HomeMy WebLinkAboutResolution_30-11_12/08/2011 RESQLUTION NO 30-11
A RESOLUTION OF THE VILLAGE COUNCIL OF T�IE VILLAGE OF
TEQUESTA, FLORIDA, .A►DOPTING CI7RRENT PURCHASING
POLICIES AND PROCEDURE5 FOR THE VILLAGE OF TEQUESTA;
PROVIDING AN EFFECTIVE DATE; AND FOR UTHER PURP4SES.
WHEREAS, the Village Council of the Village of Tequesta, Florida, finds it in the best
interest of the citizens to e�tablish policies to ensure the financial stability of the Village; and
WHEREAS, the Village Council of the Village of Tequesta, Florida, regularly reviews
existing policies and revises andlor adds policies to promote fiscal responsibility and the efficient
transaction of Village business; a�d
WHEREAS, the Village Council of the Village of Tequesta, Florida, believes revising
the current purchasing policies and procedures to raise the threshold of purchases requiring a
purchase order from $2,000.00 to $5,000.00 is in the best interest of the Village; and
WHEREAS, the Village Council of the Village of Tequesta, Flarida, desires to adopt a
current "Purchasing Policy and Procedures"; and
WHEREAS, such a policy has been prepared and a copy thereof is attached hereto;
NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF THE
VILLAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, AS FOLLOWS:
Section 1: The Viilage Council of the Village of Tequesta, Florida, hereby adopts the
"Purchasing Policies and Procedures", attached hereto as"Exhibit A", and hereby directs the
Village Manager to implement said policy.
Section 2: All resolutions or parts of resolutions in conflict herewith sha11 be and
hereby are repealed.
Section 3: This Resolution shall take effect immediately upon pass�ge.
The foregoing Resolution was offered by Council Member Brennan who moved its adoption.
The motion was seconded by Council Member Turnquest and upon being put to a vote, the vote
was as follows:
For Adoption Against Adoption
Mayor Tom Paterno X
Vice-Mayor Vince Arena X
Council Member Abby Brennan X
Council Member Jim Humpage X
Council Member Calvin Turnquest X
The Mayor thereupon declared the Resolution duly passed and adopted this 8 day of December,
2011.
MAYOR OF TEQUESTA
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Tom Paternn
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VZLLAGE OF TEQUES�'A
P URCHASING P�L..I A P ROCEDU�S
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STATEMENT OF PURPOSE
To establish policies, procedures and guidelines to insure that all goods, materials, supplies
and/or services (herein after referred to as items) are acquired in the most efficient, effective and
ecanomical manner available.
POLICY
This policy will apply to all purchases of the Village irrespective of the funding source. It shall
be the responsibility of the Village Manager and all employees involved in the purchasing
process to comply with all procedures, guidelines and instructions as set forth in this policy.
This policy is designed to insure that the Village procures all items at the lowest and best price
consistent with the quality of materials, workmanship or level of service performance required.
No purchase of items shall be authorized unless adequate funds have been appropriated.
EXCEPT�ON- Grant agreements may contain provisions or requirements related to purchasing
procedures, the disposition of �ed assets, etc., that differ from the Village's proeedures. In the
event there is a conflict between a grant provision/requirement and a Village procedure, the
grant provision /requirement will take precedence over the Viltage procedure.
DEFINITIONS
AGREEMENT - see contract.
APPROPRIATION - An act of the Village Council that authorizes the e�enditure of specific
dollar amounts for various purposes including the purchase of items.
AUTHORIZATION - An act by a specific authorized officer, approving the expenditure of
Village funds. For the originating department, the authorizing o�cer would be the department
director or designee For all purchases over $5,000.00 authorization must also come from the
Village Manager or designee.
CHANGE ORDER - A modification to an original contract or change in contract scope which
occurs during the provision of contractual services (after bidding and contractual award) which
may result in an increase ar decrease in contract cost and/or contract time.
COMPETITIVE PROCUREMENT — T'he use of an invitation to bid, a request for proposals,
a request for qualifications, or an invitation to negotiate.
CONTIlVI7ING CONTRACT - A contract for professional services entered into in accordance
with the Consultants Competitive Negotiating Act (FS 287.055) whereby the firm or individual
provides professional services to the Village on an on-going basis.
CONTRACT - A written commihnent between the Village and a vendor, which obligates the
Village to pay the vendor a specific dollar amount for the provision of specific goods andlor
services. -
DESIGNEE - An individual appointed by an authorized officer to approve expenditures.
