Chapter 41.08
PURCHASING AUTHORITY
Sections:
41.08.030 Department Directors.
41.08.070 Delegations to other City officials.
41.08.080 Purchasing approval limits table.
41.08.010 City Council.
(a) Authority. The responsibility for all purchases made by the City of Grand Junction is held by the City Council. The City Council shall authorize the City Manager to establish procurement rules and regulations for all City personnel.
(Res. 04-12 (§ 2.1), 1-16-12)
41.08.020 City Manager.
(a) Definition. The Council appoints the City Manager by majority vote. The City Manager is the Chief Executive Officer of the City and shall be responsible for the conduct of all City departments. In the absence of the City Manager, the Deputy City Manager shall be responsible for the conduct of all City departments.
(b) Authority. The City Manager shall establish the rules and regulations for the procurement of all goods and services, and such rules and regulations shall be applicable to all City employees. The City Manager and City Council possess the sole authority for any deviation from purchasing regulations. If improper purchasing practices occur, the City Manager may invoke disciplinary action(s) upon the individual, division and/or department. Disciplinary action may be in the form of restricted purchasing delegation, restitution, suspension, termination or any other form deemed appropriate by the City Manager.
(1) The spending levels (aka purchasing authority) of the City Manager shall be $500,000 per transaction for budgeted and duly and properly procured purchases of fleet (vehicle(s) and rolling stock) and equipment of $500,000 per transaction; and
(2) Any purchases of fleet (vehicle(s) and rolling stock) and equipment in excess of $500,000 per transaction shall be approved by City Council.
(c) The following goods and services must be approved by the City Manager’s office:
(1) All capital outlay and service and maintenance contracts between the amounts of $25,000 and $200,000;
(2) Other items consistent with policy and/or practice of the City Manager.
(Res. 102-21, 12-15-21; Res. 15-17, 2-15-17; Res. 04-12 (§ 2.2), 1-16-12)
41.08.030 Department Directors.
(a) Authority. By authority of the City Manager, Department Directors or their designated representative shall be delegated purchasing authority and responsibility as set forth.
(b) Department Directors are given the responsibility of ensuring that all personnel in their department are knowledgeable of and fully understand purchasing procedures established by the City Manager. By following the requirements established within this manual, Department Directors may be able to make better use of budgeted funds for their department. Through proper planning of purchases, so as to allow the Purchasing Division sufficient time to obtain proposals, quotations or bids (with an allowable lead time for delivery), departments shall not only be able to realize savings through competition between vendors, but shall also preclude unnecessary delays.
(c) Department Directors may delegate purchasing authority to their employees as required to facilitate the activities within their scope of responsibility. However, the ultimate responsibility remains with the Director for the activities of their subordinate employees.
(d) If Department Directors have any questions concerning procurement procedures, the Purchasing Manager or any member of the Purchasing Staff is prepared to offer assistance.
(Res. 04-12 (§ 2.3), 1-16-12)
41.08.040 Purchasing Manager.
(a) Authority. By the authority of the City Manager, the Financial Operations Manager shall serve as the Purchasing Manager and shall be responsible for the daily operations of the Purchasing Division. The Purchasing Manager shall have the actual authority and power to ensure compliance with the contents of this manual. It shall be his responsibility to comply with the following:
(1) Purchase or Contract. The Purchasing Manager is responsible to purchase or contract for all supplies and services required by any department, division or authority that derives its support wholly or in part from the City, all in accordance with purchasing procedures as prescribed herein and such rules, regulations and procedures as the Purchasing Manager may adopt for the internal management and operation of the Purchasing Department together with such other rules and regulations as shall be prescribed by the City Manager and/or the City Council.
(2) Purchase Authority – Goods and Services. The Purchasing Manager is responsible for the centralized procurement system and for processing all orders amounting to $5,000 or more. Competitive quotation activities may be delegated to the Department Director or Division Manager/Supervisor in accordance with the policies and procedures herein, provided the documentation is provided to the Purchasing Office to file with the original purchase order. Purchases under $5,000 may be accomplished by any City fiscal process, as approved in this manual. Competitive quotations are strongly recommended for all City of Grand Junction purchases.
(3) Minimum Expenditure. The Purchasing Manager shall act to procure for the City the highest quality in supplies, equipment and contractual services at the least expense to the City.
(4) Encourage Competition. The Purchasing Manager shall endeavor to obtain as full and open competition as possible on all purchases and sales.
