SUBJECT: A Resolution Amending and Updating the Town's Purchasing Policy; And, Setting Forth Details In Relation Thereto
DEPARTMENT: Finance
PRESENTER: Steve Felten
FISCAL INFORMATION:
Cost as Recommended: n/a
Balance Available: n/a
Budget Line Item Number: n/a
New Appropriation Required: n/a
STAFF RECOMMENDATION: Staff recommends approval of the resolution amending and updating the Town's purchasing policy.
SUMMARY AND BACKGROUND OF SUBJECT MATTER:
The proposed resolution updates and amends the Town's purchasing policy, last updated in 2006. Objectives of the policy are to: procure goods and services at the lowest possible cost for the quality needed for effective use; avoid duplication, waste, and obsolescence with respect to the procurement of goods and services; provide adequate budgetary and fiscal control over all municipal expenditures; and, minimize or eliminate disruptions in operations resulting from the lack of material, equipment, or supplies. The purchasing policy serves as a guideline for all purchasing activity and standardizes purchasing procedures.
This updated policy attempts to incorporate best practices based on a review of purchasing policies of several surrounding municipalities, including Brighton, Firestone, Fountain, Golden, Lafayette, Littleton, Louisville, Montrose, Superior and Wheat Ridge, communities generally of a size similar to Erie. In addition, policies of larger communities were also reviewed to identify potential improvements applicable in spite of any size difference.
The policy also revises spending authorization levels. In determining appropriate levels, the Town reviewed the surrounding communities referred to above. A summary of the Town's current approval levels, the proposed levels and comparison levels for selected communities is presented in the following table:
Level
Current
Erie
Proposed
Erie
Brighton
Golden
Lafayette
Louisville
Wheat
Ridge
Division Manager
up to $500
up to $1,0...
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