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<br />. <br /> <br />e <br /> <br />REQUEST FOR CITY COUNCIL AGENDA ITEM <br /> <br />Agenda Date Requested: Mav 10. 2004 <br />Requested By: Susan Kellev J ~ <br /> <br />Aoorooriation <br /> <br />Source of Funds: N/A <br /> <br />Department: <br /> <br />AdministrationlPurchasine <br /> <br />Account Number: N/A <br /> <br />Report: <br /> <br />Resolution: <br /> <br />Ordinance: <br /> <br />Amount Budgeted: N/A <br /> <br />Ordinance #2004- <br /> <br />Amount Requested: N/A <br /> <br />Exhibits: <br /> <br />Exhibits: <br /> <br />Budgeted Item: YES NO <br /> <br />Exhibits: <br /> <br />SUMMARY & RECOMMENDATION <br /> <br />The City of La Porte held a charter revision election on May 5, 1990, which asked voters to approve increasing the <br />threshold limit requiring competitive sealed bids and proposals from $3,000 to $5,000, to coincide with state <br />statutes. This provision passed and was adopted by Council on May 7, 1990. For future increases, the ballot also <br />included a section, which states, "Council by ordinance may increase the $5,000 limitation herein provided to <br />conform to subsequent increases authorized by state law." The City utilized this provision on September 25, 1995, <br />when Council increased the $5,000 to $15,000 per passed legislation of the 1993 State Legislature. <br /> <br />The 2001 State Legislature passed legislation, effective September 1, 2001, increasing the limit on competitive <br />sealed bids and proposals from $15,000 to $25,000. During the 02-03 fiscal year, Purchasing competitively bid <br />thirty-seven (37) purchases, eleven (11) of which were between $15,000 and $25,000. From October 2003 to <br />present, twenty (20) purchases were competitively bid with five (5) between $15,000 and $25,000. <br /> <br />Statistics provided by the National Institute of Govemmental Purchasing indicate in 1997, a competitive sealed bid <br />cost approximately $600. Calculations on recent City bids estimate from $350 (simple annual contract) to $750 for <br />more complex bids. Using an average of $550 per bid, last year, the City would have saved $6,050. <br /> <br />Staff Recommendation: <br />Increase competitive sealed bid and proposal limit to $25,000. <br /> <br />Action Required bv Council: <br />Adopt ordinance increasing the City's competitive sealed bid and proposal limit from $] 5,000 to $25,000 as <br />authorized by charter election. <br /> <br />Aoproved for City Council As:enda <br /> <br /> <br />~1JiP!cb~a~~ <br /> <br />,r cl-tJ ~ <br /> <br />Date <br />