SUBJECT:
Title
An Ordinance of the Town Council of the Town of Erie Adopting the Purchasing Policy, and Adding a Reference to the Purchasing Policy to the Erie Municipal Code
Body
DEPARTMENT: Finance
Department
PRESENTER(S): Sara Hancock, Director of Finance
First Name Last Name, Title
TIME ESTIMATE: 15 Minutes
FISCAL SUMMARY:
No Fiscal Impact.
POLICY ISSUES:
This ordinance revises the Town of Erie Purchasing Policy to reflect process improvements and the Town’s transition to a Home Rule municipality.
STAFF RECOMMENDATION:
Recommendation
Staff recommends the adoption of the revised Town of Erie Purchasing Policy.
End
SUMMARY AND BACKGROUND OF SUBJECT MATTER:
The Town of Erie’s purchasing policy has been revised to reflect the transition to a Home Rule municipality, we well as the need for process improvements to the Town’s purchasing process. In addition, the Town’s growth and the cost of goods have increased at a rate that requires changes to purchasing thresholds. This change reflects the high volume of purchase orders that could be streamlined to division approval, rather than director approval.
Below is a summary of the changes to the policy:
• “Board of Trustees” has been replaced by “Council” throughout the policy.
• Recommendation to utilize the Sustainable Purchasing Guidelines whenever possible in the purchasing process.
• The initial invoice/requisition amount has been increased from $5,000 to $10,000 for division managers. This allows more discretion for smaller purchases at the division level and addresses the increase in requisitions at this level.
• The Town is discontinuing the Petty Cash program, which has not been used for nearly two years.
• Updated language to ensure budgetary funds are available for all purchases and the requirement of a budget transfer if funds are not available in the identified account.
• Removal of instructional information related to invoice submission-this will be incorporated into the standard order of procedure documents for entering a purchase order.
• Removal of instructional information on the competitive bidding process. These will be included in guidelines for submitting a formal bid or request for proposal.
• Updates to the process for obtaining technology purchases, including what items need to be approved by both the Information Technology and Finance departments.
COUNCIL PRIORITY(S) ADDRESSED:
ü Prosperous Economy
ü Effective Governance
ü Environmentally Sustainable
ü Fiscally Responsible
ATTACHMENT(S):
1. Ordinance 015-2024
2. Revised Purchasing Policy