§ 30.07 VILLAGE PROCUREMENT POLICY.
   (A)   The village, in an effort to control cost during a period when expenses must be held to a minimum will follow the procurement policy listed in this section in all departments and all purchases and costs will be tracked and recorded and inventories of on-hand stock will be tracked.
   (B)   All first time salesmen, or representatives of companies doing business with the village will report to the Clerk when soliciting the village for sales of any kind. If they go to any other village properties to solicit sales, they must be sent to the Village Hall. The Village Clerk, with the Administrative Assistant, will determine if a discussion on the purchase is required by checking the inventory, and discuss the matter with department heads to determine need or bring the matter to the Village Board at the next meeting if they cannot come to an agreement.
   (C)   The department head is solely responsible for purchases for their specific department with the following responsibilities:
      (1)   All purchase requirements of any existing item must be initiated via a purchase order by the requester. Purchase orders shall be available in every department or the Clerk’s office. Purchase orders must be approved and signed by the department head and forwarded to the Clerk’s office. The Clerk will record the purchase order file copy in the department file and forward the original to the company supplying the purchase. When items are received and billed, the Clerk will mark the P.O. as completed and attach it to the bill and inventory will be updated by department head.
      (2)   Purchase orders will list items needed and quantity required, each, dozen, case, gallons, etc., the cost of each item and total cost of the purchase order and the preferred company, if one exists for the purchase. The department head may purchase from another source if the cost savings warrants it. Also required is the existing quantity in inventory and the potential “need date” to maintain a proper inventory.
      (3)   The purchase order will be signed by the requester on the body (if different than department head) and department head at the bottom. If the items are procurable by going to a regular supplier which the village has a charge account with, it may be completed at the supplier while purchase is finalized and P.O. number given to business for records. The final bill must reference the purchase order number and the purchase order must have the “charge ticket” stapled to it and turned into the Village Clerk for all purchases charged and picked up by employees and not listed under “incidental supplies.”
   (D)   Department heads will require a purchase order and approve all purchases with the following limits:
      (1)   No single item purchase can exceed $500 without the purchase order first being presented to the Village Board for approval prior to the item order being placed. Examples: printers, fax machines, firearms, fire hydrants, diesel fuel, mosquito chemicals on materials, major overhaul of a police or street department car or truck or engine, etc.
      (2)   Material costs required for a “MFT” project will be approved when the project “go ahead” is approved by the Village Board. All materials for including “MFT” project materials will require a purchase order with the MFT project name listed as the authority for the purchase in the body of the order to aid the Village Clerk in tracking project expenditures against MFT and signed by the department head.
   (E)   All departments will maintain an inventory of items purchased on a regular basis that needs to be maintained. This inventory will be furnished to the Village Clerk and updated bi-annually (December and July), by the department head. The Clerk may be notified of any changes when an item is used from the in-house inventory. This would be a good way to keep the inventory up to date and make updates easier. An inventory minimum/maximum should be set and maintained according to the usage requirements.
   (F)   Items in inventory as referenced below, must be ordered in advance of usage depletion to make sure an inventory is maintained to allow village personnel to fulfill requirements of the village without shortage of supplies that require a lead time in purchasing or Board approval or price changes. The initial inventory must be used to determine exactly how many/much of each item are required to maintain a safe inventory.
      (1)   INCIDENTAL SUPPLIES are defined as items purchased without a purchase order but tracked by a purchase contract or credit agreement such as: street department uniforms or normal gasoline purchases for city owned vehicles for every day use. Example: city pickups or police cars etc. with charge accounts at the supplier. No purchase order is required for these items.
      (2)   Street department and water: water valves, tubing, water meters and meter padlocks or housings, salt for winter, mosquito spray for summer or gravel for road work or diesel fuel or sewer cleaning chemicals, etc., must be ordered in advance of usage depletion to make sure an inventory is maintained to allow village personnel to fulfill requirements of the village without a shortage of supplies that require a long lead time in purchasing or Board approval or possible price changes.*
         *   Items which the village has had in service for many years that are obsolete and cannot be repaired may be dismantled and internal parts saved in an effort to repair. Example: an old fire hydrant busted at the bottom but good otherwise may furnish parts for a hydrant with a good base and save $800 for a new one.
      (3)   Police: Most police equipment will require a purchase order. Those items exceeding $500 each will require Village Board approval.
   (G)   Smaller purchased items that are needed on a one or two item basis and are low cost, once, can be purchased as long as they are purchased at a supplier that the village has a credit account with and a purchase order may be filled out at the supplier and the number referenced on the supplier bill when mailed to the Clerk for payment. The itemized bill is furnished to the Village Clerk attached to the purchase order. This policy does mean that all items may be purchased in this manner, this is to cover small instances that occur in an effort to continue service. Village suppliers usually request a purchase order number to add to the bill for better expenditure control at the Village level.
   (H)   In special instances, which require very costly emergency items (over $500) not normally in inventory to be purchased, an agreement between the department head and a majority of Trustees is required. This process can be completed in a matter of minutes by the department head on the phone. A purchase order must be completed the first business day following the emergency and Trustees who were contacted and approved must be listed in the body of the purchase order.
   (I)   Under most conditions, unless changed by Board approval, bids are required from at least two suppliers when the cost of any item or service exceeds $1,000.
(Ord. passed 9-1-2009)