City of Emeryville
CALIFORNIA
ADMINISTRATIVE INSTRUCTION
A.I. NUMBER: 605
SUBJECT: Purchasing and Accounts Payable Procedures
REFERENCE: Municipal Code 3.6.04(e); Governmental Accounting, Auditing and Financial Reporting; California Uniform Public Construction Cost Accounting Commission; Federal Uniform Guidance
SUPERSEDES: Al 106 (dated January 12, 1988); Al 402 (dated June 26, 1989); Al 104 (dated January 22, 1990); Al 605 (dated November 1, 1991); Al 605 (dated October 25, 2016)
DATE: September 19, 2019
TABLE OF CONTENTS
1. Purpose.
2. Ethics .. .2
3. Policy 3
3.1 Purchasing Authority 3
3.2 Approval Authority
3.3 Monitoring Expenditures / Change Order Requests.
3.4 Categories Requiring Purchase Orders. 5
3.5 Contracts and Professional Services Contracts.. 5
3.6 Change Orders 5
3.7 Purchases NOT Requiring Purchase Orders..
3.8 Grant Funded Expenditures 6
4. The Bid Process 6
4.1 When Formal Bidding Is Required ......6
4.1.1 Public Works and Maintenance Projects.. . 6
4.1.2 Consultant / Professional Services (excluding legal) and Other General Purchases. 7
4.2 Procedures for Formally Advertising Bids. . 8
4.3 Sole Source Justification.. .10
5. Purchase Order Procedures. 11
5.1 Responsibility. .11
5.2 Submission Guidelines.. ..11
5.3 Emergency Purchase Orders 12
5.4 Finance Department Purchase Order Process 13
Administrative Instruction No. 605
Purchasing & Accounts Payable Procedures
September 19, 2019
6. Claim Voucher Processing. 13
6.1 Preparation of Claim Vouchers..... .13
6.2 Timetable for Submitting and Processing Claim Vouchers. ..14
7. Petty Cash Processing ..14
7.1 Reimbursements .. 15
7.2 Reconciliation and Replenishment ...15
8. Cal-Card Purchases. ..15
9. Out of State Travel Error! Bookmark not defined.
10. Attachments: ..16
1. 2. PURPOSE
The purpose of this Administrative Instruction is to provide the City of Emeryville a means of assuring continuity and uniformity in its purchasing operation, to establish policy guidelines for the cost effective and efficient purchase of services, supplies, materials, and equipment, to define the responsibilities for such purchases, and to implement the City's Purchasing Ordinance, Chapter 6 of Title 3 of the Emeryville Municipal Code.
These guidelines are designed to provide financial oversight of the acquisition of goods and services, and monitoring vendors with whom the City conducts business. They are not intended to address every issue, exception, or contingency that may arise in the course of purchasing activities. The basic standard that should always prevail is to exercise good judgment in the use and stewardship of City resources, including keeping within the budget authorized by the City Council. This Administrative Instruction also establishes purchasing guidelines for competitive bidding of goods and services.
3. ETHICS
The purpose of this section is to provide a general code of conduct for all personnel who may be engaged in the City's purchasing function. It is essential that all personnel involved in the procurement process conduct themselves in a manner that maintains impartiality and complete objectivity, to meet the continuing scrutiny of suppliers and the public. In dealings with the business community, it is necessary to exercise a strict rule of personal conduct to ensure that business relations are not compromised or even have the appearance of being compromised. The City's reputation for fairness and integrity in dealing with suppliers and others must always be maintained.
The following are the City's standards in ethics for purchasing:
A. To buy on the basis of value, recognizing that value represents a combination of quality, service and price which assures the greatest economy to the City.
Administrative Instruction No. 605
Purchasing & Accounts Payable Procedures
September 19, 2019
B. To recognize that permanent business relationships should be established on the basis of honesty and fair dealings.
C. To be courteous and considerate in all City dealings.
D. To avoid statements that might injure or discredit legitimate suppliers and to avoid disclosure of confidential information that might give an unfair advantage in a competitive business transaction.
E. To adjust claims and settle disputes on the basis of facts and fairness.
No City employee shall participate in a purchase if the purchase involves purchasing goods, services or equipment from the City employee or the City employee's spouse, partner, or family member.
4. POLICY
These policies primarily cover items that require a Purchase Order (P.O.) and involve the use of Claim Vouchers. Purchase orders provide a mechanism for encumbering budgeted funds and ensure that the purchase of goods is approved by the appropriate department manager or his/her designee.
