1991-29 Adopts Purchasing Rules & Regulations' RESOLUTION NO. 29-91
A RESOLUTION OF THS VILLAGE COUNCIL OF NORTH PALM BEACH,
FLORIDA, ADOPTING PURCHASING RULES AND REGULATIONS FOR THS VILLAGE
OF NORTH PALM BEACH AND REPEALING ABSOLUTION 24-89.
NOW THEREFORE, BE IT RSSOLVBD BY THS VILLAGB COUNCIL OF NORTH
PALM BEACH, FLORIDA;
section 1. The purchasing rules and regulations for the
Village of North Palm Beach, attached hereto and by reference made
a part hereof, are hereby adopted.
Section 2. Resolution 24-89 is hereby repealed effective
October 1, 1991.
' Section 3. This Resolution shall take effect October 1,
1991.
PASSED AND ADOPTED THIS 25th DAY OF JULY , 1991.
' OR
ATTEST:
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TABLE OF CONTENTS
SECTION TITLE PAGE
INTRODUCTION
1.01 Purpose of Manual 1
1.02 Objective of Centralized Purchasing 1
1.03 Responsibilities: Finance Department 1
1.04 Responsibilities: Village Clerk 1
1.05 Responsibilities: Operating Department 1
1.06 Responsibilities: Village Manager 2
PURCHASING POLICY
2.01 Determining Purchasing Methods 3
INITIATING A PURCHASE
3.01 Purchase Requisitions 5
3.02 Requisition Preparation 5
PURCHASING PROCEDURES, BIDS, CONTRACTS
VENDOR SELECTION, ETC.
4.01 Formal Bidding 7
4.02 Writing Specifications 7
4.03 Identifying Suppliers 7
4.04 Sealed Bid Opening_ 7
4.05 Sole Source Items 7
PURCHASE ORDERS
5.01 Use of Purchase Orders 8
5.02 Procedure for Issuing a Purchase Order 8
5.03 How Purchase Order are Processed 8
5.04 Cancellation of a Purchase Order 9
5.05 Confirming Purchase Orders 9
5.06 Expediting Orders 9
5.07 Back Orders of Partial Payments 9
5.08 Blanket Purchase Orders 10
5.09 Split Purchases (Pyramiding) 10
EMERGENCY PURCHASES
6.01 General Policy 11
6.02 Procedure 11
MISCELLANEOUS
7.01 Telephone and Utility Biils 12
'~"7.02 Inventoried Supplies 12
RECEIPT OF GOODS AND SERVICES
8.01 Acceptance 13
,-8.02 Process for Payment 13
PAYMENT
9.01 Invoices 14
9.02 Invoice Retirement 14
SURPLUS AND OBSOLETE MATERIAL AND E4UIPMENT
10.01 Methods of Disposition 15
10.02 Procedure for Sale. of Surplus Items 15
1. INTRODUCTION
1.01 Purpose of Manual
The purpose of these Purchasing Regulations is to provide one
complete source of purchasing information to assist all Village
departments in obtaining needed supplies, materials and services.
It is intended to remove doubts about how purchases are to be made
under normal circumstances; however, it must be recognized that no
manual can cover every possible eventuality. The Finance
Department is prepared to offer clarification and assistance on all
subjects covered in the manual and to offer suggestions for
handling any particular purchasing matter.
1.02 Objective of Centralized Purchasing
The primary objective of any purchasing operation is to maximize
the value of the dollar spent. All Village departments are
responsible for accomplishing this objective by planning for future
purchase needs and making them in an economical manner.
1.03 Responsibilities: Finance Department
a. Maintain an up-to-date vendor list.
b. Process purchase requisitions.
c. Prepare and issue purchase orders.
d. Pay vendor invoice.
1.04 Responsibilities: Village Clerk
a. Maintaining bid files.
1.05 Responsibilities: Operating Departments
a. Obtain prices on comparable items.
b. Search for new sources of goods and services and provide
the names to the Finance Department.
c. Provide complete information on items to be purchased on
the purchase requisitions and reference budget line item
description.
d. Provide appropriate documentation with purchase
requisitions as required.
e. Plan for purchases to minimize emergency purchases.
1
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f. Prepare technical specifications.
g. Determine if sufficient funds are available in the
budgeted line item.
h. Attempt to use the Finance Department's vendor list as a
minimum for all quote requirements.
1.06 Responsibilities: Village Manager
a. Advertise for bids.
b. Take formal bids.
