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SUBJECT: DISCUSSION — PURCHASING POLICY LIMITS <br />DATE: JANUARY 13, 2015 <br />PAGE 2 OF 3 <br />The proposed new level would give the City Manager the authority to approve contracts <br />and purchases up to $100,000 only if the project was previously approved by the City <br />Council in the annual budget process. Currently all projects over $49,999 require City <br />Council approval. Given the amount of detail and time put into the annual budget <br />process, including the capital projects prioritization and budgeting, it can be redundant <br />and time consuming to bring projects back to Council again for contract /purchase <br />approval. To ensure that the City Council stays informed of expenditures in the $25,000 <br />to $49,999 range (or the $99,999 range if approved), the City Manager includes a report <br />in the second City Council packet of each month listing all such expenditures that he <br />has approved. <br />Projects that come to Council for contract or bid approval are generally put on the <br />consent agenda. However, even consent items require a significant amount of staff time <br />CITY COUNCIL COMMUNICATION <br />6 <br />• Contract as appropriate <br />• Purchase Requisition <br />• Check Request <br />Approvals <br />Required <br />Department Director <br />Finance Director <br />City Manager <br />$25,000 - $49,999.99 <br />$25,000 - $99,999.99 <br />Bid /Forms <br />Required <br />• Competitive Bid Process <br />• Contract <br />• Purchase Requisition <br />• Check Request <br />• Competitive Bid Process <br />• Contract <br />• Purchase Requisition <br />• Check Request <br />Approvals <br />Required <br />Department Director <br />Finance Director <br />City Manager <br />City Manager notifies City <br />Council of contract approval <br />NOTE: Any project /purchase in <br />this price range not approved in <br />the annual budget process <br />requires City Council approval. <br />Department Director <br />Finance Director <br />City Manager <br />City Manager notifies City <br />Council of contract approval <br />NOTE: Any project/purchase in <br />this price range not approved in <br />the annual budget process <br />requires City Council approval. <br />$50,000 and above <br />$100,000 and above <br />Bid /Forms <br />Required <br />• Competitive Bid Process <br />• Contract <br />• Purchase Requisition <br />• Check Request <br />• Competitive Bid Process <br />• Contract <br />• Purchase Requisition <br />• Check Request <br />Approvals <br />Required <br />Department Director <br />Finance Director <br />City Manager <br />Department Director <br />Finance Director <br />City Manager <br />City Council <br />The proposed new level would give the City Manager the authority to approve contracts <br />and purchases up to $100,000 only if the project was previously approved by the City <br />Council in the annual budget process. Currently all projects over $49,999 require City <br />Council approval. Given the amount of detail and time put into the annual budget <br />process, including the capital projects prioritization and budgeting, it can be redundant <br />and time consuming to bring projects back to Council again for contract /purchase <br />approval. To ensure that the City Council stays informed of expenditures in the $25,000 <br />to $49,999 range (or the $99,999 range if approved), the City Manager includes a report <br />in the second City Council packet of each month listing all such expenditures that he <br />has approved. <br />Projects that come to Council for contract or bid approval are generally put on the <br />consent agenda. However, even consent items require a significant amount of staff time <br />CITY COUNCIL COMMUNICATION <br />6 <br />