HomeMy WebLinkAboutRes 2021-06 Adopting the Purchasing PolicyCity of West University Place
Harris County, Texas
RESOLUTION NO. 2021-06
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST
UNIVERSITY PLACE, TEXAS, REVIEWING AND ADOPTING THE CITY
OF WEST UNIVERSITY PLACE'S PURCHASING POLICY; PROVIDING
AN EFFECTIVE DATE AND CONTAINING FINDINGS AND PROVISIONS
RELATED TO THE SUBJECT.
WHEREAS, the City Council of the City of West University Place, Texas, has
determined that the adoption of policy and procedures for purchasing (the "Purchasing
Policy") is prudent and beneficial for the City.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF WEST UNIVERSITY PLACE, TEXAS THAT:
Section 1. The City Council of the City of West University Place, Texas, hereby
adopts the Purchasing Policy, including the purchasing requirements contained therein,
of the City of West University Place, which is attached hereto as "Exhibit A" and
incorporated herein for all purposes.
Section 2. This Resolution shall take effect immediately from and after its passage
by the City Council of the City of West University Place, Texas.
�P D, APPROVED AND ADOPTED, by the affirmative vote of the City Council
Of t University Place, Texas, this the . ' -'qday of� A , 2021.
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SIGNED:
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City Secretary Mayor
RECOMMENDED:
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City Manager
APPROVED AS TO LEGAL FORM:
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City Attorney
EXHIBIT "A"
Purchasing Policy
CITY OF
WEST UNIVERSITY PLACE
PURCHASING POLICY
March 22, 2021
((m))
City of
West University
Place
City of West University Place
Purchasing Policy
Table of Contents
I. Introduction and Purpose
II. Duties and Responsibilities
III. Purchasing Code of Ethics
IV. Basic Guidelines
V. Exemptions from Competitive Bidding
VI. Emergencies
VII. Invoices
VIII. Credit Memo
IX. Procurement Cards
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5
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9
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APPENDICES
A — Definitions 15
B — City of West University Place Cardholder Agreement 19
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City of West University Place
Purchasing Policy March 22, 2021
City of West University Place
Purchasing Policy
I. Introduction and Purpose
The City of West University Place (the "City") Home Rule Charter establishes Purchasing and
Contracting guidance in Article VII, Section 7.13.' This policy is intended to inform and instruct
each department, division and its staff of the many methods of procurement and duties and
responsibilities of all those involved in the purchasing process. Additionally, this policy is a guide
to the proper procurement procedures to be used by designated purchasing personnel. It is not
intended to answer all questions or provide a procedure for every situation. There will be
exceptions requiring handling on an individual basis. This policy cannot address every situation;
and, when an unusual situation occurs the final authority for City purchasing procedures is the law
itself.
It is the policy of the City that all purchasing shall be conducted strictly on the basis of economic
and business merit to best promote the interest of the citizens of the City. The City encourages free
and unrestricted competition on all bid requests and purchases, ensuring the taxpayers the best
possible return on each dollar. All contracts and purchases shall be handled so as to obtain the best
value for the City, with bids, proposals or quotations solicited whenever practical. The Texas State
Legislature has passed and made Chapter 252 a part of the Local Government Code and it shall be
the policy of the City to fully comply in all aspects with the rules, regulations and procedures
contained therein.
II. Duties and Responsibilities
Finance Department — The Finance Department is responsible for assisting all departments and
divisions in understanding established purchasing policies and procedures in order to ensure they
are consistently followed. The Finance Department shall recommend to the City Council and/or
City Manager any policies and procedures needed to ensure that goods are acquired, stored,
disbursed, utilized and disposed of in a uniform and economical manner.
Departments/Requisitioner — Each department operates as the primary agent for its purchases.
Working in coordination with the City Secretary, each Department Director or designee shall be
responsible for legal advertising, receipt and opening of bids, quotes, and proposals. Each
Department Director or designee shall be responsible for presentation of bids, quotes and proposals
' Section 7.13. - Purchases and Contracts.
a. The City shall make purchases and execute contracts only in accordance with the Constitution and the laws of
the State of Texas. However, (i) for purchasing insurance or employee benefits, the City shall use the request -for -
proposals process described in subsection "b," below, in those instances when the use of competitive sealed bidding
would otherwise be required, and (ii) when letting contracts, the City shall always have the right to reject any and
all bids and determine the most advantageous bid for the City. This section controls over general state law, as
allowed by Section 252.002 of the Texas Local Government Code.
b. The request -for -proposals process is as follows: (i) A request for proposals must solicit quotations and must
specify the relative importance of price and other evaluation factors. (ii) Discussions may be conducted with
proposers determined to be qualified. (iii) Such qualified proposers shall be treated fairly and equally with respect
to any opportunity for discussion and revision of proposals. (iv) To obtain the best final offers, revisions may be
permitted after submissions.
