(A)   Purchases less than $5,000.
      (1)   Purchases in this category can best be described as those day to day purchases needed to perform a job or service.
      (2)   Department directors are responsible for the purchases made by personnel within their department. They may delegate this purchasing authority to subordinates, but still bear responsibility that these procedures are followed.
      (3)   Although day to day purchasing will be done without prior approval, the responsibility still exists for making the most economical purchases. Spot price checks and surveys must be made from time to time to ensure that the price being paid is the best price available and that the quality is the best that is required.
      (4)   Day to day purchasing shall be made through that vendor who offers the best usable product at the lowest price. Also, accepting deliveries shall rate preference over picking up where no delivery charges are involved and there is no immediate need for the item.
      (5)   Invoices are forwarded to the Finance Department with account code, initials and date for processing.
   (B)   Purchases in excess of $5,000 but less than $10,000.
      (1)   Every effort shall be taken to secure at least three quotations before deciding on a suggested vendor. The requesting department shall secure the quotations themselves.
      (2)   In the event that a department director feels that a purchase under this category should be made from one certain vendor rather than through quotations, he/she should submit a memo to the City Administrator stating the reasons for the certain vendor preference.
   (C)   Purchases in excess of $10,000.
      (1)   All paperwork for such purchases must be approved by signature of the City Administrator or his/her designee.
      (2)   All other general purchasing policies will apply.
   (D)   Purchases in excess of $25,000.
      (1)   City ordinance requires that all purchases made from one vendor for the particular item or like types of items exceeding a cost of $25,000 must be accomplished through formal bidding procedures or by a bid waiver approved by the City Council. The splitting of a purchase into two or more purchase orders for the purpose of avoiding the bidding process is not allowed.
      (2)   In certain circumstances it may be felt by the department director and/or City Administrator that the best interests of the city would be served by a purchase from one particular vendor despite the amount of the purchase being in excess of $25,000. In such case, a request to waive competitive bidding must be submitted to the City Council for their consideration and approval.
      (3)   If it is found that an emergency condition exists and a purchase in excess of $25,000 must be made to remedy the emergency condition, the department director may make such purchase if verbally authorized by the City Administrator. The department director must report the purchase to the City Administration by memorandum as expeditiously as possible relating the full facts concerning the emergency and the costs incurred. A report shall then be sent to the City Council for their action as may be required. An emergency condition is described as a condition where the health and/or welfare of the city or its residents are affected.
   (E)   Petty cash.
      (1)   Petty cash drawers are maintained by the city at the City Clerk’s office ($200), Police Department ($300), and Finance Department ($300) for the purpose of reimbursing incidental costs incurred for city operations.
      (2)   The Finance Department’s cash drawer maintains a cash balance of $400 for the sole purpose of making change for transactions at the cash register. This drawer is balanced daily as part of the end of the day close process.
      (3)   Petty cash funds will be used primarily to reimburse employees for incidental expenses associated with bona fide city operations. Advances may be requested upon the approval of the department director.
      (4)   All requests for petty cash reimbursement must be submitted with appropriate receipts and documentation supporting the amount of the request. All requested information must be completed prior to making any disbursements including date of request, payee, account number to be charged, amount due, signature of requestor and a description of the nature of the expense.
      (5)   Unless otherwise authorized by the City Administrator or his/her designee, petty cash reimbursements shall be limited to no more than $50 per request. Separate requests for one purchase exceeding $50 will not be accepted.
      (6)   Responsibility for the safety, security and proper control of each petty cash drawer rests with the head of the department to which the drawer is assigned. Each department director may assign the day to day duties of petty cash administration to an appropriate custodian. All reimbursements made by the petty cash custodian must be dated and include the initials of the custodian disbursing the funds. Advances should be clearly marked on the request and marked out and revised to the correct total once the proper change is returned with the receipt.
      (7)   When the balance of the drawer is getting low, the designated custodian shall prepare a reconciliation of the petty cash fund providing a count of cash currently in the box as well as a detailed listing of petty cash reimbursement slips received. Any discrepancies must be documented and reported to the Treasurer.
      (8)   Unannounced audits of petty cash drawers may be made at any time by the Treasurer or his/her designee.
   (F)   Declared emergency purchases. If an “emergency” has been declared by the Mayor, the following guidelines will be observed:
      (1)   Any employee designed by their department director may make purchases up to $500 in estimated cost;
      (2)   Those emergency purchases with an estimated cost of $500 to $1,000 require the verbal approval of the department director or a designee prior to expenditure;
      (3)   Those emergency purchases with an estimated cost of $1,000 to $10,000 for goods and services and up to $25,000 for Public Works construction or MFT funded projects require the verbal approval of the City Administrator or a designee prior to expenditure;
      (4)   Those purchases in excess of $10,000 for goods and services and $25,000 for Public Works construction or MFT funded projects; the City Administrator is required to ask the Mayor for approval prior to expenditure. If the Mayor is unavailable, the Administrator will be authorized to enter into an emergency purchase with follow-up notification to the Mayor and City Council.
(Ord. 2011-5318, passed 4-5-2011; Am. Ord. 2020-5426, passed 2-4-2020)