HomeMy WebLinkAboutResolution No. 07-088
RESOLUTION NO. 07- () f f
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE
COLONY, TEXAS, APPROVING AND ADOPTING THE
ADMINISTRATIVE POLICIES AND PROCEDURES, PURCHASING
PROCEDURES, 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 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 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 15th day of October. 2007.
ATTEST:
(/~/t~~/~- ~
nstIe WIlson, CIty Secretary,
Robert E. Hager,
(REH/cdb 1
fjv~
("l..-
F} .:c' ,
u~."
r.
\
',\
. ',...
").~
~....> ;
, ~/ij,-
'..' A,:7
:>jJlY
aL~ :0.1:6
Page 1
TM 21058.76.000
CITY OF THE COLONY
ADMINISTRATIVE POLICIES AND PROCEDURES
SECTION:
TOPIC:
REFERENCE:
FINANCE/PURCHASING
PURCHASING PROCEDURES
(NUMERICAL BY CITY SECRETARY)
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 authorize purchases in the
following manner consistent with the Purchasing Manual. Whenever
possible, the city will solicit quotations and bids from businesses located
within the city limits.
a. Department Managers, with the Director's signature, shall approve all
purchases up to $2,999.99. Payment Authorization shall be sent
directly to Accounts payable along with the invoice.
b. For any purchase over $3,000 the Department must obtain a Purchase
Order from the Purchasing Agent prior to placing the order. A
requisition with the signatures of the Department Manager and the
Director shall be sent to the Purchasing Office. The submitting
Department shall also determine whether sufficient funding is
available prior to submitting the requisition. The requisition should
also contain suggested vendors for the product/service.
c. The City Manager or designee, after receiving a properly signed
requisition, shall approve all purchases of $3,000 to $49,999.99.
d. 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 the City Council. The competitive bid
requirements under this policy include the use of an interlocal
purchasing agreement entered into in accordance with state law.
C. DEFINITIONS
Rev. 10/15/07
Purchasing Policy & Procedures
1. Bid - A formal document used to define products and/or services to be
purchased. It is placed on the and RFP Depot web site.
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 mayor 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 information 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 all products/services in excess of $3,000).
13 . User Department - any City Department.
Rev. ] 0/15/07 Purchasing Policy & Procedures
14. Vendor - 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 or has conducted inappropriate practices
as deemed and documented by the City staff.
D. FUND A V AILABILITY
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 $1.000 to $2.999.99 - No purchase order is required. Three (3)
quotations are required, at least one (1) from a local vendor if any are
available, for purchases exceeding $1,000. Intentionally splitting
purchases to circumvent the system (i.e. two or more purchases made to
keep the amount under $3,000) will result in the Department being
required to obtain Purchase Orders for all purchases over $1,000. Failure
to consistently receive three (3) quotations will also result in the above.
Quotations must accompany the Payment Authorization Form. The user
Department may ask the Purchasing Division to post needed items on the
City's RFP Depot web site to obtain the greatest amount of quotations.
For purchases below $1,000, the using Department has the authority to
choose a vendor and place the order.
2. Purchases $3,000 to $49.999.99 - Purchased by the Purchasing Agent
a.
The User Department shall complete a requisition and forward it to
Purchasing along with any known vendors and pertinent
information.
b.
The Purchasing Agent shall determine if there are any local
vendors for this purchase and any HUB Vendors in Denton
County. The quotes will be attached to the requisition.
c.
The Purchasing Agent shall select the winning vendor based upon
the lowest overall price meeting specification(s).
d.
The Purchasing Agent will assign a Purchase Order Number and
contact the successful vendor to set up delivery.
Rev. 10/15/07
Purchasing Policy & Procedures
e. A Purchase Order must be obtained prior to any purchase over
$3,000. This includes all products and services.
3. Purchases $50.000 and above - Purchased by the Purchasing Agent
g.
h.
Rev. 10/15/07
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.
Along with the specifications and other information, the
Department may submit suggested vendors for the item(s)
requested. A time to meet with the Purchasing Agent to develop
and/or review specifications as necessary will be scheduled.
b.
The Purchasing Agent shall develop a bid package and post on the
RFP Depot web site. Any local vendors available will be
determined, and given to RFP Depot 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 will be mailed to prospective suppliers 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 RFP Depot
bid sheet, and a tabulation will then be downloaded. 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 RFP Depot web site.
f.
The User Department shall review all documents and provide a
written award recommendation to the Purchasing Agent.
The Purchasing Agent shall review and evaluate all bid documents,
including departmental recommendations, to insure total
compliance with all City policies and State laws.
If the total amount of the purchase exceeds $50,000, the
Purchasing Agent shall prepare an agenda package for City
Council approval. As per Section 271.905 of the Local
Government Code, if a 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 local vendor
Purchasing Policy & Procedures
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.
1. 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.
3. The criteria for a purchase of goods and services will be based on the
"Best Value" criteria stated in Section 252.043 of the Local Government
Code.
4. The User Department shall be responsible for the acceptance of products
by verifying specifications and inspecting the quality and quantity of all
items received.
a. Purchase Order corrections or changes shall be made by the issuer
of the original document or his designee.
b. The User Department shall remit necessary documentation to the
Finance Department for payment and coordinate vendor invoicing
as necessary.
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.
Rev. 10/15/07 Purchasing Policy & Procedures
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 PAso that the amounts are subtracted from
the PO.
I. 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.
Rev. 10/15/07
Purchasing Policy & Procedures
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 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
I. An ineligible vendor shall not be allowed to conduct business until;
a.
Financial arrears are paid in full.
b.
Inappropriate practices are corrected.
c.
Vendors have satisfied any and all penalties imposed by the City.
d.
A listing of ineligible vendors will be developed and distributed
annually by the Finance Department to all other departments
unless a greater frequency is determined by the Finance Director.
e.
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.
f.
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.
Rev. 10/15/07
Purchasing Policy & Procedures
g. 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.
Rev. 10/15/07
Purchasing Policy & Procedures