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HomeMy WebLinkAboutResolution 5733 . . . RESOLUTION NO. 5733 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION APPROVING A NEW PURCHASING POLICY FOR THE CITY OF MOUNDS VIEW AND AMENDING SECTION 1.50 OF THE PERSONNEL MANUAL WHEREAS, the City Council directed staff to develop a new purchasing policy for the City of Mounds View; and WHEREAS, the City Council and staff have met and worked on draft policies numerous times since the fall of 2001; and WHEREAS, the accompanying policy is designed to comply with federal and state laws and the requirements of the Mounds View City Charter; and WHEREAS, the accompanying purchasing policy is designed to provide sound financial and procedural guidelines to the staff for the purchase of goods and services for the City. NOW, THEREFORE, BE IT RESOLVED that the City of Mounds View adopts the attached purchasing policy; and BE IT FURTHER RESOLVED that staff is directed to update the Personnel Manual Section 1.50 to reflect changes adopted in the purchasing policy. Adopted this 25th day of March, 2002. ..- .....---. ~ .....1.../ /_. f--... Richard Sonterre, Mayor ATTEST: ) . .../_.. ....'\ ."j. ... ....f-~ J,") : " \ v(7((\..A___ f I I I..^---tA.__ Kathleen F. Miller, City Administrator SEAL Motion by: Quick Second by: Sonterre Sonterre: Aye Quick: Aye Stigney: Aye Marty: Aye Thomas: Aye . . . CITY OF MOUNDS VIEW PURCHASING POLICY GENERAL DISCUSSION 1.1 AUTHORITY The purchasing policies of the City of Mounds View are established by the City Council under the City Charter, the City Code and state statute. 1.2 PURPOSE The purpose of this policy is to provide a legal process for the purchase of materials and services that will be the right product, in the right quality, in the right quantity, delivered to the right place, at the right time, for the right price, to allow for the efficient and effective delivery of public services to the citizens of the City of Mounds View. 1.3 BUDGET Under state statute and City Charter, the annual adoption of the budget shall constitute City Council appropriations for the year. Budgetary control shall be exercised on the department and fund levels. 1.4 RESPONSIBILITY The City Administrator shall identify Department Heads or other staff who shall be responsible for each fund or department in the annual budget. These individuals shall be responsible for compliance with the annual budget and for all expenditures for their departments and funds. 1.5 DECENTRALIZED PURCHASING The majority of City purchases are decentralized, meaning that each department handles procurement of materials and services needed for their own operation. The responsibility lies with each department to obtain bids or quotes, maintain records of bids or quotes, place actual orders, receive deliveries, and approve invoices for payment. To be uniform and save time and money in quantity purchases, the City Administrator may assign a department to centrally purchase some products. An example of this would be office supplies. TYPES OF CONTRACTS AND PURCHASES 2.1 UNIFORM MUNICIPAL CONTRACTING LAW, CHAPTER 471.345 It shall be the policy of the City of Mounds View that the Uniform Municipal Contracting Law, Minnesota Statutes Chapter 471.345 shall be the policy of the city. Changes in this law will automatically become the policy of the city. . 2.2 2.3 2.4 . 2.5 . City policy may be more restrictive than State Law, but may not be less restrictive. Records of quotes and bids shall be retained for at least one year after the completion of the contract or purchase or until the annual audit for the year of the purchase is completed, whichever is longer. MAJOR PURCHASES Sealed bids shall be obtained by public notice for major contr3cts purchases with final award by the City Council. From 2002 onward, this shall be for purchases over $50,000, per Chapter 471.345. INTERMEDIATE PURCHASES Three or more written quotes shall be obtained for intermediate contr3cts purchases with final award by the City Council. From 2002 onward, this shall be for purchases between $5,000 and $50,000. SMALL PURCHASES Purchases may be made by at least two written quotes when possible, or in the open market, at the discretion of the Department Head. From 2002 onward, this shall be for contr3cts purchases less than $5,000. Department Heads shall advise the City Administrator prior to purchases between $1,000 and $5,000. Purchases between $2,500 and $5,000 shall be approved by the City Council if they were not part of the annual budget. ONGOING SERVICE CONTRACTS Contracts for ongoing services shall be submitted to the City Council for approval regardless of their dollar amount. PROFESSIONAL SERVICES 2.5.1 Applicability This procedure applies to all advisory auditing, engineering, financial, legal, personnel, technical, training, or other services. 2.5.2 Competency Contract shall be made only with responsible consultants who have the capability to successfully fulfill the contractual requirements. Consideration shall be given to their past performance and experience, their financial capacity to complete the project, the availability of personnel, and other appropriate criteria. 