SR 05:180 - Laserfiche WebLink

authorized by the City Manager. As a result, the level of authorization is determined not only by the value of the purchase, but by the result of the bidding process. As part of the City's annual purchasing process, individual vendors are provided with purchase orders authorizing departments to make numerous as-needed purchases on a regular basis throughout the year. These pumhases range from office supplies to automobile parts to fertilizers and computer equipment. While one vendor may be used, the products pumhased from the vendor vary. As an example, a firm operating in accordance with an open purchase order for office supplies may, in fact, have many individual sales with the City, all of which are valued at less than a few hundred dollars. Because the individual pumhases have values that are within approved purchasing limits, they are generally authorized by mid-managers or line staff authorized to make the purchase. Further, many of these pumhases are from sole source vendors or tied to a particular purchasing contract. As an example, copier supplies are pumhased from the product dealer/vendor based on the equipment or the product lease agreement in place with the City. In addition, collectively, the value of the purchases on an annual basis does not exceed $50,000, which is the amount that could require City Council approval. In reviewing this year's listing of open purchase orders, staff identified a number of vendors that, based on previous activity, will provide products that collectively may be in excess of $50,000. As a result, staff determined that it is appropriate to forward these to the City Council for approval prior to issuing a purchase order. As indicated, because it uncertain what the total value of the purchase will be, Council approval may not be necessary. Further, the individual purchases are generally less than $5,000, which does not require competitive bidding. However, in an attempt to approve this type of activity in a public setting, staff has determined the matter should be placed on the agenda. Attachment A includes a listing of the vendors, products, projected purchase amount and the justification for purchasing in this manner. The attachment does not include products that are part of a previously approved purchase agreement. As an example, because the City is required by agreement to utilize Xerox supplies and services on Xerox copy machines, Xerox is not on the list. After reviewing the annual listing of open purchase orders requested by departments, staff determined that it will revise the Purchasing Manual to incorporate a new process for items purchased throughout the year that individually are valued at less than $5,000 (a level that requires comparative pricing but not product bidding), but collectively, on an annual basis, exceed $50,000. (A value that does require competitive bidding and potentially City Council approval.) Staff's current concept is to conduct a competitive bidding process for vendors that are not sole source vendors or tied to service contracts with the expectation of awarding two- or three-year contracts for these products. In addition, the policy will have some provisions to determine sole source vendor status based on the City's particular needs or standards. As an example, while there may be multiple vendors selling computer network equipment, staff can establish a brand name based on internal needs. Staff intends to have this process in place SR 05:180 Page 2