
November 7, 2005 |
2005-R-0817 | |
MUNICIPAL COMPETITIVE BIDDING THRESHOLDS | ||
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By: Kevin E. McCarthy, Principal Analyst | ||
You asked whether municipalities (specifically Bridgeport) can change the thresholds for competitive bidding by passing an ordinance rather than revising their charter.
SUMMARY
Municipalities can change their thresholds for competitive bidding by passing an ordinance. But it appears that the ordinance cannot set a threshold above $ 7,500 for sealed bids.
MUNICIPAL COMPETITIVE BIDDING THRESHOLDS
As a general rule, a municipality’s legislative body cannot supersede a requirement of the municipality’s charter by adopting an ordinance. If the charter is silent on an issue or allows the legislative body to address an issue by ordinance, the legislative body can establish a requirement by ordinance. In Bridgeport’s case, chapter 8, section 15 of the charter specifies that the city council must, by ordinance, provide for the competitive procurement of goods and services for use by the city and its agencies. It also requires the ordinance to cover exclusions and waivers from competitive procurement requirements. Thus, in the absence of statutes to the contrary, the city council could change the bid threshold.
But, the statutes allow an ordinance to supersede bid requirements, subject to certain restrictions. CGS § 7-148v states:
Notwithstanding the provisions of any municipal charter or any special act to the contrary, any municipality may, by ordinance, establish requirements for competitive bidding for the award of any contract or the purchase of any real or personal property by the municipality. Such ordinance may provide that, except as otherwise required by any provision of the general statutes, sealed bidding shall not be required for contracts or purchases having a value less than or equal to an amount established in the ordinance, which amount shall not be greater than seven thousand five hundred dollars. Nothing in this section shall be deemed to invalidate any ordinance enacted by a municipality prior to October 1, 1989.
This provision can be interpreted in at least two ways. One interpretation is that it enables legislative bodies to adopt, by ordinance, sealed bid thresholds that supersede those set in the charter, so long as the threshold set in the ordinance does not exceed $ 7,500. Under this interpretation, the statute would not affect municipalities that do not specify bid thresholds in their charters. Another interpretation is that this statute allows municipalities to set bid thresholds by ordinance, but prohibits any municipality from adopting an ordinance on or after October 1, 1989 that sets a sealed bid threshold above $ 7,500.
Although the legislative history of CGS § 7-148v (enclosed) is not entirely clear, it appears to support the latter interpretation. In the House, the bill’s sponsor, Rep. Langlois, stated that the bill would allow municipalities to establish competitive bidding requirements by ordinance, which could exempt purchases of up to $ 7,500 from requirements for sealed bids. According to Rep. Langlois, the bill would in effect allow municipalities with charters to update their bid waiver provisions by ordinance. He agreed with Rep. Farr’s interpretation that the bill would allow the municipality to override its charter by adopting an ordinance. But Rep. Langlois stated that municipalities could not waive a requirement for sealed bids in the cases of purchases of more than $ 7,500. He characterized the bill as being less permissive than then-existing law, which set no competitive bids requirements or guidelines for local ordinances. Similarly, in the Senate the bill’s sponsor (Sen. DiBella) characterized it as allowing municipalities to establish bidding procedures that did not require sealed bids for purchases under $ 7,500. The bill passed 100 to 46 in the House and on consent in the Senate.
As the legislative history notes, this statute does not affect bidding requirements for the acquisition of services. Nor does it affect a municipality’s ability to amend its charter to change bidding requirements.
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