At the June 11, 2019, City Council meeting, staff requested approval for Citywide blanket purchase orders for Fiscal Year 2019-20. The City has several vendors that staff utilize for obtaining various materials, supplies, equipment, and services throughout the year. The issuance of blanket purchase orders (BPO’s) ensures efficient control of the purchase of supplies and facilitates the acquisition of small dollar items ($5,000 or less per item) needed for daily operations that are otherwise uneconomical to store.
Staff routinely monitors the balances of the BPO’s to ensure the balances are sufficient to cover purchases. In doing this analysis, it was found that the BPO’s for Amazon and Costco, have an insufficient balance to cover estimated purchases through June 30, 2020. The increase for the Champion Publications BPO is needed due to a rate increase of $7 per column inch or 32% from last year. In addition, they no longer offer a 2% discount for prompt payment, resulting in an insufficient amount remaining on the BPO to cover future needs. BPO’s for Amazon and Champion Publications exceed the $25,000 threshold for signature authority of the City Manager as identified in the City’s Procurement Policy and Procedures Manual.