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All duties pertaining to filing claims and supporting documentation pertaining to claims for Worker's Compensation and all other insurance matters of the City are hereby transferred from the City Clerk's office to the Finance Department.
(Res. 8426. Passed 1-22-97.)
(a) Establishment. There is hereby created in the Department of Finance a Purchasing Department, hereafter referred to as the Purchasing Agent, who shall be accountable to the Director of Finance.
(b) General Duties. The Purchasing Agent shall continually work to obtain the best possible prices without sacrificing needed quality, usability, and reliability for the goods and services acquired by the City. He or she shall also adhere to State contracting and purchasing laws applicable to the City and to Federal laws and procedures governing purchasing related to Federal programs operated by the City.
(c) Exceptions to Purchasing Responsibilities. The Purchasing Agent shall be responsible for all purchases or leases of goods, materials, supplies, and services obtained by the City of Johnstown with the following exceptions:
(1) Construction projects which are bid;
(2) Insurance and bonds;
(2) Consultant services; and
(4) Legal and accounting services.
(d) Assisting Department Heads. The Purchasing Agent shall assist the department heads responsible for the above acquisition with the exception of legal and accounting services.
(e) Subgranting of Funds. The subgranting of State, Federal, private- foundation, or similar funds passed through the City to other entities shall not ordinarily be judged "purchasing" in the meaning of this section.
(f) Cooperation With Other City Agencies. The Purchasing Agent shall cooperate with all department heads and other officials of the City to obtain the goods and services needed at the best prices and to make certain federal, state, and foundation grant and program regulations and/or conditions are met.
(g) Review Procedures. The Purchasing Agent shall continually review the needs of the City for various materials, supplies, parts, and services. He or she shall:
(1) Develop lists of items and probable quantities to be needed within the foreseeable future up to, but usually not in excess of, one year.
(2) Determine what items are being supplied by only one sources and seek to obtain either generic substitutes or other equivalent items distributed by more suppliers or additional competitive suppliers.
(3) Maintain contact with vendors and keep informed about market conditions affecting availability and prices of materials, supplies, parts, and services used by the City.
(4) Develop and maintain clear and accurate specifications describing the goods and services in common or recurring usage by the City.
(5) Obtain quotations or bids for items needed.
(6) For certain items in recurring use by the City, obtain competitive quotations to remain firm for a designated period of time up to one year or until changes occur in the market conditions affecting those goods and services.
(7) Award purchase contracts to the vendor offering the lowest overall cost to the City for the items quoted or their equivalents in quality and function.
(8) Develop and maintain a computerized database covering goods and services in use by the City, recording quantities, vendors, prices, and other matters.
(9) Develop and maintain a purchase-order form system.
(10) Keep informed about intergovernmental purchasing opportunities of potential benefit to the City.
(11) Develop, implement, and oversee a system for verifying the receipt and quality of goods purchased pursuant to this section.
(12) Approve all purchase orders.
(13) Provide for purchases in emergency situations.
(14) Identify needs to transfer funds among budget appropriation codes.
(h) Competition.
(1) All procurements, except unsolicited proposals pursuant to paragraph (i)(6) hereof and noncompetitive negotiation pursuant to paragraph (i)(7) hereof shall be conducted in a manner providing full and open competition.
(2) Neither the Purchasing Agent nor any other official or employee of the City shall communicate the particulars of any vendor's quotation, bid, or proposal directly or indirectly to any other vendor until after the purchase in question is made or the vendor is chosen. To further the objective of competition, the Purchasing Agent shall:
A. Not place unreasonable requirements on forms in order for them to qualify to do business.
B. Not require unnecessary experience and/or excessive bonding.
C. Discourage, expose, and avoid noncompetitive pricing practices between firms or companies.
D. Avoid noncompetitive awards to vendors that are on retainer contracts.
E. Avoid conflicts of interest.
F. Avoid specifying by "brand-name" product without allowing an "equal or equivalent" product to be offered.
G. Avoid any arbitrary action in the procurement process.
(i) Alternative Purchasing Methods.
(1) The Purchasing Agent shall make purchases on behalf of the City of Johnstown in one of the following ways:
A. By competitive bids pursuant to the contract provisions of the Pennsylvania Third Class City Code (53 P.S. Sections 36901 et seq.).
