for consultant selection or level of
fees for which managers can use their discretion before going to city council for
final approval. If a need for professional services consultants arises, the affected
department director seeks approval from the city manager to prepare an
38
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
RFP/RFQ. The consultant is selected based on a selection committee's
recommendation. City staff generally uses a well-defined work scope and
schedule of milestones and deliverables to monitor consultant progress.
Researcher's Assessment
The City of Petaluma should develop a qualifications-based policy for
consultant selection, with fees determined during contract negotiations. Because
staff time is limited, the city should consider assigning a contract administrator to
monitor all large contracts. The policy should give the city manager discretion to
approve consultants for project fees up to $100,000 without city council approval.
City of Napa
Description of City and Its Consultant Selection Process
The City of Napa has a population of 70,000 and is a charter city that
operates under the council manager form of government. The City of Napa has
400 full-time employees and an annual general fund budget is $28 million.
Napa has an established policy for selecting consultants that allows
department directors discretion for project up to $25,000 and informal
solicitations for projects between $25,001 and $50,000 with approval of the city
manager and city attorney. For anything over $50,000, a formal RFP/RFQ must
be issued.
39
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Researcher’s Assessment
The City of Napa should update its policy to give department directors
more discretion (higher fee authority) in hiring consultants based on
qualifications. Because it intends to use more consultants for its new
water/wastewater plant and large flood control projects, the city needs to develop
a list of qualified consultants. This would reduce the number of RFPs/RFQs and
would allow fees to be negotiated by department directors. The city also needs
to develop a better partnership between city staff, council, community, and
consultants.
City of Davis
Description of City and Its Consultant Selection Process
The City of Davis has a population of 52,000 and is the home of the
University of California at Davis. The City of Davis uses the council-manager
form of government, is a general law city, has 356 full-time employees, and has
an annual general fund budget of $60 million. The city’s 1996-1997 final budget
had over 30% expenditures for capital improvements.
City policy emphasizes that cost is a significant factor when selecting
professional services consultants. The city uses local and regional firms
whenever possible. Staff keeps track of schedule, tasks, and deliverables
40
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
through meetings with consultants. This city provides the most challenging
environment for consultants in the cities studied due to University of California at
Davis professors questioning consultants' work.
Researcher’s Assessment
Staff needs to be held responsible for project progress, and be trained to
monitor consultant work using the detailed scope of services, milestones, and
deliverables schedule in the contract as a guide. The city needs to update its
policy to qualifications based selection criteria and give department directors
more discretion for hiring consultants sole source (up to $100,000).
City of Woodland
Description of City and Its Consultant Selection Process
The City of Woodland is a general law city with a population of
approximately 45,000. The city uses the council-manager form of government,
has an annual budget of $29 million, and has 268 full-time employees.
Woodland gives its city manager more discretion to hire consultants than
any other city included in this research. The city manager is authorized to award
within budget (up to 10% over the actual budgeted amount). Selection is
qualification based, from a list of qualified consultants for specific services. The
city reviews the list and sends a formal or informal solicitation to consultants to
complete and submit. It uses a review panel of 3 to 5 staff (including a city
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
council member if it is a very sensitive project). After oral interviews, the
committee selects the top three firms, and the city negotiates the contract. A
staff person is assigned to work with the consultant and monitors progress by
reviewing monthly consultant billings against progress and contract and by
holding regular meetings with the consultant.
Researcher’s Assessment
Because the city plans to use more consultants, it needs to expand its list
to include more experienced consultants. To ensure that its consultants
understand the city political agenda, it needs to develop better communications
with consultants, and develop a better staff to monitor them.
City of Yuba City
Description of City and Its Consultant Selection Process
The City of Yuba City is a full service, general law city that operates under
the council-administrator form of government. It has 243 full-time employees and
an annual budget of $38 million. Yuba City’s population is approximately 39,000.
The city administrator's policy for selecting professional services
consultants is that the city’s department directors, under the city administrator’s
direction, select consultants to meet the city’s needs. The city uses RFQs to
narrow the field, to select the top 2 or 3 candidates. Then an RFP is issued.
Once city staff has reviewed the proposals from the pre-approved group of
42
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
qualified consultants, each firm is interviewed. Staff selects the best consultant
for the project, and negotiates a contract with him or her. An assigned city
project manager monitors consultant progress by means of weekly meetings with
the consultant. This project manager meets every two weeks with the
responsible department director to review project status. The working
relationship that city staff has with the city council is exceptionally good.
Researcher’s Assessment
The city should allow open-end contracts with qualified consultants with
full capabilities, and raise the approval level for the city administrator to
$ 100,000.
City of South Lake Tahoe
Description of City and Its Consultant Selection Process
The City of South Lake Tahoe is a general law city with a population of
approximately 23,000. South Lake Tahoe uses the council-manager form of
government, and has an overall annual budget of $36 million. The city has 202
full-time employees. For the last 5 years, the city has been downsizing and faces
difficult budget decisions in the future.
43
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
The city does not have formal adopted policies, procedures, or ordinances
for selection of consultants. Once the need for a consultant has been identified,
the city usually issues RFQs to pre-approve qualified consultants. The
qualification packets are reviewed by a selection committee, which also conducts
interviews of the top two or three consultants. Once the committee has made its
recommendation, the decision goes to the city council for contract approval.
The city specifies scope, milestones, and deliverables in its contract. The
assigned city staff holds frequent meetings with the consultant and checks
milestones specified in the contract to actual work progress. Staff works closely
with the consultant project manager.
Researchers Assessment
The city needs to develop a specific process for selecting consultants. It
should also develop open-end contracts with a list of qualified consultants with
whom department directors can negotiate specific scopes of work. This would
reduce the number of formal RFPs the city issues. A staff project manager
should be assigned to each contract, and the city should also develop better
communications with its consultants to ensure that the consultants’ work meets
the contract requirements.
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
City of Chico
Description of City and Its Consultant Selection Process
The general law City of Chico has a population of 50,000 with an annual
budget of $58 million. The city's full-time employees number 358.
The city has a formal policy for contracting with professional services
consultants, and it uses cost-based selection criteria. The department director is
responsible for monitoring the professional services consultant by holding
regularly scheduled meetings with the consultant and having monthly in-house
progress updates from the consultant's project manager. The city requires
weekly reports from the consultant on work accomplished and work planned.
Researcher’s Assessment
The city should adopt a qualifications-based selection process and allow
the city manager more discretion to contract up to $100,000 fees. It should
consider using a contract administrator to monitor large contracts. It should also
develop open-ended contracts with qualified consultants, to whom department
directors can issue work orders for specific projects.
45
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
City of Redding
Description of City and its Consultant Selection Process
The general law City of Redding has a council-manager form of
government, 716 full-time employees, and an annual budget of $161.1 million.
The city has a population of 70,000.
The City of Redding solicits competitive proposals by releasing RFPs to a
minimum of three consultants for services estimated to cost $25,000 and five for
services estimated at more than $25,000. The primary selection criteria are
demonstrated competence and professional experience; although
cost is also considered. For unusual, complex, or extraordinary services, RFQs
are sent out to pre-selected firms. The consultant qualification packets are
reviewed and evaluated to narrow and finalize the field of qualified firms to be
sent RFPs.
The city specifies how the consultant will be evaluated as part of the
contract, and it holds assigned staff accountable for projects. Staff monitors
contract deliverables, comparing the percent of work completed with the contract
schedule and deliverables, and by holding regularly scheduled meetings with the
consultant. For large and complex projects, the City of Redding offers incentives
based on consultant performance.
46
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Researcher’s Assessment
The city should consider developing a list of qualified consultants to whom
it can issue RFPs. It could also develop open-end contracts with qualified
consultants and allow department directors discretion to negotiate scopes of
services and fees-say $500,000 per year for three years. The city should also
allow the city manager more discretion for contract up to $100,000 in fees, and
continue using monetary incentives in consultant contracts.
SELECTED OTHER AGENCIES
Although the primary focus of this research is on Northern California cities
north of San Francisco and Sacramento, with populations of 15,000 or more, a
brief look at other government agencies provides some comparison to the target
cities to identify differences and additional insights or ideas related to the
fourteen (14) subject cities. Also, one consultant (Mintier, 1998) was interviewed
who had recently completed general plan updates for the Cities of Eureka and
Woodland. The consultant’s perspective regarding working with the two cities
and comments made by staff from the cities about the consultant’s work provides
added insight in ways in which local government could effectively use
professional services consultants. Specific comments on this consultant’s
perspective are presented in Chapter 5.
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
The agencies involved in this research are listed below:
• California Department of Transportation (Caltrans)— (Ct)
• Humboldt State University (CSU System)— (HSU)
• College of the Redwoods (Community College)-— (CR)
• Humboldt County Department of Public Works—(HPW)
• Humboldt Transit Authority (Special Transit District)—(HTA)
• Humboldt Bay Harbor, Recreation, And Conservation District (Special
District)—(HBHRCD)
• Humboldt Municipal W ater District (Special District)— (HMWD)
• McKinleyville Community Services District (Special Services District)—
(MCSD)
• City of Crescent City-(CC)
Figure 3-2, on page 49, presents the locations of the nine (9) agencies
whose staff members were interviewed for this portion of the research.
Description of Selected Local Governmental Agencies* Consultant
Selection Process
These agencies often use consultants because of their limited budgets
and personnel. Small projects/tasks can go sole source. However, these
agencies normally use a formal RFP/RFQ process, with final approval obtained
from the governing board. (Approval for HSU and the community college cannot
exceed $100,000 in fees for each particular campus. Above that amount, the
48
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Figure 3-2. Nine Northern California
Agencies Included In T h is Research
* McKi nl ey villa CSD, McKl nttyvSUt,
*itu m b o la t State U ni versi t y, Areata,
CoUege o f the Redwoods, Hum bol dtCouhty, CA
CA
CA
o f Hum bol dt Public Works
D istrict I
Transit Authority ' ■
' dt hay H arbor, Recreati on, 4 Conseni pt i on D istrict
' dt M unicipal W ater D istrict
contract must go to the Chancellor’s Office in Long Beach, California, for
approval.) These agencies carefully monitor consultants by means of regular
meetings with consultants and comparing the actual work to the contracted
scope, milestones, and schedules. They often use another consultant or project
manager to monitor big projects. They all focus on defining specific scopes o f
services, deadlines, and milestones in their contracts and then make the
consultants live up to the agreement.
49
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Researcher's Assessment
In general, these agencies’ use of consultants is a role model for the cities
included in this research. Because they generally operate with limited budgets,
they run much more efficiently and hire or use piuject managers that have the
appropriate level of managerial expertise to ensure successful project
completion. These project managers do a great job of holding consultants
accountable.
In general, these agencies should consider developing open-end contracts
with qualified consultants (or one consultant with all needed capabilities). This
would reduce the number of RFQs they need to produce and the time needed
before projects can begin.
SUMMARY OBSERVATIONS OF CITIES AND SELECTED AGENCIES IN THE
RESEARCH
The following list summarizes key points from the interviews:
A. Each jurisdiction should develop specific policies and procedures for
selecting, monitoring, and evaluating professional services consultants.
These policies should be updated every two years. Many of the cities do
not have policies or their policies are out of date because conditions
(physical and fiscal) have changed since the policies were written.
B. Executive level managers should have maximum flexibility in hiring
professional services consultants. In many cities, staff approval authority
50
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
(fee level) is impracticably low. This results in delays and inefficient use of
staff time.
C. Each jurisdiction should assign knowledgeable and experienced staff
members as project managers to monitor and work with consultant project
managers. In general, local government is not doing a good job of
monitoring consultant work, resulting in poor work products, extended time
schedules, and blown budgets.
D. Effective project management is critical to the success of a project.
Consultants and local governments both need to train and use effective
project managers. In general, effective project managers are needed by
both local government and consultants. The lack of management
expertise results in increased costs for poor quality and/or late work
products.
E. Local government should consider using high value, open-end contracts
with multi-disciplined consultants to save time and money.
F. Local government should consider assigning contract administrators to
work closely with the local government project managers to better monitor
large consultant contracts.
G. Both consultants and local governments need to improve the frequency
and quality of their communications with one another.
5 1
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
H. Local governments should consider using incentives in consultant
contracts when work is completed in an exceptional manner (saves time
and money, completed ahead of schedule).
I. Interviews with personnel from the nine (9) selected agencies did not
provide additional insights about consultant use and monitoring by local
governments. However, these interviews did reinforce Agency Theory
and Accountability in that comprehensive contracts, long-term
relationships with consultants, and well-developed managerial skills
produce positive results. These interviews also served to confirm the
similarity between consultant use by small rural city governments and rural
agencies.
END NOTES
Alderson, Jack, Chief Executive Officer, Humboldt Bay Harbor, Recreation, and
Conservation District, Eureka, California. Personal Interview. March 4,
1996.
Alexander, Tom, Director of Public Works/City Engineer, City of Chico, CA.
Personal Interview. March 20,1997.
Bames, Darrell, Director of Utilities, City of Ukiah, CA. Personal Interview.
November 22,1997.
Basptista, Antoine, Community Development Director, City of Chico, CA.
Personal Interview. March 20,1997. Beatty, Gene. Assistant City
Manager. City of Petaluma, CA. Personal Interview. November 15,1997.
Blackman, Kenneth, City Manager, City of Santa Rosa, California. Personal
Interview. February 14,1997.
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Bolli, Art, General Manager, Humboldt Municipal Water District, Eureka,
California. Personal Interview. July 16, 1997.
Braden, Susan, Assistant City Manager. City of Napa, CA. Personal Interview.
June 18, 1997.
Brauer, Edward, Assistant City Manager, City of Santa Rosa, California. Personal
Interview. February 6, 1997.
Brust, Ron, Director o f Public Works/City Engineer, City of Rohnert Park, CA.
Personal Interview. January 25, 1997.
Buel, Bruce, General Manager, McKinleyville Community Services District,
McKinleyville, California. Personal Interview. August 27, 1997.
Capriolo, Cathy, Assistant City Manager, City of Davis, CA. Personal Interview.
May 15, 1997.
Casey, Steve, City Manager, City of Crescent City, California. Personal Interview.
October 21, 1997.
Christian, Jed, Director of Finance, City of Napa, CA. Personal Interview. April
27, 1997.
Curtis, Kenneth, Director of Community Development, City of Areata, CA.
Personal Interview. November 11,1996.
Daniels, Ross, Director of Public Works, City of Santa Rosa, California. Personal
Interview. February 6,1997.
Drawbaugh, Carl, Director of Public Works, City of South Lake Tahoe, CA.
Personal Interview. June 17, 1997.
Duncan, Laura, Deputy Director, Redevelopment Agency/Finance Director. City
of Yuba City, CA. Personal Interview. March 15,1997.
Duncan, Trish, Assistant City Manager. City of Chico, CA. Personal Interview.
March 21, 1997.
Etton, Gordon, Director of Finance, City of Ukiah, CA. Personal Interview.
November 22,1997.
Ferris, Michael, Director of Utilities, City of Santa Rosa, California. Personal
Interview. February 20,1997.
53
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Foltz, Jeff, City Administrator, City of Yuba City, CA. Personal Interview. March
14, 1997.
Galucke, Robert, Director of Public Works, City of Redding, CA. Personal
Interview. September 12,1997.
Goldberg, Wayne, Director of Community Development, City of Santa Rosa,
California. Personal Interview. February 6, 1997.
Greenway, Dewayne, Director of Public Works, City of Areata, CA. Personal
Interview. November 11,1996.
Hamblin, Kevin, Director of Community Development, City of Eureka, CA.
Personal Interview. October 31,1996.
Hargis, Thomas, City Engineer, City of Petaluma, CA. Personal Interview.
November 17, 1997.
Harris, Alice, City Manager, City of Areata, CA. Personal Interview. November
12, 1996.
Hams, Michael, Assistant City Manager, City of Ukiah, CA. Personal Interview.
November 22, 1997.
Harrow, Michael, Finance Director, City of Rohnert Park, CA. Personal Interview.
January 25, 1997.
Herzberger, Thomas, Director of Public Works/City Engineer, City of Eureka, CA.
Personal Interview. October 29, 1996.
Hodgson, Dalphine, Director of Finance. City of Areata, CA. Personal Interview.
November 11, 1996.
Horsley, Candace, City Manager, City of Ukiah, CA. Personal Interview.
November 22, 1997.
Jamison, Terri, Director of Community Development, City of South Lake Tahoe,
CA. Personal Interview.
Kennedy, Rick, Director of Public Works, City of July 17,1997. Ukiah, CA.
Personal Interview. November 22,1997.
Kristensen, Kris, City Manager, City of Woodland, CA. Personal Interview. May
21, 1995.
Lando, Thomas, City Manager. Chico, CA. Personal Interview. March 20,1997.
54
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Levitz, Carl, Assistant City Manager, City of Rohnert Park, CA. Personal
Interview. February 20, 1997.
Lewis, Diane, Director of Community Services, Town of Windsor, CA. Personal
Interview. January 10, 1994.
Lindsey, Stan, Director of Administrative Services, City of Santa Rosa, California.
Personal Interview. February 6, 1997.
Lorex, Jeff, Director of Planning, City of Davis, CA. Personal Interview. May 15,
1997.
Maker, Philip, Assistant City Manager, City of Woodland, CA. Personal Interview.
May 21. 1995.
McGinty, David, Director o f Utilities, City of Eureka, CA. Personal Interview.
November 4, 1996.
Meyer, John, City Manager, City of Davis, CA. Personal Interview. May 15, 1997.
Miller, Kerry, City Manager. City of South Lake Tahoe, CA. Personal Interview.
June 14,1997.
Mintier, Larry, Mintier and Associates, Sacramento, CA. Personal Interview.
December 31, 1998
Mohr, Karl, Financial Planning Coordinator, City of Davis, CA. Personal
Interview. May 15, 1997.
Monk, Dan, Town Engineer, Town of Windsor, CA. Personal Interview. January
10, 1994.
Moon, Mike, Director of Administrative Services/ Treasurer, Town of Windsor,
CA. Personal Interview. January 10,1994.
Murphy, Roger, General Manager, Humboldt Transit Authority, Eureka,
California. Personal Interview. February 27,1997.
Netter, Joseph, City Manager, City of Rohnert Park, CA. Personal Interview.
February 20,1997.
O'Banyon, Mike, Director of Public Works, City of Napa, CA. Personal Interview.
June 18, 1997.
5 5
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Otterback, George, Area Construction Manager, Department of Transportation,
State of California, Area One, Eureka, California. Personal Interview.
November 17, 1997.
Perez, Dave, Director of Public Works/City Engineer, City of Davis, CA. Personal
Interview. May 15, 1997.
Perez, Philip, Physical Planner, Humboldt State University, Areata, California.
Personal Interview. October 31,1997.
Poetner, Gary, Vice President (Business Services), College of the Redwoods,
Eureka, California. Personal Interview. May 19,1997.
Raffaelli, Donald, Assistant Director, Public Works, Humboldt County, Eureka,
California. Personal Interview. October 31,1997.
Rose, Harvey, City Manager, City of Eureka, CA. Personal Interview. October 29,
1996.
Ruggiero, Janet, Community Development Director, City of Woodland, CA.
Personal Interview. May 15, 1995.
Salmon, Warren, Assistant City Manager. City of Petaluma, CA. Personal
Interview. November 15,1997.
Sawyer, Robert, Director of Planning, City of Ukiah, CA. Personal Interview.
November 22, 1997.
Scharer, John, City Manager, City of Petaluma, CA. Personal Interview.
November 14, 1997.
Sesnan, Robert, Finance Director. City of Chico, CA. Personal Interview. March
20, 1997.
Skoney, Paul, Planning Director. City of Rohnert Park, CA. Personal Interview.
January 24, 1997.
Spilman, David, Director of Finance, City of Petaluma, CA. Personal Interview.
November 14,1997.
Starman, Kent, Deputy City Manager, City of Redding, California. Personal
Interview. July 14,1997.
Strom, Steven, Director of Finance, City of Redding, CA. Personal Interview.
October 17, 1997.
56
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Swanson, Jerry, Director of Development Services, City of Redding, California.
Personal Interview. July 15, 1997.
Thompson, Pat, City Manager, City of Napa, CA. Personal Interview. February
21, 1997.
Trudgon, Bryan, Senior Planner, City of Yuba City, CA. Personal Interview.
March 14, 1997.
Tuft, Pamela, Planning Director. City of Petaluma, CA. Personal Interview.
November 14, 1997.
Tyson, David, Assistant City Manager, City of Eureka, CA. Personal Interview.
October 29, 1996.
Wagener, Gary, Director of Public Works/City Engineer, City of Woodland, CA.
Personal Interview. May 21, 1995.
Warren, Michael, City Manager, City of Redding, California. Personal Interview.
July 14, 1997.
Wright, Jim, Director of Public Works, City of Yuba City, CA. Personal Interview.
March 14, 1997.
Yost, John, Director of Planning, City of Napa, CA. Personal Interview. February
20, 1997.
57
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
CHAPTER 4. SUMMARY AND COMPARISON OF INTERVIEW
RESULTS
INTRODUCTION
This chapter compares the interview results from the fourteen (14) cities
and other agencies that use professional services consultants. This comparison
identifies common themes/issues among the cities and agencies interviewed.
The seven questions, with selected comments for each of the questions, are
presented in tabular form. Table 4-1 presents the fourteen (14) cities and nine (9)
selected agencies surveyed.
TABLE 4-1
CITIES AND AGENCIES INTERVIEWED FOR THIS RESEARCH
Northern C alifornia C ities
Areata (A) Napa (N)
Eureka (E) Davis (D)
Ukiah (U) Woodland (WD)
Windsor (W) South Lake Tahoe (SLT)
Santa Rosa (SR) Yuba City (YC)
Rohnert Park (RP) Chico (C)
Petaluma (P) Redding (R)
Agencies A ll Public)
California Department of Transportation (Caltrans)—(Ct)
Humboldt State University (CSU System)—(HSU)
College of the Redwoods (Community College)— (CR)
Humboldt County Department of Public Works—(HPW)
Humboldt Transit Authority (Special Transit District)—(HTA)
Humboldt Bay Harbor, Recreation, And Conservation District (Special
District)—(HBHRCD)
Humboldt Municipal Water District (Special District)—(HMWD)
McKinleyville Community Services District (Special Services District)—
(MCSD)
City of Crescent City-(CC)
58
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
INTERVIEW RESULTS KEYED TO SURVEY QUESTIONS
Length And Nature o f Involvem ent W ith Consultants
1. What have been the length and nature of your involvement with the
use of consultants in local government? Your current job and
organization?
Appendices "A" and B present the people interviewed, their job titles, and
summaries of the interviews for each city and agency. Table 4-2 provides the
average number of years that the staff members interviewed have used
professional services consultants.
TABLE 4-2
SUMMARY OF ALL CITY AND SELECTED AGENCY STAFF EXPERIENCE
WORKING WITH PROFESSIONAL SERVICES CONSULTANTS
City Years of
Experience
City Years of
Experience
Areata 17.75 Mapa 16.4
Eureka 19 Davis 11.9
Ukiah 17.62 Woodland 17.0
Windsor 21.85 South Lake Tahoe 17.6
Santa Rosa 28.8 Yuba City 17.0
Rohnert Park 20.6 Chico 15.8
Petaluma 18.6 Redding 11.2
Agency Years of
Experience
Agency Years of
Experience
Caltrans 30.0 HBHRCD 30.0
Humboldt State University 22.0 tfcKinleyville CSD 25.0
College of the Redwoods 22.0 City of Crescent City 25.0
Humboldt County Public
Works
36.0 Humboldt Municipal Water
District
28.0
Humboldt Transit Authority 25.0
As the table shows, the staff members have many years of experience in
using consultants, with an overall average of 21.5 years.
59
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Criteria For Determining When To Use Consultants
2. What criteria have you used and/or are you currently using to
determine when to use consultants?
