In the past, two resolutions and one section of City code has outlined the information contained in the City's Purchasing Procedures, which has proven to be confusing and cumbersome to track and/or modify. Staff is recommending repealing Resolutions 06-18387 and 16-10523, as well as BMC 13-502, and approval of a new Resolution, which encompasses all the pertinent information in one location.  The repeal of BMC 13-502 requires a public hearing and two readings, so it is presented to Mayor and Council as a separate item.

In 2015, Montana Code Annotated, Section 7-5-4302, was amended to increase the dollar amount above which sealed bids are required from $50,000 to $80,000.  Competing more projects via written quote, rather than invitations for bids, will maintain competition and likely result in reduced overall costs for the City, suppliers, and taxpayers. 

Allowing the City Administrator to approve contracts up to the new bid threshold set by the State in the amount of $80,000 will reduce the time that is currently needed to process them for City Council approval.  Faster approval can avoid delays and costs that sometimes accompany the delays.  The formal processes can take several weeks and many hours of staff work.  A quote process can sometimes be completed within a matter of hours.

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

City Council may:

• Approve the repeal of Resolutions 06-18387 and 16-10523 and approve a new Resolution, or;
• Disapprove the repeal of the two resolutions and creation of a new resolution, and continue to receive smaller contracts, amendments, and change orders being presented to City Council for approval.

Other than time savings, the City will have no financial impact by these actions.

Staff recommends that the City Council repeals Resolutions 06-18387 and 16-10523, and approves a new Resolution, which encompasses all the pertinent information in one location.