HomeMy WebLinkAbout10-27-04 Personnel & Finance, Public Works and Property Vacation Joint Meeting of the Personnel and Finance Committee and the
Public Works and Property Vacation Committee
The October 27, 2004 joint meeting of the Personnel and Finance Committee and the
Public Works and Property Vacation Committee was called to order by the Chairperson of the
Public Works and Property Vacation Committee,Dr. David Varner at 4:00 p.m.
Persons in attendance included Council Members Kelly, Varner, and Puzzello, Mayor
Stephen J. Luecke, City Clerk John Voorde, Park Superintendent Phil St. Clair, Public Works
Director Gary Gilot, Community and Economic Development Executive Director Sharon
Kendall, City Attorney Charles Leone, City Controller Frederick B. 011ett, III, Manager of
Secretarial Services Mary Ann Myers, Director of Communications and Special Projects Mikki
Dobski Shidler and Kathleen Cekanski-Farrand, Council Attorney.
Dr. Varner noted that the joint committee meeting was called so that Fort Wayne
Council Member Donald J. Schmidt could discuss the Ft. Wayne policies and procedures
addressing purchasing and the role of the Council. Dr. Varner noted that on September 8, 2004,
Council Members Puzzello,Kirsits and himself went with the Council Attorney and met with the
Director of Purchasing for the City of Fort Wayne Mr. James Howard. Some of the concerns
expressed by the Council include items which have gotten past the Common Council without
any timely notice. Purchasing is controlled currently by the Board of Public Works where few
people from the public are involved, and a forum where the Tribune goes infrequently. The
process used in Fort Wayne includes the Council and provides a great opportunity to get
information out for and to the public. The digest page used by Fort Wayne provides a timeline
of information on purchases and specifically includes the Council when an anticipated purchase
is over$100,000.
Dr. Varner then welcomed the 2nd District Council Member from Fort Wayne Donald J.
Schmidt, noting that he was served on the Council since 1971 and is also an Assistant Professor
of Mechanical Engineering Technology at Indiana-Purdue University in Fort Wayne. He then
passed out a packet of information which summarizes the Fort Wayne process, which includes
portions of the Fort Wayne ordinance and the supporting state law. (copies attached)
Council Member Schmidt welcomed the opportunity to meet today. He noted that the
current policies which include a requirement for Common Council approval where an
anticipated purchase would exceed $100,000 has been in effect since 1991. He noted that the
process evolved from being loose to forma,and works for the betterment of Fort Wayne.
Council Member Schmidt stated that Fort Wayne's Purchasing Director is Jim Howard.
He is an attorney who has run the department very efficiently, having worked in the City
Attorney's Office previously and being placed in this position after the former director had
difficulties. Since 1971 the Common Council approved all expenditures by ordinance of$5,000
or more. This amount was later amended to $25,000 which lasted for about fifteen (15) years.
He noted that Fort Wayne began having allot of consultants incurring large expenditures, which
many Council Members believed to be an unwise policy. Council approval is now required for
consultants since it is believed that if the process works well for other expenditures it would
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Public Works and Property Vacation Committee
work well here. The process involving the Council gives oversight. Over the past several years
approximately 98% of the proposed expenditures have been approved. The public and the
Council are more aware of what is going on as a result of this procedure. The process also tries
to find more participates to the process. For example, if there is a single bidder and the amount
of the proposed expenditure is under $100,000, the matter has to come to the Common Council
for approval.
Council Member Schmidt noted that in those instances where a bidder other than the low
bidder is chosen,that item would also have to go to the Common Council. He noted that usually
there are very good reasons based on the bidder's expertise, past experience, etc., but by
including the public and the Council in the process it gives a"comfort level" and more oversight
to the expenditure process.
Council Member Schmidt noted that there were lots of contracts which were being
piece-mealed at $30,000.each. The ordinance was amended so that if the aggregate in one (1)
calendar year reached $100,000, then Council approval was required. He noted that when the
process initially began the City Administration id not like it,but they"have come to embrace it".
He noted that he called former Mayor Paul Helmke and former City Controller Kathy French,
and they"could not imagine not having the process". He added that current Fort Wayne Mayor
Graham Richard sees the overall process as a"way of doing business".
Council Member Schmidt noted that the Council did turn down a contract which was
utilities related.
