Ormond Beach increases staff's purchasing threshold for expenditures

The city last modified its purchasing threshold in 1994.


David Hood Plaza at the Ormond Beach City Hall. Photo by Jarleene Almenas
David Hood Plaza at the Ormond Beach City Hall. Photo by Jarleene Almenas
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Ormond Beach city staff will now be able to move forward with purchases up to $75,000, without requiring approval from the City Commission.

In a 3-2 vote on Tuesday, April 1, the Ormond Beach City Commission approved the modification to its purchasing ordinance, increasing the threshold for purchases needing to go through a formal bidding and approval process from $25,000 to $75,000. According to a city staff report, this would help staff expedite repairs, needed services as well as the purchase of things like replacement vehicles and public safety equipment. Commissioner Harold Briley and Mayor Jason Leslie voted against.

The purchasing threshold increase will eliminate about 50 agenda items a year, said Chris Byle, city assistant finance director. 

"Most items would still require a public advertisement and all expenses would ultimately end up on the city transparency portal," Byle said.

Only one citizen spoke on the agenda item at the meeting. Jennifer Bright, who opposed the increase, said the current $25,000 cap was implemented too "ensure responsible fiscal practices and maintain accountability to the taxpayers." Keeping the existing cap would help to control overspending and prevent budget deficits, she said.

"The cap can be adjusted for unforeseen events, but the approval process guarantees a controlled approach," Bright said. 

The city last modified its purchasing threshold in 1994. Adjusted for inflation, $25,000 in 1994 has the same buying power as about $54,500, according to the U.S. Bureau of Labor Statistic. 

A survey conducted by city staff showed that local area municipalities have purchasing thresholds between $25,000 and $100,000, the latter of which is for the City of Port Orange.

According to the city, expenditures between $25,000 and $75,000 will be publicly advertised on the city's procurement portal, DemandStar, for no less than 10 days. 

While commissioners were in favor of increasing the purchasing threshold, Briley and Leslie expressed some hesitation.

"We're blessed right now with great city staff — a very good finance director, an assistant finance director and city manager," Briley said. "My concern is what happens when we don't have those folks on board anymore."

Commissioner Tolland said she understood their concerns, but with the safeguards in place proposed by staff, she was comfortable with increasing the threshold to $75,000.

The threshold increase seeks to address efficiency. City Manager Joyce Shanahan said that, in the past, the city has lost the opportunity to buy public safety vehicles because of needing to go through the formal bidding process.

"What happens is sometimes dealers get vehicles and we have to bring it to you before we can get in line for that, so we miss the opportunity because somebody else is next in line," Shanahan said.

As the commission typically meets on the first and third Tuesday of the month, Leslie asked if the delay for these kinds of purchases was significant. 

Byle mentioned the roof replacement for the historic house at Ames Park. The city had to go out for bid for that project.

"That took over a year when we could have had it when everybody's fighting for roof contractors," Byle said. "We could have had that repaired within a month."

According to city staff report from Sept. 6, 2023, the accepted bid totaled over $35,500, with FEMA paying the majority of the cost. 

"So our residents got to look at a beautiful blue tarp for over a year when it could have been done a lot sooner," Commissioner Travis Sargent said. 

 

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