05-12-26 City Council Workshop Packet

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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. 6.6 Exceptions to Competitive Bidding Requirements If the municipality contracted for the purchase of supplies, materials, or equipment without regard to competitive bidding requirements, the purchase must be through the State of Minnesota’s cooperative purchasing venture or a national municipal association’s purchasing alliance or cooperative created by a joint powers agreement that purchases items from more than one source on the basis of competitive bids of competitive quotations. Other exceptions include bids for professional services, insurance contracts, reverse auctions, purchases from other government agencies, real estate, public safety equipment, and others as noted in Minnesota Statute Section 471.345. 6.7 Exceptions to Advance Approval by City Council The budgets approved by the City Council allocates funds for the purchase of personnel, supplies, other services, and capital. The City Council must approve all claims. Budgeting for an expenditure does not constitute payment approval authority. There are exceptions to the general requirement that City Council approval be obtained. These exceptions include: • Salaries and wages fixed by law or by Council. • Settlements of lawsuits and judgments against the City. • Principal and interest payments on obligations of the City. • Rent and other fixed charges (as set by contract and previously authorized by Council). • Claims arising from the City’s failure to perform a statutory duty. • Emergency repairs and equipment replacement. 7.0 Claims/Acquisition Process The City executes purchases depending on the dollar amount and nature of the purchase. Staff making purchases according to standards and methods will adhere to the following processes: • Itemized sales receipts, invoices, and a description of the purchase are required. • Payment requests related to departmental purchases are reviewed and approved by the department manager to ensure accuracy of coding and to be in line with the departmental budget. • Payment requests are to be submitted timely as Minnesota State Statute requires the City to make payment within 35 days of receipt. • The Finance Director, prior to City Council reviews the claims and claim register. • City Council reviews and approves all purchases by City staff at each Council meeting by the consent agenda. The required signature on all checks is three of the following: Finance Director/Treasurer, Assistant City Administrator/Clerk, Mayor, or City Administrator.