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Page 1 of 2 <br /> <br />AGENDA ITEM – 1D <br /> <br />MEMORANDUM <br /> <br />DATE: <br /> <br />October 19, 2020 <br />TO: Honorable Mayor and City Councilmembers <br />Dave Perrault, City Administrator <br />FROM: Gayle Bauman, Finance Director <br />SUBJECT: Updated Purchasing Policy <br />Budgeted Amount: Actual Amount: Funding Source: <br />N/A N/A N/A <br /> <br />Council Should Consider <br />Provide feedback to staff on draft update of City of Arden Hills Purchasing Policy. <br /> <br />Background <br />The City’s Purchasing Policy was last updated in 2014. Since that time, the State Legislature has <br />revised Minnesota Statute 471.345 on Uniform Municipal Contracting Law increasing contract <br />limits and Minnesota Statute 471.38 on Claims requiring local governments to have a policy on <br />electronic funds transfers. Also, information related to Cooperative Purchasing and Environmental <br />Purchasing needs to be added. <br /> <br />Discussion <br />An original draft of the policy was distributed to FPAC members earlier this year for any comments <br />they might have on the changes. The committee members didn’t have much experience with this <br />type of policy but felt it was more comprehensive and flowed better than the current policy in place. <br />A comment was made regarding the spending limits on page 3. The feeling was that the limits <br />were a little low. Staff concurs with this assessment and would recommend increasing the $7,500 <br />amount throughout the policy to $10,000 and replacing the tables on pages 3 and 11 highlighted in <br />yellow, with the new tables written in red. <br /> <br />This is a total rewrite of the Purchasing Policy for the City. It is hard to identify all of the changes <br />being requested, but the major ones are as follows: <br /> <br />x Include information on Cooperative Purchasing (Attachment B page 6). <br />x Include information on Environmental Purchasing (Attachment B page 7). <br />x Include policy on Electronic Funds Transfers (Attachment B page 9). <br />x Request increasing the $7,500 amount throughout the policy with $10,000 (highlighted in <br />yellow throughout Attachment B). <br />x Request replacing the reference tables on pages 3 and 11 highlighted in yellow, with the new <br />tables written in red.