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Minutes 07/10/2012 DRAFT 7.31.12 MINUTES OF A SPECIAL MEETING OF THE COLLIER COUNTY PRODUCTIVITY COMMITTEE Naples, Florida, July 10, 2012 LET IT BE REMEMBERED, the Collier County Productivity Committee in and for the County of Collier, having conducted business herein, met on this 10th day of July, 2012, at 10:00 AM in SPECIAL SESSION in Building "F" of the Government Complex, in the County Manager's Conference Room, Naples, Florida with the following members present: Chairman: Steve Harrison Joe Wall Vlad Ryziw Gina Downs Tom Lykos Excused Absence: Cheryl Pavilick , with 4 Vacancies ALSO PRESENT: Jim Coletta, Commissioner, BCC Liaison Winona Stone, County Manager's Staff Liaison Pat Lehnhard, Staff Liaison— Clerical Crystal Kinzel, Finance Director, Clerk of Courts Office Connie Murray, Finance Operations Director, Clerk of Courts Office Bonnie Baer, Assistant General Operations Manager, Clerk of Courts Office Len Price, Administrator, Administrative Services Joanne Markiewicz, Interim Director, Purchasing Department Any persons in need of the verbatim record of the meeting may request a copy of the audio recording from the Collier County Communication and Customer Relations Department. Introduction A. Welcome/Call to Order/Attendee Recognition—Steve Harrison, Chairman Mr. Harrison called the meeting to order at 10:07 a.m. and a quorum was established. Mr. Harrison advised Jim Gibson had tendered his resignation. Page 1 2 DRAFT 7.31.12 B. Approval of today's meeting agenda After review of agenda by Mr. Harrison, Gina Downs made a motion to approve the agenda, seconded by Vlad Ryziw, and approved unanimously. C. Approval of the Productivity Committee Meeting Minutes from 6/20/12. Vlad Ryziw noted that the minutes were exceptional and made a motion for approval. Gina Downs wanted to clarify her comment on page 8 (page 7 of minutes), second paragraph after the break, about it not being the focus of the Productivity Committees to make Collier more business friendly after Joyce Fletcher from the LWV made her comment about this project possibly making Collier County more business friendly. Gina didn't think the way her comment was written showed her intent. Gina doesn't feel the ultimate goal of the Committee is to look for ways to make Collier more business friendly. We are working on a project and the numbers are the numbers. Joe Wall asked Gina if she didn't think this project goal is to make Collier more business friendly. Vlad asked Gina if she wanted to make a change in her comment or make an addition to clarify it. Tom Lykos asked Gina what the actual problem is. Gina feels it paints the picture that this group has a goal to come up with sources to make Collier more business friendly, and that is not what it is. Tom asked her if this was what she said. Gina didn't think it reflected her intent; that this is not a group whose end goal is to find sources that are business friendly. The Committee's goal may be that at times; but it may not be at other times. Committee members agreed that her statement reflected that and did not see anything wrong with it. Gina agreed to let the minutes remain as is. Joe Wall seconded Vlad's previous motion to approve. Steve called the vote and the minutes were unanimously approved as written. II. Old Business A. "Purchase-to-Pay" Project Discussion, Assignments and Timelines — Steve Harrison - Steve advised the reason this project was taken into consideration was that the purchasing policies covering procurement are being revised. Len Price, Administrator of Administrative Services, now has a "drafty, draft" prepared. Steve advised, going back to Vlad's earlier question, there are three segments to this; P-Cards, contracts under $50,000 which are not necessarily board-approved, and over $50,000 contracts where 70% of dollars are in contracts. This is why Steve suggested checking out contracts and improved processes that may be recommended. There are 20 high-level policy statements purchasing will be asking the BCC to approve. Len plans to present the draft ordinance to the BCC July 24 and ask for authorization to advertise it. Len is going to ask the Board to adopt policy and ask the County Manager to implement the procedures. Vlad asked when new policies are authorized or approved by the Board, will the 28-page document he received, be amended. Len advised already been done. They will be policy statements rather than procedures. There are not a lot of major changes. It is more clarification of the policy and procedures. This focuses on the procurement side of things up to a purchase order being cut. Page 2 3 DRAFT 7.31.12 Steve asked Crystal Kinzel, Finance Director in the Clerk's Office, if there were similar policies established on the payment side. She advised they follow Florida Statutes. A slide presentation was then given by Len and Joanne showing the 20-high level policy statements they will be taking to the Board. Gina asked if the policy had been changed where a bid comes in and is awarded and then there are changes upon changes made. Joanne advised policy has not been changed but clarification has been made on how this is handled. Vlad said the current policy on changes reads 10% or $10,000, whichever is greater. It was agreed that is a pretty stringent control. Vlad asked if that was being changed. Joanne advised they are asking for 10% of current contract without $10,000 cap. Joanne advised 4'/2 pages will replace 28 pages of policy. Then another layer will be created by the County Manager wherein he will create purchasing procedures from the 28 pages. Commissioner Coletta wants to make sure the Clerk's Office agrees with the policy before the Commissioners are asked to approve this so that no problems arise at a later date. Joanne said this had been submitted to the Clerk's Office late last week. Crystal Kinzel, Finance Director in the Clerk's Office advised they have not had a chance to completely review yet, but they are reviewing and will make suggestions, if necessary. Steve asked to come back to the threshold again. The Committee wants to ask questions about what the current process costs the County. We could have a donut hole kind of situation here on projects that are $50,000 to $100,000 where we spend a huge amount internally soliciting bids, screening bids, doing the proposal, etc. Commissioner Coletta said in other words, how much is redundancy and how much is required by State Statute? Steve asked what we might do to the process to make it less expensive in order to get the $50,000 to $100,000 contract done. One