HomeMy WebLinkAbout8.a. Purchasing Policy F-1 � CITY OF ROSEMOUNT
� EXECUTIVE SUMMARY FOR ACTION
CITY COUNCIL MEETING DATE: June 21, 1994
AGENDA ITEM: Purchasing Policy F-1 AGENDA SECTION:
' New Business
, PREPARED BY: Jeff May, Finance Director AGENDA Nq-Cn� � Q �
1 � CiY� V
ATTAGHMENTS: Letter from City Auditor, Copy of APPROVED BY:
Purchasing Policy F-1
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Attached for your consideration is an amended policy regarding the purchasing policies for the
City of Rosemount. The purpose of the policy is to establish specific guidelines for the
' purchase of goods and services by employees of the City of Rosemount. This policy has not
been updated since 1989 and we feel that now would be an appropriate time to do so. The
updated policy addresses legal requirements concerning contracting and addresses appropriate
internal controls regarding other purchases. Staff feels that this updated policy will enhance our
ability to operate efficiently, and at the same time, give Council assurances that al1 legal and
' control measures are being taken that are necessary.
RECOMMENDED ACTION: Motion to approve the amended Purchasing Policy F-1 .
COUNCIL ACTION:
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Page 2 - Policy F-1
with at least two
cts under $10,000 - open market or quotations (
3. For contra uotes should be kept on file.
contract quotations). If quotations are used, the q
Also, th
ere are other considerations in the Minnesota statutes as follow:
Ci that provides group insurance for 25 or more
insurance: AnY � re uirements in contracting for or
1. Group � yvith certain bidding q five
employees must comp y issuing written RFP's at least every
renewin9 that insurance, including
years.
cts: The specifications on contracts m en be written
2. Specifications on Contra e or kind of supp11es or equipm
so as not to exclude ali but one typ b�i� Wo� are
3. Contractor's Performance B bo d in an amountnotgess than the con000�the
required to give a perfo►�rnance
price if th
e contract is more than $10,000. ifi ther of credit n i'►eu of a bond.
contractor may provide an irrevocabie bank lette
ublished at least
Advertisin9 for Bids: Advertisements ft ten days n ad ance (or 21 days in
4• er and at leas
once in the official newspap rovement projects) of the last date for
advance for Chapter 429 public imp
submission of bids.
5. Awarding of Bids: If the con
tract was not awarded to the lowest responsible
bidder, the reasons must be documented in the minutes. ublic
Minnesota statutes forbid any p
6. Conflicts of Interest: In certain cases, of a sale, lease or contract to
officer authorized to take p
art in the making ersonally
' have a personal financial interest in the transaction or p
voluntanly
benefit financiaily from it. es and kinds of
7. Generic sp
ecifications are not required for noncompetitive typ
supplies and equipment.
The provisions noted
in this policy are not intended to be an exhaustive list of
Minnesota bid laws.
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Page 3 - Policy F-1
INTERNAL CONTROLS
The primary basis for the City's system of intemal control is the City's annual budget.
The budget, as adopted by the City Council, serves as the basis for the City's
spending for that year. Any expenditure over budget must be approved by the
appropriate level of responsible official. Also, any expenditure that would utilize
money budgeted from one area of a department budget for another purpose must be
communicated by that department head to the City Administrator for hislher verbal
approvaL
In addition, all purchase orders and invoices presented for payment must be approved
by the appropriate department head or supervisor and reviewed for reasonableness
and proper account coding by the Finance Department.