B. By direct quotations for the item or items in question pursuant to this section.
1. The Purchasing Agent may seek to obtain ad-hoc quotations from at least three vendors for goods or services needed by the City. Should two or more vendors decline to quote, the Purchasing Agent shall continue to contact vendors until the City has either received at least two quotations or the Purchasing Agent has concluded that further contact of potential vendors will be useless.
2. For direct quotes, the Purchasing Agent shall prepare a clear and accurate specification for the needed good or service, and shall obtain the quotations in writing, in a personal meeting, or by telephone, from the potential vendors. When procuring a quotation by telephone or in a personal meeting, the Purchasing Agent shall record each vendor's firm name, name of the person making the quote, a detailed description of the item, the price, warranty, delivery information, and other matters.
C. By intergovernmental cooperation with other local governments, a council of governments, the State of Pennsylvania, the Federal Government, or other public body which has utilized lawful procurement practices and is making the goods or services available to the City at a prorata cost or better.
D. By obtaining the item or items through a purchase agreement from a designated preferred supplier.
1. When the City anticipates needing an unpredictable number of common category items, the precise quantities and descriptions of which cannot be foretold (e.g. paints, lumber, electrical supplies, plumbing supplies, etc.), the Purchasing Agent may seek competitive proposals applicable to an entire inventory category supplied by such a general class of vendors. The said proposals would be in the form of a discount below the listed prices normally charged to the typically non-quantity customer for a stated period of time or for a particular project. In considering this type of proposal, the Purchasing Agent shall consider:
a. The vendor's catalogs or pricing sheets which list prices normally charged in the category of goods;
b. The quoted percentage of discount from the catalog or pricing sheets to be allowed to the City by the vendor for the period in question;
c. The general availability of the materials either in the vendor's immediate inventory or through other means of timely acquisition and distribution.
2. The Purchasing Agent shall not commit the City to a preferred purchase arrangement if the anticipated total costs applicable to that category of purchases is expected to exceed ten thousand dollars ($10,000) or more during a forthcoming twelve month period.
3. The Purchasing Agent may choose a preferred vendor for a defined period of time up to one year and award all of the City's business pertaining to that category to the preferred vendor. The preferred vendor shall furnish all of the items in the category to the City unless:
a. The preferred vendor does not have a needed item or set of items in stock or cannot make a timely delivery to the City;
b. The vendor's place of business is closed and the item is needed immediately;
c. There is a genuine emergency, and an item is needed immediately, and it is infeasible to acquire the item from the preferred vendor.
G. By designating a vendor to supply a manufacturer's line of goods or equivalent.
1. The Purchasing Agent may designate certain categories of goods used repeatedly by the City which are to be purchased from a successful vendor who has offered price quotations to remain in effect for stated periods of time or until market conditions change. Examples shall be such things as oil filters, fan belts, spark plugs, tires, bolts or other fasteners, stationery, and janitorial supplies.
2. The Purchasing Agent may designate several representative sizes or types of such goods by a leading manufacturer's part or catalog number, but any quotations sought shall also seek other manufacturers' equivalents. "Equivalent" shall mean an item supplied by one manufacturer, which item is equal in size, function, warranty and quality, to that supplied by another. Approximate quantities of need will also be indicated.
3. The Purchasing Agent may seek quotations for entire lines of items or the equivalent, meaning all the catalog listings in the line, with the prices and a percentage of discount off of the stated prices, during the period the quote, is to be in effect. When this method of purchasing is used, the Purchasing Agent shall acquire all of the category of goods from the vendor whose standing quotation, including the discount, affords the least overall cost to the City.
F. By unsolicited proposal.
1. To encourage vendors of goods and services to promote innovative improvements in the way the City operates, A vendor, or potential vendor, may submit an unsolicited proposal for an item, process, or technique which has never been used by the City.
2. After carefully reviewing an unsolicited proposal, the City may summarily accept it provided the acceptance does not violate any other City ordinance or State or Federal law or regulation. Such a proposal must:
a. Be completely unsolicited by any officials or employee of the City;
b. Provide for an innovation in City operations which is reasonably anticipated to lower costs, improve City services, or both.
