5.2. ERMUSR 04-09-2013 Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
Elk River Municipal Utilities Commission Troy Adams, P.E. —General Manager
John Dietz—Chair
Al Nadeau—Vice Chair
Daryl Thompson—Trustee
MEETING DATE: AGENDA ITEM NUMBER:
April 9, 2013 5.2
SUBJECT:
Purchase Order Policy and Resolution
BACKGROUND:
The Elk River Municipal Utilities Commission previously approved the Purchase Order Policy
8.15 stating "Any purchased item(s) or service(s) over$250.00 must have a pre-approved
purchase order number...Items or services under$250.00 may be purchased upon authorization
of the Supervisor."
DISCUSSION:
The City of Elk River recently brought their Purchase Order Policy to the City Council to
increase their purchase amount to $5,000.00. We would like to follow suit with the City and
change our Purchase Order Policy to state that"Any purchased item(s) or service(s) over
$5,000.00 must have a pre-approved purchase order number...Items or services under$5,000.00
may be purchased upon authorization of the Supervisor."
In 2003 the Utilities Commission adopted a resolution authorizing a process for payment of
claims. I've included this resolution for the Commission's review and consideration.
ACTION REQUESTED:
Staff recommends that the Elk River Municipal Utilities Commission approve this change to the
Purchase Order Policy and approve the Resolution of the Board of Commissioners of Elk River
Municipal Utilities Authorizing a Process for the Payment of Claims.
ATTACHMENTS:
• Purchase Order Policy 8.15
• Resolution of the Board of CommisPage sioners 1 of of 1 Elk River Municipal Utilities Authorizing a
Process for the Payment of Claims
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8.15 Purchase Order Policy
1.0 Purchase Order Policy
In an effort to enhance documentation of purchasing materials and/or services,the following
procedures shall be implemented:
A. Any purchased item(s) or service(s) over$250.00 $5,000_00 must have a pre-approved
purchase order number. The Supervisor of the department will initiate the purchasing
process by securing quotations or asking the Purchasing Agent-Specialist to secure
quotations before the actual item is purchased. The General Manager or his designee will
sign all purchase orders. A minimum of two quotations shall be required.
B. Items or services under$250.00 $5,000.00 may be purchased upon authorization of the
Supervisor. _ • : : - : •- - -- _- -- . , , : - :- ':--- -.
follow
C. Routine items such as office supplies, hardware, and small automatic parts will not
require a purchase order at places of business where an account is established. The
Supervisor must authorize purchase and he/she or employee must sign receipt at the place
of business and submit such a receipt to the Purchasing C-lerkSpecialist.
RESOLUTION No. 13-3
BOARD OF COMMISSIONERS
ELK RIVER MUNICIPAL UTILITIES
A RESOLUTION OF THE BOARD OF COMMISSIONERS OF ELK RIVER
MUNICIPAL UTILITIES AUTHORIZING A PROCESS FOR THE PAYMENT OF
CLAIMS
WHEREAS, Elk River Municipal Utilities (Utilities)provides electric and water utility services
to its customers;
WHEREAS, in the ordinary course of business, claims for payment are made against the Utilities
for good and services provided to the Utilities;
WHEREAS, it is extremely important that the Utilities pay its bills in timely fashion;
WHEREAS, the Utilities Commission is an independent commission of the City of Elk River
with statutory authority to discharge funds under its jurisdiction;
WHEREAS, the Utilities Commission has determined that it is in the best interests of the utility
to delegate authority to pay certain claims to the General Manager.
NOW BE IT RESOLVED:
A. The General Manager is authorized to pay claims made against Utilities to purchase
equipment, materials, and services necessary to ensure efficient operations.
B. The authority to pay claims does not extend to the following:
a. Purchases that require a formal bid process pursuant to Minnesota Statutes.
b. Any non-budget items with a cost in excess of$10,000.00.
c. New vehicle purchases.
C. The General Manager shall adhere to the established internal accounting and
administrative control procedures to assure the proper disbursement of funds.
D. The General Manager shall submit a list of all claims paid to the Utilities Commission for
informational purposes at the Utilities Commission's next regularly scheduled meeting
after payment of the claim.
This Resolution Passed and Adopted this day of , 2013.
John Dietz, Chair
Troy Adams, P.E., General Manager