(A) Scope of agent’s authority.
(1) The purchasing agents shall be authorized to make purchases on behalf of the town as directed by the Town Council or as authorized in this subchapter. For purposes of this subchapter, the term PURCHASE means to buy, procure, rent, lease, or otherwise acquire. The term includes the following activities:
(a) Preparing description of requirements;
(b) Solicitation or selection of sources;
(c) Preparation and award of contract;
(d) All phases of contract administration; and
(e) All functions that pertain to purchasing.
(I.C. 5-22-2-24)
(2) Neither the Town Manager nor the Clerk-Treasurer may issue or execute bonds, notes, or warrants of the town.
(I.C. 36-5-5-7)
(3) The purchasing agents shall not expend any money of the town for a purpose not authorized by law, or in an amount exceeding that authorized by law, or to a person not lawfully entitled to receive the money. The purchasing agent shall be bonded against violations of this section.
(4) The purchasing agents are authorized to make purchases on behalf of other boards or officers of the town (e.g., Park Board and Stormwater Utility Board) but shall comply with the description of requirements and the preference of sources established by such other board or officer when purchasing goods or services for that board or officer.
(B) Purchasing limits.
(1) The purchasing agents shall be authorized to make purchases within the purchasing limits prescribed below without prior approval of Town Council, provided that such purchase is for one of the following purposes:
(a) Payment of agency filing fees, registration fees, subscriptions of any account or payment necessary to conduct the ordinary official business of the town;
(b) Purchase of equipment or supplies regularly used in the ordinary business operations of the town, including its parks and facilities;
(c) Purchases to replace office supplies or equipment and maintenance department tools or supplies that have become lost, broken, or worn out;
(d) Purchases necessary for routine operation, maintenance, or repair of the equipment or facilities of the town;
(e) Public work expenditures for the routine operation, routine maintenance, or routine repair of a building, structure, road, curb, storm sewer, or other structure pursuant to I.C. 36-1-12-4.9; or
(f) Emergency purchases, as defined in division (G) below.
(2) All purchases must be made from an account containing sufficient funds which have been appropriated by the Town Council for that purpose. The purchasing agents’ spending authority shall be as follows.
Town General
|
Town General
| |
Custodian | Single Purchase Limit |
Clerk-Treasurer | $5,000 |
Town Manager | $5,000 |
Town Manager and Clerk-Treasurer jointly | $10,000 |
Park Board | |
Clerk-Treasurer | $750 |
Town Manager | $750 |
Town Manager and Clerk-Treasurer jointly | $1,500 |
Stormwater Utility | |
Clerk-Treasurer | $3,500 |
Town Manager | $3,500 |
Town Manager and Clerk-Treasurer jointly | $7,000 |
(3) All purchases or expenditures that exceed the limitations set forth above shall require prior approval of the Town Council or associated board.
(C) Purchasing policies.
(1) Budgeting required. Funds must be budgeted prior to making any acquisition of materials, supplies, services, or equipment. The purchasing agent needs to identify the budget account number where the funds are to be expended.
(2) Purchases that are $100 and below. Any purchase that is estimated to cost less than $100 requires an itemized invoice or receipt detailing the purchase to be turned into the office of the Clerk-Treasurer.
(3) Purchase orders estimated to be $500 up to $2,500. Any such purchase shall require two quotes to be submitted to, and filed by, the office of the Clerk-Treasurer.
(4) Purchase orders estimated to be $2,500 or more, up to $10,000. Any such purchase shall require three written quotes from different vendors to be submitted to, and filed by, the office of the Clerk-Treasurer.
(D) Authorizing purchasing agents. The purchasing agent may authorize an employee of the town to make a specific point of sale purchase on behalf of the town, but must provide the employee with prior authorization to make a purchase. The employee must return the receipt for the purchase to the authorizing agent immediately following the purchase. In no event shall a town employee be authorized make a purchase on behalf of the town except as provided herein.
(E) Receipt of goods and services. The purchasing agents or his or her qualified designee shall be responsible for receiving and inspecting all purchased goods, and inspecting all purchased services prior to accepting any goods or services into the town and accepting any receipt, bill, or invoice for such goods and services. If purchasing a good or service on behalf of a board or officer of the town, the purchasing agent may require a designated, qualified representative of such board or officer to inspect the goods or services prior to accepting them on behalf of the town. If the vendor requires the purchasing agent or such other person who receives the goods or services to sign a bill of lading, delivery ticket, or other document confirming delivery of the goods or performance of the service, the purchasing agent shall obtain and copy of such documentation as well.
(F) Invoice or bill. The purchasing agent is responsible for ensuring that a fully itemized invoice or bill is issued for each purchase. The purchasing agent or the authorized person responsible for inspecting and accepting the goods or services received shall sign the bill or invoice and shall certify that the goods or services were received and accepted on behalf of the town. The purchasing agent shall submit to the town’s fiscal agent the signed invoice or bill along with the town’s copy of any bill of lading, delivery ticket, or other documents received from the vendor or carrier.
(G) Emergency purchases. The purchasing agent may make emergency purchases that exceed the approved amounts prior to board approval only in the case of emergency situations requiring immediate repairs to key systems or facilities that, if not repaired, would be detrimental to the public, town employees, or to town property.
(H) Point of sale purchases.
(1) Many purchases by the purchasing agent shall be made through purchases from a retail establishment where no formal contract or invoice is generated. Where possible, the purchasing agent should establish accounts with regular vendors that will allow the purchasing agent or designated town employee to purchase supplies as needed on account, with an invoice issuing to the town on a monthly basis, provided that there is no finance charge, or interest charged if payments are made within 30 days of the date of invoice.
(2) Pursuant to the town’s petty cash ordinance, the purchasing agent may utilize a duly created petty cash fund, over which the purchasing agent or otherwise authorized person is a custodian for purposes of paying for point of sale purchases. Such fund shall be replenished pursuant to the terms of the petty cash ordinance.
(3) The purchasing agent may use a town credit card for point of sale purchases consistent with the terms of the credit card ordinance. However, the purchasing agent must still comply with the purchasing guidelines set forth above before using such credit cards.
(Ord. 2017-12, passed 12-14-2017)
Cross-reference:
Petty cash, see § 34.07