Fiscal Note
The proposed ordinance change increases the dollar thresholds for the City’s request for proposal purchasing procedures. Under the proposed ordinance change contracts under $50,000 can be approved by the Finance Director or designee without Common Council action.
The proposed ordinance change also increases the dollar threshold for companies required to submit an affirmative action plan. Under the proposed ordinance change the threshold will be increased from $25,000 to $50,000.
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SUBSTITUTE Amending Sections 4.26(3)(e), 4.26(4)(a)8., 4.26(4)(b), 4.26(4)(c), 39.02(9)(a)2.c., and 39.02(9)(e)2. of the Madison General Ordinances to raise the competitive bidding threshold for service contracts from $25,000 to $50,000, raise other purchasing thresholds to $50,000, increase the thresholds for multi-year service contracts that may be signed by the Finance Director, raise the threshold to $50,000 for city contractors to file an affirmative action plan, and raise the maximum amount of liquidated damages a contractor could pay for various affirmative action violations.
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DRAFTER'S ANALYSIS: This amendment makes changes to the City’s purchasing and affirmative action dollar thresholds. Currently, service contracts of more than $25,000, if not selected through a competitive selection process, must be authorized by resolution of the City Council and signed by the Mayor and City Clerk. Contracts up to $25,000 are exempt from competitive selection and can be signed by the designee of the Finance Director without a resolution. This ordinance would raise that threshold to $50,000 in total, and $50,000 per year for annually-recurring contracts for technology services. This ordinance also raises the maximum annual price for competitively-selected service contract that can be signed by the Finance Director’s designee from $50,000/year to $100,000/year, changes the maximum duration for such a contract from 3 to 5 years, and clarifies that renewals are counted...
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