Fiscal Note
This amendment increases the dollar threshold for when competitive selection is required to make a service contract. The threshold would increase from $50,000 to $75,000 in total contract price. This policy change was recommended in the 2025 Adopted Budget. The change does not have a direct fiscal impact but is expected to create operational efficiencies that will save staff time.
Title
Amending Section 4.26, City Purchasing, of the Madison General Ordinances to increase the threshold requiring competitive selection of service contracts from $50,000 to $75,000 and make other clarifications.
Body
DRAFTER’S ANALYSIS: This amendment increases the dollar threshold for when competitive selection is required to make a service contract, from $50,000 to $75,000 in total contract price, as recommended in the 2025 adopted operating budget, and likewise increases the threshold for emergency service contracts to $75,000. This amendment authorizes the Finance Director to sign contract extensions for up to 6 months if there is no increase in cost to the contract, eliminating the need for a resolution in those situations. The amendment also adds an exception to competitive selection requirements for professionals such as expert witnesses working under the direction of an attorney on a specific case or incident. Finally, the amendment makes clarifications for improved readability.
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The Common Council of the City of Madison do hereby ordain as follows:
1. Section 4.26 entitled “City Purchasing” of the Madison General Ordinances is amended as follows:
“4.26 CITY PURCHASING.
(1) Council Authorization. This ordinance authorizes the Finance Director, City Attorney, or and the Mayor and City Clerk, to enter into contracts on behalf of the City of Madison if the contracts meet the criteria of this ordinance. Contracts that do not meet the criteria set forth in this ordinance, and are not otherwise authorized by law, rule or regulation, shall be expressly authorized separately by the Common Council, by resolution or otherwise. This ordinance does not apply to public works contracts required to be bid pursuant to Wis. Stat. § 62.15.
(2) Goods and Supplies. The City may purchase supplies, equipment, goods and materials (collectively, "goods") when the costs of the same have been included in the approved City budget. Except as otherwise authorized by the Common Council, purchases of goods shall be made by the Finance Director, under this section and Sec. 4.27, MGO, pursuant to policies adopted by the Mayor or the Finance Director that include a competitive process, and on forms approved by the City Attorney. A contract for the purchase or rental of goods that includes maintenance or repair services for the goods is considered a contract for the purchase of goods for purposes of this subsection.
(3) Services. The City may contract for the purchase of services. Except as otherwise directed by the Common Council, contracts for the purchase of services may be entered into without Council resolution when all the following conditions are met:
(a) The funds for the services are included in the approved City budget.
(b) The City has engaged in contractor was selected through a Request for Proposals (RFP) or the contractor has been selected through another other competitive bidding process that has been approved by the Finance Director, including but not limited to a competitive selection conducted by the State of Wisconsin or a purchasing consortium, or the contract is exempt from such a requirement pursuant to sub. (4) of this ordinance.
(c) The City Attorney has approved the form of the contract.
(d) The contract complies with other laws, resolutions, and ordinances.
(e) The contract is for a period of one (1) year or less, or the contract is for a period of more than one (1) year but not more than five (5) years (including any renewal or extension terms) and the cost of the services does not average more than one hundred thousand dollars ($100,000) per year of the contract, provided that this subparagraph is subject to sub. (4)(b) of this ordinance for non-competitive contracts.
(4) Exceptions to RFP Process. The City may enter into negotiated contracts to purchase services without a competitive bidding process for the purchase of services if the following are met:
(a) One or more of the following criteria are present as found by the Finance Director:
1. Public exigency will not permit the delay incident to advertising or other competitive processes;
2. The service required is available from only one person or firm;
3. The services are for professional services to be provided by attorneys or other professionals performing services under the direction of an attorney on a specific case, matter, or incident;
4. The services are to be rendered by a university, college, or other educational institution;
5. No acceptable bids have been received after formal advertising;
6. Service fees are established by law or professional code;
7. A particular consultant has provided services to the City on a similar or continuing project in the recent past, and it would be economical to the City on the basis of time and money to retain the same consultant;
8. The contract price is less than fifty thousand dollars ($50,000) not more than seventy-five thousand dollars ($75,000) in total or less than fifty thousand dollars ($50,000) not more than seventy-five thousand dollars ($75,000) annually for software support, maintenance, subscription or similar annually-recurring technology services; or
9. Otherwise authorized by law, rule, resolution, or regulation.
(b) If the aggregate amount of the fee for services contract price will reach fifty thousand dollars ($50,000) exceed seventy-five thousand dollars ($75,000) in total, or exceed seventy-five thousand dollars ($75,000) annually for software support, maintenance, subscription or similar annually-recurring technology services, and the contract was not subject to a competitive bidding process, the contract shall meet one of the exceptions in sub. (4)(a) and be approved by the Common Council by resolution, except for emergencies under sub. (4)(c).
(c) Emergency Services. The Finance Director/designee, and department/division heads or their designees, may purchase services in any dollar amount if necessitated by or resulting from an emergency, without a competitive selection process and without Common Council approval. The Finance Director/designee may sign a contract for such services in a form approved by the City Attorney and Risk Manager. The Finance Director shall promptly report any such emergency services contracts totaling fifty thousand dollars ($50,000) seventy-five thousand dollars ($75,000) or more to the Common Council.
(5) Execution of Contracts.
(a) Except as otherwise authorized by resolution or ordinance, All contracts shall be signed by the Mayor and the City Clerk unless another person is authorized to sign by this ordinance, another ordinance, resolution or law.
(b) Contracts allowed under subs. (2), (3), or (4)(a) may be signed by the Finance Director or designee.
(c) An agreement to extend the term of a previously-authorized service contract up to six (6) months may be signed by the Finance Director or designee if there is no increase in the total contract cost.
(d) All contracts shall be on forms in a form approved by the City Attorney.
(e) All contracts shall be countersigned as required by law and applicable local procedure.
(6) Cooperative Purchasing. The Finance Director, or designee, is authorized to sign agreements in a form approved by the City Attorney for the purpose of joining a purchasing consortium or other cooperative purchasing organization, if the members of the organization are all units of government, or if the organization is not-for-profit. Such agreements include but are not limited to intergovernmental agreements for cooperative purchasing as authorized by Wis. Stats. §§ 66.0301(2) or 66.0303(2).”