3. Acceptance of any unsolicited proposal shall be reported immediately to the City Council in writing.
G. By noncompetitive negotiation.
1. "Noncompetitive negotiation" is procurement through solicitation of a proposal from only one source, or after solicitation has been attempted from a number of sources, competition is determined to be non-existent. Noncompetitive negotiation may be used when the award of a contract is infeasible under any other procurement method authorized under this section and would not violate 53 P.S. Sections 36901 et seq. or other applicable State or Federal law or regulation.
2. Circumstances under which a contract may be awarded by noncompetitive negotiation are limited to any of the following:
a. The item is available only from a single source;
b. There is a public emergency, and urgency for the item or service will not permit a delay incident to any other more competitive purchasing procedure;
c. The Federal or State grantor agency authorizes noncompetitive negotiation in connection with a program administered by the City, which is funded by the Federal or State agency;
d. After solicitation of a number of sources, competition is determined to be non-existent or inadequate.
(Ord. 4587. Passed 8-14-91.)
(2) A detailed master plan (or plans) has been developed for a set or sets of technological or equipment types and related software to be used by the City. Such plan or plans shall foster ease of maintenance, servicing, operation, training, the facilitation of spare parts and related supplies, and other factors to such a degree that it is in the City's interest to standardize the equipment makes and types. The plan and its preparation shall be open to public scrutinies and shall not be prepared by a vendor or agent for a vendor dealing in the equipment called for in the plan.
A separate plan may be applicable to the City's motorized fleet and equipment or sections thereof, computer and other automated data processing equipment, office equipment, radio transmitting and receiving equipment, and similar types of technology and equipment.
After being adopted by the City Manager, each such plan shall be submitted to the City Council.
Once a plan has been approved by the City Manager and has not been rejected by resolution of the City Council to be acted upon prior to or during the first regularly scheduled City Council meeting to occur after one month of its transmittal by the City Manager, the plan shall be presumed to be adopted and shall remain in effect until revised in the same manner as its original adoption.
(Adopting Ordinance)
(3) Except when mandated by State or Federal law or regulation, the Purchasing Agent shall have discretion to determine which category of purchase shall be utilized obtaining the various goods and services needed by the City.
(j) Conflict of Interest.
(1) No employee, officer or agent of the City of Johnstown, or grantee or subgrantee of City funds, shall participate in the selection or in the award or administration of a contract supported by City funds if a conflict of interest, real or apparent, would be involved such a conflict would arise when the employee, officer or agent, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the above, has financial or other interests in the firm selected for award.
(2) The City's officers, employees, or agents, including those of any grantees and subgrantees of City funds, shall neither solicit nor accept anything of monetary or other value from contractors, potential contractors, vendors, potential vendors, or any entity whose officers or employees are using or hope to use City controlled funds. The above prohibition shall not apply to gifts of nominal value with the firm or vendor's name appearing thereon used in advertising the firm.
(3) A violation of the foregoing conflict of interest or gratuities standards by an officer, employee or agent shall result in one or more of the following disciplinary actions:
A. A written warning or reprimand;
B. Suspension without pay for specified periods of time;
C. Termination of employment.
(4) These provisions shall not be construed as impairing any civil or criminal action against the offending party, nor shall they be construed as relieving the offending party of any responsibility under Federal or State law.
(k) Publication and Other Notice.
(1) When required by Federal or State law or regulation, the Purchasing Agent shall cause the required legal notice or other advertising to be published or otherwise posted or promulgated.
(2) If there is no mandated publication required by law, the Purchasing Agent may cause a notice to be published or otherwise promulgated if he or she has reason to believe such publication or notice will enhance competition and thereby reduce expenditures sufficiently to justify the cost of the notice.
(3) The Purchasing Agent may develop and use special forms of notice of the material and service needs of the City to include, but not be limited to: a bulletin board, leaflets, computer-to-computer transmissions, media announcements of all sorts, and vendor solicitation lists for categories of goods or services.
(l) Protest Procedures.
(1) The City of Johnstown will provide a hearing to any vendor or potential vendor or contractor or potential contractor which files a formal written protest alleging the City has erred in the administration of this section and the error has injured the protesting party.
(2) The hearing shall be conducted by the City Solicitor, the Assistant City Solicitor, or a hearing officer designated by the City Solicitor.
(3) The hearing may be formal or informal. The degree of formality shall be determined by the City Solicitor to be appropriate under the circumstances.
