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Finance Director Rancatore stated that if Ordinance 18-2023 were to be passed, Lakewood <br />would not have to continuously change its purchasing limits because the State of Ohio wouldbe <br />indexing it for the city. Director Rancatore explained that the current thresholds that Lakewood <br />operates under are $7,500 for purchases and $5,000 for professional services. Any cost exceeding <br />these thresholds must go to the Board of Control. He mentioned that some municipalities near <br />Lakewood, such as Rocky River, Westlake, and North Olmsted, have purchasing limits that <br />vastly exceed Lakewood. Finance Director Rancatore went on to explain the administrative <br />burdens and unintended consequences of Lakewood’s current purchasing threshold. He <br />explained that there are a plethora of items that constantly exceed Lakewood’s purchasing limit <br />threshold. As a result, many routine services and contracts must go through the competitive <br />bidding process and get approval from the Board of Control. He emphasized that competitive <br />bidding requires additional resources and effort from private industry partners, which drives up <br />costs. As a result of the extra workload involved in competitive bidding, Finance Director <br />Rancatore argued that Lakewood often loses out on private partners because these private <br />industries do not want to go through the bidding process. Furthermore, he argued that these <br />losses put Lakewood at a competitive disadvantage relative to nearby municipalities. Finance <br />Director Rancatore went on to give examples of Lakewood’s routine costs that commonly exceed <br />the current purchasing limit threshold. <br /> <br />Public Works Director Gordon continued the presentation and described how the current <br />purchasing limit threshold has affected the Department of Public Works. He explained that many <br />equipment items exceed the $7,500 threshold and that potential vendors often do not bid due to <br />the extra work involved on items with small profit margins. He also demonstrated that <br />unscheduled auto repairs commonly exceed the threshold. As a result, he explained that essential <br />vehicles often sit without repair while awaiting approval from the Board of Control. He stated <br />that Public Works needs to be reactionary and time efficient to deliver for the residents of <br />Lakewood. <br /> <br />He expressed his belief that competitive bidding is not appropriate for many routine costs that <br />the Department of Public Works accumulates. Public Works Director Gordon went on to explain <br />costs related to parks, street repairs, and waste management that commonly exceed the current <br />threshold. He explained that private industries often do not want to bid given that they can <br />contract their products and services to other organizations without as much administrative red <br />tape. Public Works Director Gordon concluded his portion of the presentation by discussinghow <br />vitalprofessional services also frequently exceed thecurrentpurchasing limit threshold. <br />Chairman Shachner thanked the directors for their presentation and stated his belief that the <br />current purchasing threshold is too low. He then referenced the text of Ordinance 18-2023, <br />specifically section 111.04(a)(3), which creates an exception to competitive bidding for contracts <br />determined by Council to be necessary to meet emergencies, and section 111.04(a)(10), which <br />creates an exception to competitive bidding for contracts determined by Council to be <br />impractical or not cost-effective. Chairman Shachner stated his belief that section 111.04 could <br />be amended in such a way to include relief for many of the issues presented by the Directors. <br /> <br />Law Director Vargo responded by stating that in reference to section 111.04(a)(3), it usually isn’t <br />emergencies that cause delay issues, rather it is the day-to-day costs that are bogging down the <br />2 <br /> <br /> <br />