Discussion:
The finance department is in the beginning stages of implementing an automated accounts payable process. Implementing this automated system will also ensure purchasing procedures abide by the policy in place, thus enhancing internal controls.
The current purchasing process approved in January 2014 and City Code 32.15 subd. (D)(7) have conflicting purchasing thresholds. The purchasing process stipulates that the city administrator and department heads have authority to make purchases up to $25,000; whereas, city code stipulates a $15,000 purchasing threshold. This difference between the two documents needs to be clarified to eliminate staff confusion, and ensure programming of the city's policy into the automated purchasing system is consistent. The attached ordinance amends the city code to match the revised purchasing policy at the $25,000 threshold.
The purchasing process approved in 2014, was basically a process not a policy. The attached draft purchasing policy is more in-depth than the prior approved purchasing process, yet does not delve into standard operating procedures (SOP). SOP's are intended to provide staff with specific instructions versus a policy which is a higher level document approved by council.
The revised purchasing policy has one slight amendment from what was presented during the workshop of the last council meeting. During the workshop there was discussion on the emergency purchasing section. A sentence has been added that the user of the policy should seek for further guidance from both the city code and Minnesota statutes. Both of these areas address specific requirements and guidelines under an emergency situation.