PowerPoint Presentation (added 10/04/2024)*

Updates to City Code
Chapter 2, Article V, Division 2, Purchasing 
Procedures
October 8, 2024
Presented by: Connie Schneider, Procurement Administrator

Why are Changes Needed?
2
• Last comprehensive update occurred in 2001
• Keep up with inflation
– $50,000 in 2001 now worth over $88,000
• Consistency with other cities
• Recent Court challenges
• Real estate authorities are missing or confusing

3
Council Approval Limits in Other Cities
City/Town
Population
Spending Threshold
Threshold Updated
Phoenix
1,644,000
$250,000
2023
Mesa
496,401
$100,000
2023
Chandler
253,458
$100,000
2022
Scottsdale
249,950
$25,000/$50,000
2023
Glendale
246,709
$50,000
2001
Gilbert
242,354
$100,000
2016
Tempe
185,038
$100,000
2017
Peoria
168,101
$100,000
2017
Surprise
134,085
$50,000
2007
Avondale
84,025
$100,000
2006
Buckeye
68,453
$250,000
2022

Overview of Proposed Changes
4
• Scope (Sec 2-137) 
– Identifies contracts not subject to procurement rules
• Definitions (Sec 2-138)
– Adds definition of City real property, person and 
suspension
• Materials Manager/Finance Director (Sec 2-139) name 
changed throughout

Overview of Proposed Changes
5
• Formal Purchase Procedure (Sec 2-145)
– Changes dollar threshold for formal procurement/ 
Council approval of contracts valued at $100,000 or 
more
– Limits routine contracts for goods and services to 5-
Year Term
• Excludes Linking Agreements, legal services, 
construction and real property contracts
• Gives Council discretion to grant longer term

Overview of Proposed Changes
6
• Formal Purchase Procedure (Sec 2-145)
– Bid protest procedure codified
• Previously a City administrative policy only
• Gives longer period to appeal (15 days after award 
or 7 days after discovery of facts for objection) 
• Provides for Hearing with defined procedure
– Eliminates competitive bidding requirements for 
small purchases (less than $10,000 cost)

Overview of Proposed Changes
7
• Cooperative Purchasing (Sec. 2-149)
– Finance director can administratively amend Linking 
Agreement without going back to Council if underlying 
cooperative agreement is amended
• Suspension and Debarment (Sec 2-152)
– City’s current policy is codified
• Change Orders (Sec 2-156) 
– City Manager’s approval authority increased to $100,000

Overview of Proposed Changes
8
• Construction Contracts (Sec 2-155)
– Finance director delegates Title 34 procurements
– Clarifies multiple City departments can use same 
professional services contractor/contract.
– Also clarifies City departments cannot spend more 
than $500,000 a year in the aggregate on single 
professional services contract.
– Caps individual job-order contracts at $1Million, 
consistent with state law.

Overview of Proposed Changes
9
• Real Property Purchases (Sec. 2-166 – 2-170)
– Distinguishes City’s right to sell real property and 
personal property and adopts rules for each type
– Clarifies City can sell, lease or give right to occupy or 
use City real property without engaging in competitive 
bidding process
– Clarifies Council has sole, unreviewable discretion to 
consider, take or reject all bids and offers for City real 
property
– Clarifies PSA can vary from terms and criteria of RFP.

Overview of Proposed Changes
10
• Personal Property (Sec. 2-171 and 2-173)
– Allows Finance director to sell off surplus with an 
original value of less than $100,000
– Any sale of personal property with an original value 
of $100,000 or more requires Council approval.
– Applies same rule/dollar limits to offers from third 
parties to purchases of surplus or obsolete personal 
property.

Council Feedback and Questions?