Chapter 3.05
PURCHASING PROCEDURES
Sections:
3.05.010 General information and standards.
3.05.020 Authorized purchasing agents by the purchasing authority.
3.05.030 Spending authorization limits.
3.05.050 Distribution of approved purchase orders.
3.05.070 Receipt of merchandise/payment procedures.
3.05.080 Unauthorized purchases.
3.05.100 Blanket purchase orders.
3.05.110 Emergency procedures.
3.05.120 Town council authority.
3.05.010 General information and standards.
A. Each respective town department must be responsible for evaluating and addressing the need to purchase various supplies, services, and equipment for that department, subject to certain administrative approvals. To achieve an effective and efficient system of procurement, Whitestown shall utilize a purchase order (PO) system, and encourages centralized procurement of those items commonly utilized by all departments when doing so will achieve savings. It is the duty of the town and its respective purchasing agents to assure that purchases are made efficiently and economically, and that the town and/or its purchasing agent obtains the best price for [ ] all products and services to be procured without sacrificing quality or other relevant considerations. Notwithstanding any provision to the contrary, under no circumstances shall any purchases be made without the proper appropriations.
B. The town also encourages that all products/supplies purchased shall be made in the United States unless:
1. The products/supplies are not made in the United States;
2. The price of the products/supplies exceeds, by an unreasonable amount, the price of available and comparable supplies manufactured elsewhere;
3. The quality of the supplies in the United States is substantially less than the quality of available and comparable supplies manufactured elsewhere; or
4. The purchase of supplies manufactured in the United States is not in the public interest.
C. All purchasing agents, as public employees and professionals, owe the town their best unbiased judgment as representatives of the town each and every time taxpayer or ratepayer money is expended. All purchasing activity must adhere to the following commonly shared values and ethical standards for dealing with residents, vendors, and clients:
1. Regard public service as a sacred trust, conducting all business with honesty, fairness, and integrity, giving primary consideration and loyalty to the interests of the public agency that employs us.
2. Exercise skill and good judgment to obtain the maximum value for each dollar of expenditure.
3. Avoid unfair practices by granting all competitive vendors equal consideration insofar as state, federal and town regulations require.
4. Encourage support for small, disadvantaged, minority, and women-owned businesses.
5. Demand honesty in sales representation whether offered through the medium of a verbal or written statement, an advertisement, or a sample of the product.
6. Avoid involvement in any transactions or activities that could be considered to be a conflict between personal interest and the interests of the town.
7. Promote positive vendor and contractor relationships by according vendor representatives prompt, courteous, fair and ethical treatment.
8. Receive consent of originator of proprietary ideas and designs before using them for competitive purchasing purposes. Treat with discretion all information obtained in confidence.
9. Honor our obligations and require that obligations to the public agency be honored.
10. Make every reasonable effort to negotiate equitable and mutually agreeable settlements of controversies with a vendor(s). [Ord. 2009-10]
3.05.020 Authorized purchasing agents by the purchasing authority.
The town council retains its rights as the purchasing authority while designating the following positions as authorized purchasing agents for the town. Each purchasing agent’s authority shall be limited to their respective departments and budgets:
A. Town clerk-treasurer;
B. Town judge;
C. Chief of police;
D. Fire chief;
E. Utility manager;
F. Operations manager;
G. Town manager;
H. Town council;
I. Parks department director.
The town council may also designate in writing additional purchasing agents as necessary. [Ord. 2014-22 § 4; Ord. 2009-10]
3.05.030 Spending authorization limits.
Purchase orders for any operational or capital expenses listed as a “line item” in the departmental budget up to $2,500.00 total and no more than $2,500.00 aggregate in the calendar year may be approved by the authorized purchasing agent directly without additional authorization.
Purchase orders involving operational or capital expenses listed as a “line item” in the departmental budget between $2,501.00 total/aggregate and no more than $5,000.00 total/aggregate in the calendar year must be approved by the authorized purchasing agent and the town council representative overseeing the department, unless specifically authorized in the approved budget.
Purchase orders over $5,001.00 total/aggregate must be presented to the applicable governing town board(s) (e.g., police commission, fire commission, utility service board) for approval, gain board approval and assurance that the departmental budget has the necessary funds to pay for the product or service, and then be presented to and receive the approval of the town council.
At no time may any authorized purchasing agent authorize a PO for an item over $5,001.00 for which there is no budget without going through the approvals process. At least three quotes should be requested for purchases under $5,000.00 and must be requested for all purchases over $5,001.00. [Ord. 2009-10]
3.05.040 Purchase order use.
All purchases over $100.00 are to be made only with a valid purchase order. All purchase requests must be on the approved PO form (a current copy of which is attached to the ordinance codified in this chapter as Exhibit A, and may be revised from time to time without the formal approval of the town council), identifying with adequate detail the item, quantity, purchase price, payment details, source of funds, vendor information, and other relevant information. Written estimates and/or quotes for goods and/or services must be attached to the original PO and each copy for reference and documentation of costs.
