Finance Highlights 2007 0619 - Laserfiche WebLink

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potential increases. Staff is also looking to consolidate all methods for making a City purchase (travel, credit card, and petty cash) into a single policy and procedures document. Purchasing Agent Brockman gave an overview of the City's different purchase types, purchasing thresholds, and requirements for bidding. The City's current Purchasing Policy has the following thresholds: Equipment, Materials and Supplies: Less than $3.000 Competitive bidding NOT required $3,000-$25,000 Informal competitive bidding Above $25,000 Formal bidding - requires City Council Approval Sole Source: Above $3,000 Competitive bidding is waived Professional Services: Less than $5,000 $5,000-$15,000 Above $15,000 Letter of Agreement Contractual Services Agreement- requires City Attorney approval Contractual Services Agreement- requires City Manager approval and a resolution for City Council approval Risk Management Claims: Less than $50,000 City Manager signs off claims Brockman shared that his research to-date on other purchasing policies is comparable to the City's with exception to the threshold amounts where the City appears low within the $3K-25K range, and requiring informal bidding. Brockman also shared that since the price for services, supplies and materials has gone up, it would be advantageous to increase the threshold amounts. Increasing the amounts will lessen the waiting period, reduce advertising costs, and minimize other work involved when bidding is required. Council Member Starosciak pointed out that if the City Manager and City Attorney can sign off on a $50,000 liability claim against the City; it would appear that the City Manager should also be able to sign off on purchases up to $50,000. In response to a question on whether bidding is waived by breaking a purchase into smaller components, Brockman explained that materials and supplies are different because department staffs are not allowed to break up potential orders to avoid the bidding process. In response to Council Member Stephens question regarding when is a bid advertised, Brockman explained that in accordance with City policy and Municipal Code, formal bids are advertised in the Daily Review newspaper, and posted on the City's website when the contract is above $25,000. Grant shared her concern regarding prior professional service contracts on: (1) agreements that were not approved by City Council, (2) where the purchase order amount continued to increase without any prior approval, and (3) with regard to equity distribution, as to why a bid may have been awarded versus the how much the services cost. She also would like a report on the local bidder's preference if any. 2 G\FJNCO\1M\200607 Mtnules\CITY _ COUNClI.JIN ANCEJ~OMMITTEE OG] () 07 do"