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. |