Council to draft purchasing policy and hold bid-threshold decision for next meeting

The Livingston City Council voted to have staff draft a written municipal purchasing policy and deferred setting a specific bid threshold until a subsequent meeting.

Chair opened the discussion by saying the city must establish its own threshold after a change in state law removed a default minimum: "we are allowed, as of last year, to, set a bid threshold of $25,000," the Chair said. A staff member explained the state change and how the General Assembly allows cities to establish a local threshold up to $25,000 but that cities may choose a lower amount. The staff member also described the 40% rule: "But if the cost is 40% or more of what that threshold is, the law says you've got to try to go out and get 3 estimates, if you can."

Council members asked how purchase orders are currently processed; staff and the Chair said department heads prepare purchase orders that are processed through Phyllis's office and that two signatures are required on checks. Alderman Linder moved that staff prepare a draft written purchasing policy for council consideration; Alderman Dale seconded and the motion passed. Alderman Elder later moved to place a bid-threshold resolution on the agenda with the amount left as a placeholder to be set at the next meeting; Alderman Linder seconded and that motion also passed.

Council members expressed mixed views about the dollar amount. One member said smaller thresholds can slow procurement, while another warned about public concern and vendors misinterpreting a local threshold as favoritism. Staff agreed to provide a draft policy (including a placeholder numeric value) and examples from other cities (Carthage was cited) at the next meeting for further review and vote.

The council did not adopt a final numeric threshold at this meeting; it directed staff to return a written policy and the proposed dollar amount for formal adoption at a future meeting.