By Sara Beth Williams–
Several key directors in the city are requesting that the Citrus Heights City Council approve a resolution that would increase the city manager’s current purchasing authority to $100,000.
At an April 25 council meeting, an agenda packet shows staff will request an approval of an update to the existing purchasing policy, which would increase the city manager’s purchasing power on various city projects, from $50,000 to $100,000. Contracts and purchases include, but aren’t limited to, professional consulting services, equipment purchases, and replacement purchases.
The proposed increase in signing authority is made “in an effort to improve efficiency and expedite delivery of services,” the city wrote, adding that all purchases signed off by the city manager would remain within the city’s budget and within the parameters of the city’s existing Purchasing Policy.
The city’s current purchasing policy states that all formal bids between $25,000 up to $50,000 can be approved by the city manager, but all bids over $50,000 must be approved by the City Council. The new policy would adjust to reflect that only purchases over $100,000 must be approved by the City Council and be posted as an agenda item, and any purchase under that amount would not require council approval.
According to the staff report, when Citrus Heights was initially incorporated in 1997, the city manager was given an allowance of $25,000 in which to sign off on city projects, without requiring city council approval.
In 2005, the policy was amended to allow up to $50,000, with a limited increased authority of up to $75,000 for new Police Department-related purchases only, in hopes of helping facilitate a “smooth transition.” The Citrus Heights Police Department was officially established in 2006.
According to the report, though the city manager purchasing power has remained the same since 2005, the ability to sign off on contracts and purchases has “steadily decreased” due to increased labor costs and higher material costs, which have “escalated” due to the pandemic’s impact on supply and demand.
In 2019, the City Council adopted changes to the city’s existing policy including dropping a requirement for three bids to be received before authorizing purchases of $25,000 to $50,000 (excluding Public Works Projects) and allowing a city manger designee to approve purchases.
The city reviewed purchasing policies and city manager signing authorities in surrounding cities, including Elk Grove, Folsom, Galt, Rancho Cordova, and Sacramento, and found that the cities of Elk Grove, Rancho Cordova and Sacramento all have limits set at $100,00. Roseville was not cited in the report. Folsom has a purchasing cap of $73,209 with an annual consumer price adjustment and Galt’s city manager has a purchasing cap of $70,000.
Those interested in making a public comment during the meeting can do so by attending the council meeting on April 25, 2024, at City Hall, or by submitting a written comment beforehand using the city’s website. The deadline to submit comments online is 4 p.m. on the day of the meeting. View the full agenda packet online: Click here.
