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HomeMy WebLinkAbout1997-06-23 97-299 ORDER^OUNCE. ACTION Date: June 23, 1997 Item No. 97-299 ItansSubject: Amendment to City Proanemem Pofiry Responsible Department: Purchae ng Courmereary: It has been 17 years since the limit for Field Purchase Orders has changal. In 1980 the limit was increased Gom $65 00 to $100.00. On lasmary 10, 1994 the City Council adopted a completely revised and updated Procurement Policy but did not change the lisrdt fm field Purchase Orders. The attached mono to the Finance Committee outlines the rationale to now increase the limit to $200.00. This change was reviewed by the Finance Commhtee on fare 16, 1997 and reheated to Council with a secovunmdetion for approval. Departure Managers Comments: ffa osv4 6,%o// `"� City Mmmger�I - Associatedlnfonnstion: Memo to Finance Committee. Budget Approval: Finance Director Lege) Approval'. city Solicitor yu Introduced For: h Passage_ FirstReading _Referral 9]-299 Aceipred to Commence Saldacci June 23, 1997 CITY OF BANGOR (TITLE.) i®rbtr, Amenkn OfCstyofBaagor Pracmement Policy By tM Cily CoumA of W City ofBaayur: ORDERED, THAT the City of Bangor Procurement Poficy Article 3. Section 101. Paragraph 0. Small Purchases vesting up to $100.00 shall be amended as follows: Section }100 Small Purchases (4) Saudi purchases coating up to 5200.00. Purchases of up to $200.00 may use a single selection, after confect, based on reasonable price, stock availability and delivery requirements. Mevaver the figure $100.00 appears it is changed to $200.00. IN CITY COUNCIL June 23. I997 Passed F ETTY 8&( 9]-299 O RRER Title, Amendment of City of Bangor Procurement Policy ...................................... .....�...�...�...�.[../............. ... (�WpN Andygue U. AunA to R"SicPflM Councilman 9]-299 Memorandum To: Famous Committee From.- DncidN Pellegriw,, PurchmangAgenr Dare: D&IW1997 Subject: Amerrdrrenr oJCiry PurcMn'ng Reguhtiorzs On May 12, 1980 the City Council approved Council Order 175 AH Earths amendment of the City's Purchasing regulations. In thatcouracil order the purchase linty for a Field Purchase Order (FPO) was raised from$65,00 to $100.00. The Field Purchase Outer(copy attached) is used by authorized employees to purchase supply items without checking prices (although it is encouraged). The formal language in our PracvremeM Policy reads: Small Purchases costing up to $100.00. Prinhma of up to $100.00 may use a single selection, after contact, based on reasonable price, stock availability and delivery requirements. At a recent meeting at Public Works I was responded to review the $100 OO limit and strongly encouraged to increase it to a least $200.00. The Public Works staff noted numerous instances where the $100.00limit was burdensome and impacted their ability to get the supplies they needed- especially during off business hour. I have reviewed than request and since the the limit should be raised. The raze of inflation from 1980 to the present is approximately 100%- 9&2% to 103.8% reporting upon the Consumer Price Index used and the publication. If we adryrt the aurent limit of $100.00 to the CPI it will double to$20000. The bureau is the FPO limit will also reduce the annual volume of regular purchaas orders that flow through the Pentamation system. About 20% of approximately 3,600 purchase orders are between $10000 and $200 00. I have also reviewed the other Procurement Policy limits of $1,000.00 (requiring fomml requests for quotes) and $5,000.00 (requiring formal bids) and I do not recommend my changes Nthese limits. See attached summary of the City's Procurement Policy that was adopted January 1% 1994. By this memorandum l request the the City Procure runt Policy Article 3 Source Selection and Contract Formation, Section 104. Small Purchases, Paragraph 4, Small Purchases costing up to $100.00 shall be amended as follows: Section 104 Small Purchases: (4) Small purchases costing up to $200.00. Purchases of up m $200.00 may use single selection, after contaM, based on reasonable price, stock availability and delivery requirements Whenever the figure $100.00 appears it is changed to $200.00.