It has been approximately 18 years since the last time authorization levels for the City Manager to execute purchases and contracts without further City Council action were changed. In that time, the City's population and budget have grown considerably.
In consultation with the City Attorney, staff is recommending amendments to subsection (d), (f), and (h) and the addition of subsection (k) to Section 2-102 of the Code of Ordinances, relating to the authority of the City Manager to make purchases, execute contracts and approve change orders and contracts for expenditures without further approval of the City Council. The following changes are recommended:
In subsection (d), add: "...or in the capital improvement program provided there are funds available from general obligation or revenue bonds, certificates of obligation, type A and/or type B sales tax, state or federal grants..."
Explanation: Some capital expenditures are not listed specifically in the budget. Instead, they are outlined in the 5 year Capital Improvement Program (CIP). This change to subsection (d) will enable the City Manager to authorize purchases up to $100,000 that are in the CIP provided there are funds available from the specific sources listed.
In subsection (f), change $15,000 to $50,000.
Explanation: This subsection states that no expenditure exceeding fifteen thousand dollars ($15,000.00) or a greater amount if allowed by state law, may be made without competitive bids. State law now allows for purchases up to fifty thousand dollars ($50,000.00), so this amount is being updated to reflect current state law.
In subsection (h), add "...approval of a purchasing manual or policy..."
Explanation: This addition simply adds approval of a purchasing manual or policy to the list of implied authorities delegated to the City Manager.
The addition of subsection (k) reads: An expenditure not to exceed $100,000.00, if provided in the budget, or in the capital improvement program provided there are funds available from general obligation or revenue bonds, certificates of obligation, type A and/or type B sales tax, state or federal grants, may be authorized by the city manager by administrative action without further city council action.
Explanation: This added subsection expressly gives the City Manager authorization to approve expenditures up to $100,000 without further City Council action if the expenditure is provided for in the budget, or if the expenditure is in the CIP and funds are available from one of the listed sources.
The purpose for the requested change in authority level is to streamline and expedite routine purchases and contracts. Over the years, as costs have increased and city services have expanded, the amount of items presented to City Council (typically on the Consent Agenda) have grown considerably. In many cases, project delivery and citizen services can be slightly delayed due to the necessity of routing any expenditure greater than $50,000 through the City Council Agenda process. Items of public interest, or purchases that require any type of policy discussion will continue to be brought to the City Council regardless of the amount of expenditure.
The Finance department will prepare a list of all purchases greater than $50,000, but less than the new $100,000 threshold and will provide an executive summary of these purchases to City Council on an ongoing basis.