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ITEM #: 2.
DATE: 04/07/2025
AI #:2488
 
CITY COUNCIL ACTION REPORT
 
SUBJECT: PROCUREMENT CODE AND RECOMMENDED REVISIONS
 
STAFF PRESENTER(S): Jared Askelson, Finance Director; Kevin Custer, Deputy Finance Director

Summary

Council will receive a comprehensive review of the current procurement code and the recommended revisions to address inconsistencies, improve clarity, and align the code with recognized best practices in public procurement. The city's procurement code is outlined in Articles 3-4, 3-5, and 3-6 of the Goodyear City Code, which govern purchasing procedures, contract management, and related financial policies. These revisions aim to enhance transparency, efficiency, and compliance with applicable regulations. (Jared Askelson, Finance Director; Kevin Custer, Deputy Finance Director)

FISCAL IMPACT

There is no fiscal impact for this item.

BACKGROUND AND PREVIOUS ACTIONS

The procurement code defines the rules for public procurement, including the authority to negotiate, approve, execute, and manage contracts, as well as the procurement thresholds for city staff. The code was last updated September 22, 2008, which introduced a threshold allowing the City Manager to approve unbudgeted items under $75,000 and mandated City Council approval for budgeted items exceeding $500,000. 

STAFF ANALYSIS

Since 2008, several Phoenix-Metro cities have increased the threshold for formal procurement. In benchmarking with these cities, Finance staff, along with the procurement manager, recommend several corrections, clarifications, and revisions to the city procurement code, including, but not limited to: 
Increasing the formal procurement threshold from $50,000 to $100,000 to streamline the competitive procurement process; 
Establishing a maximum threshold for Job-Order-Contracting procurement; 
Adding the authorization of expenditures in line with the budget adoption; 
Aligning the disposition of surplus property with other portions of the City Code.
 
  A draft Ordinance 2025-XXX is included as Attachment A, and a draft Procurement Code 3-4 Redline is included as Attachment B.

Attachments