Sterling Heights councilors voted to introduce an ordinance to amend Article 6 of Chapter 2 of the city code to update procedures for procuring goods, services and public-improvement contracts, after a two-hour discussion about competitive sealed-bid thresholds.
Purchasing Manager Eric Skirda told council the current sealed-bid threshold is $10,000, which the city charter sets, and recommended allowing staff to solicit quotes and use open-market pricing tools for many purchases that now require sealed invitations to bid. "Expanding the office of purchasing's ability to adapt and seek alternative pricing is an important component in gaining the best value for the residents," Skirda said.
Council members split over how far to let staff go. Several members argued for a lower increase (between $30,000 and $40,000) to protect taxpayer dollars; others said a higher threshold (proposed in the staff text as $50,000) would streamline operations and conform with bonding rules for public-improvement contracts. Councilmember Radke moved to amend the ordinance to cap the revised threshold at $40,000; that amendment failed 3 on a roll call. The main motion to introduce the ordinance as proposed carried on roll call 5' and will return for final action at the next meeting.
City Manager Mark Vanderpool told council an increase in the charter threshold above $10,000 would require a charter change and is not part of the current ordinance introduction; Vanderpool said any charter update would be packaged with other housekeeping changes and taken up in the future.
Skirda said the proposed revision would preserve the sealed competitive bidding option if market-sourced quotes appeared unfavorable, and that purchases above the sealed-bid threshold would still come to council for approval. No immediate contract awards were made at the meeting.