To be considered valid, the PO must be completed by the purchaser and approved by the purchasing agent, designating which account the PO is to be paid out of, and any additional required signatures prior to the order being placed. [Ord. 2009-10]
3.05.050 Distribution of approved purchase orders.
Once the purchasing agent has approved the purchase order (with all applicable consents and other approvals as set forth herein), the employee making the purchase will need to distribute the approved and signed PO accordingly:
A. Fax, mail and/or hand deliver the top copy (white) of the approved PO to the vendor;
B. Provide the public record copy (yellow) to the clerk-treasurer/financial manager with estimate/quote attached; and
C. Provide the office copy (pink) to the purchasing agent, with estimate/quote attached. [Ord. 2009-10]
3.05.060 Process exceptions.
A. Notwithstanding IC 5-11-10, the town clerk-treasurer may make claim payments in advance of the board allowance for the following types of expenses:
1. Property or services leased from:
a. The United States government; or
b. An agency or political subdivision of the United States government.
2. License fees or permit fees.
3. Insurance premiums.
4. Utility payments or utility connection charges.
5. Federal grant payments if:
a. Advance funding is not prohibited; and
b. The contracting party provides sufficient security for the amount advanced.
6. Grants of state funds authorized by statute.
7. Maintenance agreements or service agreements.
8. Lease agreements or rental agreements.
9. Principal and interest payments on bonds.
10. Payroll.
11. State, federal or county taxes.
12. Expenses that must be paid because of emergency circumstances provided the clerk-treasurer has fully complied with subsection B of this section.
13. Expenses described in an ordinance.
14. Professional services that have an approved and fully executed agreement or contract in place.
15. Whitestown municipal utilities payments made to the town of Whitestown.
16. Whitestown parks and recreation department purchases.
B. Prior to making claim payments and disbursing funds in advance of the board allowance for emergency circumstances, the clerk-treasurer shall obtain written authorization of the president of the Whitestown town council and one other town council member who is able to verify the emergency nature of the expenditure in advance of a board allowance.
C. Each payment of expenses under subsection A of this section shall be supported by a fully itemized invoice or bill and certification by the clerk-treasurer.
D. The town board shall review and allow the claim at the board’s next regular or special meeting following the preapproved payment of the expense. [Ord. 2009-10; Ord. 2007-14 §§ 1 – 4]
3.05.070 Receipt of merchandise/payment procedures.
All invoices (once received) shall go to the appropriate purchasing agent for approval prior to payment. Each department will be responsible for approving their respective expenses and signing off on the invoices. This process will enable our department heads to have a better understanding of and control over their expenses. In an effort to maintain all invoices under the recordkeeping of the clerk-treasurer/financial manager, it will be the responsibility of the clerk-treasurer/financial manager to coordinate receipt and payment of invoices and notify employees and department heads that invoices are ready for approval. All invoices ready for approval must be reviewed and approved for payment within one week.
Whenever a product is received, the responsible department head and/or shall perform a timely inspection for damage and report any damage immediately to the clerk-treasurer/financial manager. All packing and delivery receipts should be signed by the person accepting the order and turned in to the clerk-treasurer/financial manager. Normally, the packing/delivery receipts and the invoice from the vendor must be received by the clerk-treasurer/financial manager two weeks prior to a council meeting so that the payment may be included in the materials submitted by the clerk-treasurer/financial manager for council approval. [Ord. 2009-10]
3.05.080 Unauthorized purchases.
Staff members may not make commitments to vendors for the purchase of supplies, services, or equipment without using the requisite purchasing procedures. Unauthorized commitments are not binding on the town. Invoices submitted for such purchases may not be honored, and will become the obligation of the individual who made the unauthorized purchase. Purchases for personal use are not allowed on town POs. [Ord. 2009-10]
3.05.090 Tax exemption.
Expenditures from Whitestown are generally exempted from Indiana sales tax. Exemption certificates are available in the clerk-treasurer/financial manager’s office. Requests from vendors for tax exemption information should be sent to the clerk-treasurer/financial manager. [Ord. 2009-10]
3.05.100 Blanket purchase orders.
In certain instances where the purchasing agent may need to repeatedly purchase similar materials from the same vendor, a “blanket purchase order” may be issued. Blanket purchase orders may be issued for estimated yearly expenditures. Any funds not used in the year the blanket purchase order is written for will not be carried forward to a new year. Both the blanket purchase order and any remaining funds will be canceled on December 31st and a new blanket purchase order with requisite approvals will be required for the following year.
A blanket PO would be used in the following line item budget examples:
A. Chemical supplies and purchases, as well as laboratory testing required for the day-to-day operations of water and sewer plants.
B. Departmental uniform purchases and/or rentals. [Ord. 2009-10]
3.05.110 Emergency procedures.
[In] the case of emergencies that threaten health or safety, the appropriate purchasing agent shall have the authority to cause the repair or replacement to be made as needed to protect the public’s health and safety, and shall provide post-event documentation for necessary approvals.
In the case of an emergency, then the following procedures become effective:
A. The purchasing agent shall obtain verbal approval from the town council member assigned to the applicable department for the purchase of products and/or services of more than $2,501.00, request follow-up email approval from two town council members, and attach written emergency approvals to the PO.
B. The purchasing agent shall follow up after the emergency situation has been addressed and handled with a PO, following the normal procedures. [Ord. 2009-10]
3.05.120 Town council authority.
Notwithstanding any provision to the contrary, nothing herein shall limit or restrict the authority of the town council to exercise its discretion to amend or waive any term or requirement herein. [Ord. 2009-10]