10.03 Accounting & Reporting Policies Revieion

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AGENDA ITEM #10.3 c�ry of Pequot Lakes=-=- REPORT TO CITY COUNCIL Report Prepared by: Nancy Malecha Date: July 9, 2018 Subiect: Accounting & Reporting Policies Revision Report: Recently, the State Legislature approved a bill to increase the competitive bidding threshold requiring the sealed bid process from $100,000 to $175,000 effective August 1�. Based on this legislation, I am requesting the Council amend the City's Accounting and Reporting Policies, Section Q regarding Purchases as noted below in red and as strikethroughs. Q. PURCHASES City deparhnent heads have the authority to make purchases for budgeted expenditures that are at or below budget. For pwchases less than $25,000 the department head has the discretion to make the purchase by obtaining quotations or by simply buying the item on the"open market."If the department head chooses to obtain quotations,he/she must get at least two quotations and keep them on file for at least one year after the receipt thereof. The department head has the authority to make the decision as to which quote to accept if the item purchased is budgeted and the cost is not over budget. Purchases over$25,000 but under$�8A;8AA $175,000 will require the deparirnent head to get at least two quotations and to keep the quotations on file for a period of at least one year after receipt thereof. The depariment head must also check with the state cooperative purchasing venture to consider availability,price and quality of supplies,materials, or equipment available through the state's cooperative purchasing venture before purchasing through another source. The deparhnent head can use the state cooperative purchasing venture as one of the quotes if desired. The deparhnent head has the authority to make the decision as to which quote to accept if the item purchased is budgeted and the cost is not over budget. If the estimated price of the purchase exceeds$�AA;9AA�175,000,the City must use the competitive bidding process.