(4) If the hearing officer determines the City Purchasing Agent or other City official has erred, a recommended order shall be submitted in writing to the City official empowered to implement the order.
(5) If the City official refuses to implement the recommended order of the hearing officer, he or she shall answer the order in writing stating why the recommended order will not be implemented. If the order remains not implemented by action of the City administration after consultation with the City Solicitor, the matter shall be considered closed insofar as the City is concerned, and any further action by the aggrieved party shall be in the judicial system of the Commonwealth.
(m) Performance Audit. As part of the annual post audit done by an independent accounting and auditing firm, there shall be a performance audit of the administration of the purchasing program of the City which shall include, but not be limited to:
(1) The following of the procedures defined in this section and other applicable law and regulations;
(2) Any suggestions for administrative improvement;
(2) Any suggestions for revisions to this section.
(n) Relationship of Purchasing System to Accounting System. The purchase order system shall be made to relate to the accounting system of the City. Prior to each purchase order or contract being finalized, the full amount of the order shall be encumbered against the appropriate budgetary account or accounts. After goods or services are received and the invoice is paid, the encumbrance shall be eliminated and the amount paid shall be included in the expenditures for the proper account or accounts.
(o) Further Procedures and Regulations. To further the purposes of this section the Purchasing Agent may develop and communicate additional rules, policies, procedures, and forms not in conflict with this Code. These may include, but not be limited to, the following:
(1) Delegation of authority to make certain purchases.
(2) Level of authority for requisitions.
(3) Leases.
(4) Stocked materials.
(5) Stocked materials budget. Inventory control:
A. Records
B. Receipts and issues
C. Balances
(6) Qualified vendor lists.
(7) Requests for quotations and sealed bids.
(8) Blanket purchase orders.
(9) Emergency purchases.
(10) After hours, weekend, and holiday purchases.
(11) Requisition status and expediting.
(12) Receipt of purchases; discrepancies.
(13) Remedies for non-performance.
(14) Sale of surplus materials.
(15) Shipping materials.
(16) Compliance with Federal and Pennsylvania right-to-know laws.
(Ord. 4587. Passed 8-14-91.)
(EDITOR'S NOTE: Section 236.13 was repealed by implication by Ordinance 4654, passed October 27, 1993, and by the adoption, by the voters, of the Home Rule Charter for the City of Johnstown on May 18, 1993. See Section 236.14.)
(a) Fiscal Year. The fiscal year for the City of Johnstown shall be the calendar year.
(b) Budget Preparation. No later than September 15 preceding the year for which the budget is being prepared, the City Manager shall issue instructions for the said budget preparation and internal review. This shall specify a date following the availability of revenue collection figures by which time a preliminary revenue estimate shall have been completed by the Finance Director and by which time the department requests shall be presented to the City Manager. The City Manager shall also schedule individual and staff conferences with the department director and other City staff leading to the preparation of the budget.
(c) Budget Format. The City's budget shall be enacted by ordinance and shall include all City funds. The City Manager's proposed budget shall provide a complete financial plan of all Municipal funds and activities for the ensuing fiscal year and, except as required by the Home Rule Charter, shall be in such form as the City Manager deems desirable or the Council may require. In organizing the budget, the City Manager shall utilize the most feasible combination of expenditure classification by fund, organization unit, program purpose or activity, object and, if applicable, utility. The proposed budget shall contain no less than the following detailed supporting documentation appended thereto:
(1) A beginning abstract highlighting significant elements of the budget document.
(2) Detailed estimates of all revenue sources, indicating existing and proposed tax levies, as well as other assessments, fees and charges, both existing and proposed.
(3) All proposed expenditures, including debt service for the ensuing fiscal year.
(4) The number of proposed employees in each job classification developed into total salary and fringe benefit costs by organization unit.
(5) Comparative figures for actual and estimated revenue and expenditures for the current fiscal year and actual revenue and expenditures of the preceding year.
(6) Proposed expenditures, both operating and capital, for the ensuing fiscal year, detailed by offices, departments and agencies, in terms of their key work programs and the methods of financing such expenditures.
The City's budget shall be enacted by a budget ordinance which shall establish the revenue and expenditure appropriation amounts for the ensuing fiscal year and shall list all revenues and expenditures by line item, fund, department, account number, title and estimated revenues and expenditures.
