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HomeMy WebLinkAboutStudy Session Packet 10/17/2011STUDY SESSION AGENDA CITY COUNCIL MEETING CITY OF WHEAT RIDGE, COLORADO 7500 W. 291h Ave. Wheat Ridge CO October 17. 2011 6:30p.m. Individuals with disabilities are encouraged to participate in all public meetings sponsored by the City of Wheat Ridge. Call Heather Geyer, Public Information Officer at 303-235-2826 at least one week in advance of a meeting if you are interested in participating and need inclusion assistance. APPROVAL OF AGENDA .1. Staff Report( s) a) Run-off Election/Election Commission 2. City Purchasing Policy ~ A ,... r-City of ~Wheat&!ge ~ADMINISTRATIVE SERVICES TO: THROUGH: FROM: DATE: SUBJECT: Memorandum Mayor and City Council (\ L Patrick Goff, City Manager W Heather Geyer, Administrative Services Director October 10,2011 (For October 17,2011 Study Session) Proposed Changes to Purchasing Acquisition Limits and Signature Approval Levels The purpose of this memorandum is to outline recommendations to the City's purchasing guidelines, specifically the following three areas: 1) purchasing card single transaction limit, 2) purchasing acquisition limits for goods, and 3) signature approval levels. Staff is recommending changes to the City's purchasing guidelines in an effort to improve the City's responsiveness to both internal and external customers and to increase efficiencies in staff, with the overall goal of making the City more business-friendly with our purchasing practices. BACKGROUND The recommended changes below are aligned with the efforts the City has been making to create a least restrictive environment in our purchasing practices. The recommended changes outlined in this memorandum will help accomplish the following: • Streamline the purchasing and accounting processes for the purchase and payment of goods and services • Increase the revenue share in the purchasing card program • Reduce the number of purchase orders processed • Provide quicker payment to vendors • Use less paper, a positive effort to go "green" By increasing the speed at which vendor payments can be made, eliminating redundancy in the requisition and check cutting processes, and using purchasing cards instead of cutting checks, staff can focus on implementing new best practices such as environmentally preferable purchasing (EPP) which aligns the sustainability goals of cities to the purchasing function. The recommended changes will also assist staff in maintaining our current staffing level of 1.5 FTEs in the purchasing program. Table 1, Attachment 1, provides a breakdown of our current purchasing acquisition approval limits in the categories of goods, services, construction and the purchasing card. Limits are outlined in the categories of discretionary (small dollar), informal quotes, formal bids, and Purchasing Approval Limits October 10, 20111 Page 2 formal proposals. Each proposed recommendation is outlined below and on Table 2 in Attachment 1. Recommendation #1: Increase Purchasing Card Limit from $1,000 to $3,000 Currently, the purchasing card program has a single transaction limit of$1,000 and staff recommends the City increase this limit to $3,000. The current limit has been in place since 2002. This program was established in 1997 for discretionary purchases as shown in Table 1, Attachment 1. An example of a discretionary purchase is office supplies. Until 2001, the program was extremely under-utilized. All processes were manual and there was not a rebate incentive program. Therefore, purchasing cards were used infrequently and the program never grew. In 2001, the Purchasing & Contracting Division focused on ways to develop the program based on industry best practices expanding the use ofthe purchasing card in the following ways: • Audit and fraud controls put into place including monthly and annual audit • On-line monthly reconciliation for staff and training • Staff required to use purchasing cards for purchases up to $1,000 • Implemented the revenue share (rebate) program • Implemented a dedicated accounts payable payment card • Process utility payments • Created eight host (virtual) card accounts • Managed the number of cardholders (total 140 today) to utilize revenue share program while maintaining appropriate audit/internal controls • Currently implementing Control AP which is a streamline process to pay more invoices with the VISA card in lieu of a check • Created Emergency Homeland Security cards for emergency preparedness response Based on current approval limits, purchases for goods above $1,000 