Finance Committee Agenda and Packet 2015 10 19

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SUBJECT: PURCHASING POLICY LIMITS DATE: OCTOBER 19, 2015 PAGE2OF4 the annual budget approved by the City Council. The budget authorizes expenditures for specific purposes and projects. The Purchasing Policies establish the process whereby staff makes purchases or contracts for services already funded in the annual budget approved by the City Council. 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 for contract /purchase approval. To ensure the City Council stays informed of expenditures in the $25,000 to $49,999 range (or the $99,999 range if approved), the City Manager includes a report in the second City Council packet of each month listing all such expenditures that he has approved. The following table shows the existing purchasing levels and a recommended change for purchases over $50,000: FINANCE COMMITTEE COMMUNICATION 11 CURRENT PROPOSED CHANGES Cash purchases under $50 Bid /Forms Required • Petty Cash Requisition Approvals Required Manager $50.01 - $2,499.99 Bid /Forms Required • Check Request Form Approvals Required Department Director or Designee $2,500.00 - $9,999.99 Bid /Forms Required • Minimum 3 phone quotes /bids /proposals • Contract as appropriate • Purchase Requisition • Check Request Approvals Required Department Director Finance Director $/0,000.00 - $24,999.99 Bid /Forms Required • Written bid process with a minimum of 3 bids/ quotes/ proposals • Contract as appropriate • Purchase Requisition • Check Request Approvals Required Department Director Finance Director FINANCE COMMITTEE COMMUNICATION 11