Finance Committee
November 1, 2022

Enhancing the City’s
Ability to Handle
Routine Purchasing and
Public Works Projects
Finance Committee
November 1, 2022
Objectives
• Review current purchasing limits
• Consider procurement challenges
• Seek increase in purchasing thresholds to make acquisition of goods and services more efficient
Current Contracting and Purchasing Limits
• Contracts and purchases:
• City Manager approves $50,000 or less
• City Council approves over $50,001
• Bidding
• Small Purchases (no bidding): $5,000 or less
• Informal: $5,001 to $25,000
• Formal: $25,001 or more
Procurement Challenges
• Pandemic created issues are still impacting procurement • Supply chain
• Low supply due to logistical issues in manufacturing and production
• High demand from competing customers driving up prices • Staffing
• The City is still recovering from low staffing levels • Hiring is still difficult in a highly competitive labor market Proposed Changes
• Contracts and purchases:
• City Manager approves $50,000 $100,000 or less
• City Council approves over $50,000 $100,001
• Bidding
• Small Purchases (no bidding): $5,000 $60,000 or less
• Informal: $5,001 to $25,000 $60,001 to $200,000
• Formal: $25,000 $200,001 or more
• Would not apply to capital projects
Benefits of Proposed Changes
• Purchasing process would be more efficient while staffing is still low
• Timing to award contracts and make purchases would be reduced • Expedite acquisition of goods and services
• Make the City more competitive as a customer
• Mitigate global supply chain issues
• Expedite Services
• Contracting process would speed up
• Project delivery more efficient
• Simplified administration
Questions