TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, City Manager
TITLE: Discussion and Direction Regarding Submitting a Charter Amendment to Electors Related to the City Manager’s Authority to Sign and Enter Into Contracts and Applications on Behalf of the City.
Recommended Action
Discussion and direction regarding submitting a Charter Amendment to electors related to the City Manager’s authority to sign and enter into contracts and applications on behalf of the City.
Background Information
Chronological Order of Events: Changing Provisions in City Charter Regarding City Commission Approval of Contracts, Agreements and Interlocal Agreements and Designating the City Manager as the Authority for Approval of Contracts, Agreements and Interlocal Agreements
Ø January 12, 2021: During City Commission Regular Meeting, the following actions were taken:
ü A motion was made to refer to the Charter Review Advisory Board a recommendation on removing the requirement that all contracts go the City Commission for review and Interlocal Agreements requiring Mayor signature.
ü A motion was made to amend the motion to include a detailed summary of how the Charter Review Advisory Board arrived at their recommendations with the pros and cons of those items.
Ø March 31, 2021: During the Charter Review Board Meeting, the following actions was taken:
ü A motion was made to recommend to City Commission that Section 9.01(l) be amended, and verbiage be added relative to providing the City Manager permission to sign any contracts, agreements, or applications that have been approved in the annual budget or that have no financial impact and are in the best interest of the City and that the City Manager shall notify Commission of contracts, agreement, or applications that he/she approved.
Pros of this recommendation included less administrative work for Commission and quicker processing time of documents. Cons of this recommendation included potential use for abuse.
ü A motion was made to recommend removing the language in Section 5.03(d) relative to the requirement for the Mayor to sign all interlocal agreements and to add language giving the City Manager the responsibility to sign all interlocal agreements.
Pros of this recommendation included consistency and procedures, streamline of the process, and it is defined role of the City Manager.
Ø May 19, 2021: During the Charter Review Board Meeting, the following actions were taken:
ü A motion was made to add the verbiage, "budget vote may not be reflective of the new Board if there is an election" and "lack of transparency to the public if the items are not on the consent agenda" to the cons of signing agreements.
Applicable Sections of the Code of the City of North Port, Florida Pertinent to Contracts, Agreements and Interlocal Agreements
1. Chapter 2 - Administration, Article VIII - Procurement, Sec. 2-403. - Exemptions.
(a) The provisions of this article shall not apply to:
(1) The procurement of goods and services which do not exceed $100,000.00 may be made by purchase order from budgeted and appropriated funds without further approval by the city commission.
2. Part 1 - Charter, Article IX.- City Manager, Sec. 9.05. - Powers and duties.
The City Manager, as Chief Administrative Officer of the City, shall be responsible to the City Commission for the proper administration and management of all affairs of the City including, but not limited to, those placed under the City Manager's authority under this Charter. The City Manager shall:
(l) Sign all contracts, agreements, and applications for the City after such has been approved by the City Commission at a regular or special City Commission meeting.”
3. Part 1 - Charter, Article V. - City Commission Authorities, Sec. 5.03. - Position of mayor.
(d) The Mayor may use the official title when necessity arises from the general laws of the State. The Mayor shall be recognized as the official head of the City by the courts for the purpose of serving civil process; in the exercising of military law; and for all ceremonial purposes; sign on behalf of the City all intergovernmental agreements, ordinances, resolutions and any other official documents.
Standard Operating Procedure for Obtaining City Commission Approval Prior to Execution of all Contracts, Agreements and Interlocal Agreements
§ Department obtains documents and drafts the narrative seeking Commission approval.
§ Department enters the agenda item for approval in Legistar.
§ Department adds the agenda item to the rolling agenda maintained in the City Manager’s Department.
§ The agenda item is processed through multiple staff review and approval steps.
§ Agenda items requiring review and approval by Finance Department (7 to 12 staff).
§ Agenda items requiring review and approval by other Departments not requiring Finance Department review and approval (8 staff).
§ Each agenda item on the rolling agenda is reviewed in every Director’s meeting.
§ The agenda item is submitted via Legistar to the Finance Department. The legislative text and back up documents are then reviewed.
§ If the documentation is complete, the applicable form is submitted for multiple signatures.
§ Legislative text is reviewed for correctness and edited, if necessary.
§ Revisions are sent to the appropriate Department to make corrections.
§ Once the Procurement Division of the Finance Department is informed that all changes are made, the agenda item is entered on a spreadsheet indicating that the Procurement Division has completed their review.
§ The agenda item is reviewed by the Budget staff and the financial impact is reviewed by applicable Finance staff.
§ The agenda item is reviewed by the City Manager, Assistant City Manager and Senior Executive Assistant to the City Manager.
§ The agenda item is then scheduled on the appropriate City Commission agenda meeting (Regular or Special Meeting, Road and Drainage District, Solid Waste District or Fire-Rescue District) for their review and approval. Please note that staff from various departments are available to respond to Commission questions.
§ Subsequent to Commission approval, the City Clerk’s Department staff obtains the appropriate final signatures.
§ City Clerk returns the approved item to the appropriate Department’s staff.
§ The Department proceeds with the applicable procurement process.
Summary of Staff Costs to Process City Commission Agenda Items for Contracts, Agreements and Interlocal Agreements
It is estimated that authorization of the City Manager to enter into Contracts, Agreements and Interlocal Agreements not to exceed $99,999.99 would eliminate the need for approximately 30 agenda items each year which have a financial impact. In addition, staff processes 25 to 30 agenda items which do not have a financial impact. This staff hour savings translates into an estimated 300 hours on a City-wide basis. These are 300 hours annually, that professionals hired and compensated based on a specific skill set, may apply to City outcomes requiring that experience. In addition, this would also lessen the number of agenda items being scheduled for review and approval by the City Commission.
In monetary terms, this equates to an estimated $11,000 per year at a compensation level of $75,000 per year (including benefits). The monetary terms increase dramatically for complex Agreements. In addition, this compensation level assumption is low considering the level of involvement of the Directors and Assistant Directors.
The elimination of each agenda item is estimated to save 10 staff hours, City-wide. This estimate is based on a simple Agreement that is processed without complication. The staff hour savings will be dramatically higher for complex Agreements.
Staff Recommendations
City Commission direction is requested for the following staff recommendations:
1. Inclusion of a referendum question on the Sarasota County General Election Ballot on November 8, 2022, which states:
“Should the City of North Port Charter be changed to state that the Commission has the authority to establish a threshold for the City Manager to enter into agreements and applications, and giving the City Manager the authority to sign ALL contracts.”
2. The City Commission shall adopt an Ordinance amending the Code of the City of North Port, Florida, which includes a code provision that allows the City Manager to enter into contracts with no financial impact up to a maximum financial impact of $100,000.00.
Strategic Plan
Good Governance Pillar
Financial Impact
Not applicable.
Procurement
Not applicable.
Attachments:
1. PowerPoint Presentation
2. Code City of North Port FL Sec. 2.403 Exemptions
3. City of North Port FL Charter Sec. 9.05 Powers & Duties City Manager
4. City of North Port FL Charter Sec. 5.03 Position of Mayor
5. Charter Review Advisory Board Minutes May 19, 2021
6. Chart Revie Advisory Board Minutes March 31, 2021
Prepared by: Tiffany Fowler, Accountant III
Department Director: Kimberly Williams, Finance Director