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Home My WebLink About8.c. County / City Legislative Package ., .11.. . . . • � � � CITY OF ROSEMOUNT Item 8 c. FOLICY TITLE: PURCHASZNG P�LICY POLICY NUMBER: F-1 PROPOSED BY: ADMINIS'TRATION DATE APPRqVED BY COUAiCIL: PURFOSE: The purpose of this policy wi11 be to establish $PE�ific guidelines for the budgcting, agproval process and expending of funds b� emg�.opees of the City of Rosemount. I. The disbursement of pubiic funds requires dil.igent scrutiny and careful regulation. The controls over these publie �unds are of two kinds. Firat, the statutorp law, which clearly spell� out detailed procedures for handling these funds. Second, controls which the 3aw doesn' t require but whieh should be part af a sound management program, This polieq will reference those laws covering manicigal disbursements and establish guidelines far 1oca1 fiscal management. In establishing and carrping out Iocal policy on purchasing and con�racting, city official.s should be careful tu adhere to all state laws and to avoid any actians which. although le�a1, map carry the agpearance of oEficial mi.�sconduct. Followiag state law and a sound lc�cal purchas3,ng policp c�tn help local aff3.cials obtain maximum benefit fram each dollar of public funds. I. A. The City of Rosemaunt is elassified under Minnesota state statute Ch�pter 412! as a sta�utorp "A" tppe citp of the 4Ch Class. This means, for ali purpases, the laws governing what the city �nay do, or not do. came fram �he state of Minnes4ta. '�4th Glass" refers t4 the papul.a�ion lenel of less than 14,000 gevple. The la� also states that, r�three steps are involved in ' making a pay�ent for cifiq purchase. They ares the cla�.m or b3.1�. must go t4 the clerk for fi�.3n$, the �ouncil �:ua� aud�.t it, and the proper city af�icial must sign and is�ue the check or order." Tt is very clesr that the City cauncil is uiC�.matelp responsible for approving all expenditure�, "Auditing" can take severai formis. In some cases this may require, by state law, such pracedure� as sealecl bids, advertising, requests for proposals and public hearings. Belaw certain 2evels of expenditures such requirements map � � not be se� and internsl checks and balances are considered sufficient to insure that public funds �re safe�uarderi. �rAud3tingn may mean actua�., individual approval of each item purchased or eome administrative apgroaeh to apprev3ng certaiz� items bp setting guidel3nes bp cast level and tppe of item to be purchased or acquired. This policp wi17, assume that a1�. state statue� �re foll.owed, as referenced, and that the policy wi1T set out gt�idelines� �o �ity staff to follow �n arder to procsss purchase requests, aC all expendi.ture levels, through the city' s praeess to city council. approval. II. APFRQYAL SCHEDULE�GUIDELINES It is tiie intent of �lie Citp of Rosemount tc� use what ever reasonable areans necessary to make expend3.tures for good and services ta the most benefit to its citizens. St�t� statutes require �ormal bidding processes, beyond c�rtain �.evels of expend�ture below the levels, Citp s�af� is encouzaged to gain competitive pricing through infor�al quotes snd pr3ce comparisons between potential supplier.