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ORD 699 12/06/2005 ORDINANCE NO. A;Q(6 AN ORDINANCE ADOPTING THE PURCHASING POLICY AND PROCEDURES OF THE CITY OF CIBOLO, GUADALUPE COUNTY, TEXAS; PROVIDING FOR INCORPORATION; PROVIDING FOR ADOPTION; PROVIDING THAT THIS ORDINANCE IS CUMULATIVE OF ALL OTHER ORDINANCES OF THE CITY OF CIBOLO NOT IN CONFLICT WITH THE PROVISIONS OF THIS ORDINANCE; PROVIDING FOR SEVERABILITY; PROVIDING SAVINGS; AND PROVIDINGFOR EFFECTIVE DATE. WHEREAS,the City of Cibolo, Guadalupe County, Texas, is a home rule city pursuant to a Home Rule Charter duly elected by the citizens on September 11, 2004; and WHEREAS, the Home Rule Charter of the City of Cibolo, Guadalupe County, Texas, contains Article VII Financial Procedures provides for the establishment of purchasing procedures by City ordinance; and WHEREAS, the City Council has considered this Ordinance and has determined that establishing these purchasing policy and procedures in the public health, safety and welfare; BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CIBOLO, TEXAS... SECTION 1. INCORPORATION That the above and foregoing premises are true and correct and are incorporated herein and made part hereof for all purposes. SECTION 2. ADOPTION That the ordinance provisions incorporated in SECTION 3 herein are hereby adopted by the City Council of the City of Cibolo, Guadalupe County, Texas. SECTION 3. PURCHASING POLICY AND PROCEDURES ADOPTED That the Purchasing Policy and Procedures of the City of Cibolo, Guadalupe County, Texas, attached hereto is hereby adopted. SECTION 4. CUMULATIVE CLAUSE That this ordinance shall be cumulative of all provisions of the City of Cibolo, Guadalupe County, Texas, except where provisions of this ordinance are in direct conflict with the provisions of such ordinances,in which event the more restrictive provision shall apply. 1 SECTION 5. SEVERABILITY That it is hereby declared to be the intention of the City Council of the City of Cibolo, Guadalupe County, Texas, that the phrases, clauses, sentences, paragraphs, and sections of this ordinance are severable, and if any phrase, clause, sentence, paragraphs, and sections of this ordinance should be declared unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs or sections of this ordinance, since the same would have been enacted by the City Council without incorporation in this ordinance of any such unconstitutional phrase, clause, sentence,paragraph or section. SECTION 6. SAVINGS That all rights and privileges of the City of Cibolo, Guadalupe County, Texas, are expressly saved as to any and all violations of the provision of any ordinances affecting the purchasing of goods or services, which have accrued at the time of the effective date of this ordinance; and, as to such accrued violations and all pending litigation, both civil and criminal, whether pending in court or not, under such ordinances, same shall not be affected by this ordinance but may be prosecuted until final disposition by the courts. SECTION 7. EFFECTIVE DATE That this ordinance shall be effective immediately upon passage and approval of the City Council of the City of Cibolo, Guadalupe County, Texas. AND IT IS SO ORDAINED. PASSED AND APPROVED by a vote of L-/ for to 0 against this 6th day of December, 2005. APPROVED: Vyor Johnn,t='tton ATTEST: Peggy Cimics, City Secretary 2 CITY OF CIBOLO PURCHASING POLICY AND PROCEDURES December 6,2005 Purpose: The purpose of these Purchasing Policy and Procedures is to provide a means for the acquisition of supplies and services that are required for the operations of the City of Cibolo. Responsibility: Each city employee authorized to purchase supplies, equipment or services must be familiar with the purchasing procedures and should adhere to them in order to obtain the best results. This policy will not answer all questions, but will be used as a guide and aid in securing materials and services needed to operate each department. Duties of the Finance Department: 1.0 To observe and enforce the procedures as outlined and any related regulations. 2.0 To encourage that the purchasing policies and procedures are followed whenever possible. 3.0 To review each account being charged for sufficient funds before authorizing a purchase or issuing a purchase order. 4.0 To process approved request to purchase and issue purchase orders. 5.0 To explore the possibilities of quantity buying in order to take full advantage of discounts. 6.0 To assist in disposal of surplus, obsolete, worn-out scrap material at city sales or other methods. 7.0 To maintain a listing of vendors, classified according to materials, equipment, supplies, and services. To advise vendors the proper procedure in which they may be placed on the vendors list. 8.0 To coordinate the preparation of all formal bid specifications to ensure minimum requirements and non-exclusion before submission to the City Council or mailing. 9.0 To assist with opening of bids at a designated time and prepare a tabulation of the results. 10.0 To review the bids received and, with the Department Head , determine the lowest most responsible bidder or the bidder whose bid gives the "best value" tothe city and provide a written recommendation to the City Manager. Duties of Department Heads: 1.0 Departments should plan their work so that"rush orders" and emergencies will be held to an absolute minimum. The Finance Director shall be notified of formal bid requests with sufficient time to obtain quotes through the proper bid procedures. I 2.0 Department Heads must sign and verify all invoices. 