Resolution 13-093 Amending Procurement Manual to Increase Purchase Order Limits

CITY OF HOMER
HOMER, ALASKA
City Manager/
Finance Director
RESOLUTION 13-093

A RESOLUTION OF THE HOMER CITY COUNCIL AMENDING THE PROCUREMENT POLICY AND PROCEDURES MANUAL TO INCREASE LIMITS FOR PURCHASE ORDERS.

WHEREAS, Section 4.3 Review and Approval and Section 4.4 Processing the Purchase Order under the title PURCHASE ORDER PROCESSING FOR SUPPLY, MATERIAL, EQUIPMENT & SERVICE PROCUREMENT in the Procurement Policy and Procedures Manual has become antiquated due to inflation; and

WHEREAS, Increasing the requirement of a purchase order from the current $500 to $4,000 for expenditures of supplies, materials, equipment, and services will bring the City’s procurements in line with today’s prices; and

WHEREAS, The following amendments to Section 4.3 Review and Approval and Section 4.4 Processing the Purchase Order are required:

4.3 Review and Approval

Responsibility  Instructions

Department Director 1) Review purchase order.  Check to see if funds are available.  Approve by signing.

Finance Department 2) In accordance with Section 6, Procurement Approval Matrix, verify availability of funds and encumber all procurements over $500 $4,000.

City Manager 3) When required, review purchase and approve by signing.  If required, submit request to City Council for procurement authorization.

4.4 Processing the Purchase Order

a. For routine orders by mail, phone, walk-in, or online

Responsibility  Instructions

Department 1) Retain the pink Receiving copy
Originating the  and gold Department copy. two copies in
Purchase Order  department file.
2) Forward Finance a (blue) copy to Finance and attach price quote/documentation for procurement over $500 $4,000 in accordance with HMC HCC 3.16.030.

Finance Department 3) In accordance with Section 6, Procurement Approval Matrix, verify availability of funds.

4) Encumber purchase amount.

Department 5) Mail white Send copy to vendor for placement or order.

b. Ordering by telephone

Responsibility  Instructions

Department  1) Follow step 1 above (for
Originating the  routine mail ordering)
Purchase Order
2) Follow step 2 above

Finance Dept  3) Follow step 3 above

Department  4) Place order with vendor and stamp vendor copy (white) with confirmation stamp indicating date of telephone order and vendor contact

5) Mail confirmation of order to vendor

NOW, THEREFORE, BE IT RESOLVED that the Homer City Council hereby amends the Procurement Policy and Procedures Manual to increase limits for purchase orders.

PASSED AND ADOPTED by the Homer City Council this 23rd day of September, 2013.

       CITY OF HOMER

 
____________________
       MARY E. WYTHE, MAYOR

ATTEST: 

________________________
MELISSA JACOBSEN, CMC
DEPUTY CITY CLERK

Fiscal Note:  NA