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Staff propose higher procurement thresholds; council told ratification will appear on consent agenda
Summary
Finance and purchasing staff proposed to raise procurement thresholds (small purchases to $10,000; simplified procurement to $10,000–$50,000; formal procurements above $50,000) and confirmed a ratifying resolution will be on the consent agenda for council consideration; staff said existing audit and approval safeguards remain.
City finance staff reviewed proposed updates to Centennial’s purchasing policy during the Feb. 17 study session, saying the changes aim to improve procurement efficiency while retaining oversight and audit controls.
Jeff Gudiz, the city’s finance director, opened the presentation and said staff conducted a comprehensive review of the 2013 policy to ensure it aligns with current law, market changes and municipal practice. “Routine review reinforces transparency, strong internal controls and our ongoing commitment to responsible stewardship of public funds,” Gudiz said.
Elizabeth Dunaway, the city’s purchasing manager, described the three procurement classifications that remain in the policy and the proposed threshold changes: small purchases (price checks required) would increase to $10,000; simplified procurement would apply at $10,000–$50,000 (requiring at least three quotes); and formal public procurements would apply above $50,000 and use public advertisement and sealed bids. Dunaway said staff considered inflation, federal procurement rules and peer jurisdictions in recommending the adjustments.
Dunaway explained approval levels tied to those classes: department directors for small purchases up to $10,000; department director plus purchasing manager for $10,000–$50,000; and higher approvals for formal procurements. She also confirmed the city manager’s contract authority was increased to $300,000 by ordinance 2025‑O‑17 at the end of 2025, and amounts above that threshold must be approved by council.
Staff emphasized controls would remain in place: purchases are subject to the budget appropriation, cannot be split to avoid thresholds, are subject to annual audit and internal-control testing, and certain exemptions (cooperative purchases, professional services, sole-source and hardship waivers) require written justification and multilevel approvals.
Councilmembers asked whether the threshold increases would make bidding easier for vendors and whether the city-manager approval level had been changed; staff said many municipalities use similar thresholds, raising thresholds can reduce administrative burden on lower-dollar procurements, and training and procedural manual updates will accompany the policy change. Gudiz said the resolution to ratify the revised policy is on the consent agenda for the regular meeting and staff recommended council approve it during that session.
No formal vote occurred at the study session; the ratifying resolution will appear on the consent agenda for the upcoming regular meeting.
