City Council Agenda Report
June 18, 2024
TO: Honorable City Council
FROM: Jesus M. Gomez, City Manager
BY: Jana Stuard, Director of Finance/City Treasurer
Devon Jimenez, Controller/Deputy City Treasurer
Jennifer Hernandez, Senior Management Analyst
SUBJECT: RESOLUTION NO. 24-28 - ADOPTING PURCHASING POLICY FOR FISCAL YEAR 2024/25
Background:
Annually, the City is required to update its Purchasing Policy in accordance with the Norwalk Municipal Code (NMC) Chapter 3.16.
In order to provide effective administration of the purchasing ordinance (NMC Chapter 3.16), the Purchasing Policy is updated on an annual basis. This update may include competitive bidding, purchasing practices, related administrative authority, etc. One such change to be considered each year is a change in the Purchase Authority authorization limit – the limit for which purchases may be approved of by the Purchasing Authority (City Manager) without City Council approval, as long as there is available funding in the Adopted Budget. In accordance with Section 3.16.060 of the NMC, the Purchasing Authority authorization limit is to be “automatically adjusted on July 1, 2021 and each July 1st annually thereafter based upon the percentage change in the Consumer Price Index (“CPI”) for the Los Angeles-Anaheim-Riverside area as published by the U.S. Department of Labor from March of the prior year to March of the current year.” The attached Purchasing Policy, Exhibit A to Resolution No. 24-28, reflects the annual update to the Purchasing Policy for Fiscal Year (FY) 2024/25, effective July 1, 2024.
The Purchasing Policy for FY 2024/25 has the following changes:
•Authorization Limits
oPurchasing Authority (City Manager) authorization limit is established at $39,400. This represents an increase of 3.9% from the FY 2024 level of $37,900 and is based on
City Council June 18, 2024
Purchasing Policy FY 25 Page No. 2
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4 the increase from the March 2023 to March 2024 Consumer Price Index (CPI) for the Los Angeles-Long Beach-Anaheim area, as required by NMC Section 3.16.060. oCity expenditures of $8,700 or less, in any one transaction, will not require a purchase order. This represents a 3.6% increase from the prior level of $8,400, based on the increase in CPI and rounded to the nearest hundred.
Fiscal Impact:
N/A
Citizens Advised:
N/A
Strategic Plan 2023 Implementation:
The recommended action will further the City’s Strategic Plan Goal 3: Partner with our stakeholders to create and sustain a resilient and economically prosperous City with opportunity for everyone.
Recommended Action:
Staff recommends City Council adopt Resolution No. 24-28, A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF NORWALK ADOPTING THE PURCHASING POLICY FOR FISCAL YEAR 2024/25.
Attachments:
1. Resolution No. 24-28
2. Purchasing Policy