cannot be made using a purchasing card which has created a great limitation/inefficiency in the program. The impact of the inefficiency is directly seen by accounts payable having to process requisitions and cut checks for these small dollar amounts. Increasing the purchasing card limit will allow the C ity to further participate and realize rebates through the revenue program. The City is in the 5th year of the rebate program and continues to see successful results from this program. The first year of the program the City received over $9,000. In 2010, the total amount back to the City was over $13,000 and I expect this number to increase by year end 2011. The program has proven to be effective even in difficult economic times because the City increases rebate dollars by utilizing purchasing cards for small dollar transactions that have historically involved processing and cutting checks for amounts up to $1,000. Increasing the limit to $3,000 will allow the City to expand the rebate program and eliminate the inefficiency created by the current limit. Additionally, transactions for services are a small percentage of the purchasing card program and generally include subscriptions, memberships, registration, etc. This is an area with potential growth in the rebate program for use such as professional services, consulting, and attorney services. We expect to continue to see an increased demand by vendors to process payments via a purchasing card or ACH transaction. We have not used the purchasing card for construction payments due to the limits, the way partial payments are currently processed in ADG and the Purchasing Approval Limits October 10, 20 Ill Page 3 need to encumber funds. However, it is a viable method of payment which should be considered and utilized where applicable. These would be larger dollar amounts and is definitely a way to process payments efficiently, and again, increase the revenue share. In summary, the first recommended change is to increase the purchasing card single transaction limit from $1,000 to $3,000. Recommendation #2: Signature Approval Levels As outlined in Table 1, Attachment 1, the current signature approval levels for goods, services, and construction in the amount of$15,000 require City Council approval (see Attachment 2). Prior to June 08, 2009, the City Council signature approval limit was $25,000 and greater. Included with this memorandum is a summary ofthe purchasing limits used by participating agencies that are members of the Municipal Assembly of Procurement Officials (MAPO). These limits vary by entity and the data includes information from special districts, school districts, and the state purchasing office. In an effort to manage the increased workload that the purchasing division has experienced and streamline our processes for both internal and external customers, staff is recommending the signature approval levels be changed to the following tiered structure reflected in Table 2, Attachment 1: • Department Designee: Up to $4,999 • Department Director: $5,000-$14,999 • City Manager: $15,000-$34,999 • City Council: $35,000 & greater Recommendation #3: Purchasing Acquisition Limits for Goods In 2011, the Purchasing Division has processed 41 bids/proposals to date and managed 29 multi- year contracts. This is an increase from 2010. As the City moves forward with funding brick and mortar projects there is an impact to the Purchasing Division's workload because these projects require a tormal bid process that provides fair and open competition. More specifically, the time it takes to prepare bid documents, addendums, CAFs, POs and Agreements, conduct bid openings, demos, on-site visits, and pre-bid meetings, evaluate bids, check references, advertise, debrief vendors, and obtain insurance documentation and follow up, could be utilized addressing other cost saving measures for the City. Overall, the City has also seen raw material prices increase with costs directly passed onto the consumer. Staff is recommending changing the acquisition approval limits for "Goods" only. This change coupled with the City's effort to further utilize the purchasing card rebate program will allow the City to continue to obtain competitive pricing that results in cost savings to the City. Staff recommends purchasing acquisition limits tor goods be revised to the following: • Informal quotes for goods $3,001 -$25,000 • Formal bids for goods $25,001 and up Purchasing Approval Limits October 10, 20 Ill Page 4 RECOMMENDATIONS: Staff is seeking Council consensus on bringing forward the following