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HomeMy WebLinkAbout26-17 Adopting the Town Purchasing Policy 02-18-2026RESOLUTION NO. 26-17 A RESOLUTION OF THE BOARD OF TRUSTEES OF THE TOWN OF FIRESTONE, COLORADO, ADOPTING THE TOWN OF FIRESTONE PURCHASING POLICY WHEREAS, the Town of Firestone previously adopted the Purchasing Policy ("Policy") for the Town; and WHEREAS, the Board of Trustees finds that such Policy should be updated with the goal of promoting and supporting the efficient, beneficial and effective use of the Town's resources; and WHEREAS, the Interim Town Manager, Director of Finance and Finance Committee collaborated to develop an updated policy, which has been presented to the Board of Trustees; and WHEREAS, the Board of Trustees finds that the proposed policy meets the goals it established and also supports the Town's fiscal responsibilities. NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE TOWN OF FIRESTONE, COLORADO: Section 1. The Board of Trustees hereby approves and adopts the Town of Firestone Purchasing Policy in substantially the same form as the copy attached hereto and made a part of this resolution. Section 2. All prior Purchasing Policies or amendments thereof adopted by the Town are repealed in their entirety. INTRODUCED, READ AND ADOPTED this 18s' day of February, 2026. I ATTEST: (1?. �`�EspN ('aM teo !r`TOWN Missy Carranco, Deputy Town Clerk ; SELF. APPROVED AS TO FORM: M eith Marti n Attomey 2 TOWN OF FIRESTONE • PURCHASING POLICY ADOPTED FEBRUARY, 2026 This policy establishes guidelines related to the Town of Firestone (Town) purchases. The Town budget is the principal controlling document and all purchases must conform to the forecasted expenditures approved by the Board of Trustees (Board) as part of the budget process. The existence of an item in the Town budget does not automatically authorize procurement. This policy along with the Purchasing Procedures and any other Town applicable procedures and/or policies will establish internal controls to serve the best interests of the Town. Best interest of the Town means a decision or purchasing determination made in good faith that results in the most advantageous outcome for the Town. These determinations prioritize the stewardship of public funds and support the Town's mission, and consider relevant factors such as cost and total value, quality and performance, vendor reliability, risk, sustainability, timeliness, compliance with applicable laws and Town policies, and the Town's long-term operational and strategic objectives, while maintaining fairness and transparency Expenditures related to ongoing principal and interest payments for Town approved debt are not subject to this purchasing policy. When purchases involve the expenditures of federal, state, of local grants and/or are related to a Town approved intergovernmental agreement, the purchase should be in compliance with any applicable laws, regulations and/or agreement requirementss. All employees purchasing on behalf of the Town are expected to adhere to the Town's Purchasing Policy. This policy and the provisions herein are promulgated solely in support of the proper exercise of the Town's fiscal responsibilities, including administration of annually appropriated funds, and solely for the benefit of the Town, and confer no rights, duties or entitlements to any bidders or proposers. This policy supersedes any and all previous purchasing policies adopted by the Town. DE -CENTRALIZED PURCHASING This is a system of purchasing in which purchasing authority, responsibility and control is given to the Department Directors. Department Directors are responsible for ensuring personnel in their department are knowledgeable of and trained in the purchasing procedures as adopted by the Town. By following the requirements established within this policy, Department Directors shall be able to properly plan purchases, so as to allow sufficient time to obtain proposals, quotations, or bids (with an allowable lead time for delivery). Departments shall not only be able to realize savings through competition between vendors, but shall also increase efficiency. STANDARDS FOR PURCHASING The following general standards apply when making purchases for the Town: All purchases must be for the benefit of the Town. All purchases must be properly authorized and fund/department and budgeted line item. All purchases must be supported by sufficient goods/services purchased and amount of purchase. approved and allocated to the correct documentation that includes payee, Page 1 of 7 • All purchases must be within the approved budget unless prior approval has been obtained by the Town Manager within the parameters of this policy. • No officer or employee shall make a purchase or enter into a contract that involves the expenditure of money in excess of appropriated funds. • Whenever possible, consolidate