05-12-26 City Council Workshop Packet

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3 216348v2 Notes: • If a cooperative purchasing agreement is in place, quotations are not needed. • All purchases must be approved as part of the annual budget or within the Capital Improvement Program. The level of budgetary controls more restrictive than this policy are established at the department level. Expenditures for departments that exceed appropriations are not authorized unless additional revenue sources, unspent appropriations, or fund balances are identified and available. • Departments are responsible for collection and retention of all bids, quotes, and cooperative purchasing agreements used in the purchasing process. • As a Plan B City, State Statute 421.691 designates the manager shall be the chief purchasing agent of the City. All purchases no matter the amount are subject to audit and approval by the Council as provided in Minn. Stat. § 412.271. Purchases and contracts totaling more than $25,000 must be authorized by council. • Purchasing procedures for federal grants are outlined in Appendix C. • For any purchases that have subsequent increases in cost (i.e. change orders), the increases are to be approved in accordance with the Quick Reference Guide outlined on page 2 for the total contract price (original plus subsequent increases). This may result in additional required approvals or quotations needed. For contracts that were originally less than $10,000 but then later is increased above $10,000 but below $25,000 the City must solicit at least two quotes for the remaining work, when possible. • Subsequent increases to the contract price (change orders, amendments) are only allowed for items consistent with the specifications of the original contract. If the increases are not in the specifications of the original contract, the contractor or employee must include detailed reasoning for its inclusion, and the approval level, per the Quick Reference Guide on page 2, and must consider obtaining additional quotes, sealed bids, or request for proposals for these increases. Public Purpose Expenditures City funds must not be used for expenditures that have not been authorized in the adopted budget. All expenditures must be made by City employees and must be for a public purpose. An expenditure is made for a public purpose if it meets all of the following criteria: • It will benefit the community as a body; • It is directly related to functions of government; and • It does not have as its primary objective the benefit of a private interest. Guidelines Regarding Certain Employee Expenditures To ensure City funds are only used for public purposes in regard to certain employee expenditures, City employees must observe the following guidelines: • Expenses Related to Work Assignments o The City may pay reasonable expenses directly related to the performance of an official City activity including expenses for travel, lodging, meals, and incidental expenses that are directly related to the performance of an employee’s official job duties for the City. • Employee Safety Programs o The City may pay reasonable expenses directly related to the operation of an employee safety program when the program is required by law or the benefit of the program is clearly demonstrated and a written outline of the program is approved by the City Council.