City Attorney Charles Leone gave an example of a salt contract to which Council
Member Schmidt stated would be covered and is handled under the Fort Wayne procedures
including Council approval.
Dr. Varner noted that Fort Wayne's Purchasing Director Jim Howard noted that when
any contract is to be awarded over $100,000 the vendor is told that the awarding of the contract
is subject to Common Council approval. A letter in the handouts involving the purchase of
approximately $1.4 million of police vehicles noted that the purchase was "subject to the
approval"of the Council(copy attached).
Council Member Schmidt noted that for the past 1 1/2 months, Fort Wayne has been in
the process of discussing the building of a new fire station. The contract had to come to the
Council. He noted that several years ago a fire station footprint was developed for Fort Wayne.
Architectural firms voiced concern that they did not all have access to the process. On the
second time around, everyone had the opportunity to"be a part of the action"; and if this process
would not have been in place it would not have happened. The contract was eventually awarded
to the same bidder.
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Joint Meeting of the Personnel and Finance Committee and the
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Public Works Director Gary Gilot inquired more about professional services. He noted
that South Bend uses qualified based selection(QBS).
Council Member Schmidt stated that it does not cover lawyers,but does cover architects
and engineers. Fort Wayne wants everyone "to get a shot at a project" and often times you see
where the percentage of the fees is more competitive among these professionals since often time
their fees are a%of the total project.
Dr. Varner noted that QBS is permitted by statute, however where multiple architectural
firms could do the job the city never really knows what the best deal is, absent a public process
and it ends up as being the"best guess". He noted that he would like to see more bidding.
Council Member Schmidt noted that professional services were a"touchy area",but even
in a non-bid process it would still have to come before the Common Council so that an
explanation could be given why this particular firm was selected. In this way a "comfort level"
is provided as to how these public funds are to be spent.
City Clerk John Voorde noted that the Indiana Association of Cities and Towns has
backed an electronic bidding process which has a web based time frame.
City Controller Rick 011ett noted that it is also referred to as a"Dutch auction".
Council Member Schmidt stated that Fort Wayne may have had one which was handled
by the Purchasing Department. He noted that their purchasing process allows more explanation
to be given to the Common Council and to the public who wish to participate. It is logical and
benefits the entire community.
Mr. Gilot inquired about the time frame from the Board of Public Works to the Common
Council and whether it was completed within a sixty(60)day period.
Council Member Schmidt stated that they also have a"prior approval"process. He gave
the example that the Board of Public Works approves a project, subject to Council approval;
however they wish to get started in light of the weather. The matter would be heard at the next
meeting of the Council, who meets on the 2nd and 4th Tuesdays. Under the "prior approval"
process, the bid sheets are shown if over $100,000 and an explanation is given to the Council,
and then the Council signs off on the project under"prior approval". A suspension of the rules is
not necessary in light of this process. He noted that they have never gone to 60 days.
Mayor Luecke inquired why an ordinance was used instead of a resolution, noting for
example that tax abatement procedures include resolution action.
Council Member Puzzello also inquired why a resolution could not be used at the
Council level.
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Joint Meeting of the Personnel and Finance Committee and the
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Council Member Schmidt noted that a resolution gives an opinion while an ordinance
involves affirmative action. He stated that because an ordinance requires someone to do
something,that he believes that is why Fort Wayne uses an ordinance.
Mr. Gilot asked about the number of ordinance handled per year by the Council which
are over the $100,000 amount.
Council Member Schmidt stated that he was uncertain of this amount, but probably
included 1-2 per meeting. He stated that this may be too low,but it is not a burden.
Dr. Varner noted that the city could review how many projects have been handled by the
Board of Public Works to get an idea locally.
Mr. 011ett noted that annual appropriation ordinances have to be passed by September
30th of each year, and inquired why that process was not enough.
Council Member Schmidt stated that Fort Wayne's budget is approximately $161
million. All items should be scrutinized, however since the Council has reviewed departmental
budgets closely in the past they currently look at budget requests that are over 3% more closely.
He noted that he is the Finance Chair and knows that financial reviews can be long and tedious.
The "Schmidt Rule" has been developed over the years that reviews take place in 2-hour
increments, since often times going beyond that period of time at one setting is not as
productive.
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Council Member Kelly noted that many concerns have been raised, however he is
concerned about just developing another layer of government.
