The Alexander City Council approved the first reading of an ordinance that will increase the dollar amount to require bids for a purchase from $10,000.00 to $20,000.00. It also gives the mayor “exclusive power” to award or reject bids and establishes approval of the budget as approval of all purchases listed as a line item in the budget.
The ordinance states, “The approval by the City Council of the annual budget shall amount to an appropriation of funds, which are lawfully applicable to the items therein contained, Expenditures shall he made only from funds previously appropriated by the council and only for the purposes set forth in such appropriation.”
As for when bids are required the ordinance continues, “On all purchases over twenty thousand dollars ($20,000.00), no less than three (3) bids shall be received. In cases where three (3) bids are not obtainable, the
Mayor shall document the reasons therefore, except in emergency situations where such bids are not obtainable.”
In Section 2 it states, “The Mayor or the Mayor’s duly authorized representative shall have exclusive power to award the bid to the lowest responsible bidder, but may reject any and all bids received.”
This new ordinance is replacing another ordinance, adopted during former Mayor Paul Mitchell’s administration, that can’t be located in city hall. Council Member Joy Gray remembers voting on the previous ordinance.
“I don't know where it went (the ordinance being replaced), but I know I did not imagine probably (20)17, (20)18,” Gray began. “We did vote on the previous mayor (proposed ordinance). We raised it from 5 (thousand) to 10 (thousand). ... At that time, I (the mayor) had to get the three bids. Correct. And then, not only did he have to get the bids, though, but then he brought the bids to council, and the council made the decision, and it didn't have to be the lowest (bid), but if it's not the lowest, you have to have an explanation.”
“That is a common practice with the city, but it is a common practice with cities, and that keeps council for being bogged down with the necessary things,” said Mayor Crystal Herrmann. “If the department and myself, we plan ahead, and we know with our budget, we're forecasting in that next year.”
“Now, if there is an emergency or something breaks down or something that's expensive, absolutely,” the Mayor continued. “We're going to put it on the agenda. If it's outside of our line (items) that y'all have not approved, we will be bringing it to council for approval to purchase.”
But that’s not required in the ordinance. Nor does it explain what to do if the budgeted line item appropriation is less than the bids.
The fire department recently purchased a new brush truck, replacing the old one. In the fire department’s 2025 budget there is a line item under expenses labeled “Vehicle Purchase” with the purchase amount of $69,276.27. The line item is budgeted for $40,000.00. There was not a request made to the council to amend the budget prior to the purchase. That line item has yet to be amended.
Three public readings of a proposed ordinance are required under state law. Instead of adopting the ordinance at the May 19 meeting, council members opted to have the first reading to allow for a month to consider the proposal. The ordinance will be on the June agenda.
How much is an asset worth?
This is another ordinance that can’t be found at city hall. Mayor Herrmann contacted Arkansas Legislative Audit who did have a copy of an ordinance establishing a policy for tracking fixed assets. Unfortunately, it was adopted in 1998. It set the minimum dollar amount to appear on the asset list at $500.00 and a time limit of five years for remaining on the list.
Council Member Chris Prowse thinks $2,500.00 is too high.
“I do think this amount is way too high,” Prowse said.
Herrmann explained, “[T]he problem with the $500, when you go to do the asset list, it's a lot.”
“So $500.00 is unacceptable,” Prowse said. “I think $1,500 is more reasonable because $2,499.00, the walkout door, nobody even knowing what happened.”
Council members voted to change the dollar amount to $1,500.00. They also agreed to a first reading allowing a month to amend the ordinance.
The ordinance allows an asset to remain on the list until its value drops below the $2,500.00 (now $1,500.00) instead of the five year limit. It also requires the council be provided an annual report of items removed from the asset list. It does not require council members be provided an annual copy of the current asset list.
Herrmann did mention that department heads are tracking what she referred to as “the smalls.” Assets that are under the dollar amount to appear on the asset list will be tracked on a separate list.
Next Meeting
City of Alexander Master Development Plan Submitted to Little Rock for approval April, 2023.
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