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TO: Mayor & Council `4 <br /> FROM: Don Brager, Finance Director - Treasurer <br /> 110 DATE: June 13, 1990 <br /> SUBJECT: Revised Purchasing Policy <br /> One of the ideas that originated with the Council - Staff team <br /> building sessions was that Council would entertain ideas from <br /> Staff to ease administrative constraints. An area that would <br /> make Staff's job a little easier to perform is purchasing <br /> policy. It seems redundant for Staff to request approval for <br /> purchases of items which Council has already approved by <br /> adopting the annual budget. It is Staff's feeling that if an <br /> item has been included in the budget and the cost of that item <br /> is under $15,000.00 (if an item is over $15, 000. 00 State laws <br /> require advertising for bids and award of the purchase by <br /> Council) an approval from Council is unnecessary since the item <br /> was previously approved when the budget was adopted. <br /> Attached is a draft of a proposed revision to the City's <br /> purchasing policy. The policy proposes the following: <br /> 1) Purchases under $1, 000. 00 may be authorized by the head <br /> of the department for whichh the expenditure has been <br /> budgeted. Quotations are encouraged but not required. <br /> 2) Purchases from $1, 000.00 to $5, 000.00 may be authorized <br /> by the department head after obtaining two or more <br /> written or verbal quotations for items that have been <br /> specifically included in the budget. <br /> 3) Purchases from $5, 000.00 to $15, 000.00 may be authorized <br /> by the Clerk - Adminstrator or the Finance Director <br /> after the department head has obtained two or more written <br /> or verbal quotations for items which have been specifically <br /> included in the budget. <br /> Items which were not specifically included in the budget would <br /> be approved or disapproved by Council as has been past practice. <br /> Present policy requires Council approval for purchases that <br /> exceed $2,500. 00 whether they have been included in the budget <br /> or not. <br /> Attached is a memo from Ric Minetor, Director of Public Works, <br /> which requests a modification to the purchasing policy regarding <br /> change orders. Ric proposes that the department head in charge <br /> of the project be given authorization to sign change orders up <br /> to the amount of contingency that has been approved in the <br /> contract which would have been rpeviously approved by Council. <br /> Staff seeks Council's direction on these matters. <br />