City Council Study Session Agenda and Packet 2019 11 12

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After the annual appropriations ordinance has been approved, further appropriations and expenditures may be made in accordance with statutorily outlined procedures in cases of the receipt of unanticipated revenues or circumstances requiring a transfer of funds, or in cases of emergency.241 During the year, each "warrant" drawn on the municipality must state the particular fund or appropriation to which the expenditure is chargeable, along with the person to whom it is payable.142 PURCHASING A municipality's purchasing procedures can save or waste thousands of dollars. As the corporate authority of the municipality, the governing body is active in all large and some small purchases. Certain purchasing costs may be reduced by using the purchasing services of a pool of purchasers, such as the State of Colorado or public agencies nationwide. Numerous items that may be ordered through the Colorado Department of Personnel and Administration include, but are not limited to, communications equipment, data processing supplies and equipment, highway maintenance products, janitorial supplies, office supplies, tools, and vehicle supplies and accessories.241 CIVIL members also have the opportunity to participate in the U.S. Communities Government Purchasing Alliance, www.uscommunities.org, a nonprofit established by public agencies to reduce the cost of purchased goods and to streamline the purchasing process. In general, municipal employees will determine the supply and service requirements of the municipality — the governing body only becomes involved when a requirement is unusual or involves a large sum of money. There is no general statutory requirement that municipalities use competitive bidding in purchasing supplies or services, although municipalities may provide by ordinance that supplies shall be furnished by contract with the lowest bidder.214 However, when a substantial amount of money is involved in a proposed purchase, competitive bidding should be used so that the lowest possible bid can be achieved as a result of competition. In statutory cities, Colorado law requires that work done by cities in the construction of public improvements costing $5,000 or more be done by contract to the lowest responsible bidder on open bids after ample advertisement. The law further provides that it is unlawful to divide projects for the sole purpose of evading this bidding requirement.241 There are surprisingly few statutory requirements as to purchasing supplies or services. C.R.S. § 31-15-201(e) authorizes, but does not require, municipalities to adopt ordinances providing that supplies shall be furnished by contract with the lowest bidder. Purchasing procedures are sometimes established locally, by charter provision, or by ordinance.241 LEASE -PURCHASE FINANCING Lease -purchase financing has become an increasingly important tool of municipal capital acquisition and improvement. Lease -purchase arrangements allow public entities to meet important capital expenditure needs without incurring long-term debts. The need for goods such as computers and other high-tech equipment, as well as the more traditional needs of new buildings and other capital improvements, has exceeded the ability of many municipalities to fund such projects through the use of general obligation debt bonds. Lease -purchase agreements have many practical advantages over general obligation bonds, but the greatest advantage is the legal one. Article XI, section 6 of the Colorado Constitution forbids the creation of a long-term, general obligation debt on the part of municipalities without the approval of the electors of the municipality. The Colorado Supreme Court has held that lease -purchase agreements, to the extent they may be cancelled without penalty and for which the municipality is under no compulsion to renew, are not subject to the election requirements of TABOR. The courts have held that such agreements do not constitute a "multiple -fiscal year direct or indirect district debt or other financial obligation" within the meaning of the TABOR amendment.241 241 C.R.S. §§ 29-1-109, 111, 112. 242 C.R.S. § 31-30.5-27 (a check may be used in lieu of a warrant, if such has been provided for by the governing body). 243 Information on the BIDS purchasing program may be obtained at www.bidscolorado.com or 303-866-6464. 244 C.R.S. § 31-15-201(1)(e). 245 C.R.S. § 31-15-712. 246 CML's publication, Municipal Procurement: Organization, Techniques and Strategies for Public Procurement, provides more detailed information on purchasing procedures. 247 Bd. of Cnty. Comm'rs, Boulder v. Dougherty, 890 P.2d 199 (Colo. App. 1994); In re Submission of Interrogatories on House Bill 99-1325, 979 P.2d 549 (Colo. 1999). Heather Balser / City of Louisville Order#ht byC er Date: lo�3 vzol9 Copyright by COLORADO MUNCIPAL GOVERNMENTAN INTRODUCTION Cop