Subject to the provisions of this chapter and within approved budgetary authority, goods and services required for department operations may be purchased by department heads subject to the following:
A. Authority To Obligate County Funds:
1. The county board chair, or his/her designee, is authorized to execute all contracts and contract renewals explicitly approved by the county board. When necessary change orders are twenty percent (20%) or less of the total project cost, the county administrator with the approval of the county board chair can authorize the change; the county board is to be informed of the change at their next meeting. Change orders over twenty percent (20%) of the project total cost will require county board approval.
2. Department heads are authorized to execute approved contracts, contract renewals and maintenance agreements in accordance with the standards set forth in this chapter.
3. Funds and accounting. Prior to the purchase approval or contract approval of any goods and services or item or combination of items, the responsible department head with signatory authority shall ensure sufficient funds are available in the approved budget and in the appropriate line item accounts in which payments are intended to be charged before county funds are encumbered.
B. Purchasing Limits:
1. For individual obligations of up to five thousand dollars ($5,000.00) per year, department heads are authorized to procure and obligate funds within the constraints of the department's annual budget without additional authorization.
2. For individual obligations of more than five thousand dollars ($5,000.00) per year not to exceed ten thousand dollars ($10,000.00) per year, with approval from the county administrator for all purchases within this cost interval prior to initiating any transaction.
3. For individual obligations of more than ten thousand dollars ($10,000.00) per year not to exceed, twenty thousand dollars ($20,000.00) per year, with the approval of the parent committee. Each department head shall receive approval from the parent committee for all purchases within this cost interval prior to initiating any transaction.
4. For individual obligations of more than twenty thousand dollars ($20,000.00) per year, with the approval of the county board. Each department head shall receive approval from the county board for all purchases with this cost interval. The county administrator and/or the department head shall then obtain county board approval prior to initiating any transaction.
5. Procurements of goods and services shall not be artificially divided in order to evade the above thresholds.
6. Approval discretion: At the discretion of the department head, county administrator or parent committee, any purchase or contract of an item, notwithstanding the estimated cost, may be presented to the county board for approval.
C. Open Purchase Orders:
1. Open purchase orders are the award of bids for goods/services which are based on a fixed purchase price with ordering and delivery scheduled throughout the fiscal year. An open or blanket purchase order may be issued to a particular vendor by department heads. These types of purchase orders shall ordinarily be issued where multiple purchases are made from a single vendor within a specified time frame or for contractual payments. For example, annual contracts that bill on a periodic basis throughout the year including software maintenance agreements, advertising contracts, fuel contracts, vehicle maintenance agreements, food service agreements, and equipment maintenance agreements.
2. The county clerk's office will provide a quarterly report to all departments showing open purchase orders. The county clerk's office will close an open purchase order with authorization from the appropriate department head.
D. General Insurance Requirements:
1. It is the requirement of Jo Daviess County that for work performed under contract and/or authorized by the county and conducted on county property that the contractor/supplier procure and maintain insurance at the expense of the contractor and without expense to the county, until final acceptance of the work. All insurance must be procured and maintained in a form satisfactory to the county.
2. Before a purchase order is released, a contract signed, or any work commenced, contractors doing business with Jo Daviess County are required to provide proof of insurance satisfactory to the county and documentation evidencing that the contractor maintains insurance that meets the requirements of the Jo Daviess County Certificate of Insurance Policy.
E. Contract Renewals:
1. For obligations of up to five thousand dollars ($5000.00) department heads are authorized to obligate county funds within the constraints of the department's annual budget to effectuate the purchase.
2. For obligations of more than five thousand dollars ($5000.00) per year, up to ten thousand dollars ($10,000.00) per year: With the consent of the county administrator, the department head is authorized to obligate county funds within the constraints of the department's annual budget to effectuate the purchase.
3. For obligations from ten thousand dollars ($10,000.00) per year to twenty thousand dollars ($20,000.00) per year: With the consent of the parent committee, the department head is authorized to obligate county funds within the constraints of the department's annual budget to effectuate the purchase.
4. For obligations in excess of twenty thousand dollars ($20,000.00) per year: The county board shall explicitly approve all contract renewals.
5. If the contract renewal includes provision changes said contract shall be reviewed by the state's attorney's office.
F. Change Orders And Other Modifications:
1. The following types of change orders must be presented to the county board for its consideration and approval:
a. A change order to an obligation originally and explicitly awarded by the county board.
b. A change order related to a project that affects more than one department's annual budget or deliverables.
c. A change order to an obligation which originally did not require the county board's explicit approval and now with said change order the total obligation exceeds twenty thousand dollars ($20,000.00).
2. The following types of change orders must be presented to the parent committee for its consideration and approval:
a. A change order to an obligation which originally required the committee's consent within the constraints of the department's annual budget.
b. A change order to an obligation which originally did not require the committee's consent and now with said change order the total obligation exceeds five thousand dollars ($5,000.00).
c. All other change orders may be approved by the using department head within the constraints of the department's annual budget provided the total cost of the obligation including the change order does not exceed five thousand dollars ($5,000.00). (Ord. 2011-4, 5-10-2011; Ord. O2021-3, 7-13-2021)