MLGW looks to increase contract threshold - WMC Action News 5 - Memphis, Tennessee

Reported by Nick Kenney

MLGW looks to increase contract threshold

MLGW wants to spend a quarter of a million dollars and do it without any oversight.

During a joint meeting, the Memphis City Council and the MLGW board of commissioners plowed through a long list of topics, including increasing what is called the contract threshold.

Right now, every MLGW expenditure of $25,000 or more requires approval from MLGW's board and the Memphis City Council.

MLGW is now requesting the authority to enter into contracts up to $250,000 without city council approval.
 
"The $25,00 threshold was set at some earlier period.  And as we know, inflation has taken place.  It's just an opportunity to maybe reduce the timeline on the smaller companies and the smaller businesses that we interact with," MLGW commissioner Lynn Evans said.

MLGW argues that most of its contracts far exceed $25,000.  They said raising the contract threshold would streamline operations and speed up the pace of business, but first the utility must convince the Memphis City Council to relinquish some oversight.


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