purchases in order to obtain economic benefits. • Encourage open competition as much as practical and when in the best interest of the Town. • Purchase goods and services from local vendors all other things being equal and within the parameters of this policy. • Take advantage of any competitive bidding partnerships with other municipalities to obtain a lower overall cost. • Require vendors to fulfill all terms and conditions of contracts. • Take advantage of all State and local tax exemptions. • Ensure that purchases go through the system of internal controls established in this policy and the Purchasing Procedures. AUTHORITY TO PURCHASE AND AUTHORIZATION LIMITS The following personnel will have the authority to make purchases for the Town in accordance with the approved budget. If needed, the Finance Director will be consulted in circumstances when the budget objective is not clear. • Department Supervisors or Designees have authority to approve purchases up to $5,000 in aggregate for items that have already been approved and included in the Town's adopted budget. • Department Directors have authority to approve purchases up to $25,000 in aggregate for items that have already been approved and included in the Town's adopted budget. • Items in excess of $25,000 that have been included in the Town's adopted budget also require the Town Manager's approval in addition to the Department Directors. • The Town Manager will have authority to approve purchases up to $50,000 for items that have already been approved and are included in the Town's adopted budget, with the exception of the following items which will require the Board's approval regardless of the dollar amount: o Real property and water rights o Public Art • Purchases of $50,000 and above that are contemplated as part of the adopted budget and items above $10,000 not included in the adopted budget will require approval by the Board. • All Town travel including business travel and professional/education travel must follow the Town's Travel Policy. • No purchases may be divided into multiple orders to avoid the established authorization limits. Page 2 of 7 INFORMAL & FORMAL BIDDING The Town will adhere to the following contract procurement policies. Discretionary Purchases - All purchases under $5,000 will be made on the basis of prices obtained from vendor. Employees are to obtain the lowest and/or best price for items purchased and whenever feasible employees are recommended to utilize comparative pricing via verbal or informal methods. Quotations - All purchases between $5,000 to $50,000, require informal or formal quotation procedures as follows: The Board may reduce the number of required quotations if it is determined that it is not practical or advantageous to the interest of the Town. o Informal Quotations - For purchases between $5,000 and $25,000, the requesting department shall obtain and document a minimum of three (3) verbal quotations; such quotations shall be documented and retained for one year plus current year by the requesting department. o Formal Quotations - For purchases between $25,001 and $49,999, Formal quotations shall be obtained from at least three vendors for any purchase within this range. Formal quotations are to be received in writing on vendor letterhead and shall be signed by an official of the vendor, having the authority to contractually bind the vendor. Formal quotations shall be delivered to the requesting department and shall be retained for one year plus current year. Formal Bids - For purchases of $50,000 or more, the requesting department shall follow and document the formal bid procedures as outlined in the Purchasing Procedures. The requesting department shall obtain and document a minimum of three (3) written bids to present to the Board. The Board may waive otherwise applicable formal bidding requirements if it is determined that it is not practical or advantageous to the interest of the Town. Change Orders: The purpose of a change order is to recognize changes occurring on jobs that may result in amendments to the project time schedule and/or cost. Change orders that affect time shall be approved by the Department Director and Project Manager. Change orders that result in additional costs shall have the approval of the Department Director and the Town Manager. If the change order will result in costs exceeding the authorized amount (base bid + contingency), Board's approval is required. o $0-$10,000 — Project Manager o $10,001-$25,000 — Department Director o >$25,001 - Town Manager o >Authorized Amount - Board Approval State Bids/Cooperative Purchasing — State Bids are quotations or bids solicited through the State of Colorado (Bid Information and Distribution System). Use of State Bids is permitted. Use of State Bids must be in accordance with applicable Purchasing Procedures and only current State Bids may be used. Use