4.1 Purchasing Authority
The City Manager is the official Purchasing Officer for the City of Emeryville and for the City of Emeryville as Successor Agency for the Emeryville Redevelopment Agency (RDA), the Emeryville Public Financing Authority, the Management of Emeryville Services Authority, and the Emeryville Community Development Commission (collectively, "the City"). The City Manager may delegate purchasing authority to a Department Head.
Department Heads are responsible for reviewing, planning, and authorizing department needs, subject to the City Manager's review and approval.
Officers or employees of the City are prohibited from contracting for goods and/or services, supplies, materials, equipment contrary to the provisions of Chapter 3-6.09 of the City of Emeryville's Municipal Code. Such purchase orders or contracts shall be void.
4.2 Approval Authority
A. Purchase Order Requisitions (Exhibit B) must be signed by the Department Head or designee regardless of the purchase level. Following are authority levels and dollar thresholds:
Administrative Instruction No. 605
Purchasing & Accounts Payable Procedures
September 19, 2019
Department Head or Designee per vendor per fiscal year $0 - $5,000 City Manager per vendor per fiscal year
(approves all Purchase Orders over $5,000) $5,000 - $45,000 City Council / Agency Body Resolution Over $45,000
B. The practice of stringing or splitting of P.O.'s to circumvent the approval levels and dollar thresholds is prohibited.
C. Designees are recognized once an Authorized Designee memo is received by the Finance Department (Exhibit C). This memo is completed by the Department Head to authorize the designee, provide a sample signature of designee and a list of what the designee may approve.
D. P.O.'s that are split between departments, or if the ordering department and the department being charged are different, the P.O. shall be signed and approved by both Department Heads.
E. Capital outlay items which have a capitalization dollar threshold of $5,000 will by default require City Manager approval.
F. Computer-related and telecommunication equipment and license purchases shall also be approved by the Information Technology Manager or their designee.
G. All cost recovery account, retention and deposit refunds must be approved by a finance manager/designee.
4.3 Monitoring Expenditures / Change Order Requests
Departments are responsible for tracking charges against a purchase order. If the funding is exhausted, or the scope of the service changes, the department must prepare and submit a Change Order request (Exhibit D). Please note that change in the scope of services may necessitate an amendment to the PSC or other original contract, and such amendment is separate and distinct from a Change Order.
The Change Order request shall be prepared as soon as the department is aware that the funds are exhausted or the scope of the service has changed. The department should act in an expeditious manner so that payment to the vendor is not delayed. Refer to the City's Purchasing Procedures below for detailed instructions on the preparation of Change Orders.
Administrative Instruction No. 605
Purchasing & Accounts Payable Procedures
September 19, 2019
4.4 Categories Requiring Purchase Orders
A. Supplies and services over $5,000
B. All contracts and Professional Service Contracts (PSC's) C. All capital outlay purchases (equipment costing $5,000 or more)
4.5 Contracts and Professional Services Contracts
After the contract has been approved and signed by both the City Attorney and the vendor, the P.O. Requisition should be prepared and presented to the City Manager along with the contract for final approval. A copy of the signed contract or agreement (along with the P.O. requisition, insurance certificate plus endorsement, W-9, business license, and resolution if applicable) must be submitted to Finance for P.O. processing.
4.6 Change Orders
P.O. Change Orders require the same documentation as P.O. Requisitions, except Change Orders are prepared using a manual form (per Exhibit D). The P.O. number shall remain the same and should be noted on the manual form. This is submitted to Finance for processing.
4.7 Purchases NOT Requiring Purchase Orders
1. Office supplies under $5,000
2. Professional membership dues and subscriptions
3. Conferences and meetings
4. Training expenditures
5. Travel costs, reimbursements, refunds
6. Utility bills (electricity, gas, water, garbage, fuel, telephone, etc.)
7. Rental payments (building rents, equipment rentals, etc.)
8. Real estate transactions and escrow transactions - approved by the City Council and/or Successor Agency. This includes First Time Homebuyers or other similar programs.
9. General administrative expenses such as taxes, insurance, fees, and legal bills.
Administrative Instruction No. 605
Purchasing & Accounts Payable Procedures
September 19, 2019
10. Contracts for Community Services Classes with recreational class instructors who are paid based on a percentage of class revenue, or a fixed compensation based upon the rate per class.
11. Professional Services Contracts (PSC's) that contain one-time purchases under $5,000 can be submitted with a Claim Voucher in lieu of a Purchase Order.
