HomeMy WebLinkAboutAgenda - 04-06-2010 - 7f 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: April 0, 2010
Action Agenda
Item No. "mm7 .000 :E
SUBJECT: Adjusting the Limits on the Managers Contracting Authority
DEPARTMENT: County Attorney PUBLIC HEARING: (YIN) No
ATTACHMENT(S): INFORMATION CONTACT:
(A) Memorandum
(B) Ordinance Amending the Budget John Roberts, 245-2318
Ordinance
PURPOSE: To provide the Board of County Commissioners with information regarding the
contracting authority of county managers in various North Carolina counties in order to compare
that information to Orange County and, if appropriate, adjust the Manager's contracting
authority.
BACKGROUND: Upon the formation of the in-house County Attorney's office, the County
Commissioners instructed the Attorney to improve efficiency in the contract routing process.
One of the Attorney's initial suggestions was to increase the monetary limits on the Manager's
contracting authority. The County Commissioners, through the Budget Ordinance, increased
the Manager's contracting authority from $5,000 to $25,000 for any type of contract with the
exception of Board consultants and instructed the Attorney the $25,000 limit should remain in
effect until the yet to be hired Manager's employment probationary period expired. The new
County Manager's probationary period has now expired. Should the Board of Commissioners
choose to adjust the Manager's contracting authority, it may do so now through a Budget
Ordinance Amendment or it may address the matter in the FY 2010-11 Budget Ordinance.
FINANCIAL IMPACT: None
RECOMMENDATION(S): The Attorney recommends the County Commissioners review the
attached information and consider amending the FY 2009-10 Budget Ordinance to adjust the
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Manager's contracting authority to allow the Manager to sign all contracts up to the North
Carolina Statutory bid limits with the exception of Board consultant contracts.
ORANGE COUNTY
P.O. BOX 8151
Office of the County � ; r
200 S. CAMERON STREET ,r
Attorney
HILLSBOROUGH,NC 27278
To: orange County Commissioners
Valerie P. Foushee, Chair
Bernadette Pelissier, Vice Chair
Alice M. Gordon
Pam Hemminger
Barry Jacobs
Mike Nelson
Steve Yuhasz
From: John Roberts
Date: February 26, 2010
Re: Manager's Contracting Authority
Prior to the employ of the current county manager the County Commissioners indicated to me that
the monetary limits on the manager's contracting authority, being up to $25,000.00 for all contracts
except Board Consultants, should remain in effect during the probationary period of whomever the
County Commissioners hired as the county manager. I was further directed that the manager's
authority to sign contracts should be brought back before the County Commissioners for discussion
when the new manager's probationary employment period expired.
The reasoning behind a recommendation that the county manager have greater authority to sign
contracts is primarily for increased efficiency. The County Commissioners have requested that I
implement changes to orange County's contract review process to improve efficiency. To
accomplish that task I have developed a contract routing sheet to accompany all contracts and a
contract routing process through which contracts are submitted for signature and review in a
predetermined order. I have also drafted contract form templates for various types of contracts,
which allow departments to fill in dates, amounts and other information, while leaving the general
terms protected from alteration by vendors. The final method that may be employed to improve
efficiency in the contract routing process is to increase the signature authority of the manager.
I have requested and received several responses regarding the signature authority of county managers
in various counties as it relates to the dollar amount of contracts. Additionally, the Finance
Department conducted some research on this issue. The results are as follows:
Cabarrus County Manager may sign contracts with a dollar value up to $90,000.
Durham County Manager may sign contracts for services with a dollar value up to $90,000 and
contracts for goods with a dollar value up to $40,000.
Page 2 of 2
Gaston County Manager may sign any contract up to the statutory bid limits and any amount on
general services contracts-but the County Attorney may exercise an option to request Board approval
on any contract deemed controversial or too expensive.*
Iredell County Manager may sign contracts with a dollar value up to $90,000.
Mecklenburg County Manager may sign contracts up to the statutory bid limits and any amount on
general services contracts.*
Onslow County Manager may sign contracts with a dollar value of up to $100,000 for goods and
$90,000 for services.
Pitt County Manager may sign all contracts with a dollar value up to $75,000.
Stanly County Manager may sign all contracts up to the statutory bid limits and any amount on
general services contracts.*
Union County Manager may sign all contracts with a dollar value up to $90,000.
* Statutory bid limits are $90,000 for goods, apparatus and materials and$500,000 for construction.
Another consideration in adjusting the manager's contracting authority is the expediency with which
contracts may be approved and signed. For example, under the current system if a $70,000 contract
needing approval and signature came into the approval process in late June it would be mid August
before the contract could be reviewed and approved for signature by the County Commissioners.
CONCLUSION
The above information is for your consideration. In my opinion increasing the manager's contracting
authority would improve the efficiency of the contract routing process and would more often ensure
the county has contractual protection in an expedient manner. Should you wish to address this matter
please let me know and I will request that it be placed on an agenda for your discussion.
oRD - o 0 It)- 031 4
AN ORDINANCE AMENDING
THE ORANGE COUNTY FISCAL YEAR 2009-10 BUDGET
ORDINANCE
WHEREAS, the Board of County Commissioners have requested the County
Attorney evaluate the County's contract routing process for deficiencies in efficiency,
and
WHEREAS, the County Attorney has implemented numerous changes to the
process, which have resulted in improved efficiency, and
WHEREAS, the County Attorney has identified the minimal nature of the County
Manager's authority to sign contracts as an area wherein efficiency could be improved
by increasing the financial limits of the Manager's authority, and
WHEREAS, the proposed amendment establishes a standard whereby the
efficiency of the County's contract routing process may be improved.
BE IT ORDAINED BY THE BOARD OF COMMISSIONERS OF ORANGE
COUNTY, NORTH CAROLINA, to hereby amend the Orange County Fiscal Year 2009-
10 Budget Ordinance by adding (indicated by underlined language) and deleting
(indicated by stricken through language)as follows:
That Section XII be amended as follows:
The County Manager is hereby authorized to execute contractual documents
under the following conditions:
1) The Manager may execute contracts for construction or repair projects
which do not require formal competitive bid procedures and for which the
amount to be expended does not exceed 499 999. _ ___..__._...__--- oeleted:2s,000 )
2) The Manager may execute contracts for general and/or professional
services which are within budgeted departmental appropriations, for
purchases of apparatus supplies and materials or equipment which are
within the budgeted departmental appropriations, and for leases of personal
property for a duration of one year or less and within budgeted departmental
appropriations for which the amount to be expended does not exceed- � _...--- �i�a:25 000
89,999.
3} The Board of Commissioners reserves solely unto itself the authority tom--- ' Formatted:Bullets and Numbering
approve and execute contracts with Board Consultants.
5
4�_Contracts executed by the Manager shall be pre-audited b the Finance--------f Formau:ed:Bullets and Numbering
umbering
Officer and reviewed by the County Attorney to ensure compliance in form
and sufficiency.with North Carolina law.
Upon motion of Commissioner seconded by
Commissioner , the foregoing Fiscal Year 2009-
10 Budget ordinance amendments were adopted this the day of
2010 and shall become effective upon adoption.
Donna Baker,Clerk
Orange County Board of Commissioners