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City of West University Place
Purchasing Policy March 22, 2021
for their respective department as well as be responsible for the purchase and receiving of all
supplies, materials, equipment and services attributable to their department. Each department shall
be responsible for promoting the safety, health and general well-being of the citizens of the City
within the bounds of fiscal responsibility, while preserving and advancing the quality of life for its
citizens. The department and requisitioner shall allow sufficient time for the Finance Department
to issue a purchase order and the vendor to make delivery. The department/requisitioner shall not
obligate the City without a purchase order, except for an emergency or expedited purchase, as
outlined in this policy.
III. Purchasing Code of Ethics
The City's objective is to promote a high standard among the personnel designated to perform the
purchasing function within their department, herein called "Purchasing employees." The goal of the
City is to obtain the maximum value for each dollar of expenditure in an open and competitive
manner. An ethical code of conduct has been established as a guideline. This code is in addition
to ethics policies that may be established in other City policies. These ethical standards require
hard work, courage and difficult choices. In the end, however, employees and citizens will always
be better served by doing what is right, rather than what is expedient.
• Purchasing employees will act impartially and with the highest degree of integrity to foster
public confidence in City government, and to ensure open, fair and unrestricted competition
of available City business in accordance with the City Charter, Ordinances, City Policies
and State law.
• Purchasing employees will not accept, directly or indirectly, tangible benefits including, but
not limited to, money, gift cards, gifts, favors, entertainment, discounts, passes, transportation,
accommodation, hospitality, or offers of employment that may influence or give the
appearance of influencing procurement -related decisions. De Minimis benefits, as defined by
the Internal Revenue Service are excluded from this prohibition. See
https://www.irs.gov/govemment-entities/federal-state-local-governments/de-minimis-fring_e-
benefits. Provided, however, no employee may accept (1) cash or gift cards regardless of
monetary value or (2) any other gift if the value is $50 or greater.
• In the event that a Purchasing employee learns the City is conducting or intends to
conduct business with a vendor with which they or a member of their family or friends have a
financial interest, the Purchasing employee will immediately disclose this potential
conflict of interest to the Finance Director and refrain from all activity with respect to this
vendor. In cases involving the Finance Director, the Purchasing employee shall immediately
report the potential conflict to the City Manager.
• Purchasing employees shall conduct themselves in a courteous and professional manner with
the Department's internal customers, vendors and citizenry with whom they come in
contact, striving always to act objectively and without discrimination or bias of any form.
• Purchasing employees will not utilize confidential or sensitive information acquired in the course
of their duties for personal gain or for the benefit of family or friends, and they shall act only
within the official level of their authority.
• Purchasing employees shall immediately inform their respective Department Director upon
learning of a potential or existing situation in violation of the Purchasing Code of Ethics.
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City of West University Place
Purchasing Policy March 22, 2021
They will strive to ascertain all relevant facts in a timely manner as well as analyze all possible
solutions, and present what they believe to be the best solution to the Finance Director.
• Purchasing employees will not willfully or unlawfully conceal, remove, mutilate, falsify
or destroy any government document or record, nor will they make any false or fictitious
statements in connection with any official matter, document or record.
• Purchasing employees are prohibited from placing bids in a City auction or from
purchasing any item of City surplus, abandoned or police confiscated property.
• Purchasing employees are not authorized to make a purchase for their
personal use through the City's purchasing process nor with petty cash.
• Unless approved by City Council, the City will not purchase from a business or organization
if a City employee or any member of a City employee's immediate family has a financial
interest in the business or organization.
• Unless approved by City Council, the City will not purchase from a business or organization
if a City employee or any member of a City employees' immediate family is negotiating
or has an arrangement concerning employment with the business or organization.
• Purchasing employees will not obtain bids from unqualified suppliers to be evaluated as
"approved equals" against a responsible bidder in order to gain a price or any other
advantage.
• Purchasing employees will not attempt to influence a supplier by leaving copies of bids,
or other confidential correspondence, where a supplier may see them.
• Purchasing employees will not allow a supplier to have information on a competitor's
quotation or allow a supplier to re -quote.
• Purchasing employees will not allow personal preference to enter into the supplier selection
process.
• Purchasing employees will not lie or mislead a salesperson in a negotiation.
• Interpretations regarding ethics may consider intent.
IV. Basic Guidelines
The following guidelines should be adhered to ensuring the prompt purchase of supplies and
equipment, and facilitating the efficient operation of the accounts payable process. Pursuant
to Section 151.309 of the Texas Tax Code, the City is a governmental entity and is not subject to
the Sales and Use tax. No Sales and Use tax shall be paid by the City. Purchasing employees
shall provide the City's Texas Sales and Use Tax Exemption Certification to the vendor to prevent
Sales and Use tax from being charged.
Pursuant to Local Government Code Section 176.006, a vendor shall file a completed conflict of
interest questionnaire if the vendor has a business relationship with the City and either 1) has an
employment or business relationship with an officer of the City or a family member of an officer;
has given an officer of the City , or a family member of an officer, one or more gifts with an
City of West University Place
Purchasing Policy March 22, 2021
aggregate value specified in Section 176.003, Local Government Code; or has a family relationship
with an officer of the City, all as defined by Section 176.001, Local Government Code.