The City Manager is authorized to establish, without a budget ordinance amendment, new revenue and expenditure line items when necessary for the proper administration of the City Council approved budget. Any new line item established by the City Manager shall be reported to the City Council at the next City Council meeting.
The City Manager shall, by separate ordinance, as required by Section 294.165, submit a Wage and Salary Ordinance proposing the number of employees in each job classification and the maximum authorized salary for said positions for all departments included in the City's operating budget.
(d) Budget to be Balanced. The total proposed expenditures shall not exceed the total estimated income in each fund. All estimates shall be realistic.
(e) Submission of the Budget and Budget Message. On or before the first day of November of each year, the City Manager shall submit to the Council a proposed budget by Bill No. and in ordinance format, for the ensuing fiscal year and an accompanying message which shall outline the proposed financial policies of the City, describe the important features of the budget, indicate any major changes in financial policies, expenditures, and revenues, together with the reasons for such changes, summarize the City's debt position, and include such other material as the City Manager deems desirable or the Council requests.
(1) On or before the first day of November of each year, the City Manager shall submit to the Council a proposed wage and salary ordinance by Bill No. and in ordinance format and include:
A. Position title;
B. Number of positions authorized;
C. Maximum base salary or hourly rate per position;
D. Identifying account no. by which salary and wages are debited; and
E. This information required of all City departments, including State and Federally funded program activities
(f) Grants and Special Funds. The City Manager shall establish special accounts for grants, subgrants, asset sales, and bond proceeds received from other governments, private sources or other sources, so as to permit the flexible execution or use of the same at any time during the year. However, such funds shall be coordinated with or incorporated into the budget.
(1) All funds received by the City in the form of grants, sub-grants from the Commonwealth of Pennsylvania, the U.S. Department of Housing and Urban Development (HUD), including Community Development Block Grants funds, shall be presented in the annual City budget with no less than the following details required:
A. Revenues:
1. Line item detailed by source and amounts.
2. Line item by funds available from previous years(s), by specific year and amount available from that specific year.
3. Total amount of all revenue available for appropriation current and prior year's funds.
B. Expenditures:
1. Line item detail for all proposed expenditures.
2. Expenditures for prior year's purposes indicated by line item and with the total appropriation for the specific years.
3. The detailed line items for payroll cost, fringe benefits, operating expense and fixed expenses shall include but not be limited to the following detail:
Community Development Fund | |||
ADMINISTRATIVE EXPENDITURES | |||
Payroll Cost | Fringe Benefits | Operating Expenses | Fixed Expenses |
Community Development Fund | |||
ADMINISTRATIVE EXPENDITURES | |||
Payroll Cost | Fringe Benefits | Operating Expenses | Fixed Expenses |
Salaries | Workmen's Compensation | Dues & Subscriptions | as applicable |
Longevity | Life Insurance | Phone | as applicable |
Premium Pay | Hospitalization | Legal Notices/Advertising | as applicable |
Overtime | PA Unemployment | Office Expense | as applicable |
Pension Cost | Dental Insurance | City Use Supplies | Total Fixed Expenses |
Total Payroll Cost | FICA | Postage | DUE OTHER FUNDS |
Total Fringe Benefits | Equipment Lease | Transfer to General Fund-Payroll Expense | |
Gas & Oil | Total Administrative Expense | ||
Vehicle Maintenance | Total Program Expenditures | ||
Equipment Maintenance | |||
Materials & Supplies | |||
Total Operating Expenses | |||
(g) Capital Program. The City Manager shall prepare and submit to the Council a five- year capital program at least three months prior to the final date for submission of the budget. The capital program shall include:
(1) A clear summary of its contents.
(2) A list of all capital improvements which are in the process of acquisition or construction, that are pending or proposed to be undertaken during the next five fiscal years.
(3) Cost estimates, methods of financing, justification and recommended time schedule for each improvement.
(4) The estimated annual cost of operating and maintaining the facilities to be constructed or acquired.
(h) Council Action on Budget.
(1) Amendments before adoption. The Council may adopt the budget and capital program with or without amendment. Council may add programs or amounts and may delete or decrease any programs or amounts, except expenditures required by law or for debt service or estimated deficit, provided that no amendment to the budget shall increase the total authorized expenditures greater than the total estimated income.
