HomeMy WebLinkAboutResolution No. 2013-024
CITY OF THE COLONY, TEXAS
RESOLUTION NO. 2013- u `k'--~
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE
COLONY, TEXAS, APPROVING AND ADOPTING THE REVISED
ADMINISTRATIVE POLICIES AND PROCEDURES FOR PURCHASING
FOR THE CITY OF THE COLONY, WHICH IS ATTACHED HERETO
AND INCORPORATED HEREIN AS EXHIBIT A; AND PROVIDING AN
EFFECTIVE DATE
WHEREAS, the City of The Colony provides Administrative Policies and Procedures to
be followed within the various departments; and,
WHEREAS, Administrative Procedures providing for purchasing procedures is a
necessity; and,
WHEREAS, the City Council feels that the revised Administrative Policies and
Procedures Purchasing Procedures, which is attached hereto and incorporated herein as Exhibit
A, should be approved and adopted as the purchasing procedures for the City of The Colony.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF THE COLONY, TEXAS THAT:
Section 1. The City Council hereby approves and adopts the revised Administrative
Policies and Procedures for Purchasing Procedures, which is attached hereto and incorporated
herein as Exhibit A, as the purchasing procedures for the City of The Colony.
Section 2. This Resolution shall become effective immediately from and after its
passage, as the law and charter in such cases provides.
PASSED, APPROVED and EFFECTIVE this 2nd day of April, 2013.
Joe McCourr "Mayor
ATTES
Christie Wilson, City Secretary ao
APPROVED AS TO FORM:
Jeff Moore, City Attorney
TE X
Page 1
Procedure # 400: Purchasing Procedures
Prepared by: Finance/Purchasing Effective Date: 2/94
Revised: 3/97
Revised: 6/97
Revised: 6/98
Revised: 11/99
Revised: 6/05
Revised: 10/07
Revised: 4/13
Cross Reference:
City Manager's Review and Authorization (April, 2013):
A. PURPOSE
1. The purpose of this policy is to establish standard practices and procedures to
create an efficient and effective purchasing program for the City of The Colony.
B. POLICY
1. It is the policy of the City of The Colony to purchase items or services in an
economical manner that facilitates operating activity and is consistent with the Local
Government Code. Whenever possible, the city will solicit quotes/bids from
businesses located within the city limits. The criteria for purchasing goods and
services will be based on the "Best Value" criteria as stated in Section 252.043 of the
Local Government Code. Department Managers, with. the Director"s° signature,
shall confirm the eligibiltty of all vendors.
2. Purchase greater than .$1,000 and less than $50,000. Require a requisition and three
quotes unless the item is an identified type as explained below or a sole source.
Quotes are not required for pre-certified vendors.
3. Purchases of greater than $50,000. No purchase or contract for any goods or
services in the amount of fifty thousand dollars ($50,000) or more shall be authorized
without first having complied with the competitive bid requirements under state law
and approval by City Council. The competitive bid requirements under this policy
include the use of an interlocal purchasing agreement entered into in accordance with
state law.
4. Emergency purchases, procurement made because of a public calamity that requires
the immediate appropriation of money don't require bids, only prior signature or
verbal approval by an Assistant or City Manager. A Purchase Authorization form
with Assistant or City Manager approval and invoices should be completed and
turned into Purchasing Department as soon as possible.
C. DEFINITIONS
1. Bid - A formal document used to define products and/or services to be purchased.
2. Authorized - any person authorized by the Department Director to purchase
products and/or services within their level of authority.
3. Historically Underutilized Business (HUB) - any business determined by the
State of Texas to be a disadvantaged (minority/woman owned) vendor.
4. Invoice - a document submitted to the City of The Colony, by a vendor,
requesting payment for products and/or services received and accepted.
5. Payment Authorization - a document initiated by an authorized City
representative that approves payment to a vendor for purchases not requiring a
Purchase Order. This may also be used for progress payments as long as a copy
of the Purchase Order accompanies it, and is sent to Accounts' Payable for
disbursement.