Purchasing Requirements Based on the Amount of Purchase
*Only for emergency purchases
1. Purchases of materials with a cost of $50 or less may be made with petty cash or with the
procurement card. Fifty dollars ($50) is the maximum dollar value for any one purchase from
petty cash. Exceptions not to exceed $100 may be approved by the Finance Director or
designee. Any exception must be noted on the receipt or attached documentation explaining
the reason for the exception.
2. Purchases of $3,000 or less but in excess of $50 may be made without a purchase order
(PO) or with a procurement card. Emergency purchases (as defined in Emergencies
Section VI) in excess of $50 but not over $50,000, may be made without a PO or with a
procurement card if within the assigned limits for the purchaser. For annual contracts, a
purchase order is required.
3. Purchases of materials or services with a cost in excess of $3,000 may be made with a
purchase order (PO) or procurement card within the assigned limits for the purchaser. A
purchase requisition with the quote information shall be entered into the financial
management software. The source documentation for the quotes shall be uploaded and
attached to the requisition in the financial management software.
A purchase order (PO) must be issued by the Finance Department before any merchandise
can be ordered or service can be performed. After a PO is issued by the Finance Department,
the respective Department may place the order with the vendor. PDFs of the PO may be
obtained in the Purchase Order section of the financial management software. These PDFs
can be e-mailed to the vendor.
4. For expenditures of more than $3,000 but less than $50,000, the City must contact at least
two historically underutilized businesses (HUB) on a rotating basis. Local Government
Code, Section 252.0215. A list of these businesses is available from the Texas Comptroller
of Public Accounts at www. window.state.tx.us/procurement. Additionally, the City of
HUB
Required to be
Council
Petty
Procurement
Requisition/PO
Purchase Amount
Contract
Advertised?
approval of
Cash?
Card?
Needed?
Required?
Contract?
< $50
No
No
No
Yes
Yes
No
>$50, <$1,000
No
No
No
No
Yes
No
>$1,000
No
No
No
No
Yes, within
No
P -card limits
>$3,000' <$50,000
Yes
No
No
No
Yes, within
Yes
P -card limits*
>$50,000
No
Yes
Yes
No
No
Yes
*Only for emergency purchases
1. Purchases of materials with a cost of $50 or less may be made with petty cash or with the
procurement card. Fifty dollars ($50) is the maximum dollar value for any one purchase from
petty cash. Exceptions not to exceed $100 may be approved by the Finance Director or
designee. Any exception must be noted on the receipt or attached documentation explaining
the reason for the exception.
2. Purchases of $3,000 or less but in excess of $50 may be made without a purchase order
(PO) or with a procurement card. Emergency purchases (as defined in Emergencies
Section VI) in excess of $50 but not over $50,000, may be made without a PO or with a
procurement card if within the assigned limits for the purchaser. For annual contracts, a
purchase order is required.
3. Purchases of materials or services with a cost in excess of $3,000 may be made with a
purchase order (PO) or procurement card within the assigned limits for the purchaser. A
purchase requisition with the quote information shall be entered into the financial
management software. The source documentation for the quotes shall be uploaded and
attached to the requisition in the financial management software.
A purchase order (PO) must be issued by the Finance Department before any merchandise
can be ordered or service can be performed. After a PO is issued by the Finance Department,
the respective Department may place the order with the vendor. PDFs of the PO may be
obtained in the Purchase Order section of the financial management software. These PDFs
can be e-mailed to the vendor.
4. For expenditures of more than $3,000 but less than $50,000, the City must contact at least
two historically underutilized businesses (HUB) on a rotating basis. Local Government
Code, Section 252.0215. A list of these businesses is available from the Texas Comptroller
of Public Accounts at www. window.state.tx.us/procurement. Additionally, the City of
City of West University Place
March 22, 2021
Houston website includes a list of local HUBS in the MWDBE/SBE Directory on the
Business Menu https:Hhouston.mwdbe.com/FrontEnd/VendorSearchPublic.asp. If either list
fails to identify a HUB in Harris County, the City is exempt from this requirement. Further,
when making a purchase through one of the procurement programs listed above, additional
quotes are not required.
5. All purchases over $50,000 shall be made by sealed formal bids (unless there is an
exception) and presented to the City Council for approval.
Pursuant to Government Code Section 2252.908, before entering into a contract with the City,
a business entity, other than a publicly traded business entity or its wholly owned subsidiary,
must complete a Certificate of Interested Parties (Form 1295) and print a copy of the
completed form, which will include a certification of filing that will contain a unique
certification number. The unique certification number to be used should be identified in the
Request for Qualifications (RFQ), Request for Proposal (RFP), or Request for Bid (RFB).
The business entity must sign the printed copy of the form and have the form notarized. The
completed Form 1295 with the certification of filing must be filed with the City.
