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Lake Havasu City Council raises purchasing threshold to $100,000, amends contract rules
Summary
Council adopted an ordinance changing procurement thresholds and contract amendment limits; the measure passed 5-1. Staff said the change is intended to speed purchasing and boost small-business participation.
The Lake Havasu City Council on April 8 adopted changes to the city procurement code that raise the council review threshold from $50,000 to $100,000 and increase the contract amendment exemption from 5% to 10%, among other revisions.
Miss Olsen, the city procurement presenter, told the council the changes are intended to streamline purchasing, reduce staff time spent on routine procurement and make it easier for local small businesses to compete. She said roughly 70% of comparable Arizona cities use a $100,000 threshold and noted changes to job order contracting limits and multiyear contract approval language.
“By increasing those thresholds…we anticipate more efficiency and productivity in the functions within each of the departments here at the city,” Olsen said during the presentation. She also described a proposal to raise the local maximum for job order contracts from $1,000,000 to $2,000,000 while continuing to require council approval for purchases over $100,000.
Council member Jim Dolan moved to adopt ordinance number 25-13-57; Council member Nancy Campbell seconded. After public comment and council questions about vehicle purchases, quarterly reporting and cooperative purchasing, the council approved the ordinance on a 5-1 vote.
The council recorded one dissenting vote; the clerk announced the tally as 5 in favor and 1 opposed. In discussion, staff said that cooperative purchases and cumulative annual vendor totals would still require council review once spending with a single vendor exceeded $100,000 in a fiscal year. Staff also said they would provide requested details, including lists of past procurements between $50,000 and $100,000, and that council members could request more frequent reports on procurement activity.
