Loading...
5.3. ERMUSR 06-10-2008~/ Elk River Municipal Utilities 13069 Orono Parkway • P.O. Box 430 Elk River, MN 55330-0430 June 3, 2008 To: Elk River Municipal Utilities Commission Jerry Takle John Dietz Jerry Gumphrey From: Bryan Adams Subject: Purchasing and Payment Limits Phone: 763.441.2020 Fax: 763.441.8099 At a previous Elk River Municipal Utilities Commission meeting, John Dietz asked that this commission review policies that relate to purchasing and payment of items before the commission approves the check register. Enclosed is the following information for your review. a) Purchase order policy dated October 23, 1996 b) Payment policy dated January 14, 2003 c) Note that the competitive bid threshold increased effective August 1, 2008 from $50,000 to $100,000. ELK RIVER MUNICIPAL UTILITIES 322 King Avenue Elk River, Minnesota 55330 Phone (612) 441-2020 Fax (612)441-8099 October 23, 1996 To: Patricia Hemza Glenn Sundeen Robert McCartney Judy McSpadden From: Bryan Adams ~ C~ Subject: Purchase Orders In an effort to enhance our documentation of purchasing materials and/or services, I would like to implement the following procedures: a) Any purchased items or services over $100.00 must have a pre-approved purchase order number. The supervisor of the department will initiate the purchasing process by getting quotations or asking Judy 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 are required. b) Items or services under $100.00 may be purchased upon authorization of supervisor. A signed purchase order by the general manager or his designee must follow. c) Routine items such as office supplies, hardware and small automatic parts where accounts are already established at the place of business will not require a purchase order. Supervisor must authorize its purchase and supervisor or employee must sign the receipt at the business and turn in to Judy. If there are any suggested changes, please feel free to let me know. RESOLUTION NO. ELK RIVER UTILITIES COMMISSION WHEREAS, Elk River Municipal Utilities provides electric and water utility services to its customers; WHEREAS, in the ordinary course of business, claims for payment are made against Elk River Municipal Utilities for goods and services provided to the utility; WHEREAS, it is extremely important that Elk River Municipal Utilities pay its bills in a timely fashion; WHEREAS, the Elk River Utilities Commission is an independant commission of the City of Elk River with the 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 THEREFORE BE IT RESOLVED THAT: 1 . The General Manager is authorized to pay claims made against Elk River Municipal Utilities to purchase equipment, materials, and services necessary to ensure efficient operations. 2. 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 S 10,000.00. c. New vehicle purchases. 3. The General Manager shall adhere to the established internal accounting and administrative control procedures to assure the proper disbursement of funds. 4. 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. 1 RESOLUTION NO. ELK RIVER UTILITIES COMMISSION WHEREAS, Elk River Municipal Utilities provides electric and water utility services to its customers; WHEREAS, in the ordinary course of business, claims for payment are made against Elk River Municipal Utilities for goods and services provided to the utility; WHEREAS, it is extremely important that Elk River Municipal Utilities pay its bills in a timely fashion; WHEREAS, the Elk River Utilities Commission is an independant commission of the City of Elk River with the 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 THEREFORE BE IT RESOLVED THAT: 1. The General Manager is authorized to pay claims made against Elk River Municipal Utilities to purchase equipment, materials, and services necessary to ensure efficient operations. 2. 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 S 10,000.00. c. New vehicle purchases. 3. The General Manager shall adhere to the established internal accounting and administrative control procedures to assure the proper disbursement of funds. 4. 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. 1 Adams, Bryan rom: Johnson, Lori Sent: Tuesday, April 22, 2008 10:43 AM To: Allard, Tina; Maurer, Terry; Barnhart, Jeremy; Beahen, Jeff; West, Bruce; Adams, Bryan; Vita, Bryan Cc: Simon, Tim Subject: FW: Bidding Law Here is a copy of the bidding law change we discussed this morning. If you have any questions about whether something needs to be bid, please check with Tim before you proceed. Lori From: Johnson, Lori Sent: Monday, April 21, 2008 8:46 AM To: Simon, Tim Subject: Bidding Law Tim -FYI - in case you haven't seen this yet. Competitive bid threshold increase bill signed into law On Thursday, Governor Tim Pawlenty signed into law Chapter 207, the legislation authored by Sen. Rick Olseen (DFL-Harris) and Rep. Paul Marq_uart (DFL-Dilworth) SF 3622/HF 3646 increases the competitive bid .~reshold in Minn. Stat. § 471.345, to $100,000 from the current $50,000 level. The new law continues to allow cities to award contracts to contractors offering the "best value" under a request for proposals as described in Minn. Stat. § 16C.28. The law will be effective on August 1, 2008. The legislation was initiated by the Minnesota Association of Townships and is supported by the League of Minnesota Cities and the Minnesota Inter-County Association. Under the competitive bidding statute, a contract is defined as an agreement entered into by a municipality for the sale, purchase or rental of supplies, materials or equipment or for the construction, alteration, repair or maintenance of real or personal property. The new law also increases the contract threshold amount that triggers the competitive bidding requirement from $50,000 to $100,000. The threshold was increased to $50,000 in 2000 for cities over 2,500 population and then increased for cities under 2,500 population in 2004. If the contract is estimated to exceed $25,000, but not to exceed $100,000, the new law specifies that competitive bidding is allowed but not required. These limits are currently set at $10,000 and $50,000. For contracts in this range, the contract may be made either upon sealed bids or by direct negotiation, by obtaining two or more quotations for the purchase or sale when possible. However, if the city chooses to use the competitive-bidding process, it must follow through with the procedure even though it was not originally required. Tf a contract is estimated to be $25,000 or less, the city has the choice of making the contract upon quotation or i the open market. If the city makes the contract upon quotation, the city must obtain at least two quotations and keep them on file for at least one year after their receipt.