LC Facilities Ad Hoc Committee
Meeting: Friday, September 11, 2009, 9:15 AM in the Lower Meeting Room of Town
Hall South
Present: LC Members – Dan Amaral, Jan Brookes, Pat Llodra, Paul Lundquist
BoF Member – Jim Gaston
Invited Guest – LeReine Frampton
Town Finance Director - Robert Tait
Two members of the public
Absent: Robert Merola
Public Comments
Po Murry, 38 Charter Ridge Drive, stated that Public Works Department in-kind services have not been tracked. The Selectmen have made Fairfield Hills Authority work a priority without being willing to track that work. Voters deserve to know how much was spent at FFHs. Mrs. Murray said, “Let the voters know what’s happening with their money.”
Costs and Benefits of a Town-wide Purchasing Agent
Paul Lundquist began the committee’s interview with Robert Tait by stating that the committee understood that he was a proponent of a town-wide purchasing agent. Mr. Lundquist asked Mr. Tait to discuss its advantages and disadvantages.
Mr. Tait held up a book by the Government Finance Association Officers entitled, Local Government Finance. He handed out copies of Chapter 17 of the book, “Purchasing.” In addition, Mr. Tait gave each committee member a one page description of how the MUNIS software allows purchase orders to be flexible and easy to use, and helps control costs. He also gave committee members an article by Dennis Whetstone called, “Centralized Purchasing: An Important Cost-Cutter for Municipalities.” He urged committee members to read these.
Mr. Tait said that the town of Fairfield, Connecticut, has a budget that is approximately two and a half times larger than that of Newtown, and employs three people in its purchasing department. He stated that right now Newtown has a decentralized purchasing system with each department handling its own.
Mr. Tait explained that purchasing has three components - planning and scheduling, vendor selection, and contract administration. He stated that MUNIS is a large government software program that the town of Newtown has purchased and is using. That means that the town has the infrastructure to perform all three purchasing functions today. However, at present, tracking is done by project and records are kept on large spreadsheets. When the move to the new municipal office building is complete, department heads and workers will be trained in the use of MUNIS, and they will be able use it for purchasing.
Paul Lundquist noted that using MUNIS software will create greater labor efficiency.
Pat Llodra said that in speaking with Ridgefield’s Purchasing Agent, she learned that the cost of the position has paid for itself. However, the view of some Newtown department heads is that they will lose autonomy.
Jim Gaston asked if the town will be able to quantify the savings?
Mr. Tait replied that it would be hard to do.
Pat Llodra commented that orders will be linked to a central inventory with triggers to reorder “just in time.”
Mr. Tait described a system called P card that operates with a purchasing card for quick purchases that are automatically recorded onto the Finance Director’s system.
Mr. Lundquist said that a purchasing agent needs to allow departments to order for their specific needs. An obvious example was the BoE’s need to order textbooks.
In her role as Registrar of Voters, LeReine Frampton commented that she was shocked by how much she was able to save on everyday items by joining in the state bidding program.
Pat Llodra said that, while Registrar of Voters had been able to save by going through the state purchasing system, the committee has learned that the state doesn’t always offer the best prices.
Bob Tait observed that some department heads are better than others at writing bids and contract specs. A purchasing agent would upgrade and standardize this process. He added that the town has always advertised bids by using news ads. However this may not be the best way to get the lowest prices or best product.
Board of Education
Mr. Tait said that the BoE doesn’t use their automated purchasing system; however, the BoE Interim Finance Director will start automating purchase orders (at one school) soon.
Mr. Gaston asked if the BoE was on board with a purchasing agent.
Mr. Tait replied that he didn’t know. However, the town of Fairfield and the city of West Haven municipal and Board of Education use MUNIS, although there is a different data base for each. Currently, the BoE is using the Phoenix Program, a very different one from MUNIS. Mr. Tait commented that the BoE hasn’t done its purchasing through Phoenix, nor has it used all of the Phoenix functions, although the BoE interim business manager wants to step up the level of use. Mr. Tait said that BoE could also use the MUNIS system and be part of bidding for common items. Both the town and school sides would have separate purchasing agents. Money for training of personnel in the use of MUNIS would have to be appropriated
Jim Gaston commented that although MUNIS is a better system, people don’t like moving to a different system.
Bob Tait said that transferring the accounting system to MUNIS could be done easily.
Mr. Gaston said that if the BoE switches to MUNIS, there will be a cost in doing so for the BoE.
Policies and Procedures
Mr. Tait stated that it is the job of a purchasing agent to get the lowest price and best quality. To accomplish this goal the purchasing agent must cooperate with all town department heads. Purchasing in bulk will enable the town to take advantage of discounts and coupons.
