(A) Purchase orders shall be used for all purchases more than of $400. For all purchases under $400, a payment voucher or request for check shall be submitted, signed by the department head with all receipts attached. For small one time purchases of less than $400, petty cash may be used if approved by the Mayor, City Administrator, or Finance Director.
(B) When the value of purchases for supplies, services, goods or construction does not exceed $1,000, a limited purchase order (LPO) shall be used. The LPO shall be signed by the department head certifying that each transaction is appropriate and insuring that no abuse or unauthorized use has occurred. 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 $1,000 and less than $5,000, and the amount for the purchase has been approved in the current fiscal year’s budget, a Standard Purchase Order (SPO) shall be signed by the department head certifying that each transaction is appropriate and insuring no abuse or unauthorized use has occurred. The purchase order shall then be signed by one of the following, Mayor, City Administrator, or Finance Director.
(D) When the value of purchases for supplies, services, goods, or construction is estimated to be in excess of $5,000 and less than $10,000, and the amount for the purchase has been approved in the current fiscal year’s budget, at least two oral quotes shall be obtained by the department head. The names of the vendors and the solicited quotations shall be listed on the face of the purchase order. If the vendor selected by the department head is not the lowest cost, a statement of reason must be provided as to how the selected vendor has provided the most advantageous agreement with the city.The department head shall sign the purchase order and submit it along with all supporting documentation to one of the following for signature: Mayor, City Administrator, or Director of Finance.
(E) When the value of purchases for supplies, services, or construction is estimated to be in excess of $10,000 and less than $20,000, and the amount for the purchase has been approved in the current fiscal year’s budget, 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. If three bids are unable to be obtained a statement must be included with the purchase order as to the reasons why. 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 submitted to the City Administrator or the Finance Director for review and authorization. If the vendor selected by the department head is not the lowest cost, a statement of justification must be provided on the purchase order or as an attachment as to how the selected vendor has provided the most advantageous agreement with the city. If the City Administrator or the Finance Director, after reviewing the recommended award, finds that the contract materially deviates from the current fiscal year budget requirements in amount or activity and is outside of the department head’s fiscal authority the award will go before Council to either approve or reject the award. If the City Administrator or the Finance Director, after reviewing the recommended award, is satisfied with the process and all submitted documentation, then the purchase order shall be signed by two of the following, Mayor, City Administrator or Finance Director.
(F) All purchases and contracts and goods or services in excess of $20,000 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 City Council meeting agenda for Council consideration. Council shall have the authority to award or reject the recommended award of bid.
(G) The city 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 City Administrator has good reason to believe that the awarded bidder is the lowest qualified bidder at the time the city obtains such goods and services.
(H) 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 chapter.
(I) No purchase shall be made until it is determined by the department heads that such funds are available for the purchase and an appropriate purchase order is completed and signed by all necessary approving authorities..
(J) Incomplete purchase orders will not be accepted.
(K) All expenditures, except emergency expenditures as determined by the City Administrator, shall cease as of June 1 of each fiscal year. All invoices for all purchases must be submitted to the Director of Finance by June 30 of each fiscal year. Department heads will be held accountable for any invoices not submitted by said date.
(L) The City 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. 12-02, passed 8-27-2002; Am. Ord. 16-04, passed 9-14-04; Am. Ord. 04-09, passed 2-24-09; Am. Ord. 14-17, passed 5-9-17)