CCR2013069-Purchasing Policy (2)
COMMON COUNCIL - CITY OF MUSKEGO
RESOLUTION NO. 069-2013
PURCHASING POLICY
CITY OF MUSKEGO
WHEREAS, the Common Council has the authority for the management and control of the City’s
finances and thus all expenditures of City funds in accordance with Wisconsin State Statute 62.11(5),
and
WHEREAS, the Common Council desires to expend City resources as efficiently and responsibly as
possible with a purchasing policy that works toward obtaining goods and services that are of high
quality at the lowest cost, and
WHEREAS, the Common Council desires to establish guidelines and procedures for City Departments
for purchasing items and services,
NOW, THEREFORE, BE IT RESOLVED, the Common Council hereby establishes the following
purchasing policy.
1. This purchasing policy applies to all City expenditures and includes contracts for service,
labor, materials, supplies and equipment when said policy does not conflict with another
applicable law, rule, ordinance, contract, policy or similar requirement. Items within an
approved budget are not considered exempt from this policy.
2. Each Department Head shall be responsible for authorizing day-to-day purchases for their
respective departments. This authority may be delegated to other employees within the
department however ultimate responsibility for purchasing rests with the Department Head.
3. It is the responsibility of the Department Heads to monitor compliance with the City’s
purchasing policies and procedures. Department Heads verify that the documentation is
complete, applicable bidding requirements have been met (if applicable), budget authority
exists, account number to be charged is appropriate, and there is a need for the purchase.
Review of this is evidenced by name and date on the voucher approval form to the City
Council and/or Committee.
4. Purchases shall be requested only when adequate funds remain in the approved budgeted
expenditure category or fund to cover the cost of such purchases except in unusual or
unforeseen circumstances.
5. Whenever practicable, three (3) informal bids shall be obtained for non-customary and non-
routine purchases at the discretion of the Department Head. The Department Head
requesting the expenditure shall state his/her recommendation for which quote to accept,
why and identify the line item of their department budget from which the funds will be
drawn when the City is invoiced for the purchase.
6. Purchasing shall be done when possible with written orders. Written orders shall be signed
or initialed by the Department Head prior to the order being placed/expenditure being made.
Resolution #069-2013 Page 2
7. In cases where it is not practical to use a written (purchase) order (i.e. small materials or
supplies needs on a day to day basis), items may be charged by authorized personnel within
the Department. Use of City issued business credit cards shall be in accordance with the
City’s policy on the use of City issued business credit cards.
8. Bills/invoices/statements shall be initialed by the Department Head of the department
responsible for the purchase prior to the bill/invoice being processed for payment by the
Finance & Administration Department to ensure satisfaction and that items were received as
ordered and invoiced.
9. All contracts for professional services and public works contracts as defined by Wisconsin
State Statute 62.15 (12) shall be specifically reviewed by the City Attorney as a condition of
approval and prior to execution. Maintenance agreements shall be reviewed by staff prior to
renewal and in consultation with the Mayor to ensure costs are being reviewed and
controlled in the best interests of the City.
a. Selection of vendors for professional services and construction contracts should take
into consideration the overall value of such contracts including:
1. Continuity of the various phases of a project.
2. Operational efficiencies
3. Level of expertise in related services.
4. Scope of services.
b. Individual change orders on construction or similar contracts will be subject to the
following thresholds for approval of contracts for services:
1. Under $10,000 – Department Head
2. $10,000 - $25,000 – Department Head and Finance & Admin. Director
3. $25,000 - $50,000– Department Head, Finance & Admin. Director and Mayor
4. $50,000 or up to 10% of budgeted construction projects only (whichever is greater)
Department Head, Finance & Admin. Director and Mayor
5. Over $50,000 – Common Council (with exception to #4)
c. Due to the cost-benefit to the City, it is understood the use of the same vendors for
professional services and contracts including those for attorney, engineering, financial
advisors, information technology, assessment maintenance and insurance carriers may
carry over from year to year without seeking competitive bids when it is deemed to be
in the public interest.
10. It is hereby noted, in regard to public construction projects, public bidding law shall be
followed as required in Wisconsin State Statute 62.15.
11. It is hereby noted, certain Public Service Commission rules and Administrative Codes shall
be followed that require Public Utility Committee approval of expenditures from segregated
utility accounts.
Resolution #069-2013 Page 3
12. Approval authority for purchasing shall be as follows:
a. For items/services (purchases) that were included in the Common Council approved
budget, excludes purchases within approved contractual agreements, for the fiscal year -
1. Purchases up to the public bidding requirements (currently $25,000) shall be
approved by the Department Head.
2. Purchases between $25,000 and $50,000 shall be approved by the Mayor prior
to the order being placed or expenditure being made. The Department Head
desiring to make the purchase shall make a recommendation concerning such
purchase to the Mayor.
3. Purchases exceeding $50,000 shall be approved by the Common Council prior
to the order being placed or expenditure being made. The Department
Head/Mayor desiring to make the purchase shall make a recommendation
concerning such purchase to the Common Council.
4. Should the purchase amount exceed the original budgeted amount, the change
will be subject to the thresholds listed in 9 (b) above.
5. Purchases included in the approved budget may carry over into future years
due to timing issues or unforeseen events.
b. For items/services (purchases) that exceed the authorized departmental expenditure
budget or budget category, the following thresholds for approval are to be used:
1. Purchases up to $1,000 shall be approved by the Department Head.
2. Proposed purchases exceeding $1,000 and up to $2,500 shall be approved by
the Mayor based on a recommendation from the Department desiring to make
the purchase prior to the order being placed or expenditure being made.
3. Proposed purchases exceeding $2,500 and up to $5,000 shall be approved by
the Finance Committee based on a recommendation from the Department
Head and the Mayor prior to the order being placed or expenditure being
made.
4. Proposed purchases exceeding $5,000 shall be approved by the
Finance Committee and the Common Council prior to the order being placed
or expenditure being made. Such proposed purchase must be based on a
recommendation by the Department Head desiring to make the purchase and
the Mayor.
Ordinary budget amendment procedures must be followed for non-budgeted purchases
which exceed the General Operating expenditure category in its entirety.
13. In the case of an emergency or where a mechanical failure or vehicle repair occurs,
Department Heads may proceed with the expenditure or change order without prior approval
of the Finance Committee but with the approval of the Mayor unless this policy is in conflict
with another applicable law, rule, ordinance, contract, policy or similar requirement. Should
the Mayor be unavailable, notification shall be made to the Council President as soon as is
practical.
Resolution #069-2013 Page 4
This purchasing policy shall take effect upon adoption of this resolution by the Common Council, and
replace Resolution No. 026-2013.
DATED THIS 27TH DAY OF AUGUST , 2013.
SPONSORED BY:
COMMITTEE OF THE WHOLE
This is to certify that this is a true and accurate copy of Resolution #069-2013 which was adopted by
the Common Council of the City of Muskego.
_________________________
Clerk Treasurer
Adopted by the Common Council
August 27, 2013