(A) Purchasing categories. The city classifies purchasing categories. These categories are based on the dollar amount and type of purchases. Each category establishes a separate purchasing limit, authorization level, and procedure. These categories are as follows:
Category | Limitation | Authorization |
Category | Limitation | Authorization |
Small purchases | Less than $5,000 | Department head |
Intermediate purchases | $5,000 to $50,000 | Purchasing agent |
Major purchases | $50,000 or more | City Council |
Professional services | Less than $10,000 | City Manager |
$10,000 or more | City Council | |
Change orders | $10,000 or less | City Manager |
$10,000 or more | City Council | |
(B) Purchasing authorization.
(1) Small purchases.
(a) Purchases of supplies, equipment, or services less than $5,000 may be made by the department head (or his or her authorized agent) on the open market.
(b) The department head (or his or her authorized agent) is responsible to check for competitive pricing for all purchases and shall retain documentation of pricing and/or proposals for each transaction for a period of 36 months.
(2) Intermediate purchases.
(a) In cooperation with the department head, the purchasing agent shall make purchases of supplies, equipment, or services between $5,000 and up to $50,000.
(b) At the option of the purchasing agent, purchases may be made by following one of these three processes:
1. Request for quote;
2. Invitation for bids; or
3. Request for proposals.
(c) Bids/proposals shall be obtained in writing prior to the acquisition of the requested supplies, equipment, or services.
(d) If less than three bids/proposals are received, the City Manager will consult with the City Council before proceeding with the award of bids/proposals.
(3) Major purchases.
(a) In cooperation with the department head, the purchasing agent shall prepare, review, and present recommendations to the City Manager for purchases of supplies, equipment, or services in excess of $50,000.
(b) At the option of the City Manager, purchases may be made by following one of these two processes:
1. Invitation for bids; or
2. Request for proposals.
(C) Purchase order required. Purchase orders shall accompany all purchases except for those made by use of a city-issued purchasing card.
(Ord. 36-2022, passed 1-4-2023)