Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Procurement Policy topic
No spam. Unsubscribe anytime.
Council discusses raising sale threshold, adopts plan to draft tiered procurement policy
Summary
Councilmembers discussed raising the city's $3,000 sales threshold for disposing of surplus property and considered a four-tier procurement policy (micro-purchases to formal RFPs). Staff will return a proposed ordinance with recommended dollar tiers.
Lincoln councilmembers discussed raising the threshold that triggers formal council approval when the city sells surplus property and explored a tiered procurement policy to reduce administrative fees and processing delays.
Public works and city administration explained that the current $3,000 threshold for disposition (sale) creates practical problems: small items such as mowers or a pressure washer attract third-party listing fees on external sales platforms that can approach $500, materially reducing buyer interest. A city staff member said the city currently must advertise sales to allow public bidding, but using third-party procurement sites adds fees that make low-value sales uneconomic.
Councilmembers and the city attorney discussed a three-tier or four-tier approach used by other municipalities. One council member suggested raising the “sell without council approval” amount to about $5,000 and adopting a mid-tier process where directors could recommend sales in the middle range to council. The staff proposal presented verbally at the meeting described suggested procurement tiers: micro purchases $0–5,000; supervisor solicitations $5,000–10,000; director-level small purchases $10,000–15,000; and formal RFPs above $15,000.
Council did not adopt a final ordinance. The council asked staff to collect examples from other cities and to prepare a draft ordinance or resolution that would: (1) increase the disposition threshold for sales without council approval, (2) define a middle tier with required documentation and director or council approval, and (3) set procurement purchasing tiers for purchases. A staff member said he would circulate draft dollar amounts and sample codes for review before the next meeting.
Why it matters: adjusting disposition and procurement thresholds could speed the sale of low-value city property, reduce third-party fees that reduce sale proceeds, and centralize review for higher-value transactions. Council emphasized safeguards (advertising and open bidding) to avoid sales to insiders.
