This was the main topic of discussion at the City Council Workshop last night. Currently, Polk City's municipal code, also known as the city charter, allows for the City Manager to make purchases up to $10,000 without prior approval of the rest of the council members. The actual charter states:
a. City council is responsible for the approval of: The city's annual operation budget, major purchases (those that are $10,001.00 and above) forwarded by the city manager, and disposal of surplus property.
b. City manager is responsible for approval of all purchase orders up to $10,000.00 through signature on purchase orders.
Councilman Don Kimsey thinks this $10K limit it too high or other restrictions should be put in place.
In comparison, what are the limits for other surrounding area cities? At www.municode.com you will find a list of many other Florida city's charters with this type of information. This is a summary of what we found: Keep in mind that all municipal codes are different, so it is not a simple process of comparing apples to apples. In many cases we did the best we could to find relevant information regarding the spending authority of the position of City Manager or relevant purchasing or budgetary power.
Winter Haven: For purchases, not sales, in excess of $3,000 opportunity for competition shall be given.
Lakeland: In any case in excess of $1,500 opportunity for competition shall be given, except in emergency where it has been determined and documented competition is required.
Mulberry: Contracts for city improvements, under $10K, no approval needed, $10K-$25K, must be brought before city council for approval, in excess of $25K competitive bidding required. On purchases or contracts competitive bidding is required in excess of $25,000, except in emergency situations without competitive bidding if 4 of 5 of council members approve. Keep in mind that Mulberry fell into an officially declared state of Financial Emergency in it's past and worked it's way out of it. This policy structure may have been relevant to that situation or not.
Eagle Lake: Small purchases of $150 or less, no phone comparison pricing required. Other small purchases under $6,000, verbal telephone price comparison of local suppliers required. Ordinary purchases larger than $6K, but less than $20K, competitive negotiations required by written proposals or estimates from local suppliers. Large purchases in excess of or reasonably expected to exceed $20K, competitive sealed bid process and formal public notices requesting bids required.
Lake Alfred: He shall be the purchasing officer of the city; and he shall purchase all supplies and equipment for the agencies, boards, departments and other offices of the city. He shall keep an account of all purchases and shall, from time to time or when directed by the city commission, make a full written report of purchases. He shall also issue rules and regulations, governing the procurement of all municipal supplies and equipment. He may employ experts and consultants to perform work and to advise him in connection with any of the functions of the city, within budget capacity. Budgetary transfers in excess of $5,000, must have prior approval of the city commission.
Davenport: Any purchases in excess of $100 require issuance of purchase order and followed up with packing slips when item is received. Purchases not required to obtain bids because it is unreasonable: salaries, wages, some professional services, items/services available from one source, supplies purchased as need for maintenance, etc., purchases made through utilization of state contracts or other government entities. Unless otherwise prohibited by law, regulation or ordinance, the city manager may request, and the city commission may, by majority vote, waive sealed bid requirements of this section, and authorize the city manager to purchase items or services by negotiation, rather than by soliciting sealed bids. If the city manager decides to openly negotiate, in lieu of proceeding pursuant to sealed bids, the city manager shall receive a minimum of three (3) written quotes through advertisement, by telephone or by facsimile in permitted amounts as hereinafter prescribed by a duly adopted resolution. Once assembled, all written quotes shall be presented to the city commission with a recommendation. The reasoning behind any recommendation shall be given for any quote which was not the lowest quote provided. In cases of accident, disaster, or other public emergency situations in amounts above $1K, but less than $10K, City Manager can sign contracts or make purchases to address emergency, but shall immediately file with the city commission a certificate showing such emergency and the necessity for such action, together with an itemized account of all expenditures. Any purchases over $10K requires an emergency meeting of city council for approval of purchases.
Dundee: The procurement of goods, services, materials, supplies and equipment, by or on behalf of the town, including those transactions through which the town council shall receive revenue, in an amount equal to or in excess of the $5,000.00, shall be awarded by a competitive bid or competitive proposal process as specifically, provided herein, except as otherwise provided herein, or by state or federal law. Competitive bidding shall be the preferred method of competition where possible.
Another recommendation was suggested by a member of the audience last night after discussions by the council. He suggested that maybe they should consider the standards that the county currently uses where under $5K needs no approval and above that amount there are different procedures for approval or bids based on the dollar value. He said that this structure appears to be working very well for the county.
As you can see, there are many different ways municipalities are attempting to control spending by the City Manager. It is not always by a meeting of the City Council Members to approve above X amount of dollars to be spent, as is the case with Polk City's charter, but a least there is a formal process and checks and balances in place to keep things reasonable and under control. Considering these tough economic times, the mountain of city debt, and small city tax base being questionable to provide adequate renewable revenue sources, it is not out of the question to revisit these ordinances and procedures outlined in the city charter. Instead of making these issues about questioning competency, trust, or personal judgment, the ordinances and charter codes should be written in such a way to deter overspending, have guidelines built in to allow for competitive price comparison, and create accountability. If these adjustments are made, regardless of who the individual is in that position not only are the city finances being protected, but it will allow for the flexibility in judgment needed to do the job of City Manager.
We hope that a reasonable middle ground can be reached on this issue. It may take more than a simple, plug in your new dollar amount here, as described by Mayor Joe LaCascia during last night's discussions. Increasing these checks and balances and clearly defining additional financial procedures was also pointed out as one of the weaknesses the city needs to address in the recent audits.
No comments:
Post a Comment