City Council Study Session Agenda and Packet 2012 07 10

Home Browse Search

PAGE THREE SUBJECT:DISCUSSION –UPDATE OF PURCHASINGPOLICIES DATE:JULY 10, 2012 The proposed new levels would give the City Manager the authority to approve contracts and purchases only if the project was previously approved by the City Council in the annual budget up to $50,000 process . Currently all projects over $14,999 require City Council approval. Given the amount of detail and time put into the annual budget process, including the capital projects prioritization and budgeting, it can be redundant and time consuming to bring projects back to Council again for contract/purchase approval. To ensure that the City Council stays informed of expenditures in the $25,000 to $49,999 range, the proposed policy also requires the City Manager to inform the City Council when he approves such expenditures. Projects that come to Council for contract or bid approval are generally put on the consent agenda. However, even consent items require a significant amount of staff time to write a council communication, have it reviewed by a department director, reviewed by the City Manager, included in the Council packet, and then approved by Council. All of these steps can add two to four weeks to a project that has already been approved in the budget process. The increase in expenditure approval levels isintended to avoid this effort and still keep the City Council informed of significant expenditures. Some examples of projects or purchases the City Council has recently approved via the consent agenda that could have been approved by the City Manager if the proposed Purchasing Policies were in place include: Via Mobility Contract (Special Transit): $33,400 TichlerBise Contract for Comprehensive Plan Fiscal Assistance: $49,800 Agreement for Professional Geotechnical Services for 2012 Capital Improvement Projects: $32,000 Arts Center Floor Replacement: $19,900 2012 Tree Planting Contract: $32,000 2012 Golf Course Tree Work Contract: $39,925 Purchase of truck for Wastewater Plant: $29,058 Staff will continue to secure Council approval of all expenditures over $50,000 AND any project or purchase over $25,000 not already approved in the annual budget. Additionally, the City Manager has the discretion to bring to the City Council any purchase/project he determines should have the Council’s explicit approval because it may be of special interest. Regardless of the approval level, all projects over $2,500 will continue to require a minimum of three quotes or bids. As the price of the purchase increases so do the bidding requirements with full competitive bid procedures required for purchases over $25,000. Additionally, a manager, director or the City Manager can require a competitive bid process for any project if he/she determines it will get the best price for the project/purchase. There is an option for sole sourcing (Section VI) only if staff can justify such a purchase and it is approved by the Finance Director for purchases under $10,000 and both the Finance Director and City Manager for purchases over $10,000. There are multiple steps in the purchase process including checks for both the proper approvals and to assure that there are sufficient funds budgeted prior to releasing a purchase requisition. Other changes in the policies include: 6