Purchasing, Bidding, and Contract Procedures- Collinsville, Illinois

Ordinance No. 2699
AN ORDINANCE REPEALING ORDINANCE NO. 2444, AND ENACTING A NEW ORDINANCE IN PLACE THEREOF SPECIFYING PURCHASING, BIDDING, AND CONTRACT PROCEDURES

WHEREAS, the City of Collinsville deems it necessary to have prudent financial procedures; and

WHEREAS, the following financial procedures are intended to save public monies; and,

WHEREAS, certain procedures need to be established in order to facilitate prudent spending.

NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF COLLINSVILLE, ILLINOIS, as follows:

SECTION 1: Ordinance No. 2444 adopted December 23, 1991, is hereby repealed.

SECTION 2: Purchasing Procedures

A. Purchase Orders: All purchases, except those totaling less than $200, require the completion, submittal, and approval of a City of Collinsville Purchase Order, attached hereto as Exhibit 1. Purchase orders shall be completed according to the instructions included.

B. Departmental Purchasing Agent(s): Each department head and superintendent is hereby designated as departmental purchasing agent. Each department head or superintendent may, at his discretion, appoint supervisory employee(s) as departmental purchasing agent(s), who shall be responsible for ensuring completion and submission of the required purchase order and supporting documentation. The departmental purchasing agent shall be responsible for purchasing activities in the absence of the department head/ superintendent. The department head shall be responsible for ensuring proper purchasing procedures are followed, that sufficient funds are budgeted for any and all purchases, and that required documentation is kept in the department's files.

C. Chief Purchasing Agent: The City Manager or his designee shall be Purchasing Agent for the City. Further, the Administrative Assistant to the City Manager is hereby designated Chief Purchasing Agent, who shall be responsible for reviewing and approving all purchase orders, ensuring that purchasing procedures are followed and all required supporting documentation has been completed. The Chief Purchasing Agent shall also be responsible for monitoring purchases and bringing to the attention of the City Manager any purchases or purchasing practices that may be considered unethical, improper, in violation of the stated procedures, or could be construed as a conflict of interest.

D. Responsibilities of the Chief Purchasing Agent/City Manager/City Council: The Chief Purchasing Agent shall have the authority to reject any purchase order that has not been completed according to the stated procedures, or return to the department any purchase order that requires additional attention. The Chief Purchasing Agent shall provide guidance to departments on purchasing procedures and guidelines. Any questions or instances not addressed by this procedure shall be referred to the City Manager for determination on whether to refer to the City Council for consideration or amendment of the policy.

E. State or Federal Law: Any State or Federal law that is more restrictive that this procedure shall supersede the affected portion of this procedure.

A. Purchases of Less Than $200--Department Head Approval
Purchases in this category may be made by the departmental purchasing agent. Such purchases do not require purchase orders or competitive quotes. However, the departmental purchasing agent should ensure, when possible, that such items are acquired at the lowest possible price, considering all relevant factors.

B. Purchases Between $200 and $1 ,000--Department Head Approval.
Purchases in this category may be made by the departmental purchasing agent after soliciting at least 3 competitive quotes, and obtaining a purchase order approved by the department head and chief purchasing agent. Quotes may be solicited verbally, and may be submitted verbally, and documented on the Purchasing Worksheet, attached hereto as Exhibit 2, or may be submitted in writing, via mall, fax, or hand delivery, and attached to the purchase order.

C.    Purchases Between $1,000 and $5,000--City Manager Approval.
Purchases in this category may be made by the departmental purchasing agent after soliciting at least 3 written, unsealed, quotes, and obtaining a purchase order approved by the department head, chief purchasing agent, and City Manager. Written quotes may be solicited verbally, but must be submitted in writing, via mail, fax, or hand delivery, and attached to the purchase order. If written quotes are absolutely not available, verbal quotes, documented on the Purchasing Worksheet, may be approved by the City Manager.

