City of Saginaw MI -
Proposal 3: City Charter Amendment to Section 33

The City of Saginaw would like to make the citizens of Saginaw aware of the proposed amendment to the Saginaw City Charter regarding sealed competitive bids that will appear on the November 8, 2016 general election ballot.

Proposal 3 would extend the threshold requiring sealed bids for city purchases from $2,000 or more, to $10,000 or more. The amount of $2,000 was voted into place by the citizens of Saginaw in 1935. This amount has not been changed since then and does not account for the inflation on the price of goods, materials and services over the last 80 years.

Jim Nichols, City of Saginaw Purchasing Officer, stated that "In order to obtain the lowest cost for goods and services the City’s current Purchasing Policy requires the City to solicit quotes for low cost items and go through the sealed bid process for any goods or service costing $2,000 or more. The sealed bid process would not change with the increase of our bid limit to $10,000."

The City of Saginaw also uses a competitive bidding process for bids under the $2,000 limit. The lowest bids are still obtained by receiving multiple quotes before a decision is reached. Bids under the $2,000 limit do not require City Council approval and allow the requesting department to expedite the purchases of needed goods or services.

• Change current City bidding threshold from $2,000 to $10,000.
• Competitive bidding would still remain in effect for acquiring goods and services.

Mr. Nichols goes on to say that “It’s important to note that our City Council (through the annual budget review process) has already approved the funds used to purchase the goods and services needed for the City.” Many departments use a three year budgeting plan that easily exceeds the current limit whereas the proposed change would allow the same budgets to work without generating additional work within each department for purchases over the current $2,000 limit.

For more information please contact Debbie Powell, City of Saginaw Public Information Officer at 989-759-1401.

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