HomeMy WebLinkAbout9F - City Mgr's Purchasing
INTRODUCTION:
DISCUSSION:
STAFF AGENDA REPORT
JUNE 3, 2002
9F
RALPH TESCHNER, FINANCE DIRECTOR
CONSIDER APPROVAL OF AN ORDINANCE AMENDING
PRIOR LAKE CITY CODE SECTION 106.500 TO INCREASE
THE CITY MANAGER'S PURCHASING AUTHORITY
The purpose for the proposed ordinance change is to increase the
purchasing authority of the City Manager consistent with Minnesota
Statute 4 7l.345. This statute establishes uniform municipal
contracting law for municipalities.
The bid threshold was increased by the legislature in 2000 from
$25,000 to $50,000 in response to inflationary increases.
Specifically any purchase of $50,000 or more is subject to bidding
procedures set forth by statute. If the amount of a contract is
estimated to exceed $10,000 but not to exceed $50,000 for
municipalities larger than 2,500 in population, the contract may be
made either upon sealed bids or by obtaining two or more
quotations. Corresponding to this change in bid threshold, the City
Council on May 7, 2001 approved Resolution 01-52 whereby a
formal purchasing policy was adopted that incorporated this
increase. However, the approval authority for purchase contracts
was left unchanged within the City Code at an amount not to exceed
$15,000.
Under the proposed change in the attached ordinance, the City
Manager would have the authority to let _purchase contracts for
routine service, equipment and supplies up to an amount less than
$50,000. As required by Section (6) of Prior Lake City Code
106.500 "The expenditure must be within the limits established by
the department budget ". This is an important feature to distinguish
since the expenditure already takes place within the parameters of a
council approved operating budget. The purchase acquisition
process can be significantly streamlined especially from the
standpoint of time. Basically the City can become more responsive
in tem1S of customer service.
Also, to facilitate less administrative time necessary to complete
small purchase orders, the purchase level under a blanket purchase
order is proposed to be increased within the City's official Purchase
Policy Guidelines from $50.00 to $100.00. Outlined below is a
purchase policy guide index that indicates the required approving
authority. (Proposed changes are shaded.)
H: IPURCHASElAgendapurchase.DOC
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
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$50,000 and : Bids/Cooperative Agreements : City Council :
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* Written quotes or a completed quote form is to be attached where there is
more than one feasible source.
RECOMMENDATION: Staff would recommend adoption of An Ordinance Amending Prior
Lake City Code Section 106.500 To Increase The City Manager's
Purchasing Authority. This amendment will not change the fact that
the City Manager and supervisors will continue to follow the city
purchasing policy guidelines.
ACTION REQUIRED: A motion to approve An Ordinance Amending Prior Lake City Code
Section 106.500 0 Increase The City Manager's Purchasing
A orit))
REVIEWED BY:
Attachments:
1. A motion to approve An Ordinance Amending Prior Lake City
Code Section 106.500 To Increase The City Manager's Purchasing
Authority
H: IPURCHASElAgendapurchase. DOC
CITY OF PRIOR LAKE
ORDINANCE 02~ /0
AN ORDINANCE AMENDING SECTION 106.500 (5) OF THE
PRIOR LAKE CITY CODE TO INCREASE THE CITY MANAGER'S PURCHASING AUTHORITY.
The City Council of the City of Prior Lake does hereby ordain:
1. Section 105.600 of the Prior Lake City Code is hereby amended only as set forth below:
105.600:
(5) The City Manager shall have authority to make or let purchase contracts for routine
service, equipment or supplies for which the cost is less than Fifty Thousand Dollars
($50,000,00) does not exceed fifteen thousand dollars ($15,000,00) .
This ordinance shall become effective upon its passage and publication.
Passed by the City Council of the City of Prior Lake on June 3. 2002.
ATTEST:
City Manager
Mayor
r:\ordinanc\purchasing amd.doc Page I
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
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