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EMERGENCY PURCHASE - For purchasing purposes, an emergency is a
circumstance in which damage to Village facilities, personnel or serious damage to
Village progra.ms will result if prompt action is not taken. This purchase would be
required by a sudden and unexpected turn of events (acts of God or uncontrollable
circumstances) which involves, or could involve, a threat to the health, safety and
welfare of citizens, and which can be rectified in whole or in part by the immediate
purchase of items.
Emergency Purchase Orders are considered on their individual rnerits. They will be processed as
emergencies only when the Village Manager determines that it is necessary, based on the
requesting department's written explanation.
ENCUMBRANCE - Reservation of Village funds that have been authorized far a purchase that
has not yet been completed.
LAW ENFORCEMENT TRUST FUNDS (Forfeiture Funds) - Those funds governed as to
their use by Chapter 932 Florida Staiutes. These funds may only enter the purchasing process
after a recommendation of funding use is provided by the Chief of Police and approved by the
Village Council.
PREPAYMENT - To pay an agreed upon sum before receiving the item(s).
PURCHASE REQITISITION — Is a request to proceed with a purchase. It is also called a
Purchase Order Request. It is originated and approved by the department requiring the goods or
services. A purchase requisition is owned by the originating department and should not be
changed without obtaining approval from the originating department. A purchase requisition is
not a purchase order and should not be used to purchase goods or services or be used as an
authorization to pay an invoice from a suplier or service provider.
PURCHASE ORDER — Is a docnment issued by a buyer to a seller indicating descriptions,
types, quantities, agreed prices, date of performance or shipment for products or services and
other associated terms and conditiQns the seller will provide to the buyer.
SOLE SOURCE - The acquisition of items that for all practical purposes can only be obtained
from a single vendor, usually because of limiting technology, technological compatibility with
eausting systems or goods or services already in use by the Village other unique qualities of the
goods or services that preclude a eompetitor's price comparison. The Village Manager,
irrespective of the cost of the item, must approve all sole source purchases.
ETHICAL CONDUCT:
Ethical business standards sha11 govern all procurement transactions. Infractions of the Village's
procurement policy will be reported to the Village Manager. Disciplinary action far those
infractions will be taken in accordance with applicable Village policy.
Village personnel shall not solicit any gift or accept any gift from any supplier or prospective
supplier. Village personnel shall comply witb the Palm Beach County Code of Ethics as well as
the State of Florida Cade of Ethics relative to the solicitation, acceptance and/or reporting of
gifts. Questions about the value of a gift or the appropriateness of an invitation should be
referred to the staff person's supervisor or the Village Manager to ensure compliance with
Village policy. The Village values its vendors and assumes that vendors, in turn, value the
Village's business. No token or display of this appreciation is necessary or encouraged.
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The Village's reputation for impartiality and objectivity, as well as sound business practice,
requires that employees not make decisions for the Village if their personal economic interests
are directly affected by the outcome. Moreover, the Palm Beach County Code of Ethics as well
as the State of Florida Code of Ethics prohibits the Village from contracting for goods or
services with any Village official or employee. This prohibition includes the official's or the
employee's outside business interests, as provided in both the county and state code of ethics.
AUTHORITY AND RESPONSIBILITY:
The Village has determined that purchasing and contracting decisions are made most effectively
by the end-user of the materials, supplies, equipment, or services. 'This approach requires that
employees involved at every stage of the purchasing process take responsibility for
understanding the Village's policies and procedures regarding purchasing and vendor relations.
Employees must be authorized to commit the Village's resources to a purchase, and are subject
to disciplinary actiou up to and including the termination of employment if proper authorization
is not obtained.
The Finance department has the right to review and question any purchasing transaction.
Departments
Departrnent personnel are responsible for:
♦ Ascertaining needs and determining the bona-fide business purpose of the transaction.
♦ Conducting price or cost analysis to ensure the Village is receiving the most efficisnt,
effective and economical purchases/services available.
♦ Monitoring department budgets and verifying funding is available prior to committing
to the purchase.
♦ Selecting a vendor in a fair, impartial and consistent manner when competitive
procurement is not required.
♦ Initiating the purchase requisition.
♦ Verifying that all purchases for their deparhnent are in compliance with the Village of
Tequesta's purchasing policies and procedures.
♦ Ensuring the proper receipt of ordered goods or services.
♦ Reviewing invoices or purchases, verifying receipt of ordered purchases agree with the
purchase order and forwarding approved invoices to the finance department in a timely
manner for payment.
♦ Negotiating and resolving disputes with vendors.
