10-19-2020-WS - Laserfiche WebLink

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PAGE 1 INTRODUCTION The City’s policy is to purchase goods and services at the most cost effective and competitive rates, yielding the desired service, turnaround, and value for the dollar. This practice must ensure the best utilization of funds, vendor selection, and adherence to ethical business practices including integrity, honesty, and avoidance of conflict of interest. The purchasing procedures are important because they: 1. Ensure purchases conform to legal requirements; 2. Prevent expenditures from exceeding the budget; 3. Provide proper documentation for purchases; 4. Prevent payment for items not received; 5. Ensure accurate accounting; 6. Provide payment of all bills within 35 days of receipt; and 7. Prevent duplicate payments on the same invoice. All purchasing by local government units is regulated by State law. Because of these laws and because of the unique nature of budget and tax levy procedures for funding City government, all City employees must conform to the purchasing policies and procedures designated. The Finance Department will review and approve all purchases and employee reimbursements and will ensure that all purchases and payments are legal, properly coded, and well documented. If the purchase is over $7,500, Council approval is required before the purchase can be made. However, Council approval is not required on purchases over $7,500 if they are for payroll and payroll related expenses, employee expense reimbursements, insurance premiums, routine operations (utilities, supplies, cleaning services, etc.), increases up to an individual’s authorization limit for a previously Council approved item due to delivery charges or unexpected increases in cost, payments due to other units of government or required to be made before the next regular meeting of the Council to avoid endangering public safety, damaging public or private property, or interrupting City services. The City follows the rules pursuant to Minnesota State Statute 471.345. The current statute should always be referenced or referred to for the most recent revisions to the law. Items under $25,000 (materials, supplies, and equipment for day-to-day use) must be purchased at the best price available subject to appropriate guidelines and procedures. If the contract is made upon quotation it shall be based, so far as practicable, on at least two quotations which shall be kept on file for a period of at least one year after their receipt. Purchases between $25,000 and $175,000 may be made either upon sealed bids or by direct negotiation, by obtaining two or more quotations for the purchase or sale when possible, and without advertising for bids or otherwise complying with the requirements of competitive bidding. All quotations obtained shall be kept on file for a period of at least one year after receipt thereof. All purchases of merchandise, materials, equipment, and repair or maintenance services exceeding $175,000 must be purchased on a formal bid basis and meet all procedural requirements. The Council must approve all bid awards. It is not the policy of the City to accept the lowest bidding vendor. The acceptance of the bid may be based on a number of factors, including: cost, demonstrated working experience in the specific area, past experience with the City, overall quality of work, and in emergency situations.