option would be to raise the threshold but need to look at the process beneath it. County has a lot of annual contracts. Vlad asked what the threshold is for annual contracts? Joanne advised they are requesting a $200,000 threshold for annual contracts and above that it will need to go to the Board. Winona interjected that she checked her records and found that the 76 page document and 28 page document were sent to all committee members via their personal e-mail addresses on the 22"d of June. She asked if they wanted resent. It was agreed that would not be necessary. Vlad stated he didn't see a policy for monetary threshold on Waiver of Irregularities. Joanne advised there is. All purchasing thresholds are interchangeable in all 20 policies. Discussion was held regarding the Local Vendor Preference policy and problems some local vendors are having where one year they were accepted and the following year Page 3 1/ DRAFT 7.31.12 policy had changed and they weren't accepted. Joanne said to keep in mind county is using a lot of grants and there are more restrictions on a project where a grant is being used. There was some discussion regarding people lobbying for contracts. If an employee is involved, there is a policy outlining penalties for that. Commissioner Coletta said Commissioners can listen to constituents, but they cannot make any recommendations to staff under stiff penalties. Lobbyists have to register with the Clerk's Office before they can present at a BCC meeting. The Chair has a list of all paid lobbyists. Steve asked that a copy of a solicitation contract be sent to all of the committee members. Len plans to take the policies to the BCC for final hearing at their September 25 meeting. She suggests that during Public Comment the Productivity Committee make their comments. Vlad stated that the underlying theme for the project pursued by the committee essentially is cost improvements. One of the things pertinent in terms of cost improvement is other than the cost of doing business by personnel costs, we need to take a look at how we secure cost effectiveness of securing business. What can Collier County do? Millions of dollars are expended. How do we put together contracts to become more competitive, how do we manage contracts for the community, etc.? There needs to be much more due diligence by staff in order to save dollars. Tom stated there are two sides to this process. One is cost invested by staff; the other costs that we pay for work. Is our purpose one or the other, or both, to look at savings in the purchasing process or to look at savings in what we pay for services? It was agreed that the committee is to look at both. Vlad said he had received a list of contracts from Purchasing and had reviewed and highlighted projects he thought the Committee would be interested in working on. Joe Wall suggested project selection criteria as follows: (1) size; (2) current financing involved; (3) size of department; (4) amendments? After review and discussion by the Committee, the following contracts were agreed upon: (1) Emergency Operations Center(Emergency Management) (2) N. Collier Regional Park(subject to availability of records)—(Parks Department) (3) 10-5498 Marco Island Executive Airport Parallel Taxiway and Apron Expansion - $5.99M project using grants (Airport Authority) (4) 10-5342 Davis Blvd. (SR84) and 175 Roadway Improvements - $28M project with FDOT—(GMD, Transportation Engineering & Construction Mgmt. Dept.) (5) 08-5018 — Vanderbilt Drive Pedestrian Bridge - $67,676 with DEP permitting — (GMD, Transportation Engineering & Construction Mgmt. Dept.) (6) 10-5441 —Isles of Capri Water Main Replacement(Public Utilities, Water Dept.) (7) 10-5555 — Isles of Capri Water Main Replacement Phase II (Public Utilities, Water Dept.) Page 4 DRAFT 7.31.12 (8) 08-5009 — Enterprise Content Management Software Solution - $513,000 project (RFP) (IT Department) (9) 09-5262 — Countywide Engineering Services (RFP) — $23.2M - This involves several projects. Joanne will select one. The Chairman asked Joanne to prepare a spreadsheet showing the start and finish date of the project, project manager, financial information, whether it has grants, permits, etc. Joanne stated she will prepare a disc showing each project and all information regarding the project. Len suggested looking at old projects. Need to keep in mind new procedures to see if there are problems and how we could improve. Look at process making sure there is no confusion in what policy says and what we think it means or what others think it means. The Chairman referred members to pages 11 and 12 of the agenda packet. He had prepared a closed contract review template for members to consider. Four areas are: (1) Prepare Project Timeline, (2) Project Management Questions, (3) Purchasing Department Questions, and (4) Finance Department Questions. Staff reviewed each item suggesting this template be used in reviewing contracts. III. New Business A. Appointment of Vice Chair—Deferred to next meeting when more members present. B. Inquiry from Cheryl Pavlick regarding 2012 projects Winona advised Cheryl had e-mailed her asking if the Purchase-to-Pay project and FY 13 and FY 14 budget reviews are the only projects the committee would be working on this year. Steve told Winona to let Cheryl know these are the current projects and the budget reviews would include staff ratios and benefits studies, etc. Other projects could also be added by the Committee. IV. Committee Member/Staff Comments Gina stated, as she has in the past, that 11 people on a committee is too many. She proposes asking the Board to consider reducing membership to 9, maybe 7, but start with 9. It would be a change to the Ordinance and BCC would need to approve. Committee members suggest holding for now until there is good sized working group. Due to the large amount of information to be received from Joanne for the committee members' review prior to the next meeting, Vlad Ryziw made a motion to cancel the scheduled July 18, 2012 meeting. Seconded by Gina Downs, and unanimously approved. It was unanimously agreed that the committee would meet Thursday, August 2, 2012, 2:00 p.m. V. Public Comment—No public comment. Page 5 DRAFT 7.31.12 VI. Adjourn — Gina Downs motioned to adjourn the meeting; seconded by Tom Lykos, carried unanimously. There being no further business for the good of the County, the meeting was adjourned by Order of the Chair at 1:40 p.m. COLLIER COUNTY PRODUCTIVITY COMMITTEE Chairman, Steve Harrison These Minutes were approved by the Board/Committee on , as presented or as amended Page 6 7