changes to the Purchasing Policy at the October 24, 2011 City Council meeting: • Increase the purchasing card single transaction limit from $1,000 to $3,000 • Revise the purchasing signature approval levels to the following: o Department Designee: Up to $4,999 o Department Director: $5,000 -$14,999 o City Manager: $15,000 -$34,999 o City Council: $35,000 & greater • Revise the purchasing acquisition limits for goods to the following: o Informal quotes for goods $3,001 -$25,000 o Formal bids for goods $25,001 and up The City's Purchasing Policy was adopted by City Council via resolution and has been amended accordingly over time. Staff is seeking direction from Council on the above recommendations that will be brought forward tor formal approval at the October 24, 2011 City Council meeting in the form of a resolution. ATTACHMENTS: 1. Tables 1 & 2, reflecting current and proposed changes 2. Excerpt of City Council Minutes of 6/8/2009 3. MAPO Member Purchasing Limits Survey 2011 Table 1: Current Changes to the Purchasing Guidelines for Acquisition Limits and Signature Approval Levels Discretionary Informal Formal Bids Formal (small dollar) Quotes Proposals Goods Up to $3,000 $3,000-$9,999 $10,000 and over N/A • No PO needed • Must have three • Requires formal • Department choice written quotes advertising, public of vendor • Requires opening of bid • No quotes needed purchase • Requires purchase • May pay with VISA requisition with requisition with if purchase is under Director's Director's approval $1K approval • Requires City PO Required Manager's and Council approvals if over $15K Services $3,000-$9,999 $10,000 -$24,999 N/A $25,000 and over • Requires purchase • Must have three • Requires formal requisition with written quotes advertising and Director's approval • Requires public proposal • No PO needed if purchase opening purchase is under requisition with • Requires $3K Director's purchase • May pay with VISA if approval requisition with purchase is under • PO required Director's $1K • Requires City approval Manager's and • Requires City Council approval Manager's and if over $15K Council approval Construction Up to $24,999 $25,000-$49,999 $50,000 and over N/A • Requires purchase • Must have three • Requires formal requisition with written quotes advertising and Director's approval • Requires public bid opening if over $3K purchase • Requires purchase • Requires City requisition with requisition with Manager's and Director's Director's approval Council approval if approval • Requires City over $15K • Requires City Manager's and Manager's and Council approval Council approval Purchasing Up to $1,000 N/A N/A N/A Card • Cannot be associated with a PO based on current technology in ADG system Attachment 1 Signature Approval Levels City Manager: $15,000 and under City Council: $15,000& greater Table 2: Proposed Changes to the Purchasing Guidelines for Acquisition L imit s and Signature Approval Levels Purchase Discretionary Informal Formal Purchasing Signature Type (small dollar) Quotes Bids/Formal Card Approval Proposals Levels Goods Up to $3,000 $3,001 -$25,001 and up Up to Department • No PO needed $25,000 • Requires formal $3,000 Designee: Up • Department • Must have advertising, public single to $4,999 choice of three opening of bid transaction vendor written • Requires purchase Department • No quotes quotes requisition with limit Director: needed • Requires Director's approval $5,000- • May pay with purchase • Requires City $14,999 VISA if requisition Manager's purchase is $3k • PO Required approvals City Manager: or under $15,000- Services Up to $10,000 $10,001-$25,001 and up $34,999 • Requires $25,000 • Requires formal City Council: purchase • Must have advertising and $35,000 & requisition three written public proposal greater • No PO needed quotes opening if purchase is • Requires • Requires purchase $3k or under purchase requisition requisition • Requires PO • PO required Construction Up to $25,000 $25,001 -$50,001 and up • Requires $50,000 • Requires formal purchase • Must have advertising and requisition three written public bid opening • Requires PO quotes • Requires purchase • Requires requisition purchase • Requires PO requisition • Requires PO CITY COUNCIL MINUTES: June 08, 2009 Page -3- 5. Motion to adopt revised City Council Rules of Order and Procedure. Motion by Mrs. Sang to adopt the revised City Council Rules of Order and Procedure, Revised June 2009; seconded by Mr. Stites; carried 6-2 with Council Members Gokey and Womble voting No. 6. Resolution 27-2009 -approving an Intergovernmental Agreement between the Jefferson County DepartiT!ent of Health and Environment and the City of Wheat Ridge for cooperative Mosquito Management Program in an amount not-to- exceed $8,432.00. Resolution 27-2009 was introduced by Mrs. Langworthy. Motion by Mrs. Langworthy to approve Resolution 27 -2009; seconded by Mrs. Sang; carried 8-0. 