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14-7085 City of Salina Purchasing Policy AmendmentRESOLUTION NUMBER 14-7085 A RESOLUTION AMENDING RESOLUTION 97-5138 ESTABLISHING A N PURCHASING POLICY FOR THE CITY OF SALINA, KANSAS. a w ° WHEREAS, the City of Salina has determined that it is in the best interests of the 4 City to encourage procurement of goods and services for use by the City of Salina on the a basis of the best necessary quality at least cost (best value); and U WHEREAS, the City of Salina has determined that it is in the best interests of the City to provide for ready availability of goods and services to support timely and effective service delivery, with a minimum of cumbersome procedure; and WHEREAS, the City of Salina has determined that it is in the best interests of the City to maintain a competitive private sector purchasing environment for the City of Salina; and WHEREAS, the City of Salina has determined that it is in the best interests of the City to provide for appropriate budgetary control and financial oversight of the procurement process; and WHEREAS; the City of Salina has determined that the administrative authority provided within Resolution 97-5 138 needs adjustment SO NOW THEREFORE BE IT RESOLVED by the Governing Body of the City of Salina. Kansas: Section 1. General: That in the interests of eliminating delays in service provision, the City will use a de -centralized purchasing system subject to the control of this policy. ' and, within that, at the discretion of the Department Head. Departments of the City are encouraged and expected to coordinate the purchase of similar items. Bulk or large quantity purchasing is encouraged in those areas where storage space is available; and inventory can be controlled. Any purchases made are to be approved by the Department Head, and are subject to the further general oversight of the Director of Finance and the City Manager. The Department Head's signature on the edit listing shall be considered as an affirmative statement that they have reviewed all invoices entered on that listing. As such; the edit listing is required to be signed by the Department Head in all cases. Staff involved in purchasing are expected to use common sense and good judgment in the application of these guidelines. All goods must be verified as received prior to processing invoices for payment. Packing slips which are received and sent to the Department Secretary are regarded as acknowledgment that the goods were received. Initials on the invoice, and the Department O Heads signature on the entry edit listing is an affirmative statement that the goods or services were properly ordered and received for City services. Goods and services purchased by the City are intended to provide services to the public. Diversion of materials or services purchased by the City to personal or private use (without public purpose) is considered to be mis-use. and will result in administrative and/or criminal justice system consequences. Section 2. Local Preference: That in order to maintain the most competitive environment, a formal local preference option is not provided. Specifically, there is no groups of items exceed $20,000 in value. which items are of a routine operational nature and are regularly purchased by the Department, may be made by the Department Head. without prior approval of the City Manager. This specifically excludes equipment purchases, or purchases that are not routine needs of the Department. The City Manager shall receive percentage price preference in bids or other competitive processes. However, local service, city efficiency, and other similar judgment factors may be used in determining whether a purchase provides the best value. Section 3. Competitive Bidding: That written competitive bids or price quotations w - are encouraged for the purchase of an}, capital item; or minor construction or repair contract. N - Normally, a minimum of 3 bids should be solicited. A bid tabulation should be attached to ' the invoice prior to payment and filing. Capital Items (Vehicles and Equipment, Buildings) that are specifically scheduled in the annual budget, and for which the cost exceeds 520,000, shall be grouped for purchase whenever possible, with bids opened by the City Clerk or designee. The award of bids for these items shall be approved by the City Commission. Operating capital items of less than $20,000 in value which have been included in the annual budget may be purchased on the authority of the City Manager. Competitive price quotations, written or verbal, from at least three vendors are encouraged. If bids have been received, a copy of the bid tabulation should be attached to the invoice prior to payment and filing. In accordance with Charter Ordinance Number 27 and Salina City Code Sections 2- 233 through 2-239 construction contracts for capital improvements shall be approved by the City Commission prior to execution, as should change orders to existing contracts. Contracts for professional services, or similar services or items of a nature which render development of detailed specifications difficult or impossible; may be procured through the use of Requests for Proposals and negotiation of those proposals. The City uses a qualifications based selection process for professional services. Section 4. Operational Purchasing: That generally, purchases of less than $20,000 may be authorized by the City Manager or designee. Departmental Managers remain responsible for compliance with the annual operating budget for his or her own department. Staff are encouraged to use informal quotes or written competitive bidding for supplies or materials acquired in bulk, or whenever appropriate in their best judgment. If taken, a tabulation of quotes should be attached to the invoice. Purchases of small items needed in the routine course of work may be made by employees subject to the discretion and review of supervisory staff. The department head has the discretion of assigning parameters for such purchasing authorization within individual departments. Invoices for such material shall be reviewed and approved by the initial of the Department Head prior to payment being rendered. The Department Secretary or other staff ' authorized by the Department Head may initial the invoices, however, the Department Head must sign the entry edit listing. Purchases of items or material that exceed $20,000 in value, or when purchases of groups of items exceed $20,000 in value. which items are of a routine operational nature and are regularly purchased by the Department, may be made by the Department Head. without prior approval of the City Manager. This specifically excludes equipment purchases, or purchases that are not routine needs of the Department. The City Manager shall receive regular reports on such operational purchases. Non -routine, non -budgeted purchases shall require the prior approval of the City Manager. and. at his discretion, may be submitted to the Citv Commission for approval. d Section 5. Purchase Orders: That purchase orders will be made on items which w will not be received within 90 dans, on City_ Commission items, end of year encumbrances_. and specialty items which will not be received by mid-January. Invoices which apply to purchase orders will be paid as received. rather than waiting until the purchase order is complete. The invoice needs to be initialed as received and approved for payment to keep the City in good standing with the vendors. Section 6. That this resolution shall be in full force and effect from and after its adoption. Adopted by the Board of Commissioners and signed by the Mayor this 17th day of March. 2014. Barbara V. Shirley. Mayor (SEAL) AAES V��1ty Mikuths. Administrative Assistant III