Laserfiche WebLink
112 City of <br />Om Louisville <br />COLORADO • SINCE 1878 <br />FINANCE COMMITTEE <br />COMMUNICATION <br />ITEM 2 <br />SUBJECT: CITY WIDE PURCHASING POLICY UPDATE <br />DATE: NOVEMBER 21, 2024 <br />PRESENTED BY: RYDER BAILEY, CPA, FINANCE DIRECTOR <br />MARIA OSTROM, CPA, INTERIM FINANCE MANAGER <br />SUMMARY: <br />City Council approves and adopts the City's Purchasing Policy by resolution. <br />City Council, through Resolution No 37, Series 2021, last updated the Purchasing Policy <br />on May 18th, 2021. It is best practice for City Staff to regularly review and update this <br />Policy. <br />Recommended modifications to the Policy can be summarized as follows; <br />■ Adjustments to Purchasing Level Authority, to align with neighboring jurisdictions <br />and Federal Guidelines <br />■ Incorporate Federal Procurement Requirements <br />■ Clarify Cooperative Purchasing <br />■ Administrative Clean Up <br />BACKGROUND: <br />Adjustments to Purchasing Level Authority: <br />Purchasing Level Authorities were last adjusted in 2015. Minimum PO requirement <br />($2,500) dating back to 2006. <br />Staff surveyed ten cities (Frederick, Firestone, Lafayette, Longmont, Westminster, <br />Broomfield, Thornton, Brighton, Superior and Golden), and all allow informal quotes <br /><$50,000 and require formal bid for purchases >$50,000. This is consistent with Federal <br />procurement guidelines. Longmont is the exception; formal bid level is >$250,000. <br />Federal procurement allows informal quotes under $250,000 unless the local purchasing <br />policy level is lower, then must use local policy. <br />Purchase requisitions are time consuming for staff around the City and slow the <br />purchasing process. Finance processes over 400 purchase requisitions per year which a <br />process that involves department or admin staff in all departments creating the <br />requisitions, managers, directors and the Finance Director to review and approve. For <br />any requisitions >$10,000, the City Manager's approval is also required. Removing the <br />FINANCE COMMITTEE COMMUNICATION <br />