2.5.3 Solicitation The nature of the professional service shall be illustrated in a request for proposals for services of greater magnitude or in a description of work for services of lesser magnitude. This shall be advertised or otherwise distributed to likely and potential service providers commensurate with the value of the contract. . 2.5.4 Selection Professional service providers shall be selected so as to provide the best value to the City considering the difficulty of the work proposed, its value to the City, the expertise and capacity of the consultant and cost. 2.5.5 Award All one-time contracts of over $5,000 and any ongoing service contracts shall be awarded by the City Council. The City Administrator shall approve one- time contracts less than $5,000. Contracts between $2,500 and $5,000 shall be approved by the City Council if they were not part of the annual budget. 2.6 EMERGENCY PURCHASES Occasions arise where an immediate purchase is necessary to protect the life, health, safety, or convenience of the citizens or to preserve the property of the City or its citizens. . To the greatest extent possible, normal purchasing procedures shall be followed. However, when expediency is required to rectify an emergency situation, any or all of these procedures may be waived. If possible, the City Administrator shall be contacted to approve the purchase. In the absence of the City Administrator, a Department Head shall approve the purchase and report to the City Administrator at the earliest opportunity. A report to the City Council shall be made at the next regular City Council meeting. 2.7 COOPERATIVE PURCHASING AGREEMENTS Where a purchase contract has been awarded by the State of Minnesota, another local government, a cooperative of local governments, or a federal agency in compliance with applicable State Statutes, and where it is legally permissible for the City of Mounds View to participate, a purchase may be through the vendor named in that contract without advertising for bids or obtaining quotes locally. The City Councilor City Administrator must still be notified and approve the purchase as defined in this policy. . 2.8 ROUTINE PAYMENTS The Finance Director may authorize certain routine payments with approval by the City Council in the form of the Just and Correct Claims List. These include: partial or progress payments on contracts or bids previously awarded by the City Council; payments to federal, state, or other local governments under a cooperative agreement previously approved by the City Councilor as required by law; payment of employee payroll withholdings, taxes, and benefits; and payment of ongoing monthly utility services to city buildings and properties. At a minimum, these costs shall be reviewed during the annual budget preparation. . . . PAYMENT METHODS 3.1 JUST AND CORRECT CLAIMS LIST A list of checks paid will be submitted for approval by the City Council at each regular City Council meeting. Approved checks will be released the following day. Any checks paid by means of Direct Expense Authorization since the previous City Council meeting will also be listed. 3.2 DEPARTMENTAL AUTHORIZATION OF INVOICE PAYMENTS Each Department Head identified by the City Administrator as being responsible for a department budget shall report to the Finance Director any deputies they are authorizing to approve invoices for payment. All authorized persons shall submit a sample of their signature or initials to the Finance Department for verification of invoice approvals. 3.3 DIRECT EXPENSE AUTHORIZATION The Finance Director is authorized to approve immediate payment of invoices, without waiting for the Just and Correct Claims List, in cases where it is necessary make payment to avoid penalties, secure discounts, or avoid disruption of city business. These payments will be included in the next Just and Correct Claims List. 3.4 CREDIT CARDS The City Council may authorize the issuance of credit cards to a limited number of city employees per MN Statutes Chapter 471.382. Credit cards will be issued to the City Administrator, Assistant City Administrator, and the Finance Director. Credit cards may be used to make purchases in instances where payment by check won't work and extension of credit by the vendor isn't available. The Department Head needing to make such purchases shall approach the credit card holders to make the purchase in the order of City Administrator, Assistant City Administrator, and Finance Director. Detailed documentation shall be secured either at the time of order or the time of receipt for the service or product purchased. All provisions of the purchasing policy apply to credit card purchases. 3.5 PETTY CASH The petty cash fund is used for the purchase of small items needed at once. The City Administrator shall authorize the number and location of petty cash funds and the amount of cash deposited in each. To be reimbursed, an employee must fill out a petty cash slip with their name, description of the purchase, account to be expensed, and amount of reimbursement. A receipt, invoice, or other documentation must accompany the slip. The Department Head or their deputy must sign the petty cash slip. . . . 