3.0 No city employee shall purchase supplies, material or equipment of any kind through the City for personal use. 4.0 Minimum specifications on all formal bids must be submitted to the Director of Finance for review and finalization. 5.0 Any expense over budgeted amount must obtain prior written authorization from City Manager in accordance with all applicable rules, regulations and policies of the city. Purchase Orders: 1.0 A purchase order number is required on all purchases over $100, with the exception of those listed below. The Department Head or an authorized employee must present a requisition to the Finance Department and request a purchase order before proceeding to the vendor's place of business or placing an order. 2.0 If an emergency should arise after normal hours, the Department Head or designee will make the purchase that is needed, The Department Head must notify the Director of Finance immediately upon opening the next business day and turn in the proper documentation. 3.0 The following payments and services do not require the issuance of a purchase order for payment authorization. • Tax Payments • Insurance Premium Payments • Retirement System Payments • Debt Service Payments • Investment Payments • Utility Services and Cell Phone/Pager Payments • Petty Cash fund purchases • Operating Leases/Maintenance Agreements • Annual Contracts • Invoices for Professional Services (i.e. Attorney Fees and Engineering) • Payments made for Employee Payroll Deductions • Inter-local Agreements • Reimbursements/Payments to other Agencies • Contract Services for approved contracts • When a Check Request Form is used • Travel and Lodging • Items/Services acquired through the competitive bid process • Customer Deposit Refunds • Purchases under$100.00 Purchase Dollar Limits and Authorization Required: The following dollar limits and authorization requirements are to be followed whenever possible. Any exceptions shall be noted and approved by the appropriate authorization on the invoice. 2 Purchases shall be made according to the following requirement and pursuant to this purchasing policy and any other applicable rules,regulation and policy. (See the following): Purchases of$.01 to $50.00 Petty Cash Requires Department Head approval No Purchase Order Required Purchases of$50.01 to $99.99 Requires Department Head approval No Purchase Order Required Purchases of$100.00 to $1,500.00 Requires 3 telephone quotes or catalog quotes Requires Department Head approval Requires Director of Finance approval Purchase Order Required Purchases of$1,500.01 to $5,000.00 Requires 3 written quotes Requires Department Head approval Requires Director of Finance approval Requires City Manager approval Purchase Order Required Purchases of$5,000.01 to $15,000.00 Requires 3 written quotes (must be supplied by the vendor-not from catalog or internet) Requires Department Head approval Requires Director of Finance approval Requires City Manager approval Purchase Order Required Purchases of$15,000.01 to$24,999.99 Requires 3 written quotes (must be supplied by the vendor-not from catalog or internet) Requires Department Head approval Requires Director of Finance approval Requires City Manager approval Requires City Council approval Purchase Order Required Purchases$25,000 or more Requires competitive bids/proposals as required by state law or purchase from Buy Board. Requires Department Head approval Requires Director of Finance approval Requires City Manager approval Requires City Council approval Purchase Order required if requested by vendor Cibolo in making an expenditure of more than $3,000 but less than $25,000, shall contact at least two historically underutilized business on a rotating basis, based on information provided by the General Services Commission pursuant to Chapter 2161, Government Code. 3 The Requisition Process: 1.0 A requisition is required prior to the issuance of a purchase order and the purchase of a good or service. A requisition must be submitted on a form provided by the Finance Director. Each requisition must be signed by the Department Head in order to be approved for a purchase order. 2.0 A requisition must be prepared and submitted by the Department Head to the Finance Director with enough time to allow for sufficient processing by the Finance Director prior to the date in which the related goods or services are needed by the requesting department. Processing the requisition includes, but is not limited to the following: • Obtaining bids or price quotes • Processing bids,placing purchase orders or concluding contracts. • Allowing delivery of goods or services. 3.0 Attach quotes to the requisition and forward to Finance. Use of Cooperative Purchasing Agreements: Whenever possible the City of Cibolo will utilize cooperative purchasing agreements. Cooperative purchasing agreements are normally agreements that will include a list of items that have already been through the bids process and the lowest or best qualified bidders have been approved. Listed below are examples of authorized purchasing agreements. However, the City is not limited to only those listed. Texas Association of School Boards (TASB)—"Buy Board" Single Source Purchases: From time to time certain items and/or services may qualify as a "single" source item, meaning that , the item being requested is available from only one source. In these cases, any requirements for quotes will not apply. 4