Finance Department
The Finance department is responsible for:
♦ Reviewing all purchase requisitions
♦ for completeness,
♦ far proper usage of accounts ,
♦ ensuring that funding is available in the applicable budget
♦ for compliance with current purchasing policies and procedures
♦ Preparing purchase orders from completed purchase requisitions and forwarding them
to departments
♦ Paying invoices
Designees
Deparhnent Directors are ultimately responsible for the purchasing activities of their
departments and must sign all purchase requisitions. Directors may delegate requisition
approval authority to another employee within their department by completing a Delegation of
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Authority Form and sending it to the Finance Department where it will be kept on file.
Directors are responsible for ensuring that their designees have access to and are knowledgeable
of current purchasing policies and procedures.
PURCHASE REOUISITION/PURCHASE ORDERS
Purchase requisitions and purehase orders are required for acquisitions of goods and/or services
with a total purchase price of $5,000.00 or more.
Purchase Requisitions:
The originating department will be responsible for completely and accurately preparing the
requisition. The purchase requisitions must include descriptions, price�, quantities, terms,
delivery, vendar, contract numbers, charge (account) codes and any other standard or special
instructions or explanations.
Purchase rec�uisitions may not be approved for any purchases which would result in spending in
excass of amounts authorized in the annual operating budget.
Depart.ments may take advantage and `piggy-back' a State or other government entities'
purchasing contract as long as the contract is current and was procured with the same level of
formality as the Village would have otherwise required. Purchase requisitions for piggy-back
contract items must comply with the specifications of the piggy-back contract listing.
In the event that competitive procurement cannot be obtained (e.g. sole source purchase) or
circumstances do not allow for comperitive procurement when otherwise required (e.g.
emergency situations), reasons for the exception to policy must be fully documented and
approved by the respective director and Village Manager.
Purchase Orders
All purchase orders are to be processed np 'or to the purchase of goods or services fram outside
vendors.
Blanket purchase orders Blanket purchase orders permits multiple purchases from the same
vendor using the same index. May be used when the ordering department:
♦ Needs to purchase spec�c items or services repetitively over a specified tune period
usually one (1 year)
♦ Needs to frequently purchase low dollar goods or services and can obtain more �
favorable pricing through volume commitments
Blanket purchase orders should not be used when:
♦ When a price agreement or business terms are not pre-negotiated with the vendor.
♦ When control over the department's expenditures would be weakened significantly.
The Finance Department will generate the purchase order once the Village Manager and the
appropriate directors or designees have approved the requisition. Orders must be placed only
for items included on tlte approved requisition, at stated quantities and prices.
Splitting orders, or even failing to combine orders when this logically should be done in the
interest of economy, for the purpose of keeping total cost of each order below purchase order
and/or bid limits, will be construed as a deliberate evasion of this policy.
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LEASE AGREEMENTS
Department directors are required to submit a copy of all lease agreements associated with their
department to the finance department at the beginuing of each fiscal year or when entered into
during the fiscal year. No iease agreement invoices will be processed without this supporting
documentation. The originating department will prepare an annual requisition and the finance
department will create and issue purchase orders from properly approved purchase requisitions.
These purchase orders shall not exceed the end of the fiscal year in which they were issued.
Lease invoices will then be paid each month or as noted in signed lease agreements, by the
finance department.
CONTRACTS
All contracts and progress payments will be entered through the purchasing systern as a
purchase order so that the entire contract amount for the fiscal year is encumbered in the
accounting system immediatety. Contracts in progress will need to be requisitioned at the
beginning of a new fiscal year. Department directors may administratively approve change
orders to contracts previously approved by the Village Council provided that the total cost of the
project budget approved by the Village Council is not exceeded. The department director may,
administratively renew those contracts previously approved by the Village Council, which
contain renewal options, provided that the tota.l cost, and ultimate expiration date of the contract
is not exceeded.
PROCUREMENT TI�RESHOLDS
In order to insure that all items are acquired in the most e�cient, effective and economical
manner available, the Village of Tec}uesta uses a three (3) tiered procurement process.
Discretionarv Procurement
Purchases of less than $5,000.00 are at the discretion of department staff. The department staff
member making the purchase is required to make a reasonable attempt to insure that the Village
receives the lowest and best price that is consistent with the desired quality of materials,
physical convenience/distanee, workmanship and/or level of performance.
Informal Procurement
Purchases of $5,000.00 but less than $25,OOQ.00 require at least three written quotes
which shall be attached to the purchase requisition.
Competitive Procurement
Purehases of $25,000.00 or more require the use of a Competitive Procurement process.
ADDITI4NAL REOUIREMENTS
All contracts shali be approved by the Village Attorney as to form aud legal sufficiency, by the
Finance Director, or designee, as to sufficiency of appropropriated funds, and by the Village
Manager.
AlI contracts with a value less than the amount as set by Resolution of the Village Council may
be signed and executed by the Village Manager, providing that such contracts be presented to
the Village Council after execution.
