05-12-26 City Council Workshop Packet

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31 | Page Purchasing Thresholds All expenditures up to $25,000 must be within the limits established by the department budget. There are six basic thresholds of dollar amounts that have been established either by policy, City Code or statutory authority for the purpose of purchasing City goods and services. Purchasing Thresholds MATERIALS – SUPPLIES – EQUIPMENT - NON-PROFESSIONAL SERVICES - CONSTRUCTION Purchase Level (1)(2) Purchase Process Required Approving Authority Notes $0 - $25,000 Quotes Department Head • At the point of sale, the receipt must be signed by the individual purchasing the item. • The receipt must be coded prior to submission to Finance. • For an item between $0 and $10,000, Quotes are not required. • Purchases can be made on the open market and verbal quotes are optional. • For an item costing between $10,001 and $25,000, the shall request price quotations from at least two sources, when practical, and shall place the order at the lowest quoted. • Products or services quoted shall be the same or similar of comparable quality from each vendor. $25,001 - $50,000 Quotes City Manager • The City Council will grant the City Manager the authority to make or execute purchase contracts for routine services, equipment, supplies and commodities for which the cost does not exceed twenty thousand dollars ($50,000). • The City shall make the contract by sealed bids or by direct negotiation, by obtaining two or more quotations for the purchase, when practical, and without advertising for bids or otherwise complying with the requirements of competitive bidding. • Products or services quoted shall be the same or similar and of comparable quality from each vendor. • The City must consider the availability, price and quality of supplies, materials, or equipment available through the state's cooperative purchasing venture before purchasing through another source. • If a cooperative purchasing agreement is in place, quotations are not needed. $50,001 - $175,000 Council Resolution City Council • The City shall make the contract by sealed bids or by direct negotiation, by obtaining two or more quotations for the purchase, when practical, and without advertising for bids or otherwise complying with the requirements of competitive bidding. • Products or services quoted shall be the same or similar and of comparable quality from each vendor. • The City must consider the availability, price and quality of supplies, materials, or equipment available through the state's cooperative purchasing venture before purchasing through another source. • If a cooperative purchasing agreement is in place, quotations are not needed. Above $175,000 Sealed Bids/ Council Resolution City Council • Competitive bidding is required for the following contracts: o Contracts for the sale, purchase, or rental of supplies, materials, or equipment. o Contracts for the construction, alteration, repair, or maintenance of real or personal property. • The City must consider the availability, price and quality of supplies, materials, or equipment 1The estimated cost is close to one of the thresholds, you will follow the requirements for the higher threshold. 2The purchase level is based on the gross purchase price; not net of an asset trade-in. 3 When quotes are received, they will be kept on file for at least one year 4 Purchase order required only for capital purchases (>$5000).