4.8 Grant Funded Expenditures
Any purchases made with federal, state or other grantor funds must be made in compliance with the funding agency's procurement policies as documented in the Grant Management Policy & Procedures A.I. 115 dated November 29, 2011 (or the revised A.l.).
Federal procurement is controlled both by the funding agency procurement policy as well as federal policy as expressed in 2 CFR Part 200 regarding Cost Principles. Please refer to Exhibit A regarding Uniform Guidance Procurement Standards. Any requirements in an executed grant agreement supersede any preferences or policies listed within this A.l.
5. THE BID PROCESS
Departments are encouraged to solicit bids for all purchases to ensure the City is obtaining competitive rates for its supplies, services, and equipment.
5.1 When Formal Bidding Is Required
5.1.1 Public Works and Maintenance Projects
Public Contract Code section (PCC) 20162 requires bidding of a "public project" if the public project exceeds $5,000. "Public project" is defined as: "a project for the erection, improvement, painting, or repair of public buildings and works; (b) work in or about streams, bays, waterfronts, embankments, or other work for protection against overflow; (C) street or sewer work except maintenance or repair; (d) furnishing supplies or materials for any such project, including maintenance or repair of streets or sewers." (PCC 20161.) However, the State adopted the "Uniform Public Construction Cost Accounting Act" (PCC 22000, et seq.) ("UPCCAA") to provide an alternate bidding procedure. (PCC 22001.) A public agency may elect to become subject to the UPCCAA when contracting for maintenance work or other work not falling within the definition of public project by adopting a resolution (PCC 22003). The UPCCAA defines public project, for the purposes of the UPCCAA, to include any of the following: "(1) construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any public owned, leased, or operated facility; (2) painting or repainting of any publicly owned, leased, or operated facility; (3) [omitted]." (PCC 22002(c)). Public project as defined by the UPCCAA does not include maintenance work, which includes all of the following: "(1) routine, recurring, and usual work for the preservation or protection of any publicly owned or publicly operated facility for its intended purposes; (2) minor painting; (3) resurfacing of streets and highways at less than one inch; (4) landscape maintenance,
Administrative Instruction No. 605
Purchasing & Accounts Payable Procedures
September 19, 2019
including mowing, watering, trimming, pruning, planting, replacement of plants, and servicing of irrigation and sprinkler systems; (5) [omitted]." (PCC 22002(d).) As of January 1, 2019, UPCCAA provides that public projects (as defined in UPCCAA 22002(c)) of $65,000 or less may be performed by the public agency's employees, negotiated contract or by purchase order, and that public projects (as defined in UPCCAA 22002(c)) of $200,000 may be let by informal procedures. The City elected to become subject to UPCCAA by adopting Resolution No. 03-46. When a public agency elects to become subject to the UPCCAA, the public agency must adopt a local ordinance regulating informal bidding procedures, and satisfying the requirements set forth in PCC 22034. The City Council adopted Ordinance No. 03-005, which is codified as Chapter 9 of Title 7 of the Emeryville Municipal Code.
Accordingly, public projects (as defined in PCC section 20161) of up to $5,000 may be procured with the following options:
1. The City may choose to use internal resources for the construction of the project;
2. The City may follow purchasing procedures applicable for non-Public Works procurements.
Under PCC Section 22032(a), public projects (as defined in PCC section 22002(c)) less than $60,000 may be procured with the following options:
1. The City may be performed by employees by force account; or
2. The City may follow informal bidding procedures as outlined in Chapter 9 of Title 7 of the Emeryville Municipal Code.
3. The City may follow purchasing procedures applicable for non-Public Works procurements to purchase via a negotiated contract.
Under PCC Section 22032(b), public projects (as defined in PCC section 22002(c)) less than $200,000 may be procured by following the informal bidding procedures as outlined Chapter 9 of Title 7 of the Emeryville Municipal Code.
Maintenance projects (as defined in PC section 22002(d)) are exempt from bidding requirements.
5.1.2 Consultant / Professional Services (excluding legal) and Other General Purchases
Consultant/Professional Services (excluding legal) and general purchases such as supplies, equipment and leases:
Administrative Instruction No. 605
Purchasing & Accounts Payable Procedures
September 19, 2019
1. For purchases up to $5,000 (cumulative amount of contract), there are no specific bidding requirements, but competitive bidding should be used when practical.