6. Purchase, Capital - any purchase of items defined in Administrative Policy under
Capitalization.
7. Purchase, Emergency - a purchase, exempt from competitive bidding, necessary
to allow continuous operations due to unforeseen occurrences that might
otherwise jeopardize the health and/or safety of the public, staff, City property or
City equipment.
8. Purchase, Single Source - any purchase of items available from only one source
because of patents, copyrights, proprietary processes, natural monopolies, captive
replacement parts, or components for equipment.
9. Purchase Order - a document created by the Purchasing Office that gives vendor
authorization to provide supplies and services of $3,000 and above.
10. Quote - an offer, including pricing, quantity, and shipping charges, from a
vendor, which may or may not be accepted by the City staff. Department
personnel may obtain it by getting their own quotes, or by requesting the
Purchasing Agent to obtain quotes.
11. Request for Proposal (RFP) - a formal document used to solicit product and cost
inforn-iation for high technology or purchases that cannot be specifically defined
(i.e. accounting, architectural, engineering or auditing services). It is placed on
the RFP Depot web site.
12. Requisition - a document used for requesting a purchase order (used for acquiring
products/services in excess of $3,000).
13. User Department - any City Department.
14. Vendor, Eligible - any business that provides products and/or services in an open
and competitive market.
15. Vendor, Ineligible - any person, firm or corporation that is in financial arrears to
the City of The Colony, ha,~ i(Al ;Ii, mtct r °i ral J.osiftort toward the Lift, f# The,
Colon',p, or has conducted inappropriate practices as deemed and documented by
the City staff.
D. FUND AVAILABILITY
1. Verification of fund availability is the responsibility of the User Department.
2. The buyer shall verify available funds through the City's financial reporting
system during requisition entry. If funds are not available at the time, no purchase
will be made until funds are made available.
E. PROCEDURES
1. Purchases or annual contracts up to .$1,000: - No quotes or requisition are
required. Director or manager's signature on a Purchase Authorization Form and
attached invoice are sent to Accounts Payable for payment. Director has
responsibility to ensure budgeted funds are available and to choose an eligible
vendor.
2. Purchases or annual contracts $1,000 to $3,000: - No Requisition is needed for
purchases of identified types (i.e. dues, subscriptions, memberships, warranties,
refunds, training, licenses, annual maintenance, utilities, or general legal), or
purchases from a sole source. Approved Requisition is required for all other
purchases with three (3) quotes attached or documented on the requisition, at least
one (1) from a local vendor if available. Installment payments will have a copy of
previous approved requisition attached. Contractors such as electricians,
plumbers, and carpenters will be pre-certified and given annual requisition
numbers. No quotes are needed if a pre-certified contractor is used. Quotes must
list the company name, date of quote, dollar amount, and name of individual
quoting. A Payment Authorization form signed by Director or Manager, invoice,
quotes (if not a pre-certified vendor) and requisition are sent to Accounts Payable
for payinent. Intentionally splitting purchases to circumvent the system (i.e. two
or more purchases made to keep the amount under $3,000) is a policy violation.
Department Director has responsibility to ensure budget funds are available and to
choose on eligible vendor.
3. Purchases $3,000 to $49,999.99: No Requisition is needed for purchases of
identified types (i.e. dues, subscriptions, memberships, warranties, refunds,
training, licenses, annual maintenance, utilities, or general legal), or purchases
from a sole source. Contractors such as electricians, plumbers, and carpenters will
be pre-certified and given annual requisition numbers. No quotes are needed if a
pre-certified contractor is used. For all other purchases, the requisitioning
department shall contact Purchasing Agent or determine HUB or local businesses
providing the service or product. If so, one written quote of minimum three
required will be from a HUB business, and if possible, one from a local vendor.
Quotes must list the company name, date of quote, dollar amount, and name of
individual quoting. The Department will obtain and analyze at least three written
quotes, select a vendor, and provide a Requisition along with the quotes to the
Purchasing Agent. The Purchasing Agent will review the Requisition and quotes.
