Business Agenda Item 4a
STAFF REPORT
City Council Business Agenda Item
DATE: October 6, 2025
TO: Honorable Mayor and Council Members
FROM: Aaron Felmlee, Finance Director
THROUGH: Amy Nilsen, City Manager
SUBJECT: Approve the Revisions to the Purchasing Procedures Section of the City of Fortuna’s Administrative Policies and Procedures Manual; Resolution 2025- 21
STAFF RECOMMENDATION:
Approve the Revisions to the Purchasing Procedures Section of the City of Fortuna’s Administrative Policies and Procedures Manual; Resolution 2025-21.
EXECUTIVE SUMMARY:
Procurement involves the process of selecting and vetting vendors, establishing payment terms, strategically negotiating contracts, and the actual purchasing of goods. Procurement is concerned with acquiring all goods, services, and work vital to an organization. The City procurement actions are governed by state and federal laws, Fortuna Municipal Code, and by the purchasing policies established by the City Council.
The City of Fortuna adopted its most recent version of the Purchasing Procedures policy in October of 2021. It is good practice to review and revise City Administrative Policies on a recurring basis.
The Purchasing Policy is policy number 4.2 within the Administrative Policies and Procedures Manual. As part of the periodic review of policies staff identified that the current purchasing policies and procedures would benefit from an update to reflect the higher costs of goods and services and to reflect the proposed updates to the Fortuna Municipal Code (FMC) Section 2.50.
First, to align with the proposed updates to FMC section 2.50 changes to the definition and limits to prevailing wages are included in the attached draft.
Second, staff are proposing the below changes to the purchasing approval limits and comparative cost threshold. These changes will allow staff to move quicker through the procurement process by not having to get Council approval prior to the purchase of goods or services. Council will still receive the disbursement report at each Council meeting so they can review the purchases. • Increase Supervisor limit from $1,000 to $2,000
• Increase Department Head limit from $5,000 to $10,000 • Increase City Manager limit from $30,000 to $100,000
Business Agenda Item 4a
• Increase Comparative Cost Form threshold from $2,500 to $5,000 It should be noted that although the purchasing approval limits are increasing the Council still retains the full authority on what Capital items and Capital Improvement Projects are purchased/completed through the adoption of the Annual Budget. Staff will not be able to purchase something not included in the annually adopted budget even if it is below the above thresholds.
Finally, staff are recommending to align the definition of who a Supervisor is to our current City organization chart. Those changes include:
• Remove Police Office Supervisor from Supervisor list
• Add Police Lieutenant to Supervisor list
A draft purchasing policy is attached for Council review.
FISCAL IMPACT
Streamlining the City’s Purchasing Procedures where possible and practicable will result in increased efficiency in Department operations through reduced impacts on staff time to procure goods and services.
RECOMMENDED COUNCIL ACTION:
1. Receive staff report and review questions with staff;
2. Open Public Comment
3. Close Public Comment
4. Motion to adopt Resolution 2025-21; and read by title only. Roll Call vote ATTACHMENTS:
Attachment A: Red-lined Draft Purchasing Procedures
Attachment B: Resolution 2025-21 A Resolution of the City Council of the City Of Fortuna Approving the Purchasing Procedures for Inclusion in the City of Fortuna’s Administrative Policies & Procedures Manual