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2. PURCHASING POLICY
2.01 Determining Purchasing Methods
a. All p hases having an estimated cost in excess of
$5 1: ~d~D4D
1. Must be formally advertised in a newspaper of
general circulation with the advertisement being no
less than fourteen (14) days prior to the opening
of bids .
2. Must be awarded on a sealed bid basis by vote of
Village Council.
3. The vendors' list will be used as a minimum
notification list of available vendors for bidding
purposes.
b. All purchases having an estimated cost between $1,001
and ,~5 ; 8'0~ /D~ DO /
1. Must be made by written price quotation (minimum
three (3) quotations must be obtained).
2. Must be budgeted items.
3. Must be authorized by Village Manager.
c. All purchases having an estimated cost between $501 and
$1,000:
1. Require three (3) quotations ~ ,,~
~ ~ ~.
2. Must be budgeted items.
3. Shall be authorized by Department Head or Village
Manager.
d. Purchases having an estimated cost of up to $500, unless
otherwise described in this manual:
1. Do not require bids or three (3) quotes; Department
Heads are encouraged to obtain the most cost
effective price.
2. Must be budgeted items.
3. Shall be authorized by Department Heads.
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3
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e. Exceptions: In certain instances exceptions to the above may exist. Purchases may
be accomplished:
1. Through the use of the emergency purchase provisions as provided for in
Section 6 (Emergency Purchases) of this manual.
2. When annual contracts exist, i. e. gas, oil, .tires, office supplies, etc.
3. When requirements imposed by federal, state, or county grants provide
different regulations.
4. When the Village Manager deems it appropriate to use procedures of more
formality than set out above.
f. The Village Manager shall also comply with Resolution No. 44-98 of the Village
when authorizing purchases that involve written contracts. A copy of Resolution
No. 44-98 is attached as Appendix 1.
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3. INITIATING A PURCHASE
3.01 Purchase Requisition
Purchase Requisition is to be filled out and submitted to the
Finance Department with the appropriate documentation attached.
Where equipment is covered by maintenance contracts, requests for
service may be made directly by the respective department.
3.02 Requisition Preparation
Procedure to Process Regular Requisitions:
a. Print each requisition in duplicate and give the
following:
1. Sequential requisition number.
2. Department account number.
3. Date of requisition.
4. Suggested vendor name and address.
5. Village delivery location.
6. Quantity
7. Complete, detailed description and purpose of items
to be purchased, and reference budget line item
description.
8. Estimated net cost of line items of goods and
services.
9. Estimated cost of shipping and handling.
10. Signature of department head which indicates
department head's approval of purchase.
b. When necessary, bid documentation, i.e. telephone bids,
request for quotations, etc. should be attached to
purchase requisition.
c. The original is sent to the Finance Department (up to
$1,000) or Village Manager (for approval over $1,000).
d. Second copy is kept in the requesting department's file.
e. Upon receiving the requisition, Finance will determine
the availability of funds in the department account. If `,
5
the funds are available, preparation and processing of
the purchase order will proceed.
f. Requisitions over $5,001 will be subject to
process. Upon award of bid by the Village
Finance Department will prepare and issue
order.
the bidding
Council, the
a purchase
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4. PURCHASING PROCEDURES, BIDS, CONTRACTS,
VENDOR SELECTION, ETC.
4.01 Formal Bidding
Formal bids are required for purchases in excess of $5,001.
4.02 Writing Specifications
Upon submitting a request for formal bidding, departments should
also transmit desired specifications to be included as a part of
the bidding process.
Care should be taken to design specifications so that they are not
so narrow as to limit competition unnecessarily. Department heads
have the responsibility for complying with this guideline.
4.03 Identifying Suppliers
Operating departments are responsible for maintaining a
comprehensive, updated list of suppliers of various products
frequently purchased by that department. It is the Village's
policy to award to the lowest qualified bidder offering merchandise
conforming to pre-defined specifications.
4.04 Sealed Bid Opening
All sealed bids are to be opened at the exact time, date and place
specified in the bid package. A bid package contains: (1) notice
to bidders; (2) complete bid specifications and (3) contract
documents, if appropriate. All bids are to be opened publicly with
a tabulation being made available to all vendors participating.
Formal bids are to be checked for proper submission of any required
bid deposits, bonds, etc. All sealed bids will be opened by a bid
board consisting of the Village Manager, the Department Head
concerned, and the Village Clerk. After evaluation, a
recommendation will be made by the Village Manager for transmittal
to the Village Council.
