(Red Oak) — Red Oak city officials are discussing possible local regulations for seeking bids and city purchases.
During its regular meeting earlier this week, the Red Oak City Council discussed a possible procurement policy for seeking goods and services for the city and price limits for department heads and the city administrator making decisions without prior council approval. While Iowa Code has some guidelines for when a competitive process is necessary for an improvement project, Red Oak Mayor Shawnna Silvius says discussions of adopting a local policy come after multiple disputes about the required protocols in recent purchases and decisions.
“From needing a (request for proposal) for websites to not needing an RFP or additional bids for attorneys, I.T., or other things such as security cameras,” Silvius explained. “So, I feel we need to set some limits and standards that are common protocol, so that we are doing our due diligence for the citizens and our taxpayers.”
Silvius says she would like to form a committee between herself, Red Oak City Administrator Brad Wright, and at least one council member to discuss a possible policy moving forward. She adds other communities and agencies, including the cities of Atlantic and Shenandoah and Montgomery County Emergency Management Director Brian Hamman, have provided her example policies.
“In the other communities that I’ve spoken to, their limits are anywhere from $1,000 to $5,000 or $10,000 for RFPs,” said Silvius. “But it also explains the process of moving forward with and creating an RFP, the process for reviewing them and recommending them, and then who is responsible.”
However, Wright did clarify that, while they are related, seeking RFPs and department head decisions are two separate discussions. Regarding the department heads financial decisions, Wright says there is no formal written limit, but over the years, they had reached an informal consensus.
“They speak to me if its anything they know is above or outside of their budget, of course vehicles and those kinds of things always come before the council, but typical maintenance equipment they deal with, if there’s something they know is on the larger end they talk to me,” Wright explained. “It’s been unwritten for myself and the department heads combined where if it’s over $10,000 or so, we bring it to council.”
Wright adds exceptions were also usually made for emergencies, such as parts for an inoperable pump station, which the council agreed should remain with any future procurement policies.
Councilwoman Jeanice Lester has also reached out to the Red Oak School District to inquire about their procurement policy, which she says seems a little high.
“Their board policy with Iowa Code, requires they obtain competitive quotes for projects between an estimated cost of $50,000 and $139,000 and sealed bids for projects costing more than $139,000,” said Lester. “So, theirs is pretty high.”
Lester and Councilman Pete Wemhoff said they would be interested in serving on the committee to develop a possible policy.
