750k No Bid?

Last month, Loudon City council voted to pay for the installation of artificial turf on the Loudon High School football field. There was some opposition to the idea that the city would pay such a high price for to upgrade a county facility. In the end, the council approved the plan. The city hopes to cover much of the cost through corporate donations.

The contract for the new turf has already been awarded. The estimated cost is around $750,000.00. The city did not advertise or put the project out for bid which is very unusual for any government projects over $25,000.00.

According the the city attorney, the city charter allows the city to award no bid contracts in certain circumstances.

Loudon City Charter SECTION 14. Competitive bidding and purchasing procedures. The Manager shall be responsible for all city purchasing, but he may delegate his duty to any subordinate appointed by him. Competitive prices for all purchases and public improvements shall be obtained whenever practicable and in accordance with regulations established by ordinance, and the purchases made from or the contract awarded to the lowest bidder, provided that the city shall have the power to reject any and all bids.

Formal sealed bids shall be obtained in all transactions involving the expenditure exceeding the amount set by the Mayor and Council by ordinance adopted pursuant to the requirements established in Tennessee Code Annotated, Section 6-56-302, and the transaction shall be submitted to and approved by the council; provided, that in cases where the council indicates by formal unanimous resolution of those present at the meeting, based upon the written recommendation of the Manager, that it is clearly to the advantage of the city not to contract with competitive bidding, it may authorize noncompetitive contracts. Purchasing and contract procedures not prescribed by this charter or other law may be established by ordinance. (As amended by Pvt. Acts 2008, ch. 86, § 3]

So, the city attorney is correct, the city charter does allow for noncompetitive bids. The question is, does the city charter over ride state law?

TCA-6-56-304. Advertising and bidding — Exceptions

Except as provided in this section all purchases and leases or lease-purchase agreements shall be made or entered into only after public advertisement and competitive bid, except as follows:

(1) Purchases costing less than two thousand five hundred dollars ($2,500)

(2) Any goods or services that may not be procured by competitive means because of the existence of a single source of supply or because of a proprietary product.

(3) Purchases or leases of any supplies, materials or equipment for immediate delivery in actual emergencies arising from unforeseen causes, including delays by contractors, delays in transportation, and unanticipated volume of work.

(4) Leases or lease-purchase agreements requiring total payments of less than two thousand five hundred dollars ($2,500) in each fiscal year the agreement is in effect.

(5) Purchases, leases, or lease-purchases of real property

(6) Purchases, leases, or lease-purchases from any federal, state, or local governmental unit or agency of secondhand articles or equipment or other materials, supplies, commodities, and equipment

(7) Purchases of perishable commodities, when such items are purchased in the open market.

(8) Purchases, for resale, of natural gas and propane gas.

Above are all the exceptions to state law when advertising and bids are not required. No where does it say, no bids required if a city charter says so.

The final statement I received from the city attorney was, "The City Charter is in compliance with state municipal purchasing law and our purchasing policy adopted by ordinance."

Sure hope he's correct and this doesn't come back to bite someone in the butt. After all, the whole reason for advertising and taking bids is to be sure local government gets the best buy for the tax payers and that there are no back room deals that might help some friend or family member.

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6/7/21