Mr. Gaston stated that the town would have to create policies and procedures for purchasing.
Mr. Tait replied that there are purchasing policies and procedures manuals on the internet that Newtown might use as models.
Pat Llodra remarked that in speaking with Ridgefield’s Purchasing Agent, departments lost autonomy, and we need to be careful to prevent that from happening in Newtown.
Bob Tait stated that if the Town started using commodity codes, we would have more information on vendors.
Jim Gaston observed that the role of a purchasing agent will be to work with departments to get the best deals. The agent will be able to flag purchases of similar items in several departments.
Bob Tait stated that with decentralized purchasing, costs are hard to control. His job is to make sure department heads follow the charter; that could be a fulltime job.
Pat Llodra said that Ridgefield has a three-fifths purchasing agent. In their system, some products are manually purchased, although most are not. The schools purchase separately.
Bob Tait observed that there are numerous benefits to collaboration. In Newtown, the town doesn’t pay professionals to write specs. In one instance, when his Finance Department wrote the specs for a project, two companies sued. The problem was solved by borrowing specs from the BoE.
LeReine Frampton commented that insurance for school busses is a big expense, and that a purchasing agent could shop for the best deal.
Dan Amaral suggested that a purchasing agent could also save the town money with contracted services.
Bob Tait said that there are advantages to area towns to cooperate and coordinate their purchases. A regionalization of purchasing will allow Newtown to qualify for state grants.
Mr. Lundquist stated that the committee had concluded its interview with Mr. Tait, and asked if any voters wished to comment.
Voter Participation
Bruce Walczak, 12 Glover Avenue, said that when there is a larger sourcing process, departments lose autonomy and control, and with that comes a loss of ownership. Town departments heads can claim that it’s ‘not my fault.’ There needs to be a system of evaluation that is less anecdotal and more statistical. There is a difference between collaborative sourcing and a purchasing agent. The town can join collaborative sourcing, but should not create a system that removes ownership from departments.
Bob Tait commented that communication is essential for success. Departments will still be allowed to purchase specialized items.
Mr. Walczak suggested that the town might outsource to the BoE.
Next Steps
Pat Llodra said that both she and Mr. Lundquist are in the process of getting answers to the committee’s questions from Gino Faiella and Fred Hurley. When that is complete, the co-chairs would like the committee to reconvene to discuss what we know, where we want to go, and what we’ll recommend to the Council.
A discussion followed about when the committee would present its recommendations to the Council.
Both Mr. Lundquist and Mrs. Brookes felt that the committee should make its report after the election.
Mrs. Llodra stated that the present Council “owns this committee,” and deserves its report.
LeReine Frampton asked, “If no one on the committee is re-elected, will we have authority?’ She suggested that the committee present its recommendations after the election and before the new council takes office.
Jim Gaston said that the committee should present its recommendations when its work is completed. He suggested that the committee present twice – to the present Council and to the one that takes office at the beginning of December.
Mrs. Llodra said that the committee needs significant discussion on its recommended action steps.
Mr. Lundquist added that the committee should be to be thoughtful, and not rush the work. He stated, “Let the work speak for itself.”
Mr. Gaston concurred. “Be true to the work. This committee has been discussing constructive improvements for the town, and this work shouldn’t be politicized”
Mrs. Frampton said, “I was hopeful that some of these recommendations would save the town money in next years’s budget. That budget will be tougher to pass than this year’s. If we can establish cost saving measures, it might help people to see that elected officials care,” and are trying to help them through a difficult financial time.
Jim Gaston said that some proposals involve technology and training, and those will take a longer time to implement.
Paul Lundquist commented that the open discussion the committee has had with department heads has revealed cooperation among them that has been below the political radar.
LeReine Frampton suggested that the committee ask The Bee to do a story about the new work order tracking system that will be in place after the municipal office building is opened.
Pat Llodra said that that the town is doing a lot well. “Bob Tait and Scott Sharlow were already poised to go forward before we talked to them. Our conversation (with them) has supported them, and gives what they’re doing value.” The town has an opportunity to use technology better and to provide the public with a lens on what some department heads are doing. This committee has recognized a culture of collaboration and given it value. Fred Hurley has told us that if PWD didn’t have to spend so many man-hours on purchasing, he could release his people to do their work.
The committee agreed that its next meeting would be on Wednesday, September 30th at 8:15 AM. The co-chairs will find a meeting place and post an agenda.
Jan Brookes for the Committee
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