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-2- <br />The above were just two of the many instances in which <br />we believe that the present purchasing policy has inadvertantl <br />caused inefficiencies in the City operations. Most of these <br />instances have involved routine maintenance operations <br />which have been budgeted for. We feel that it is not <br />cost effective to require the issuance of purchase orders <br />for goods and services which exceed $25.00 and which are <br />budgeted. That limit is too low. We recommend that <br />section 3.02 be changed to require purchase orders only <br />for goods and services which are estimated to exceed $100.00. <br />We further recommend that for purchases of goods and services <br />which have been approved in the budget and which are estimated <br />not to exceed $500.00 a purchase order may be issued upon the <br />signature of a department head. Countersignina of purchase <br />orders by the Clerk -Administrator or Finance Director would <br />be required for purchases which are estimated to exceed $500. <br />A very large number of the purchase orders that are presently <br />issued are for routine maintenance items costing less than <br />$500 and which have been budgeted. We do not see any <br />benefit to the City in countersigning a purchase order for <br />goods or services which have been budgeted, are for routine <br />maintenance, and under $500. Allowing issue of purchase <br />orders for those items by the department heads signature <br />would make our operations more efficient. Purchases would • <br />still be recorded and monitored under this system and thus <br />the purposes of a purchasing policy would still be served. <br />We await Council's direction on this matter. Should you <br />have any questions do not hestitate to contact us. <br />mb <br />Attachment <br />• <br />