7. Resolution 29-2009-amending Resolution 02-2001, and further amending Resolution 27-2002, Purchasing Policy. Resolution 29-2009 was introduced by Mr. Stites. Motion by Mr. Stites to approve Resolution 29-2009; seconded by Mrs. Sang. Motion by Ms. Berry to amend the Resolution such that expense items already in the approved City Budget over $25,000 and all purchases over $15,000 not in budget require Council approval; seconded by Mrs. Langworthy; tied 4-4 with Council Members Berry, Adams, Rotola, Langworthy voting Yes and Council Members Sang, Gokey, Womble and Stites voting No; Mayor DiTullio broke the tie against; Motion Failed 5-4. Original motion carried 5-3 with Council Members Rotola, Berry and Adams voting No. 8. Resolution 30-2009-adopting the third modification to the 38th Avenue Corridor Redevelopment Plan to suspend the TIF for the Cornerstone Project property. Resolution 30-2009 was introduced by Mr. Womble. Motion by Mr. Womble to approve Resolution 30-2009; seconded by Mrs. Sang; carried 8-0. Attachment 2 MAPO Purchasing Approval Limits Survey· 2011 AGENCY ......... 3Quotaa lnformll Quca./ Bids Formlll (WrltiM) Bids; Fonnal PropoHia Procurement Carda, Field Approval Levala NAME Required S..lad Bids and/or RFP'a Orders (FPO) and Other City of Arvada $2000 and up. When due to nature of When not informal (see When not informal Field Order Authorization Goods & Non-professional servs. <$15K: Dept. Dir. or Designee• good/serv. Dept. Dir. previous info under (see previous info Card (FOAC) for <$2K Goods & Non-professional servs. $15K to <$50K: City Mgr. or Designee* determines sealed bid is Informal Quotes), and under Informal purchases (internal "card" Construction & Professional servs. to <$50K: Dept. Dir. or Designee* practical/ advantageous when (by precedent) Quotes), and when type sys. that replaces Goods, Non-professional & Professional servs., & Construction $50K & +: Council (no stated $threshold). Council approves (by precedent) field order forms.) Sole Source: <$15K approved by Purchasing Mgr. ($50K and up). Council approves No P-Card currently, but $15K & +approved by City Mgr. w/ Punch. Mgr. recommendation ($50K and up). it's an optional component Emergency Purchases: Per Ordinance, to be approved by City Mgr. Not for Professional of our new Bank Servs. PO"s & mod's in Oracle sys. $50K & +: Purchasing Mgr. or designee. Servs. Contract w/ Bank One. • Approval delegation is supposed to be in written form. City of Aurora $5,000 $5000-$26,000 $26,000 and over $25,000 and over Process handled by Finane $25K to <$50K WMkly report to City Manager before award isaued Fax or phone (3 quotes) FOil'lllllly advertised; Formally advertised; $50K and above Counci approval required with 2 week reconsideration at next Public opening. no public opening meeting before award is issued. ~ lldvertlaing City of Boulder $1000-$1999 $2000 -$4999 Written $5,000 $5,000 $1000-$4999 Purchasing, but depts can initiate & conclude purchase if policies Telephone followed. Purchasing checks to assure compliance with policies. City of Brighton <$25000pen $2,600-$25,000 -Three $25,000 and over $25,000 and over Dept Director selects $2500-$10,000: Procurement Manager $10,000.01 -$50K: City Manager Process handled by $50K and over: City Council PO required tor all Finance. d$2,500+ City/County of $1 000 -$1 0, 000 informal >$1 0,000; public notice >$10,000; public <$50, petty cash<$1000 >$10,000; City Manager approval required. Broomfield bids, oral or written and City Manager notice and City Purchasing card, check >$50,000; City Council approval required. approval Manager approval requests required.>$50,000; required. public notice and City >$50,000; public Council approval notice and City required. Manager approval required. City/County of <$50000pen $5001 -$24,999 • $25,000 and over initiated by City Atty Dept head selects users. Staff Buyer: can approve up to $5000; up to $15,000 If three or more bids received. .. Denver (No Bid needed) at (Format at Buyer discretion) (Form 42) Process handled by Associate Buyer: can approve up to $10,000; up to $25,000 it three or more bids $5001 Finance. received. Senior Buyer: can approve up to $25,000; up to $75,000 it three or more bids ---:.