FAYETTEVILLE — The Fayetteville Advertising and Promotion Commission pays $135 a month for maintenance on the World Peace Prayer Fountain on the Fayetteville Town Center Plaza. The commission pays the Sells advertising agency nearly $400,000 a year for advertising and marketing. It also pays Eason Insurance Agency nearly $11,000 a year for its brokerage services.
The commission plans to review these and other contracts in January, with the intention of drafting a policy to require contracts above a certain amount be let out for bids periodically.
“Once every three years, if it’s above $5,000, we should go out and get quotes,” said Tim Freeman, commission chairman, as an example of the sort of policy changes the panel may adopt. Freeman brought up the issue at the November meeting.
“We need to periodically have a report on it,” agreed commissioner Robert Rhoads.
The tourism board approved its three-year contract with the Sells Agency in 2007. That contract followed the city’s “request for proposals” procedures, and carries an option for renewal each year.
“Because of the amount of this contract, the commission makes the decision regarding this contract,” Commission Director Marilyn Heifner said in a recent e-mail.
Other contracts, such as one with Robert Cox Pools for fountain maintenance, was “shopped” by Heifner.
Since the Town Center opened in 2001, the commission contracted with Eason Insurance Agency to provide worker’s comp and building insurance for the Town Center.
“Eason shops various firms each year to get us the best deal,” Heifner explained. “I called several insurance companies several years ago and Eason was providing us with the best price.”
However, Eason is operated by Bob Davis, who serves on the commission. The Eason contract amounts to less than one-half percent of the commission’s $2.2 million budget.
“Eason was given the opportunity to bid on the Town Center insurance just like other insurance agencies and was awarded the business,” Davis said via e-mail. “I did not vote on who would represent the A&P property and casualty insurance account and have always refrained from these discussions whenever they may have occurred.”
Local and state law does not prevent members of the commission from doing business with the organization on which they serve. However, the conflict of interest clause in the commission’s charter prevents the commissioners from voting on any issue where they have a financial interest.
Conflict of interest laws for city council members are narrower, said Fayetteville City Attorney Kit Williams. Not only could a council member not vote on a contract where they were a bidder but they cannot submit a proposal, Williams said.
Commissioners maintain they are satisfied with the service the commission is receiving from its contractors, but a system for review can only be a good thing.
“I think this was something that was a very fair deal,” said commissioner Neal Crawford, referring to the Eason Insurance Agency contract. “But we need to do our due diligence to make sure we’re getting the best deal.”
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