Finance committee approves purchasing agenda; members flag outside legal costs and food-service deficit

The Grand Rapids Public Schools Finance Committee approved the district’s purchasing agenda Monday and reviewed proposed adjustments to several blanket purchase orders, including copier leases, outside legal services, HVAC and plumbing repairs and bond-project commissioning services.

Committee members were told the district has spent more on outside legal counsel this year after turnover in the legal department and several investigations. District staff also flagged a deficit in the food-service fund that will require a transfer from the general fund of “a little over a million dollars,” and discussed procurement rules, thresholds and bid procedures.

The vote to approve the purchasing agenda passed on a voice vote after a motion and a second were made; the transcript records only verbal assent (“Aye”) with no roll-call tally.

Committee chair remarks and purchasing staff presentation During a brief public-comment segment the meeting moved into the purchasing agenda. Purchasing staff described the requested adjustments as routine amendments tied to year-to-date spending and unanticipated costs. Staff listed items included for approval or adjustment: copier and printer maintenance and lease agreements; two increases for outside legal services tied to recent investigations and interim staffing; additional funds for HVAC, plumbing and hydronic piping repairs; an expansion of online programming for the Grand Rapids Academic Summer (GRAS) program for grades 4–8; an increase to the Harrison Park Health Clinic contract to address unforeseen structural issues; office and student-lounge furniture for the Southeast Career Pathways renovation at the 6B building; multiple bond-project items for summer work at Chavez, Kent Hills and Dickinson; commissioning services for Aberdeen, Kenashe and Riverside; moving services tied to school relocations; and an asbestos-abatement item for Riverside Middle.

Staff explained the legal-services increases stem from both turnover in the in-house legal team and from outside investigations that required specialized counsel. A committee member asked whether the district would need ongoing outside counsel; staff replied the district has historically used outside counsel for higher‑level matters and that the in-house vacancy is being actively recruited.

Food-service fund shortfall Finance staff highlighted the food-service fund as an area of concern. Reimbursement rates for school meals, staff said, are not covering rising costs (largest drivers cited were salaries, benefits and food costs). The presentation noted the district is budgeting for a transfer from the general fund “a little over a million dollars” to cover the shortfall and will address the issue in Amendment 2 to the budget.

Procurement policy, thresholds and practices Diane Liggins, director of purchasing, gave an overview of procurement processes and policy. Key points included: purchases under $10,000 generally begin as a purchase requisition submitted by a building principal; the district asks for quotes as a best practice even when not statutorily required; the district’s internal thresholds require three quotes for many mid-range purchases and board approval for amounts above the district’s set threshold tied to state bid limits; services and construction bids must be publicly posted (construction bids posted on SGMA), and the district posts solicitations on the GRPS website. Liggins said, “Lowest price is not always the best price,” and described factors the district weights in evaluations such as performance, service quality, delivery, responsiveness and references.

Staffing and blanket orders Liggins said the purchasing office is “running very lean” with three staff members (director, one buyer and an administrative staffer). She explained blanket orders are used for recurring district expenses (legal fees, copiers, translation services) and that the district returns to the board to raise a blanket order if spend exceeds the authorized amount. A committee member asked about services that start before board approval; staff said services should not begin before board approval and that when that happens the district pauses to catch up and bring the item back through the proper channels.

Action and next steps A motion to approve the purchasing agenda was made and seconded and passed on a voice vote. Committee members were told Amendment 2 will include adjustments tied to the items discussed, and staff said they will continue recruiting for the in‑house counsel vacancy. Finance staff said they will continue monitoring the food-service fund and refine budget amendments accordingly.

Ending Committee members moved on to reports after the vote; no additional formal actions were recorded in the transcript.