Why these Million dollar handouts?
From "The Tornado Relief and Recovery Fund"
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I see in the latest reporting several $1M payments for unspecific services. How does the city arrive at these large but conveniently rounded amounts?
Are these the result of a careful analysis of the extent of the services, and their cost-effectiveness? Doesn't look like it.
Rather, it appears to be just doling out junks of cash to provide the appearance of doing something.
What are the formal expectations? Will these entities be monitored and audited to compare results against the expectations?
The city has demonstrated time and again its inability to properly oversee its large expenditures, to the detriment of the taxpayers. Will this be any different?
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Profile of Jay Nelson
Posted by:Jay Nelson
10 months ago
Hi Rob,
Thanks for your questions. We’ve added more documentation with extra detail on the contracts.
Most contracts authorize maximum payments for services to be rendered. In other words, the contractor is approved for future payment up to a specified amount.
If a contract shows a very specific sum, it’s typically for a purchase of supplies with a fixed cost.
Contracts over $5,000 proceed through the Professional Services Selection Committee (per City Ordinance 64102). This committee includes voting members from the Mayor’s Office, the Comptroller, and the President of the Board of Aldermen. They review requests for proposals, conduct vendor interviews, and vote on a contractor. These meetings are publicly posted on the city website and open to the public.
After the Professional Services committee votes, the contract goes to the Board of Estimate and Apportionment (E&A). By this stage, the contract has already been reviewed by the PSA committee, the legal department, and the appropriate city department.
If E&A approves, the Comptroller’s Office finalizes the process, ensuring proper tax and license clearance, City Counselor’s approval, and that there is a funding source, among other checks.
I hope this is helpful.
-Jay Nelson, Chief of Staff, President of the Board of Aldermen