TABLE 4-3
REASONS FOR USING CONSULTANTS
A E u W SR RP p N 0 WD SLT YC c R Agencies* Totals
Staff Does Not Have
Time
4 4 4 4 4 4 4 4 4 4 4 4 4 4 14
Project Requires
Specialized Expertise
4 4 4 4 4 4 4 4 4 4 4 4 4 4 14
Project is Politically
Sensitive/ Need Neutral
Party
4 4 4 4 4 4 4 4 4 4 4 11
Project Must Be Done
Fast
4 4 4 4 4 4 4 4 4 9
Project Is
Large/Complex
4 4 4 4 4 4 6
Costs Must Not Be
Excessive
4 4 4 3
Project Requires
Knowledge Of Local
Area
4 ~ 4 2
Pro/act requires A Better
Job than Staff Can
Provide
4
1
Directed By City Council 4
1
Used Same Consultant
For Years-Habit
4 1
Law Requires use of
Consultant
4 1
Staff Cannot Provide
Construction
Management
Engineering
4 1
* = Summary from all nine government agencies
A = Areata
E = Eureka
U = Ukiah
W = Windsor
SR = Santa Rosa
RP = Rohnert Park
P = Petaluma
N = Napa
D = Davis
WD = Woodland
SLT =South Lake Tahoe
YC = Yuba City
C = Chico
R - Redding
As Table 4-3 shows, the five major reasons the cities and agencies use
consultants are:
1. Staff does not have the time to accomplish the work.
60
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
2. Consultants provide more expertise and are creative at devising
solutions.
3. Consultants are used as a neutral party for sensitive projects.
4. Consultants get projects completed faster than does staff.
5. Consultants are used for complex, large projects.
Process fo r Selecting Consultants
3. What process do you use in selecting consultants?
As Table 4-4 on the next page shows, eight cities’ staffs have a maximum
dollar approval authority for professional service contracts. This authority
provides the city manager and department director the ability to get the
consultant started early and saves time and money by not requiring a formal
competitive process. The other six cities and all the government agencies
require a formal competitive process in selecting consultants. The governing
board must approve staff recommendations. This formal competitive process
usually takes several months; is time-consuming for staff, consultants, and the
governing board; and is expensive. The selection processes that the various
agencies go through are very similar. A suggested model for consultant
selection process is presented in Chapter 7.
6 1
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
TABLE 4-4
CITY POLICIES FOR USING CONSULTANTS
City/ Agency Consultant Selection Policy/Procedure
Areata Performance
< $20,000, city manager may negotiate.
$20,000 • $50,000, city manager may negotiate contract, subject to city council approval.
> $50,000, RFP required; locals preferred; city council approves contract award.
Eureka < $15,000, staff can hire sole source.
$15,000 • $50,000, must obtain 3 proposals, staff selects most qualified consultant/firm,
negotiates contract, and obtains council approval.
> $50,000, must issue an RFQ, select tope 2 firm s based on qualifications. The firm with
the lowest cost is selected. Council approval is needed.
Ukiah No specific policy.
Santa Rosa <$5,000, department directors can approve sole source
$5,000 - $50,000, city manager can approve.
> $50,000, must use competitive proposals, with a review committee that includes a city
council person; city council approves contract award.
Windsor
< $5,000 town manager can sole source.
> $5,000-Competitive-RFP/RFQ
Rohnert Park Requirements based on a specific need, usually inform al solicitation.
Petaluma Qualifications based selection.
< $15,000-Staff selection.
$15,000 • $100,000-RFP/RFQ with city manager approval and city council approval
before award.
> $100,000 -Use selection committee.
Napa <$5,000-standard purchase orders.
$5,000 to $25,000— standard purchase order w ith department director and city attorney
approval.
$25,001 - $50,000-standard purchase order w ith city attorney and city manager
approval.
>$ 50,000-Formal process, requires city attorney and city manager approval, city
council approves contract award.
Davis Qualifications then negotiate
< $10,000-sole source
$10,000 - $25,000-RFP, department director approval
> $25,000-RFP, written contract approved by city council
Woodland RFP/RFQ-The city manager is authorized to award within budget (10% allowance).
Yuba City Competitive RFP process
< $25,000-the city administrator can approve
> $25,000~the city council must approve
So. Lake
Tahoe
Qualifications based selection, with city council approval.
Chico < $5,000. city manager can approve consultant contract.
> $5,000. formal RFP process, oral interviews, & council approval.
Redding RFQ, then negotiate consultant contract
< $25,000-Department director selects.
> $25,000-Review panel, city council for approval.
Agencies The other agencies go through a competitive process for selection. Except for Caltrans,
the governing board must always approve staff recommendations. Caltrans' approval
authority for most consultant contracts is from their District offices throughout the State.
62
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Type of Contractual Instruments Used
4. Once a consultant is selected, do you use a standard contract or
some other contractual instrument?
All cities and agencies use a standard professional service contract with
attachments that include scope of services with specific milestones and special
provisions.
Methods Used To Monitor Consultant Progress
5. Once the contract is awarded, in what ways do you monitor the
progress of the consultant?
Table 4-5 summarizes the comments on consultant monitoring made by
cities and agencies.
TABLE 4-
MONITORING OF PROFESSIONAL SEF
5
tVICES CONSULTANTS’ WORK
A E u W SR RP P N D WD SLT V C C R Agencies* Totals
Maintain Regular
Communications
y l y j 1 y j ■ 1 y l y l y l y l y l y j y l
-*v-
14
Compare Proposal To
Contract & Actual Schedule
1 V y j y l y l y l y l y l y l - r ~ m
1 2
Ensure Consultant Project
Manager Stays "On Top OF’
Project
1 y l V y l y l y j y l y l T ' 9
Department Director Stays
Involved
y j y l y l y l y l y l
7 "
8
Compare Monthly Billing To
Proposal 4 Schedule
'I y l y l y l y l y l y l 7
Have A Detailed Contract y l y l y l y l 5
Work Closely With Staffs
Consultant Project Manager
y l y l y l 3
Listen To Staff
Observations/Comments
y l y l 2
Retain A Portion Of The Fee
Until Project Is Completed
y l 1
* - Summary from all nine government agencies
ft = Areata
E = Eureka
U = Ukiah
W = Windsor
SR = Santa Rosa
RP = Rohnert Park
P = Petaluma
N = Napa
D = Davis
WD = W oodland
SLT = South Lake Tahoe
YC = Yuba City
C = Chico
R = Redding
63
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Based on the analysis of Table 4-5, the following six areas are the most
important for monitoring the progress of consultants:
1. Maintain regular communications between consultant and agency staff
(usually meetings, E-mail, face-to-face contact, written progress reports).
2. Compare proposal to contract and actual schedule, and ensure that they
match.
3. Ensure that the consultant project manager communicates well, is “on top
o f the project, uses resources well, and is proactive.
4. Department director and staff monitor consultants’ work at regular
intervals, throughout the project.
5. Review monthly consultant billing to make sure work-hours, milestones,
and deliverables are current, compared to approved contract and
schedule.
6. Have a detailed contract with specific milestones, schedule, work hours by
specific personnel, and deliverables, and use it as the guide by which to
measure consultant progress.
Methods Used To Evaluate Consultant Performance
6. How do you evaluate the consultant’s performance during and then
at the completion of the contractual work?
A summary of the answers to this question are presented in Table 4-6.
64
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
TABLE -
EVALUATION OF CONSULTANTS’ V
1-6
VCIRK AT END OF CONTRACT
A e u W SR RP p N D WD SLT Y C C R Agencies* Totals
Staff, community, and
regulatory agencies accept
work product
yj yj t I yj yl yj ' J yj y} yj yl yj V 13
Product is useful. yl y j yj yj yl yl yl yj yj yl V 11
There were few change
orders, over runs, or
complaints.
yl yl yj yj V yj yl yl yj yl yj 11
Consultant maintained
good communication
throughout project
yl y l > / y j yj yj 'I yl yl yj •1 11
Project was completed
within budget
yj yl V yj V V yl yl yj yj yl 11
Consultant met time and
product deliverables.
y] yj yj yj yj yj yj yj yj yl 10
Staff has a “good” feeling
about consultants’ work.
yl yl yl yl yl yl yl 7
Consultant met all contract
requirements.
yj yj yj yl yj 5
Consultant work was
creative.
yj yj yj V yj 5
Staff would hire consultant
again.
yj yl yl yj yl 5
Consultant used effective
project management
y] j yj yj yj 5
Consultant took ownership
of work.
yj yl 2
Consultant did not use
staff too much.
yl ’J 2
‘ = Summary from all nine government agencies
A = Areata
E = Eureka
U = Ukiah
W = Windsor
SR = Santa Rosa
R P = Rohnert Park
3 = Petaluma
^ = Napa
D = Davis
AID = Woodland
SLT =South Lake Tahoe
YC = Yuba City
C = Chico
R = Redding
O f the 13 areas identified by the staff of Northern California cities and
other agencies as important in evaluating the performance of professional
services consultants once the contract was completed, the six most frequent
ones identified were:
1. Staff, community, and regulatory agencies accept work product.
2. Product is useful.
3. There were few change orders, over runs, or complaints.
65
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
4. Consultant maintained good communication throughout project.
5. Project was completed within budget.
6. Consultant met time and product deliverables.
7. Staff has a “good” feeling about consultants’ work.
Attributes of Outstanding Consultants
7. Key Comments On Consultants
A. Description of an Outstanding Consultant
As shown in Table 4-7 the next page, and based on the answers to the
question, the qualities of an outstanding consultant are:
1. communicates well;
2. uses an outstanding project manager;
3. produces practical/cost-effective products;
4. considers self a member of city agency team;
5. is flexible;
6. produces products on time and within budget; and
is experienced, submits few change orders, and goes “above and beyond”
to provide quality work.
66
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
TABLE 4-7
ATTRIBUTES OF AN OUTSTANDING CONSULTANT
A £ u W SR RP P N D WD SLT YC C R Agencies' Totals
Communicates well y l y l y l y l y l y j y l y l y l y l y l y l y j • 1 y l 15
Uses an outstanding
project manager
y l y l y l y l y l y j y l y l y l y j y j y l 12
Produces practical/cost-
effective products
y l y l y l y l y j y l y l y l y j y j y l • 1 12
Considers self a membei
of city agency team
y j y 1 y l y j y j y j y j •I y j y j y j y l 12
Is flexible y l y l y j y l y j y l y l y l y l y j y j y l 12
Produces products on
time and within budget
y l y l y l y l y j y l y l y j y l 9
Is experienced y l y l y j y l y l y l y l y l 8
Submits few change
orders
y l y l y j V y l y l y l 8
Goes above and beyond y l y l y j y l y j y l y l y l 8
Is highly regarded y l y l y l y l y l y l 7
Submits accurate work y l y l y j • J y j y j y j 7
Presents no surprises y l y j y l y j y j V 6
Is organized y l y l y l y j I y l 6
Listens y l y j y l y l y j 5
Understands local
environment
y l y } y j y l y j 5
Interacts well with staff y l y j y l y j 4
Uses interpersonal skills y l y l y j y j 4
Is available throughout
process
y l y l y l 3
Has fun y l y l y l 3
* = Summary from all nine government aclenoes.
A = Areata
E = Eureka
U = Ukiah
W = Windsor
SR = Santa Rosa
RP = Rohnert Park S
P = Petaluma Y
N = Napa C
D = Davis R
WD = Woodland
LT =South Lake Tahoe
C = Yuba City
= Chico
= Redding
Attributes of Unsatisfactory Consultants
B. Description of an Unsatisfactory Consultant
Table 4-8 presents a summary of what staff from the cities and
agencies described as poor consultants. Many of the people interviewed
emphasized that ineffective or unsatisfactory consultant attributes were
opposite to the results o f what they consider attributes of good consultants
(shown in Table 4-7).
67
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
ATTRIBUTES1 0
TABLE
F AN UNSATIS
4-8
.FACTORY CONSULTANT
A E u W SR RP P N 0 WD SLT YC C R Agencies* Totals
Uses Ineffective Project
Manager
y j y l y l y l y l y l y j y j y l y l j y j y l y l 14
Does Not Meet Schedule
Or Budget Limits
y j y l y l y l y l ■ 1 y j y j y j y j 1 y l " y l 14
Negotiates Low Price
For The Initial Contract,
Then Submits Many
Change Orders
■ 1 y ) y j y l y l y l y j y l y j y j
.... ^
12
Has Poor Interpersonal
Skills
y j V y l y j y j y l y l y j y l 1 V 11
Uses Limited
Communications
Throughout Project
y l y l y l y j y j y j y j y j • 1
.... ^
10
Is Not Flexible Or
Available When Needed
y 1 y l y l y j 1 y j 1 y l 1 y l 10
Has Limited Local
Environmental And
Political Knowledge
y l y l y l y l y l y j y l y j y l y l 10
Is Not Highly Regarded
And Lack Experience
y l y l y j y l y l y j 1
" \l '
9
Tells The Client What
They Want To Hear,
Rather Than Listening
To The Clients Needs A
Telling It Like It Is.
y l < 1 y l y j y j ..... y l 7
Barely Provides What Is
Required In The
Contract
y l y l y j y l y l y l y j 7
Is Not Able To Interact
With Staff
y l y l y l 1 y ) y j 6
Is Not Organized And Is
Not Proactive
y l y l y j y j y j y j 6
Provides Gold-Plated
Designs
y l y l y j y l y j 5
Provides Inaccurate
Work
y j y j y j y l y j 5
Complains And Argues
Often
y l y j y l y j y j 5
* = Summary from all nine government aslenaes.
A = Areata
E = Eureka
U = Ukiah
W = Windsor
SR = Santa Rosa
RP = F
P = Pe
N = Na
D = Da
W D-\
tohnert Park
taluma
pa
v is
W oodland
SLT =South Lake Tahoe
YC = Yuba City
C = Chico
R = Redding
6 8
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Beside the descriptions mentioned above in Table 4-8, the various staff
had additional comments. According to these comments, unsatisfactory
consultants:
1. require client to do most of the work;
2. use project managers that do not (or cannot) control their teams;
3. make poor presentations to staff, council, and community;
4. misrepresent themselves in written proposals (adverse selection);
5. use political officials to get work or to “straighten out” local
government staff;
6. have big egos and talk down to the local government governing
board and staff;
7. are non-responsive to staff requests for information/meetings;
8. change project personnel without gaining approval— use “bait and
switch” tactics;
9. have poor attitudes toward their projects;
10. present poorly developed schedules and cost estimates;
11. provide boiler plate studies;
12. are dishonest;
13. tell people what they want to hear, rather than providing a
professionally sound, well thought-out recommendation; and
14. provide products that do not work and are unacceptable.
69
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
In summary, unsatisfactory/ineffective consultants do not take the time to
understand the local government and the environment in which the work is to be
done. In addition, they do not select the appropriate project managers and/or
staff members that have the necessary experience and interpersonal skills to
work with the client’s staff, complete the work on time, within budget, and with
quality products.
Memorable Experiences With Consultants
C. Good or Bad Experience With Consultants
The research found several examples of both good and bad experiences
that the various cities had with professional services consultants. Because these
examples provide useful information that pertains to this research, key ones are
described in more detail in Chapter 5. The agencies and specific examples
selected are as follows:
TABLE 4-9
LIST OF REPRESENTATIVE CASE STUDIES
CITY/AGENCY PROJECT TITLE
Eureka Case 1: Adorni Memorial Recreational Complex
Case 2: Small-Boat Basin
Ukiah Case 3: General Plan Update
Windsor Case 4: Pleasant Oaks Park Development
Petaluma Case 5: Petaluma Airport Master Plan
Woodland/Eureka Case 6: Comparison of General Plan Updates
Yuba City Case 7: Water Planning Research
Redding Case 8: Project Management on New Town Center
70
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Plans for Using Consultants in the Future
D. Do yo u p la n to use m ore, a b o u t the sam e, o r few er co n su lta n ts
in the fu tu re ?
TABLE 4-10
PLAN FOR USING PROFESSIONAL CONSULTANTS IN THE FUTURE
A E U w SR RP P N D WD SLT YC C R Agencies* Totals
More
4 4 y l y l y l y l 6
About the Same
4 4 y 4 y j y l y l 4 4 9
Less
0
* = Summary from ail nine government aslencies.
As Table 4-10 shows, 60% of the agencies will use about the same
level of professional services consultants with 40% using them more than
they did at the time of the interviews. Very likely, the agencies will use
more consultants in the future due to large and aging infrastructure
facilities (water, wastewater, buildings, streets, and highways)
Desired Changes in Policy or Procedure in Using Consultants
E. W hat changes w o u ld yo u lik e to see fo r co n su lta n ts to do
b e tte r w o rk fo r the c ity ?
1. Use a qualification-based system to select the consultant
and then negotiate the fee with the most qualified team.
2. Convince elected officials of the value of using consultants.
3. Involve elected officials in the selection process.
4. Have a higher dollar amount ($100,000) for which
city/agency managers can select and award contracts.
7 1
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
5. Use more open-end professional service contracts. First,
select a large multi-capability firm that can do many types of
projects (studies, designs, construction management,
estimates, and project management) under a 2 or 3 years
contract. Then, based on needs, develop specific delivery
orders for work by the consultant.
6. Teach staff to manage consultants better.
7. Give some preference to local consulting firms provided they
are qualified.
8. Use positive money rewards (incentives) for projects done
ahead of time and within budget, rather than using liquidated
damages—positive approach.
9. Use program management system to manage many large
projects.
10. Establish a partnership between local government/agencies
and consultants and have training seminars on partnering.
END NOTES
Alderson, Jack, Chief Executive Officer, Humboldt Bay Harbor, Recreation, and
Conservation District, Eureka, California. Personal Interview. March 4,
1996.
Alexander, Tom, Director of Public Works/City Engineer, City of Chico, CA.
Personal Interview. March 20,1997.
72
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Barnes, Darrell, Director of Utilities, City of Ukiah, CA. Personal Interview.
November 22, 1997.
Basptista, Antoine, Community Development Director, City of Chico, CA.
Personal Interview. March 20, 1997. Beatty, Gene. Assistant City
Manager. City of Petaluma, CA. Personal Interview. November 15, 1997.
Blackman, Kenneth, City Manager, City of Santa Rosa, California. Personal
Interview. February 14, 1997.
Bolli, Art, General Manager, Humboldt Municipal Water District, Eureka,
California. Personal Interview. July 16, 1997.
Braden, Susan, Assistant City Manager. City of Napa, CA. Personal Interview.
June 18, 1997.
Brauer, Edward, Assistant City Manager, City of Santa Rosa, California. Personal
Interview. February 6, 1997.
Brust, Ron, Director of Public Works/City Engineer, City of Rohnert Park, CA.
Personal Interview. January 25, 1997.
Buel, Bruce, General Manager, McKinleyville Community Services District,
McKinleyville, California. Personal Interview. August 27, 1997.
Capriolo, Cathy, Assistant City Manager, City of Davis, CA. Personal Interview.
May 15, 1997.
Casey, Steve, City Manager, City of Crescent City, California. Personal Interview.
October 21, 1997.
Christian, Jed, Director of Finance, City of Napa, CA. Personal Interview. April
27, 1997.
Curtis, Kenneth, Director of Community Development, City of Areata, CA.
Personal Interview. November 11, 1996.
Daniels, Ross, Director of Public Works, City of Santa Rosa, California. Personal
Interview. February 6, 1997.
Drawbaugh, Carl, Director of Public Works, City of South Lake Tahoe, CA.
Personal Interview. June 17, 1997.
Duncan, Laura, Deputy Director, Redevelopment Agency/Finance Director. City
of Yuba City, CA. Personal Interview. March 15, 1997.
73
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Duncan, Trish, Assistant City Manager. City of Chico, CA. Personal Interview.
March 21, 1997.
Etton, Gordon, Director of Finance, City of Ukiah, CA. Personal Interview.
November 22, 1997.
Ferris, Michael, Director of Utilities, City of Santa Rosa, California. Personal
Interview. February 20, 1997.
Foltz, Jeff, City Administrator, City of Yuba City, CA. Personal Interview. March
14, 1997.
Galucke, Robert, Director of Public Works, City of Redding, CA. Personal
Interview. September 12, 1997.
Goldberg, Wayne, Director of Community Development, City of Santa Rosa,
California. Personal Interview. February 6, 1997.
Greenway, Dewayne, Director of Public Works, City of Areata, CA. Personal
Interview. November 11, 1996.
Hamblin, Kevin, Director of Community Development, City of Eureka, CA.
Personal Interview. October 31, 1996.
Hargis, Thomas, City Engineer, City of Petaluma, CA. Personal Interview.
November 17, 1997.
Harris, Alice, City Manager, City of Areata, CA. Personal Interview. November
12, 1996.
Harris, Michael, Assistant City Manager, City of Ukiah, CA. Personal Interview.
November 22, 1997.
Harrow, Michael, Finance Director, City of Rohnert Park, CA. Personal Interview.
January 25, 1997.
Herzberger, Thomas, Director of Public Works/City Engineer, City of Eureka, CA.
Personal Interview. October 29, 1996.
Hodgson, Dalphine, Director of Finance. City of Areata, CA. Personal Interview.
November 11, 1996.
Horsley, Candace, City Manager, City of Ukiah, CA. Personal Interview.
November 22,1997.
7 4
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Jamison, Terri, Director of Community Development, City of South Lake Tahoe,
CA. Personal Interview.
Kennedy, Rick, Director of Public Works, City of July 17, 1997. Ukiah, CA.
Personal Interview. November 22, 1997.
Kristensen, Kris, City Manager, City of Woodland, CA. Personal Interview. May
21, 1995.
Lando, Thomas, City Manager. Chico, CA. Personal Interview. March 20, 1997.
Levitz, Carl, Assistant City Manager, City of Rohnert Park, CA. Personal
Interview. February 20, 1997.
Lewis, Diane, Director of Community Services, Town of Windsor, CA. Personal
Interview. January 10, 1994.
Lindsey, Stan, Director of Administrative Services, City of Santa Rosa, California.
Personal Interview. February 6, 1997.
Lorex, Jeff, Director of Planning, City of Davis, CA. Personal Interview. May 15,
1997.
Maker, Philip, Assistant City Manager, City of Woodland, CA. Personal Interview.
May 21, 1995.
McGinty, David, Director of Utilities, City of Eureka, CA. Personal Interview.
November 4,1996.
Meyer, John, City Manager, City of Davis, CA. Personal Interview. May 15, 1997.
Miller, Kerry, City Manager. City of South Lake Tahoe, CA. Personal Interview.
June 14, 1997.
Mintier, Larry, Mintier and Associates, Sacramento, CA. Personal Interview.
December 31, 1998
Mohr, Karl, Financial Planning Coordinator, City of Davis, CA. Personal
Interview. May 15,1997.
Monk, Dan, Town Engineer, Town of Windsor, CA. Personal Interview. January
10, 1994.
Moon, Mike, Director of Administrative Services/ Treasurer, Town of Windsor,
CA. Personal Interview. January 10,1994.
75
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Murphy, Roger, General Manager, Humboldt Transit Authority, Eureka,
California. Personal Interview. February 27, 1997.
Netter, Joseph, City Manager, City of Rohnert Park, CA. Personal Interview.
February 20, 1997.
O'Banyon, Mike, Director of Public Works, City of Napa, CA. Personal Interview.
June 18, 1997.
Otterback, George, Area Construction Manager, Department of Transportation,
State of California, Area One, Eureka, California. Personal Interview.
November 17, 1997.
Perez, Dave, Director of Public Works/City Engineer, City of Davis, CA. Personal
Interview. May 15, 1997.
Perez, Philip, Physical Planner, Humboldt State University, Areata, California.
Personal Interview. October 31,1997.
Poetner, Gary, Vice President (Business Services), College of the Redwoods,
Eureka, California. Personal Interview. May 19, 1997.
Raffaelli, Donald, Assistant Director, Public Works, Humboldt County, Eureka,
California. Personal Interview. October 31, 1997.
Rose, Harvey, City Manager, City of Eureka, CA. Personal Interview. October 29,
1996.
Ruggiero, Janet, Community Development Director, City of Woodland, CA.
Personal Interview. May 15,1995.
Salmon, Warren, Assistant City Manager. City of Petaluma, CA. Personal
Interview. November 15, 1997.
Sawyer, Robert, Director o f Planning, City of Ukiah, CA. Personal Interview.
November 22, 1997.
Scharer, John, City Manager, City of Petaluma, CA. Personal Interview.
November 14, 1997.
Sesnan, Robert, Finance Director. City of Chico, CA. Personal Interview. March
20,1997.
Skoney, Paul, Planning Director. City of Rohnert Park, CA. Personal Interview.
January 24, 1997.
76
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Spilman, David, Director of Finance, City of Petaluma, CA. Personal Interview.
November 14,1997.
Starman, Kent, Deputy City Manager, City of Redding, California. Personal
Interview. July 14, 1997.
