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Overview of the City of Roseville Purchasing Structure I have often commented publicly that the City has a decentralized purchasing function. This general statement is intended to signify that the majority of all purchasing transactions are handled by individual departments. In reality the City utilizes both centralized and decentralized purchasing approaches. This hybrid approach provides for the necessary purchasing controls and consistency any organization would desire, while placing the decision and accountability of purchasing specialized goods and services in the hands of professionals with specific expertise. Some of the City's centrally - purchased items include: •'* Information systems such as network servers, computers, printers, etc. •'* Office equipment including phones, copiers, and fax machines •'* Enterprise software systems such as Word, Excel, and Laserfiche •:* General legal services •'* Employee healthcare and dental plans •'* Motor fuel The purchases of these items are centrally controlled to ensure efficiency and equity across all City departments. It should be noted that although these purchasing decisions are centralized within the organization, they are not necessarily centralized in the same manner. As an example, purchasing decisions involving information systems are centralized in the Finance Department while motor fuel purchases are made by Public Works. In contrast, many of the goods and services we buy are made at the department level where specialized expertise lies. They include: •.* Fire trucks, squad cars, dump trucks, etc. •'* Vehicle repair parts and supplies •'* Playground equipment and park shelters •'* Police and firefighting /EMS equipment •'* Water and sewer infrastructure components As these two lists suggest; the size, scope, and complexity of the City's operational needs dictate that the City employs staff with specific purchasing expertise for each function the City carries out. Those same staff members need to be fluent in how the purchasing decision affects program and service outcomes. They also need to be cognizant of available joint-purchasing contracts, grant opportunities and other cost - saving programs that are typically only available for specific purposes. Final Comments One might surmise that most cities began with a centralized purchasing function featuring an individual or two that carried out purchasing duties that were relatively limited in scope. However, as cities evolved and the complexities grew, cities increasingly needed to rely on specific knowledge and skillsets. Decision - making as a whole (including purchasing) became further decentralized as a result. Left unchecked, this decentralization could prove to be counter - effective and even invite missteps. This underscores the need for proper policies, procedures, and internal controls — something that is embedded into the training program of every employee that is assigned purchasing authority. 2