No Bid and Weak Contracts - why did I talk about them in my Flyer?

No bid and weak contracts have been a major issue the City has had to deal with all year long.  I'm pragmatic enough to accept that often it can be cheaper and more efficient to not go out to bid on some contracts and services.  However, I expect that if this is the way we are going to do things then we should have good, written documentary evidence that we've done our homework on making sure to get the residents a good deal.  I've been trying all year long to get Council to improve our contracting process and pointed out some of my frustrations in a Flyer I distributed a couple weeks back.  Council thinks I should turn my back on those efforts.  Here is why I think that is unlikely. 
 
When we left the Administration Committee meeting on Dec 3rd we were on track to awarding another no-bid contract with no intention of even looking at other companies that offer the same service.  Keep in mind that during the next Administration Committee meeting two weeks later, when Council and the City Manager were trying to say that my flyer was wrong, the City Manager didn't say that we were actually going to go out to bid the contract.  He said he verbally explained why he felt we didn't need to go out to bid.   
 
I don't know how many different ways I can say it but verbal explanations do not meet my standard for showing we are doing our best to maximize the value of our tax dollars.  First, I believe staff should expect and be prepared to go to bid for every significant service and contract.  In those instances when it may be beneficial to not go out to bid, pointing to the fact that the other members of council are satisfied with undocumented and unverifiable verbal statements isn't going to keep me from advocating for detailed reports that include quotes from multiple providers with cost comparisons and value assessments.  Staff should provide these reports prior to the committee meeting this will be discussed.  That way I can read ahead of time and formulate questions.  They should then be prepared to answer questions on every aspect of the comparisons including questions about companies that provide the same service that don't show up in the reports. 
 
Back to the Flyer I distributed a couple Sundays ago.   I wrote, "Next month the City will award a $65,000 no-bid contract to the same corporation that we hired to operate the Music Center".   Council called this a lie because it's not next month yet.  I suppose if they can convince me that you are dumb enough to not know that its not next month yet I will apologies to you.  Otherwise, I'll assume you know its not next month yet.  Obviously, a major reason why I made the flyer was to try to make my prediction wrong and stop us from awarding a no-bid contract when we haven't even looked to see if some other qualified company could do it better and cheaper.  So yes, I hope the sentence proves to be wrong!  But I am a 100% confident that without this effort nothing of significance would be different than what I wrote. 
 
Do we have an Organizational Chart or an Operations Manual? No.  Are they required by the contract? Yes.  When?  Well the contract doesn't really say?  I guess if it turns out that we disagree with our Management company we will have to rely on the judges discretion to figure out what is reasonable.  But it doesn't help when the Chairman of the Administration Committee sets a date that doesn't make any sense.  He was recently quoted in the Courier as us needing these "prior to opening", leaving open the possibility these could be delivered just before the first show. Obviously, this isn't a stringent enough reading of the contract.  If we make this our expectation we lose much of the benefit of having these in the contract.  An organization chart helps us make sure our management company has dedicated qualified people to work for us.  It allows us to check resumes,  gives staff a point of contact to call to coordinate with and gives council warning if that person suddenly disappears.  At one meeting  we were introduced to a couple high ranking officials of the company and told that that introduction serves as our organizational chart.  What responsible representative would accept that?  Talking about the Operational Manual, would it really make sense to publish how we intend to do traffic control, set prices for concession, sell tickets etc a couple days or weeks before we open for our first show?  Both of these documents as well as others such as the Managements Company's submittal of an Annual Plan, Operating Budget and Capital Expenditures budget should already be in place and guiding us as we prepare to open in just a couple months.  
 
Keep in mind though that giving away hope in enforcing even the weak requirements found in our contracts is a hallmark of this Council.  I think they keep doing this hoping that this shows confidence that they didn't make a mistake in the original relationship.  Remember, it wasn't too long ago we had a contract with Good Sports that required them to start building prior to a set date.  When that date came and went instead of putting them on notice they needed to meet the date or even giving them extra time to meet the  date, this company was able to keep us in limbo for most of the year because City officials kept saying that by applying for building permits this company actually started construction.  This was a ridiculous and reckless statement when it was made and it cost us time and preparation when the company ended up not being able to come through with the project.  
 
In reaction to the flyer statement, "It wouldn't surprise me if next Council gets a recommendation for them to get another no bid contract to run the concession stands."  the Administration Committee Chairman is quoted in the Huber Heights Courier article as saying "That's in the contract.  They run the concession stands in the $225,000 contract."   This prompted me to go back and again read the contract.  If you look on page 5 of 7 of Exhibit A, you can find paragraph (d) of the Operational Duties.  The paragraph states that the management company's duties include:
 
 "Assist the City to procure, negotiate, execute, administer and assure compliance with vendor, concessions and merchandising agreements, user/rental agreements, booking commitments, licenses, and all other contracts or agreements required in the ordinary course of business in operating the Facility."
 
What does this paragraph say about how this company will manage concessions? It says; they will assist the City to procure concession agreements, they will assist the City to negotiate concession agreements, they will assist the City to execute concession agreements, they will assist the City to administer concession agreements and they will assist the City to assure compliance with concession agreements.  They do not run the concession stands in the $225,000 a year contract.
 
Interestingly though, if we read further in the document we will come to paragraph (j).  Paragraph (j)  states that the management company's duties include:
 
"Maintain detailed, accurate and complete financial and other records of all its activities under this Agreement in accordance with generally accepted accounting principles."
 
This is interesting because in the last Administration Committee meeting we were told that this company needed the new $65,000 contract so they could perform the "back room" accounting duties associated with running the Music Center.  Unlike with concessions where the company is suppose to assist in finding a company, the contract we already have with this company tells us they will do the accounting tasks as part of the $225,000 contract.
 
I don't know why these Council members insist on entering weak contracts or accept incomplete and unconvincing reasons for choosing companies for things as important as managing our facilities and projects.  I don't know why instead of expecting success from the companies we deal with, we continually tap into City revenues to make up for predictable situations and expenses.  I believe we can change this and as my Flyer proclaimed, I'm hoping you or your friends will step up to help make it happen.  But remember if you or someone you support plans on running for City Council the petitions must be filed with Montgomery County before Feb 4, 2015.  
 
 
Related Article:  Mayor Campaigns for School Board - and Wins
 
The flyer below was distributed to the Miami County residents of Huber Heights because the TIF district the city proposed affects them the most.  However, the issue and the need for council members that understand how the city affects the schools as well as a need to examine and be able to understand our contracts is a city wide need and I hope you participate.  Note: the flyer says the levy was passed in 2008.  It was actually passed in 2005. Miami County Flyer
 
Miami County Flyer

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