Strom, Steven, Director of Finance, City of Redding, CA. Personal Interview.
October 17, 1997.
Swanson, Jerry, Director of Development Services, City of Redding, California.
Personal Interview. July 15, 1997.
Thompson, Pat, City Manager, City of Napa, CA. Personal Interview. February
21, 1997.
Trudgon, Bryan, Senior Planner, City of Yuba City, CA. Personal Interview.
March 14, 1997.
Tuft, Pamela, Planning Director. City of Petaluma, CA. Personal Interview.
November 14, 1997.
Tyson, David, Assistant City Manager, City of Eureka, CA. Personal Interview.
October 29, 1996.
Wagener, Gary, Director of Public Works/City Engineer, City of Woodland, CA.
Personal Interview. May 21, 1995.
Warren, Michael, City Manager, City of Redding, California. Personal Interview.
July 14, 1997.
Wright, Jim, Director of Public Works, City of Yuba City, CA. Personal Interview.
March 14, 1997.
Yost, John, Director of Planning, City of Napa, CA. Personal Interview. February
20, 1997.
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
NOTE TO USERS
Page(s) missing in number only; text follows. Page(s)
microfilmed as received.
78
This reproduction is the best copy available
L J M I
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
CHAPTER 5. REPRESENTATIVE PROJECTS IDENTIFIED FROM
SELECTED NORTHERN CALIFORNIA CITIES
INTRODUCTION
This chapter presents representative projects from which lessons in using
professional services consultants have been learned and are generally
transportable to other jurisdictions. These cases were selected by the
researcher from the data collected during interviews of the fourteen (14) cities.
Each of the eight cases presented includes a general description of the project
and any unique circumstances or strengths, specific issues of the project, and
important conclusive results from the project. Although many similar cases were
described during the interviews, those presented here are the most applicable to
the research in that they provide the most useful insights.
CITY OF EUREKA
Case 1. Adorni Memorial Recreation Center
Project History
Harry Adorni was a lumber baron in Northern California for many
years. He was extremely generous before he died in the early 1980’s and
included several conditional gifts in his will. The most challenging gift was
to the City of Eureka. Mr. Adorni wanted a recreational center built on the
Eureka waterfront. He provided $4 million for the project. The "will"
79
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
stipulated that the city had three years to complete the construction of the
project once the money was released for the city’s use. The money was
held and distributed by a court appointed trustee. Furthermore, the "will"
stipulated that if the Center were not completed in three years, the money
would revert to Humboldt County for its use in building a recreational
center.
Project Description
The Eureka City Manager assigned the strongest staff project
manager to lead the city team. The project process included:
A. Defining the project scope.
B. Identifying the key issues.
C. Establishing a task force of city staff and consultants that met
regularly to communicate and resolve issues.
D. Identifying and obtaining the necessary permits, environmental
studies.
E. Selecting a design firm.
F. Completing the design and soil remediation.
G. Finding a construction firm to construct the project and a top quality
construction management consultant to monitor the work.
80
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
The project was completed in 2-3/4 years, three months ahead of
schedule. The project was successfully completed ahead of schedule in
no small part due to the quality and dedication of the city council, city staff,
consultants, and community members all working as a team.
Key Project Strengths
A. The city manager selected the city’s best project manager to run
the project with compete authority and responsibility. He did not
micro-manage the project.
B. The city developed an Adomi project team from all the key
departments (planning, engineering, utilities, maintenance, county
public works, fire department, police department, and consultants)
with specific responsibilities and milestone dates to accomplish
specific tasks. All team members were held accountable to meet
the milestones, and a comprehensive communication system was
established (reports, meetings).
C. Initial brainstorming sessions with all team members identified
potential problem areas, issues, and concerns, and specific
procedures were established to mitigate those problems.
D. The city council set the Adorni Memorial Recreation Center as the
number one project for the city until it was completed. The council
assisted staff in resolving issues.
81
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
E. The key actions that facilitated completion of the project included:
1. A request for qualifications process and an established
selection team was established for selecting all consultants.
Specific criteria were set for selection, and the same
interview panel was used in selecting all the consultants.
2. The city staff early on decided to use consultants for most of
the project. The consultants were used for identifying and
securing permits, characterizing soil contamination and
providing environmental remediation, facility design, and
construction management. The construction contractor that
was selected had a great deal of experience in building
recreational facilities.
3. The city also used outside consultants for various services
(plan checking, value engineering, and reviews) to expedite
the process.
Lessons Learned
A. The city used an RFQ process to select the best five potential
consultants first, conducted interviews, and then directly negotiated
with the most qualified firm.
82
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
B. The city used the same selection process for all professional
services consultants. This provided continuity and consistency in
the selection process.
C. The primary criteria for consultant selection were:
1. Consultants were experienced at doing the specific scope of
work in Northern California.
2. Consultants used experienced personnel that were available
and dedicated to the project—not "bait and switch.”
3. Consultants used an experienced project manager with
sound technical skills, and more importantly, interpersonal
skills. These criteria were highly important to the selection.
Consultant selection committee members all wanted the
consultant's project manager to be a person with whom they
felt comfortable working. Furthermore, the consultant project
manager had to be flexible and understand the city
environment, policies, and politics.
4. The professional firm selected had enough staff resources
(capacity) so that they would complete the work on time and
within budget.
5. The selection committee did extensive reference checking
on the firms and project managers before final selection was
approved.
83
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
6. The consultant’s key team members had to live in the eureka
area for the duration of the project work.
Case 2. Eureka Small-Boat Basin
Project History
In June 1993, the City of Eureka began the process of renovating
the city small-boat basin. The original small-boat basin was built in 1963
and was used by fishermen (commercial and sports) and recreational
boaters. In October 1994, the city requested professional services
consultants to submit proposals with pricing information to design a new
small-boat basin. The city’s planning estimate was established at $3
million for construction, including $245,000 allocated for design. This
planning estimate was prepared by city staff in 1992. The city wanted the
renovation construction completed by 1997.
In May 1999, the status of the small-boat basin project was as
follows:
Design Fee..................................................... .................... $674,000.
Construction Costs......................................
Project Estimated Completion D ate..........
Thus, the planning costs and schedule for the project were greatly
exceeded due primarily to poor planning and estimating.
84
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Lessons Learned
A. The cost estimate and proposed schedule were done by city staff
with no experience in renovating small-boat basins. The city staff
should have employed, or at a minimum consulted, a professional
consultant with waterfront experience to do the cost estimating and
planning for the project.
B. During the selection process for the design professional services
consultant, a major issue developed, which caused an
approximately 8-month delay. The City of Eureka policy for
selection of consultants is first to “develop a priority list of qualified
firms," and does not take into consideration the consultant fees.
According to policy, the top two firms are then evaluated based on
price and the lowest priced firm of the two is selected. The price
between both top firms needs to be reasonably close (within 10%).
The city staff selected the top qualified firm and made the
announcement without checking the costs proposed by the top two
firms. The second firm protested and addressed the city council.
The city council directed the city staff to go back, do a new proposal
process, and follow the established policy. Based on the second
process, the firm that was not originally selected was then selected
due to its lower bid price. However, a lot of bad feelings developed
between the city staff and the consultant finally selected. This
85
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
animosity continued throughout the design phase. Although the
design firm did an outstanding job, it was never able to develop an
effective dialogue/rapport with city staff.
C. Based on the above experience, the city council's policy now is to
select professional services consultants based on qualifications and
then negotiate a contract with the top firm.
D. Four different consultant firms (construction management,
inspection, engineering, and architectural) managed the
construction of the small-boat basin. All consulting firms report to
the city staff project manager. Thus, significant coordination
problems have occurred among the project consultant firms.
The common practice in most local governments and state
and federal agencies is to have one construction management firm
handle all of the subconsultants. Thus, the city would have only
one consultant and contract to manage and hold accountable. This
concept would allow much better coordination and communication,
would cost less, and the city could go to one consultant providing
direction and building accountability rather than have so many
consultants to communicate with, reports to review, and so on.
8 6
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
CITY OF UKIAH
Case 3. General Plan Update
Project Description
In 1994, the City of Ukiah requested qualifications from professional
consultants to update the city’s general plan. The city sent out a request
for qualifications, and potential consultants were given 30 days to submit
qualifications packets.
The city manager set up a citizen committee to oversee the
General Plan Update project. The citizen committee had no
representatives from the city council or city staff. The city manager
decided that only the committee (made up of citizens) should be involved
in the process. City staff strongly objected and felt that they should be
involved in the entire process; however, the city manager prevailed.
The citizen committee received 12 qualifications packets from
consultants for the general plan update. Based on their own criteria and
no input from staff, they selected a small (2-person) firm from Utah to do
the update. The firm selected was headed by a former Ukiah city
employee and hometown person. He was primarily selected for being a
former city staff member who knew the local environment and many of the
committee members. In addition, the consultant’s presentations were well
done with significant colorful, three-dimensional graphics (more form than
substance). The firm, however, had little experience preparing general
87
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
plans and was behind on many of their current projects. The committee
did not check any references for the firm. Again, city staff was not
involved in the selection process.
Within three months after the consultant started, the progress of the
work was behind and continued to become further behind over the next
three months. The city terminated the contract due to lack of progress,
poor products, and deficient quality and cost overrun. The city was able to
contract with an experienced general-plan consultant to get the plan
updated. The general plan process took over two years longer than
anticipated and was over budget by $200,000.
Lessons Learned
A. Key city staff must be involved in the entire consulting process,
including:
1. establishing the criteria for selection of consultants,
2. advising on the entire process,
3. setting up for and taking notes of meetings, and
4. awarding the contract and monitoring the consultants' work.
B. The citizen committee is a good idea, but staff should be included
in suggesting committee members and then participate fully in the
committee operations from start to completion of the project.
88
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
C. The committee should listen carefully to staff comments on
selection of the best consultant because staff has the professional
expertise, can do reference checks, and should work with the
consultant to get the general plan project completed.
TOWN OF WINDSOR
Case 4. Pleasant Oaks Park Development
Project History and Description
The City of Windsor, through a highly competitive process, selected
an architectural firm to develop Pleasant Oaks Park, a planned park near
a dense housing area. Community members had pushed to have a nice
park developed for years.
The city staff and architectural firm developed a plan, designed it,
and went out to bid for a contractor to build this new park. Once
construction bids were received, the citizens and community became
more involved. Prior to this time, no one but the architectural firm and the
city staff had been deeply involved in the project.
The evaluation of the contractors' bids developed several serious
consequences. The lowest bid was $300,000 over the $400,000 budget,
and the citizens did not like the design. The city staff and architectural
firm had to completely redesign the park. A citizen committee was
established and worked with staff to develop a process to complete the
89
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
project. The committee held monthly meetings and developed a
comprehensive park design. The park was finally constructed two years
later, at a cost of $1.1 million ($700,000 over the original budget).
Lessons Learned
A. With the community involved early (attending monthly meetings and
being part of the team) in a project, it is easier to develop
consensus for the project.
B. Early in the project, city staff or another consultant should have
rechecked costs, and had and a community meeting to revise and
modify.
CITY OF PETALUMA
Case 5. Airport Master Plan
Project History
In 1992, the City of Petaluma requested qualifications packets from
professional services consultants to master plan the Petaluma Airport.
Twelve consultants responded with qualifications packets.
The professional services consultant selected had an experienced
project manager and staff; extensive airport planning experience; knew
the City of Petaluma's issues and concerns; and spent extensive time and
money understanding the city policies, procedures, and political
90
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
environment prior to the request for qualifications being issued. City staff,
a city council member, and citizens were involved in the entire master plan
process from development of the RFQ, through selection of consultants
and monitoring the consultants work.
Lessons Learned
A. The entire project process was well thought out, with city staff,
committee, and consultants communicating well.
B. The city manager stated “this was a fun project because everyone
worked together as a team and we all enjoyed each other's
company” (Scharer, 1997).
CITIES OF WOODLAND AND EUREKA
Case 6. Comparison of General Plan Update Projects
Project Histories and Descriptions
The Cities of Woodland and Eureka both updated their general
plans. The same professional services consultant (Mintier and
Associates) was selected for both cities and had extensive experience in
general plan work. This case research is presented from both the
consultant’s perspective and that of city staff members.
9 1
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
City of Woodland General Plan Update
The general plan update was completed on time, within budget,
and was an excellent product.
City staff and the consultant worked well together. Frequent
meetings were held, and both sides (city staff and consultant) provided
their respective products on time. The contract between the city and
consultant was detailed with specific timelines for product deliverables for
both the city and the consultant. The city planning commission and city
council were kept informed throughout the process.
City of Eureka General Plan Update
The City of Eureka general plan was two years late and had a
significant cost overrun. The consultant was not able to communicate with
city staff effectively due to the staffs lack of available time. The contract
document was not followed. The city staff point of contact was never
available, and the city department director did not want to get involved in
the project.
The consultant has done over 100 general plan updates and
considered this one as the worst work experience in his entire career.
92
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Lessons Learned
A. Develop a detailed contract document with clear, specific
responsibilities and deliverables schedules.
B. Designate and make available a city staff member with well-
developed interpersonal skills (project manager or coordinator) to
work with and monitor the consultant’s work for the duration of the
project.
C. Develop a communication process that ensures feedback and
interaction with all interested community members.
YUBA CITY
Case 7. Water Master Plan Update
Project History and Description
The City of Yuba selected a large and well-recognized professional
services consulting firm to update its water master plan. The plan was
needed to evaluate alternatives to replace the old, worn out water plant
and distribution system.
The large firm (over 3,000 employees) switched the project
manager right after it was awarded the contract. This switch (called “bait
and switch”) is done to replace highly paid project managers with lower
paid (and less experienced) project managers. This happens a lot with big
firms because they get selected with experienced, exceptional project
93
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
managers during the decision-making process but switch team members
to larger, “more important” projects once a contract is signed. (This
practice commonly results in increased revenues for the consulting firm.)
The city contract language was vague with regard to specifying
replacement of identified consultant personnel.
The replacement project manager was young and inexperienced.
He did not communicate well; the project got behind and had overruns.
The consultant project manager was replaced at the request of city staff.
The project was completed, but it was very late and over budget. The city
does not plan to use the large consulting firm again due to this poor work
effort.
Lessons Learned
Include in the contract that specified consultant personnel can be
replaced only with very good reason and with the local government’s
approval. During the interview process, specific questions should be
asked about the availability of the consultant team members. Many
consulting firms over-commit their people.
94
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
CITY OF REDDING
Case 8. Project Management of a New Town Center
Project History and Description
In 1994, the City of Redding hired a professional architect to design
its new city hall. The architect did an excellent job. Prior to going out to
bid for a contractor, the city decided to employ a professional services
consultant to oversee the construction. The consultant would work with
the city to select the construction contractors, monitor the construction
contracts for quality assurance and schedule, review all submittals, and
make sure the new town center was built on schedule and within budget.
The city went through a comprehensive process, and hired a local
firm with extensive project and construction management experience. As
part of the consultant contract, the firm would be paid $15,000 extra
(above the contract amount of $250,000) if the city hall were completed on
time or ahead of schedule.
Incentives are rarely included in local governmental contracts
(design, planning, and construction). Most of the time, the contract calls
for liquidated damages (monetary penalties) for each day beyond the
project’s scheduled completion.
The professional services consultant did get the $15,000 incentive
bonus for having the new town center completed ahead of schedule. In
fact, the firm shared part of the incentive bonus with the construction
95
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
contractors. They all (city, consultant, and contractor) worked effectively
together, and it was a win-win situation for everyone involved.
Lessons Learned
For professional consultants, as well as other contracts, positive
rewards should be included in the contract. The California Department of
Transportation (Caltrans) was successful in getting the freeway re-opened
early after the Northridge earthquake by using this incentive technique.
The construction contractor received millions of dollars in bonuses by
completing the freeway ahead of schedule. However, government must
watch the consultant and contractor carefully to make sure quality is
maintained and that fair labor practices are followed. In some contracts,
both liquidated damages for late work and incentives can be included.
SUMMARY OF SUCCESSFUL CASES
The eight cases presented in this chapter highlight some specific lessons
learned in using professional services consultants. The key points from the
successful cases are as follows:
A. The local government entity must select experienced staff to monitor the
consultant throughout the work. Project managers/coordinators must have
well-developed interpersonal skills.
96
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
B. The successful projects have a sound partnership between the
governmental agency staff and consultant staff. The most important
relationship is between the city/agency project manager (point of contact)
and the consultant project manager (agent). The longer the relationship,
the better the partnership; the better the partnership, the better the project
results.
C. Successful projects received full support from the city council (elected
officials) and city manager. The local government staff member who is the
key contact for the project is given resources and authority to hold the
consultants accountable, thus ensuring a successful project.
D. Excellent and frequent communications (meetings, updates,
presentations, and reports) occur throughout the project, thus ensuring
that consultants are held accountable for their work.
E. Local government staff members are included on the consultant selection
committee. This a practical use of combining interpersonal, conceptual,
and technical expertise.
F. The best consultants understand the local governmental policies and
procedures, and maintain a positive relationship with staff even before the
consultant selection process starts.
G. The RFQ process is more successful than the RFP process for selecting
consultants because it ensures that consultants are selected based on
qualifications rather than on price.
97
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
SUMMARY OF UNSUCCESSFUL CASES
The following conclusions are drawn from the unsuccessful cases.
A. Program/budget cost estimates for complicated projects should be
prepared by consultants and city staff working together in order to get a
more accurate estimate of actual project costs for "out year" projects.
(Schaeffer’s fatal flaw #4, page 23).
B. If the local government agency has policies for selection of consultants,
staff should be held accountable to follow them or seek approval from the
governing board to change the policy for specific reasons (emergency,
unique situations).
C. City staff must check consultant references to make sure they have done
similar successful projects, thus avoiding adverse selection.
D. With most projects (parks, waterfronts, water plants, or wastewater plants)
the community and elected officials should be involved in the project
process (due to project importance and sensitivity) from selection of
consultants through design and construction. (Schaeffer's fatal flaw #1,
page 23).
E. Local government consultant contracts should use built-in incentives-
bonuses for getting work done early.
98
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
END NOTES
Daniels, Ross, Director of Public Works, City of Santa Rosa, CA. Personal
Interview. February 6, 1997.
Hamblin, Kevin, Director of Community Development, City of Eureka, CA.
Personal Interview. October 31, 1996.
Harris, Michael, Assistant City Manager, City of Ukiah, CA. Personal Interview.
November 22, 1997.
Herzberger, Thomas, Director of Public Works/City Engineer, City of Eureka, CA.
Personal Interview. October 29, 1996.
Kristensen, Kris, City Manager, City of Woodland, CA. Personal Interview. May
21, 1995.
Lewis, Diane, Director of Community Services, Town of Windsor, CA. Personal
Interview. February 6, 1997.
McGinty, David, Director of Utilities, City of Eureka, CA. Personal Interview.
November 4, 1996.
Mintier, Larry. President and Owner, Mintier and Associates. Sacramento, CA.
December 31,1998. Interview
Rose, Harvey, City Manager, City of Eureka, CA. Personal Interview. October 29,
1996.
Ruggiero, Janet, Community Development Director, City of Woodland, CA.
Personal Interview. May 15, 1995.
Salmon, Warren, Assistant City Manager. City of Petaluma, CA. Personal
Interview. November 15, 1997.
Sawyer, Robert, Director of Planning, City of Ukiah, CA. Personal Interview.
November 27, 1997.
Scharer, John, City Manager, City of Petaluma, CA.. Personal Interview.
November 14,1997
Starman, Kent, Deputy City Manager, City of Redding, CA. Personal Interview.
July 14, 1997.
99
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Tuft, Pamela, Planning Director. City of Petaluma, CA. Personal Interview.
November 14, 1997.
Tyson, David, Assistant City Manager, City of Eureka, CA. Personal Interview.
October 29, 1996.
Warren, Michael, City Manager, City of Redding, California. Personal Interview.
July 14, 1997.
Wright, Jim, Director of Public Works, City of Yuba City, CA. Personal Interview.
March 14, 1997.
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
CHAPTER 6. COMPARISON OF RESEARCH RESULTS WITH
THEORETICAL FOUNDATIONS
INTRODUCTION
The theoretical foundation for this research consists principally of Agency
Theory and Accountability. Chapter 2 describes Agency Theory and presents
Eisenhardt's two Agency Theory streams: positivist and principal-agent. The
Principal-Agent stream focuses on the different behaviors and goals of the
principal and agent. Eisenhardt's ten testable propositions for Agency Theory
are also presented in Chapter 2. Furthermore, Chapter 2 describes high
performing consultants and management levels compared to skill levels. In this
chapter, each theoretical area is compared with the research results.
The research findings include the following information on local
government professional consulting services contracts:
1. These outcome-based contracts provide for products for a specific
budgeted contract amount by using budgets and milestones.
2. Eighty percent (80%) of them are lump sum contracts with specific
schedules for providing products (50%, 75%, and 100% designs; reports;
pre-construction bid proposal meetings; and so on).
3. Twenty percent (20%) of these contracts are time and expenses-type
contracts with specific deliverables.
101
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Thus, for this research, local governmental professional services contracts
are considered outcome-based.
COMPARISON OF THE RESEARCH RESULTS WITH AGENCY THEORY
Agency Theory focuses on effective types of contracts and minimizes the
risk for the principal (local government). Furthermore, two key problems
sometimes arise in this principal and agent relationship: adverse selection and
moral hazard. The research results indicate that the principal (local government)
and agent (consultant) relationship provides significant risk to the local
government.
1. The local governments do not have effective processes for selection of,
monitoring, and/or evaluating professional services consultants.
2. The local governments are not doing an effective job of screening
consultants during the selection process to ensure that they have the
capability and experience to perform the work (minimize or eliminate
adverse selection).
3. The local governments' consultant contracts are not well developed, with
specific requirements in the contract, and the local governments do not do
an effective job of monitoring consultants' work or holding them
accountable (minimize consultant shirking or providing minimal e ffo rt-
moral hazard).
102
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
4. The relationship between the local government and consultant is
sometimes adversarial— not positive or proactive.
Based on the research results, the following are important aspects of the
contract between the principal and agent:
1. The contract should be specific as to scope of services with deliverables
and their completion schedules specified. (For instance, the 25% design
is due 60 days from receipt of notice to proceed; the local governmental
agency staff will provide comments to the consultant on the 25% design
within 15 days of receipt of the 25% design from the consultant).
2. The contract should include the key points of contracts (who is to receive
and make calls, etc. to whom at each end-agent and principal) and
should specify responsibilities for both the principal and agent. (For
example: the local government project manager is Ms. X, and the
consultant project manager is Mr. Y. The project managers cannot be
changed without mutual agreement by both parties.)
3. The specific methods of communication and monitoring of the consultant's
work must be included as part of the contract. (One way to develop
effective communications between both parties is to require weekly
communication between the agent’s and the principal's project managers,
by means of E-mail, in person, or by telephone). A simple, one-page
report would also work well (Khadem, 1986).
103
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
These weekly reports/conversations should include the following:
• Date.
• Work that was completed during the previous week (since the last
report).
• Planned activity for the following week.
• Problems encountered and measures taken to solve them.
• Requests for information, answers, whatever.
Keeping the report to one page (as possible) and submitting it weekly
ensures short (concise), easy to review provision of useful and timely
information. See Figure 6-1 on page 105 for an example weekly report form.
EISENHARDT'S TEN PROPOSITIONS (AGENCY THEORY) COMPARED
WITH RESEARCH RESULTS
For the purpose of this research, and particularly for this discussion, the
local government agency is referred to as the principal, and the professional
services consultant is referred to as the agent. Although the literature discusses
Agency Theory with respect to two types of contracts (behavior and outcome-
based), this research addresses professional services consultant contracts with
local government as outcome-based. Therefore, the research results are tested
against the ten propositions from an outcome-based contract perspective only.
10 4
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
FIGURE 6-1
WEEKLY CONSULTANT REPORT
Project:
Contract NTP:
Date:
Schedule Completion Date:
Scope of Work:
Local Gov't Agency
Project Manager (Principal) Name
Tel# ______________________
Fax# _________________
E-mail add:
Consultant Firm
Consultant Project Manager Name
Tel#
Fax# ________________
E-mail add:
Weekly Activities:
Planned Activity for next Week:
Issues that Need Attention:
Remarks:
Response Needed? □ Yes □ No
Signature
Response/Comments:
Signature
1 0 5
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Positivist Stream
Proposition 1: When the contract between the principal and agent is
outcome-based, the agent is more likely to behave in the interests of the
principal.
