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<br /> <br />REOIT FOR CITY COUNCIL AG~ <br />equest <br /> <br /> <br />~ Department: <br />Resolu~on X <br /> <br />AdministIfltive Services <br /> <br />Requested By: <br /> <br />Report <br /> <br />Ordinance <br /> <br />Exhibits: <br /> <br />Ordinance No. 95- <br />smmARy & It'Eco~ <br /> <br />The City of La Porte held a charter revision election on May 5, 1990, which asked the voters <br />to approve increasing the threshold limit requiring competitive sealed bids from $3,000 to <br />$5,000, to coincide with state statutes. This provision passed and was adopted by Council on <br />May 7, 1990. The ballot also included a section which states, "Council by ordinance may <br />increase the $5,000.00 limitation herein provided to conform to subsequent increases authorized <br />by state law." The 1993 State Legislature passed legislation increasing the limit on competitive <br />sealed bids to $15,000. <br /> <br />Statistics provided by other entities and the National Institute of Governmental Purchasing <br />indicate that a sealed bid costs approximately $300. This includes man hours, postage, and copy <br />charges. In the current fiscal year, the City has competitively bid forty-six (46) purchases. Of <br />those bids, twenty-one (21) were under $15,000. In fiscal year 1993-94, forty-nine (49) <br />purchases were bid with twenty-nine (29) of those being under $15,000. Using the estimated <br />cost per bid, the City would save $15,000. There would still be costs associated with the <br />issuance of the purchase order but it would be greatly reduced. <br /> <br />The City's Purchasing Policy Manual is currently being revised and authorized signature limits <br />will be included in the new policy to ensure accountability of the increased amount. Department <br />Directors will be required to sign all requisitions over $5,000 and signatures of the Department <br />Director and the City Manager or Assistant City Manager will be required for purchases over <br />$10,000. <br /> <br />This plan was presented to the Audit Committee on September 11, 1995, and was received <br />favorably. <br /> <br />Action Required by Council: <br />Adopt ordinance increasing the City's competitive sealed bid limit from $5,000 to $15,000 as <br />authorized by the charter election. <br />A vailallIDty of Funds: <br />_ General Fund <br />_ Capital Improvement <br />Other <br /> <br />Water/Wastewater <br />_ General Revenue Sharing <br /> <br />Account Number: <br />Approved-for City Council Alenda <br /> <br />Funds Available: _ Yes _ No <br /> <br />G?~r T~ ~ <br />Robert T. Herrera <br />City Manager <br /> <br />--3 -'Co -~S <br />Date <br />