News 4 On Your Side: Who will foot the bill for Reno's added payroll costs?

Reported by: Joe Hart
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Updated: 12/09/2013 9:02 pm
RENO, Nev. (KRNV & MyNews4.com) - The Reno City Council will soon be asked to approve an additional $ 172,000 for ADP,  the company in charge of  the city's new automated payroll system.

That money is on top of the $ 1.1 million  approved in the original contract last year.   

The city says its union contracts turned out to be more complicated than ADP projected, and that's part of the reason for the cost increase.

"Changes are sort of indicative when you have a complicated process like we have," said Kate Thomas, director of the office of budget and management for the City of Reno.   News 4 interviewed Thomas in October when the cost overruns were first uncovered.

The issue was supposed to come before the council this week (December 11th) for approval.  But that's been pushed back until next month.

"It has to be noticed with Nevada law. Unfortunately because of a clerical error that didn't take place on time,"  said  Reno's assistant city manager Cadence Mateivich.

There is growing concern over whether the city should have to cough up extra taxpayer dollars over and above an existing contract.    

"My question is why is that on us ? If you didn't do your job in the beginning why are we burdened with the additional cost ?" asked Councilman Dwight Dortch. 

Councilwoman Hillary Schieve agrees the extra costs should not fall on the taxpayers.

"I'm certainly not in favor of spending $172,000 on a contract that we've already spent a lot of money on. We're not the Bank of Reno and I'm not going to spend taxpayer dollars like that," Shieve told News 4.

ADP declined to be interviewed for this story.   If the council does not approve the extra money it will be a very interesting situation.  Councilman Dwight Dortch says he's not ruling anything out, including the possibility of going back to the old payroll system.  We'll know more next month.
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6 Comment(s)
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BDeckwa - 12/10/2013 7:25 PM
0 Votes
We have to pass this bill without reading it. Remember that line from Pelosi. It seems to work in Reno also.

Kate521 - 12/10/2013 6:40 PM
0 Votes
I agree with the previous comments but maybe some burden should fall on the unions. If there pay & benefit structure is so complicated let them finance the extra cost. This reminds me of health care admin costs. Providers spend so much on paperwork that patient care can suffer or they just give up & retire because it costs too much to get oaid.

Time Out - 12/10/2013 11:15 AM
0 Votes
If the contract provided terms for additional or unforseen costs, which it should address, then "informed" council members would,t be wandering around with dazed looks and no answers. Remember the parking meters?? And the bus terminals//

Renoite - 12/10/2013 8:08 AM
0 Votes
Have you seen the contract? Did you ever think that just maybe there is a provision in said contract to account for additional costs? Without of the facts opinions are useless.

oldguyincc - 12/10/2013 12:10 AM
0 Votes
It appears that ADP didn't exercise due diligence in researching the paroll system. The union contracts had to have been available for ADP to reference while designing the system. Don't knuckle under, City of Reno.

Time Out - 12/9/2013 7:42 PM
0 Votes
A contract is two parties agreeing to a set of terms, usually one party providing something and the other party paying for it. If one party later finds it can't or doesn't want to perform its obligation, it has no right to demand a change in the terms of its obligation. If the City Council wants to relinquish its position in this contract, it should pay the bill from its own pockets, not ours. It's always too easy to be a hand-wringing bed-wetter when you're spending other peoples money. Don't give in with my money; be prepared to pay the bill yourselves. Remember, you made the deal in the first place; surrendering now woild be admitting incompetence on your part.
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