Council Member Schmidt stated that it is the Council's job and duty to see that dollars
are spent wisely. The process performs the role of a proper check and balance.
Mr. 011ett inquired why such a formal process is used in Fort Wayne, especially in light
of the Board of Public Works role.
Council Member Schmidt stated that the Board of Public Works is an appointed board,
and therefore not as accountable to the public as the Council. There is no community oversight
over the Board of Public Works. Even if the Council would get the information, there is no
formal way of getting it rectified. He noted that the Council has turned down at least two (2)
contracts and have mutually agreed to many others. He stated that the process is not a burden to
the Council or to the Administration.
Dr. Varner noted that change is difficult. The digest page gives a synopsis from start to
finish. He then gave the example of the recent furniture purchase for the new Central Fire
Station in South Bend. He noted that information came to the Council after the fact about many
concerns on a purchase which involved$700,000-800,000. Folks called after the fact and
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Joint Meeting of the Personnel and Finance Committee and the
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advised us that a Milwaukee firm was selected and that they were unable to bid on it. He noted
that information must be shared on a timely basis, and where the process stands currently, it
leaves the public and the Council in the dark.
Mr. Gilot stated that the process involved a federal procurement process, and the local
company did not choose to act under it.
Council Member Schmidt stated that each ordinance has a paragraph which provides a
detailed explanation. There is a bid sheet attached. The Department head appears at the
meeting. The chairperson of the committee reads that paragraph and the department head gives
additional information and answers questions from the Council. In this way there is more
information which has a residual benefit.
Executive Director of Community and Economic Development Sharon Kendall inquired
about grant applications.
Council Member Schmidt stated that they are not part of the process. He stated that the
Council used to approved CDBG monies, but for the past approximate 7 years, the
Administration does not send such matters to the Council. He noted that they go instead to an
advisory committee.
Mayor Luecke then explained the process used by South Bend for CDBG funds, noting
that proposal are discussed with the Council Community&Economic Development Committee.
Following the public comment process, the Council holds public hearings on each of the
proposed ordinances. The next Council meeting will hear those bills.
Mr. Gilot inquired about the number of prior approvals.
Council Member Schmidt stated that 2-3 are heard every Council session, noting that
there are provisions to handle an emergency. He noted that each quarter there are budget
adjustments made by the Administration which involve the Council.
Mr. Leone noted that South Bend has a Park Board, a Board of Public Works, a Century
Center Board of Managers, a Redevelopment Board and a Redevelopment Authority under
statute, and inquired how matters before these entities would be handled.
Council Member Schmidt stated that the Works Board and Park Board matters come
before the Council, and that he believes that the others do also. He noted that it does add to the
work load however it is valid to get information. He noted that committee chair persons are
required to investigate matters and share that information with the entire Council. He stated that
the Council would not learn about these items without these discussions. Fort Wayne has four
(4)primary committees:Utilities,Public Works,Finance and Regulations,with the President not
serving on any of them. The Chairperson of each committee sits for six(6)months and then is
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Joint Meeting of the Personnel and Finance Committee and the
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rotated off and the chair going to the vice-chair; so that neither political party has total controls
of the Committee chairs. Bills are sent to committee and are voted out of each committee prior
to a Council meeting. Each committee basically operates as a committee of the whole.
Council Member Schmidt noted that in 2006 Fort Wayne will increase its population by
40,000. There is a special ad hoc committee discussing this.
Dr. Varner noted that the Fort Wayne process involves notice and openness.
Mr. 011ett again inquired why the administrative process was not enough.
Council Member Schmidt gave the example that there was a situation where the number
of police vehicles "did not add up", when they went to a take home car program; as being just
one example. He noted that the process gives public disclosure. It requires each department to
provide information publicly so that the Council can carry out its duties of due diligence.
Dr. Vamer thanked Council Member Schmidt for coming to South Bend and for sharing
the procedures used in Fort Wayne.
There being no further business to come before the joint committee meeting, Dr. Varner
adjourned the meeting at 5:00 p.m.
Respectfully submitted,
Council Member David Varner,Chairperson
Public Works and Property Vacation Committee
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Attachment
October 27,2004 Joint Meeting of the Personnel and Finance Committee&the Public Works and Property Vacation Committee 6