Finance Committee Minutes

VILLAGE OF NORTH AURORA
FINANCE COMMITTEE MEETING
FEBRUARY 10, 2014

CALL TO ORDER – 5:45 PM
Trustee Curtis called the meeting to order.

ROLL CALL
In attendance: Trustee Laura Curtis, Trustee Chris Faber, Village Administrator Steve Bosco, Finance Director Bill Hannah, Village Clark Lori Murray. Not in attendance: Trustee Mike Lowery.

AUDIENCE COMMENTS - None

APPROVAL OF MINUTES
1. Approval of the Finance Committee Minutes dated 1/13/2014
Motion for approval made by Trustee Faber and seconded by Trustee Curtis. All in favor. Motion approved.

NEW BUSINESS
1. Discussion of the Update of the Finance Policies and Procedures
Finance Director Bill Hannah noted some of the major changes to the updated Finance Policies and Procedures regarding Purchasing and Accounts Payable. Hannah indicated that many of the provisions in the new policy are new and didn’t previously exist or update outdated policies:

Adopts comprehensive ethics and conflicts of interest sections in regards to vendor
solicitations, gift acceptance and other details over and above the adoption of the State
Act governing those activities.

Revises purchasing approval levels as follows
- Department Heads: Up to $5,000 (Previously Up to $1,000).
- Village Administrator: $5,000 to $10,000 (Previously $1,000 to $5,000).
- Village Board $10,000 and Over (Previously $5,000).

Sets the requirement for bidding of applicable public works, public improvement projects and supplies at $20,000 or higher

Clarifies conditions upon which the Village Administrator may purchase due to an emergency condition and subsequent notification to the Board.

Clarifies options and process for purchasing from State contracts or other cooperative purchasing arrangements.

Updates applicable bidding procedures
Establishes change order approval for Village Administrator to be same level as normal purchasing authority of $10,000 and all change orders over $10,000 require Board approval

Provides clarification to Department Heads on procurement of service contracts and the procurement of professional services and the Request for Proposal (RFP) process.

Incorporates other sections regarding Purchasing Cards, Disposal of Surplus Property, Prevailing Wage and other sections where such policies previously did not exist.

Revises and adopts current accounts payable policies governing invoice approval, regular bill
listing, interim bill listingd and other procedures.

Trustee Curtis suggested limiting concurrent no-bidding for contract extensions so that the Village does not avoid the bid process. Hannah noted that this would be a decision that is up to the Village Board on a case by case basis based on a recommendation from staff. Trustee Faber said that the policy is in place. The Village Board elects whether or not to go to bid.

Curtis said she would like to see historical data before going to bid. Curtis asked why the Village has a 5-year contract for snow plowing and asked what the standard term is. Bosco said that the Board ultimately decides whether or not to waive bidding. Curtis asked that more information be provided to the Board ahead of time before making that decision. Mayor Berman agreed that it would be good to have a history of the contract prices.

Hannah said he would bring a resolution and an ordinance to the Board. This will be presented under New Business at the next Village Board meeting.

OLD BUSINESS - None

ADJOURNMENT
Motion to adjourn made by Trustee Faber and seconded by Trustee Curtis. All in favor. Motion approved.

Respectfully Submitted,

Lori J. Murray
Village Clerk