Research Results: These research results reflects that, when local
government develops specific contract deliverables with assigned dates for task
accomplishment with detailed responsibilities for both the principal (local
government) and agent (consultant), and when consultants are held to them, the
consultants perform far better and meet the principals’ needs. Furthermore, the
contract should include what the local government will provide, any incentives for
completing the work ahead of time, liquidated damages, procedure for change
orders, and so on.
Proposition 2: When the principal has information to verify agent
behavior, the agent is more likely to behave in the interest of the principal.
Research Results: This research’s results show that, when the principal
monitors the consultant's progress (by means of weekly reports, meetings,
E-mail, and/or telephone conversations, compare progress with consultant
proposal and billing against project progress, and having a proactive
relationship), positive consultant work is accomplished. Again, Figure 6-1 on
106
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
page 105 provides an example of a weekly consultant report that greatly assists
the local government in providing information on the contract work.
Principal-Agent Stream
Proposition 3: Information systems are positively related to
behavior-based contracts and negatively related to outcome-based
contracts.
Research Results: Based on these research results, information systems
are positively related to outcome-based contracts. The more that information
systems (meetings, presentations, telephone calls, E-mails) are used, the higher
is the probability that the principal (local government) will be able to appropriately
monitor the behavior of the agent (professional service consultant). Furthermore,
for outcome-based contracts (specifically construction contracts), information/
communication is essential for effectively monitoring contractor progress. Finally,
findings show that ineffective consultants misrepresent their capabilities at the
time of hire (adverse selection) and have a tendency to shirk their responsibilities
(moral hazard). Thus, the more frequently positive communication and
information flow between the local government (principal) and the consultant
(agent), the more effective and efficient is the consultant's work product.
Proposition 4: Outcome uncertainty is positively related to behavior-
based contracts and negatively related to outcome-based contracts.
107
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Research Results: This research shows that, when specific detail is
included in a contract between a principal (government agency) and agent
(professional services consultant), uncertainty is reduced. Details in contracts
should include by whom, what, where, when, why, and how any specific action
will be completed. The more both parties (principal and agent) completely
understand their responsibilities, the lower the uncertainty. With outcome-based
contracts (for instance: a professional service engineer must design a road to
meet certain design standards, by a certain date) the uncertainty can be reduced
by clear and detailed responsibilities being defined for both the agent and the
principal. For example, the local government will use its own staff to obtain all
permits needed for a construction project, but the principal (government agency)
must keep the construction management consultant informed as to progress
made on each permit. (This information is critical to the consultant with regard to
scheduling the construction contractor's actual work, meeting milestones, and not
duplicating work.)
Proposition 5: The risk aversion of the agent is positively related
to behavior-based contracts and negatively related to outcome-based
contracts.
Research Results: Professional consultants prefer behavior-based
contracts because their risk is low. This research shows that consultants have a
high risk in outcome-based contracts because they must produce high-quality
108
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
work products on time and within budget, or risk not being paid, terminated, or
suffering a penalty. To ensure that the consultants have the most risk, local
government project managers must closely monitor the consultants’ work and
measure it against specific contract requirements.
Proposition 6: The risk aversion of the principal is negatively related
to behavior-based contracts and positively related to outcome-based
contracts.
Research Results: Outcome-based professional sen/ice contracts
provide better control by the principal with specific deliverables by the consultant
at a certain time. The real risk is largely with the consultant, who would suffer
negative consequences if the product were not delivered as the contract
requires.
Proposition 7: The goal conflict between principal and agent is
negatively related to behavior-based contracts and positively related to
outcome-based contracts.
Research Results: Since professional service consultant contracts
usually require technical, highly complex tasks, the best contract is an outcome
based one. With the outcome-based professional services consultant contract,
the goal conflict is less likely than with a behavior-based contract.
109
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
P roposition 8: Task programmability is positively related to behavior-
based contracts and negatively related to outcome-based contracts.
Research Results: The professional consultant, as defined in this
research, does not usually have many tasks that are programmable. Thus, this
proposition does not apply.
P roposition 9: Outcome manageability is negatively related to
behavior-based contracts and positively related to outcome-based
contracts.
Research Results: Since professional-services consultant contracts
should be outcome-based, a positive relationship exists with outcome
management.
P roposition 10: The length of the relationship is positively related to
behavior-based contracts and negatively related to outcome-based
contracts.
Research Results: The length of the professional relationships between
principals and "effective consultants” (agents) included in this research ranged
from one to three years in duration. Thus, the length (age) of the relationship is
positive even for outcome-based contracts and for long periods. Ineffective
consultants do not last, in general, if they continue to perform poorly.
110
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Furthermore, local governments tend to continue hiring the same
consultants again and again, if they perform well.
ACCOUNTABILITY
The professional services consultant should be accountable to the local
government project manager in meeting contracted requirements. Johnston and
Romzek (1999) argue that the more difficult issues of Accountability (establishing
expectations, verifying performance, monitoring the progress of the agent, and
sorting out responsibilities) are often verbalized but not written out. Each of
these topics should be specified in the contract.
Many of the city managers and other city staff interviewed felt that
Accountability was lacking from both the local government and consultant
perspectives. Local governments, in general, ineffectively monitor consultants,
and fail to hold consultants accountable for their work. Local government project
managers are either too busy or shirk this responsibility. On the other hand,
consultants must also hold local governments accountable to meet their
contractual responsibilities. Local governments should be forthcoming with
information needed by consultants and should provide timely comments on work
products. Local governments and consultants can hold each other more
accountable by implementing better monitoring methods. The relationship
between the principal and agent project managers is critical. They must work as
a team and develop a good communication method. Based on this research,
111
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
more work is needed in this area. As noted in Chapter 2, the local governments'
responsibility must include:
1. developing and following clear policies for selecting, monitoring, and
evaluating consultants (not applied by most of the local governments
included in this research);
2. preparing clear RFPs/RFQs (not applied by most of the local
governments included in this research);
3. developing detailed scopes of services for each contract (applied by
most of the local governments included in this research);
4. assigning responsibilities for both the principal and the agent (what each
will furnish the other) (applied by most of the local governments
included in this research, but needs improvement);
5. specifying timelines for milestones (not applied by most of the local
governments included in this research);
6. designating a specific staff-member (normally called out in the contract
and referred to as the government project manager) who will monitor work
progress and act as the consultants' primary contact and source of
direction and/or information (applied by most of the local governments
included in this research, but needs improvement);
7. establish a communication system between city staff and consultants
(weekly meetings. E-mail, presentations, and so on) (applied by most of
112
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
the local governments included in this research, but needs
improvement); and
8. ensure that consultants provide all contracted services and deliverables
(either not done well when applied, or is not applied at all);
The consultants' responsibilities are:
1. clearly understand what is expected (applied by most of the
consultants included in this research, but needs improvement);
2. designate a person as the primary contact with the local governmental
agency (consultant project manager) (applied by most of the
consultants included in this research, but needs improvement);
3. use the appropriate staff members to meet contract demands (applied by
most of the consultants included in this research);
4. communicate with city staff, other consultants, and subconsultants
(applied by most of the consultants included in this research, but
needs improvement);
5. meet the schedule for milestones and deliverables (applied by most of
the consultants included in this research, but needs improvement);
6. meet the contract budget amount (applied by most of the consultants
included in this research);
7. produce quality deliverables (applied by most of the consultants
included in this research);
1 1 3
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
8. the consultant project manager must develop a good working relationship
with the local government's primary contact (either not done well when
applied, or is not applied at all); and
9. develop trust and respect (applied by most of the consultants included
in this research, but needs improvement).
Based on the research information, the local governments and consultants
need to work on developing a workable accountability system to meet the above
responsibilities. Both the local governments and consultants must hold each
other accountable for their respective responsibilities.
HIGH IMPACT CONSULTANTS
As presented in Chapter 2, Schaefer presents three outcomes that are
necessary for successful consultant service contracts. The following discussion
compares these three outcomes to the research results:
1. The consultant m ust provide a solution o r a m ethod new to the
c lie n t
Research Results: Validated. The consultant must meet the contract
requirements (deliverables etc.). For example, complete a design for water
treatment plant that meets regulator requirements, within budget.
114
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
2. The clie n t m ust achieve some measurable im provem ent in its
resu lts b y accepting the consultant's solution.
Research Results: Validated. For example: The consultant's design
work is complete, accurate, meets all regulatory and local requirements, and is
used by the local governmental agency as the primary document for selecting
construction contractors who will build the project.
3. The clie n t m ust be able to sustain the im provem ent over tim e."
Research Results: Validated. For example: A professional services
planning consultant completes an environmental impact report (EIR) for a
waterfront development complex (several different types of facilities-hotel,
market, restaurant, condominiums). This EIR must be used without changes for
years because in a mixed-use development some of the projects may take years
to actually be built (due to financing), permitting, and the public hearing process.
Schaeffer also presents five fatal flaws of consultants (page 23). These
five flaws are compared to the research results below.
1. The p ro je ct is defined in term s o f the consultant’s expectations o r
product, n o t in term s o f specific results to be achieved fo r the
c lie n t
1 1 5
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Research Results: Validated. The non-metropolitan/rural cities
researched have limited staff so most projects are developed to solve a problem,
rather than focussing on major changes and future growth. For example:
Humboldt Transit Authority (HTA), Eureka, California plans to replace its small
water treatment facility with an upgraded version of the large-size system. A
better approach is to identify the future changes (in five years HTA will have
twice as many buses and will be using altemative-energy fuel systems), and plan
to accommodate them. Thus, HTA should plan for a complete water treatment
facility with improved capacity that not only handles more buses, but altemative-
energy vehicles as well. HTA also faces increasing costs for water usage and
discharge. Thus, the new water treatment facility should be able to recover water
from rain, storm water runoff, and work areas. This would result in a significant
reduction in water usage, costs, and sewer disposal fees. Based on this
recommendation, HTA has chosen a system that will serve its immediate needs,
but is the first installment of a larger (phased) system.
2. The p ro je ct’s scope is determ ined so ie ly b y the subject to be
stud ied o r problem to be solved, ig no ring the clie n t's readiness
fo r change.
Research Results: Validated. Consultants tend to research the problem
at hand and not look ahead to the end product. For example, the City of Eureka
wants to develop its waterfront. The city hired a consultant to master plan the
development. The consultant developed the master plan completely, but the city
116
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
cannot afford to implement the development. An effective consultant would have
developed several alternatives initially, estimated costs, and worked with the city
to develop a phased, affordable approach to implementation.
3. The project aims for one big solution rather than incremental
successes.
Research Results: Validated. For example, the City of Crescent City
has a serious problem with wastewater. One solution recommended by
professional services consultants is to design and build a regional wastewater
treatment facility (today, there are several small plants, owned and operated by
separate special services districts, the county, and the city). A different (and
better) approach would be to expand/improve the current plants’ capacities and
build a regional plant in the future. By expanding and improving the efficiency of
the current plants, millions of dollars could be saved for this financially strapped
community. Unfortunately, the City also must satisfy a strong citizen demand for
decommissioning the existing plant because it is in a tourist-attraction zone. To
date, there have been no alternatives developed that satisfy all concerned
groups and that the community can afford.
4. The p ro je ct entails a sharp d ivisio n o f responsibilities between
clie n t and consultant; there is no partnership between them.
1 1 7
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Research Results: Validated. Most cities do not have close
relationships (partner-like) with their professional services consultants.
Consultants should be considered to be an extension and a team member of the
local government staff.
5. The project makes labor-intensive use of consultant; instead of
leveraged use.
Research Results: Validated. The leveraging takes place when the
experienced consultant works closely with the local government, perhaps even
turning over some of the work to the local government staff. This mentoring,
training, and transfer of work needs to be developed and clearly articulated in the
consultant contract.
MANAGEMENT LEVELS COMPARED TO SKILL LEVELS
Table 2-1 presents the theoretical relationship between management
levels and skill levels. This information is repeated in Table 6-1, which also
presents the research results compared to the theoretical relationship between
management and skill levels.
1 1 8
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
TABLE 6-1
RELATIONSHIP BETWEEN MANAGEMENT AND
COMPARISON OF THEORETICAL AND RESEAF
SKILL LEVELS:
ICH RESULTS
Technical Interpersonal
(Human)
Conceptual
Theoretical Research
Results
Theoretical Research
Results
Theoretical Research
Results
Elected Officials/
Governing
Board
N/A M H L H M/L
Executive' L L H M/L H M
Middle-
Management2
M H H M/L M L
Supervisory3 H/M H M L L L
Non-supervisory H H L L N/A L
H High Level (necessary)
M Medium Level (important)
L Low level (not very important)
N/A Not applicable
1 Executive Level includes city managers
2 Department Director, Project Manager
3 Section or Crew Chief, Lead Worker
As Table 6-1 shows, in practice, elected officials (city council members,
supervisors, commissioners) are addressing lower level skills (technical) when
they should focus on working with staff, consultants, and other governmental
agencies to devise future direction and vision for the jurisdiction. Thus, the
research shows that officials are involved to a greater extent than necessary in
the consultant selection process.
Executive-level managers (city managers) should focus on and improve
their interpersonal skills. They should also be working with elected officials on
policy and leadership (vision and growth). It is important for executive-level
managers to ensure that comprehensive consultant selection, monitoring, and
119
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
evaluation processes are well established. They should also work with
department directors on selecting quality project managers to monitor
consultants.
Middle managers (department directors, project managers) focus on
technical skills rather than on interpersonal skills (proper use of personnel,
networking, and coordination). Thus, based on the research findings, both
governmental and consultant project managers must work on improving their
interpersonal skills.
Although in theory supervisory level managers should be focusing on the
technical aspects of their jobs, they seem to be too concentrated there, when
they should be expanding their interpersonal and management skills for future
practice and growth. Non-supervisory-level personnel should continue to focus
on technical skills. (However, they should develop interpersonal and conceptual
skills for their own personal [and professional] growth.)
Thus, as noted several times in this research, the most critical contract
relationship that can provide the best results for both the principal and agent is
the relationship between the local government's point of contact (project
manager) and the consultant's project manager. Based on the research results,
both project mangers need to develop better interpersonal skills.
120
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
The relationship between the principal (government project manager) and
agent (consultant project manager) must include:
1. Trust.
2. Frequent communication.
3. Truth in the form of professional recommendations-not just what the
principal wants to hear.
4. An attitude toward assisting each other.
5. Relaxation and enjoyment of (having fun with) each other.
6. Team work.
7. Working together to get the job done, no matter what it takes.
8. Complying with the contract specifications, responsibilities, deliverables,
quality, timeline, all within budget.
These two key people must be given authority commensurate with
responsibility, and they must be able to make decisions. They should have
latitude to draw upon the vast resources of each organization when necessary.
As Denhardt (1992) mentions, the higher management (local government and
private consultants) must give broad authority, responsibility, and approval power
to the key project individuals. The research results indicate that the local
government project manager must have more authority and decision making
responsibility.
For large, complex local government projects that require the use of
professional consultants, the selection of the key local government and
121
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
professional services consultant project managers is critical. These individuals
must have technical, interpersonal, and conceptual management abilities, as
shown in Table 6-1. The research results show that these two project managers
need to focus more on interpersonal skills and less on technical skills. They
should obtain the technical expertise from others on their respective teams.
Without the capacity to see the big picture and have effective, professional
communications (at meetings, presentations, and so on), the two key managers
do not provide top quality products. The technical skill aspect is important but
can be accomplished by having technically sound people on the team that can be
drawn upon. The required team is made up of both the local government staff
and professional services consultant staff. The most successful projects result
when the consultant staff is considered as a part of the local government staff.
END NOTES
Denhardt, Robert. The Pursuit of Significance: Strategies for Managerial Success
in Public Organizations. Belmont, CA: Wadsworth Publishing Company.
1992.
Eisenhardt, Kathleen. "Agency Theory: An Assessment and Review," Academy
of Management Review. Vol. 14. No. 1. 1989. 57-74.
Hersey, Paul, Kenneth Blanchard, and Dewey Johnson. Management of
Organizational Behavior Utilizing Human Resources. Upper Saddle River,
NJ: Prentice-Hall, Inc. 1996.
Johnston, M. Jocelyn, and Barbara S. Romzek. "Contracting and Accountability
in State Medicaid Reform: Rhetoric, Theories, and Reality," Public
Administrative Review. Vol. 59. No. 5 September/October 1999. 383-399
122
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Kearns, Kevin. Managing for Accountability. San Francisco, CA: Jossey-Bass,
Inc., Publishers. 1996.
Khadem, Riaz. One Page Management. New York, NY: William Morrow and
Company. 1986.
Kotter, John. A Force for Change: How Leadership Differs From Management.
New York, NY: The Free Press. 1990.
Pratt, John, and Richard J. Zeckhauser. Principals and Agents: The Structure of
Business. Boston, MA: Harvard Business School Press. 1985.
Schaeffer, Robert. High Impact Consulting. San Francisco, CA: Jossey-Bass,
Inc. Publishers. 1997.
1 2 3
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
CHAPTER 7. GENERIC MODEL FOR LOCAL GOVERNMENTS IN
SELECTING, MONITORING, AND EVALUATING PROFESSIONAL
SERVICE CONSULTANTS
INTRODUCTION
As presented in the research results (Chapter 4), most local government
agencies (60%) plan to continue using professional service consultants at about
the same level as they do now while others (40%) intend to use consultants
more. Furthermore, the research results reflect a wide spectrum of how
consultants are selected, monitored, and evaluated once a contract is complete.
This section provides a generic model for use by local government staffs
in selecting, monitoring, and evaluating professional services consultants. This
model is based on the findings from information collected in this research and the
researcher’s experience using consultants as a government administrator
(federal governmenMJ.S. Army Corps of Engineers, and assistant city manager
in a Northern California city [Eureka], and four years as a regional manager with
two private [one small and one large] engineering firms). This model is designed
to assist local government agencies in effectively and efficiently using
professional service consultants.
1 2 3
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
DETERMINATION OF THE LOCAL GOVERNMENT AGENCY'S NEED FOR
PROFESSIONAL SERVICE CONSULTANTS
Staff Capacity
An essential consideration for the local government administration is to
determine whether its own staff can do the task at hand. Important items to
consider include:
• Staff workload.
• Project complexity.
• Authority for determining whether a consultant can be used~what level of
approval, and by whom.
• Urgency of getting the work done considering quality, timeliness, and
budget.
• Clear understanding of the scope of work, costs, and complexity by the
staff (staff may not have specific experience in the type of work, so some
projects may need a consultant to develop the scope, costs, and
timeframe to perform the work).
• Need for neutral party (consultant) to provide an objective, neutral, and
professional product.
Consultant Selection Policy
Many local government agencies do not have a clearly defined policy on who
decides to use a consultant and on what level of approval is necessary.
124
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Such a policy should be developed for every agency that uses consultants and
should include:
• Responsible person/entity to determine when to use consultants.
• Fee levels for various levels of approval (such as, department directors
can approve up to $x; city manager can approve up to <$y; and city
council approval is needed for >$y or more.)
• Procedures for selection, monitoring, and completing the consultants'
work.
As noted in several books on management and leadership (Drucker, 1996;
Gardner, 1997; Kotter, 1990), responsibility and commensurate authority for
decisions should be at the lowest, practical level. The city manager and city staff
should have significant discretion in determining the use of consultants. O f the
cities and agencies interviewed for this research, the City of Woodland provides
the most flexibility for using consultants. In its annual budget, capital projects are
approved and it is at the city manager's discretion as to how to use city staff
and/or consultants (within budgetary limits). The city council is kept informed,
but allows the city manager broad latitude to get a project completed using
consultants.
Furthermore, some governmental agencies are allowing city managers
and staff more approval authority (higher dollar amounts for fees) to directly hire
consultants. This research recommends that city managers in jurisdictions of the
sizes studied be given authority to select consultants for fees less than or equal
125
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
to $100,000. Once the city manager has selected the consultant, the elected
body should be informed of the decision. For projects that cost over $100,000,
the city council should be included in the approval process.
Finally, the U.S. Army Corps of Engineers has moved to selecting general,
full-service capability (planning, design, permitting, construction management)
consultants for open-end contracts for one year, for a prescribed dollar amount
(commonly $1 million or more) renewable for another year at a time. Essentially,
consultant selection is competitive. Once the consultant has been selected,
individual work orders for specific tasks (design, inspection, permit processing,
scheduling) are issued. This open-end contract process saves the Corps both
money and time, since Corps staff does not have to go through a selection
process for every work order. This open-end consultant agreement would work
well in local government. Most of the staff members surveyed were very
receptive to this approach.
DETERMINING THE METHOD FOR CONSULTANT SELECTION
Once a decision is made to use a professional service consultant, the
following steps should be accomplished:
A. Determine whether the request for consultant services should be through
an RFP (Request for Proposal) or an RFQ (Request for Qualifications).
As defined in Chapter 1, an RFP requires consultant qualifications,
experience, approach, and fees; an RFQ can require everything in the
126
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
RFP, but it emphasizes qualifications and approach, not fees. The RFQ is
recommended for professional service contracts. For the purposes of this
research, the remainder of this model assumes that RFQs will be used.
Once a consultant is selected based on qualifications, the local
governmental agency would negotiate a comprehensive contract including
scope and fees.
B. Develop a specific and clear scope of services for the RFQ. Many times,
local governments use consultants to develop a detailed scope of services
(RFQ), along with specific deliverables and timeframes to accomplish the
work. The development of the scope of services is very important and
should leave very little doubt as to the services needed.
C. RFQs should include clear scopes of services (with deliverables and
schedules for providing them), special requirements, what is expected
from the consultants in response to the RFQ (number of pages, format),
selection criteria, and timeframe for the selection process. (Based on the
research information, many local governmental agencies do not develop
thorough and complete RFPs/RFQs.) RFQs should also provide any local
requirements (such as minority or disabled consultant considerations and
goals, local consultant participation, points for having a local office, and so
on). Finally, RFQs should include copies of or access to studies, reports,
and other technical information that would be useful to consultants when
preparing their statements o f qualifications.
127
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
As the research results show, the most important consideration is
selecting the most capable and qualified consultant, and then ensuring that he or
she provides quality work, within budget and on schedule. Too much emphasis
is placed on using local consultants and the one with the lowest fees. Most
Northern California cities surveyed in this research have populations of less than
40,000 people. Most are not near a larger city that would offer numerous (local)
consultants, so it is unrealistic to require local consultants, especially when
extensive, special expertise is required to complete complex, large, challenging
projects.
DETERMINING SELECTION CRITERIA
An important part of the consultant selection process are the criteria used.
The established criteria must be decided upon before the RFQ is sent out to
consultants. Table 7-1 provides a suggested guide for determining consultant
selection criteria based on the research findings and the researcher's extensive
personal experience.
TABLE 7-1
SUGGESTED CONSULTANT RFQ SELECTION CRITERIA
Criteria____________________________________________________% Weight
Experience on similar projects in local area and in general............................ 10%
Project Manager's experience...................................................................... 20%
Project Team experience and capability........................................................20%
Approach to meeting the scope of services...................................................30%
(creativity, efficiency, and proof of understanding of project goals)
Availability of staff to accomplish the project tasks......................................... 10%
Local requirements if any (minority, disabled consultant goals)......................10%
Total 100%
1 2 8
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
SELECTING AN EVALUATION COMMITTEE
The consultant selection committee should be comprised of a variety of
people with different backgrounds and experience. The total number of
committee members should be an odd number (3, 5, 7). An odd number of
members allows for majority voting. Based on the researcher’s personal
experience, the optimum number of committee members is five (5).
A list of individuals recommended for inclusion as selection committee
members is as follows:
A. The local government agency’s designated project manager (usually in
engineering, public works, or utilities).
B. A department director, city manager, or assistant city manager (executive
or mid-management level). This person should serve as the committee
chair person.
C. Finance representative.
D. Elected official (from the local government agency that needs the
services).
E. Community member (usually involved in some part of the project).
F. Technically experienced person, perhaps from another government
agency that has similar projects or is involved in the project being
discussed.
129
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
The City of Santa Rosa has a policy that, for large, complex projects, an
elected official is on the selection committee. This elected official, therefore,
understands the selection process and can explain it at a city council meeting if
necessary. Furthermore, the selection committee chairperson should be middle
management level (department director) at a minimum, since managers
commonly have more relevant experience than do others and are experienced at
facilitating meetings, resolving disputes, and understanding the general and
(perhaps) specific aspects of the project.
