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TO: Mayor & Council s L %�1 /�11 <br />FROM: Don Brager, Finance Director - Treasurer <br />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 approvalfrom <br />Council <br />len the bis unnecessary <br />set was adopteince the item <br />was previously approved <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 t0 $5,0o0.00 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 oo0.00 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 <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 />