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Council backs three-tier procurement and changes to disposition limits, directs staff to draft ordinance
Summary
Council approved direction to draft a three-tier procurement system and revised disposition thresholds, moving some bidding/quote rules to administrative policy for clarity and practicality.
The Lincoln City Council gave staff direction May 22 to draft amendments that would create a three-tier procurement system and adjust disposition thresholds for city property.
Auditor Wilson and multiple council members discussed proposed thresholds for procurement: the council endorsed a structure with purchases under $7,500 handled at the department level, purchases from $7,500 to $15,000 approved by the portfolio holder with the transaction announced at the next council meeting for transparency, and purchases above $15,000 requiring full council approval.
Council members debated requiring three written quotes for smaller purchases; some members favored keeping a three-quote record on file for transparency, while staff and the city attorney cautioned that embedding specific quote requirements in ordinance could create drafting complexity and practical problems. The council ultimately directed staff to draft the tiered thresholds and to handle quote and procurement-detail requirements through administrative policy rather than hard-coding three-quote rules in ordinance.
On dispositions (sale of city property), council direction mirrored the tiered approach: department heads may sell items under $3,000; items from $3,000 to $5,000 would require portfolio-holder approval; items above $5,000 would go to the open market and competitive bidding. Council also asked the attorney to change a posting period for higher-tier dispositions from one week to 10 days.
Councilman Shoemaker made the motion to establish the tiers with a $7,500 lower threshold, a $7,500–$15,000 middle tier and a >$15,000 council tier; Councilman Bjornstead seconded. A roll call vote recorded affirmative votes from members present and the motion was approved to direct staff to draft ordinance language consistent with these thresholds.
Council also discussed sale procedures and recordkeeping. One council member recommended the use of a bill of sale and “sold as is” language for disposals; staff suggested that the bill of sale and warranty disclaimers are better handled by administrative procedure than by ordinance.
Staff was directed to draft ordinance language reflecting the tiers, include a transparency procedure for middle-tier purchases to be reported at the subsequent council meeting, and to return the draft ordinance for council review.