RFQ ADVERTISEMENT
Once an RFQ has been prepared and the selection committee has been
appointed and has approved the RFQ, the RFQ should be sent out for consultant
consideration.
The following should be considered if the city is seeking a large consultant
response to an RFQ.
A. Advertise in local, regional, state, or national papers and focus magazines.
B. Send RFQs to consultants in local area, plus consultants from a list
provided by such agencies as the League of California Cities and the
American Society of Civil Engineers, American Institute of Architects.
C. Send RFQs to consultants who have provided quality work previously in
the local government.
130
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
D. Send RFQs to consultants who have technical or unusual experience and
have shown interest in the particular scope or work.
The local government should be careful not to have too wide of a
distribution for its RFQ. Too wide a distribution may attract an excessively large
number of respondents, and the committee could be overwhelmed with
proposals to review. The selection committee should discuss the distribution of
the RFQ. Eight to ten consultants is a reasonable number of proposals to
receive. The local governmental agency should allow 30 days for a consultant
response to the RFQ once it is sent out. This research shows that less than 30
days preparation time for the consultant results in a smaller number of responses
and the ones received are of poorer quality.
Finally, a pre-bid meeting should be held about one week after the RFQ
has been distributed. This meeting allows consultants to ask questions, and
clarify particular points in the RFQ. The meeting should be lead by the local
government project manager. The selection committee should observe these
proceedings.
SELECTION COMMITTEE PROCEEDINGS
Once the proposals are received from consultants, the selection
committee should meet to discuss the scoring procedures, hand out the proposal
copies, set dates to submit individual evaluations, and schedule a committee
meeting to discuss the results.
131
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
The scoring method can vary. Some committee members score the
proposals individually and the results are tabulated at a meeting. However, a
more successful method is as follows:
A. Committee members score the proposals individually and rank them
according to committee-approved criteria (these criteria should be
provided as part of the RFQ).
B. The committee then meets and each member discusses his or her results.
C. Once members have discussed their results, each committee member
reviews his or her scores, completes a score card, and submits it to the
chairperson.
D. The chairperson and staff then tally the scores (usually while the
committee is at lunch) and present the results to the full committee for
comment and discussion.
E. Based on the discussion, the committee approves the results. (Note: The
committee results must be kept confidential.)
F. The chair person and staff check references of the top two firms.
Although very unlikely, the local government may not be able to negotiate
with the top firm and must revert to the second one. Doing reference
checks on both firms can save significant time in such a situation. Also,
these reference checks can provide valuable information on both firms for
reference in making future selections.
13 2
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
G. The selection committee should meet once more to discuss the results of
the reference checks.
CONSULTANT SELECTION AND LOCAL GOVERNMENT APPROVAL
Once the consultant selection committee has completed the work, the
governing board should approve the selection and authorize staff to negotiate
with the top consultant for a "not to exceed dollar amount."
With the strong competition among consultants, these selection and
approvals can become a real problem if not handled correctly. For example, as
mentioned in Chapter 5 (page 84), the City of Eureka Small-Boat Basin contract
had to be re-advertised because approved policy was not followed by city staff in
the original selection process. The process was delayed eight months,
significant staff and consultant time was wasted, hard feelings were developed,
city staff was embarrassed in front of the city council, and the project costs and
time to complete the project far exceeded projections.
Based on this research, a good method for notifying the top consultant
firm is to inform the selected consultant in advance of the governing board
meeting, when the matter is to be considered at that level. The consultant should
meet with governing agency staff before the governing board meeting and assist
the staff where necessary, in aspects of their staff report. The governing board
meeting should have the top rated consultant firm in attendance (possibly even
the second-rated consultant) to answer any questions.
133
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
The staff-report to the governing board should be final and
comprehensive. It should present all aspects of the selection process (a copy of
the RFQ, selection committee meeting notes, proposal rankings, and overall
reason for selection). The governing board should consider and approve (or
appropriately deny) the committee recommendation. The governing board
should then turn the process over to the local government staff for negotiating the
contract with the top-ranked consultant.
NEGOTIATING AND DEVELOPING A CONTRACT WITH TOP CONSULTANT
The local government representative now has full authority to negotiate a
contract. He or she meets with the selected consultant to negotiate a final scope
o f work and price. Because the negotiations are so important, some government
agencies use someone other than the local government project manager to
negotiate the contract. The negotiation process is very technical and an
experienced negotiator (such as a city attorney or some other executive level
manager with experience in successfully negotiating involved, technical
contracts) is essential to get the best contract. Normally, local government
project managers are not good negotiators. Another advantage of not having the
local government project managers be the negotiators, is that consultants do not
perceive them as “the bad guys.” This allows good working relationships
between local government project managers and consultants to develop more
easily.
134
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Key items in the professional services contract include:
A. The scope of services must be clearly defined, with specific deliverables.
B. The schedule must clearly state submittal dates for specific deliverables.
C. Key consultant team project members should be designated, and any
changes in consultant staff should be required to be approved by the
governing agency. The consultant's proposal should be used as a guide
to see if consultant staff differs from those the consultant proposed. Doing
this comparison reduces the chance that the consultant will "bait" with key
players in their proposal and then "switch" to lesser-qualified personnel to
actually execute the work.
D. All subconsultants should be identified (key personnel, their roles and
responsibilities).
E. Local government project managers' name and responsibilities, with
deliverables, should be clearly defined. (Time must also be allowed for
reviewing reports, attending required meetings, and so on).
F. Communication and reporting procedures should be clearly presented.
G. Type of payment and billing and reimbursable expenses must be
presented. The specific rates of individuals and for designated services
should be presented, as should allowed reimbursables and exclusions.
H. Considerations should be given to providing incentives for the consultant
by saving the agency (city) money (value engineering), by completing the
project ahead of schedule, and/or to provide a better quality product than
135
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
contracted. As presented in Chapter 5 (page 95), the City of Redding
contract with the project management consultant overseeing the city hall
construction offered a $15,000 bonus if the construction were of
acceptable quality, completed on time, and within budget. Furthermore,
California Department of Transportation (Caltrans) is using positive
incentives for many of its projects, rather than using penalties if projects
are not done on time or within budget. They have had positive results with
contractors and consultants being motivated to get the job completed
early, within budget or less, and of excellent quality. The researcher
believes that there is simply too much focus on penalizing "sticking it to"
consultants for not getting work done, rather than providing rewards. With
some projects that must be completed in a specific time (that is, if the
project is not finished on time, the government will suffer), liquidated
damages should be included as a part of the contract. Liquidated
damages are assessed to the contractor (or consultant) when work is
behind the contract-specified due date.
KEEPING THE GOVERNING BOARD INFORMED
Once the contract has been successfully negotiated and executed, the
governing board should receive a short staff report outlining key aspects of the
contract and a copy o f the actual contract. The report should identify the staff
136
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
project manager selected for the project and the person who will be monitoring
the consultant's work.
MONITORING THE CONSULTANT'S PROGRESS
Monitoring of the consultant is a very important step in ensuring that the
work is completed according to the contract. The research results indicate that
consultant contracts are not being monitored adequately.
The key aspects of monitoring the consultant work include the following
steps:
A. Ensure that the local government project manager is technologically
qualified, has sufficient time and resources, and has the interpersonal
skills needed to manage the consultant. The project manager requires
some formal training (project controls, budgeting, team building) to
perform their very important tasks.
B. The local government project manager must develop a good relationship
with the consultant project manager. It should be a win-win situation and
very positive. They should support each other and work together. There
should be some higher local staff person (department director or higher)
that periodically ensures a good working relationship between the local
government project manager and the consultant project manager. The
research results indicate that the relationship between the two project
managers needs improvement.
137
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
C. The local government project manager should use the following tools to
assist in monitoring the consultant:
1. Original consultant proposal.
2. Deliverables, timelines, and responsibilities from the actual
contract.
3. Bar chart or some detailed schedule.
D. The following are ways to monitor the consultant's progress:
1. Weekly updates from consultant (a short one or two page report,
which shows progress for the week, by whom, and a plan for the
upcoming week). This report should be due late on Thursday and
should give sufficient detail for the local government project
manager to understand the work. See the suggested report form
(Figure 6-1).
2. Frequent meetings with consultant to review products and
deliverables, and to see if timelines are being met.
3. Reviewing monthly progress payments to see if they are
reasonable compared to planned work progress as indicated in the
contract and proposal.
4. A formal monthly update meeting including the consultant and local
government staff. Key local government staff that have affected by
the project should attend this meeting.
1 3 8
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
5. Project manager should report status of project, at a minimum of
monthly, to interested affected staff.
6. Have informal get-togethers, such as lunch or happy hour.
7. Getting to know each other on an informal basis, about such things
as likes and dislikes is very important.
E. Potential indicators that the consultant may be deficient include:
1. Changing personnel.
2. Making excuses why work is not done and it is never the
consultant's fault.
3. Poor work products-typos, calculation errors, poor presentations.
4. Billings are not consistent with work done.
5. Adding more people in specialties they presented that they had the
capability to accomplish.
6. Lack of enthusiasm, motivation, and/or poor attitude.
7. Changing scheduled meetings frequently.
8. Asking for change orders although they are not justified and the
work is within their contracted scope.
9. Vague answers to specific questions from staff.
Where any of these indicators occur, the local government must assess
the situation carefully, and take swift action.
139
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
EVALUATION AND ACCEPTANCE OF CONSULTANT'S WORK
The local government project manager must monitor the progress and
quality of the consultant's work. Since consultant work is very technical and may
cover several disciplines (civil, environmental, geotechnical, survey), the project
manager may want to establish review committees to review consultant products.
The consultant work must be reviewed for quality with feedback quickly provided
to the consultant for correction. Consultants may try to get local government staff
to approve work that is not of acceptable quality. Staff should review all
consultant work before accepting it. Work products should not be accepted until
they meet standards set forth in the contract and established regulations and
other requirements. Research findings show that some local government staffs
did not adequately provide timely and quality feedback to consultants.
Finally, the product must be useable and acceptable. For example, a
contract might require the consultant to secure all permits for a recreation center
and design it to meet community needs. If consultants do not meet either
request, they have not fulfilled their contract scope. The local government
should hold the retention (say 10% of the contract amount) until the consultant
has completed all contract requirements.
Once the project has been completed, the local government project
manager should complete a full evaluation of the work. This is not done in any of
the cities or agencies interviewed by the author, but would, in the researcher’s
opinion, be helpful in making future decisions as to consultant selection.
140
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
This evaluation should include the overall aspects of the consultant's work
from the selection process, progress, deliverables, usefulness of the product.
The selection committee along with the staff would be excellent choices to
conduct this evaluation. Once the evaluation is complete, the local government
and consultant should go over the evaluation. This evaluation can be used when
the local government agency needs a consultant in the future. Once this
evaluation is complete, the remaining contract amount (retention) should be paid
to the consultant.
1 4 1
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
CHAPTER 8. CONCLUSIONS
This concluding chapter summarizes the research process and results,
and suggests future research.
INTRODUCTION
Local governments in general and the fourteen (14) Northern California
cities and other government agencies studied in this research in particular, are
faced with limited budgets, staffing constraints, and pressure from citizens to do
more with limited resources. Despite these conditions, these agencies have a
variety of technologically complicated challenges to resolve. Furthermore, with
governing boards reluctant to hire full-time staff (for reasons discussed
previously), local governments are using professional consultants, including
architects, engineers, planning, and redevelopment, more and more often.
RESEARCH OUTCOMES AND RESEARCH FINDINGS
The research's fundamental question is:
"How can local governments (city managers, department
directors, and staff) as the principal make the most effective use of
professional services consultants (planners, architects, and
engineers) as agents, to meet the many demands of their citizens?”
1 4 2
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
This research provides several aspects of answers to this question:
A. Local governments must have clear policies and procedures for selecting,
monitoring, and evaluating the performance of professional service
consultants. These should include more authority for staff in selecting,
monitoring, and evaluating consultants
B. Local governments must have very clear and detailed processes for
selecting, monitoring, and evaluating the capabilities of professional
services consultants (a suggested process is presented in Chapter 7).
C. Consultant contract documents must include:
1. the specific roles and responsibilities for both the principal and the
agent,
2. milestone dates for deliverables, and
3. which party (principal or agent) is to provide what, and when (for
instance, permits, maps, or previous reports).
D. The consultant as well as the local government staff must be monitored
and held accountable for all contract requirements by a designated local
government project manager.
E. Immediate attention must be paid when any of the indications of
consultant problems arise.
F. The local government project manager must have significant decision
making authority to perform his or her role effectively. He or she should
1 4 3
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
be held accountable for the project's success by the appropriate
department director and/or governing board.
G. Various progress reports (oral and/or written) on progress status should
be provided to key government managers (city manager, department
directors) and the governing board.
H. Local government should consider large, multi-disciplined consultant
contracts. This could save staff time by reducing the time spent preparing
RFQs and would allow them to be more project responsive. Thus, it would
be more cost-effective overall.
The research also addresses several more detailed questions:
1. "What are some of the important internal and external factors
in evaluating the need to use professional services
consultants in cities?"
Internal External
Staff Capability Politically sensitive topic/ need neutral
party
Staff Does Not Have Time Need specialized experience
Staff Expertise Consultants bring the latest
technology, which staff cannot provide.
Complexity O f Project Complex large projects
Costs Must Not Be Excessive Get projects done fast
Knowledge Of Local Area Do a better job than staff
Directed By City Council Law requires consultant use
Staff Must Remain Involved
1 4 4
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
2. What are important considerations in selecting and
monitoring the performance of professional services
consultants?
Selection Monitoring
Capability-Experience
with similar projects—
Check references.
Compare proposal to contract and actual
schedule.
Thoroughly review the applicability and
usefulness of the work product.
Retain a portion of the fee until all of the
work is completed to the city’s satisfaction.
Quality and reputation
of the proposed
consultant project
manager and senior
professional involved.
The consultant uses the professional staff
designated in the proposal. (No "bait and
switch.")
The consultant works closely and effectively
with city project manager and staff.
Has taken the time to
understand the local
environment.
The consultant maintains communications
and submits timely reports or solutions to
issues.
The price is right. Closely compare the contracted scope
against change orders.
3. Based on the empirical data a model for selecting, monitoring,
and evaluating professional services consultants is presented in
Chapter 7 and summarized in Figure 8-1.
THEORETICAL FOUNDATION AND COMPARISON OF RESULTS
Agency Theory and Accountability were the primary theoretical foundation
for the research.
1 4 5
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Agency Theory
A. The contract should be specific as to scope of services with deliverables
and their completion schedules specified. For instance, the 25% design is
due 60 days from receipt of notice to proceed; the local governmental
agency staff will provide comments to the consultant on the 25% design
within 15 days of receipt of the 25% design from the consultant.
B. The contract should include the key points of contracts (who is to receive
and make calls, etc. to whom at each end~agent and principal) and
should specify responsibilities for both the principal and agent. For
example; the local government project manager is Ms. X, and the
consultant project manager is Mr. Y. The project managers cannot be
changed without mutual agreement by both parties.
C. The specific methods of communication and monitoring of the consultant's
work must be included as part of the contract. One way to develop
effective communications between both parties is to require weekly
communication between the agent's and the principal's project managers,
by means of E-mail, in person, or by telephone. A simple, one-page
report would also work well (Khadem, 1986).
Accountability
The professional services consultant should be accountable to the local
government project manager in meeting contracted requirements. The more
146
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
difficult issues of Accountability (establishing expectations, verifying
performance, monitoring the progress of the agent, and sorting out
responsibilities) are often verbalized but not written out. Each of these areas
should be specified in the contract. Accountability is lacking from both the local
government and consultant perspectives. In addition, the following issues related
to the monitoring of consultants should be addressed:
A. Local governments are, in general, ineffective with regard to monitoring
and holding the consultant accountable to meet the contract requirements.
B. Local governments and consultants need to hold each other more
accountable by implementing better monitoring methods.
C. The relationship between the principal and agent project managers is
critical. They must work as a team and develop a good communication
method.
High Performing Consultants
A. High performing consultants generally meet the contract requirements
(deliverables etc.).
B. The local government usually achieves a measurable improvement in its
results by accepting the high performing consultant's solution(s).
C. The local government is able to use the high performing consultant’s work
and is able to sustain the improvement over time.
147
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Non-High Performing Consultants
A. The non-metropolitan/rural cities researched have limited staff so most
projects are developed to solve a problem, rather than focussing on major
changes and future growth, thus encouraging non-performance on the
part of consultants. Non-high performing consultants tend to research the
problem at hand and not look ahead to the end product and its eventual
use.
B. Many consultants aim for one big solution rather that incremental
successes.
C. Most consultants do not have close relationships (partner-like) with local
governmental clients. Consultants should consider themselves, and be
considered by local governments, to be an extension and a team member
of the local government staff.
D. Many projects make labor-intensive use of consultants, instead of
leveraged use. Leveraging takes place when an experienced consultant
works closely with the local government (perhaps turning over some of the
work to the local government staff). Mentoring, training, and transfer of
work needs to be developed and clearly articulated in the consultant
contract.
1 4 8
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Management Levels Compared to Skill Levels
A. Elected officials should focus on working with staff, consultants, and other
governmental agencies to devise future direction and vision for the
jurisdiction. They tend to become overly involved in the consultant
selection process, rather than extending guidance and allowing staff to
conduct the actual selection tasks and make decisions.
B. Executive-level managers should focus on and improve their interpersonal
skills. They should also be working with elected officials on policy and
leadership (vision and growth). They should select qualified project
managers and empower them to do what it takes to monitor consultants.
C. Middle managers (project managers) should focus on interpersonal skills
(proper use of personnel, networking, and coordination). The research
results reflect the need for local government and consultant project
managers to develop better interpersonal skills.
Summary of the Research Results
• The results have been derived from interviews of selected government
officials and staff (city managers; assistant city managers; city engineers;
and directors of public works, planning, community development; and
others) and the researcher’s over 30 years of public and private
experience working with and as a professional services consultant. The
interviews were structured around seven questions. There were over 70
149
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
total interviewees from fourteen (14) Northern California cities and nine (9)
other Northern California agencies.
Table 8-1 presents a summary of the research results.
TABLE 8-1
SUMMARY OF RESEARCH RESULTS
Question Key Results
1. What have been the length and
nature of your involvement with the
use of consultants in local
government? Your current job and
organization?
Average = 21.5 years
2. What criteria have you used and/or
are you currently using to
determine when to use
consultants?
• Staff does not have time
• Need technical expertise that staff does not
have
• Need neutral party to evaluate potential
sensitive issue
• Tasks can be done faster than if done by staff
3. What process do you use in
selecting consultants?
Most consultants selected through competitive
process (especially for large, complex projects)
4. Once a consultant is selected, do
you use a standard contract or
some other contractual instrument?
• Use standard legal contract
(Contracts need more details.)
5. Once the contract is awarded, in
what ways do you monitor the
progress of the consultant?
• Observe work.
• See products.
• Weekly meetings.
(Staff monitoring of consultants needs
improvement)
6. How do you evaluate the
consultant’s performance during
and then at the completion of the
contractual work?
• Work accepted by staff, governing board,
community, regulatory agency.
• Product useable & used.
• Few changes during construction.
• Good communication.
• Within budget.
• Products on time.
(Staff evaluation of consultants needs
improvement)
7. Key Comments On Consultants
a) Description of an
Outstanding Consultant
• Communicates well
• Strong Project Manager
• Practical, cost-effective product
• Considers self as a member of the city/agency
team
• Flexible
Table continued on the next page.
1 5 0
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
TABLE 8-1
SUMMARY OF RESEARCH RESULTS, CONTINUED
Question Key Results
b) Description of an
Unsatisfactory Consultant
Opposite of above, plus
• Not responsive to needs of city/agency.
• Lack depth in their work.
(In general, staff feel about 50% of consultants
were unsatisfactory.)
c) Give some examples of
good or bad experience(s)
with consultants.
Key points from successful cases:
• The local government entity must select
experienced staff to monitor the consultant
throughout the work.
• The successful projects have a sound
partnership between the governmental agency
staff and consultant staff. The most important
relationship is between the government point
of contact and the consultant project manager.
• Successful projects received full support from
the city council (elected officials) and city
manager. The local government staff member
who is the key contact for the project is given
resources and authority to make the project
successful.
• Excellent and frequent communications
(meetings, updates, presentations, and
reports) occur throughout the project.
• Local government staff members are included
on the consultant selection committee.
• The best consultants understand the local
government policies, procedures, and have
developed a positive relationship with staff
even before the consultant selection process
started.
• The request for qualifications process is a
more successful way to select consultants
because they are selected based on
qualifications rather than strictly based on
lowest price.
Conclusions drawn from unsuccessful cases:
• Program/budget cost estimates for
complicated projects should be done by
consultants and city staff working together to
get a more accurate estimate of actual project
costs for "out year" projects.
• If the local government agency has policies for
selection of consultants, staff should follow
them or staff should seek higher authority
approval to change policy for specific reasons
(emergency, unique situations).
Table continued on the next page.
1 5 1
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
TABLE 8-1, CONTINUED
SUMMARY OF RESEARCH RESULTS
Question
c) Give some examples of
good or bad experience(s)
with consultants. Continued
Key Results
• With most projects (parks, waterfronts, water
plants, or wastewater plants) the community
and elected officials should be involved in the
project process (due to project importance and
sensitivity) from selection of consultants through
design and construction.
• City staff must do reference checking on
consultants to make sure they have done
similar successful projects.
• Consultant contracts should attempt to have
built-in incentives-bonuses for getting work
done early.
d) Do you plan to use more,
about the same, or fewer
consultants in the future?
• 60% of the agencies plan to use consultants at
the same rate
• 40% plan to use consultants more
e) What changes would help
consultants do better work
for your agency?
• Switch to a qualifications based selection
process with costs not considered (costs
negotiated with most qualified consultant).
• Have elected officials included in the selection
process.
• Use more open-end type consultant contracts.
• Staff should manage consultants better.
• Give more preference to local consultants,
provided they are qualified.
• Use incentives for innovation and getting work
done early.
The most important results from this research are:
A. The local government (principal) must have clearly defined policy on
selection and use of consultants (agents).
B. The local government (principal) must have a very well developed process
for determining the needs for consultants and consultant selection,
monitoring, and evaluation.
C. Local government staff selected to monitor consultant progress must be
trained in technical aspects of:
152
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
1. service contract management,
2. negotiations,
3. computer skills,
4. teamwork and management, and
5. experience using consultants.
D. The consultants must:
1. use an effective project manager with exceptional interpersonal
skills;
2. use team members (consultant staff) that are qualified, capable,
and experienced in doing the type of work required;
3. produce the work in accordance with the contract-on time, within
budget, and of good quality;
4. maintain open, clear communications with the government project
manager and city staff;
5. work with city/agency staff as if he or she were a member of the
city/agency team; and
6. be flexible and forward thinking.
153
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Local government, state, and federal agencies will most likely use
consultants even more in the future. Their agencies must continue to improve
their processes in using consultants and have properly trained staff so that the
government agency gets the most value from the consultants they use.
PROCESS FOR DETERMINING THE NEED, SELECTION, AND EVALUATION
OF CONSULTANTS
Figure 8-1 provides a flow diagram of the process for determining the
need for using a consultant, consultant selection, and consultant evaluation.
This table was developed from the findings in this research.
FUTURE RESEARCH
This research examined uses of professional services consultants in
Northern California cities and other selected government agencies. Future
research in using consultants should include:
A. Research of larger cities with populations of greater than 130,000. (This
research addressed non-metropolitan cities from 15,000 to 130,000
populations.)
B. Comparison research of uses of consultants in other state (other than
Caltrans) and federal agencies (DOD, EPA, and so on).
C. Research of consultant perspectives on providing the best services to
government agencies.
154
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
FIGURE 8-1
CONSULTING FLOW DIAGRAM, INCLUDING IMPORTANT POINTS
DERIVED FROM THE RESEARCH RESULTS
Im portant Points
STOP
May need to use
consultant to define
scope.
Use current local
government policies and
omcedures.
Select Evaluation Committee Members
part of the qualifications
to be submitted.
Use selection
committee
If costs cannot be agreed
upon, negotiate with next
best qualified consultant:
use experienced negotiator
Local Govt Proj. Mgr.
Monitors this meeting,
milestones, & deliverables.
