Back to the Table of Contents Page

Back to The Almanac Home Page

Classifieds

Publication Date: Wednesday, January 30, 2002

Portola Valley council backs its use of consultants

By Sharon Driscoll

Almanac Staff Writer

When Portola Valley town engineer Kevin Rohani resigned recently after just two years on the job, he pointed to the town's reliance on long-term consultants to perform staff functions, such as town planner and geologist, as his primary reason for leaving. His concern, he said, was that long-term consultants in these positions can become too powerful, and can promote projects and policies that lead to more work for their firms.

Town Council members say they don't agree with this view. They express support not only for the town's reliance on consultants as a way to maintain a small and flexible staff, but also for the integrity of the individuals who hold those positions.

None of them could point to any examples where reliance on consultants had been raised as a problem. "Portola Valley has one of the world's best regional planners and [one of the world's best] geologists working for it," said Councilman Ted Driscoll, referring to George Mader, president of Spangle Associates in Ladera, and Bill Cotton, a principal with Cotton, Shires and Associates in Los Gatos.

The content and quality of their work cannot be compared with other towns, said Mayor Ed Davis.

  In Woodside

In neighboring Woodside, consultants were used extensively until the early 1990s, when most key services were converted to in-house staff positions, said Town Manager Susan George.

While she did not comment on Portola Valley's staffing, she echoed the concerns of Mr. Rohani. She said that when she began working in Woodside, she saw clearly the potential for conflict of interest with consultants in key positions, able to influence town decisions that could result in their financial gain.

Ms. George added that the Woodside Town Council had heard complaints from residents that consultants had no motivation to get things done quickly because they were being paid by the hour. In the early 1990s, the council decided to make planning, geology and engineering services in-house positions.

"Having these services in-house has proved to be not only more effective, but more cost-effective too," said Ms. George.

Cost of consultants

While this town of about 1,700 households prides itself on maintaining a small staff, it has budgeted just over $1 million for the fiscal year ending June 30, about a third of the town's operating budget, to buy the services of consultants for a range of services, from town attorney to town geologist and town planner.

About half of that will go to Spangle Associates of Ladera, which has seven employees and provides planning services for the town. The company's president, George Mader, has been the town's planner since 1964. He attends council and commission meetings, and advises on planning policy.

Mr. Mader said the firm bills at hourly rates that range from $78 for assistant planner to $184 for a principal planner, such as Mr. Mader. The rates can't be compared to wage or salary rates because they also cover overhead, all the costs of running a business, from rent to employee benefits, taxes and insurance. Mr. Mader estimates that 64 percent of the hourly charges are for Spangle Associates' overhead.

About $150,000 of the money budgeted for Spangle Associates in the current fiscal year is for special studies at the direction of the town's Planning Commission, and about $22,000 is to provide services for the Architectural and Site Control Commission.

In addition, Spangle Associates receives a $45,600 a year retainer for time spent at council and Planning Commission meetings, and on communications (calls, letters, meetings) with town officials and the public.

Another $285,000 of the Spangle Associates budget is paid for by applicants for subdivisions, conditional use permits, variances, and the like.

Rohani's view

"My concern is with the use of consultants in town and the selective dual service they provide _ both as staff at times and consultant at times _ with its inherent conflict of interest that is both professional and financial," said Mr. Rohani.

Now working as the staff engineer for the town of Los Gatos, Mr. Rohani described the arrangement of employing hourly-rate consultants in key positions in Portola Valley _ in which they advise on projects, then in some instances carry out that work _ as a recipe for trouble.

As an example, he cited the process followed by the town to come up with guidelines for building in the creek-side corridor: The town appointed a committee, led by planning consultants who wrote the committee report; then their firm conducted the subsequent research and wrote the proposed regulations and recommendations. (Six of the eight members of the committee who reside along town creeks later wrote a letter to the Planning Commission complaining that their views were not included in the proposals.)

Mr. Mader said he chaired the committee of about 20 people, made up of town officials as well as property owners along the creeks, and prepared the proposed regulations at the Town Council's direction. He said he recommended that the draft regulations go back to the committee, but the council decided to forward them to the Planning Commission.

Another example of potentially conflicting roles was evident at last week's Town Council meeting. Acting as town planner, Mr. Mader presented the council a request from the Planning Commission to increase its planning budget by $44,500, money that would go to Spangle Associates, of which Mr. Mader is president.

In addition to a potential conflict of interest, Mr. Rohani said he believes the town is probably spending more than it should for long-term consulting services.

Long-term consultants

Portola Valley has employed long-term consultants for key, ongoing services since it incorporated in 1964. The town has long-term consultant contracts for planning and geology services.

In addition to town planner George Mader, Tom Vlasic, the deputy town planner, is vice president and principal planner at Spangle Associates. He attends the town's Architectural and Site Control Commission meetings and reviews complicated building projects.

Mr. Mader, Mr. Vlasic, and Spangle Associates' staff work on special projects for the town when necessary.