The City must notify the Texas Ethics Commission, using the Commission's filing
application, of the receipt of the filed Form 1295 with the certification of filing not later than
the 30th day after the date the contract binds all parties to the contract. The Commission will
post the completed Form 1295 to its website within seven business days after receiving notice
from the City.
6. All contracts for services that have an annual fee payable one time, quarterly or monthly shall
be entered on a single requisition for the 12 -month period of January 1 through December 31,
the City's fiscal year. The original executed contract shall be attached to the requisition in
the financial management software and/or on file with the City Secretary's office, to be
maintained electronically in Laserfiche. Those filed in Laserfiche should include the
requisition comment "Docs in Laserfiche".
Contracts for services for which a final fiscal year cost is not easily determined shall be
entered on a single requisition for the 12 -month period of January 1 through December 31.
A reasonable estimate shall be made by the Department for the total amount needed. The
requisition comments should include `Blanket PO" to signal the Finance Department to
ensure the blanket PO selector field is marked on the purchase order. Changes shall be made
to the PO as deemed necessary after the Finance Department receives a written request from
the originating department.
7. Any expenditure outside these procedures will be considered an unauthorized, personal
purchase. The person making this purchase may be held liable for payment of such purchase
and subject to the City's disciplinary procedures.
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March 22, 2021
V. Exemptions from Competitive Bidding
Some of the most commonly used exemptions from competitive bidding are listed below. Refer
to Local Government Code Section 252.022 for a more complete list of general exemptions
allowed.
Emergency Purchases — Competitive bids and advertising for all bids shall be required,
except in the case of an emergency. The Finance Director or City Manager shall report
to Council any emergency purchases $50,000 or more as soon as possible.
Emergencies are defined in Section VI.
Cooperative Purchases — Purchases through a cooperative purchasing program that has
complied with the State's competitive bidding requirements are exempt from the City's
competitive bidding requirements.
Sole Source Purchases — Purchases available from only one supplier or manufacturer are
exempt from competitive bidding requirements. The Department declaring a sole source
purchase may be required to certify that other reasonable sources of supply do not exist.
Some sole source items might include:
a. Items that are patented, copyrighted, secret processes, or natural monopolies;
b. Films, manuscripts, or books;
c. Gas, water, and other utility services;
d. Captive replacement parts or components for equipment;
e. Books, papers, and other library materials for a public library that are available only
from the persons holding exclusive distribution rights to the materials; and
f. Management services provided by a nonprofit organization to a municipal
museum, park, zoo, or other facility to which the organization has provided
significant financial or other benefits.
4. Personal, Professional and Planning Services
a. Procurements for personal, professional, or planning services are exempt from competitive
bidding requirements. Local Government Code, Section 252.022(a)(4).
b. The Request for Proposal (RFP) process is encouraged as time and the situation permits.
c. The selection of professional services must be made on the basis of demonstrated
competence and qualifications for a fair and reasonable price. Professional fees under the
contract must be consistent with and not higher than the recommended practices and fees
published by the applicable professional associations; and may not exceed any maximum
provided by law. Professional services that are covered:
a. Accounting;
b. Architecture, including landscaping;
c. Land surveying;
d. Medicine;
e. Optometry;
f. Professional engineering;
g. Real Estate appraising; and
h. Professional nursing.
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Purchasing Policy March 22, 2021
5. Certain Construction Contracts — With respect to contracting and delivery of construction
projects, the City Council may determine that a selection method described in Government
Code Chapter 2269 provides a better value for the City.
VI. Emergencies
For purposes of this policy, an emergency is defined as:
1. A procurement made because of a public calamity that requires the immediate
appropriation of money to relieve the necessity of the municipality's residents or to
preserve the property of the municipality; or
2. A procurement necessary to preserve or protect the public health or safety of the
municipality's residents.
Emergencies between $3,000 and $50,000 that occur when three (3) competitive bids cannot be
received and a purchase order (PO) cannot be issued, must be declared an "Emergency" by the
Department Director. In this situation a purchase can be made without an advance purchase order
so that the emergency can be remedied. The department with the emergency must notify the
City Manager and Finance Director of the occurrence as soon as possible and no later than the
next regular working day. The Finance Department will then issue a PO for the occurrence upon
receipt of documentation of the purchase and the qualifying emergency.
Emergencies over $50,000 that occur when three (3) competitive bids cannot be received and a PO
cannot be issued, must be reported to the City Council no later than its next regular meeting.
VII. Invoices
An invoice is an itemization by the supplier of merchandise purchased or services provided. Invoices
generally contain the same information that is on the purchase order (PO). Vendors are to submit
invoices as follows:
City of West University Place
Attn: Accounts Payable
3800 University Blvd.
West University Place, TX 77005
E-mail: accountspayable(oDwestutx. og_v
All invoices shall be sent directly to Accounts Payable by the supplier. It is the responsibility of the
applicable department to ensure that the vendor sends the invoice directly to Accounts Payable by
utilizing the "Bill to" address. The "Sold to" address should indicate the department or person to
which goods or services were sold.
VIII. Credit Memo
If a purchase order has been issued, a credit memo from the supplier shall be issued on goods
returned to the supplier by the user departments. The user department should submit a written
request for a change order to the Finance Department, noting the goods returned, and those
received in exchange where applicable. The credit memo from the supplier will be entered into the
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City of West University Place
Purchasing Policy March 22, 2021
financial management system to facilitate an electronic record of the credit on the returned goods.
The system will apply the credit when future purchases are made with that supplier. After the
department has verified that purchases will no longer be made with that vendor, Finance will
contact the supplier to remit payment for any remaining credit balances.
Exchange for goods not listed on, or adding items to, the purchase order (PO) is not permitted.
A written request for a change order is required to be submitted to the Finance Department.
IX. Procurement Cards
This policy establishes the procedures for procurement card use. The procurement card is
provided to City employees based on their need to purchase business related goods and services and
is provided to employees solely for the City's convenience. The card is not an entitlement nor
reflective of title or position and may be revoked at any time. Personal charges shall not be
made on the card. Cardholders must comply with internal control procedures to protect the City's
assets. These procedures include keeping receipts, reviewing monthly statements and following
proper security measures. All related purchasing policies and procedures must be followed when
using the procurement card.
1. Procurement Card Definitions
Department Director — Includes the City Manager, City Secretary, Public Works Director,
Finance Director, Police Chief, Fire Chief, Human Resources Director, Information
Technology Director, and Parks and Recreation Director
Division Manager — Includes all other Managers not listed as a Department Director
Program Administrator — Finance Department staff designated by the Finance Director
Note: The hierarchy established by these definitions and the use of these titles within this
policy is not intended to mirror the nomenclature used in the career progression program.
2. Procedures
Card Issuance — A card will be issued to a City employee upon the Finance Department's
receipt of a written request or approval from the applicable Department Director. An approved
individual will receive the card after signing a Procurement Cardholder Agreement Form
(Appendix C) acknowledging receipt of this Purchasing Policy and the assigned credit card.
Once an employee receives his/her card, it shall be signed and kept in a secure place. The
employee whose name appears on a card (the "Cardholder") is the only person entitled to use
the card. That person is responsible for all charges made with the card. Improper use of the
card may be considered misappropriation of City funds, which may result in disciplinary action,
up to and including termination. Although the card is issued to the employee, it remains City
property and may be rescinded at any time. A Cardholder must surrender his/her card
upon request and/or termination of employment. The employee should use the card only for
the types of purchases established by this policy.
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City of West University Place
March 22, 2021
Procurement Card Purchases — The procurement card program does not circumvent the
City's purchasing policies and procedures. Instead, it is designed to streamline smaller
purchases that are made directly with vendors.
The procurement card is NOT to be used for the following commodities and services:
• Alcoholic beverages;
• Capital equipment;
• Cash advances/travelers checks;
• Personal items;
• Split Purchases which are multiple purchases of less than $3,000 from a single
vendor for similar purchases adding up to more than $3,000;
• Items available through established annual contracts;
• Fuel, fluids and repair for personal vehicles;
• Computer hardware & peripherals not coordinated with the Information Technology
Management Department (IT); or
• Software or software subscriptions not coordinated with IT.
Qualified card purchases include, but are not limited to, the following:
• Advertising;
• Freight and shipping charges (FedEx, UPS, etc.);
• Subscriptions (not IT related), books;
• Seminars, training, memberships, registration, travel (All travel related
expenses must comply with the City's Travel Policy);
• Catering and delivery services;
• Goods and Services not exceeding $3,000; and
• Payment for city utilities (i.e., electricity, natural gas, cable, internet). This
method of payment for utilities shall be coordinated with and set up by the
Finance Department.
Each employee's card has been assigned an individual credit limit based on the
established spending limits table shown below. If that limit is not sufficient to
accommodate monthly requirements, the employee may request an increase through their
Department Director. Written authorization by a Department Director is required before
a Program Administrator will change the credit limit, including temporary increases to the
credit limit.
The following is a table of the spending limit levels established by this policy.
Level
Monthly Card
Limit
Single
Transaction
Limit
A
$10,000
$3,000
B
$7,500
$3,000
C
$5,000
$1,000
D
$1,500
$500
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City of West University Place
Purchasing Policy March 22, 2021
Certain merchants are blocked from the program, and purchases through them will be declined.
If the employee feels that his/her purchase has been mistakenly declined, the employee should
contact a Program Administrator.
Receipt of and Return of Goods & Services — The Cardholder is responsible for ensuring receipt
of goods and services and shall follow-up with the vendor to resolve any delivery problems,
discrepancies or damaged goods.
Items should be returned directly to the vendor by whichever means the vendor requires. The
Cardholder is responsible for seeing that proper credit is posted to his or her procurement card
account for any returned items.
Proof of Purchase Documentation and Reconciliation — With the authority to purchase specific
goods and services comes the responsibility to maintain adequate documentation at the
source of the transaction. Documentation must support the legitimate business purpose of
all transactions made with the procurement card. Examples of supporting documentation
include receipts, packing slips, and copies of order forms or applications.
Cardholders or a Department Director designee must create an invoice in the financial
management software and attach supporting documentation, assigning charges to the
appropriate account number(s), project code(s), and work order/job number(s) if applicable.
The invoice date shall be the statement date for the transactions. The vendor invoice number
format shall be the statement date (mmddyyyy) and the Cardholder's last name (i.e.,
04052020smith). The vendor invoice number format may be changed as determined by the
Finance Department.
If entire card account numbers are printed on any receipts, the Cardholders are required to
conceal the first twelve (12) digits of their account number, leaving the last four (4) digits
exposed, prior to turning in their purchase documentation.
Cardholders will receive a monthly statement after each billing cycle ends. These statements
identify all procurement card purchases and the total dollar amount charged during the billing
cycle. Cardholders are required to review their statements for accuracy and to ensure that all
the goods and services have been received for which there is a charge. If Cardholders wish
to keep their statements, they must keep them secure. If Cardholders wish to discard their
statements, they must do so properly by shredding the documents. Please do not forward
Cardholder statements to Finance.
Discrepancies and Dispute Procedures — The Cardholder is responsible for following up
with a vendor for any erroneous charges, disputed items, or returns. The Cardholder should
contact the vendor first to resolve any outstanding issues. However, a Cardholder may
dispute a charge that appears on their account statement. Disputed charges can result from
failure to receive goods or services, fraud or misuse, altered charges, defective merchandise,
incorrect amounts, duplicate charges, credits not processed, etc.
Remember: by law, vendors are not permitted to bill a credit card for purchases until the items
have been shipped.
Finance — Each Department is responsible for ensuring the correct account number, project
code, work order number and job number is entered for each transaction. If the Cardholder
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City of West University Place
Purchasing Policy March 22, 2021
does not have authorized financial management system access to the account number to which
the charge has been authorized, the Cardholder is to contact the Finance Director or Treasurer
to change the account number on the financial system invoice.
Lost, Stolen or Compromised Procurement Cards — It is the responsibility of the Cardholder
to immediately report a lost, stolen or compromised procurement card. The City is liable for
all transactions if the card is not immediately reported to the card issuer. A Cardholder must
report, in writing, a lost or stolen procurement card to a Program Administrator at the time of
the occurrence. The Program Administrator will request a replacement card from the card
issuer.
Misuse of the Procurement Card — The procurement card reflects the City's trust in the
employee and his/her empowerment as a responsible employee of the City to safeguard and
protect its assets. As a Cardholder, each employee assumes the responsibility for the
protection and proper use of the procurement card, including timely reconciliation.
The following are a few examples of "Misuse" of the procurement card; this list is not
exhaustive, and is included for illustrative purposes only:
• Personal Misuse
• Purchases using the card for the sole benefit of the employee; clothing and food not
authorized by the employee's department;
• Assignment, transfer, or "loaning" of an individual card to another employee or
person;
• Failure to submit receipts for all purchases on a timely basis; or
• Use of a procurement card by a suspended or terminated employee.
Administrative Misuse
• Lack of proper and timely reconciliation of individual Cardholder account;
• Card use in direct violation of acquisition goals (use of the procurement card for
commodities available, through established annual contracts or local suppliers who
provide the best value);
• Failure to comply with State code requirements to notify Historically
Underutilized Businesses; or
• Failure to comply with the City's Insurance Policy and the State code
requirements for obtaining insurance certificates for public works contracts.
Allegations of misuse of the procurement card will be investigated promptly. The
following procedures shall be observed:
• Via e-mail, the Cardholder, Supervisor and the Division Manager will be
advised of any instances of non-compliance as they occur. The Division
Manager is required to immediately respond to the email and provide
assurances that the matter has been properly addressed.
• If the Finance Department does not receive a response from the Division
Manager or designee within three (3) business days, an e-mail will be sent to
the Cardholder's Manager with a CC to the Department Director.
• If a response is not received within three (3) business days of the second e-
mail, an e-mail will be sent to the Department Director with a CC to the City
Manager.
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City of West University Place
Purchasing Policy March 22, 2021
Each employee should be aware that misuse of the procurement card may result in
disciplinary action, up to and including termination and criminal prosecution.
Procurement Card Audits — To ensure the continued success of the Procurement Card
Program, periodic audits will be performed by the Finance Department. The purpose of the
audits is to ensure that authorized policies and procedures are being adhered to by the
Cardholders and their respective departments.
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City of West University Place
Purchasing Policy
Appendix A
Definitions
March 22, 2021
The following definitions are intended to assist the reader in understanding the language used
throughout this policy. When using this policy, if there is a word or words that are not clearly
understood and if is not defined in this section, please do not hesitate to contact the Finance Department
for clarification and/or interpretation.
Award — Approval by the City Council, City Manager, Finance Director or their designee, under
whose authority a purchase order is issued.
Best Value — If the sealed competitive bidding requirement applies to the contract for goods or
services, the contract may be awarded to the lowest responsible bidder or to the bidder -who provides
goods or services at the best value for the City. In determining the best value for the City, the City
may consider:
• the purchase price;
• the reputation of the bidder and of the bidder's goods or services;
• the quality of the bidder's goods or services;
• the extent to which the goods or services meet the City's needs;
• the bidder's past relationship with the City;
• the impact on the ability of the City to comply with laws and rules relating to contracting
with historically underutilized businesses and non-profit organizations employing
persons with disabilities;
• the total -long-term cost to the City to acquire the bidder's goods or services, and
• any other relevant criteria specifically listed in the request for bids or proposals.
If awarding the contract based on the best value, the bid documents must specify the relative
importance of price and the other evaluation factors.
Bid Advertisement — A public notice put in a newspaper of general circulation, containing
information about a Notice to Bidders, Request for Proposal or Request for Qualifications. Bid,
RFP, and RFQ notices may also be posted electronically on the City website at www.westutx.gov.
Bid List — A list of vendors who have indicated in writing an interest in submitting bids for
particular categories of goods and services. Due to decentralized purchasing, the City currently does
not maintain a bid list.
BONDS
Bid Bond — A bond required of a contractor that ensures that the contractor will enter into the
contract for which he has submitted a formal written bid and/or proposal.
Payment Bond — A bond required that ensures that all suppliers and subcontractors of the
contractor will be paid for work and/or material supplied in the course of the contract.
Chapter 2253.021 (a)(2)(B) of the Government Code requires a payment bond for any public
work contract that exceeds $50,000.
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City of West University Place
Purchasing Policy
March 22, 2021
Performance ,Bond — A bond required that guarantees vendor performance during the
execution of the contract. Chapter 2253.021 (a)(1) of the Government Code requires a
performance bond for any public work contract that exceeds $100,000.
Capital Equipment — Generally, property with a useful life of two or more years and a purchase
cost of at least $5,000.
Commodity Code or Merchant Category Code (MCC) — A specific group of goods or services
categorized into distinct classes that have been assigned a numerical reference number within the
purchasing and inventory system.
Competitive Bidding — The process wherein a vendor openly competes with other vendors, through
a formal or informal process, for the City's business.
Component Purchases — Purchases of component parts, which in normal purchasing practices
would be purchased in one purchase. See Local Government Code, Section 252.062 (separate,
sequential, component purchases prohibited).
Consulting Services — The service of studying or advising the City under a contract that does not
involve the traditional relationship of employer and employee.
Contract — An agreement between the City and a supplier to furnish supplies and/or services over
a designated period of time, during which purchases are made of the commodity specified. As deemed
necessary, the City Attorney will review contracts prior to execution.
Contractor — The successful vendor(s) awarded a contract by the City.
Cooperative Purchase — A procurement conducted by, or on behalf of, more than one public
procurement unit, or by a public procurement unit with an external procurement unit. Examples
include, but are not limited to Buy Board, GSA Cooperative Purchasing Program, Texas Department
of Information Resources (DIR), Texas Procurement & Support Services (TPASS) and TxSmartBuy.
See Government Code, Chapter 791 and Local Government Code, Section 252.022(a)(12).
Delivery Date — The date by which goods or services are needed.
Department Director — Includes the City Manager, City Secretary, Public Works Director, Finance
Director, Police Chief, Fire Chief, Human Resources Director, Information Technology Director,
and Parks and Recreation Director
Emergency — Purchases that are made to meet a critical, unforeseen need of the City, where the
City's ability to serve the public would be impaired if the purchase is not made immediately.
Emergency purchases are exempt from standard purchasing procedures and must qualify for
exemption as outlined in Local Government Code 252.022 — General Exemptions.
Encumbrance — The process wherein the City reserves funds for the purchase of supplies, goods,
services, and equipment in one budgetary -accounting period, and pays for the purchase in another
budgetary -accounting period.
Expedite — When the purchasing process is accelerated through normal procedures in order to
prevent work stoppage or loss of government's money.
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City of West University Place
Purchasing Policy March 22, 2021
FOB Destination Point — Free on Board (FOB); the vendor pays freight charges to the
destination; title to goods passes to buyer at his receiving dock; freight claims must be filed and
handled by the seller.
FOB Shipping Point — Free on Board (FOB); shipment becomes 'collect' from seller's shipping dock;
freight charges may be prepaid and added to the invoice; title to goods passes to buyer at the shipping
dock of seller; freight claims must be filed and handled by buyer.
Goods — A generic term that includes all types of property to be purchased by the City;
equipment, supplies, materials, component and repair parts.
Lowest Responsible Bidder — This is the vendor who offers the lowest bid which meets all the
specifications, requirements, terms and conditions of the Invitation. to Bid. It is expressly
understood that the lowest responsible bid includes any related costs to the City, using a total cost
concept. The term "responsible" refers to the financial and practical ability of the bidder to perform
the contract. The term is also used to refer to the experience or safety record of the vendor. See
Local Government Code, Section 252.0435 (Safety Record of Bidder Considered).
