Denison City Council members said they want to make sure that every contractor will be contacted when the city has a project that fits within their trade. They also want to make sure the contact or attempt to contact is documented.
The recommendation was made during the December 21 council meeting after two council members commented that they had received complaints from contractors who said they had not been contacted to provide quotes for city projects.
The topic arose as a different proposed change landed the procurement policy on the council’s agenda.
“I’ve heard it more than once that we’re taking bids on stuff and not everybody is getting a chance to do it. And maybe we ought to reach out and ask them how they want to be reached,” said Councilman John Granzen.
City Clerk Lisa Koch wasn’t sure if that wording is in the proposed amendment. However, she added that when the contractors register with the city every year, the form has a box to indicate if they want to be contacted and how they want to be contacted.
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She said that language could be added to the amendment to the procurement policy.
“I think it needs to be added because I’ve had a lot of complaints,” said Councilman Corey Curnyn.
He explained that if a contractor said he or she wasn’t contacted, documentation would provide a paper trail to show when and how they were contacted or that an attempt was made to contact them.
The contractor license application on the city’s website under the “Forms” menu and then under “Contractor Licenses” shows a section marked “Important.” The section has a number of boxes for contractors to check the types of work for which they want to be contacted and says they have to check a box or boxes and provide a valid email address. A line to write the email address is on the left side of the form. Spaces are also provided for business, cell and fax numbers.
Email is not always the preferred way, it was pointed out.
Curnyn said that when contractors, like Granzen for example, are out in the field, they are not checking their email all the time.
Councilman Dustin Logan added that a lot of governmental entities use a website or a link on their website to ask for bids for a project.
Deputy Clerk Christy Welch said such a link is already on the city’s website (www.denisonia.com).
The “Request for Bids/Quotes” link can be found on the home page below the “Helpful Links” heading.
Curnyn said that many of the things the council has referred to are projects that arise on the spur of the moment.
“Something pops up, and in the next few days we need this done,” he said. “If that’s the case, then we need to have that means of communication or attempt of communication and documentation that we did it. If we get those calls, then we have documentation that we actually did try to reach you (the contractor).”
Koch explained if a contractor doesn’t tell the city that they want to be contacted, they won’t be.
Granzen acknowledged that contractors are sent the business license form every year.
“It wouldn’t be a bad idea to send a separate letter out (saying) in case you missed it, if you want to be contacted,” he said.
Logan asked if it is appropriate to use social media to solicit bids for work.
“You can, but they have to be a registered contractor,” Koch replied. “They can get registered. That’s not a problem if they’re not.”
That was not the only change that was contemplated. The council wants to increase the dollar amount limit on work that a city employee or council member can do for the city without competitive quotes or bids. The policy clarifies that it includes employee’s spouse, employee’s business and the mayor.
The policy’s current limit is $1,500; the limit allowed by the state is $6,000.
“I know I brought it up last time and we decided to stay with what we had. But I feel we should go with what the state does so when the auditors come in, they’re not looking to see what we do individually or whatever,” said Granzen, who is a plumbing and heating contractor.
He added that usually 75% of a project goes for material and the rest is labor.
“So it’s not fair or equitable with anyone that’s working, in my opinion,” Granzen continued. “I think with what the state has approved, we’ll keep it all a lot less argumentative.”
Koch pointed out that the state auditors really don’t look at what the city’s policy is but look at the state limit.
“Given what costs are, you can’t do anything for $1,500,” commented Logan.
Councilman Greg Miller agreed that the city should go with the state limit of $6,000.
Councilwoman Jessica Garcia asked if the $6,000 limit would still apply under the exception for an emergency, if a city employee, employee’s spouse or council member is the only contractor that the city can get in contact with.
“The short answer is yes,” Koch replied, “but if the situation came up that it was your only option at that moment and you didn’t have a choice to wait, it would be an explanation you would give to the state auditors, and they would accept that. It’s just that they don’t want, as a general practice, giving business to council people or employees. That’s the reason for that limit.”
The amendment that placed the procurement policy on the agenda in the first place is to add emergency situations to the list of exceptions to the city’s purchasing methods. The amendment also says that exceptions must be approved by the city manager.
The council decided to have staff incorporate the changes into the proposed amendment and bring it back for the council to look at again.
The next regularly scheduled council meeting is at 5 p.m. on January 4.
