With that in mind, Randall Funding and Development was hired to provide grant writing and research services for the city. The company assists local governments and school districts in locating and securing grant money. After six months, the city has yet to see a return from its $18,000 investment.

The council reviewed the performance of the grant writing company at a council meeting on Feb. 2 and expressed disappointment in its performance. The council also directed staff to begin talks with company representatives and renegotiate the contract so that the city would be paying for services on a per grant basis instead of a monthly fee.

Under the new contract, the city would pay $3,000 per grant application. If the company does get a grant for the city, it earns a 5 percent incentive fee with a $10,000 cap.

Dan Hamilton, the company representative, said at the meeting that the grant writing business was a cyclical one and this time of the year was slow for business. But he said that things would pick up by the spring.

In the time that the company has worked for the city, they have filed for three grants, none of which have materialized.

Hamilton said at the meeting that the company was open to negotiations and wants to work with city staff closely so that the problems could be sorted out.

Mayor Kathleen King said that the company had totally oversold itself during the negotiations last year. "We were excited. I had even talked to the county about the company," she said.

King said that no one from the company had mentioned a slow season for grant writing when the contract was being signed. "I do not have the confidence that we will be a priority in the next six months," she said.

The city had signed the contract on a promise that Randall Funding and Development would raise $500,000 in grant money. If it did not raise the money during the stipulated period, it would continue to work for free until the money was raised.

Hamilton expressed some frustration at city staff not being able to return calls from the company in a timely fashion. He indicated that Cary Bloomquist, administrative analyst at the city, who has since left for another job, had been extremely busy in his last few months with the city.

"It is easy to blame a staff person that is no longer with us," said King.

Councilwoman Aileen Kao also expressed disappointment at the performance of the company and said that she saw no point in carrying on.

At the meeting, John Cherbone, the city public works director, was asked if he could devote enough time for the grant writing company.

"I would be less than honest if I said I had the time," he said.

Cherbone asked the council to decide about the position that had fallen vacant in his department after Bloomquist's departure. He said that his department was overextended even when Bloomquist was around. "Maybe we can hold the contract until we get another person," he said.

Councilwoman Ann Waltonsmith and Councilman Nick Streit felt that the city should follow through and let the company finish what it had started.

"If you take a risk, follow it through," said Waltonsmith.

She said that her daughter also worked in the grant writing industry and there was indeed a slow season.

"I think we should give them an opportunity to complete the cycle," said Streit.

Councilman Norman Kline was absent for the meeting.

The council ultimately decided to let the company carry on, but only after the contract had been renegotiated.

Hamilton said at the meeting that the company had more than 65 clients. Randall Funding and Development has worked with the cities of Hartford, Conn., and Fort Myers, Fla. The Sacramento City Unified School District has also been one of its clients.

"There has been some concern about the performance of the company. But I am not here blowing smoke. I can assure you that things will get much better in the next four months," Hamilton said.