(2) Adoption. The Council shall adopt the forthcoming budget, capital program, tax levies and other revenue measures no later than December 31 of the fiscal year currently ending. If it fails to adopt the budget, the amount appropriated for the current fiscal year shall be deemed adopted for the ensuing fiscal year on a month-to-month basis, with all items in it prorated accordingly, until such time as the Council adopts a budget. Adoption of the budget shall constitute appropriations of the amounts specified therein as expenditures from the funds indicated.
(i) Amendments After Adoption.
(1) Supplemental appropriations. If during the fiscal year the City Manager certifies that there are available for appropriation revenues in excess of those estimated in the budget, the Council, by ordinance, may make supplemental appropriations for the year up to the amount of such excess.
(2) Emergency appropriations. To meet a public emergency affecting life, health, property or the public peace, the Council may make emergency appropriations by ordinance. To the extent that there are no available unappropriated revenues to meet such appropriations, the Council may incur debt in a manner prescribed by the Pennsylvania Local Government Unit Debt Act now in effect or as amended.
(j) Lapse of Appropriations. Every appropriation, except an appropriation for a capital expenditure, shall lapse at the close of the fiscal year to the extent that it has not been expended or encumbered. An appropriation for each capital expenditure shall continue in force until the purpose for which it was made has been accomplished, or the proposal has been discontinued by the Council.
(k) Administration of the Budget.
(1) Work programs and allotments. At such times as the City Manager shall specify, each department, office or agency shall submit work programs for the ensuing fiscal year showing the requested allotments of its appropriation by period within the year. The City Manager shall review and authorize such allotments with or without revision as early as possible in the fiscal year and may revise such allotments during the year. Work programs and allotments shall be kept current and shall be in conformity with the budget.
(2) Payments and obligations prohibited. No payment shall be made or obligation incurred against any allotment of appropriation except in accordance with appropriations duly made and unless the City Manager or his or her designee first certifies that there is a sufficient unencumbered balance in such allotment or appropriation, and that sufficient funds are or will be available to cover the claim or to meet the obligation when it becomes due and payable.
(3) Reduction of appropriations. If at any time during the fiscal year it appears probable that the revenues to be available will be insufficient to meet the amount appropriated, the City Manager shall report to the Council without delay, indicating the estimated amount of the deficit, any remedial action taken, and his or her recommendation as to any other steps to be taken. The Council shall then take such further action as it deems necessary to prevent or to minimize any deficit, and may, by ordinance, reduce one or more appropriations.
(4) Transfer of appropriations. At any time during the fiscal year the City Manager may transfer part or all of any unencumbered appropriation balance among programs within a department, office or agency and, upon written request by the City Manager, the Council may, by resolution, transfer part or all of the unencumbered appropriation balance from one department, office or agency to another. Any transfer made by the City Manager shall be reported to the City Council at the next Council meeting.
(5) Limitations; effective date. No appropriation for debt service may be reduced or transferred, and no appropriation may be reduced below any amount required by law to be appropriated or by more than the amount of the unencumbered balance thereof. The supplemental and emergency appropriations and reduction or transfer of appropriations authorized by this section may be made effective immediately upon adoption.
(l) Payment of Funds. No payment of any funds of the City shall be made unless provided for in the budget, provided, however, that payroll and utility expenditures may be made at the direction of the City Manager where the same are based upon a prior ordinance or contract. All checks or drafts of the City shall be signed by the City Manager and shall be countersigned by the Finance Director of the City.
(m) Contracts.
(1) All contracts of the City involving sums in excess of ten thousand dollars ($10,000) shall be in writing and shall be executed on behalf of the City by the City Manager. The City Manager shall also execute all contracts, regardless of the amount, for the purchase, sale, leasing or use of real estate. Authorization for contracts for the construction of capital improvements shall be by resolution.
(2) Council shall adopt an ordinance to provide for the purchasing of products, goods and services, the making of contracts and the sale or lease of personal or real property of the City. Such procedures shall provide for negotiated contracts, competitive bidding, detailed bidding procedures, assurance of controls on aggregate spending and safeguards against special interests.
(Ord. 4654. Passed 10-27-93; Ord. 4731. Passed 10-11-95; Ord. 5034. Passed 8-5-09.)
(a) Purchasing Procedures.