Monitor Consultant's
Progress
Very important govt-
consultant partnership
relationship_________
Evaluation And Acceptance
Of Consultant’s Work
Hold retention until all
Work has been accepted.
Prepare Consultant final
Evaluation.
Consultant Contract
Close Out
Stop
NO YES
Use a Professional Consultant?
Local Government/Agency
Use current local gov't consultant selection
_______________ policy_______________
Governing Board Gives Approval of Selected
Consultant and Authorizes Staff to Negotiate
Define Scope of Services
Prepare and
Publish RFQ
Evaluate Consultant
Qualifications/Proposals
Consultant Contract Approved
By Governing Board
Develop Selection Criteria
Agency staff negotiates
contract with top consultant
1 6 5
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
USE OF THIS RESEARCH
This research can be used by local governmental agencies to develop policies
and procedures for deciding when to select professional services consultants.
Once the governmental agencies have decided to use a consultant, they can use
the suggested consultant flow model for selecting, monitoring, and evaluating
those consultants.
1 56
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
REFERENCES
BOOKS
—. Leading Change. Boston, MA: Harvard Business 1990. School Press. 1996.
—• Managing for the Future. New York, NY: Truman Talley Books/Dutton. 1992.
—• Reorganizing the Corporation: A Manifesto for Business Revolution. New
York, NY: Harper Collins. 1997.
— • The Leader for the Future. San Francisco, CA: Jossey-Bass, Inc. Publishers.
1996.
Ammons, David. Accountability For Performance: Measurement and Monitoring
in Local Government. Washington, DC: International City/County
Management Association. 1995.
Argyris, Chris, and Donald A. Schon. Theory In Practice: Increasing Professional
Effectiveness. San Francisco, CA: Jossey>Bass, Inc. Publishers. 1974.
Barnard, Chester. The Function of the Executive. Cambridge, MA: Harvard
University Press. 1938.
Berne, Eric. Games People Play. New York, NY: Ballantine Berber. 1992.
Carnevale, David. Trustworthy Government. San Francisco, CA: Jossey-Bass,
Inc. Publishers. 1995.
Caro, Robert A. The Power Broker. New York, NY: Vintage Books. 1975.
Cohen, Steven and Eimicke, William. The New Effective Public Manager. San
Francisco, CA: Jossey-Bass, Inc. Publishers. 1995.
Covey, Stephen. The 7 Habits of Highly Effective People. New York, NY: Simon
and Schuster. 1989.
Denhardt, Robert. The Pursuit of Significance: Strategies for Managerial Success
in Public Organizations. Belmont, CA: Wadsworth Publishing Company.
1992.
Destnick, Robert, and Detzel, Denis. Keeping the Customer. San Francisco, CA:
Jossey-Bass, Inc. Publishers. 1993.
157
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Drucker, Peter, and Farry Bower. Management. New York, NY: Harper and Row.
1976.
Gardner, John. On Leadership. New York, NY: The Free Press. 1990.
Gore, Al. The National Performance Review: The Gore Report on Reinventing
Government— Creating a Government That Works Better and Costs Less.
Washington, DC. 1993.
Hammer, Michael, and James Champy. Reorganizing the Corporation. New
York, NY: Harper Collins. 1993.
Hersey, Paul, Kenneth Blanchard, and Dewey Johnson. Management of
Organizational Behavior Utilizing Human Resources. Upper Saddle River,
NJ: Prentice-Hall, Inc. 1996.
Jarvis, Irving. Group Think: A Primer On Organizational Behavior. James
Bonditck and Anthony Buono eds. New York, NY: John Wiley and Sons.
1972.
Kearns, Kevin. Managing for Accountability. San Francisco, CA: Jossey-Bass,
Inc., Publishers. 1996.
Khadem, Riaz, and Robert Lorber. One Page Management. New York, NY:
William Morrow and Company. 1986.
Kotter, John P. A Force For Change: How Leadership Differs From Management.
New York, NY: The Free Press. 1991.
Lawler, Edward. High-lnvolvement Management. San Francisco, CA: Jossey-
Bass, Inc. Publishers. 1987.
Lewis, Martin, and Sarger, Mary. Making Government Work. San Francisco, CA:
Jossey-Bass, Inc. Publishers. 1994.
Mosher, Frederick. Democracy and the Public Sen/ice. New York, NY: Oxford
Press. 1968.
Osbome, David, and Ted Gaebler. Reinventing Government: How the
Entrepreneurial Spirit is Transforming the Public Spirit. Reading, MA:
Addison-Wesley Publishing Company, Inc. 1992.
Perry, James, ed. Handbook of Public Administration. 2n d ed. San Francisco, CA:
Jossey-Bass, Inc. Publishers. 1996.
1 5 8
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Pratt, John, and Richard J. Zeckhauser. Principals and Agents: The Structure of
Business. Boston, MA: Harvard Business School Press. 1985.
Savas, E. S. Privatizing the Public Sector. Chatham, NY: Chatham House
Publisher, Inc. 1982.
Schaeffer, Robert. High Impact Consulting. San Francisco, CA: Jossey-Bass,
Inc. Publishers. 1997.
Schon, Donald. The Reflective Practitioner: How Professionals Think In Action.
New York, NY: Bersic Books. 1987.
Simons, George, Vazquez, Carner, and Philip R. Harris. Transcultural
Leadership: Empowering the Diverse Work Force. Houston, TX: Gulf
Publishing Company. 1993.
Stillman, Richard J. Preface To Public Administration: A Search For Themes And
Direction. New York, NY: St. Martins Press. 1991.
JOURNAL ARTICLES
Bloom, Paul. "Effective Marketing in Professional Services," Harvard Business
Review. 1984. 102-110.
Dramore, David, and William White. "Agency and the Organization of Health
Care Delivery," Inouirv. Vol. 24. Winter 1987. 405-415.
Eisenhardt, Kathleen. "Agency Theory: An Assessment and Review," Academy
of Management Review. Vol. 14. No. 1.1989. 57-79.
Gomez-Mejia, Luis, and David B. Balkin. "Determination of Faculty Pay: An
Agency Theory Perspective," Academy of Management Journal. Vol. 35,
No. 5. 1992. 921-955.
Holmstrom, Berzt, and Paul Milgrom. "Multitask Principal-Agent Analysis:
Incentive Contracts, Asset Ownership, and Job Design,” The Journal of
Law, economics, and Organization. Vol. 7, Special Issue. 1991. 24-52.
Johnston, M. Jocelyn, and Barbara S. Romzek. "Contracting and Accountability
in State Medicaid Reform: Rhetoric, Theories, and Reality," Public
Administrative Review. Vol. 59. No. 5 September/October 1999. 383-399.
1 5 9
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Parks, Judi, and Edward Conlan. "Compensation Contracts: Do Agency Theory
Assumptions Predict Negotiated Agreements?" Academy of Management
Journal. Vol. 38, No. 3.1995. 821-838.
Parrish, Catherine, and Michele Frisby. September 'The Changing Role of the
Manager: Developing Skills for the Future," Public Management. Vol. 79,
No. 9. 1997. 17-18.
Porter, Theodore, and Gregory Streib. July/August "Performance Measurement
in Municipal Government: Assessing The State o f the Practice," Public
Administration Review. Vol. 58, No. 4, 1999. 325-335.
Sappington, David. "Incentives in Principal Agent Relationships," Journal of
Economic Perspectives. Vol. 5, No., 2, 1991. 45-66.
Skapiro, Debra, and Annorag Sharma. "Brokering Mergers: An Agency Theory
Perspective On The Role of Representatives." Academy of Management
Journal. Vol. 37, No. 3.1994. 703-721.
Slowsky, Norman, and John DeMarco. "Is the Price Right? State and Local
Government Architect and Engineer Selection," Public Administrative
Review. May/June 1980. 269-273.
Turner, Arthur. Sept/October "Consulting Is More Than Giving Advice," Harvard
Business Review. 1982. 120-129.
Wergin, Jon. "Using Consultants Successfully," New Direction For Higher
Education. Number 73. Spring 1991.
INTERVIEWS
Alderson, Jack, Chief Executive Officer, Humboldt Bay Harbor, Recreation, and
Conservation District, Eureka, California. Personal Interview. March 4,
1996.
Alexander, Tom, Director of Public Works/City Engineer, City of Chico, CA.
Personal Interview. March 20, 1997.
Barnes, Darrell, Director of Utilities, City of Ukiah, CA. Personal Interview.
November 22, 1997.
Basptista, Antoine, Community Development Director, City of Chico, CA.
Personal Interview. March 20, 1997. Beatty, Gene. Assistant City
Manager. City of Petaluma, CA. Personal Interview. November 15,1997.
160
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Blackman, Kenneth, City Manager, City of Santa Rosa, California. Personal
Interview. February 14,1997.
Bolli, Art, General Manager, Humboldt Municipal Water District, Eureka,
California. Personal Interview. July 16, 1997.
Braden, Susan, Assistant City Manager. City of Napa, CA. Personal Interview.
June 18, 1997.
Brauer, Edward, Assistant City Manager, City of Santa Rosa, California. Personal
Interview. February 6, 1997.
Brust, Ron, Director o f Public Works/City Engineer, City of Rohnert Park, CA.
Personal Interview. January 25,1997.
Buel, Bruce, General Manager, McKinleyville Community Services District,
McKinleyville, California. Personal Interview. August 27, 1997.
Capriolo, Cathy, Assistant City Manager, City of Davis, CA. Personal Interview.
May 15, 1997.
Casey, Steve, City Manager, City of Crescent City, California. Personal Interview.
October 21, 1997.
Christian, Jed, Director of Finance, City of Napa, CA. Personal Interview. April
27, 1997.
Curtis, Kenneth, Director of Community Development, City of Areata, CA.
Personal Interview. November 11, 1996.
Daniels, Ross, Director of Public Works, City of Santa Rosa, California. Personal
Interview. February 6, 1997.
Drawbaugh, Carl, Director of Public Works, City of South Lake Tahoe, CA.
Personal Interview. June 17,1997.
Duncan, Laura, Deputy Director, Redevelopment Agency/Finance Director. City
of Yuba City, CA. Personal Interview. March 15,1997.
Duncan, Trish, Assistant City Manager. City of Chico, CA. Personal Interview.
March 21, 1997.
Etton, Gordon, Director of Finance, City of Ukiah, CA. Personal Interview.
November 22, 1997.
1 6 1
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Ferris, Michael, Director of Utilities, City of Santa Rosa, California. Personal
Interview. February 20, 1997.
Foltz, Jeff, City Administrator, City of Yuba City, CA. Personal Interview. March
14, 1997.
Galucke, Robert, Director of Public Works, City of Redding, CA. Personal
Interview. September 12, 1997.
Goldberg, Wayne, Director of Community Development, City of Santa Rosa,
California. Personal Interview. February 6, 1997.
Greenway, Dewayne, Director of Public Works, City of Areata, CA. Personal
Interview. November 11, 1996.
Hamblin, Kevin, Director of Community Development, City of Eureka, CA.
Personal Interview. October 31,1996.
Hargis, Thomas, City Engineer, City of Petaluma, CA. Personal Interview.
November 17, 1997.
Harris, Alice, City Manager, City of Areata, CA. Personal Interview. November
12, 1996.
Harris, Michael, Assistant City Manager, City of Ukiah, CA. Personal Interview.
November 22, 1997.
Harrow, Michael, Finance Director, City of Rohnert Park, CA. Personal Interview.
January 25,1997.
Herzberger, Thomas, Director of Public Works/City Engineer, City of Eureka, CA.
Personal Interview. October 29, 1996.
Hodgson, Dalphine, Director of Finance. City of Areata, CA. Personal Interview.
November 11,1996.
Horsley, Candace, City Manager, City of Ukiah, CA. Personal Interview.
November 22, 1997.
Jamison, Terri, Director of Community Development, City of South Lake Tahoe,
CA. Personal Interview.
Kennedy, Rick, Director of Public Works, City of July 17,1997. Ukiah, CA.
Personal Interview. November 22,1997.
1 6 2
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Kristensen, Kris, City Manager, City of Woodland, CA. Personal Interview. May
21, 1995.
Lando, Thomas, City Manager. Chico, CA. Personal Interview. March 20, 1997.
Levitz, Carl, Assistant City Manager, City of Rohnert Park, CA. Personal
Interview. February 20, 1997.
Lewis, Diane, Director of Community Services, Town of Windsor, CA. Personal
Interview. January 10, 1994.
Lindsey, Stan, Director of Administrative Services, City of Santa Rosa, California.
Personal Interview. February 6, 1997.
Lorex, Jeff, Director of Planning, City of Davis, CA. Personal Interview. May 15,
1997.
Maker, Philip, Assistant City Manager, City of Woodland, CA. Personal Interview.
May 21, 1995.
McGinty, David, Director of Utilities, City of Eureka, CA. Personal Interview.
November 4, 1996.
Meyer, John, City Manager, City of Davis, CA. Personal Interview. May 15, 1997.
Miller, Kerry, City Manager. City of South Lake Tahoe, CA. Personal Interview.
June 14, 1997.
Mintier, Larry, Mintier and Associates, Sacramento, CA. Personal Interview.
December 31, 1998
Mohr, Karl, Financial Planning Coordinator, City of Davis, CA. Personal
Interview. May 15, 1997.
Monk, Dan, Town Engineer, Town of Windsor, CA. Personal Interview. January
10, 1994.
Moon, Mike, Director of Administrative Services/ Treasurer, Town of Windsor,
CA. Personal Interview. January 10, 1994.
Murphy, Roger, General Manager. Humboldt Transit Authority, Eureka,
California. Personal Interview. February 27,1997.
Netter, Joseph, City Manager, City of Rohnert Park, CA. Personal Interview.
February 20,1997.
163
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
O’Banyon, Mike, Director of Public Works, City of Napa, CA. Personal Interview.
June 18, 1997.
Otterback, George, Area Construction Manager, Department of Transportation,
State of California, Area One, Eureka, California. Personal Interview.
November 17, 1997.
Perez, Dave, Director of Public Works/City Engineer, City of Davis, CA. Personal
Interview. May 15, 1997.
Perez, Philip, Physical Planner, Humboldt State University, Areata, California.
Personal Interview. October 31, 1997.
Poetner, Gary, Vice President (Business Services), College of the Redwoods,
Eureka, California. Personal Interview. May 19, 1997.
Raffaelli, Donald, Assistant Director, Public Works, Humboldt County, Eureka,
California. Personal Interview. October 31, 1997.
Rose, Harvey, City Manager, City of Eureka, CA. Personal Interview. October 29,
1996.
Ruggiero, Janet, Community Development Director, City of Woodland, CA.
Personal Interview. May 15,1995.
Salmon, Warren, Assistant City Manager. City of Petaluma, CA. Personal
Interview. November 15, 1997.
Sawyer, Robert, Director of Planning, City of Ukiah, CA. Personal Interview.
November 22, 1997.
Scharer, John, City Manager, City of Petaluma, CA. Personal Interview.
November 14, 1997.
Sesnan, Robert, Finance Director. City of Chico, CA. Personal Interview. March
20, 1997.
Skoney, Paul, Planning Director. City of Rohnert Park, CA. Personal Interview.
January 24,1997.
Spilman, David, Director of Finance, City of Petaluma, CA. Personal Interview.
November 14, 1997.
Starman, Kent, Deputy City Manager, City of Redding, California. Personal
Interview. July 14, 1997.
164
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Strom, Steven, Director of Finance, City of Redding, CA. Personal Interview.
October 17, 1997.
Swanson, Jerry, Director of Development Services, City of Redding, California.
Personal Interview. July 15, 1997.
Thompson, Pat, City Manager, City of Napa, CA. Personal Interview. February
21, 1997.
Trudgon, Bryan, Senior Planner, City of Yuba City, CA. Personal Interview.
March 14, 1997.
Tuft, Pamela, Planning Director. City of Petaluma, CA. Personal Interview.
November 14, 1997.
Tyson, David, Assistant City Manager, City of Eureka, CA. Personal Interview.
October 29, 1996.
Wagener, Gary, Director of Public Works/City Engineer, City of Woodland, CA.
Personal Interview. May 21, 1995.
Warren, Michael, City Manager, City of Redding, California. Personal Interview.
July 14, 1997.
Wright, Jim, Director of Public Works, City of Yuba City, CA. Personal Interview.
March 14, 1997.
Yost, John, Director of Planning, City of Napa, CA. Personal Interview. February
20, 1997.
NEWSPAPER ARTICLE
Shigley, Paul. "City To Pay For Speeding Building," Redding Record.
Searchlight. Section B. November 24. 1998.
MISCELLANEOUS
Dissertations
Shiang, Jing. Successful Privatization Contractual Policies and Performance of
Public Sector Contractors. Dissertation. Ohio State University. 1995.
1 6 5
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Wells, Joan. A. Municipal Performance Monitoring: A Principal-Agent
Perspective. Dissertation. University of Wisconsin. Milwaukee, W l. 1991.
Woodland, Bill M. Incentive Contracts With Auditing And Monitoring In The
Principal-Agent Relationship. Dissertation. Purdue University. Lafayette,
IN. 1981.
Conference Proceedings
Allison, Graham, "Public and Private Management: Are They Fundamentally
Alike In All Unimportant Respects?" 1979 Public Management Research
Conference. Brookings Institute, Washington, DC 1979. 72-92.
DeJulio, John. "Principled Agents: The Cultural Bases of Behavior in a Federal
Government Bureaucracy." ASPA/CASU 54th National Training
Conference. San Francisco, CA. 1993. 38-54.
Lane, Larry. "Public Sector Performance Management: Old Failures And New
Opportunities." ASPA/CASU 54th National Training Conference. San
Francisco, CA. 1993. 1-37.
Wilson, John. "Reinventing Public Administration." 9th Association Meeting in
New York, NY. 1994. 669-677.
Government Documents
City of Areata. "City of Areata Architect-Engineer and Related Services
Questionnaire." Letter. Areata, CA: City of Areata. November 30, 1989.
City of Chico. "Purchasing Professional Services (Architect, Consultants,
Engineers) No. 11-5-4." Administrative Procedures and Policy Manual.
Chico: City of Chico. October 1994.
City o f Davis. "Acquisition of Architectural, Engineering, Consulting, and Other
Professional Services," Administrative Policy. Davis: City of Davis. July
1997.
City of Eureka." Section 2-6.1.: Procedures for Retaining Consultants and
Professional Technical Services," Eureka Municipal Code. 1995.
City o f Eureka. Procedures for Retaining Consulting and Professional/Technical
Services. Eureka: City of Eureka. August 20,1995.
1 6 6
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
City of Napa. Purchasing September Overview. Napa: City of Napa. June 1997.
City of Redding. "Selection of Technical Consultants, Policy Number 1501,"
Council Policy. Redding: City of Redding. December 1987.
City of Santa Rosa. "Selection of Professional Services, Policy Number 600-01,
" Council Policy. Santa Rosa: City of Santa Rosa. September 17, 1996.
City of South Lake Tahoe. City Council Resolution 1994-36: Resolution
Establishing Monetary Ranges for Specific Bidding Processes. South Lake
Tahoe: City of South Lake Tahoe. June 1994.
City of Woodland. Capitol Budget. Woodland: City of Woodland June 17, 1997.
Humboldt State University. "Physical Planning and Development," Professional
Services for Campus Development. Section XII. Areata, CA: HSU. 1996.
Town of Windsor. "Chapter 6. Article 4: Administration Policies and Procedures,
Purchasing Policies and Procedures," Code 1-6-100. Windsor: Town of
Windsor. NR.
167
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
APPENDIX A
NORTHERN CALIFORNIA CITIES
CITY OF ARCATA
City Description • 15,500 Population.
• Council-Manager Form Of Government.
• General Law City.
Interview Results
1. What have been the
length and nature of your
involvement with the use
of consultants in local
government? Your
current job and
organization?
• City Manager-21 years
• Director of Finance— 9 years
• Director of Public Works-9 years
• Director of Community Development-20 years
2. What criteria have you
used and/or are you
currently using to
determine when to use
consultants?
• Project needs creativity, experience, and/or
more flexibility than staff has.
• Staff does not have the time.
• City Council prefers consultant.
• Project is large, complex, and/or politically
sensitive.
• Low bid/fees is usually selected.
3. What process do you
use in selecting
consultants?
• < $20,000, city manager may negotiate.
• $20,000 - $50,000, city manager may negotiate
contract, subject to city council approval.
• > $50,000, RFP required; locals preferred.
• Finance and planning departments use sole-
source contracts a lot because they are so
specialized in their disciplines.
• City prefers selecting consultants without cost
as a criterion and then negotiate with best-
qualified consultant.
• City likes to use local consultants as much as
possible when they have the necessary
experience and professional qualifications.
4. Once a consultant is
selected, do you use a
standard contract or
some other contractual
instrument?
• Uses standard contract.
• Requires a very detailed scope of services with
deliverables with specific dates for its
consultant contracts.
• Includes a project schedule as part of the
consultant contract.
• Specifies what’s expected in contract —who
(consultant or city) provides what, when, etc.
Table continued on the next page.
16 8
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
CITY OF ARCATA
5. Once the contract is
awarded, in what ways
do you monitor the
progress of the
consultant?
• City Manager meets with larger project
consultants to emphasize that overruns will not
be tolerated; no change orders; project will be
done on time, within budget, and of good
quality.
• Department directors monitor consultant
progress.
• City project manager assigned to monitor all
large projects with consultants and help the city
department directors.
• City requires regular communication (weekly
reports, meetings, etc.).
• City hold its project manager accountable for
project success.
• City project manager compares monthly billings
and progress to consultant proposal and
project schedule.
6. How do you evaluate the
consultant’s
performance during and
then at the completion of
the contractual work?
• Usefulness of work.
• Consultant meets contract requirements.
• Limited change orders, overruns, and
complaints.
• Two-way communication throughout the
project—a feeling of satisfaction—excellent
trust.
• Will use consultant again because of his or her
quality work.
• Keep retainer until all contract requirements
are met.
7. Key Comments On Consultants
A. Description of an
Outstanding Consultant:
• Is organized.
• Uses qualified people with experience to do the
work required.
• Maintains excellent communication.
• Provides recommendations at appropriate
times.
• Thinks/Plans ahead— no surprises.
• Gives good and/or bad news in a timely
manner.
• Knows own capability and seeks help when
necessary.
• Produces timely, quality products within
budget.
• Brings changes in scope to attention of staff
immediately.
• Works as a member of city staff team and
takes ownership of work.
Table continued on the next page.
169
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
CITY OF ARCATA
B. Description of an
Unsatisfactory
Consultant:
Opposite of above, plus:
• Cries/complains all the time—"Never
consultant’s fault, always someone else’s."
• Is not truthful about capability.
• Takes more city-staff time than necessary.
• Submits poor quality proposals.
• Changes people/staff frequently without city
approval.
C. Unusual Experience,
Good or Bad, With
Consultants:
Good Experience~A consultant who did a
harvest plan three years ago:
• Brought the project in under budget.
• Had a very close working relationship with the
city staff.
• Had fun working with city staff.
• Was always positive and proactive.
• Was well organized.
• Took full responsibility for the contract.
Poor Experience—Architects and Ph.D.s:
• Were know-it-alls.
• Were stuck-up.
• Told city staff what they thought staff wanted to
hear rather than providing professional
recommendations.
D. Do you plan to use more,
about the same, or fewer
consultants in the future?
About the same in the future.
E. What changes would you
like to see for consultants
to do better work for the
City?
• Use RFQ process and then negotiate costs
with successful consultants.
• Use City-staff more rather than consultants
because consultants are too expensive.
• Develop better RFP and RFQ’s.
CITY OF EUREKA
City Description • 28,000 Population.
• Chartered City
• City-Council Manager Form Of Government.
Interview Results
1. What have been the
length and nature of your
involvement with the use
of consultants in local
government? Your
current job and
organization?
• City Manager-30 years
• Assistant City Manager/Director of Finance-6
years
• Director of Public Works-7 years
• Director of Community Development— 12 years
• Director of Utilities— 30 years
Table continued on the next page.
1 7 0
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
CITY OF EUREKA
2. What criteria have you
used and/or are you
currently using to
determine when to use
consultants?
• Staff does not have time, experience, or
expertise to complete the work.
• Need an objective, neutral party.
• Staff workload is too heavy to complete
necessary work.
• Project is too large, complex, or expensive for
staff capacity.
• Project is politically sensitive.
3. What process do you use
in selecting consultants?
• < $15,000, staff can hire sole source.
