Item 8AItem 8A Resolution 07-054, Approving a new purchasing policy
October 2, 2007
Background
Current policy adopted June 21, 2005;
Structured around manual processes;
Complicated, confusing text;
Recommended Changes
Simplify policy language-user friendly;
Technology controls support policy;
Modified bidding requirements;
Increased departmental accountability;
Simplify Policy
Flowcharts
Bid Process
Requisition and Purchase Order Process
Language
Non-accountants can comprehend
Technology Controls
Established workflow
Non-discretionary process
Bidding requirements
City limits
State limits
Budget restrictions
Bidding Requirements
Current
$500-$900 (verbal quotes)
$1,000-$49,999 (written quotes)¹
$50,000 and above (Sealed bid)²
¹City Manager approval required on all purchases $5,000 and above
²City Council approval required
Recommended
$2,500 or less (no quotes)
$2,501-$9,999 (written quotes)¹
$10,000-$49,999 (written quotes or informal sealed bids)¹
$50,000 and above (Sealed bid)²
¹City Manager approval required on all purchases $5,000 and above
²City Council approval required
Accountability
Policy requires accountability of department directors;
Strengthen internal controls
Proactive Detection Techniques Analysis;
Periodic random reviews.
Updated Policy
Provides user-friendly guide for employees;
Supported by technology controls;
Provide flexibility for good pricing, with additional accountability for purchases.
QUESTIONS?
Bidding Parameters
7 cities responded to survey
3 Cities require quotes on purchases $500 or less;
1 City require quotes on purchases $1,500 or less;
3 Cities require quotes on purchases $2,000-$3,000 or less;
Examples
Over 75% of all expenditures are above $500 for various departments
Limited vendors
Delay in completed projects