HomeMy Public PortalAboutResolution 09-95 Adopting a Purchasing Policy{
RESOLUTION NO.9-95
A RESOLUTION OF THE MAYOR AND COUNCIL OF '1'HL CITY OF MCCALL, IDAHO, RELATING
TO FINANCE, ADOPTING A PURCHASING POLICY
WHEREAS:
The mayor and council desire to formally adopt policies for purchasing goods and service and to
implement a purchase order system.
NOW, THEREFORE, BE IT RESOLVED by the mayor and city council of McCall, Idaho that the Purchasing
Policy, annexed hereto and made a part of this resolution as if set forth in its entirety herein, is hereby
adopted.
PASSED AND APPROVED this 13th day of April 1995.
AUEST:
Mayor
Purchasing Policy
1.0 Purpose:, The purpose of the City of McCall Purchasing Policy is;
1.1 To obtain the most suitable services and commodities at the lowest price.
1.2 To provide a means of control over expenditures.
1.3 To have definite control over the quality of the products that are purchased.
1.4 To assist in budgetary control and cash management.
2.0 Definition of Terms: In this policy, the following terms have the meaning stated below. All other terms
shall have their regular meaning.
2.1 Blanket Purchase Order. A purchase order to a specific vendor to cover all purchases for a
specified period of time (net te-exceed one_utath.) q 14,1
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2.2 Confirming Purchase Order. A purchase order issued "after -the -fact" that is a purchase order
issued to cover goods and services already ordered under emergency circumstances.
2.3 Disbursement. Money paid out.
2.4 Encumbrance. A commitment related to an unperformed contract for goods and services.
2.5 Minor Contractor List. A list of contractors who have applied to perform contracts estimated to
cost less than $5,000 and who have submitted .necessary certificates of insurance and :cityverified
references.
2.6 Purchase. A contract to obtain goods and services (other than the services of employees) in
exchange for money.
2.7 Purchase Order. A document authorizing the delivery of specified merchandise . or the
rendering of certain services and the making of a charge for them.
2.8 Vendor. A person or organization in the business of selling goods or services.
3.0 Selection of Vendors: The selection of a particular vendor shall be determined by the suitability of the
product or service to the city's needs, its cost, and factors that make a particular offering more beneficial
to the city such as time or place of delivery: All vendors shall be given equal consideration with out
regard to political affiliation; race, color, creed, national origin or ancestry, age, sex, religion, sexual
preference or disability. When there is more than one vendor of a particular product or service, and such
product or service offerings are judged to equal in terms of quality, support .and price, the city will give
precedence to vendors whose place of business is located within the city limits of McCall over those
located outside the city limits, precedence to vendors whose place of business is located within Valley
County over those outside the county and precedence to vendors whose place of business is in the State of
Idaho over those located out of state.
4.0 Purchasing Authorities:
4.1 City Manager. The City Manager may approve payments for purchases of up to $10,000 for
items which do not appear as line items in the budget whenever circumstances warrant, provided that
there are sufficient unencumbered funds available in the department.
Purchasing Policy
4/14/95
Page.2
4,2 Department Heads. Department heads may approve payment for purchases that are listed in the
budget document provided that there are sufficient unencumbered funds available in the department
budget. Table 1 below lists the purchasing authority for each department.
4.3 Appropriation and Availability. Two requirements must be "met before funds can be disbursed.
(1) There must .be an appropriation in the annual appropriation ordinance, and (2) there must be
sufficient Gash available to make the disbursement. In some instances . it is necessary to borrow funds to
meet immediate needs pending future receipts. In others, such as when anticipated revenues are not
received, it is necessary to restrict :spending below the appropriation. The officials listed as "revenue
manager" in Table 1 are responsible for determining the sufficiency of revenues before making purchases.