�. In the "Leve1 of Approval" Chart Schedule, where forr�al bidding is not specified, thi.s gui�leline 3s assuraed, City staff is also made aware of cooperative purchasing methods available throu�h �aint city agr�ements and countp programs sneh as Hennepin County has in place. Staff is encauraged to utilize such methods where possible. II. A. General Item Purchases -- The followin$ schedule reflects levels of exgenditures and Ievels, within the city organization, o� approvsl which must be given for the purchasejcontraet. Iz• B• Gontrac�ed s�rvices for the supplying of materials, �4uip�n�nt and the rental of them is set out in Minnesota State Law Chapter 471 . Contracts for services provided ta cities for which assessments wi11 be dstermined and levied for collecti.on in connection with are governed under Minnesota State Law Chapter 429. These statutes sAecificallp gavern requirements for cities in determining the 1ega1 process to follow in entering into these contracts for all citp purchases. The�e Zaws supersede anp 1oca1 definitian of need in this area o£ purchasing s}�proval. II. C. Expenditures for normal repairs on equip�ent, which have been budgeted, wi11 be processed by department heads at levels o£ �100Q and less withvut citp administrator prior approval. Expenditures for th3s tppe of repair at a 1evel of $1001 - $5000 will be mad� by department head after cansulting with city administrator if budg�ted. Emer$encp repairs, for amaunts less than $SOOt}, will be m�de at the • • le. If not the depart�aen� discretion af the department with consultation with ��e adn�ini.strator ff he/she is ava�.�a��pair. "Emer$ency" �ay be would proceed with the emergency eratic�n defi.ned as e repair needed to ineure the co�tinued aP of the city without which Che health, safe�t� and wel far� af the�general citizenrp map be "threatened. olic will g o into effect the dap folloc�ing it�$ III. $doption hp city council. � � � � � ,.�� _ — � � � � LEVEL QF APPROVAL AmountJItem Dept. C3tp Foraial Citv �auncil Apprvval Needing Expenditure Head Adt�ini�trator Bidding Canaent Individual Ite� (see II. C) Ag�� Y N YiN {see II.B) YjN y � 1)Expenditure Review of Bills Lis�ing $� - $25Q Xes Exnend3.ture Rsu. Yea Yes 2)Expenditure Bills Listing .^ $251 - $10� Yes Xes Yes - 3)Expenditure Bi11s Listing $lOQI - $SOQO Yes Yes Yes - 4)Expenditure $5001 - $10,t)00 Yes Y�s - Yes 5)Expenditure $10,()Ol - �15,000 Yes Yes Xes 6)Expenditure $ZS,OOi and up Xes Y�s _ Yes 7)Anq CIP Item Budge�ed Yss Yes - Yes 8)Conferences Yes Yes Uae above Advise for Semi.nars Require�nents Re�ulariy Schools & Fact Budgeted Yes for Special Finding Trips Staff Functions i.e. Nat`7. Conf. 9)Part Ti� Emplopee Yes _ Yes - _ _ 10)Fu11 Time Emplopee Xes Yes - Y�s 11)SalarpjBenefit Xe� Admini.etrator Ad�ustm�nt Yes Yes - To �� ].ement ]:2)Cvnsultant(re�ular) Yes Y�s - Yes 13)Consultant Bill.s Listin � (Sgecial Prvjectsj Yes Yes RFP's - Yes 1�+)Contracted Services RF�''s or for City Programs & Yes Yes N�gotiated - Y�$ Prct�ects Contract � � � LEYEL OF APPROVAL Amountjlt� Dept. City Formal Citv Council A,pproval Needing Expenditure Head Ad�n3aCrator Bidding Conaent Individ�?� Item (see II. C) Ag�da XfK Y N (see II.B} y N y�� 1)Expenditure Review of Bil1s L3.sting $0 - $250 Yes Ex nditure Re , Yes YES p� p ,_.,_.._..,.,.,.._.__,. Z)Expenditure Bills Li�tin� $251 - �1QIX} Yes Yes Yca - 3)Expenditure Bills Listing �1001 - $SQ00 Yes Xe;� Xes - 4)Expenditure $5002 - $IO,OOU Yes Yes - Yes 5)Expenditure $10,001 - $15,QOQ Y�s Yes Yes b}Expenditure . $15,001 and up Yes Yes - Yea 7)Any CIP Item Budgeted Yes Yes Yes . 8)Conferences Xes Yss Use above Advise for Seminars Requi.rements Regular].y Schools & Fact Budgeted Xes �or Sge+�ial Finding Trips St�ff Functivns i.e, Nat'l. Gonf. 9)Part Ti� Employee Yez� Yes - w 10)Full Tic� Empl�yee Xe�s Yee Yea� I1)Salarq/�neEit Yea Ad�inis�rator Ad�ustm�nt Yes Y'es Tv Ina le��t 12)ConsulCant(regular) Yes Xes Yes 13)Consultant �iils Listi.n � (Special Pro�ects) Yes Yes_ RFP's Y�� I4)Cantracted Services RFP'a or far City Programs & Yes Yes Negotiated - Yes PI'O�EC�9 GOII�T8C C