If approved, a copy of the Requisition will be sent back to the Department in
order to be attached to each subsequent PA sent in for payment. A Payment
Authorization form signed by Director or Manager, invoice, and Requisition are
sent to Accounts Payable for payment. Department Director has responsibility to
ensure budgeted funds are available and choose an eligible vendor.
• Department is free to make the purchase after receipt of approved
Requisition. Vendor instructed to reference Requisition number on invoice
and send invoice to Department's attention. Department will ensure
invoice is correct with Requisition, complete a Payment Authorization
form, and send with attached invoice to Accounts Payable.
4. Purchases and Invoices for Blanket Requisitions ( Contract or Agreement) ail
Pre-certified Contactors: Purchasing Agent will work with Departments to
establish Blanket Requisitions for a contract/agreement where more monitoring or
encumbering of funds is needed. Invoices and PA should reference the
Requisition number.
5. Purchases-oln a Sole Source Vendor: Purchases from a sole source vendor are
paid by a Payment Authorization Forrn with attached invoice sent to Accounts
Payable. Each sole source vendor needs to have a director approved sole source
vendor form on file with Accounts Payable before payment will be made.
6. Purchases through Interlocal agreements with other cities that have gone out for
bids, State cooperative purchase programs, regional Council of Government
(COG) programs, or BuyBoard: are sources for quotes, but will be treated as an
individual quote.
7. Purchases $50,000 and above:- Purchased by the Purchasing Agent
a. The User Department shall forward a request, along with specifications
and any other pertinent information, to the Purchasing Agent asking for
the preparation of a bid package, as well as, suggested eligible vendors for
the item(s) requested.
b. The Purchasing Agent shall develop a bid package and post on the
BidSync web site. Any local vendors available will be determined, and
given to BidSync to distribute. A notice will be published in The Colony
Courier-Leader to indicate the City's intent to accept bids in accordance
with State law. (Note: Bid packets may 1w, lairleil up at City Hall ,;4.411
m4444 fww-4.:j*e4w"ppOor*-only upon vendor request).
C. Vendor pre-bid conferences may be conducted if, in the opinion of the
Purchasing Agent and requesting Department, further explanation or
coordination is needed due to the nature of the bid.
d. The Purchasing Agent shall open bids at a designated time and place as
indicated in the bid packet. On-line bids will be downloaded as well.
Paper bids will be input into the BidSync bid sheet, and tabulated. A
representative from the User Department should be present during bid
openings.
e. The Purchasing Agent shall distribute the bid tabulation to the User
Department and post on the City's BidSync web site.
f. The User Department shall review all documents and provide a written
award recommendation to the Purchasing Agent.
g. The Purchasing Agent shall review and evaluate all bid documents,
including departmental recommendations, to insure total compliance with
all City policies and State laws.
h. If the total amount of the purchase exceeds $50,000, the requisitioning
Department shall prepare an agenda package for City Council approval.
As per Section 271.905 of the Local Government Code, if an e igib c local
vendor is within five (5%) percent of the lowest non-local vendor, a note
will be sent to the City Council so it can make a determination, in writing,
if the efluible local vendor offers the best combination of contract price
and additional economic development opportunities for the local
government. This applies only to purchases of real property or personal
property not affixed to real property.
i. If approved by the City Council, the Purchasing Agent shall complete the
requisition, assign a Purchase Order- number, notify the successful vendor
and distribute copies of the P. O. to staff.
j. If not approved, or postponed until additional information is provided, no
purchase order or award may be issued without subsequent Council
authorization.
k. The User Department shall be responsible for the acceptance of products
by verifying specifications and inspecting the quality and quantity of all
items received.
1. Purchase Order corrections or changes shall be made by the issuer of the
original document or his designee.
F. AUDIT OF DEPARTMENTAL RECORDS
1. The Purchasing Agent may audit User Department purchasing files to ensure
compliance with the procedures described herein.
G. PURCHASE ORDER/CONTRACT CHANGE ORDERS
1. For original purchase orders between $3,000 and $49,999.99, change orders
increasing or decreasing the original order by not more than 25 percent shall be
approved by the Department Director or his/her designee (unless the change order
brings the total purchase in excess of the $50,000 bidding threshold).