(5) Rules and Regulations. The Purchasing Manager may propose amendments to all City procurement rules and regulations authorized by this manual and others necessary to its operation, for consideration and approval by the City Manager.
(6) Purchasing Analysis. The Purchasing Manager shall keep informed on current developments in the field of purchasing, pricing, market conditions and new products and secure for the City the benefits of research done in the field of purchasing by other governmental jurisdictions, national technical societies, trade associations having national recognition and by private businesses and organizations.
(7) Forms. The Purchasing Manager shall prescribe and maintain such official City of Grand Junction forms as necessary for compliance with this manual. Forms contrived by individual departments/divisions will not be honored by the Purchasing Staff. Only official City of Grand Junction purchasing forms shall be used.
(8) Bulk Purchases. When beneficial to the City, the Purchasing Manager shall maximize the benefits and the possibilities of buying “in bulk” so as to take full advantage of the economy of scales through quantity discounts.
(9) Federal Tax Exemptions. The Purchasing Manager shall act so as to procure for the City all federal tax exemptions to which it is entitled.
(10) Cooperation with Accounting Division. The Purchasing Manager shall cooperate with the City’s Accounting Division so as to secure for the City the maximum efficiency in budgeting and accounting.
(11) Stores. The Purchasing Supervisor shall be responsible for the Central Stores to include general supervision over all inventories required to support the daily activities of the City.
(12) Surplus Property. The Purchasing Manager shall sell, trade, auction or otherwise dispose of surplus supplies belonging to the City as is in the best interest of the City.
(13) Cooperative Purchasing. When in the best interest of the City, the Purchasing Manager shall participate in, sponsor, conduct or administer cooperative purchasing agreements with the State or one or more political subdivisions of the State of Colorado.
(14) Specifications. Compliance to the physical or functional characteristics as described in the bid documents.
(Res. 04-12 (§ 2.4), 1-16-12)
41.08.050 Buyer(s).
A buyer(s) shall perform procurement functions and miscellaneous assignments as authorized and directed by the City Purchasing Manager.
(Res. 04-12 (§ 2.5), 1-16-12)
41.08.060 Division Managers.
(a) Authority. By authority of the City Manager, Division Managers shall be granted authority and responsibility as set forth in this section.
(b) Division Managers shall be responsible for their division expenditures and the resulting paperwork. Through prompt attention to invoices and receipts, the City may take advantage of prompt payment discounts and bills can be paid to avoid late charges. Any damage(s) or shortage(s) on received shipments should be noted on the freight receipt. Managers shall ensure that deliveries are carefully accounted for, without damage or shortages of merchandise.
(Res. 04-12 (§ 2.6), 1-16-12)
41.08.070 Delegations to other City officials.
Notwithstanding the provisions of this chapter (Purchasing Authority), procurement authority with respect to certain supplies, services or construction may be delegated to other City officials by the City Purchasing Manager, when such delegation is deemed necessary for the effective procurement of these supplies, services or construction.
Any Department Director, Manager or authorized employee delegated the task to sample or test equipment, uniforms, chemicals, etc., for the purpose of judging suitability or fitness in advance of a purchase shall notify the Purchasing Division upon receipt of goods to be sampled.
(Res. 04-12 (§ 2.7), 1-16-12)
41.08.080 Purchasing approval limits table.
The following table indicates purchasing approval limits for City expenditures. The matrix presents types and methods for expenditures on the top horizontal row; the first vertical row indicates dollars to be expended. The remaining boxes indicate the approving authority required to give expenditure approval. Note: all purchases over $5,000 shall be forwarded to the Purchasing Division to be assigned a purchase order.
|
Type of Purchase |
Dollar Amount |
Approval |
|---|---|---|
|
Procurement Card |
Up to $5,000 |
Division Representative |
|
Department Quotes * |
$5,000 – $10,000 |
Division Manager |
|
Formal Quotes by Purchasing * |
$10,000 – $15,000 |
Division Manager |
|
Formal Quotes by Purchasing |
$15,000 – $25,000 |
Department Director |
|
Formal Solicitations |
$25,000 – $50,000 |
City Manager |
|
Formal Solicitations |
$50,000 – over |
City Council |
Note: Table applies to material and/or service acquisitions with adequate current year budget appropriations. Unbudgeted expenditures are prohibited except in case of actual emergency.
* Requisition with applicable supporting quote documentation is required. Refer to Chapter 41.16 GJMC, Purchasing and Requisitioning Cycle.
(Res. 04-12 (§ 2.8), 1-16-12)