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HomeMy WebLinkAboutPR 24873: PURCHASING AUTHORITY LIMIT FOR EDC cr ECONOMIC DEVELOPMENT ArCOBPuTr INTEROFFICE MEMORANDUM Date: March 18,2026 To: The Honorable Mayor and City Council Through: Ron Burton, CPM, City Manager I From: Krystle Muller, Chief Executive Officer-' 2 ' ' `. RE: PR 24837 I A resolution establishing a purchasing authority limit for the Port Arthur Economic Development Corporation consistent with the City of Port Arthur's current Purchasing Policies and Procedures The intent of this Agenda Item is to seek the Port Arthur City Council's establishing of a purchasing authority limit for the Port Arthur Economic Development Corporation ("PAEDC") consistent with the City of Port Arthur's(the"City")current Purchasing Policies and Procedures. r Background: The PAEDC contracts with the City for certain administrative services, including financial administration and purchasing support. Currently the PAEDC is submitting for approval to the City Council,all expenditures over$5,000.00 per a previous City Purchasing Policy.The PAEDC Board of Directors is requesting that the City apply its current Purchasing Policy for City Departments to the PAEDC to stay consistent with current practice. Budgetary Impact: None Recommendation: It is recommended the Port Arthur City Council approve establishing a purchasing authority limit for the Port Arthur Economic Development Corporation of$25,000, consistent the City of Port Arthur's current Purchasing Policies and Procedures. x PR 24837 3/17/2026 KVM-tnr RESOLUTION NO. A RESOLUTION ESTABLISHING A PURCHASING AUTHORITY LIMIT OF $25,000.00 FOR THE PORT ARTHUR ECONOMIC DEVELOPMENT CORPORATION CONSISTENT WITH THE CITY OF PORT ARTHUR'S CURRENT PURCHASING POLICIES AND PROCEDURES. WHEREAS, the Port Arthur Economic Development Corporation ("PAEDC") contracts with the City of Port Arthur ("City") for certain administrative services, including financial administration and purchasing support; and WHEREAS,the PAEDC has historically submitted purchases exceeding$5,000.00 to the City Council for approval, consistent with prior City purchasing practices; and WHEREAS,the City has subsequently revised its purchasing policies and administrative purchasing authority thresholds, allowing City departments to make purchases up to $25,000.00 without prior City Council approval, subject to compliance with applicable procurement laws, policies, and internal controls; and WHEREAS,at its regular meeting held on March 2,2026,the PAEDC Board of Directors approved a request that the City Council authorize the application of the same purchasing authority threshold to PAEDC purchases administered through the City's purchasing and financial systems; and WHEREAS, the City Council finds that aligning the PAEDC's purchasing authority with the City's current purchasing practices will improve administrative efficiency while maintaining appropriate fiscal oversight and compliance with applicable law. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR,TEXAS: Section 1. That the facts and opinions in the preamble are true and correct. Section 2. The purchasing authority applicable to the Port Arthur Economic Development Corporation is hereby established to permit purchases and expenditures of less than Twenty-Five Thousand Dollars ($25,000.00)without prior City Council approval,provided that: a. Funds have been properly budgeted and appropriated for the purchase. b. The purchase complies with all applicable provisions of Texas law, including the Texas Local Government Code and applicable procurement statutes. c. The purchase complies with.City purchasing policies,procedures, and internal controls. d. The purchase complies with any applicable policies,guidelines,or directives adopted by the PAEDC Board of Directors. Section 3. That a copy of the caption of this Resolution shall be spread upon the Minutes. READ, ADOPTED AND APPROVED on this day of A.D., 2026, at a Meeting of the City Council of the City of Port Arthur,Texas,by the following vote: AYES: Mayor Councilmembers NOES: Charlotte M. Moses,Mayor ATTEST: Christe Whitley Ned,City Secretary APPROVED: Krystle uller,PAEDC Chief Executive Officer #2538878 Paget APPROV, D • 3 FORM• G y N.Goodson,PAEDC Attorney APPROVED AS TO FORM: Roxann Pais Cotroneo,City Attorney #2538878 Page 3