of State Bids overrides the bidding and quotation process and procedures listed in the Purchasing Procedures, except in situations where use of competitive bidding is required in conjunction or as a condition of receipt of federal or state funding for the project. The determination of whether to use State Bids shall be made by the Department Director. The Town Manager or designee shall have authority to join with other governmental bodies, including but not limited to, the State of Page 3 of 7 Colorado, other local governments, and quasi -municipal corporations, in cooperative purchasing in the best interest of the Town, providing the bids are obtained as the result of a competitive bid process. Use of Cooperative purchasing overrides the bidding and quotation process and procedures listed in the Purchasing Procedures, except in situations where use of competitive bidding is required in conjunction or as a condition of receipt of federal or state funding for the project. The determination of whether to use Cooperative Purchasing shall be made by the Department Director. Integrated Project Delivery Contracting — The Board may award an integrated project delivery ("IPD," sometimes referred to as "design -build") contract for capital improvements projects or other public projects in accordance with state law and the Purchasing Procedures. Bonding Requirements — Bonds shall be executed on forms prescribed or approved by the Town Manager based on review by the Town Attorney as to form and State of Colorado law. Bonds are principally used only on labor and materials procurement actions, such as projects for public facilities. Bonds generally are not required for purchases of vehicles, equipment, or standard commercial goods and services, particularly when the goods are not altered or customized to unique Town specifications, but may be required if deemed by the procuring department to be in the interest of the Town. Insurance Requirements — Contracts for labor, materials and services entered into by the Town will require the selected contractor to carry the types and minimum amounts of insurance coverage as required by the Town. The contracts shall also contain other provisions regarding insurance as the Town shall require. SOLE SOURCE PURCHASES It is the policy of the Town to recognize and solicit quotes and bids. Sole source purchases are permitted only when there is a single supplier capable of meeting all of the Town's specifications and purchase requirements, or when it is in the Town's best interest. Service and/or maintenance agreements offered by a manufacturer, or supplier, who is the only factory -authorized supplier in the DRCOG region, shall be deemed to be sole source without further justification. The requisitioning department Director will be required to complete a sole source justification memo that states the circumstances leading to the selection of the supplier, any alternatives considered, the rationale for selecting the supplier, and how it was determined that the price was fair and reasonable. The memo for the sole source supplier must be submitted with request for the payment or purchase order. If an item is required to standardize equipment or to replace parts of an existing system a sole supplier memo must be submitted with appropriate documentation. Professional Service Agreements The Professional Services Agreements apply to all professional and consulting services contracts. Each department and its personnel are responsible for the effective planning for its service contract requirements. • Solicitation and Acceptance o Department Directors may use a Request for Proposal (RFP) or Request for Qualifications (RFQ) to solicit for services. The following are exempt from the Page 4 of 7 solicitation process: Contracts for the services of consultants, lawyers, engineers, architects, accountants, planners, economists, or public information specialists or Insurance providers o The Department Director shall determine, based on an evaluation of all the proposals, which bidder best meets the needs of the Town, considering whether each bidder: • Possesses adequate technical and financial resources to perform the project or services or the ability to obtain the resources required for performance. • Possesses necessary experience, organization and technical skill in the relevant fields or the ability to obtain them, including without limitation arrangements with subcontractors. • Proposes a reasonable approach to achieve the project or service objectives. • Has a satisfactory record of performance in developing and implementing similar projects or providing similar services in other jurisdictions. Will perform the project or services at a reasonable cost. LOCAL VENDOR PREFERENCE To encourage purchasing from businesses located with the Town of Firestone, it is the policy of the Town to recognize and solicit quotes