A proposal that Mayor Donna Deegan’s administration says is designed to strengthen transparency and oversight in city funding for nonprofit organizations is on its way to the Jacksonville City Council.
On March 24, the Mayor’s Budget Review Committee approved the introduction of legislation that would modify a city code that allows funds to be provided to nonprofits through direct contracts versus a competitive bidding process.
The city allows waivers of the bidding process under some circumstances.
The legislation, which Deegan plans to discuss at 11 a.m. March 25 at a news conference, would allow waivers but would require an explanation of the necessity of the direct contract and an affidavit disclosing family and business connections among elected officials to a nonprofit receiving funding without a bidding process.
If a connection is listed, the city would be required to post a notice on its website for at least two weeks saying that it would accept other proposals for the same project or service.
Any proposals received would then be reviewed by Council.
In addition, any waiver of the competitive bidding requirements would require a two-thirds vote of Council members.
The disclosure of family and business connections would apply to Council members, the mayor, their spouses and children. It would require a disclosure of whether those individuals are or are not employed by the nonprofit or serve on its board.
Joe Inderhees, Deegan’s deputy chief of staff, said waivers would still be allowable for contracts with nonprofits that provide the only services of their type. Asked for an example, he said that if an administrator of the Jacksonville Symphony were elected to the City Council, the city could still enter a direct contract with the symphony because it’s the only one in the community.
Inderhees told MBRC members that the city’s chief of procurement, Dustin Freeman, approved of the plan.
“When in doubt, bid it out is his motto,” Inderhees said.
Phil Perry, chief communications officer for the city, said in an email that the legislation was not in response to a specific situation involving a direct contract.
“As we work to increase transparency in city government, we are identifying areas where the system can be strengthened,” he said.
“This bill is preventative legislation that proactively addresses a weak spot ahead of time, so we’re not reacting in the future.”
In 2021, Council approved legislation to steer city grant funding through competitive evaluations and add reporting requirements for Council members, their spouses and children who work for nonprofit entities receiving financial assistance from the city.