§ 2-301. Purchasing process.

No employee shall purchase any materials, products or services on behalf of the city unless the purchasing process has been completed as outlined in the following subsections. All employees may sign for purchases provided there is an approved purchase order, blanket purchase order, check request or credit card use form on file with the city.

(1)

Purchasing authority.

a.

$.01 to $500.00. Purchases of materials, products or services in this category will be authorized by department heads, the city manager or his/her designee.

b.

$500.01 to $4,999.99. Purchases of materials, products or services in this category will be authorized by the city manager or his/her designee. At least two (2) and preferably three (3) verbal price quotes will be used for purchases in this category, unless the purchase is made from a sole source vendor or recognized governmental unit as outlined in subsection 2-302(d) and (e). These price quotes must be attached to the purchase order requisition, check request or credit card use form including any appropriate comments if the lowest price is not utilized.

c.

$5,000.00 to $19,999.99. Purchases of materials, products or services in this category will be authorized only by the city manager. At least two (2) and preferably three (3) written price quotes will be required for purchases in this category, unless the purchase is made from a sole source vendor or recognized governmental unit as outlined in subsection 2-302(d) and (e). The written quotes must be attached to the purchase order requisition, check request, or credit card use form including any appropriate comments if the lowest price is not utilized.

d.

$20,000.00 and above. Sealed bids will be utilized for any items over twenty thousand dollars. The splitting of invoices for the purpose of avoiding the bidding requirements is expressly prohibited. Purchases of materials, products or services in this category will be authorized only by the city commission.

(2)

Method of purchasing. It shall be the responsibility of the those individuals granted the purchasing authority as stated in the prior section to ensure sufficient funds are available in the account prior to the approval of a purchase order requisition, check request, or credit card use form. The finance department will not process a purchase order, blanket purchase order, issue the credit card or a check if sufficient funds are not available. Purchases may be made using one (1) of the three (3) methods:

a.

Purchase orders system. The purchase order system allows for the single purchase from a vendor of a specific item; a list of items as identified on the requisition or the continued purchase from a vendor for a specific dollar amount for one (1) fiscal year. Purchase order requisitions forms will be utilized to make the request for a purchase order or a blanket purchase order.

1.

Purchase orders. Employee identifies the materials, products or services that are needed, completes the purchase order requisition, obtains the appropriate approval and submits the form to the finance department for issuance of a purchase order. Once the purchase order is received the materials, products or services may be ordered or purchased.

2.

Blanket purchase orders. Blanket purchase orders will be used for multiple purchases from the same vendor within one (1) fiscal year. Some examples are: newspaper advertisements; parts; supplies; vehicle repairs and maintenance. Blanket purchase orders may be used for regular purchases, but may not exceed twenty thousand dollars ($20,000.00), unless approved by the city commission.

b.

Credit card use forms. Since many vendors do not accept purchase orders, credit cards afford employees the ability to purchase necessary items in a timely fashion. Only the city manager may authorize an application for a new credit card. Credit cards may be used for a single purchase from a vendor of a specific item; a list of items as identified on the credit card use form or the continued purchase from a vendor for a specific dollar amount for one (1) fiscal year. Credit card use forms will be utilized to make the request to use any credit card. Credit cards for stores such as Lowes, Home Depot and Staples will only be used when an approved credit card use form is on file with the city.

c.

Check request form. There are times when a vendor may not accept a city credit card. In these cases a check request form will be completed, the appropriate authorization obtained and forwarded to the finance department. When the check is ready, it will be forwarded to the vendor or returned to the employee as outlined on the check request form.

(3)

Processing of invoices or receipts for payment.

a.

Invoices or receipts for purchases made using a purchase order, single or blanket, will be signed by the department head, the purchase order number will be written on the invoice or receipt and it will be forwarded to the finance department for payment. The finance department will refuse payment for any purchase which a signed invoice or receipt is not received.

b.

Invoices or receipts for purchases made using a credit card will be attached to the approved credit card use form and forwarded to the finance department. The finance department will match the credit card use forms, with the attached invoices or receipts, to the credit card statement prior to payment of the monthly bill. Any discrepancies must be brought to the attention of the city manager, who will promptly investigate the discrepancy.

c.

Payment of monthly reoccurring services, such as, but not limited to, utility bills, cellular phone bills, telephone bills, gasoline or diesel purchases, uniform rental bills and approved leases will be made by the finance department and the expense allocated to the appropriate department fund, without the need for signature of the department head, city manager or his designee, provided sufficient funds are available. Should additional funds be needed a budget transfer or amendment will be processed prior to payment.

The above rules of operation may be waived in case of emergency by authority of the mayor, chairman of the commission, or city manager. An emergency, for this section, will be defined as any condition where there is a threat to the public health, safety, welfare, or property of the citizens of the Flagler Beach. The department head must notify one of the above persons of the existence of an emergency situation as soon as he/she is aware a problem exists. This clause in no way alters the provisions under chapter 14, article III, Emergency Management of the City Code of Ordinances. This clause is designed to compliment article III.

The person authorizing the waiving of these purchasing policies must notify the city commission of this decision within twenty-four (24) hours or within twenty-four (24) hours of the conclusion of the emergency situation.

(Ord. No. 92-9, §§ 1, 2, 5-14-92; Ord. No. 93-5, §§ 1—3, 6-24-93; Ord. No. 96-28, § 1, 12-19-96; Ord. No. 2008-04, § 3, 4-24-08)