Agenda No. 5.
CITY COUNCIL MEMORANDUM
| City Council Meeting: | April 21, 2026 |
| Department: | Purchasing |
| Subject: | Update to Real Property Acquisition Process (S.Gonzalez/J.Kurz) |
BACKGROUND
In June 2023, staff brought a workshop item to Council regarding real property acquisition process & procedures.
In an effort to streamline City processes, make the acquisition of land more efficient, and save staff time and effort, staff proposed the following:
As points of information and clarification:
In an effort to streamline City processes, make the acquisition of land more efficient, and save staff time and effort, staff proposed the following:
- For situations where a construction/maintenance project includes the requirement to obtain a Right of Way or Easement and has been approved with funds that are available, anything under $50,000 would not require additional council approval.
- For land purchases unrelated to a construction/maintenance project or the platting process, staff would bring the proposed purchase before council to attain commitment and a not-to-exceed threshold for negotiations. Upon completed negotiations, if the agreed upon price is within the approved not-to-exceed and under $50,000, additional council approval would not be required.
- For any purchase exceeding the approved not-to-exceed OR exceeding the $50,000 threshold, a resolution would be brought to council for further approval.
As points of information and clarification:
- During the 89th Legislative Session, Senate Bill (SB) 1173 was passed, raising the competitive bidding threshold for local governments from $50,000 to $100,000 effective September 1, 2025, and the City’s Purchasing Policy was amended for congruency with the new statutory thresholds. Staff will be applying the new competitive procurement threshold of $100,000 to the real property acquisition process outlined above.
- For situations where a Right of Way or Easement is required and is dedicated through the platting process (never a cost to the City), additional Council approval is not required.
- In March 2024, staff brought a workshop item to Council regarding Freeway Manor and obtained Council direction to purchase lots as they come up for sale. As it relates to these properties, staff will not seek Council authorization for acquisitions that are individually less than $25,000.