2. For original purchase orders greater than $50,000, change orders increasing or
decreasing the original contract or bid amount by less than $50,000 (not to exceed
25 percent of the original contract), shall be approved by the City Manager or his
designee.
3. In no case shall the combined total of all change orders exceed an increase of 25
percent of the original contract amount.
4. For original purchase orders greater than $50,000, a change order may not
decrease the original contract or bid amount by more than 25 percent without
contractor approval.
5. Change orders causing the original purchase orders to become equal to or greater
than $50,000 in the aggregate of all change orders, shall be submitted to the City
Council, regardless of the amount of increase.
H. PAYMENT AUTHORIZATIONS
1. Payment authorizations (PA's) may be used to pay for memberships, dues,
subscriptions, travel, refunds, utility bills, training, non-contractual professional
services, and pre-payment for products and/or services, etc.
2. Payment authorizations are forwarded directly to the Finance Department with the
appropriate supporting documentation and signatures.
3. If payment authorizations are made for partial payments on Encumbered
Purchase Orders (usually long term contracts and construction), a copy of the
original Purchase Order (PO) Receiving Report (Yellow Copy) is to be attached
to the PA so that the amounts are subtracted from the PO.
1. AUCTION PURCHASES
1. The Purchasing Agent may purchase budgeted items from auctions conducted by
auctioneers licensed by the State of Texas, with User Departments' prior approval,
regardless of monetary value as allowed under applicable State law existing or as
amended.
J. EMERGENCY PURCHASES
1. In the event an emergency occurs, the user Department may purchase any products
and/or services needed, and shall notify the Department Director, Purchasing Agent, City
Manager, or City Council where appropriate.
K. PURCHASES AT OR ABOVE STATE CONTRACT EXPENDITURE
LIMIT: ALTERNATE SOURCES
1. Items within the dollar amount previously approved by the City Council and
purchased through an Interlocal Agreement, a State Cooperative Program, approved
line items from the Department of Information Services (DIR), a regional Council of
Government (COG) Program, a sole source as defined under state bidding laws, or
maintenance agreements for existing hardware require no bidding.
2. The criteria for a purchase order award shall be based upon the best value as defined
by the Texas Local Government Code, section 252.043.
L. SINGLE SOURCE PURCHASES
1. Single source purchases are made in accordance with the procedures defined above
and do not require multiple quotes.
2. Documentation, in the form of a letter from the eligibi vendor and a memo from the
Department as to the need for that exact product/service, must be attached to a
requisition for a single source purchase.
M. SCIENTIFIC, TECHNICAL OR PROFESSIONAL SERVICE PURCHASES
1. A competitive sealed RFP procedure may be used for high technology procurements
as allowed under State law existing or as amended.
2. A competitive sealed RFP procedure shall be used for professional, personal or
planning services as required by State law existing or as amended.
N. INELIGIBLE VENDORS
1. An ineligible vendor shall not be allowed to conduct business until:
a. Financial arrears are paid in full.
b. Inappropriate practices are corrected.
C. Any adversarial positions have been resolved to the satisfaction of the City
Council.
d. Vendors have satisfied any and all penalties imposed by the City.
e. A listing of ineligible vendors will be developed and distributed annually
by the Finance Department to all other departments unless a greater
fi•equency is determined by the Finance Director.
£ At the recommendation of a User Department, the Purchasing Agent may
declare a vendor ineligible if it has failed to comply with the terms of a
previous award, specifications of a bid or conducted inappropriate
business practices as determined by the Finance Director or his/her
designee.
g. The penalty imposed may be for a period of up to twelve (12) months
during which time bids submitted by such vendor shall not be considered.
h. A penalty greater than twelve (12) months due to the severity of the
infraction requires the approval of the City Manager or his designee.
2. The City of The Colony reserves the right to change, modify, amend, revoke or
rescind all or part of this policy in the future.
ICI