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4. Purchasing Procedures <br /> Price thresholds apply to total contract or purchase order prices for each separate <br /> vendor's contract or purchase order, even if vendor has multiple contracts or purchase <br /> orders with different departments or different projects within the same department.4 For <br /> multi- year contracts (but the maximum contract term should not exceed five years), the <br /> price category should be determined using total, rather than annual, contract price. 5 <br /> Purchases exempt from these procedures include utilities (e.g. water, electricity, and <br /> telephone), pass-through payments collected on behalf of a third party, goods sold by <br /> government agencies, employee benefit payments, legal services, purchases related to <br /> travel and training, and emergency procurement. Contact the Finance Department for <br /> details and further information. <br /> Some purchases may require approval by other City employees in addition to those <br /> listed in the following procedures. For example, a software purchase may require the <br /> approval of the Director of Information Technology. If your purchase falls into a <br /> category that requires special approval,the City' s financial system will notify the City <br /> employee responsible for the procurement. <br /> 4 For example,if Library&Rec.has a$55,000 purchase order(PO)with Acme Printing for the Summer Rec. <br /> Guide,that would require price quotes and City Manager(CM)approval.Then,if Economic Dev.has a$75,000 PO <br /> with Acme Printing for a summer newsletter,that also requires price quotes and CM approval.The$55,000 and <br /> $75,000 are not cumulated to trigger competitive bidding and council approval.Similarly,if Library&Rec.has <br /> another PO with Acme Printing that same fiscal year for FHAC programs for$65,000,the$55,000 rec guide and <br /> $65,000 FHAC programs are treated as separate and distinct contracts or purchase orders;again,these PO amounts <br /> are not cumulative. <br /> 5 Multi-year contracts may also include an inflation adjustment provisions based on the Consumer Price Index(or other <br /> inflation index),language about annual rate adjustments to which both parties agree in advance,or rate changes based on <br /> changes in State prevailing wages. <br /> Purchasing Procedures and Manual 8 <br />