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HomeMy WebLinkAbout92-101 • CITY OF LAKEVILLE RESOLUTION Date June 15, 1992 Resolution No. 92-101 Motion By xarvey Seconded by Mulvihill RESOLUTION APPROVING PURCHASING POLICIES NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lakeville that the Purchasing Policy, a copy of which is attached, is hereby approved and adopted by the Lakeville City Council this 15th day of June, 1992. CITY OF EVILLE • BY: Duane Zaun, M yor TEST: U 1 ~ 1 ~i Charlene Friedges, 'ty Clerk • CITY OF LAKEVILLE PURCHASING POLICIES June 15, 1992 • I. PURCHASE ORDERS A. REQUIREMENTS All procurements, except those listed below as exceptions, require a purchase order. The City uses two types of purchase orders as follows: 1. Departmental purchase order for purchases of goods and services costing up to $100. Also referred to as a "small" purchase order. This purchase order is issued by the using department or division and signed by an authorized supervisory employee. A list of authorized personnel is attached. 2. General purchase order for purchases over $100. Such purchase orders must be obtained from the Finance Office by Department Managers or other authorized personnel. B. EXCEPTIONS The exceptions to the requirement for a purchase order are the general categories of refunds, meeting expenses, travel authorization, mileage reimbursement, (for which claim forms are provided),. utility bills and certain recurring contractual • expenses which occur after the initial order. If the contractual charges are for a specified period of time, a purchase order is required. This is not a "recurring" expense within the meaning of this policy. An additional exception occurs when payment is specifically ordered by the City Council as in the case of land purchase or other such agreement or a contract awarded by the Council. Other procedures are provided to cover this type of payment. All purchase orders must be obtained prior to the ordering of merchandise or services. If exact costs are unknown, an estimate will be sufficient. C. PROCEDURES The white copy of the purchase order goes to the vendor. When the vendor ships the product, the vendor must invoice the City. The invoice must be directed to the Finance Department rather than to an individual office or person. The yellow copy of the purchase order is held in the Finance Department and matched with the vendor's invoice and appropriate receiving slips. The yellow copy of a purchase order for less than $100 issued by the using department should also be sent to the Finance Department to be attached to the vendor's invoice. • The third (pink) copy of the purchase order is kept in the Finance office in a numerical file for reference purposes. The pink copy of the small purchase order is kept in the purchase . order book. The fourth (gold) copy of the purchase order goes to the Department Manager for reference purposes. The Department Manager or assigned authorized personnel is required to sign all invoices and assign the proper coding. After the invoice has been signed and coded, it should then be forwarded to the Finance office where it will be set up for payment by the Accounts Payable Clerk. All packing slips and receiving information should be forwarded to the .Finance Department upon receipt of goods. If the receiving information has not been forwarded to the Finance office upon receipt of goods, it should be attached to the invoice when the Department Manager signs and codes the invoice. II. BIDDING REQUIREMENTS All. purchases over $25,000 require formal preparation of specifications. Bids must be advertised in the City's legal .newspaper and publicly opened and approved by Council resolution. The law requires cities to award all contracts totaling $25,000 or more, along with all contracts for material, to the lowest . responsible bidder. When supplies or equipment are competitive in nature, specifications cannot exclude all but one type of equipment or supplies. (Minnesota Statutes 471.35 to 471.36) Proposals and specifications must allow free and full competition. In general, bidding requirements cannot be avoided by splitting a contract into several contracts, each of which is below the minimum amount requiring bids. For example, the city can not purchase $30,000 of lumber in several transactions, each involving an expenditure of less than $25,000. However, if materials or work logically fall into two separate contracts because they involve separate transactions, as for the service of contractors specializing in different kinds of work, there is no reason why the city can not negotiate the contracts individually without bids if the bids do not exceed the $25,000 minimum. All purchases over $500 but less than $25,000 must be based on three written quotations unless it can be shown that. the product or service is only available from one or two sources. whenever reasonably possible, purchases will be made from local vendors. All purchase orders for Capital Outlay must be signed by the City Administrator. • III. RESPONSIBILITIES • Department Managers and other persons authorized to purchase are responsible for certain functions related to purchasing and payment for goods and services received. In the absence of the Department Manager, the assistant of that department will have authorization to act in the place of the Department Manager. The responsibilities are as follows: 1. Purchasing done on a competitive basis and consistent with the approved annual budget. 2. Control of purchased goods and services to insure only authorized use. 3. Providing the Finance Department with approved invoices in a timely manner. 4. Immediate notification to the Finance Department of any circumstances affecting acceptability, performance or any other reason which may lead to withholding of payment. 5. Cooperation with the Finance Department in resolving disputes with vendors regarding terms, quantity or any questions of performance . 6. Designating budget coding of all invoices. • The Finance Department will be responsible for the following: 1. Assistance in seeking vendors to provide the best price availability. 2. Reasonable audit tests to determine fund availability, legality. and validity of obligations for payment. 3. Pay authorized bills that meet procedural requirements. IV. PAYMENT OF BILLS All bills are paid at the time of regularly scheduled Council meetings, which are held the first and third Monday of the month. In order for payment to be assured, all prerequisites for payment as described under procedures must be completed and returned to the Finance Department before the close of business on the Tuesday preceding the Council meeting. This is required to provide sufficient time for processing and preparation of the check register for the Council packets. • V. CODING The account code to which expenditures are to be charged should be • written on the invoice by the Department Manager when signing the invoice for payment. This is required to insure consistency throughout the entire accounting system, which involves expenditures as well as budgeting purposes. VI. REQUESTS FOR OTHER PAYMENTS 1. Mileage reimbursement should be requested on forms provided for that purpose. This form needs to be signed by the requestor and the requestor's Department Manager. If the Department Manager is the requestor, the Department Manager's supervisor must sign the form. 2. Requests for all seminars (local and out of town) must be approved in advance by the Department Manager and the City Administrator. A travel authorization request form must be completed and signed by the appropriate individuals prior to payment request. 3. Payment of dues, subscriptions, etc. should be made from a copy of the billing and approved by the Department Manager. The original copy of the billing will be sent with the check. 4. Requests for reimbursements to individuals must be made by the Department Manager on forms provided for that purpose. Full details of the payment purpose, as well as any supporting ® information, such as a receipt, must also be included. Again, if the Department Manager is the requestor, the Department Manager's supervisor must approve this request for payment. • VII. AUTHORIZATION The following is a list of those people who are authorized to purchase goods or services for the City within the requirements as stated above: Mayor and Council Members Robert Erickson City Administrator Dennis Feller Finance Director Brian Kempa Accountant Michael Sobota Community & Economic Dev. Director James Robinette Env. Resources & PW Director Bill Hoffbeck Street Superintendent Richard Nordling Utility Superintendent Keith Nelson City Engineer Steve Michaud Park & Recreation Director John Hoger Park Superintendent Renee Brekken Recreation Supervisor Don Gudmundson Police Chief Ron Wawrzon Police Administrative Assistant Barry Christensen Fire Chief Danny Barth Assistant Fire Chief Judy Perron Liquor Store Manager Brenda Visnovec Assistant Liquor Store Manager David Krings Chief Building Inspector Charlene Friedges City Clerk Nancy Kill Motor Vehicle Manager Christopher Oace Cable Coordinator i