The City Charter previously dictated that the Purchasing Policy be approved by City Council. However, with the 2015 Charter amendments, this authority was delegated to the City Manager. The Purchasing Policy was last updated in March 2024, with the implementation of the Incode update (ERP Pro 10). The 2024 updates included procedural changes only and did not alter or negate statutory requirements such as procurement standards, authority, or competitive bidding thresholds.
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. This means cities, counties, school districts, and other local entities can now make purchases or enter into contracts up to $100,000 without having to go through a formal competitive bidding process. SB 1173 gives local governments more flexibility, allowing them to respond to needs quickly and reduce administrative overhead. Bidding thresholds were last raised in 2007, and without periodic adjustments to account for inflation, local governments may waste time and resources bidding out relatively routine projects or purchases that used to cost far less. SB 1173 doesn’t remove oversight entirely—internal controls, audits, and public transparency still apply—but it modernizes the rules to reflect economic reality.
Effective September 1, 2025, the City's Purchasing Policy has been revised as follows:
- Congruency with the new statutory competitive bidding thresholds
- Added verbiage regarding compliance with Federal Procurement Standards (2CFR Part 200, D), which is required by some granting agencies
- Minor procedural clarifications
A copy of the redlined changes and a clean copy of the revised policy is attached for Council's reference.
Additionally, attached is a vendor expenditure report from July 2025, detailing all vendors with whom the City spent $25,000 - $100,000. These reports will be provided to Council monthly going forward for awareness. |