Al1 contracts exceeding the amount as previously set by Resolution of the Village Council must
be approved by the Village Council before being signed and executed.
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The procurement of architecture, engineering, landscape architecture, and surveying services
for planning or study activities when the fee for such professional services exceeds $25,000.00,
or for projects with a basic construction cost that exceeds $250,000.00 shall be pursuant to the
requirements of the Consultants Competitive Negotiations Act (287.OS5, F.S.).
It is an express violation of this policy to intentionaiiy "split" contracts or purchase orders or
otherwise manipulate them for the purpose of avoiding dollar iimitations or any of the Village's
purchasing policies.
EXCEPTIONS
Contracts for artistic services, academic program reviews, lectures, legal services, health
. services, services for persons with mental or physical disabilities, Medicaid services, family
placement services, prevention services (mental health, child abuse, drug abuse, and runaway
services), worker's compensation related training services, contracts entered into with other
government agencies, and contracts with other persons possessing a high degree of professional
skill shall be e�empt from the requirements of advertising and competitive procurement andJor
shall be as specified in Florida's Statute 2$7.055 (Consultants Competitive Negotiation Act), if
applicable.
The Finance Director and Village Manager's authorization, as evidenced by a manual signature,
shall not be required for any normal and customary payroll related expenditure.
The approval of the Village Council shall not be required for any interim payment when the full
cost has been previously approved. Changes to purchases previously approved may be
authorized by the Village Manager provided the total dollar amount and other substantial
matters do not exceed previously authorized m�imum limits granted by the Village Council.
PAYMENT
By issuing a purchase order in advance of the purchase, funds are properly encumbered and set-
aside to pay tttese obligations. The encumbrance is not a contract but ensures that the required
funding is available to meet the financial obligations. The finance department pays invoices for
the Village.
It is the originating department's responsibility to approve invoices and submit them to the
fmance department. Every vendor's invoice is due for payment within some period of time after
it is generated. This is normally computed as a number of days after the invoice date. The
Village's standard for payment of vendor's invoices is within thirty days of the invoice date.
The Village must pay its obligations in a timely manner. Failure to comply with payment terms
often leads to:
♦ Credit hold, where a vendor refuses to fill any subsequent order until the
outstanding obligation has been paid
♦ Stiffer terms where the vendor may even demand payment in advance
♦ Higher priees on future purchases.
The fmance department pays against approved original invoices — not statements, proposals or
quotations The finance department will match invoices submitted against any related purchase
orders and if there is a conflict will return the invoices to the originating depariment to resolve
the conflict.
6CPage
SALES AND USE TAX
The Village of Tequesta is exempt from paying sales t�, thus sales and use tax are generally
not reimbursable, except for approved business travel and entertaintnent services. An
individual may request reimbursement from the department director where it can be shown that
it was not reasonable to require the individual to obtain the t� exemption.
CREDIT MEMOS
If a department believes it is entitled to a credit from a vendor or receives a credit memorandum
that is deemed to be valid the department should notify the fmance department and send all
credit memos there for processing.
ADVANCING PERSOPdAL FUNDS
Individuals, as a general iule, should not advance their own funds to purchase supplies and
services ou behalf of the Village. Purchases should be made through established purchasing
policies and procedures. The Village should deal directly with vendors to arrange for the receipt
of goods and the payment of obligations.
In limited instances, most often related to business travel and enterta.inment expenses, the
department or individual may pay for the item and be reimbursed. If it is necessary that an
individual advance funds to purchase supplies or services for Village business, the immediate
supervisor must first authorize the purchase. The reimbursement request must be supported by
the business purpose of the transaction, bona-fide proof of payment AND must include the
signatures of the purchaser AND of a direct supervisor who can attest to the receipt of the
supplies or services by the department. Requests for reimbursements lacking these signatures
will be returned to departments.
Any actions that might be construed to be an intentional manipulation or circumvention of these
policies will be documented and forwarded to the Village Manager.
FISCAL YEAR-END PROCEDURES:
The Finance department seeks to close the fiscal year, complete rate change calculations and
prepare the Village of Tequesta's financial statements in a timely manner. The following
policies are being implemented In order to accomplish this goal.
All nurchase orders must be received in the finance department by August 31 in order to be
processed in the �scal year ending September 30�`. Any purchase orders received after August
31 will be held and proccssed in the following fiscal year and encumbered against the
following f scal year bud�et
The finance depa.rtment must receive all invoices by November 15�' of the following fiscal year
in order to be processed in the prior fiscal year ending September 30` Any invoices received
after that date will be recorded in the following year and charged against the following year's
budget.
Village of Tequesta Purchasing Policy & Procedure
Revised October 2011
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