Mineral Wells council adopts new purchasing policy to centralize procurement and keep council review at $50,000
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Summary
The Mineral Wells City Council approved a new purchasing policy and manual that shifts procurement planning from individual invoices to commodity-based budgeting, preserves council approval for purchases of $50,000 and above, and sets an effective date of Aug. 1.
The Mineral Wells City Council voted unanimously to adopt a new purchasing policy and manual intended to change how the city plans and approves purchases.
City finance staff and the city manager told the council the policy moves the city away from treating each invoice as a separate transaction and toward aggregating purchases by commodity for a fiscal year, so larger recurring buys — such as asphalt — are procured and contracted up front. The policy would take effect Aug. 1, with trainings and new forms scheduled before implementation.
The policy draws on a review of state procurement laws, the City Charter, and best practices from the National Institute of Governmental Purchasing and the Government Finance Officers Association. Under the new manual, department heads may approve purchases under $3,000, purchases between $3,000 and $15,000 require three written quotes (two from historically underutilized businesses where state law requires), and purchases of $50,000 and above will be brought to council for approval. City staff said state law now requires formal competitive bids at $100,000 and above, but the proposed municipal policy retains council review beginning at $50,000.
Finance staff recommended adding procurement cards, using local preference for purchases under $3,000, encouraging use of cooperatives and consortiums, and formalizing emergency purchase rules, contract renewals and change orders. The policy also includes the Texas Prompt Payment Act requirement to pay invoices within 30 days to avoid interest penalties.
Council members asked about near-term pain points for departments adapting to the new approach. Staff said the largest short-term challenge is the “mindset shift” of planning procurements in advance and coordinating during the budget process so departments don’t need emergency purchases when supplies are needed. Staff outlined plans to review commodity contracts over time (for example, office supplies and asphalt) and noted procurement cards would help secure tax-exempt pricing and centralized discounts.
The council approved the resolution to adopt the purchasing policy and manual by voice vote, 7-0.
Council members and staff said additional related policies will be presented in coming meetings as the city implements the manual.
