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City of Tukwila <br />Allan Ekberg, Mayor <br />INFORMATIONAL MEMORANDUM <br />TO: Allan Ekberg <br />Finance Committee <br />FROM: Peggy McCarthy, Finance Director <br />BY: Craig ZeUUerhoff, Fiscal Coordinator <br />DATE: April 12,2017 <br />SUBJECT: Update Tukwila Municipal Code by removing section 3-32-040 "^Umbudgeted <br />Equipment or Fixed Assets" <br />ISSUE <br />Streamline purchasing practices by removing section 3.32.040 "Unbudgeted Equipment or Fixed <br />Assets" from the Tukwila Municipal Code (TK8C) and repealing Ordinance No. 2245. <br />BACKGROUND <br />Council control over procurement. <br />Fio9d,4ySetG. |n November 1S97. City Council adopted Ordinance No. 1817 establishing Chapter <br />3.32' Budget Provisions, which included section 3.32.040 "UUbudQ8ted Equipment Or Fixed <br />Assets". TW1C 3.32.040 requires the approval of the Mayor and three affirmative votes ofthe <br />respective Council Committee to approve the purchase of unbudgeted capital equipment or fixed <br />assets, including components or Sen/icoa of it8nnG related to capital equipment or fixed 8SGe[S. <br />Fixed asset items were defined as costing at least $1,000 and having a useful life of at least two <br />years, Ordinance No. 2010. adopted in December 2002. changed the minimum limit for capital <br />equipment from $1.00OtO$5,OOO. <br />Other Goods and Services. TK8C section 3.32.030 "Bids" requires Council approval Of all <br />purchases $4O thousand and above. <br />DISCUSSION <br />It is the City's responsibility to utilize taxpayers' dollars in the most effective and efficient way <br />possible while adhering toapplicable laws and regulations. Council has established a$4O,OOO <br />mayoral 8pp[OVa| limit for the procurement of goods and Sen/iC8S. COUOCi| 8pp[Ov@| is required <br />for all purchases Of goods and services $40,000 and above. The process Vfobtaining Council <br />approval for the purchase of the uDbVdgeted fixed assets between $5,000 and $40,000 takes <br />Council and staff time and in an effort to streamline practices in accordance with LEAN principles, <br />it is recommended that section 3.32.040 "UObUdgeted Equipment or Fixed Assets" be removed <br />from the TK4C and the remaining TMC 3.32.030 "Bids" serve as Council control over procurement <br />Of all goods and services, including unbudgg18d fixed assets. <br />RECOMMENDATION <br />Council is being asked to approve the Ordinance toamend Ordinance No. 2245 by removing <br />section 3.32.040 "Unbudg8tHd Equipment or Fixed Assets". This item is scheduled for the April <br />24.2Oi7 Committee of the Whole, and the May 1,2O17 Regular Council Meeting. <br />ATTACHMENTS <br />Ordinance tO repeal Ordinance No. 2245. <br />Copy Of Ordinance No. 2245 <br />