Lupe Pena spends every day delivering huge stacks of paperwork to city offices. The paperwork system is woefully antiquated but the cost of getting the city into the digital age is running into the millions of dollars.

PORTLAND, Ore. - Delays in a new computer system and software are costing the City of Portland about $60,000 a day.

Every day, Lupe Pena loads box after box of paper onto a cart and heads to various Portland city offices, delivering stacks of paperwork. 

Portland's Chief Financial Officer, Jennifer Sims (pictured at right), and workers in her office of Financial Management have relied on that paper delivery system for 20 years.

"You have to wait for a report to run and then get the reports delivered," she said.

Those reports are the accounting and payroll records for the entire city.  In this day and age of digital storage, the city still relies on this antiquated system for managing much of its records.

So why so much waste in such a 'green' city?

Discussions to upgrade the city's outdated accounting and management system began seven years and three mayors ago.

"It's like the Tram," said Dave Lister (pictured at right), a former City Council candidate.  "They can't really stop.  If they stop, they lose the entire investment."

Lister ran for office after billing problems with a new computer system at the Portland Water Bureau cost the city between $20 million and $30 million.  He also runs an information technology company.

"You would think that after some time, the city commissioners would take any estimate that was put to them initially and at least double or triple it," he said.  "Because that's always how it goes."

Lister is especially concerned about consultant fees.  Documents shows consultants on the project were budgeted nearly $2 million in pay from the city for about 6,800 hours worked.  That's an average of $273 an hour for each consultant, which Lister said is almost double what the highest paid consultants in Portland get for similar projects.

But Sims defends the consultant budget, saying those are typical fees for major technology projects.

"I'd rather be talking to you this way about the success and how diligent we are being to make it right than have you sitting here asking me questions about how it went wrong," she said.

At the time of our interview, the system that was supposed to cost $27.9 million had already cost nearly $50 million, thanks to delays with completing the project, which was scheduled to be finished in 2007.

"It's running more around $800,000 a month," said Sims.

And those costs took another $2 million jump two weeks ago when Mayor Sam Adams and the council approved more spending, putting the costs to date at more than $50 million.  But Sims said in the long run, spending the money to make sure the job is done correctly is the right thing to do.

"It would allow, obviously, for a greener and more sustainable operation because we wouldn't be so paper dependent," she said.  "I think the main thing is that information would be more timely and it would be more accessible."

"I think the best thing we can hope for is that they can wrap it up and get it finished and that it lasts for a good number of years," said Lister.

In large part, the city blames its original contractor, a San Diego company that was eventually fired for causing the delays.