D.    Purchases Over $5,000--City Council Approval.
Purchases in this category require approval of the City Council, after soliciting sealed bids according to the City's Bidding Procedure attached hereto as Exhibit 3. Such bidding procedures are consistent with the requirements contained in 65 ILCS 5/8-9-1 through 5/8-9-3. Items within this category shall be purchased from the lowest responsible bidder, after due notice inviting bids. The City Council shall have the authority to award contracts within this category

A. Sole Source Purchases: In the event there is only one acceptable vendor capable of furnishing a particular service or commodity, the Chief Purchasing Agent shall be authorized to approve a purchase order requesting such purchase pursuant to the dollar limit guidelines in Section 3. The departmental purchasing agent shall be required to document the reasons why there are no other vendors capable of supplying the service or commodity on the Purchasing Worksheet. The Chief Purchasing Agent shall have the authority to require additional quotes if these reasons are not sufficient to warrant a sole source purchase, and shall consult with the City Manager as necessary. Any disputes between the department and the purchasing agent shall be directed to the City Manager.

B. Emergency Purchases: Emergency situations allowing emergency purchases shall be defined as those in which the operation of a department/division would be hampered, or when the protection and preservation of public property or life would not be possible without action requiring an emergency purchase, AND required procedures are not possible. Such purchases, not exceeding $2,500, may be made by the departmental purchasing agent after department head approval. The department head shall be responsible for determining the extent of the emergency and the need for City Manager approval for any emergency purchases between $2,500 and $5,000. Any emergency purchase in excess of $5,000 must be approved by the City Manager, who shall have the responsibility of requiring Council action as necessary.

C. Cooperative Purchasing: Purchasing from Another Governmental Entity or Organization:
In the event it is established that the City can obtain the lowest possible price by purchasing from another governmental entity, (such as the Unit 10 warehouse), competitive quotes are not required, pursuant to the dollar limit guidelines in Section 3. Purchasing State Bid Items: The City Council has not conclusively found that State Bids are necessarily the lowest cost available, and therefore authorize the City Manager to require competitive bidding, at his discretion, pursuant to the dollar limit guidelines in Section 3. Cooperative Purchasing Agreements: The City Manager shall have the responsibility of determining whether or not a cooperative purchasing agreement with another governmental unit or organization is in the best interest of the City, and shall require City Council action when he deems it necessary, pursuant to the dollar limit guidelines in Section 3.

D. Professional Services and Real Estate: Certain provisions of these procedures may be waived for professional services, at the discretion of the City Manager. Purchase orders and competitive quotes may or may/not be required. However, the approval/purchasing guidelines and dollar figure limits in Section 3 shall apply to professional services. Department heads shall consult the City Manager prior to entering into any contractual agreements of any kind. The City Manager shall have the responsibility of determining the need for City Council action. The purchase of real estate shall be specifically excluded from the provisions of this procedure.

E. Waiving of the Competitive Bidding Procedure: The City Council may waive competitive bidding by a 2/3 vote of the Council then holding office. All requests for waiving the competitive bidding process for purchases over $5,000 must be approved by the City Council, and may be achieved by polling of the City Council, general discussion and concensus at a workshop, or action at a regular meeting.

F. Petty Cash Purchases: In order to eliminate the cost of producing checks for low cost items, routine purchases of less than $25 should be made from the petty cash fund by completing the Request for Petty Cash, attached hereto as Exhibit 4. When it is necessary for an employee to make a purchase of less than $25 from his/her own pocket, such purchase may be reimburseable upon completion of the required form. Paid receipts are required. Department and Petty Cash Officer approval is required. Purchases shall be made tax-exempt when possible.

ADOPTED by the City Council May 14, 1996.

EXHIBIT 1

THE CITY OF COLLINSVILLE
Purchasing Order- Requisition Form

AUTHORIZATION:

Department Head:_________________________    Date:___/___/___

Chief Purchasing Agent:_____________________    Date:___/___/___

City Manager (if required):___________________    Date:___/___/___

Copies
white-Dept./Vendor;    yellow-Finance/Encumbrance     pink-Finance/payment

EXHIBIT 2

PURCHASING WORKSHEET

If this purchase is considered a sole source purchase, emergency purchase, repair estimate, or purchases made under State bid, GSA bid, etc., and three quotes cannot be obtained, please describe the circumstances in detail: _____________________________________
_________________________________________________________________
_________________________________________________________________

Note: Three quotes must be provided for every purchase with the exception of those above mentioned.  If you cannot obtain three quotes, you must explain the circumstances of the purchase on this form and attach it to your file copy of the Purchase Order- Requisition Form.  Purchasing files will be audited annually; it is the department heads' responsibility to ensure that this information is available to the auditors.

May 1992

CITY OF COLLINS VILLE
Re quest for Petty Cash

PETTY CASH OFFICER SIGNATURE: __________________