Granbury adopts comprehensive procurement ordinance; council debates raising council review threshold to $100,000

The Granbury City Council unanimously adopted ordinance No. 25‑70 on Oct. 21 to replace the city's prior purchasing policy with a comprehensive procurement and purchasing ordinance that sets purchase thresholds, requires written quotes and establishes central oversight.

City finance staff and the city's procurement manager described the policy as a hybrid model that balances department-level purchasing with centralized review. Under the ordinance the council adopted, department heads can procure items under $3,000 directly; purchases between $3,000 and $25,000 require three written quotes and an attempt to reach HUB (Historically Underutilized Businesses) vendors; purchases from $25,000 to $50,000 require city manager approval; purchases from $50,000 to $100,000 maintain similar requirements but remain under manager oversight; and purchases exceeding $100,000 will normally go to council and generally be subject to the state's competitive bid laws unless exempt.

Ava Gregory, the city's finance director, said a third‑party procurement consultant helped draft the ordinance and that exhibit materials (Exhibits A–C) show thresholds, mandatory contract attachments and insurance/bonding requirements for public-works contractors. The ordinance also contains sections addressing ethics, grant administration, disaster procurement and managing public works/CIP procurements.

Council discussion centered on one substantive change introduced by recent state law (Senate Bill 1173) that raised the competitive‑bid procurement threshold from $50,000 to $100,000. Several council members, including Councilmember Corrigan, expressed concern that increasing the council‑review threshold reduces elected oversight and could allow departments to “piecemeal” a larger purchase into smaller purchases to avoid council review. Staff said the higher threshold reduces administrative workload and that internal controls — procurement staff review, weekly AP reports and manager oversight — would remain in place. The ordinance also contains language to prevent concurrent purchases that would otherwise be split across purchase orders to evade thresholds.

City staff said the procurement manager will monitor purchases, maintain warehouse stock for routine items and reach out to local vendors where feasible. The city attorney told the council that the city charter lets council set the limit for what items the council wants to receive for approval.

After discussion the council voted to adopt the ordinance and exhibits; supporters said the policy brings city practice into alignment with state law while adding local accountability and HUB outreach requirements.

Ordinance No. 25‑70 passed by unanimous vote; councilmembers did not amend the threshold as part of the motion but left open the possibility of future changes if the council chooses to revisit the $100,000 level.