WATERTOWN, S.D.(KXLG)- The Watertown City Council has unanimously approved revisions to the city’s procurement policy, a document initially adopted in April 2024. The updated policy aims to streamline processes and clarify certain areas that were previously ambiguous or cumbersome for city staff, with the addition of an approved amendment made by Mayor Ried Holien.
Interim City Manager/Chief Financial Officer Kristen Bobzien presented the revised policy to the council.
For instance, the detailed table outlining different expense levels has been replaced with a more decentralized approach.
The updated policy also provides clearer definitions and guidelines for annual and multi-year contracts. Department heads can now approve annual contracts for budgeted expenses. Multi-year contracts, however, have specific limitations on their duration and renewal terms. New multi-year contracts, regardless of budget, must come before the council for initial approval.
Renewals of existing multi-year contracts can be approved internally if they remain within the original budget, do not increase by more than 15%, and have an annual cost under $50,000.
The Finance Department will play a more active role in facilitating the bidding process across all departments to ensure a standardized approach. A significant change in the updated policy is that any future amendments will require City Council approval, a departure from the previous version, which allowed for changes at the City Manager’s discretion.
During the discussion, Mayor Ried Holien introduced an amendment to the policy, specifically addressing the approval of invoices for goods and services.
This measure aims to ensure greater transparency and awareness regarding expenditures within the mayoral and council budgets.
Councilman Randy Tupper raised concerns about the $50,000 bid limit for equipment purchases, questioning whether it provided sufficient oversight to ensure the city receives the best value for “taxpayer dollars.” He recalled a time when a Finance Committee provided more direct council involvement in procurement decisions.
Bobzien acknowledged the $50,000 threshold is aligned with state bid law and noted that while formal quotes may not always be required under that limit, the city encourages departments to seek multiple quotes to ensure responsible spending.
Following the discussion and the approval of the mayoral amendment, the council unanimously approved the resolution adopting the updated procurement policy.
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