·-~ Purchasing Supervisor: can approve up to $50,000; up to $100,000 if fewer than three bids received; up to $250,000 if three or more bids received. Assistant Deputy Manager: can approve up to $100,000; up to $250,000 if fewer than three bids received; up to $499,999 if three or more bids received. Deputy Manager: has Unlimited Approval authorization. City of Durango $1,001-$10,000, $10,001 -$50,000, a Over $50,000. Formal Over $50,000. Formal FPO up to and including Under $1,000-Dept. Director approves. $1,000 & up-Department Director and two to three written minimum of three written Contract Required. Contract Required. $1 ,000. P-Cards up to Purchasing Agent approve. Any sole source over $5,000 must be approved by quotes required. quotes required. $1 ,coo per transaction, Purchasing Agent. Finane& Director has final approval on all Purchase Orders and Specifications may Specifications must be $2,500 per month for most Direct Pay Requisitions (Blanket POs). be communicated communicated in writing. cardholders. Limits vary via phone, fax or Contracts for services and are approved by Dept email. under $25,000 may be Head and Purchasing. signed by Dept. Director, Purchasing has higher Attachment 3 Revised 2011 MAPO Purchasing Appro!Val Limits Sutvey-2011 AGENCY Minimum s Quot8a lnfonnal Quot8a I Biela Formal (Written) Bids; Formal Proposals Procurement Carda, Field Approval Levels NAME Required Sealed Blda and/or RFP'a Ordera (FPO) and Other City of $5000. $24,999 two De-centralized, $25,000 and over May not have formal (Wells Fargo Visa) Most The City uses Oracle software with approval levels based on hierart:hy. AU Englewood or more quotes on Departments can send General Fund, $50,000 opening on RFP's Purt:hasing cards are set purchases over $1 OK require City Manager's approval. Council approval on company letterhead request to purchasing for Enterprise Fund. up with a $250 per amounts over $25,000 General fundl$50,000 Enterprise fund {even it budgeted). quotes/ proposals on any Construction bids are transaction limit and a Sole source requires justification. Capital equipment amount is $5000/over 1 year dollar amount, but usualy advertised in Daiy $5000 per cycle limit life. Purchasing reviews all purchases, however Accounting also creates "cash amounts over $5000. The Journal and Eng'-ood Amount varies based on disbui'Mil18llt" type purchase orders that don't require Purchasing intervention othe City posts bids/ quotes/ Herald. Department Large than review. proposals via BidNel purchasers $5,000/day & $25,000/month limit Mega cards Purchasing $30Kiday-$75Kimonth City of Fort $5000 and up, at $5000 • $60.000; at Buyer $60.000 and over $60,000 and over P-Card; $5000/ Purch Director has final approval if item/service is from a bid or proposal. Sole Collins Buyer discretion discretion Transaction. Dollar Source items:-Up to $200K-Purchasing Director-$200K and over-City Limit/Month & Number of Councii."Mini-orders" (departmental purchase orders) up to $5000 are authorized Transactions/Day set by internally by departmental personnel (no Purch involvement) Account Manager. City of Grand $5000110 $10,000 $5000 110 $10,000 $10,000 and over $10,000 and over P-Cards at all levels up to Employees with Supervisor approval up to $5000. Employees who have had Junction $2500 per purt:hase, Purchasing training can get quotes from $5000 to $10,000, but they have to be sent $10,000 per month. to Purchasing for a Purt:hase Order. If over $10,000 it must be done by formal solicitation, whether by bid or proposal. Anything over $50,000 must go 110 City Council for aDDrOval before the DUrchase can be made. City of $2500-$25,000 min phone, fax, written or $25,000 and over $25,000 and over Pro Card Most limited to Dept Head or designee approves informal quotesDept Head or designee, AND City Lakewood 2 quotes electronic professional services $500 Dept Heads may Mgr or designee approves:-formal bids and proposals ($25K +)-non-competitive have special approval All bids $50K +-capital improvement construction $500K + (also needs City Council statements reviewed and approval)-unbudgeted purchases or funding changes $50K + (also needs City approved by managers Council approval) except Dept Heads City of $1000-$15,000 N/A $15,000 and over $15,000 and over $1000 limit per transaction. $1000 and below decentralized: end using depllevei.Purchasing Division approves Longmont Varying monthly limits, all contracts/PO's over the $1000.00 decentralized limit There is no governing ~ established by Department approval requirement Heads. City of Louisvile $2500-$4999 3 $5000 -$14,999 three $15,000 and over $15,000 and over <$5,000-Dept Dir. & Fin. Dir.; $5K-$14,999 City Manager; $15,000 and over City telephone quotes written quote Council City of Loveland $5,000 $5000 -$10,000 $30,000 $30,000 P-cards most to $1,000 Individuals as designated by Dept Head to $49,999 Department Heads as some have higher limits for designated by City Mgr to $250,000 City Manager to $499,999 as long as budgeted, emergencies FPO's to ~ not budgeted it must go to Council City Council must sign all contracts above $5,000, petty cash to $100 $500,000 Professional services excluded from bid process. Revised 2011 MAPO P urchasing Approval Limits Survey-2011 AGENCY Minimum 3 Quotea lnfonnal QuotM I Bids Formal (Wrtbn) Bids; Fonnal Propoaals Procurement Cards, Field Approval Levels NAME Required Sealed Bids and/or RFP'a Orders (FPO) and Other City of $5000-$25,000.00 $5000 • $25,000.00 $25,000.00 and over $25,000.00 and over Pro cards Multiple limits-Bids/Proposals for engineering or architectural services are provisionally Northglenn set by Dept Head ;Petty exempted from the formal bid process. CM approval to $25K Above $25K require cash check to $250 Council approval. City of Thornton $10,000-$25,000; $2500-$10,000 minimum $25, ooo and over; $25, ooo and over; Purchasing cards $2500 Approved by department supervisors and managers, with levels for each employee m inimum 3 quotes, 2 phone quotes formal formal per single transaction determined by Department Head or Deputy City Manager. Contracts and w ritten. Purchasing sign all purchase orders. No purchases taken to City Council. Expenditures approved through adoption of annual budget, and any amendments City of $5000 and over $5001 • $30,000 $30,000 and over $30,000 and over P cards Most 1 K per $1K· $5K: Department Designee Westminster transaction 3K per month $5K-$15K: Division Head Petty cash $200 month $15K-$30K: Division Head and Purchasing OffiCe $30K -$50K: Department Head and Purchasing Office Over $501<: City Council City of Wheat $3000 -$10,000 $10,000 -25,000 for $10,000 and over for $25,000 and over for P-cards up to $1000 per Directors approve all purchase requisitions $3000 and over. Ridge m inimum 3 written goods; $50,000 and services transaction Council approves all purchases $15,000 and over. q uotes over for construction Purchasing Agent signs all purchase orders, no dollar limit. Town of Parker Over$5,000 $5,000-$20,000 Over $20,000 Over $20,000 Varying transaction and Department director up to $50,000; Town Administrator between $50,000 and monthly limits {determined $100,000; Town Council over $100,000. Orders over $1,000 are reviewed and by department heads) approved by purchasing and by IT when applicable. Adams County $5,000 -$25,000 $5,000-$25,000 $25,000 and over $25, ooo and over P-Cards for purchases $10,000 and less: Department Head approval $2500 and less; $10,000 $10,000-$25,000: Department Head and Purchasing Manager approval per month $25,000 and over: County Administrator or Board approval ~pahoe $2,500.00 to $2,500.00 to $25,000.00 $25,000.00 and over $25,000.00 and over $0 to $2,500.00 $0 to $4,999.00 Certified Purchasing Agents County $5,000.00 to $99,000.00 Purchasing Manager $100,000.00 to $250,000.00 Director of finarK:e Over 250,000.00 The Board of County Commissioners Boulder County $2499-$14,999-Up to $24,999 $25K and over $25K and over LPO under $2,499 $25K & over {purchases and contracts) require Board approval $15,000-$24,999 P-Card under $2,499 Waivers for $15K and over require Board approval written or faxed Purchases with quotas attached under $25K Purchasing approves Jefferson $5000 and over No dollar linit used when No dollar limit used No dollar limit. Used P-card:-Typical user limit: Purchasing Director:-Up to $25K-Includes execution of standard form vendor County phone or fax specs are straightforward when specs are when user needs to $2500 per transaction -contracts for routine services-Unlimited $ for consumables and wear items if {"off-the-shelf item"), i.e. complex or project is establish qualifications Purchasing Staff: No $ limit previously approved in budget llllthiclea, and/or if rush labor-intensive of firms prior to price if all approvals in order-County Administrator:->$25K up to $50K {includes contract signature authorization) cnkw(Buyerd~) (Buyer discretion). negotiations or Directors up to $25, ooo if Board of County Commissioners: ->$50!