6.2 POLICY - Purchasing City Of Salina
Request for Commission Action
Date Time
4/7/97 4:00 PM
AGENDA SECTION: ORIGINATING DEPARTMENT APPROVED
NO. FOR AGENDA
6 FINANCE
ITEM NO,
BY: Rodney Franz BY: ~
2
ITEM: Resolution # 97-5138 documenting and establishing the purchasing policy of the City of Salina,
KS.
BACKGROUND:
One of the outcomes of our most recent audit was a comment to management indicating that the City of
Salina did not have a "formal purchasing policy". The auditors seemed to feel that we lack consistency in
some purchase areas and a compiled written policy would be helpful.
Attached is a policy statement which attempts to document the City of Salina's existing purchasing
~ractices. In order to expedite service delivery, our purchasing practices have always been decentralized,
with the Department Heads assuming a good deal of responsibility for the process. We see no compelling
reason to change that approach.
The high points of the policy are:
1. Departmental Control, subject to common sense and good judgment, and appropriate general
management oversight for accountability.
2. Bulk and cooperative purchasing are encouraged when appropriate.
3. Diversion of materials or services to other than public use is prohibited.
4. No formal local preference; e.g., percentage preferences.
5. Competitive bids required for capital items; construction contracts policy established separately by
ordinance (Codified at City Code section 2-223).
6. Vehicles and equipment greater than $10,000 generally purchased in groups, by competitive bid.
7. Operating capital items less than $10,000 subject to Departments discretion, but competitive practices
required and bidding encouraged.
8. Requests for Proposals (RFP) are acceptable when the nature of the service or product makes
development of specifications difficult.
9. Generally, City Management has the authority to acquire items up to $10,000 in value. The
Department Head is held responsible for compliance with the annual operating budget.
10. "Routine operational" purchases, even if greater in value than $10,000, may be made by the
Department head. This is intended to apply to things such as water and wastewater treatment
chemicals, which are routinely purchased in the normal course of use, but whose aggregate cost
greatly exceeds the $10,000 limit. Competitive practices are required.
11. Good received must be documented before payment is approved.
12. The Department head may authorize purchases by subordinates within appropriate guidelines.
REQUESTED ACTION:
Approve resolution 97-5138.
COMMISSION ACTION
MOTION BY:
SECOND BY:
THAT: