Chapter 41.20
PURCHASE ORDER
Sections:
41.20.020 When to use purchase order.
41.20.040 Subsequent changes or cancellations.
41.20.060 Receiving procedure.
41.20.010 Purpose.
A purchase order is a document that states the terms and conditions of a proposed transaction and creates a contractual relationship between a vendor and the City. It describes the quantity and quality of the required goods and includes other information, such as shipping terms, delivery dates and location, and prices quoted in the solicitation response. The purchase order shall encumber the applicable appropriations account.
(Res. 04-12 (§ 5.1), 1-16-12)
41.20.020 When to use purchase order.
Purchase orders are required for all invoiced purchases of commodities, materials or supplies and services with an expected expenditure of City funds of $5,000 or more unless previously approved by the Purchasing Manager.
(Res. 04-12 (§ 5.2), 1-16-12)
41.20.030 Process.
Purchasing Division personnel shall complete all purchase orders in the City’s financial system and send a copy to the vendor, the requestor and the paying division.
(Res. 04-12 (§ 5.3), 1-16-12)
41.20.040 Subsequent changes or cancellations.
Whenever a change of any kind on a purchase order is required, the originating department shall forward a purchase order change request memorandum that provides the information to be changed and a justification for doing so. Requests shall be directed to Purchasing via phone, e-mail or inter-office mail. Note: Only Purchasing is authorized to change and/or cancel the original purchase order. Purchase orders with activity, i.e., partial delivery or payment, cannot be canceled.
(Res. 04-12 (§ 5.4), 1-16-12)
41.20.050 User approval.
Purchase orders must be approved for payment in accordance with final approval authority requirements set forth in Chapter 41.08 GJMC.
(Res. 04-12 (§ 5.5), 1-16-12)
41.20.060 Receiving procedure.
When the material or service is delivered to the department, the authorized agent of the department, as assigned by the Department Director, shall inventory and inspect the delivery to ensure the material(s) and/or service(s) are as listed on the shipping document and are in acceptable condition.
If all materials are received in acceptable condition, the receiving department/division shall submit the invoice for approval to their authorized department/division personnel who then process the invoice for payment.
If materials and/or services received are damaged or defective, they should not be used. If possible, notation should be made upon the receipt in the presence of the delivery agent. Departments shall notify Purchasing immediately when damaged or defective commodities are received.
(Res. 04-12 (§ 5.6), 1-16-12)
41.20.070 Blanket order.
Annual purchasing agreements, also known as blanket orders and term contracts, are agreements established with suppliers to allow individual purchases by the City throughout the year without going through the purchasing competitive process each time a purchase is made. At the same time, blanket orders take advantage of volume discounting based on the annual estimated quantities purchased by the City.
Blanket orders do not commit the City to purchase any merchandise or service from the vendor. They are issued to advise the vendor of the merchandise and/or service the City may require, establish terms and pricing where applicable, establish dollar limits, either per release or per month, establish personnel authorized to make releases against these orders and outline the ordering, receiving and invoicing procedure. Any merchandise and/or service properly released and shipped against a blanket order is covered by the terms and conditions of the blanket order.
Only the Purchasing Division shall issue blanket purchase orders. Prices shall be established as part of each blanket order, in accordance with the policies in this manual.
Requests for the issuance of blanket orders by the Purchasing Division shall be made by departments having needs that are applicable to blanket orders. It is the responsibility of each department to determine the approximate quantity needed and estimated amount that shall be spent during the fiscal year for a particular product category or products.
It must be clearly understood by all individuals authorized to make releases against blanket orders that there shall be strict adherence to the provisions established in the blanket order, with no exceptions.
It is the Purchasing Division’s responsibility to make the vendor fully aware of the procedures of the blanket order and that the vendor complies with the procedures. It is also the Purchasing Division’s responsibility to provide adequate information and instructions to the departments and individuals involved in the use of the blanket order.
(Res. 04-12 (§ 5.7), 1-16-12)