All purchases of supplies, materials, equipment and contractual services for the offices, departments and agencies of the City government, shall be made by the purchasing authority or by other City personnel in accordance with purchase authorizations issued by the City purchasing authority.
A. Funding: Once a decision to purchase has been made, it is the responsibility of the department head or his/her designee to verify that sufficient funds have been appropriated to cover the expenditure. Each department head has the responsibility of monitoring his/her own departmental budget, line item by line item. Once a purchase has been authorized or obligated, the department head should encumber the amount of the purchase or an estimate to ensure that funds remain available for the expenditure. This is primary control over City funds and therefore yields no tolerance for those who fail to comply.
B. Authority:
1. Department heads have the authority to issue purchase orders for purchases and contracts and to make a commitment in an amount not to exceed one thousand dollars ($1,000.00) without prior permission or authorization from the City Manager or his designated Purchasing Officer; provided, however, that such purchase orders shall be submitted to the Purchasing Officer by the end of the following workday. The department head will complete and approve the purchase with his authorizing signature on a "purchase order" form. The department head has the responsibility to check the account balance to ensure that enough funds are available to cover the expenditure. If funds are not available in the appropriate account, the department head has the following options:
a. Request a budget amendment through the City Manager from the Mayor and Council.
b. Request transfer from another account within his/her own budget.
c. Not to purchase.
2. Department heads shall also be authorized to issue a purchase order upon the receipt of an invoice for recurring monthly or periodic service or rental charges. The processing of such purchase orders for payment shall be the same as provided for other purchase orders in accordance with applicable City regulations, City ordinances and State law.
C. Threshold For Bids And Quotes: The following stipulations must be placed on all purchases:
1. Purchases under one thousand dollars ($1,000.00) require no quotes or bids.
2. Amounts from one thousand dollars ($1,000.00) to two thousand dollars ($2,000.00) require three (3) verbal quotes.
3. Amounts from two thousand dollars one cent ($2,000.01) to twenty five thousand dollars ($25,000.00) require three (3) written quotes.
4. General Fund amounts over twenty five thousand dollars one cent ($25,000.01) require formal bids and approval by the Mayor and Council.
5. Trust authority amounts over fifty thousand dollars ($50,000.00) require formal bids and approval by the authority.
D. Public Competitive Bidding Act 1 : State law 2 requires that all public construction contracts be awarded to the lowest responsible bidder by free and open competitive bidding after solicitation for sealed bids. "Public construction contract" is defined, in part, as any contract exceeding fifty thousand dollars ($50,000.00) in amount awarded by any public agency for the purpose of making any public improvements, constructing any public building or making repairs to or performing maintenance on any public building. "Public improvement" is defined by the law as any beneficial or valuable change or addition, betterment, enhancement or amelioration of or upon any real property, or interest therein, belonging to a public agency, intended to enhance its value, beauty or utility or to adapt it to new or further purposes. The term does not include the direct purchase of materials, equipment or supplies by a public agency or any personal property as defined in 62 Oklahoma Statutes, 2001, section 430.1. Public agencies subject to the Public Competitive Bidding Act include all cities, towns, public trusts and any department, agency, board, commission, committee or authority of any city, town or public trust. Numerous provisions are mandated for bid notices, advertising, awarding contracts, change orders, qualification of bidders, insurance and other matters. Authority is given for waiving bidding requirements if an emergency exists, and for negotiating a contract if no timely bids are received.
In 2006, new requirements were established in 61 Oklahoma Statutes section 103(B) for contracts under fifty thousand dollars ($50,000.00). Public construction contracts less than fifty thousand dollars ($50,000.00) must be let and awarded to the lowest responsible bidder by receipt of written bids.
E. Public Trusts Bidding Law 3 : All public trust contracts for construction, labor, equipment, material or repairs in excess of twenty five thousand dollars ($25,000.00) shall be awarded by public trusts to the lowest and best competitive bidder pursuant to public invitation to bid. Authority to waive the bidding requirement is given if an emergency is declared to exist.
Note that public trusts must follow both title 61's Public Competitive Bidding Act as well as title 60's Public Trust Bidding Law.
F. Account Number Assigned; Documentation: Once a purchase has been made, the department head will approve the invoice and assign an account number to the purchase order and it will be routed to the Purchasing Officer where it will be reviewed prior to entry into the computer system. For purchases over one thousand dollars ($1,000.00) the above written stipulations regarding verbal and/or written quotes apply and need to be documented on the purchase order form.
G. Requests To City Manager: Purchase requests that exceed two thousand dollars one cent ($2,000.01) shall be submitted to the City Manager prior to the time any commitment to purchase is made. Department heads or their designees shall submit a requisition form with three (3) quotes listed on the face for requests that will exceed one thousand dollars ($1,000.00). In instances where it is impossible to ascertain the exact amount of expenditure to be made at the time of issuing any purchase order, an estimated amount may be used. The amount shown on the purchase order shall be adjusted accordingly at the time that the exact amount of the expenditure is ascertained.
H. Invoices: After satisfactory delivery of the merchandise or completion of the contract, the supplier shall deliver an invoice to the City. Such invoice shall state the supplier's name and address and must be sufficiently itemized to clearly describe each item purchased, its unit price, where applicable, the number or volume of each item purchased, its total price, the total of the purchase and the date of the purchase. The appropriate City officer shall attach the itemized invoice together with delivery tickets, freight tickets or other supporting information to the original of the purchase order and, after approving and signing said original copy of the purchase order, shall submit the purchase order for consideration for payment by the City Council.
I. Emergency Purchases: In the case of an emergency occurring outside of regular office hours, the department head may proceed on his initiative to purchase any supplies or contractual services whose immediate procurement is essential to prevent delays which may vitally affect the life, health or convenience of the citizens. In all cases where emergency purchases are made, the department head shall, within twenty four (24) business hours, send a requisition and a copy of the delivery record together with a full written report of the facts and circumstances constituting the emergency.
(Ord. 16-11-1, 11-7-2016; amd. Ord. 22-02-01, 2-7-2022)
Notes
| 1 | 1. 61 OS § 101 et seq., 2001. |
| 2 | 2. 61 OS § 103, 2001. |
| 3 | 1. 60 OS § 176(H), 2001. |