• $15,000 - $50,000, must obtain 3 proposals,
staff selects most qualified consultant/firm,
negotiates contract, and obtains council
approval.
• > $50,000, must issue an RFQ/RFP, select
tope 2 firms based on qualifications. The firm
with the lowest cost is selected. Council
approval is needed.
4. Once a consultant is
selected, do you use a
standard contract or
some other contractual
instrument?
• The City of Eureka uses a standard consultant
contract, with a detailed scope of services and
list of deliverables (milestones) attached as
exhibits. The consultant's proposed scope of
services usually becomes the contract scope of
services.
5. Once the contract is
awarded, in what ways
do you monitor the
progress of the
consultant?
• If necessary (for large projects) the city hires a
construction management firm to oversee
construction contractors.
• The city uses a city staff member with
appropriate expertise to monitor the project (a
financial person for a grant application, an
engineer for a public works project, etc.).
• City staff monitors actual progress and
compares it to the contracted milestones for
products.
• Staff compares consultant's proposed cost
estimate with actual performance.
• For planning projects, monitoring focuses on
deliverables and time schedules.
• City requires weekly verbal reports from
consultant and regular progress reports
(monthly).
Table continued on the next page.
1 7 1
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
CITY OF EUREKA
6. How do you evaluate the
consultant’s
performance during and
then at the completion of
the contractual work?
Checklist:
• Did consultant meet contract timeline and
product deliverables?
• Was the project completed within budget?
• Did the consultant maintain communication
throughout the project?
• Was the final product acceptable to the city
staff, elected officials, citizens, and regulatory
agencies?
• Did the consultant and city staff consider
consultant as a part of the city team?
• Were all contract requirements met?
7. Key Comments On Consultants
A. Description of an
Outstanding Consultant:
• Communicates well
• Has technical and professional expertise and
experience.
• Uses qualified people.
• Is a team player-considers self as part of the
city team.
• Makes practical, sound recommendations.
• Completes work within budget and time
schedule.
• Provides quality work products
B. Description of an
Unsatisfactory
Consultant:
Opposite of above, plus:
• Has city staff do too much of the work.
• Misrepresents self in proposal (adverse
selection).
• Focuses on making money rather than on
doing a good job.
C. Unusual Experience,
Good or Bad, With
Consultants:
• Adomi Memorial Recreation Center
• The Eureka Small Boat Basin
D. Do you plan to use more,
about the same, or fewer
consultants in the
future?
About the same.
E. What changes would you
like to see for
consultants to do better
work for the City?
• Use RFQ process more-select firm on basis of
qualifications, then negotiate the fee.
• Have elected officials involved in the selection
process more often.
• Use full-service consultants for multiple
services— open-end contracts.
1 7 2
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
CITY OF UKIAH
City Description Population Of 15,030
General, California Law City
Council-Manager Form Of Government
Interview Results
1. What have been the
length and nature of
your involvement with
the use of consultants
in local government?
Your current job and
organization?
City Manager-10 years.
Assistant City Manager—19 years
Director of Finance—10 years
Director of Public Works/City Engineer—10
years
Director of Utilities—23 years
Director of Planning— 19 years
2. What criteria have you
used and/or are you
currently using to
determine when to use
consultants?
Staff lacks expertise.
Work must be done quickly.
Staff workload is too heavy.
• Directed by City Council or City Manager to use
a consultant.
3. What process do you
use in selecting
consultants?
• Cost based RFP process.
• Staff is not familiar with the differences between
RFPs and RFQs.
• City uses consultants for high profile, high dollar,
and/or politically sensitive projects.
• City uses local consultants if they have the
needed expertise, but they do not get extra
points for being local.
• Director of Public Works/City Engineer says
there is a local ordinance that allows up to
$10,000 in fees to sole source. (Several other
department directors were not aware of the
ordinance.)
• The most recent general plan update consultant
was selected by a 35 member City Committee
with almost no staff involvement, by direction of
the City Manager. The consultant was
terminated due to poor performance about half
way through the contract. With more staff
involvement and a smaller committee, a better
consultant may have been selected.
4. Once a consultant is
selected, do you use a
standard contract or
some other contractual
instrument?
• The City of Ukiah has standard contract
language developed by its city attorney with a
very specific and detailed scope of services.
• The consultant’s proposal is used as a major
part of the scope of services and timeline with
product deliverables. Scope of services must be
very detailed and have specific milestones to
monitor progress.
table continued on the next page.
173
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
CITY OF UKIAH
5. Once the contract is
awarded, in what ways
do you monitor the
progress of the
consultant?
• Bases payments on progress.
• Staff monitors, but does only a fair job.
• Staff has a “warm and fuzzy” feeling.
• Makes mental checks of progress—knows
where they should be based on feeling and
experience.
• Holds regular meetings set up in accordance
with the contract.
• Staff develops own milestones and compares
with consultant’s work.
6. How do you evaluate the
consultant’s
performance during and
then at the completion
of the contractual work?
• How many changes in scope were there?
• Was the final product produced within 5% of the
budget? On time?
• Was the project manager effective?
• Was the final product useable?
• Did the consultant make effective presentations
to council and community? Were the
presentations well received?
• Were all contract requirements met?
• Was the consultant project manager deeply
involved? Did he or she take "ownership" of the
project? Work with and communicate frequently
with staff?
• Did consultant identify problems early and
provide recommendations to resolve them?
7. Key Comments On Consultants
A. Description of an
Outstanding Consultant:
• Takes charge of project.
• Provides useable product.
• Keeps all well informed—no surprises.
• Does not complain.
• Knows what he or she is doing.
• Consultant has excellent interpersonal skills.
• Anticipates issues~no surprises.
• Doesn't have city staff do all the work.
• Makes few errors in submittals— typing errors,
calculations.
• Produces quality products.
• Has a professional attitude.
• Has integrity and is honest.
Table continued on the next page.
1 7 4
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
CITY OF UKIAH
A. Description o ff an
Outstanding Consultant,
Continued:
• Is straightforward.
• Has a big picture perspective.
• Understands the local environment (Ukiah) and
works as a member of city staff.
• Does all that is asked for in the scope and more.
• Actually uses the team from the proposal on the
project, and at the levels specified.
• Principal (owner) named as a member of the
consultant team in the proposal is actually
involved in project.
• Does not “nickel and dime” additional work.
• Provides short, concise reports.
• Manages subconsultants well.
B. Description of an
Unsatisfactory
Consultant:
Opposite of above, plus:
• Lacks capability to do the work/oversells
themselves (adverse selection).
• Uses city staff too much.
• Uses political process to get decision when
consultant cannot get staff to agree.
• Does not get staff involved in progress or
decision making.
• Has a big ego and won’t listen to staff.
• Non-responsive to staff requests for information,
changes.
C. Unusual Experience,
Good or Bad, With
Consultants:
• General Plan Update by Toll and Associates
from Ogden Utah—city lost money and
consultant was terminated due to lack of
progress. This experience is discussed further
in Chapter 7.
D. Do you plan to use more,
about the same, or
fewer consultants in the
future?
About the same in the future.
E. What changes would
you like to see for
consultants to do better
work for the City?
• Develop a policy that is similar to the one the
City of Eureka uses.
• Have a consultant with multi-discipline capability
on retainer for 3 to 5 years, so the city doesn't
have to advertise so often.
• Require faster, more creative, and more concise
products from consultants.
• Give staff more flexibility in using consultants.
Table continued on the next page.
175
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
CITY OF UKIAH
E. What changes would
you like to see for
consultants to do better
work for the City?
Continued.
• Use consultants more to plan for future
infrastructure.
• Don’t worry about cost so much, but select best
qualified consultant then negotiate price.
• Get policy to sole source consultants with fees
up to $100,000~provides flexibility and saves
time.
• Get rid of low bid selection criteria for
consultants.
CITY OF SANTA ROSA
City Description • Population Of 128,000 Citizens.
• Council-Manager Form Of Government.
• Chartered City.
Interview Results
1. What have been the
length and nature of
your involvement with
the use of consultants
in local government?
Your current job and
organization?
• City Manager-34 years
• Assistant City Manager—31 years
• Director of Administrative Services (Finance,
Facility Management, Information Technology,
Personnel)—39 years
• Director of Public Works—20 years
• Director of Community Development—20
years
• Director of Utilities— 25 years
2. What criteria have you
used and/or are you
currently using to
determine when to use
consultants?
• Need project completed quickly and/or staff
does not have the necessary experience.
• Project is politically sensitive.
3. What process do you
use in selecting
consultants?
• <$5,000, department directors can approve
sole source
• $5,000 - $50,000, city manager can approve.
• > $50,000, must use competitive proposals,
with a review committee that includes a city
council person.
4. Once a consultant is
selected, do you use a
standard contract or
some other contractual
instrument?
• Uses standard contact with very detailed
scope of services with deliverable products
noted, communication process (meetings,
presentations) specified.
5. Once the contract is
awarded, in what ways
do you monitor the
progress of the
consultant?
• Assign a staff person to thoroughly track and
work with the consultant.
• Compare monthly consultant billings to project
schedule and contract.
• Have frequent meetings with consultant.
Table continued on the next page.
176
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
CITY OF SANTA ROSA
6. How do you evaluate
the consultant’s
performance during
and then at the
completion of the
contractual work?
• Within budget, on time, and the product was
useable.
• Minimum change orders.
• Consultant communicated throughout the
project.
• Customer satisfaction.
• Plans and specifications well done with
minimum construction contractor questions.
• Determines percentage of design changes
(should be less than 2%) once the contractor
builds the designed project.
• City staff enjoys working with the consultants,
and would "hire" them again.
• Citizens feel good about the product or
service.
7. Key Comments On Consultants
A. Description of an
Outstanding
Consultant:
• Meets schedule, within budget.
• Does not make excuses and/or blame
someone else.
• Produces a final product of excellent quality.
• Makes few errors in final product.
• Goes the extra mile, “above and beyond” what
is expected.
• Communicates well throughout the whole
process.
• Is sensitive to community and political
environment.
• Produces affordable products—not “Gold
Plated.”
• Identifies problems early and solves them with
staff involvement.
• Is always available and responsive.
• Uses an effective project manager.
• Makes well received presentations.
• Has integrity and is honest.
• Thinks of self as a partner with city and others.
• Plans ahead.
• Has a big view of project (big picture).
• Maintains trust at all levels.
• Is straightforward to the point.
• Is flexible and practical.
B. Description of an
Unsatisfactory
Consultant:
Opposite of above, and:
• Changes project personnel after the contract
has been awarded.
• Is inaccurate and produces an unrealistic
product
Table continued on the next page.
177
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
CITY OF SANTA ROSA
B. Description of an
Unsatisfactory
Consultant: Continued.
• Does not produce the right or adequate
plans/specifications.
• Issues many “nickel and dime" change orders.
• Goes to city council for decisions rather than
discussing it with staff first.
• If consultant costs are too high or too low,
consultant does not understand the project.
C. Unusual Experience,
Good or Bad, With
Consultants:
• Construction management project for the
City—consultant walked out. They did not
have a clear understanding of the project and
did not communicate very well.
D. Do you plan to use
more, about the same,
or fewer consultants in
the future?
The same.
E. What changes would
you like to see for
consultants to do
better work for the
City?
• Increase the level (say $100,000) that the city
manager can approve. The city council would
approve anything over $100,000.
• Rotate consultants with local firms first,
provided they have the capability.
• Don’t select consultants based on cost—select
them based on quality then negotiate the cost.
• Have council members more involved in
selecting, especially on high dollar and very
sensitive projects.
• Need for value engineering for projects—
before let out for bid (could save lots of
money).
• Have consultant do peer review of other
consultants if the city has the money.
• City staff must be comfortable with consulting
firm and key consultant personnel.
• Look for full service consulting capability
more— open end contracts (save city a lot of
time and money, but must convince city
council to do it)
17 8
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
TOWN OF WINDSOR
City Description • Population Of 19,200.
• Council-Manager Form Of Government.
• General Law Town.
Interview Results
1. What have been the
length and nature o ff
your involvement with
the use o ff consultants in
local government? Your
current job and
organization?
• Town Manager—25 years
• Assistant Town Manager—17 years
• Director of Administrative Services & Treasurer—
37 years
• Director of Community Development—12 years
• Town Engineer—14 years
• Director of Community Services—10 years
2. What criteria have you
used and/or are you
currently using to
determine when to use
consultants?
• Consultant selection is at the discretion of the town
manager and town council.
• If < $5,000 town manager can sole source.
• Competitive if project is over $5,000.
• Staff does not have the time.
• Staff does not have the necessary expertise.
• If controversial project, since Town is a no/limited
growth town, use consultant to get "beat up” rather
than staff.
• Complex or large projects.
• Use consultant as an objective, neutral party.
3. What process do you
use in selecting
consultants?
• Use competitive (RFP) process for selecting
consultants most of the time, except for very small
fee ($5,000) projects.
• Water/wastewater use sole source procurement
most of the time.
• Long term consultant contract best.
• Five percent (5%) preference given to consultants
who reside in Windsor and have a current Windsor
Business License.
• Selection is based on:
- the ability, capability, and skill to perform the
contract or provide the services required;
- responsiveness and ability to provide the
services promptly, within the specified time,
without delay or interference; and
- reputation and experience, including the
Town’s previous experience with the
consultant
• Costs are important in consultant selection.
Table continued on the next page.
179
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
TOWN OF WINDSOR
4. Once a consultant is
selected, do you use a
standard contract or
some other contractual
instrument?
• The Town of Windsor uses a standard contract
with a detailed scope of services, project schedule,
and milestones for products.
• The town uses scopes of services and schedules
from consultant proposal to develop the consultant
contracts.
5. Once the contract is
awarded, in what ways
do you monitor the
progress o ff the
consultant?
• Monitoring consultant is a departmental
responsibility.
• Holds frequent meetings with the consultant
project manager, require regular status reports in
contract.
• Involves key staff in the initial meeting between
consultant and town.
• Holds consultant’s “feet to the fire"- makes him or
her follow project schedule and contract
requirements.
• Requires monthly project meetings.
6. How do you evaluate the
consultant’s
performance during and
then at the completion o ff
the contractual work?
• Produced work on time, within budget, products
were usable and did work with few changes.
• Town council accepted consultant
recommendations.
• Consultant was accurate and professional.
• Kept up with technology and used it to provide
professional services to the town.
• City staff trusts the consultant.
7. Key Comments On Consu tants
A. Description o ff an
Outstanding Consultant:
• Has expertise and gets job done on time.
• "Sells" its work products and recommendations to
the Town Council.
• Anticipates questions and problems ahead of time.
• Principal (Owner) is involved in the project and not
just as a “figurehead."
• Understand community needs— understands
political environment in which they are working.
• Guides Town through a complex process since
they are the experts.
• Is flexible.
• Is service oriented.
• Goes "above and beyond" to satisfy customer and
doesn’t charge for every little thing they do.
• Is calm and firm on recommendations.
• Has integrity.
• Communication at all levels.
Table continued on the next page.
18 0
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
TOWN OF WINDSOR
A. Description of an
Outstanding Consultant,
Continued
• There is minimal controversy about the work.
• Has a good sense of humor—has fun doing the
project work.
B. Description of an
Unsatisfactory
Consultant:
Opposite of above, and:
• Submits poor estimates.
• Lets ego get in the way.
• Won’t listen to staff or council.
• Does not respond quickly when information is
requested (staff requests information from
consultant but consultant takes too long to provide
it).
• Is not clear on what they are doing.
• Gives staff a "hard time."
• Doesn't have expertise to do the work, but still tries
to do it (adverse selection).
C. Unusual Experience,
Good or Bad, With
Consultants:
• Engineering Consultant low-balled (bought) a
project, the project manager was changed from the
project manager identified in the proposal, and
personnel on the team could not do what they said
they could.
• Landscape consultant for a recent community
project exceeded budget by $700,000 over lowest
bidder. City had to get another consultant to
provide a better cost estimate. Staff did not watch
consultant closely enough.
D. Do you plan to use more,
about the same, or fewer
consultants in the
future?
• Since staff will not increase, will use more
consultants in the future.
E. What changes would you
like to see for
consultants to do better
work for the City?
• Not have all consultants selected by competitive
process.
• Have Council more involved with selection
process.
• Use RFQs rather than RFPs.
• Staff must manage consultants better.
• Staff should have more latitude to select
consultants.
• Consultants must understand political
environment.
• Consultant should compete with government staff
for services.
• Must manage consultants better.
• Have town manager authorize hiring consultants
for fees up to $100,000.
1 8 1
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
CITY OF ROHNERT PARK
City Description • Population Of 39,000.
• Council-Manager Form Of Government.
• General Law City.
Interview Results
1. What have been the
length and nature of
your involvement with
the use of consultants
in local government?
Your current job and
organization?
• City Manager-12 years
• Assistant City Manager-20 years
• Finance Director-16 years
• City Engineer/Director of Public Works — 23 years
• Planning Director-20 years
2. What criteria have you
used and/or are you
currently using to
determine when to use
consultants?
• Whenever expertise beyond staff is needed.
• Big project with large budget, very technical.
• The Director of Public Works has used one
consultant engineering firm for years. May
change to spread the work to other consultants
3. What process do you
use in selecting
consultants?
• Usually go for three proposals.
• Sole source (currently uses only one consultant).
(This City has one of the loosest policies and
selection processes for consultants of any cities
evaluated in this study.)
4. Once a consultant is
selected, do you use a
standard contract or
some other contractual
instrument?
Uses a standard contract with detailed scope of
services with milestones and deliverables.
5. Once the contract is
awarded, in what ways
do you monitor the
progress of the
consultant?
• Consultant develops detailed work plan with time
frame for defined products.
• Key staff from designated department monitors
consultant.
• Requires monthly progress reports from
consultant.
6. How do you evaluate
the consultant's
performance during
and then at the
completion of the
contractual work?
• The consultant work was accepted and it worked.
• Submitted a written budget and schedule.
• Went "above and beyond" to get the job done.
• Used a standard contract with detailed scope of
services with milestones and deliverables, then
measured actual work against the contract.
• Work quality was good and reports or product
looked presentable.
Table continued on the next page.
182
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
CITY OF ROHNERT PARK
7. Key Comments On Consultants
A. Description of an
Outstanding
Consultant:
• Has expertise to complete job.
• Is innovative.
• Is flexible.
• Gets job done quickly with quality product.
• Is very thorough in presentations.
• Anticipates staff and public need.
• Presents short reports and presentations.
• Works closely and communicates with staff and
community.
• Listens to client's wishes.
• Is people oriented.
• Considers self to be a member of the team and
employee of the city.
B. Description of an
Unsatisfactory
Consultant:
Opposite of above, plus:
• Makes excuses-it is never their fault.
• Changes people frequently; City never sees key
people (principals) once the consultant has been
selected and the contract has been signed.
• Has a poor attitude toward the job.
• "Nickels and dimes" the city for every request.
• Does not respond quickly to requests for
information.
B. Description of an
Unsatisfactory
Consultant: continued.
• Submits incomplete study results.
• Does not listen at all to staff, city council, or
community.
C. Unusual Experience,
Good or Bad, With
Consultants:
None of any significance.
D. Do you plan to use
more, about the same,
or fewer consultants in
the future?
About the same.
E. What changes would
you like to see for
consultants to do
better work for the
City?
Use RFQ and not consider bid or cost until
consultant has been selected based on
performance/experience and then negotiate.
18 3
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
CITY OF PETALUMA
City Description • Population Of 50,000.
• Chartered City.
• Council-Manager Form Of Government.
Interview Results
1. What have been the
length and nature of
your involvement with
the use of consultants
in local government?
Your current job and
organization?
• City Manager-25 years.
• Assistant City Manager (Economic/Community
Development)-16 years
• Director of Finance— 20 years
• Assistant City Manager (Public Works/Police,
Fire, Parks & Recreation)— 13 years
• City Engineer-24 years.
• Planning Director— 20 years.
2. What criteria have you
used and/or are you
currently using to
determine when to use
consultants?
• Political needs (directed by city council or
considered too sensitive for staff to handle).
• Technical expertise needed plus staff workload
too heavy.
• Time required to complete work (if must be done
quickly, most of the time use consultants).
• Price for consultant carries a lot of weight.
• Need for creativity.
3. What process do you
use in selecting
consultants?
• < $15,000-Staff selection.
• $15,000 - $100,000~RFP/RFQ with city manager
approval and city council approval before award.
• > $100,000 -Use selection committee, city
council approves contract award.
4. Once a consultant is
selected, do you use a
standard contract or
some other contractual
instrument?
• Contract has scope of services and milestones
from consultant proposal as attachment
(normally).
5. Once the contract is
awarded, in what ways
do you monitor the
progress of the
consultant?
• Assigns staff to monitor work progress,
comparing it to the contracted timeline and
deliverable schedule.
• Uses contract specialist to watch progress of all
contracts.
• Keeps retainer until products are delivered.
• issues monthly payment based on progress of
work per approved plan.
• Assigns staff as responsible person for larger
projects.
• Has frequently scheduled meetings— at least
monthly.
Table continued on the next page.
1 8 4
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
CITY OF PETALUMA
6. How do you evaluate
the consultant1 s
performance during
and then at the
completion of the
contractual work?
• Compares actual budget, schedule, and work
quality to the contract and regulatory
requirements.
• City council and community accept work product.
• Keeps retainer until work is completed to
satisfaction.
• Determines if City would hire consultant again.
Key Comments On Consultants
A. Description of an
Outstanding
Consultant:
• Performs work on time, within budget.
• Maintains excellent communications.
• Submits acceptable work products
• Is flexible—understands contract
• Is trustworthy.
• Listens to client.
• Keeps in close contact with city—no surprises.
• Is well qualified and understands project.
• Identifies problems and has solutions to fix them.
• Listens to department directors, community,
council, and staff.
• Accepts city staff as a team member.
B. Description of an
Unsatisfactory
Consultant:
Opposite of above, and:
• “Nickels and dimes” city for any change to
contract or request.
• Submits poor estimates.
• Changes consultant team frequently.
• Responds slowly to requests for information
• Submits “flawed” designs.
• Has a poor attitude and big ego, and is pompous.
• Submits boilerplate studies.
• Has poor relationships with involved parties.
• Uses an ineffective project manager.
C. Unusual Experience,
Good or Bad, With
Consultants:
Hager and Schutt Petaluma Airport Project—
excellent consultant. Acted as if it were their airport,
rather that the City’s. Had fun doing the project and
they communicated well throughout the contract.
Used an experienced and mature project manager.
D. Do you plan to use
more, about the same,
or fewer consultants in
the future?
Will use consultants more in the future, when the
infrastructure needs replacing.
Table continued on the next page.
185
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
CITY OF PETALUMA
E. What changes would
you like to see for
consultants to do
better work for the
City?
• Have an administrator to monitor all large
contracts.
• Use RFQ process and then negotiate a price with
successful consultant.
• Give discretion to City Manager up to $100,000
to hire consultant to do work without City Council
approval.
• Use liquidated damages if not done on time.
• Use bonus if done ahead of time.
• Use local consultant if possible.
• Ensure that the consultant thoroughly
understands the political environment.
• Develop and maintain a partnership with the
consultants as they perform their work.
• Ensure consultant knows how to ensure positive
public relations.
CITY OF NAPA
C ity Description • Population Of 70,000.
• Charter City.
• Council Manager Form Of Government.
Interview Results
1. What have been the
length and nature of
your involvement with
the use of consultants in
local government? Your
current job and
organization?
• City Manager— 16 years
• Assistant City Manager— 17 years.
• Director of Finance— 20.
• Director of Public Works— 15 years
• Director of Planning-25 years
2. What criteria have you
used and/or are you
currently using to
determine when to use
consultants?
• Technical expertise needed.
• Large amount of time to do work.
• Independent review needed.
3. What process do you
use in selecting
consultants?
• < $5,000-Standard purchase order.
• $5,000 to $25,000-Standard purchase order with
department director and city attorney approval.
• $25,001 to $50,000-Standard purchase order
with city attorney and city manager approval.
• >$50,000 to $75,000— Formal process, requires
city attorney and city manager approval; city
council approves contract award.
Table continued on the next page.
1 8 6
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
CITY OF NAPA
4. Once a consultant is
selected, do you use a
standard contract or
some other contractual
instrument?
Uses standard contract with detailed scope of
services, timelines, and deliverables.
5. Once the contract is
awarded, in what ways
do you monitor the
progress of the
consultant?
