Published: October 09, 2008 09:47 am      

Council to take up negotiation changes during special meeting

A special city council meeting has been set on Friday to consider an ordinance which would allow the city manager to negotiate contracts up to $50,000 if no bids are received.

The meeting is set for 5:30 p.m. in the Council Chambers at City Hall.

Ward 6 Councilor Sam Mason placed the item on the agenda after the city received an opinion on the issue from City Attorney Bill Ervin.

Mason said the matter arose after the city sent out requests for proposals on the city’s 2007-2008 audit.

“We got no bids,” Mason said.

The new City Charter ties the council into sending out the requests annually, he said.

Mason said that although the city received no bids after sending out the requests, the firm of Hulme, Rahhal and Henderson had previously sent out a multi-year proposal. He said the firm had done work for the city during two previous years.

Before Mayor Kevin Priddle called for the special meeting, Mason asked this question of the Ervin & Ervin law firm, which acts as the city’s attorney:

“Can the city negotiate a contract for professional services to conduct the annual independent audit provided for in Section 5.13 of the City Charter after conducting the competitive bidding required without the receipt of any bids?”

In his opinion, Ervin said “The answer to the question is a qualified yes.”

Ervin said that since the City Charter makes no provision for such circumstances, the city could look to other legal authority.

“I found no court decisions which would apply,” Ervin said in his opinion. “Neither did I find any authority from statutes or ordinances which would specifically apply.”

“In such legal void I feel the council should be permitted to adopt any reasonable process to complete the competitive bidding process called for in the Charter since it is mute on the subject and does not specify any particulars other than to say” the council shall use competitive bidding, Ervin said.

Ervin referred to the Oklahoma Competitive Bidding Act, which he said allows for negotiated contracts by public agencies if no bids are received after completing a public bidding process.

However, such negotiated contracts may not exceed $50,000, he said.

Ervin also noted that the City Code of Ordinances already provides for the city manager to purchase contractual services not to exceed $25,000 in a single transaction.

The attorney suggested the city council adopt a policy providing for a similar process which allows for either the city council or city manager, subject to council approval, to negotiate a contract for services if no bids are received.

Ervin advised the council to “set a reasonable monetary limit.”

If the measure is passed during the Friday meeting, it will allow the city manger to negotiate contracts for council approval “for the purchase of supplies, materials, equipment or contractual services” up to the $50,000 cap when bids are required, but are not received.

Mason said there’s a reason for placing the matter on a special meeting agenda prior to next Tuesday’s regular council meeting.

He said he hopes City Manager Mark Roath can negotiate an agreement for the work in time for the council to take action on a proposal during the regular Tuesday meeting.

If action is not taken soon, auditors will be heading for their busy time of year during the tax season, Mason noted.

“The reason for the special meeting is so we get started on our audit,” Mason said.

Contact James Beaty at jbeaty@mcalesternews.com.