2nd Reading - Administrative Policies & Procedures

5.G COMPETITIVE QUOTES ($5,000 UP TO $50,000) All purchases within an estimated cost/value over $5,000 up to $50,000 must be obtained with competitive quotes. Normally, three quotes should be obtained. 1. Formal specifications and contract documents are not required for purchases or services up to $5,000.00 unless deemed necessary by the General Manager. However, a complete description of the item or service requested is necessary to ensure the quotes are based on the same factors. Purchases over $5,000 and larger construction projects shall require legal review and/or execution of a construction services agreement, as approved by legal counsel. 2. The General Manager makes the purchase decision after obtaining a not to exceed (NTE) written approval or email approval from the Board. A summary of said purchases must be prepared by the General Manager for the files/record and made available to the Board. The purchase decision is made u tilizing the applicable provisions outlined above for the “lowest responsible bidder”. 5.H PURCHASES UP TO $5,000 IN VALUE 1. The General Manager or his designee is authorized to make purchase decisions up to $5,000 in value without obtaining three competitive quotes or bids providing the purchase order system as established by the General Manager is utilized and providing the items are included in the approved budget for the year. The provisions specified above for the “lowest responsible bidder” shall be utilized as are appropriate; and 2. Said expenditures will be reported and summarized through the normal monthly financial report. 5.I EXCEPTIONS TO THE COMPETITIVE BID/QUOTE REQUIREMENTS 1. Where the goods/commodity can only be obtained from one vendor and the specific product is needed. 2. Emergency Purchases – Notwithstanding the other provisions of this policy, the General Manager may make purchases in any amounts without seeking approval from the Board of Directors if the purchases are necessary for any emergency up to $5,000.00 but must still obtain the authority, written if possible, from the President, but if the President is not available, then either the Vice-President or CFO, for any amount over $5,000.00. An emergency is defined as any repair involving imminent danger to life or property, or immediately necessary for the preservation and safety of the property, or for the safety of Owners, or required to avoid the suspension of any necessary service to the Association and/or the Project. It is understood and agreed that the General Manager will, if possible, confer with the Board regarding emergency expenditures. The General Manager must attempt to notify all members of the Board of Directors immediately after making such a purchase. 3. General : a. Purchases which should be in one transaction shall not be split into a series of transactions for the purpose of evading the bid/quote requirements herein. b. The Board of Directors shall annually, during the budget development process, establish the minimum dollar level above which competitive bids and quotes shall be required effective July 1 of that year. If the Board takes no action to review the dollar amounts, they shall remain as specified or as subsequently changed hereafter.

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