Bill seeks to give cities bidding-process leeway

The ceiling for purchases that first-class cities can make without a public bidding process would be increased to $50,000 under a bill that a House committee recommended for approval Wednesday.

House Bill 1041 — sponsored by Rep. Jack Ladyman, R-Jonesboro — would amend Arkansas Code 14-58-303(b) to raise the current $20,000 limit and would allow municipalities in emergency situations to adopt resolutions instead of ordinances, which require a more involved and time-consuming approval process.

The House Committee on City, County and Local Affairs recommended approval of HB1041, which now goes to the full House.

“Resolutions can be done more quickly,” said Mark Hayes, executive director of the Arkansas Municipal League. He added that cities are often hampered by strict bidding requirements when emergencies strike, such as tornadoes or other disasters, times when purchases or services are needed immediately.

The proposed bill drew objections from the Arkansas Press Association because it cripples transparency, said Ashley Wimberley, executive director of the organization.

Current law for city purchases of more than $20,000 requires a city to advertise for bids for two weeks in a local newspaper.

“Obviously we’re disappointed for the newspapers of Arkansas and also the public,” Wimberley said. “Anything that reduces government transparency is the wrong direction.”

Rep. Lee Johnson, R-Greenwood, said the bill does not bar cities from imposing self-restrictions lower than the $50,000 limit.

Aaron Sadler, spokesman for the Arkansas Press Association, told the committee that the higher limit is a big threshold for cities in Arkansas.

“Without public notice, without competitive bidding requirements, this is a huge amount of money that [the] public would not know about,” Sadler said.

Ladyman countered that city council agendas and notifications for meetings are always available to the public.

“I think it’s necessary. I think it’s good for our cities,” he said. “We would still maintain our transparency, and we would still have our citizens being involved.”

The legislation does not affect county purchases, which are limited to $20,000 before they must be put out for bids.

When asked, Christy Smith, spokesman for the Association of Arkansas Counties, said she is unaware of any county proposals that would mirror HB1041.

“There is always the chance we would ask to raise a bid threshold. However, that would be at the discretion of our client, the county judges,” she said. “At this time, it is not something we have discussed with them.”