4.05 Sole Source Items
Sole Source items must be designated as such when requisitions or
specifications are submitted. Every reasonable effort must be made
to locate competitive suppliers. Only the Village Manager may
certify an item as sole source. Approval of sole source purchases
over $5,001 are to be made by the Village Council.
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5. PURCHASE ORDERS
5.01 Use of Purchase Orders
For all regular purchases of $200 or more, the purchase order will
be used. Exceptions are enumerated in Number 5.05 and Sections 6
and 7.
5.02
a.
b.
c.
d.
5.03
a.
Procedure for Issuing a Purchase Order
All purchase orders will be issued by the Finance
Department.
All purchase orders will be sequentially numbered.
The purchase order is prepared in triplicate.
The purchase order is printed giving the following
information:
1. Purchase order number
2. Vendor code number
3. Vendor name
4. Vendor address
5. Vendor contact person
6. Vendor telephone number
7. Vendor fax number
8. Department account number
9. Requisition number
10. Date of purchase order
11. Required delivery date
12. Terms
13. F.O.B. point
14. Destination shipping point
15. Quantity ordered
16. Vendor proprietary stock number (if any)
17. Generic description of goods or services ordered
18. Unit price
19. Extension
20. Net total of goods and services ordered
21. Allowable shipping charges
22. A box checking an original or confirming purchase
order
23. Signature of responsible Village official
How Purchase Orders are Processed
The original copy is delivered directly to the vendor.
8
b. The second copy is retained by the Finance Department for
account encumbrance and is attached to the requisition
original.
c. The third copy is sent to the Department Head of the
requisitioning department.
5.04 Cancellation of a Purchase Order
All cancellations of orders must be made by forwarding to the
Finance Department the receiving copy of the purchase order with
the word "VOID" printed across the face of said copy. The
Department Head should sign and date all voided purchase orders, as
well as provide a brief reason for the void.
5.05 Confirmin4 Purchase Orders
Maintenance Agreements, equipment repairs, maintenance materials
and supplies, or other items purchased at the time of need may be
handled as follows:
a. When a department needs a purchase order number for an
item in this category the Finance Department should be
contacted. The Finance Department will assign a purchase
order number to that item and record the vendor's name,
purchase order number, approximate cost and account
number.
b. The Finance Department will process the purchase order in
the normal fashion except that the "CONFIRMING" box on
the purchase order will be checked, the name of the
contact person at the vendor with whom the order was
placed, and the date and time the order was placed will
be written.
c. "CONFIRMING" orders will be kept to a minimum and used
only when it is not reasonable to use the normal
purchasing method.
5.06 Expeditinct Orders
Once the Finance Department has issued a purchase order, no follow-
up work is done on the order by Finance. It will be the
responsibility of the operating department to expedite orders.
5.07 Back Orders of Partial Payments
When several items are ordered, the supplier may deliver only a
portion of the quantity requested. He may then advise you that the
remainder of the order has been back ordered. The department head
should retain the copy of the purchase order until all items are
delivered. Should the vendor invoice for the partial order
9
delivered, the following partial payment procedure can be
implemented:
a. When the invoice is received, the department head should
forward the invoice to the Finance Department with his or
her approval of the partial payment. Notations should be
made on the invoice that the order is "INCOMPLETE" and
the purchase order number circled, or noted if it is not
mentioned on the invoice. The Finance Department will
use this as authority for partial payment.
Documentation must be sent to the Finance Department
indicating which items have been received before the
Finance Department makes the payment on such invoice.
b. The department copy of the purchase order remains in the
department until the entire order is filled, invoiced, or
balance canceled.
5.08 Blanket Purchase Orders
Blanket purchase orders can be requested from the Finance
Department for small, routine daily purchases for each vendor the
department intends to use frequently during the year.
The blanket purchase order is limited up to $500 as authorized by
the department head (up to $1,000 with the Village Manager's
approval) for each vendor.
5.09 Split Purchases (Pyramiding)
a. Split purchases, or pyramiding, is defined as issuing
more than one purchase order on the same product (with
the intent of circumventing these regulations and/or
budget limitations) within an unreasonably short time
period such that the totals of the P.O.'s equal an amount
greater than that authorized by these regulations.
b. Split purchases are prohibited.
10
6. EMERGENCY PURCHASES
6.01 General Policv
True emergencies do occur as a result of parts, supplies, and labor
needed to repair equipment and facilities that are needed to
provide services for the health, welfare and safety of the public.
