(A) Purchase orders shall be used for all purchases in excess of $500.
(B) When the value of purchases for supplies, services, goods or construction exceeds $500, a purchase order (PO) shall be used. The PO shall be signed by the department head certifying that each transaction is appropriate and ensuring that no abuse or unauthorized use has occurred and submitted to the Town Administrator for final approval and shall be done by signature on the PO. No other signature is required on these transactions.
(C) When the value of purchases for supplies, services, goods or construction is estimated to be in excess of $500 and less than $1,500, the Town Administrator’s signature shall be required on the standard purchase order.
(D) When the value of purchases for supplies, services, goods or construction is estimated to be in excess of $1,500 and less than $3,000, the use of formal sealed bidding or competitive sealed proposals are not required. Three oral or written quotes may be obtained by the department head and given to the Town Administrator and committee chair. The names of the three vendors and the solicited quotations shall be listed on the face of the purchase order. The final decision on the purchases shall be made by the Town Administrator and committee chair.
(E) When the value of purchases for supplies, services or construction is estimated to be in excess of $3,000 and less than $7,500, purchases shall be made by obtaining written competitive quotations or bids from vendors unless the goods or services are available under state contract as awarded by the State Budget and Control Board, Division of Material Management. All open market purchases shall be based on at least three quotations. The names of the vendors and the solicited quotations shall be listed on the face of the purchase order. The recommended award, along with a copy of the purchase order, shall be placed on the Town Council meeting agenda for Council consideration. Council shall have the authority to award or reject the recommended award of bid.
(F) All purchases and contracts and goods or services in excess of $7,500 shall be made in accordance with following competitive formal bidding procedures, unless the goods or services are available under state contract as awarded by the State Budget and Control Board, Division of Material Management. All vendors and their bids shall be listed on the face of the purchase order. The recommended award, along with a copy of the purchase order, shall be placed on the Town Council meeting agenda for Council consideration. Council shall have the authority to award or reject the recommended award of bid.
(G) The town may also obtain goods and services from an awarded bidder in a competitive bidding process utilized within the preceding six months by another political subdivision of the state for substantially the same goods or services when the Town Administrator and committee has good reason to believe that the awarded bidder is the lowest qualified bidder at the time the town obtains the goods and services.
(H) The signature of the Town Administrator shall be required on all standard purchase orders. In the event of the absence or non-availability of one of these signers, the Mayor or Mayor Pro-Tempore and the Clerk/Treasurer or Utility Clerk shall be the designated signatures on the purchase orders.
(I) Purchase orders shall not be artificially divided, fragmented or structured so as to constitute a purchase under this section or to circumvent the requirements or intent of this section.
(J) No purchase shall be made until it is determined by the Town Administrator that the funds are available for the purchase.
(K) No vendor shall be used more than one time within a seven-day period.
(L) Incomplete purchase orders will not be accepted.
(M) All expenditures, except emergency expenditures as determined by the Town Administrator, shall cease as of June 30 of each fiscal year. All invoices for all purchases must be submitted to the Clerk by June 30 of each fiscal year. Department heads will be held accountable for any invoices not submitted by this date.
(N) The Town Administrator may adopt other procedures for:
(1) Small purchases such as the use of petty cash;
(2) Charge accounts; or
(3) Request for payment vouchers.
(Ord. 04-07, passed 11-18-2004)