The Kenai City Council amended municipal code to provide increased flexibility for the administration to conduct city business while maintaining sufficient safeguards to protect the public interest.
“This ordinance is intended to amend Kenai Municipal Code for purchases requiring council approval. Right now, there is a $15,000 threshold that was set back in 2005,” according to Council Member James Baisden, who sponsored the ordinance. “This ordinance is looking to increase the purchase threshold to $35,000. It will add an amendment that allows administration to increase PO’s and contracts by 15% without additional council approval and council still approves the budget.”
Municipal code establishes thresholds for and the types of purchases which require approval of the city council prior to them being made. The $15,000 limit imposed by KMC 7.15.020 is restrictive, according to Baisden, and limits the Administration’s ability to react to situations that arise during each budget year, especially with four or more weeks between some City Council meetings. The limits were last amended in 2005.
“This is not going to do anything with the budget amounts that we approve on an annual basis,” added Baisden. “Checks and balances are still in place. This would allow pretty much the directors and the chiefs, the finance director, and the city manager to work more efficiently within operating the city business.”
The proposed change is modeled after the City of Wasilla’s code which requires formal solicitation for purchases in excess of $30,000 and allows contract or purchase order amendments up to 10% with no additional council action.
The $15,000 or greater threshold requiring Council approval prior to the purchase hasn’t increased since 2005 when it increased from $2,500 to $15,000.