HomeMy WebLinkAboutOrd 658-2014 Adopting Purchasing Policy.pdfCITY OF ANNA, TEXAS
ORDINANCE NO. 658-2014
AN ORDINANCE OF THE CITY OF ANNA, TEXAS, ADOPTING A PURCHASING
POLICY
WHEREAS, the City of Anna, Texas ("the City") is committed to principles and practices of
open and fair government that honor the public trust; and,
WHEREAS, the City of Anna, Texas City Council ("City Council") has determined that it is
in the interests of the citizens of Anna to adopt a Purchasing Policy that establishes policies
and procedures to govern the management and care of public funds when purchases the
goods and services required for the operation of the City;
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
ANNA, TEXAS, THAT:
Section 1. Recitals Incorporated.
The above -referenced recitals are incorporated herein as if set forth in full for all purposes.
Section 2. Purchasing Policy Adopted.
The City Council hereby approves a Purchasing Policy attached hereto as EXHIBIT 1 and
incorporated herein for all purposes.
Section 3. Savings, Severability and Repealing Clauses.
All ordinances of the City in conflict with the provisions of this ordinance are repealed to the
extent of that conflict. If any section, subsection, sentence, clause, or phrase of this ordinance, or
its application to a particular set of persons or circumstances, is declared invalid or adjudged
unconstitutional by a court of competent jurisdiction, it does not affect the remaining portions of
this ordinance, as the various portions and provisions of this ordinance are severable. The City
Council, declares that it would have passed each and every part of this ordinance notwithstanding
the omission of any part that is declared invalid or unconstitutional.
Section 4. Effective Date.
This ordinance shall become effective after its passage and upon the posting and/or publication,
if required by law.
PASSED by the City Council of the City of Anna, Texas, on this the 13th day of May, 2014.
ORD. 658-2014 Purchasing Policy Page 1 of 2 05-13-14
ATTEST:
)�&- "Z—� —
Nat Wilkison, City Secretary
APPROVED:
Michael Crist, Mayor
ORD. 658-2014 Purchasing Policy Page 2 of 2 05-13-14
PURCHASING POLICY
Section 1. Purpose
The purpose of the Purchasing Policy and Procedures is to provide a means for the acquisition
of supplies and services that are required for the operation of the City of Anna.
Section 2. Authorization and Procedures
The City Manager is authorized to make purchases and enter into contracts on behalf of the
City if the amount does not exceed $50,000. The City Manager is also authorized to make
Emergency Purchases consistent with this Purchasing Policy. Notwithstanding anything to the
contrary in this Purchasing Policy or in any other City ordinance, rule, regulation or policy;
except for Emergency Purchases authorized under this Policy, all purchases, transactions and
contracts for expenditures regardless of amount must be expressly approved in advance by the
City Council during a duly noticed public meeting if—with respect to such purchase, transaction
or contract for expenditure—any City Official (as defined in the Anna Code of Ethics) is: (1)
required to file a Conflicts Disclosure Statement under Chapter 176 of the Texas Local Gov't
Code or the Anna Code of Ethics, as amended; or (2) is a Vendor as that term is described under
Section 176.002 of the Texas Local Gov't Code, which includes acting as an agent of a Vendor.
Otherwise, the following purchasing procedure is outlined in accordance with the noted dollar
thresholds of expenditures.
a) Expenditures for Goods or Services $.01 - $999: Department Directors are allowed to
make and authorize purchases for goods or services up to $999 without seeking quotes
or bids. Expenditures in this category do not require a purchase order.
b) Expenditures for Goods or Services $1,000 - $2,999: Expenditures for good or services
equal to or greater than $1,000 but not exceeding $2,999 may be approved at the
department level by the Department Director. Department Directors should request
and review at least three different quotes or bids unless the purchase is listed under the
General Exemptions in Texas Local Government Code Chapter 252.022. This is an
informal bid process and quotes or bids may be obtained via mail, e-mail, delivery
service, telephone, facsimile, catalogues, internet websites, in-store price comparison,
verbal quotes, or any other reasonable method of comparing vendor pricing.
1. Upon receipt and evaluation of the quotes or bids, the Department Director shall
submit to the Finance Department a purchase order and purchasing memo
summarizing the bids received and the recommended or selected vendor.
2. In lieu of requesting three different quotes or bids, and when authorized by the City
Manager, Department Directors may purchase goods or services in this category
through a local government purchasing cooperative or interlocal purchasing
agreement of which the City of Anna is a member or is eligible to participate, and
where the products and services to be purchased have been submitted for
competitive procurement as outlined by state statute.
c) Expenditures for Goods or Services $3,000 - $49,999: Expenditures for good or services
equal to or greater than $3,000 but not exceeding $49,999 are also bid on an informal
basis with at least three written bids or quotes required unless the purchase is listed
under the General Exemptions in Texas Local Government Code Chapter 252.022. The
City will contact Historically Underutilized Business as stipulated in Texas Local
Government Code Chapter 252.0215 unless the purchase is listed under the General
Exemptions in Texas Local Government Code Chapter 252.022.
