HomeMy WebLinkAbout7.F.4. Updating 2014 City Purchasing Procedures Consent Business 7. F. 4.
SHAKOPEE
TO: Mayor and City Council
Mark McNeill, City Administrator
FROM: Julie Linnihan, Finance Director/City Clerk
DATE: 01/07/2014
SUBJECT: Updating 2014 City Purchasing Procedures (E)
Action Sought
The Council is asked to review and approve the adjustments to the 2014 Purchasing Procedures,
following the work flow as provided.
Background
The purchasing process that is currently followed by City departments has been in place since
2004, and has not been updated to allow for departmental staffing structure changes, updates as
required by the Office of the State Auditor(OSA) , as well as updating levels of purchases for bid
and quote requirements.
Finance staff is reviewing this process as a part of the 2013 audit program review, to ensure that
adequate and consistent departmental actions are followed for all purchases specific to the City.
The following are the specific areas of change that have been addressed by this Purchasing
Process:
•Departments need to determine the sales tax if applicable, based on recent sales tax
legislation changes
•Purchases that exceed $5,000 should be made after obtaining two quotes for the purchases
•The approved or selected quote should be attached to information that is to be routed to
Council
•Bids are required for projects and purchases greater than $100,000
Recommendation
Staff recommends the review and approval of the attached purchasing process, for 2014.
Budget Impact
No budget impact.
Relationship to Vision
Deliver effective and efficient public services by a staff of well trained caring and professional
employees. (E) This action will continue to allow City staff to meet purchasing procedure
requirements in an effective and efficient manner.
Requested Action
If the City Council concurs, consider and approve the attached Purchasing Process, effective 2014.
Attachments: Purchasing Process ����� �� _.
City of Shakopee
Purchasing Process
ALL BILLS MUST BE SUBMITTED TO THE FINANCE DEPARTMENT FOR
30 DAYS OF RECEIPT OF BILL. THIS IS IN ACCORDANCE wiTH THE OFFICE OF THE STATI
AUDITOR
Purchase is under $5,000
Invoice must include the following:
• Coding
• Approver signature
• Determine if taxable—(note 2014 sales tax update)
Purchase is over$5,000 but under$25,000
Prepare a purchase order if request for purchase is greater than $5,000 and must be signed by Department head
prior to purchase.
Invoice must include the following:
• Coding
• Department Head Signature
• Determine if taxable
Obtain two 2 or more quotes if purchased amount is greater than $5,000 and attach quotes.
Attach other critical information IC-134, change orders, etc. and submit to finance.
Purchase is over$25,000 but under$100,000
Prepare Council Memo requesting approval with dollar amount of purchase.
• Description of item(s)purchased.
• Purchasing department and define fund to apply purchase.
• Total amount of purchase plus sales tax.Note—trade in value separately and detail of trade in.
• Vehicle or Equipment—Contact Finance Dept. for licensing, insurance and additional to capital asset
schedule.
• Selected quote from vendor will be included with the Council memo.
Once Council approved, ensure invoices are approved by Department Head and include coding. Then route to
finance,the payment invoice with signatures and codes,the Council memo and full quotes or bids.
Purchase is over $100,000—Bids Required
Confirm within budgeted amount and Capital Plans
Follow bidding requirements and route to the Finance Department to confirm specific audit compliance issues
Prepare memo for the City Administrator and City Council to approve,prior torequesting bid process.