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Residents press for procurement reform and forensic review after Lynn Haven city hall overage
Summary
During a crowded budget workshop, residents and some commissioners urged a forensic review of purchasing and stronger procurement controls after dozens of change orders on the city hall rebuild; staff proposed hiring a procurement manager and returning with a revised purchasing policy and audit scopes.
Public commenters and several commissioners pressed Lynn Haven leaders on procurement practices and change orders during the July 18 budget workshop, asking for clearer controls after the city's rebuilt city hall exceeded original budgets and multiple direct purchases were recorded.
James Finch, a local contractor who spoke during the public-comment period, said he believed the rebuild overspent by approximately $4 million and criticized the city for occupying the building before a final certificate of occupancy. "You overspent $4,000,000 on this building," Finch said. "Y'all moved in this building on 10/10/23... you've been in this building illegally since 10/10... you don't get verbal COs."
Other speakers echoed concerns about the number and handling of change orders. In response, staff defended past documentation to auditors and said many change orders were deducts or direct purchases that reduced the contractor's contract amount and produced tax savings. City staff noted that auditors had been provided change orders and contracts and had confirmed compliance with the current purchasing policy.
To address procedural concerns, staff proposed a hiring and policy path. The budget includes a proposed procurement manager position (advertised for external candidates) to centralize bidding and contract administration; staff said the procurement manager would handle routine service contracts and the advertising of RFPs and ensure consistent application of procurement policies. "We are advertising for a procurement manager," Finance Presenter Kiki Roman said, and staff said a new procurement manual and updated purchasing policy are in development.
Staff also outlined audit resources. The finance department currently budgets $90,000 for the comprehensive annual audit and said that if the commission wants a separate forensic or procedural audit, the commission must specify the scope and identify what it wants the auditor to examine. "If we're going to do a separate audit, I'm going to need more money in here," Roman said, asking commissioners to define whether they want a procedural audit, a numbers audit, or a forensic review.
Public commenters asked for broader transparency measures as well, including an easier-to-find debt-service page on the city website and the installation of cameras in the commission chambers to record contentious meetings. Staff committed to researching outstanding items (including a clock change-order vendor) and to returning with policy revisions and audit-scope recommendations at the next meetings.
No formal motion or vote on procurement changes or forensic review occurred during the workshop; staff will present draft purchasing-policy revisions and audit-scope options at upcoming meetings.