TABLE 1
Department
Purchase Approving Authority
Revenue Manager
Mayor/Council
Mayor
City Clerk/Treasurer
City Manager
City Manager'
City Clerk/Treasurer
City Cleric/Treasurer
City Clerk/Treasurer
CityCleric/Treasurer
City Attorney
City Attorney
City Clerk/Treasurer
Planning and Zoning
Planning and Zoning Technician
City Cleric/Treasurer
Building Maintenance
Building Maintenance Supervisor
City Clerk/Treasurer
Police
Police Chief
City Clerk/Treasurer
Fire
Fire Chief
'City Clerk/Treasurer
Building Inspector
Building Inspector
City Clerk/Treasurer
Public Works
Public Works Director
City Clerk/Treasurer
Parks
Goff Superintendent
City Clerk/Treasurer
Streets
Public Works Director
Public Works Director
Library.
Librarian and Library Board
Librarian and Library Board
Tort Liability
City: Clerk/Treasurer
City :Clerk/Treasurer '
Recreation
Recreation Director
Recreation Director
Water: Administration
City Clerk/Treasurer
City Clerk/Treasurer
Treatment
Treatment' Plant Superintendent
City Clerk/Treasurer
Distribution System
Public Works Director
City Clerk/Treasurer
Sewer: Administration
City Clerk/Treasurer
City Clerk/Treasurer
Treatment
Treatment PlantSuperintendent
City Clerk/Treasurer
Collection System
Public Works Director
City Cleric/Treasurer
Golf: Maintenance
Golf Course Superintendent
Goff Course Superintendent
Restaurant
City Clerk/Treasurer
Golf Course Superintendent
Administration
City Cleric/Treasurer
Goff Course Superintendent
Airport: Administration
City Manager
City Manager
Maintenance
Public Works Director
City Manager
' May also approve purchases for any other department.
4.4 Delegation of Authority. Department heads are expected personally to approve disbursements
and purchase order requests since they are responsible for adherence to the budget and to this policy. This
authority may be delegated to a designated subordinate only when the Department head is ill, on vacation
or otherwise away from McCall for more than three days. Emergency purchases required while the
department head is away for less than three days shall be approved by the City Manager.
5.0 Purchase Orders: Purchase orders serve two basic functions, (1) they control costs by reducing the
opportunity for fraudulent or unnecessary purchases, and at the same time provide an assurance to vendors
that the purchase is authorized and will be paid for, and (2) they provide a more accurate budget
Purchasing Policy
4/14/95
Page 3
comparison by encumbering funds at the time the purchase order issued, rather than at the time an invoice
is processed.
5.1 Any disbursement of funds except to pay city employees for wages earned, shall be supported by a
properly authorized purchase order issued by the City Treasurer.
5.2 Purchase orders shall be requested on forms provided by the City Treasurer and must be issued
before an order is placed. Blanket purchase orders may be used for vendors from who frequent, small
purchases are made. Purchase orders shall be signed by the City Treasurer. Any purchase order with a
total amount of $1,000 or more shall also be signed by the City Manager.
5.3 The City Treasurer shall provide detailed processing instructions to Department Heads and to
prospective vendors.
5.4 Confirming purchase order requests shall be approved by the City Manager.
6.0 Minor Contracts: The City Clerk shall maintain a list of contractors to do construction work that has an
estimated cost of less than $5,000. Contractors desiring to be on such a list shall submit to the City Clerk
a Certificate of Worker's Compensation Insurance, a Certificate of General Liability Insurance with the
City of McCall as an additional named insured, a resume of experience in construction work and three
supplier references three customer references. At the time such a contract is awarded, the contractor will
be required to furnish a performance bond or irrevocable letter of credit for 105% of the contract amount.
When the need arises, the appropriate City Official shall select a contractor from the list or he or she may
ask for estimates from several of the contractors. This policy does not apply to repairs; however, City
Officials may refer to the Minor Contractors List when selecting a repairer.
7.0 Promulgating instructions: The City Manager shall issue such instructions and direction as necessary
to ensure that Department Heads and other purchasing officials are aware of and comply with this policy.
The City Manager shall also notify vendors of the Purchase Order policy.
PASSED AND APPROVED THIS /f D YA OF APR1L 1995.
ATTEST:
Mayor
City Clerk
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