Laserfiche WebLink
Purchasing Procedures and Manual 8 <br />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 /> <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 /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <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 /> <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 />Page 136 of 373