from local vendors. Whenever such local sources exist and are competitive, purchases may be made from local vendors; however, the bidding requirements, procedures and criteria of this Policy shall still apply. Unless a violation of law or prohibited as a condition of a grant, bids for purchases of goods of $5,000 or less may be awarded, as deemed appropriate solely within the discretion of the Town, to local vendors providing their proposal or quote is within 2% of the lowest bid. This provision applies only to purchases of goods of $5,000 or less and does not apply to procurement of services. For purposes of this provision, a "local vendor" is defined as any person or entity who has been a bona fide resident of the Town of Firestone who has held a valid Town Business License for at least six weeks immediately prior to submitting a bid. EMERGENCY PROCEDURES Emergencies are those instances when there exists a threat to the public health, welfare or safety, or when delay would cause harm to the Town. In the event of local disaster declared by the Town, the Town shall comply with this Purchasing Policy to the extent practicable. Forms required herein for the purpose of authorizing and acquiring goods or services necessary for the immediate preservation of health and safety may be ratified after acquisition when a delay in acquiring the goods or services will cause immediate risk to health and safety, based upon the determination of the Town Manager. Goods and services necessary for the immediate preservation of health and safety during the event of a local disaster shall not require compliance with bidding requirements set forth in this Policy and may be awarded on a sole -source basis. In the event of local disaster or emergency conditions declared by the Town, when it is not feasible to follow the bidding procedures, and it is necessary to authorize the purchase of equipment, supplies or services, or emergency repair costs in excess of $50,000, the Town Manager shall first notify the Mayor or in the absence of the Mayor, the Mayor Pro-Tem. In the absence of the Mayor and Mayor Pro Tem, Page 5 of 7 the Town Manager is authorized to purchase the equipment, supplies or services necessary to manage the emergency. The Mayor and Mayor Pro Tem are also authorized to approve emergency purchases as needed. NONCOMPETITIVE NEGOTIATION When standard competitive processes are deemed non -practical, the Town Manager or designee may enter into noncompetitive negotiations in the best interest of the Town. A written determination of the basis for the noncompetitive negotiation and supplier selection shall be included in the contract file. CONFLICTS OF INTEREST As provided in C.R.S. 24-18-201 et seq., elected and appointed Town Officials and Town employees shall not have a financial or other interest in any contract made by them as Town employees or officials, or by any Town body or board of which they are members or employees, except in the circumstances described in such statute. Such circumstances generally include contracts awarded via competitive bidding procedures, contracts with respect to which the official or employee has complied with the disclosure and recusal requirements of state law, and other limited situations. Relatives of Town employees will be allowed to bid on purchases or contracts with the Town only in those situations where the employee that is related to the bidder has no involvement or decision authority in the process of awarding the bid, and when it has been fully disclosed in advance. Elected and appointed Town officials and Town employees involved in the procurement process shall comply with all ethic laws governing such process. Town employees shall notify the Town Manager in writing of any actual or perceived conflict of interest. Board members shall disclose any conflict of interest in accordance with state law. CHECK APPROVAL The Town will issue checks bi-weekly. A detail report of all checks written will be presented monthly to the Board. Page 6 of 7 POLICY REVIEW The Finance Committee and Finance Director will be responsible for reviewing the Purchasing Policy every two years and will make recommendations for revisions to the policy as deemed appropriate. Adoption and modifications to the policy will require the approval of a simple majority vote by the entire Town Board. `TOWN on Con c Jr., D4dyor e�. Fi%�Is p C�r^i `i�C/ ��e •(r; `o'� Attest. iss Carranco, Deputy Town Clerk Page 7 of 7 FIRESTONE COLORADO MEMORANDIUM OF RECOMMENDATION TO: Board of Trustees FROM: Finance Committee DATE: January21, 2026 RE: Purchasing Policy The proposed Purchasing Policy has been reviewed by the Finance Committee at the January 21, 2026 meeting. With a vote of S' for and _ against, the Finance Committee of the Town of Firestone recommends the approval of the Purchasing Policy. FINANCE Frank K ATTEST: Missy Carranco, Secretary