On Your Side: Costs climb for Reno's new payroll system

Reported by: Joe Hart
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Updated: 10/30/2013 7:01 pm
The price tag for the city of Reno's new automated payroll system is about to rise.

Kate Thomas, director of the Office of Budget and Management for the city of Reno tells News 4 she plans to ask the city council for an additonal $172,000 to pay for the new payroll system that launched in August.  
 
"Changes are sort of indicative when you have a complicated process like we have," She said.

Thomas says the extra costs are needed to accomodate union pay scales for the police and fire departments that are all unique to one another and require a more sophisticated software system.

"Each of the contracts has its nuances as far as who gets what level of pay, at what point that pay is triggered," Thomas explained.

The city has already paid out $229,000 for project management fees to a company called Aerotek, just to get the system up and running.
The additional $172,000 will be added on to the city's original $1.1 million contract with ADP, the payroll system operator, bringing the total
cost now to about  $1.5 million simply to pay city employees.

News 4 asked Thomas if taxpayers should be concerned about the cost increase:

"These costs came on the implementation process. They didn't just show up after implementation.  They were borne during the process of implementing.  We hadn't considered process "x"  to be put into place."   Thomas said.

But the increase did come after the original contract was approved.  Now it will be up to the city council to crunch the numbers and decide whether this new payroll system is still a sound investment.

"We've been keeping them abreast of the whole process so they shouldn't be surprised," she said.

But three members of the Reno City Council tell News 4 they had no idea about the cost increase.   Dwight Dortch, Jenny Breckhus and Neoma Jardon each said they were surprised to hear the news and could not comment on the proposed cost increase yet because
they had not been briefed about it.

The council is expected to vote on the proposed increase sometime in November.
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3 Comment(s)
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Here are the most recent story comments.View All

BDeckwa - 11/1/2013 6:45 PM
0 Votes
Kind of like pounding sand down a rat hole. Throwing good money after bad. Still no return. Would have been better off to handle it with different accounting programs other than that one. One Company I worked for had a program for accounting and we had four different unions.

Justdoit - 10/31/2013 2:40 PM
1 Vote
This does not surprise me given the corrupt financial decisions the Reno City clowns have made with spending the taxpayers monies. Talk about a group of dysfunctional leaders. If I was a betting person I'd bet the City of Reno files bankruptcy within two years.

jd111358 - 10/31/2013 2:02 AM
1 Vote
another great deal like the new parking meters?
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