1. All purchases in this category must be approved in advance by the City Manager and
the Finance Department. Upon receipt and evaluation of the quotes or bids, the
Department Direct shall submit to the City Manager a purchase order and
purchasing memorandum summarizing the responses and recommending a vendor.
The memorandum shall include supporting documentation for all quotes or bids and
evidence the department contacted Historically Underutilized Businesses as outlined
above. After authorization has been received from the City Manager, the purchase
order can be submitted to the Finance Department for final approval and
processing.
2. In lieu of providing three different written quotes, goods or services in this category
may be purchased through a local government purchasing cooperative or interlocal
purchasing agreement of which the City of Anna is a member or is eligible to
participate, and where the products and services to be purchased have been
submitted for competitive procurement as outlined by state statute.
d) Expenditures for Goods or Services $50,000 and over: Except for Emergency Purchases
authorized under this Policy, all purchases above $50,000 must be purchased under
formal competitive sealed bidding rules or as otherwise permitted by the Local
Government Code under Chapters 252 and 271. No bid process shall begin until
approved by the City Council and City Manager. The City Council hereby selects as its
designated representative the City Manager of the City of Anna, Texas to discharge on
its behalf any duty it may have now or in the future with respect to any purchase or
contract to determine the method(s) of purchase that will provide the best value to the
City.
e) Professional Services: Notwithstanding anything to the contrary in this Purchasing
Policy or in any other City ordinance, rule, regulation or policy, purchases of professional
services regulated by the Professional Services Procurement Act (PSPA) shall be in
accordance with the requirements outlined in the PSPA as amended.
f) Emergency Purchases: Notwithstanding anything to the contrary in this Purchasing
Policy or in any other City ordinance, rule, regulation or policy, the City Manager is
authorized to make or approve any emergency purchase necessary to respond to a
public calamity, to preserve or protect the public health or safety of the municipality's
residents, or because of unforeseen damage to public machinery, equipment, or other
property; in accordance with the General Exemptions authorized in Section 252.022 of
the Texas Local Government Code without seeking bids or contacting Historically
Underutilized Businesses. The City Manager is authorized to declare or determine an
emergency that necessitates an emergency purchase, and shall advise the City Council
of any such emergency purchase in excess of $50,000. When an emergency occurs
during regular business hours and the expense exceeds the normal department
approval amount, the department director shall contact the City Manager or his
designee, to receive authorization for the emergency purchase.
g) Responsibilities:
1. The City Manager administers this Purchasing Policy, approves purchases between
$3,000 and $49,999, and oversees the competitive bidding process for all purchases
in excess of $50,000 requiring approval of the City Council.
2. Department Directors prepare and review solicitations for the purchase of goods
and services as outlined in this Purchasing Policy. Directors sign off on and approve
all department purchases and ensure that all purchasing requirements are met.
Department Directors ensure that reasonable and prudent steps are taken to assure
that the best value is obtained for the goods or services to be procured.
3. The Finance Department reviews budgets to determine availability of funds for
purchases.
4. Accounts Payable receives, reviews, and processes all purchase orders and payment
requests.
5. Each city employee authorized to purchase supplies, equipment, or services shall be
familiar with and follow this Purchasing Policy and related purchasing procedures.
Section 3. Petty Cash
Petty Cash is deemed appropriate when it allows for more efficient procurement of minor
goods and services. Petty Cash may only be used for minor purchases of goods or services up
to $50.00. An employee requesting the Petty Cash must have approval from their Department
Director. Documentation for the use of Petty Cash is required at time of reimbursement, and
must include an invoice or receipt for the purchase. The employee requesting reimbursement
will be required to sign for receipt of the cash.
Section 4. Purchase Orders
Purchase orders are required for all purchases in excess of $999, unless otherwise indicated
below. Purchase orders may be submitted for purchases less than $999 but are not required.
Purchase orders shall be submitted to Accounts Payable for processing after obtaining the
appropriate approval signatures and with all supporting documentation attached. Purchase
orders submitted without appropriate approval or required documentation will be returned to
the originating department.
Subject the limits on the City Manager's authority to make purchases and enter into contracts
on behalf of the City as outlined in the Section 2 of this Policy, purchase of the following items
do not require the solicitation of bids or a purchase order and can be paid by completing a
check request or payment authorization:
• Insurance Premium Payments
• Retirement System Payments (TMRS)
• Debt Service Payments
• Utility Service Payments
• Operating Leases/Maintenance Agreements
• Contracted Services (if contract was entered in accordance with this policy)
• Travel and Lodging
• Registration fees
• Membership/Professional Association dues and fees
• Postage
• Subscription Services
• Other similar routine purchases authorized by the City Manager