Departments may award the contract for purchase. For purchases greater than $5,000, and up to $45,000 (cumulative amount of contract), the Department must solicit three written quotations ("Informal Bidding Procedures") and submit an Addendum for Purchasing Supplies, Services and Equipment Form to the City Manager, with a recommendation for the award of the contract to the City Manager.
2. For purchases above $45,000, the Department formally advertises for sealed bids (Request for Qualifications or Proposals'). The Department submits the results of the proposals to the City Manager for assessment. The City Manager makes the recommendation for the award of the contract and submits to the City Council for approval. If it is anticipated that the same vendor will be providing the same services for several years, the project manager should consider entering into a multi-year contract. If the multi-year contract would exceed the City Manager's $45,000 threshold in authority to contract, then the Council must approve the multi- year contract. Contracts should not be limited to one year terms for the sole purpose of satisfying the City Manager's contracting authority.
5.2 Procedures for Formally Advertising Bids
When purchases and contracts for non-public works projects are required to be formally bid as set forth in this policy, the advertising of the bid shall adhere to the procedures set forth in this administrative policy in addition to the requirements imposed by State law.
1. The City Clerk shall publish the legal notice inviting bids twice, the first publication at least ten (10) days before the date of bid submittal. Prior City Council authorization is not required. Notice shall be published in newspaper of general circulation.
a. The notice inviting bids shall include a general description of the articles or services to be purchased, place where bid blanks and specifications may be secured, and the time and place for opening bids.
b. The Department Head shall approve all formal bid notices and bid forms prior to distribution.
2. The department making the purchase shall solicit bids from all responsible prospective suppliers whose names are on the bidder's list when such a list is available.
1 The City Clerk's Office maintains a template that may be used for a Request for Qualifications or Proposals.
Administrative Instruction No. 605
Purchasing & Accounts Payable Procedures
September 19, 2019
3. The solicitation of bids shall be posted on the City's website at least ten (10) days before the date of bid submittal.
4. All bids must be submitted to the City Clerk's office by the time established for submittal. Bids must be sealed and enclosed in an envelope marked "Bid Enclosed"
5. The report to Council on bid awards should include the tabulation of bids with a recommendation for the award of bid. If the project bid award is under $45,000 in value, the City Manager may award the bid at his or her discretion based on the tabulation of bids.
6. The awarding authority shall award the bid within sixty (60) days from bid submittal or as specified in the bid documents.
7. The awarding authority may, at its discretion, reject all bids presented and re- advertise for bids or have the work performed in accordance with the general laws of the State.
8. If two (2) or more bids received are for the same total amount or unit price, quality and service being equal, and if the public interest will not permit the delay of re- advertising for bids, the Council may accept the one it chooses or choose a bidder by lot.
9. Bidder's security may be required if considered necessary:
a. Bidders shall be entitled to the return of bid security after award of contract.
The City Clerk's office shall be responsible for retaining the bid security and returning it to the appropriate bidders after the bid opening. b. A successful bidder shall forfeit his bid security, however, upon refusal or failure to execute the contract within ten (10) days after notice of the award of the contract has been mailed.
C. The Council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder. d. If the Council awards the contract to the next lowest responsible bidder, the amount of the lowest responsible bidder's security shall be applied by the City to the difference between the low bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder.
Administrative Instruction No. 605
Purchasing & Accounts Payable Procedures
September 19, 2019
10. The City Manager shall have the authority to require a performance bond and/or labor and materials bond before entering a contract in such amount as determined necessary for the best interests of the City. The form and amount of required bonds shall be determined by the City Manager.
11. A file of formal bids shall be maintained in the City Clerk's office for a period of two years and be open for public inspection.
12. The department shall notify the successful bidder by forwarding a purchase order or other official notice.
13. In its discretion, the awarding authority may waive any informalities or minor irregularities in the bids.
14. If it is necessary to make changes in the notice to bidders or changes in specifications, an amendment, or addendum to the bid specifications shall be issued by the Department Head to all prospective bidders setting forth the changes.
15. Contracts with an on-going nature, or which provide services on an as-needed basis should be bid at least every five years.
5.3 Sole Source Justification
Exceptions to the bidding requirements as outlined above include:
1. The purchase is made through the Department of General Services of the State.
2. The purchase is combined with that of another public agency, provided such public agency followed the competitive bidding practices which comply with the legal requirements applicable to such agency.
3. The supplies, materials and equipment are only available from a single source.
4. For services, as waived by the awarding authority? for good cause.
5. An emergency.
6. A maintenance project as defined in Public Contract Code section 22002(d). 2 In applying this policy to a specific contract, as used herein, awarding authority refers to either the City Council or the City Manager, depending upon who awards the contract at issue.
