They are actually supposed on be on Dain, Tormax, and Yelinak faction and only require indifferent for a few months. Quest givers should also be level 35 for easy charm or sneak questing at indifferent.
They switched to coldain, zek, cov at a lower standard than the implemented ally of that patch.
Edit, link for reference:
Collected evidence for city leader quest armor @ indifferent:
http://www.project1999.com/forums/sh...4&postcount=74
Timeline should be something like:
Release to April 2001 -- Quest armors on city leader faction @ indifferent.
April 2001 to May 8, 2001 (patch above) -- Quest armors on city faction (coldain/zek/cov) and use indifferent.
May 8, 2001+ -- Quest armors at Kindly for Coldain and Ally for Zek/CoV