Due to the increasing costs of materials, labor and product acquisitions, staff has witnessed a growing number of projects requiring bids and, correspondingly, an extended time frame to contract award.

In 2015, Montana Code Annotated,  Section 7-5-2301, was amended to increase the dollar amount above which sealed bids are required from $50,000 to $80,000.

In February 2016, staff presented a new Purchasing Policy to City Council, along with the procedures to then be adopted by Administrative Order.  At that same time, members of Council had asked staff to review existing resolutions and code to see if the City Administrator, rather than the City Council, would be able to approve small change orders and contract amendments.  Staff  determined that increasing the bid threshold and the City Administrator's signing authority to $80,000 and adding "amendments and change orders," to the previously adopted Resolution would effectively accomplish this task.

These changes will also be made in the Purchasing Procedures, which will concurrently be adopted by Administrative Order.

City Council may:

• Approve the amended resolution, or;
• Disapprove the amended resolution, and continue to receive smaller contracts, amendments and change orders being presented to City Council for approval.

Competing more projects via written quote, rather than invitations for bids, will maintain competition and likely result in reduced overall costs for the City.  Allowing the City Administrator to approve contract amendments and change orders will reduce the time that is currently needed to process them for City Council approval.  Faster approval can avoid delays in on-going project work and costs that sometimes accompany the delays.

Staff recommends that the City Council approve the attached resolution that increases the City Administrator's contracting authority from $50,000 to $80,000 and allows the City Administrator to execute small change orders and contract amendments.