( Public WOrks, Head iasuance of request tor desired-Some specialty Start & FAA projects cost proposals. cards at higher limits- must be advertised. Restrictions set by each division. FPO's: Used by divisions that operate on a 24-hour basi& Dollar limit up to $25,000- Should use existing awards I"' if available. Larimer County $5,000 $5001 -$25,000 Over $25,000 Over $25,000 No Pro Card $5K -$25K requires Purchasing Director approval Over $25K requires Board approval Revised 2011 MA PO Purchasing Approval Limits Survey·· 2011 A GENCY Minimum 3 Quolea Informal QuotM I Biela Formal (Written) Bids; Fonnal Propoula Procurement Carda, Field Approval Levels NAME Required Sealed Bids andlorRFP'a Orders (FPO) and Other Adams County $1,500 -$5,000 Up to $5,000 unleaa for Over $5,000 unless for Over $5,000 unless for No program at this time The Supervisor of Purchasing shall summariaze all bids and forward to the budget School District except Capital Capital Reserve Projects capital Reserve Capital Reserve manager for acceptance. In the case ot a bid involving the Capital Reserve Fund, No. so Reserve Fund or then over $7,500 Projects then over Projects then over Building Fund, or bids in excess of $7,500: Supervisor of Purchasing shall forward Building Fund or $7,500 $7,500 to the Office ot Business and Finance and Board ot Education an award whenever an recommendation. All purchases for any non-budgeted single item unit which exceed opportunity exits to $10,000 shall be made only upon authorization and approval by the Board ot obtain a lower bid. Education; this shall not apply to Capital Reserve Fund expenditures. Cherry Creek $500 $500-$20,000 $20,000 and over $20,000 and over No Pro Card Over $20,000 requires Board approval Schools Elected Officials: -No $ limit unless withheld by BCC during budget approval process (includes authority to execute contracts) Denver Public $10,000 $10,000 $25,000 $25,000 P-card-$2500 (schools) Except for capital construction, the Board of Education shall approve all Schools Contract release $10,000 procurements that exceed $1 million and hereby delegates its authority to approve contracts and purchases ot $1 m~lion or less as follows: Superintendent & COO -procurements not to exceed $1 million Chief of Staff, Chief Academic Officer & CFO-procurements not to exceed 1 $500,000 Exec. Dir. Of Finance -budge review & approvals NTE $2SOK (budget check) Director ot Purchasing: procurements not to exceed $250,000 ___ , - District Operating Heads(reporting to COO)-procurements NTE $100,000. All independent contractor agreements require approval of Dir. Of Purchacing or designee. Approval limits don't remove responsib~ites that District guidelines will be followed re processing of purchases thru Purchasing Dept, Legal and Finance as required. Littleton Public Over $5000 -buyer $10,000-$25,000 $25,000-$50,000 $50,000 and over OptCard -JP Morgan All orders over $600.00 are approved by Purchasing Over Schools discretion on lower Chase & Smart Data $1 OK required Board approval unless previously approved in budget limits Online-PVS $1000 Limit most Schools & Depts with exceptions approved by Purchasing Colo Dept of Over$5000 $5000-$50,000 • Over $50,000 Over $50,000 Up to $5000 limit per Up to $5,000 Is end user discretion. $5,000-$10,000 is Purchasing Agent Human Svcs transaction approval. Over $10 000 needs Purchasing Manager approval. Colo Dept of Services $5000 to Services $25,000 to Goods or Services over over $50,000 Pro-card up to $5000 Up to $100K may be approved by Purchasing Agent Transportation $.25,000 $50,000 and Goods $5000 $50,000 require IFB or Over $100K must be approved by Procurement Manager (COOT) to $50,000 Require Quotes RFB on CO BIDS on CO BIDS system system Metro Goods and Serllicea Goods and Services $5,000 Goods and Services Goods and Services FPO up to and including Westwater $5,000 top $24,999 to$24,999 $25,000 and over $25,000 and over $500 $100,000 for District Manager; exceeding $100,000, requires Board approval State N/A Services $25,000 to Goods or Services over over $150,000 P-card up to $5000 Based on individual delegation by State Purchasing Purchasing $150,000 and Goods $5000 $150,000 require IFB or Office to $150,000 Require RFP published on CO Documented Quotes BIDS system published on CO BIDS system South Metro $5,000 Goods and Services $5,000 Goods and Services Goods and Services P-card up to $500 month Up to $5,000 for end user; Between $5,000 and $50,000 must be approved by Fire Rescue to$24,999 $25,000 and over $25,000 and over (stations) Purchasing Manager or Designee; $50K-$1 OOK must be approved by CFO and Admin. ranges from $3,000 over $1 OOK-Board must approve. -$5,000/month Revised 2011