c. Purchases of $50,000.00 or more, per LNMC 3-6-4(5): Purchases of goods, materials, supplies, and equipment of an estimated expenditure of $50,000.00 and greater require City Council approval of the PO and/or contract and explicit authorization from the City Council allowing the City Manager or Purchasing Officer to execute the PO or contract. The requesting department must solicit at least (3) written competitive bids and attach those bids to the City Council Agenda Report. 5. Cumulative Purchase Threshold a. If the average annual expenditures for any vendor is equal to or exceeds $50,000.00, the requesting department is required to issue a multi-year agreement with such vendors. City Council approval will be required prior to contract execution. b. Departments should utilize budget requests to anticipate the need for a contract. If a budget amount requested exceeds $50,000.00, departments should explore the option of obtaining competitive bids and award a contract prior to issuing multiple purchase orders to avoid exceeding the cumulative purchase threshold. c. For vendors that do not have average annual expenditures of $50,000.00 or greater, a multi-year agreement is not required; however, if such vendors reach annual expenditures of $50,000.00 or greater in a particular fiscal year due to an unforeseen demand in the goods or services provided, City Council approval of a PO and/or contract will be required. d. The PO or contract resulting in the annual expenditures of such vendors to equal or exceed $50,000.00 will require City Council approval. All previous purchases must be identified in the City Council Agenda Report. e. The Finance Department will track vendors’ annual expenditures utilizing a vendor detail report. This report will be printed bi-monthly to identify vendors who are approaching or have exceeded $50,000.00. Departments shall be notified of vendors approaching or exceeding the cumulative purchase threshold amount and shall evaluate if a multi-year agreement is needed. PURCHASING POLICY Page 4 of 10 COUNCIL POLICY LAST ADOPTED 6/4/2024 138