The town geologist since 1977, Bill Cotton is a principal with Cotton, Shires and Associates in Las Gatos. He reviews building projects and advises the town on geological issues. He and his staff also work on special projects. Their hourly rates range from $85 to $155.

Portola Valley is traversed by the San Andreas Fault and has unstable hillsides that create problems for buildings, roads and utilities. The town was a pioneer in planning building around geological hazards, and is internationally recognized for this work.

Why consultants?

Mayor Ed Davis said that the town decided early on that it did not want a large staff, and anytime there's been a suggestion to add even a half-time position to the payroll, there's an uproar in town.

Without a call from its residents, staff, or volunteers to review the consultant-services practice, Mr. Davis said, the council would not be inclined to fix something that is not perceived to be broken.

Mr. Davis said the town has reviewed its use of consultants in some areas, and made the posts of building inspector and town engineer, both of which had been consultant positions, staff positions about five years ago. The motivation then was to get a more responsive service for the town at a time when building and home renovation projects were increasing, he said.

But the town's arrangements with Spangle Associates and Cotton, Shires and Associates have not come under review, according to Mr. Davis.

Councilman Kirke Comstock said that coming from Palo Alto, where he also served on its council and where most positions are staff jobs, he found the number of consultants used in Portola Valley surprisingly high. He said he is open to examining the issue _ particularly the cost of services to make sure the town is spending its resources well. But he added that he hadn't heard complaints from residents.

"I appreciate having the background and consistency of their in-depth knowledge about the town," said Portola Valley Planning Manager Leslie Lambert, who oversees planning applications. She said that in the 10 years she's been a member of the town staff, the use of consultants has not been raised as a problem by residents.

Town Administrator Angela Howard raised another point supporting the town's use of consultants: lack of space. She said that she and her staff were at capacity in their current offices and could not fit a planning department and geologist in Town Hall.

Undue influence?

"Our role is to support the community in what they want to do. The Planning Commission and Town Council set the policy, we don't direct it," said Mr. Mader, town planner and president of the consulting firm, Spangle Associates. "I've never felt that I have a lot of influence in town."

The council members interviewed for this story agreed that with any of the town's consultants, the potential for conflict of interest and the ability of consultants in key positions to influence policy must be examined periodically _ but none of them could point to any examples in town when it had been raised as a problem.

  Cost of talent

"In a smaller community you can't afford a wide range of talent," said Mr. Mader, whose company consults on planning issues throughout California and the country, and so can spread staffing costs across a range of projects. "We can bring expertise when it's needed. And we do have a depth of knowledge about Portola Valley that is considerable."

The council members interviewed agreed that the cost for those services should be examined periodically.

However, according to Ms. Howard, these services have not been put out to bid or compared on the open market. Town Attorney Sandy Sloan said there is no legal requirement for the town to put services out to bid.

Asked how the council knows if the costs are reasonable, Mayor Davis said the planning proposals and costs are reviewed regularly, generally quarterly. "With all consultants, you have to ask, are they assigning themselves work?" he said.

Portola Valley consultants have been "quite conscientious in what they ask," he said. "Work is assigned because people [including planning commissioners] ask questions."

In comparing costs, a town has to consider the quality of the work, he said. "One of my concerns is, is there another George Mader in the pipeline?'

  Didn't fit?

Councilman Richard Merk said the former town engineer, Kevin Rohani, "never understood" Portola Valley. "Kevin wanted to build an empire. He wanted to bring everything in house. He didn't understand the volunteer spirit."

Replies Mr. Rohani: "What does volunteer spirit have to do with consultants? I'm saying residents should get something in return for the money spent on planning. What do they have? They have studies. They've turned the town into a research institution."

Comparing Costs

Town planning, building departments

Budgets for year ending June 30, 2002
Portola Valley

NOTE: Woodside has about 2,000 households, about 300 more than Portola Valley; and has a larger commercial district. Woodside Town Manager Susan George said about 25 percent, or about $149,000 _ representing the town's overhead costs for office space, computers, telephones, etc. _ should be added to in-house costs to fairly compare them to consultant service charges, which include overhead charges. But she said that in her experience, bringing services in-house, as was done recently with Woodside's town geologist, not only made this service more accessible to residents by locating it in Town Hall, but also cut the cost of that service by more than 50 percent, precisely because the town no longer paid the consultant's overhead charges.
Portola Valley Town Planner George Mader, president of the planning consulting firm Spangle Associates, said he doubts that the 25 percent estimate truly covers all overhead costs, such as memberships in organizations, accounting services, people to answer phones, libraries, utilities, etc. "We maintain a conference room, often used by Portola Valley staff because they don't have a conference room. We maintain a library, and a library of maps." Mr. Mader said overhead charges represent about 64 percent of the hourly rates charged by Spangle Associates employees.

Reader comment invited

Readers are invited to comment on this issue by sending e-mails to editor@AlmanacNews.com. Please state if it is a letter for publication.