3.6 CHARGE ACCOUNTS In certain cases, it will be advantageous to open charge accounts with local businesses and vendors which allow employees to purchase needed goods and services with periodic (usually monthly) billing to the city. Employees must sign sales slips or other vendor documentation at the time of sale and submit any documentation received to their supervisor. The creation of any new charge accounts will be approved by the Finance Director. MISCELLANEOUS 4.1 TRAVEL, CONFERENCES, SCHOOLS, & TRAINING The City will reimburse elected officials and employees for reasonable business travel expenses incurred while on assignments away from the normal work location. All out of state business travel must be approved in advance by the City Council. The Department Head must approve all in state business travel in advance. When approved, the cost of airfare, lodging, and registration may be paid by check or credit card to the vendor in advance of the travel date. The travel policy is stated in section 1.50 in the Personnel Manual as follows: POLICY: TRAVEL EXPENSES A. Meals B. Lodging C. Transportation 1. Airline 2. Automobile D. Reimbursement SECTION: 1.50 An elected official's or employee's approved expenses incurred while conducting City business or attending approved conferences or training are paid by the City. Expenses incurred by a spouse or other person attending a conference with an elected official or employee must be paid by the elected official or employee. A. MEALS Reimbursement for meals while on travel is only for actual expenditures. The reimbursement rate will foII ov.' not exceed the IRS per diem rate for meals and incidental expenses for the Minneapolis/St. Paul locality. For simplicity's sake, the Minneapolis/St. Paul rate shall be used for travel anywhere in the U.S. Specifically, per diem covers expenses for breakfast, lunch, dinner, and related tips and taxes; tips to porters, baggage carriers, bellhops, and maids; and other incidentals. Liquor is not an allowable expense. Individual, itemized receipts will be submitted for reimbursement. . . . When traveling locally or for less than a full day, the maximum allowance for meals, including tax and tip, shall be the following percentages of the full day per diem: Breakfast Lunch Dinner Time of Day: 12:00 AM. to 11:00 AM. 11 :00 AM. to 3:00 P.M. 3:00 P.M. to 12:00 AM. 25% 30% 45% B. LODGING The actual cost for lodging is paid by the City. Room service, personal telephone calls and other extras must be paid for by the elected official or employee. A telephone call home of reasonable length will be paid if the elected official's or employee's schedule has changed, and the return time/date is different than originally planned. C. TRANSPORTATION 1. Airline The actual cost for coach class is paid by the City. Prizes, bonuses or free trips awarded by the airlines as a result of travel paid by the City, become the property of the City and may not be accepted for personal use. Airline Travel Credits: Minnesota Statutes ~15.435 Whenever City funds are used to pay for airline travel by an elected official or employee, the elected official or employee for whom the ticket is purchased is responsible for ensuring airline travel credits (i.e., frequent flyer miles) or benefits resulting from the travel are transferred to the City. This policy applies to all airline travel paid for by the City for City elected officials or employees. 2. Automobile If an elected official or employee uses his or her own personal vehicle, he or she will be reimbursed for the amount allowed by the IRS permitted basic mileage rate. However, staff cars are to be used in most instances. This amount will automatically be adjusted per the IRS ~md recognized by the City. Actual costs for parking fees will be reimbursed. Parking receipts are required. The appropriate forms must be completed and approved by the Department Head or Deputy. See Vehicle Use Section 1.55 for automobile usage. . . . D. REIMBURSEMENT Elected officials or employees must complete an expense statement form and attach receipts for any allowable meals, lodging, transportation and/or parking expenses incurred. After obtaining Supervisor approval, submit the completed form to the Finance Department. All expenses must be supported by receipts. 4.2 MEETING EXPENSES Expenses for business meetings that incorporate a meal into other training, business, or official activities shall not be limited by the per meal costs defined in section 4.1.A in recognition that some of the cost will be for non- meal elements of the event. 4.3 MEMBERSHIPS Memberships in professional organizations shall be listed in the proposed budget and be reviewed during the budget process. Memberships not listed in the budget will need to be approved by the City Administrator prior to payment.