(A) Purpose. To establish limits to "Blanket" Purchase Order as required by Ohio R.C. 5705.41(D)(3), and to establish general policy and guidelines for all purchase orders.
(B) General Blanket Purchase Order Limit and Procedures.
(1) The limit for general blanket purchase orders is $10,000. General blanket purchase orders do not need to be vendor specific but no more than one general blanket purchase order can be open for a specific line item at one time; however multiple blankets for the same line item may be issued over the course of the year provided total blankets issued to one account do not exceed $50,000 and no more than $25,000 is spent with any one vendor, unless additional approval is obtained from Council.
(2) Departments are required to maintain an itemized spreadsheet of all obligations and expenditures made on general blanket purchase orders and submit such itemized statement to the Finance Department on the first day of each month. Such statement should contain the date of obligation/purchase, the vendor used, and the exact amount of the purchase. Failure to provide such statement may result in the Finance Director closing the general blanket purchase order. The use of a general blanket purchase order is for purchases made on a normal reoccurring basis for various miscellaneous small dollar value items such as office products and auto parts. Individual purchases in excess of $300 are prohibited except in the case of an emergency or with the prior approval of the Finance Director. Purchases made from Amazon, or with a city credit card or any other commercial card held by the city are strictly prohibited except in the case of an emergency or with the prior approval of the Finance Director. No purchases can be made on a general blanket purchase order after November 30th as the Finance Department needs to review the November itemized statement provided by the Department to ensure that all purchases are paid for and general blanket purchase orders closed by year end.
(C) Project/Season Purchase Order. Project/season purchase orders are similar to general blanket purchase orders but can be issued in an amount not to exceed $50,000. Examples of a project/season blanket purchase order would be for events such as home days, holiday party/event, or season programs such as basketball. It is subject to the same reporting requirements, $300 purchase limit, and use of Amazon/credit cards and general blanket purchase orders; however a project/season order can be open to the same line item at the same time a general blanket purchase order since the project/season may also be linked to a project number.
(D) Super Blankets. Super blankets are used for purchases/expenditures for a specific item or a few similar items that are made on a routine ongoing basis throughout the year from a specific vendor at a known price. Examples of super blankets are utilities, phone and cell phone service, concrete, salt, and fuel. In many cases super blankets will have an underlying contract such as salt and fuel. Super blankets are generally vendor specific and if not formalized by a contract the city should have some type of supporting documentation regarding the pricing of the item or items being purchased, such as a pricing catalog. With the exception of items such as utilities and phone service Council must authorize purchases from a vendor if the estimated annual amount is $10,000 or more. Since super blankets are vendor specific monthly reporting is not required, however adequate records must be retained by the Departments so that all super blankets can be reduced at year end to the exact amount of pending invoices that will either be paid or received in the subsequent year for items purchased prior to year-end. All super blankets for items such as utilities and phone service will be closed after the December statement is received. January statements will be paid from the subsequent year appropriations even if a portion of the statement is for December of the previous year.
(E) Contract/Multi-Year Project Purchase Orders. These purchase orders will have either a contract and/or agreement to support them. They will be vendor specific and are generally for construction projects but could also be for professional services such a contract negotiations, engineering services, financial services, or other similar type services. They should be issued in the actually amount of the contract or if on a time and material basis the estimate cost of the project. Only items specifically related to the contract/project can be charged to these purchase orders and they must be closed upon completion of the project.
(F) Emergency Purchase Orders. These purchase orders are similar to general blanket purchase orders but issued to encumber funds in the event repairs are need immediately and it is not feasible to obtain a quote or estimate for the repair prior to work starting. Examples of emergency purchase orders would be for road and/or sewer repairs. These purchase orders do not have to be vendor specific. Normally no charges will occur against these purchase orders as a normal and/or contract purchase order should be requested as soon as an estimate or the actual cost of the work is known.
(G) General Provisions. The issuance of all types of blanket purchase orders is at the sole discretion of the Finance Director. With the exception of the dollar limits established within this policy the Finance Director may make necessary amendments as deemed necessary for the effective, efficient operation of the city. Such amendments, if made, should be brought to Council for formal approval no less than annually.
(Res. 2019-76, passed 5-20-2019)