MEMO 2 4 1987

B. Kirk, | August 19, 1987
City Administrator.

FROM: Audit Committee

SUBJECT: City Purchasing Policy

RECOMMENDATION :

That Council approve the attached proposed Purchasing Policy.

BACKGROUND & COMMENTS:

Our existing purchasing policy was approved by Council in June 1982. The
proposed changes in the policy are identified on the attached and will if
passed assist in all departments.

Council should be aware that some purchases. such as the annual tenders for

the supply of gas, odl, construction materials, office supplies, are con-
sidered to fall into the $10,000 to $50,000 bracket even though some of these
may well exceed the $50,000 limit.

Council involvement will remain the sames as at present which is:

- At budget approval

~ On purchases of value. between $10,000 and $50,000 on which
the recommendation is not to go with the lew bidder.

- On all purchases of value $50,000 or greater.