IN YOUR CORNER

 

The Martin County Board of County Commissioners has never been more out

of touch with fiscal expenditures.  There's been too much delegation of

authority to the County Administrator.  When county commission oversight

is eliminated, there is no sense of urgency for the consultants,

contractors, or project managers to reduce costs or complete projects

within the assigned time frames.

 

Not our words, but those of a County Commissioner who won an award from

the Taxpayers' Association for his fiscal watchdog efforts in the first

year of his term of office.

 

He just may have a point.  A random review of eighteen major projects

completed over the last two years having costs estimated at $47,000,000

showed Change Orders and their resultant cost overruns to equal 12%, or

a whopping $5,792,421 over and above estimate.  These projects include

stormwater, road, airport, recreational parks and library projects.

Individual cost overruns ranged from +1.2% to +57% over the estimate.

Another point to consider, if they built in another ten percent

contingency in estimating the cost of a project before it went to bid,

this makes those overruns something that should be questioned, at best.

 

Also, these same projects averaged 63 days late, so if the old adage

"time is money" still holds true, taxpayers were shortchanged in yet

another fashion.

 

We have done a cursory bit of research, and staff has stated that

several projects in this sampling came before the Commission during

certain stages of progress.  Of the eighteen projects used in this

sample, there were seventy-five (75) change orders.  That appears to be

a great many changes in plans that were devised, price-estimated and

sent out for bid.

 

Would increasing oversight by the Commission help matters?  Maybe.  The

question is:  how much oversight is required?  Can it be achieved

without the process falling into the paralysis of micro-management by

the Commissioners?

 

What may be needed is a system that will allow the Commission to

participate in the decision process at critical points in the project

and some new rules to be followed by the project managers.  The MCTA

will gladly assist the county in developing an approval format for

capital projects gleaned from our business experience, but applied to

county government vernacular.

 

In general terms, certain rules apply as follows:  We have been told

that project managers sometimes  spend "left-over money" on their

project at their sole discretion.  All surplus money, or unspent funds

allocated to a project must be reported to the CIP Administrator.

Excess funds should not be spent in any way to change or enhance the

nature, specifications, quality, etc. of the assigned project without

first obtaining County Commission approval.  This should only be done

after a new Request and Justification for Funds has been approved.

The County Administrator's authorization power should be limited to an

agreed to parameter; i.e., 3% or $10,000 on change orders exceeding

estimate or project guidelines.  He may sign purchase orders, contracts

and the like of any dollar amount within the framework of the approved

capitol project, but those above that limit should go to the Commission

via the Consent Agenda or similar format to be approved.

 

Some over-spending, such as Stormwater projects, appear to be cases

where one job led to another, and the project expanded in scope because

the contractor and his equipment were on site, therefore it was the

practical thing to do.  However, if the Commissioners want to eliminate

the appearance of cost and time overruns, this work must be justified on

its own merits and paid for as a separate project.  Taxpayers, while

concerned with form, are more concerned with the bottom line.

 

There is much harm that can be done using too much oversight, as well as

in using too little oversight.  The object is to achieve a workable

balance.  If the current fiscal oversight is to be improved upon, it may

be best done with great caution until the desired comfort level is

achieved.