ITEM TITLE:
Approval of Contract Change Order with Lamar Cotten for Services as Economic Diversification Contract Staff in the Amount of $35,000
SUBMITTED BY: Lisa Von Bargen, CED Director
FISCAL NOTES:
Expenditure Required: $35,000
Unencumbered Balance: $437,436
Funding Source: 001-5400-43400 ED Contractual Services
RECOMMENDATION:
Approve Contract Change Order with Lamar Cotten in the amount of $35,000 for Services as Economic Diversification Contract Staff.
SUMMARY STATEMENT:
During the 2017 Budget Hearings the Council provided direction to split Economic Development out of the Community & Economic Development Department and hire a new director position to lead this effort. One request by the Economic Diversification Commission (which seemed to have Council support) is to maintain the contract position currently held by Lamar Cotten, through the transition time, at a minimum.
Mr. Cotton’s original contract was approved in February 2015 in the amount of $125,000. It was anticipated that amount would only cover one year. Mr. Cotton only charges the City for the hours he work on Valdez EDC business. Furthermore, he does not charge the City for his travel time, including overnight stays and any downtime while in Valdez and not working on local issue. Because of this the contract has lasted a full two years, rather than just one. Following the November billing the contract has $7,290 remaining on it. A portion of that will be used to cover Mr. Cotten’s December work.
Thinking most, if not all of the contract would be used by the end of FY15, the 2016 Budget included $85,000 in the contractual services budget to continue the contract. This money has gone unused and will “expire” at the end of 2016 if not encumbered. Therefore, staff is recommending a contract change order with Mr. Cotten, in the amount of $35,000, be approved prior to the end of 2016. This encumbered contractual services money will transfer to the 2017 Budget.
$50,000 is allocated in the 2017 Budget for contract staff services. Given Economic Development is a new, stand-alone, function this money can be used for unknowns next year, or to further continue Mr. Cotten’s contract if necessary.
In addition to his billable hours, the City covers travel expenses for Mr. Cotten. Those expenses are taken from the Travel line item within the Economic Development budget. In 2015 Mr. Cotten’s travel expenses were $11,852 and in 2016 through November his travel expenses equal $12,463.
The total cost of Mr. Cotten’s time and expenses from February 2015 through November 2016 is:
Contract Time: $117,710
Expenses: $ 24,315
Total: $142,025