(1) Finance Department approval. The purchase of all materials, supplies, and services with a value under one thousand dollars ($1,000) shall not be made, nor the placement of any order without the prior approval of the department head. Purchases exceeding one thousand dollars ($1,000) shall not be placed for materials, supplies, and services without prior approval of the Department of Finance.
(2) Department heads responsibilities. It shall be the responsibility of the respective department head to:
A. Make determination of the need for all purchases.
B. Determine if the amount required for said purchase is available in the appropriate departmental budgeted line item prior to submitting a request for purchase order approval.
C. If such funds are insufficient in the amount required, the department shall request the Director of Finance to initiate a transfer of funds, or submit the issue to Council requesting an appropriation amendment or transfer from other available funds.
D. No purchase order shall be submitted to the Department of Finance unless and until sufficient funds are determined, by the respective department head.
(3) Purchase order specific purpose. All purchase orders shall be issued for specific purchases of materials, supplies, and services with a value of one thousand dollars ($1,000) or greater, and shall not be considered or used as an "OPEN PURCHASE" for additional items, material, supplies, and services.
(4) Vendors.
A. All vendors shall be notified of the provisions of this section requiring a fully executed and approved purchase order prior to the delivery or ordering of any material, supplies and services.
B. Vendors shall be given notice that any violation of the provisions of this section could result in the City's refusal to pay invoices, a delay in receiving payment or being excluded for future purchases by the City.
(5) Credit cards. The use of any City of Johnstown credit cards is permitted for the purchase of materials, supplies and services for purchases less than one thousand dollars ($1,000). All purchases one thousand dollars ($1,000) or greater shall be only through the issuance of a City of Johnstown purchase order.
(6) City employee responsibilities. Any City employee found to be in violation of this section and the requirements contained in Purchasing Policy Manual of the Department of Finance, and adopted by resolution of City Council and periodically updated as needed, may be subject to disciplinary actions for non-compliance with purchasing policies and Council adopted mandates, and subject to the penalties as provided in the City of Johnstown Administrative Code and the Codified Ordinances of the City of Johnstown.
(7) The Director of Finance shall submit the Purchasing Policy Manual to City Council on or before February 28, 2010, with all other provisions of this section effective January 1, 2010.
(b) Preaudit.
(1) All purchase orders, contracts or agreements by the City, including the Bureau of Sewage and Bureau of Parking, shall be submitted to the Director of Finance for a preaudit.
(2) "Preaudit" means that the Director shall monitor the purchasing process to make certain the amount of each purchase has been correctly encumbered in the financial accounting system, to make certain the encumbered amount and expenditure total combined do not exceed the budgeted amount for each account, and to halt purchases when the expenditures and encumbrances exceed budgetary appropriations.
(Ord. 4667. Passed 7-13-94; Ord. 5045. Passed 12-9-09; Ord. 5283. Passed 2-12-20.)
The Director of Finance is hereby authorized to countersign the master check for immediate payment of all City employees whose payroll records are not in dispute, without determining the question of any right or obligation of the City or of any employee to pay or be paid, nor in what amount.
(Ord. 4667. Passed 7-13-94.)
(a) The Director of Finance shall disburse all City funds in accordance with warrants presented to him or her.
(b) The Director shall give a lawful fidelity bond to the Commonwealth, with a surety company authorized by law of the Commonwealth to act as surety, to be approved by Council, in such sum as it may by ordinance direct, conditioned on the accounting for and paying over of all moneys received by him or her in his or her capacity as Finance Director and on the safekeeping and paying over of all public moneys entrusted to his or her care. As Tax Collector for City and School District taxes, the Finance Director shall account for and pay over all moneys received by him or her as taxes, surcharges and interest.
(c) Such fidelity bond shall be purchased through the regular City Purchasing Office based on competitive quotes and approved by Council prior to the first day of the year the Director is sworn into office.
(d) The Director shall furnish insurance protection with an insurance company authorized by the State, to be approved by Council, in an amount set by ordinance of Council, against the loss of funds through fire, burglary, larceny, theft, robbery or forgery.
(e) The Director, in order to perform the duties assigned by law to him or her, shall hire such personnel as he or she deems necessary, subject to budgetary allowances provided for by Council. Such personnel shall be subject to the general personnel policies of the City.
(Ord. 4667. Passed 7-13-94.)
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