• Regularly scheduled meetings.
• Written updates.
• Deliverable milestones.
6. How do you evaluate the
consultant’s
performance during and
then at the completion of
the contractual work?
• Product is usable.
• Will use consultant again.
• Project was close to contract dollar amount.
• City council and community accepted product.
7. Key Comments On Consu tants
A. Description of an
Outstanding Consultant:
• Maintains excellent communication with all
throughout the process.
• Manages subconsultants.
• Is organized.
• Is highly professional all of the time.
• Is flexible.
• Makes excellent presentations that are accepted
by staff, council, and community.
• Keeps same consultant team, with no changes.
• Stands ground, even if attacked by community or
council.
• Allows some adjustment for political solutions.
• “Tells it like it is” in a good, positive, professional
way.
• Simplifies complex technical information so that
the public can understand.
• Complements city staff.
• Takes “heat” if necessary.
• Works well together as a team.
• Anticipates questions and needs.
• Communicates with all—especially project
manager.
• Does not “nickel and dime” for more money.
• Has a sense of humor—likes to have fun.
• Assumes “ownership” of product in its
organization.
• Makes recommendations that are realistic and
cost effective—not “gold plated.”
Table continued on the next page.
1 8 7
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
CITY OF NAPA
B. Description of an
Unsatisfactory Consultant:
Opposite of above, and:
• Never completes project.
• Is dishonest.
• Sells capability they do not have (adverse
selection).
• Does not listen to staff, council, or community.
• Is a “yes man”—tells you what you want to hear.
C. Unusual Experience, Good
or Bad, With Consultants:
None mentioned.
D. Do you plan to use more,
about the same, or fewer
consultants in the future?
More in the future for new water/wastewater plant and
a large flood control project.
E. What changes would you
like to see for consultants
to do better work for the
City?
• Use consultants that have full capability to do
work.
• Reduce number of RFPs/RFQs.
• Develop better partnership between city staff,
council, community, and consultants.
CITY OF DAVIS
City Description • Population Of 52,000.
• Council-Manager Form Of Government.
• General Law City.
Interview Resuits
1. What have been the
length and nature of
your involvement with
the use of consultants
in local government?
Your current job and
organization?
• City Manager— 14 years
• Deputy City Manager— 3 years
• Financial Planning Coordinator— 2-11 2 years
• Director of Public Works./City Engineer-25
years.
• Director of Planning— 15 years
2. What criteria have you
used and/or are you
currently using to
determine when to use
consultants?
• Staff capacity to undertake tasks.
• Experience and technical ability to do the work.
• Community acceptance usually better by using a
consultant.
• Special projects.
3. What process do you
use in selecting
consultants?
Qualifications, then negotiate:
• < $10,000— The department director has authority
to select consultant (sole source).
• $10,000 - 25,000—RFP with department director
approval
• > $25,000—RFP, with written contract approved
by city council.
Table continued on the next page.
18 8
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
CITY OF DAVIS
4. Once a consultant is
selected, do you use a
standard contract or
some other contractual
instrument?
• Standard contract prepared by city attorney with
detailed scope of services, milestones, and
deliverables defined.
5. Once the contract is
awarded, in what ways
do you monitor the
progress of the
consultant?
• Staff keeps track of schedule, tasks, and
deliverables through meetings with consultant.
6. How do you evaluate
the consultant’s
performance during
and then at the
completion of the
contractual work?
Checklist:
• Does the product do what it is suppose to do?
• Were the contract requirements met? On time?
Within budget?
• Is it a quality product of which everyone can be
proud?
• Were the work products accepted by city council
and community?
• Do staff members feel as though they have been
treated fairly by the consultant?
7. Key Comments On Consultants
A. Description of an
Outstanding Consultant:
• Submits few work order changes.
• Uses technically sound people and work
products.
• Communicates well with all.
• Handles public meetings well.
• Stands up for what they feel is correct, even
under heavy public attack.
• Is forceful.
• Is organized.
• Goes above and beyond.
• Considers self a team member.
• Is flexible.
• Is straight forward and to the point.
• Has the right people on the job.
B. Description of an
Unsatisfactory Consultant:
Opposite of above, and:
• Does not listen (my way or else, especially
architects and Ph.D.s).
• Does not take responsibility for work—it is always
someone else’s fault.
C. Unusual Experience,
Good or Bad, With
Consultants:
• None discussed.
Table continued on the next page.
18 9
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
CITY OF DAVIS
D. Do you plan to use more,
about the same, or fewer
consultants in the future?
• About the same.
E. What changes would you
like to see for consultants
to do better work for the
City?
• Keep the same except to increase fee level so
less go to City Council.
CITY OF WOODLAND
City Description • Population Of 45,000.
• General Law City.
• Council-Manager Form Of Government.
Interview Results
1. What have been the
length and nature of
your involvement with
the use of consultants
in local government?
Your current job and
organization?
• City Manager-22 years.
• Assistant City Manager— 10 years.
• Finance Director-15 years.
• Public Works Director/City Engineer— 21 years.
• Community Development Director-17 years.
2. What criteria have you
used and/or are you
currently using to
determine when to use
consultants?
• Staff work load.
• Knowledge of city area—local consultants
preferred.
• Need technical knowledge.
• Need to complete work quickly.
• Need outside expertise for politically sensitive
tasks.
3. What process do you
use in selecting
consultants?
• The city manager is authorized to award within
budget.
• Bases selection on qualifications.
• Has on file a list of qualified consultants for
specific areas (design, construction
management, planning, environmental impact
reports, and so on).
• Usually reviews the list and send a formal or
informal solicitation for the consultant to complete
and submit.
• Usually has a review panel of 3 to 5 staff (maybe
a city council member if it is a very sensitive
project).
• Most of the time has oral interviews with top
three firms.
Table continued on the next page.
190
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
CITY OF WOODLAND
3. What process do you
use in selecting
consultants?
Continued.
• Works with top firm (selected based on
qualifications) to negotiate with city.
• If cannot get agreement with top firm, asks
second best qualified firm to negotiate a fee for
the scope of services in the RFP/RFQ.
4. Once a consultant is
selected, do you use a
standard contract or
some other contractual
instrument?
• Uses standard contract with scope of services
attached.
5. Once the contract is
awarded, in what ways
do you monitor the
progress of the
consultant?
• Assigns a staff person to work with consultant
and monitor progress.
• Hold regular meetings with consultant and staff.
• Reviews monthly consultant billings and
compares them against progress and contract.
6. How do you evaluate
the consultant's
performance during
and then at the
completion of the
contractual work?
• Staff, council, community, and regulatory
agencies accept results.
• Staff feels good about the whole process.
7. Key Comments On Consultants
A. Description of an
Outstanding Consultant:
• Helps guide staff, council, and community
through a project (general planning).
• Shows leadership, drive, and enthusiasm.
• Produces useable products on time, and within
budget.
• Provides framework for making decisions.
• Is tactful but “tells it like it is.”
• Handles oral disagreements well and stands their
ground.
• Produces concise and complete work products.
• Maintains excellent communications.
• Provides more than what is asked for in the
contract.
B. Description of an
Unsatisfactory Consultant:
Opposite of above, plus:
• Makes poor presentations.
• Makes excuses.
• Uses an ineffective project manager.
C. Unusual Experience,
Good or Bad, With
Consultants:
• None.
Table continued on the next page.
1 9 1
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
CITY OF WOODLAND
D. Do you plan to use more,
about the same, or fewer
consultants in the future?
• Use more consultants because current council
does not want to hire anymore staff.
E. What changes would you
like to see for consultants
to do better work for the
City?
• Use more experienced consultants who really
understand the City's needs.
• Develop good in-house capability to monitor
consultants better.
CITY OF YUBA CITY
City Description • Population Of 39,000.
• Full Service General Law City.
• Council-Administrator Form Of Government.
Interview Results
1. What have been the
length and nature of
your involvement with
the use of consultants
in local government?
Your current job and
organization?
• City Administrator-25 years.
• Deputy Director, Redevelopment Agency— 7
years.
• Director of Public Works— 21 years.
• Senior Planner-15 years.
2. What criteria have you
used and/or are you
currently using to
determine when to use
consultants?
• Need different capability then staff can offer.
(Staff is very limited in doing large, complex
projects.)
• Using a consultant is more cost effective for the
job that need to be done.
• Need project completed quickly.
• Need objectivity and creativity.
3. What process do you
use in selecting
consultants?
Competitive RFP process
• < $25,000-The city administrator can approve.
• > $25,000-The city council must approve.
4. Once a consultant is
selected, do you use a
standard contract or
some other contractual
instrument?
• Use standard contract with scope of services
spelled out in appendix.
5. Once the contract is
awarded, in what ways
do you monitor the
progress of the
consultant?
• Assigns a city project manager for each large
project.
• Has a project management meeting every two
weeks with department director to go over status
of consultants work.
• Requires weekly communication (written and
verbal) with consultant
Table continued on the next page.
192
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
CITY OF YUBA CITY
6. How do you evaluate
the consultant’s
performance during
and then at the
completion of the
contractual work?
• Determines if the product works and is accepted
by staff, community, regulators, and council.
• Ensures the project was completed within budget
and on time.
• Determines the number of change orders.
7. Key Comments On Consultants
A. Description of an
Outstanding Consultant:
• Provides excellent customer service.
• Delivers what they said they promise.
• Works as a team.
• Makes few mistakes.
• Uses the right people on the job and don’t
change them unless absolutely necessary.
B. Description of an
Unsatisfactory
Consultant:
Opposite of above, and:
• Does not listen to what client wants, instead tells
client what they want.
• Produces “boiler plate” studies and
presentations.
• Submits work late.
C. Unusual Experience,
Good or Bad, With
Consultants:
• None stated.
D. Do you plan to use more,
about the same, or fewer
consultants in the future?
• About the same.
E. What changes would you
like to see for consultants
to do better work for the
City?
• Council should allow open end contracts with
consultants with full capabilities.
• Council should raise approval level for city
administrator to $100,000.
CITY OF SOUTH LAKE TAHOE
City Description • Population Of 23,000.
• General Law City.
• Council-Manager Form Of Government.
Interview Results
1. What have been the
length and nature of
your involvement with
the use of consultants
in local government?
Your current job and
organization?
• City Manager— 20 years.
• Director of Public Work— 20 years.
• Director of Community Development— 13 years.
Table continued on the next page.
1 9 3
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
CITY OF SOUTH LAKE TAHOE
2. What criteria have you
used and/or are you
currently using to
determine when to use
consultants?
• Cost effective compared to in-house staff doing
the work.
• Need expertise.
• Need project completed quickly.
• Project is large.
• Need independent assessment.
• Need very politically sensitive issues addressed.
3. What process do you
use in selecting
consultants?
• Qualifications based.
• Interview 2 or 3 consultants.
• City council approval.
4. Once a consultant is
selected, do you use a
standard contract or
some other contractual
instrument?
• Use standard contract prepared by the city
attorney with specific scope, milestones, and
deliverables (work products) prepared by the
department involved.
5. Once the contract is
awarded, in what ways
do you monitor the
progress of the
consultant?
• Holds frequent meetings and presentations.
• Checks milestones specified in contract to
actual work progress.
• Staff works with consultant project manager.
6. How do you evaluate
the consultant’s
performance during
and then at the
completion of the
contractual work?
• Determines if the work products are acceptable
and works.
• Determines the number of change orders.
7. Key Comments On Consultants
A. Description of an
Outstanding Consultant:
• Exceeds client needs.
• Is articulate.
• Anticipates problems.
• Does not "nickel and dime' the city for changes.
• Guides council, staff, and community through
process.
• Submits few change orders.
• Maintains exceptional communications with all
involved parties, throughout project
• Takes initiative.
• Is well organized.
Table continued on the next page.
194
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
CITY OF SOUTH LAKE TAHOE
B. Description of an
Unsatisfactory Consultant:
Opposite of above, plus:
• Says he or she will do something and does not
do it.
• Is always behind on approved schedule.
• Does not work as a team—it's always someone
else’s fault.
C. Unusual Experience,
Good or Bad, With
Consultants:
• Nothing specific mentioned.
D. Do you plan to use more,
about the same, or fewer
consultants in the future?
• More, due to the city’s need to downsize with
severe revenue short fails.
E. What changes would you
like to see for consultants
to do better work for the
City?
• Have open and full capability consultant contract
so city doesn't have to go out for RFP's so often.
• Should be local if possible.
CITY OF CHICO
City Description • General Law City.
• Population Of 50,000.
• City Council-City Manager Form Of
Government.
Interview Results
1. What have been the
length and nature of
your involvement with
the use of consultants
in local government?
Your current job and
organization?
• City Manager— 18 years.
• Assistant City Manager-20 years.
• Finance Director— 14 years.
• Director of Public Works, City Engineer— 14
years.
• Community Development Director-15 years.
2. What criteria have you
used and/or are you
currently using to
determine when to use
consultants?
• Time sensitivity of project or tasks.
• Expertise needed that is not available in staff.
3. What process do you
use in selecting
consultants?
• < $5,000, city manager can approve consultant
contract.
• > $5,000, formal RFP process, oral interviews,
& council approval.
Table continued on the next page.
1 9 5
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
CITY OF CHICO
4. Once a consultant is
selected, do you use a
standard contract or
some other contractual
instrument?
• Use the City Attorney’s contractual document
with Department Director adding the scope of
services with specific milestones.
5. Once the contract is
awarded, in what ways
do you monitor the
progress of the
consultant?
• Holds regularly scheduled meetings.
• Has monthly in-house progress updates from
the consultant's project manager.
• Requires weekly report from consultant on work
accomplished and work planned.
6. How do you evaluate
the consultant’s
performance during
and then at the
completion of the
contractual work?
• Subjective feeling that the whole process was
positive.
• Products work.
• The public, city council, and staff accept the
work product.
• Products were delivered on schedule and within
budget, with few change orders.
7. Key Comments On Consultants
A. Description of an
Outstanding Consultant:
• Uses same people throughout.
• Honors commitments.
• Stands behind work and defend it if necessary.
• Resolves issues quickly.
• Produces quality work product.
• Is responsive, when information is requested.
• Communicates well.
• Uses a strong project manager.
• Produces concise reports with executive
summaries.
• Doesn’t “nickel an dime” for work that appears
to be new scope.
• Is flexible.
• Trains people when necessary, including city
staff.
• Is proactive.
• Anticipates problems early and recommends
solutions.
• Considers self as part of the team.
• Meets scheduled commitments.
• Looks out for the city’s interests.
• Doesn’t miss any aspects of the contract work.
• Maintains control of subconsultants.
Table continued on the next page.
196
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
CITY OF CHICO
B. Description of an
Unsatisfactory
Consultant:
Opposite of above, and:
• Promises something but doesn’t deliver.
• Is not truthful or up front.
• Changes people frequently.
• City staff does the work for him or her.
C. Unusual Experience,
Good or Bad, With
Consultants:
• Ralph Andersen and Associates, consulting firm
on an annexation project—knew local issues,
did work on time, within budget, communicated
well and everyone had fun.
• Wastewater Study—consultants made design
errors and tried to cover up work.
D. Do you plan to use more,
about the same, or fewer
consultants in the future?
• More, due to old infrastructure and the need for
more annexation.
E. What changes would you
like to see for consultants
to do better work for the
City?
• Use an incentive program for consultants if they
get work done early.
• Give more discretion for city manager—approval
to $100,000 fees.
• Use a contract administrator to monitor large
contracts.
• Use RFQ process, not RFPs.
CITY OF REDOING
City Description • 70,000 Population.
• General Law City.
• Council-Manager Form Of Government.
Interview Results
1. What have been the
length and nature of
your involvement with
the use of consultants
in local government?
Your current job and
organization?
• City Manager— 21 years.
• Deputy City Manager-10 years.
• Director of Public Works/City Engineer-30
years.
• Director of Community Services (building,
planning, economic development, parks and
recreation)~10 years.
2. What criteria have you
used and/or are you
currently using to
determine when to use
consultants?
• Need expertise that staff does not have.
• Need an independent analysis.
• Project is time sensitive.
Table continued on the next page.
197
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
CITY OF REDDING
3. What process do you
use in selecting
consultants?
Uses RFQ process, then negotiate consultant
contract.
• < $25,000, Department director selects.
• > $25,000 review panel selects top firm and
forward to city council for approval.
4. Once a consultant is
selected, do you use a
standard contract or
some other contractual
instrument?
• Uses standard contact with scope of services
developed by appropriate department staff.
• Needs to include how the consultant will be
evaluated as part of the contract.
5. Once the contract is
awarded, in what ways
do you monitor the
progress of the
consultant?
• Holds assigned staff accountable for project.
• Staff holds consultant accountable for work.
• Staff submits weekly reports on work progress.
• Staff monitors contract deliverables.
• Staff holds regularly scheduled meetings with
consultant.
• Staff compares the percent of work completed
with the contract schedule and deliverables.
6. How do you evaluate
the consultant’s
performance during
and then at the
completion of the
contractual work?
• Product works and is within budget, on time and
of acceptable quality.
• Staff feels optimistic about experience.
7. Key Comments On Consultants
A. Description of an
Outstanding Consultant:
• Knows subject matter.
• Has experienced in doing the work.
• Is flexible.
• Listens to staff and city input.
• Presents new ideas not thought of by staff
• Completes all work.
• Is responsive.
• Gives good presentations.
• Is "on top" of the project—within budget and on
schedule— no surprises.
• Maintains excellent knowledge in their field and
applies latest technology methods to solve
problems.
• Maintains excellent communications.
• Works as a team.
• Is organized.
Table continued on the next page.
1 9 8
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
CITY OF REDDING
B. Description of an
Unsatisfactory
Consultant:
Opposite of above, and:
• Always makes excuses; it is never their fault.
• Does not do job right.
C. Unusual Experience,
Good or Bad, With
Consultants:
• Project manager for the new Town Center
worked on incentive and did an outstanding job.
D. Do you plan to use more,
about the same, or fewer
consultants in the future?
• About the same.
E. What changes would you
like to see for consultants
to do better work for the
City?
• Use monetary incentives in consultant, like
project management consultant for the new
Town Center
• Allow more discretionary money for city
manager to approve projects.
• Use larger firms with more capabilities in an
open end contract amount-say $500,000 per
year for three to five years.
• Use more sole source consultant regardless of
dollar amount. Would save a lot of time.
199
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
APPENDI X B
SELECTED OTHER AGENCIES, STATE UNIVERSITY, COMMUNITY
COLLEGE, STATE AGENCY, SPECIAL DISTRICTS, AND ONE SMALL CITY
GOVERNMENTAL AGENCIES INTERVIEW RESULTS
1. What have been the
length and nature of your
involvement with the use
of consultants in local
government? Your
current job and
organization?
• Humboldt Sate University (HSU)— 22 years.
• College of the Redwoods-22 years.
• Humboldt County Public Works— 36 years.
• California Department of Transportation
(Caltrans), District One-30 years.
• City of Crescent City-25 years.
• Humboldt Transit Authority~25+ years.
• Humboldt Bay Harbor, Recreation, and
Conservation District-30+ years.
• Humboldt Municipal Water District— 28 years.
• McKinleyville Community Services District—25
years.
1. What criteria have you
used and/or are you
currently using to
determine when to use
consultants?
• Used most of time since staffs are very small.
• Complex projects.
• Expertise needed.
• Law requires certain amount of consultant
services be used.
• Used mainly for major acts of nature—
earthquake, floods.
• Like to use local consultants if possible.
1. What process do you use
in selecting consultants?
• Small projects/tasks can go sole source.
• Normally, use RFP/RFQ process.
• Approval for CSU and Community College level
can not exceed $100,000 in fees for the
particular campus. Above that amount, the
contract must go to the Chancellor's Office.
1. Once a consultant is
selected, do you use a
standard contract or
some other contractual
instrument?
• Standard contract with scope of services plus
milestones and deliverables spelled out.
Table continued on the next page.
2 00
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
GOVERNMENTAL AGENCIES INTERVIEW RESULTS
5. Once the contract is
awarded, in what ways do
you monitor the progress
o ff the consultant?
• Staff assigned to watch progress.
• Weekly/monthly meetings with consultant.
• Use another consultant or project manager to
monitor big projects.
• Key is a very specific scope of services,
deadline, and milestones, and then make the
consultant live up to the agreement.
• Project Manager communication.
6. How do you evaluate the
consultant’s performance
during and then at the
completion off the
contractual work?
• Positive feeling/impression about project.
• Delivered product in reasonable time, within
budget and of good quality.
• Product accepted by permitting and
environmental agencies.
• If plan to use consultant again, then their
performance was good.
5. Key Comments On Consu tants
A. Description of an
Outstanding Consultant:
• Highly regarded.
• Experienced at particular work being asked to
perform.
• Communicates well.
• Outstanding Project Manager.
• Interacts well with staff, agencies, and others.
• Project Manager takes responsibility and makes
things happen.
• Listens to need.
• Practical design and products—not “gold plated"
when not needed.
• Cost estimates are accurate.
• Don’t “nickel and dime."
• No surprises, “tells it like it is.”
B. Description of an
Unsatisfactory Consultant:
Opposite of above, plus:
• Project Manager can’t control team.
• Has local government staff do too much of the
work.
C. Unusual Experience, Good
or Bad, With Consultants:
• None mentioned.
D. Do you plan to use more,
about the same, or fewer
consultants in the future?
• About the same.
E. What changes would you
like to see for consultants
to do better work for the
City?
• One consultant with all capabilities to do “open
end” work.
2 0 1
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Linked assets
University of Southern California Dissertations and Theses
Conceptually similar
PDF
Internal venturing in public agencies
PDF
A configuration study of multiagency partnerships as practiced in Taipei City government
PDF
Determining risk propensity of government program managers for high risk /high payoff projects
PDF
Conversion of health care organizations from non -profit to for -profit status
PDF
A financial audit model for entrepreneurial governments
PDF
Detecting the effects social and business pressures on small California trucking firm tax compliance
PDF
Assessing United States information assurance *policy response to computer -based threats to national security
PDF
Charter schools' influence on public school administrators' innovative behaviors
PDF
Determining acceptable seismic risk: A community participation-based approach
PDF
Do uses of human resource information technology (HRInT) tools in federal organizations improve their human resource management productivity?
PDF
Educational reform for private state -approved schools in California
PDF
Drug treatment providers' organizational responses to implementation of California's Proposition 36
PDF
Care management for the uninsured: A force field analysis of the business case
PDF
Development of a family risk-factor measure that predicts imminent risk of placement and appropriateness for family-based, wrap -around services
PDF
Historical perspectives and future horizons of local government managers and the International City /County Management Association
PDF
Executive spending power: Flexibility in obligation and outlay timing as a measure of federal budgetary and policy control
PDF
Getting 'how' and 'why' straight: A critical discourse analysis of the National Partnership for Reinventing Government's ideological discourse on information and communication technologies
PDF
Adapting and applying a mission-focused strategic framework for emergency management
PDF
A search for theory: Performance management to improve transportation safety
PDF
Bridled boldness: Reengineering the Federal Bureau of Prisons. Lessons learned
Asset Metadata
Creator
Curl, Terry Winslow
(author)
Core Title
Evaluation of professional services consultants in rural government
School
School of Policy, Planning and Development
Degree
Doctor of Public Administration
Degree Program
Public Administration
Publisher
University of Southern California
(original),
University of Southern California. Libraries
(digital)
Tag
business administration, management,OAI-PMH Harvest,Political Science, public administration
Language
English
Contributor
Digitized by ProQuest
(provenance)
Advisor
Newland, Chester (
committee chair
), Clayton, Ross (
committee member
), Yanak, Francis (
committee member
)
Permanent Link (DOI)
https://doi.org/10.25549/usctheses-c16-172443
Unique identifier
UC11329210
Identifier
3054860.pdf (filename),usctheses-c16-172443 (legacy record id)
Legacy Identifier
3054860.pdf
Dmrecord
172443
Document Type
Dissertation
Rights
Curl, Terry Winslow
Type
texts
Source
University of Southern California
(contributing entity),
University of Southern California Dissertations and Theses
(collection)
Access Conditions
The author retains rights to his/her dissertation, thesis or other graduate work according to U.S. copyright law. Electronic access is being provided by the USC Libraries in agreement with the au...
Repository Name
University of Southern California Digital Library
Repository Location
USC Digital Library, University of Southern California, University Park Campus, Los Angeles, California 90089, USA
Tags
business administration, management