City Council Study Session Agenda and Packet 2015 01 13

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SUBJECT: DISCUSSION — PURCHASING POLICY LIMITS DATE: JANUARY 13, 2015 PAGE 3 OF 3 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 would avoid this effort and still keep the City Council informed of significant expenditures. Some examples of projects or purchases the City Council approved in 2014 via the consent agenda that could have been approved by the City Manager if purchasing levels were changed include: • Agreement with CliftonLarsonAllen for Contract Utility Billing Services: $69,840 • Consulting Agreement for Storm Sewer Detention Pond Maintenance: $65,000 • Contract for Scanning Back Planning and Building Records: $60,000 • Contract for Aquatic Chemical Solutions: $51,460 • Design Contract for Eldorado Intake Repairs: $65,795 • 2014 Street Striping Contract: $69,465 • Purchase of Deck Mower: $56,907 Staff would continue to secure Council approval of all expenditures over $100,000 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 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. FISCAL IMPACT: None, all purchases must still be budgeted for. RECOMMENDATION: Discussion ATTACHMENT(S): 1. Existing Purchasing Policies CITY COUNCIL COMMUNICATION 7