In a recent Toledo Blade article, Councilman Betty Shultz was reported to have spent nearly $1,600 to support meetings of a “group of citizens called the mayor’s advisory committee, who come together on IT issues.” In that same article, Shultz was lauded for spearheading a $10 million project to overhaul the City of Toledo’s financial systems.
That project involved selecting a company to implement a new ERP system, which would track the finances of the city. Public records reveal some questionable gaps in that process.
Friday, June 20, 2008: LSI was unanimously recommended for the contract
An independent review committee with representation from the departments of Fire, Police, Utilities, and Information & Communication Technology ranked the proposals from four firms. LSI Consulting finished first, with SAP Public Services second. On Friday, June 20th, the committee unanimously recommended LSI Consulting for the contract. →Download the Sherburne memo: 11,377KB pdf
Thursday, July 10: Councilman Betty Shultz blocks the contract decision
A Department of Public Utilities memo from David Leffler, Director of Public Utilities, reads “The committee unanimously recommended LSI primarily because they do only public sector work and had by far the strongest municipal finance expertise. At first, Betty Shultz agreed with the recommendation. However, she later decided that LSI was not an appropriate choice and insisted that SAP America be awarded the implementation contract… Betty has promised to hold up funding of the project until SAP America is chosen.” →Download the Leffler memo: 2,620 KB pdf
Wednesday, July 30: The total project cost is more than $12 million
An e-mail from an Administrative Analyst in Utilities Administration includes updated prices for software and other services that bring the total cost of the project up to $12,093,177. →Download the July 30 cost update: 2,779KB pdf
Why was the unanimous recommendation for LSI Consulting blocked?
In e-mails on January 12, 15, and 20 I raised my concerns with Councilman Betty Shultz. She never replied to the e-mails, but eventually called me on Thursday, January 20. Shultz declined to address my concerns, and asked instead where I got copies of these public records. I responded, “I’m not sure that’s important,” to which she said, “Then I’m not sure it is important I talk to you.”
Shultz then referred me to City of Toledo attorney John Madigan, who offered to help fulfill any public records requests I had. Madigan stated, however, that public officials are not required to answer questions or generate new records to respond to an inquiry under Ohio Open Records Law.
That is true enough, but the fact is that $12 million in public money has been spent very secretively. I am going to the Information Services committee tomorrow morning to try again for an explanation.