Professional Services — Services rendered by a person or firm that requires years of education and
service for one to attain competence or that calls for high order of intelligence, skill, and learning as
described in Government Code 2254.002 (Mental or intellectual skills, rather than physical or
manual).
Purchase — An act that includes the acquisition of goods or services, to include the act of leasing
personal or real property. Separate, sequential, and component purchases shall be treated as a single
purchase. See Local Government Code, Section 252.062 (separate, sequential, component purchases
prohibited).
Purchase Order — A formal, binding, legal agreement issued by the City. A purchase order is
requested by a departmental requisition that details the merchandise or services required. When
accepted by a vendor without qualifications within a specified time period, the agreement becomes
a contract. A Purchase Order grants the vendor the authority to deliver the goods or services and
invoice for the same. It is the City's commitment to accept the goods or services and pay for them at
the agreed price.
Request for Bid (RFB) — A formal written document that requests from bidders a firm price and
delivery details for specified merchandise listed on a purchase requisition. An Invitation to Bid is
required when the anticipated level of expenditure will be greater than $50,000. It may also be used
if the Finance Director, the Department Director, or the City Manager feels it is justified.
Request for Proposal (RFP) — A formal written document requesting that potential vendors make
an offer for services to the City. The RFP method of procurement may be used for goods or services
including high technology and insurance when it is determined that the proposal process provides
the best value to the City. When the RFP is used for the selection of professional services as
allowed in the Local Government Code 252.022(a)(4), the City shall comply with Government Code
2254.003 in the procurement of these services. The City shall not award a contract for these
professional services based on competitive bids but shall make the selection and award on the basis
of demonstrated competence and qualifications for a fair and reasonable price
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City of West University Place
March 22, 2021
Request for Qualifications (RFQ) — A formal written document used when soliciting providers of
architectural, engineering, land surveying services, or other professional or personal services.
The City shall comply with Government Code 2254.004 in the procurement of these services, if
applicable. The City must first select the most highly qualified provider of those services on the
basis of demonstrated competence and qualifications. After a firm has been selected based on
qualifications and experience, then a fair and reasonable fee shall be negotiated. If a satisfactory
contract cannot be negotiated with the most highly qualified provider of the services, the City shall
formally end negotiations with that firm and select the next most highly qualified firm and begin
negotiations with that provider for a fair and reasonable price.
Requisition — The source document for all purchasing activity. This form communicates a
department's needs to the Finance Department and authorizes the Finance Department to enter into
a contractual relationship for delivery of the goods and/or services. A requisition is for
communicating internal requirements and should not be used by the departments for the order and
delivery of goods and/or services.
Separate or Split Purchases — Purchases made separately of items that in normal purchasing
practices would be purchased in one purchase. See Local Government Code, Section 252.062
(separate, sequential, component purchases prohibited).
Sequential Purchases — Purchases made over a period of time for items that in normal
purchasing practices would be purchased in one purchase. See Local Government Code, Section
252.062 (separate, sequential, component purchases prohibited).
Services — A generic term to include all work or labor performed for the City on an independent
contractor basis, including maintenance, construction, manual, clerical or professional services.
Sole Source — Purchases of goods or services that are available from only one supplier. There may
be just one vendor because of patents or copyrights, or simply because the vendor is the only one
that supplies the good or service. These purchases are exempt from the standard bidding
requirement and must qualify as outlined in Local Government Code 252.022.
Specifications — Statements containing a detailed description of the terms of the contract, as well as
specific details for the goods and/or services. The details or specifications should be descriptive,
but not restrictive.
State Contract Purchase — An item available through the State of Texas Procurement & Support
Services (TPASS). The State has publicly advertised and received qualified bids for specific items.
These appear on a listing periodically published by the State. The City has elected to participate in
the cooperative purchasing program for governmental subdivisions and other state agencies. See
Cooperative Purchase.
Surplus — Item(s) no longer needed by a department, regardless of its value or condition.
Vendor — A generic term applied to individuals and companies alike, who provide goods and services
to the City.
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City of West University Place
Purchasing Policy
Appendix B
March 22, 2021
City of West University Place Cardholder Agreement
Participating Employee Acknowledgment of Responsibilities
By participating in the City of West University Place's procurement card program as a
cardholder, you assume responsibilities pertaining to the operation and administration of the
procurement card program as outlined in the City's Purchasing Policy.
You acknowledge receipt of your assigned credit card and the City's Purchasing Policy.
By signing below, I acknowledge that I have read and agree to the terms and conditions of
this document. I certify that as a participating Cardholder of the City of West University
Place procurement card program, I understand and assume the responsibilities listed above.
Employee Signature
Name (Print)
Department Director Signature
Name (Print)
Cardholder and Department Director:
Title
Date
Title
Date
Retain one copy each and forward original to the Finance Department — Financial Analyst.
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