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Board approves vendor actions: local FSA administrator, rejects copier RFP and authorizes contingent TRAN
Summary
The board authorized a flexible spending account administrator (local firm DeHaye McAndrew), voted to reject copier/print-service RFP proposals per solicitor recommendation, and approved a contingent $32.8M tax-revenue anticipation note to be used only if disbursement by the comptroller makes it necessary.
The Scranton School District board on Nov. 12 approved multiple vendor and cash-management actions recommended by administration and the vendor relations committee.
Flexible spending accounts: After reviewing two vendor models — a local firm (DeHaye McAndrew) with an estimated administrative fee of about $17,100 per year (based on ~1,250 eligible employees) and American Fidelity offering no direct fee but offset by voluntary benefits — the board voted to name DeHaye McAndrew as the district’s FSA administrator. The motion passed by roll call, 8 in favor and 1 abstention (Miss Fox abstained, citing limited time to review materials).
Copier RFP: Attorney Fitzgerald, the district solicitor, told the board that because some proposers attempted to modify pricing after proposals were opened, the solicitor’s recommendation was to close the current RFP by rejecting all proposals and then negotiate directly with vendors if appropriate. "Our recommendation here, that we first end that RFP by rejecting all the proposals, before attempting to negotiate with any vendor," Fitzgerald said. The board moved to reject all proposals to the district RFP for copier/print services; the motion passed 8 affirmative, 1 negative.
Tax-revenue anticipation note (TRAN): The administration presented a TRAN of up to $32.8 million with Fidelity Bank at a proposed 3.5% interest rate as short-term liquidity planning while the district awaited state subsidy disbursement. Board members expressed concern about origination fees and timing; the solicitor proposed contingent language to limit borrowing to cases where the TRAN "remains necessary after disbursement by the comptroller." The board approved the TRAN with that contingency by roll call (9 affirmative). The solicitor and administration noted origination and legal fees could be avoided if the borrowing proves unnecessary.
Next steps: Administration and the solicitor will finalize paperwork for the TRAN if necessary, post budget materials for public review, and proceed with negotiations or a new procurement approach for copier services after formally rejecting the current proposals.
