To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Trish Muller, CPA, Finance Director
Title
Ordinance Amending Section 3.02.060 of the Castle Rock Municipal Code Regarding Bid Requirements for the Purchase of Goods or Procurement of Services (Second Reading - Approved on First Reading on July 19, 2022, by a vote 7-0)
Body
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Executive Summary
Town staff has noted inconsistencies in the Town Manager’s authority set by thresholds in Section 3.02.060, Bid Requirements, and Section 3.02.080, Purchase Approval and Contract Execution, of the Town Procurement Code.
Per Section 3.02.060 of the Town Procurement Code, “Purchases over $75,000.00 require formal written sealed bids unless waived by the Town Council on the basis of sole source, emergency or unresponsive bidders.”
Per Section 3.02.080 of the Town Procurement Code, authority to approve procurement of goods and services, contracts and intergovernmental agreements is in accordance with the following schedule:
|
Amount |
Approval |
|
Less than $25,000 |
Responsible department director or designee |
|
$25,000-$250,000 |
Responsible department director or designee and Town Manager or designee |
|
$250,000 + |
Responsible department director, Town Manager and Town Council |
Discussion
In the interest of consistency and administrative efficiency Town staff recommends that the Town Procurement Code be amended to increase the Town Manager’s authority to waive the requirement for formal written sealed bids on the basis of sole source, emergency or unresponsive bidders for the purchase of goods or procurement of services to $250,000.
Following first reading, Council requested information regarding the history on the Town Manager’s signing limit, along with comparable information for other jurisdictions. Castle Rock’s Town Manager has had a $250,000 signing limit since 2007. Between 2001 and 2007, the limit was $75,000. From 1992 to 2001, the limit was $50,000.
In surveying nearby jurisdictions and those along the Front Range with comparable populations, staff found that chief administrative officers’ signing limits vary widely, from technically none/$5,000 by policy in Longmont to no limit if the expense is budgeted in Greenwood Village. The chart below depicts this range and shows that the current limit in Castle Rock is about average among these jurisdictions.
Staff Recommendation
Staff has provided the recommended Ordinance to amend Chapter 3.02.060 as Attachment A to this memorandum.
Proposed Motion
“I move to adopt the Ordinance as introduced by Title, on second and final reading.”
Alternative Motions
“I move to adopt the Ordinance as introduced by Title, with the following changes __________ on second and final reading.”
“I move to continue this item to the Town Council meeting on _____ date to allow additional time to (list information needed).”
Attachments
Attachment A: Ordinance