In Orange, Ohio, the finance department is undertaking measures to refine its contract management protocols following a recent oversight. On February 12, Village Treasurer Dana Kavander highlighted the need for these improvements after it was discovered that a significant contract had been ratified by the Village Council without proper review and approval processes. The contract in question involved the purchase of license plate reader (LPR) cameras from Flock Group Inc., which raised concerns about procedural adherence and communication within the administrative structure. This incident has prompted a thorough reevaluation of existing practices to prevent similar issues in the future.
The core issue revolves around a five-year agreement with Flock Group Inc. signed by former Mayor Kathy Mulcahy in December 2023. This contract, effective from January 2024 through 2028, entailed the acquisition of LPR cameras and associated services for the local police department at an annual cost not exceeding $22,500. However, due to a one-time discount, the initial payment for 2024 was reduced to $13,000, leading to an oversight in the approval process. The contract was executed under the impression that it did not require council approval since the first-year expenditure fell below the $15,000 threshold mandated by village ordinance.
Kavander emphasized that the contract had undergone legal scrutiny but bypassed essential administrative checks. It was only during the processing of subsequent payments that discrepancies were identified. Anna Girardi, the executive assistant to the mayor, who typically oversees such matters, was unaware of the contract's existence until it came to light. This lack of awareness underscored a gap in the internal communication channels, prompting immediate action to rectify the situation.
To address these shortcomings, the finance department has initiated several reforms. A memo has been circulated to all department heads outlining new procedures for contract management. These changes include mandatory submission of contracts to both the law director and the mayor’s office for tracking and ensuring appropriate approvals. Additionally, the finance department will introduce a flowchart detailing purchasing, contract maintenance, and payment processing protocols. These steps aim to create a more transparent and efficient system, thereby minimizing the risk of oversight.
Mayor Judson Kline also acknowledged the importance of strengthening approval processes. He introduced a hierarchical review system where requests for payment must pass through multiple layers of approval, starting from the department head and culminating with his final endorsement. This multi-tiered approach ensures that all transactions are thoroughly vetted and align with budgetary constraints.
Beyond the focus on contract management, the village has made other notable decisions. The council awarded a bid for the 2025 asphalt road repair program to Ronyak Paving, selected based on favorable past performance. Furthermore, a new dump truck chassis was approved for purchase, part of a broader infrastructure plan aimed at replacing older equipment. These actions reflect the village's commitment to maintaining essential services while addressing administrative challenges.