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Consideration of amendment to Consolidated Purchasing Practices policy
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Submitted by:
John Ruggini
Department:
Finance
A. Issue
The current Consolidated Purchasing Practices, revised February, 2024, requires additional clarification related to Section 12. Change Orders and Council Approval in order to streamline processes and avoid confusion.
B. Background/Options
Our current document has undergone several modifications to include procedures for Professional Consulting Services, Conflicts of Interest, Debarment and the use of Disadvantaged Business Enterprises.
In a review of our internal policies, we identified our current change order requirements as overly complicated and confusing. Currently, Council approval is required if the amount of any single change order is greater than $25,000 or the cumulative total is greater than 15% of the contract amount.
In conferring with the City Attorney, it was determined that state statute does not require the $25,000 threshold. In conferring with City Administration, the Purchasing Manager and several Department Directors, it was determined that the 15% threshold was more important and the $25,000 threshold did not add sufficient benefit to justify the additional time of taking the item to the Common Council. In addition, having the dollar and percentage thresholds was confusing and redundant resulting in items being brought unnecessarily to Council for approval.
Below is the proposed change in red-line:
12. CHANGE ORDERS
a. All Change Orders require Department Director approval through workflow in Tyler Munis
b. Council Approval is required for change orders that:
i. Result in a new TOTAL purchase order amount that is greater than $25,000 (this limit is $50,000 for professional consulting services.)
ii. Change order exceeds $25,000 and in the case of Professional Consulting services, the total value of the Purchase Order will be greater than $50,000
iii. Cumulative total of change orders exc...
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