SR 05:208 - Laserfiche WebLink

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 purchases range from office supplies to automobile parts to fertilizers and computer equipment. While one vendor may be used, the products purchased 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 purchases 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 purchases are from sole source vendors or tied to a particular purchasing contract. As an example, copier supplies are purchased 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 was appropriate to forward these to the City Council for approval prior to issuing a purchase order. A list of these vendors was approved by Council at its meeting of June 21, 2005. Subsequently, four additional vendors have been identified, and staff is now seeking approval for these additional 2005-06 open purchase orders. As indicated, because it uncertain what the total value of the purchase will be, Council approval may not be necessary. 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 four vendors and their products, projected purchase amount and the justification for purchasing in this manner. FINANCIAL IMPACT No significant fiscal impact results from this action, as these are budgeted items Respectfully submitted, Steven Bocian Susan Rossi Nelson Fialho Deputy City Manager Director of Finance City Manager Attachment SR 05:208 Page 2