Anticipating needs in advance, whenever possible, will hold
emergency purchases to a minimum and allow the use of standard
procedures.
6.02 Procedure
a. Emergency purchases between $0 to $1,000, mark invoice
"EMERGENCY PURCHASE." The invoice must be submitted to
and approved by the department head, subject to
confirmation by Village Manager. /O~$~
b. Emergency purchases from $1,001 to $~@8~, mark invoice
"EMERGENCY PURCHASE" and contact the Village Manager for
approval. ~j-D ~ pUC~
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c. Emergency purchases ~"~`" are not to be made
without prior approval by the Village Manager, subject to
confirmation by the Village Council.
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7. MISCELLANEOUS
7.01 Telephone and Utility Bills
All Village telephone and utility bills ar
Finance Department to verify proper billing
for long distance service. Any bills
departments should be forwarded to th
Telephone bills must be verified by th
forwarded to Finance.
7.02 Inventoried Supplies
e processed through the
for each department and
received in another
e Finance Department.
e department head and
In order to obtain a cost savings on those items used frequently by
all departments for normal office operations, the Village will bid
those items on an annual basis in October of each fiscal year. All
departments will estimate their respective needs for items required
on a frequent basis. Ali orders will be processed by the General
Services Department. Those items will be inventoried and charged
back to each department as they draw down on supplies. General
Services "Inventory Requisitions" will be used to account for all
"drawn" items.
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8. RECEIPT OF GOODS AND SERVICES
8.01 Acceptance
a. Upon receipt of goods a physical inspection, under the
responsibility of the department head, will be made to
determine quantity and quality of merchandise received.
b. If there is a discrepancy, inform the vendor and the
Finance Department immediately and confirm conversation
in writing.
c. If quantity and quality conform to purchase order
specifications, the department head signs off on the
vendor packing list or bill of lading or enclosed
invoice.
8.02 Process for Payment
a. If the shipment does not complete the purchase order, the
department head has the responsibility of making a
duplicate of the receiving (third copy) of the purchase
order and mark the receiving copies "PARTIAL SHIPMENT.
RECEIVED" and forward one of the copies to the Finance
Department.
b. If the shipment completes the purchase order, mark the
receiving copy "SHIPMENT COMPLETE. RECEIVED" and forward
it to the Finance Department.
c. Forward the vendor packing slip or bill of lading (if
any) with the receiving copy to the Finance Department.
d. Services, as distinct from commodities, rendered must be
certified by the department head that the quality meets
the specifications of the purchase order before the
invoice is paid.
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9. PAYMENT
9.01 Invoices
a. Original vendor invoices will be sent directly to the
Finance Department.
b. The Finance Department will pay the invoice only if:
1. The receiving copy and vendor packing slip or bill
of lading or enclosed invoice has been received by
the Finance Department.
2. Signature approval by the department head on the
receiving copy certifies that there has been a
satisfactory delivery of goods or services.
3. Total quantity received per line item is equal or
less than quantity ordered.
4. Unit price on invoice is the same as unit price on
the purchase order.
5. Extension per line item is correct.
6. Total of line item extensions is reflected by the
net total on the invoice.
7. Advantage is taken of all allowable discounts.
8. Funds are available in the department account.
9.02 Invoice Retirement
a. Check is issued to vendor, signed by the appropriate
authorized individual(s).
b. Original invoice is marked "PAID."
c. The "PAID" invoice, the receiving copy, the vending
packing slip or bill of lading, and the remittance copy
of the check are attached to the original purchase order
and filed. If the purchase order is not complete, the
attachment is made by paper clasp. If the purchase order
is complete, the attachment is made by staple.
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10. SURPLUS AND OBSOLETE MATERIAL AND EQUIPMENT
10.01 Methods of Disposition
a. Surplus, worn out or obsolete material and equipment may
be disposed of in any of the following ways:
1. By transferring to other departments
2. By returning to the manufacturer or supplier
3. By trading in on new equipment
4. By junking
5. By advertising for sale
b. Each department shall report its surplus or obsolete
stock, equipment or materials to the Finance Department.
c. All Capital equipment shall be declared surplus by
Village Council before processing as surplus.
10.02 Procedure for Sale of Surplus Items
a. If surplus material is sold, it shall be accomplished by
the affected department in conformance with competitive
practices.
b. Surplus property may be disposed of by auction. Final
approval for sales will be made by the Village Manager or
his designee. Advertisement for such sales will be made
in a local newspaper at least one time, no less than five
(5) days prior to sale or auction.
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