Administrative Instruction No. 605
Purchasing & Accounts Payable Procedures
September 19, 2019
Compliance with this Al would defeat the purpose of this Al and Emeryville Municipal Code section 3-6.01 and result in procurement of services, supplies, materials, or equipment at a higher cost that was not commensurate with the quality needed.
If a sole source contract is being recommended, complete an Addendum for Purchasing Supplies, Services and Equipment Form explaining why the City requires the goods and/or services from the selected vendor. The Purchase Order Requisition shall be attached to the memo. Approval authority for purchases is as outlined in Section 4.2.
6. PURCHASE ORDER PROCEDURES
6.1 Responsibility
Purchase Order Requisitions are prepared by the department initiating the purchase. The department must ensure that all of the proper approvals and signatures relating to the purchase, required forms, and supporting documentation have been secured. As noted in Section 4.2, the practice of stringing or splitting of purchase requisitions to circumvent this Administrative Instruction is prohibited. The requisitioning department is responsible for submitting the necessary forms and supporting documentation to Finance in a timely manner to avoid delays in vendor payments. Following are submission guidelines, and the required forms.
6.2 Submission Guidelines
The requisitioning department must complete the Purchase Order Requisition form manually or by utilizing the City's financial software (preferred method). The following information is required to ensure the prompt and efficient processing of the purchase:
1. Vendor name and address (include vendor number if available)
2. Completed W-9 (for new vendors)
3. Item description and quantity
4. Cost for each item, and estimated shipping and taxes
5. Project number (if applicable)
6. Department/division(s) and accounts) to be charged
7. Specify if the purchase is standard or urgent (emergency purchase)
8. Urgent purchase requisitions must have a memo detailing the nature of the emergency
Administrative Instruction No. 605
Purchasing & Accounts Payable Procedures
September 19, 2019
9. Sole source or single source purchases require an Addendum for Purchasing Supplies, Services and Equipment Form signed by the City Manager to justify the sole/single source
10. Copy of signed contract, if required
11. Copy of Council approved resolution, if required
12. Appropriate approvals
13. Bid memo (Addendum for Purchasing Supplies, Services and Equipment Form signed by the City Manager), if required
6.3 Emergency Purchase Orders
Sometimes an emergency occurs which makes it necessary to purchase items without the benefit of competitive bidding. The guidelines outlined herein are intended to define emergency criteria for the purpose of purchasing equipment, goods, and services:
A. To avoid and/or mitigate the immediate danger to life, health, safety, or property, B. In the event of a natural disaster,
C. Facilitate the continued performance of critical City operations or services, D. Immediate action is required to avoid great financial loss.
Unforeseen emergency occurrences that do not provide the City an opportunity to obtain competitive quotes or provide for the encumbrance of the committed funds, shall rely on sound judgment to keep these orders to a minimum.
In the event of an emergency, as defined above, the procedures are as follows:
1. The department shall make every effort to solicit bids from qualified vendors, if time allows and it is feasible to do so.
2. Purchase Order Requisitions must have all the proper approvals and supporting documentation as outlined in this Al. In addition, approval by the City Manager or designee is required for all emergency purchases exceeding $5,000.
3. It is understood that emergencies may occur during non-business hours and/or designated Finance staff may be unavailable. However, it is the responsibility of the requesting department to make every effort to obtain an Emergency Purchase Order Number in advance of the purchase.
Administrative Instruction No. 605
Purchasing & Accounts Payable Procedures
September 19, 2019
4. It the department is making a purchase which may be eligible for reimbursement for funds distributed by the Federal Emergency Management Agency or any other federal funds, emergency purchases may need to comply with 2 CFR Part 200.
Consult.with the City Attorney.
6.4 Finance Department Purchase Order Process
1. Completed Purchase Order Requisitions received in Finance by 5:00 p.m. on Tuesday will be assigned a Purchase Order number and processed by the following Wednesday.
2. Incomplete Requisitions will be returned to the department with reason(s) of return.
Common reasons include lack of funds in the account and/or project to be charged, incomplete documentation and/or authorization, and/or missing Council Resolution.
3. Urgent Purchase Order requests follow the procedures outlined in the Emergency Purchase Order section of this Al.
4. Finance staff responsible for Accounts Payable will process the Purchase Order and email an electronic copy (PDF) to the requesting department. The department is responsible for providing a copy to the vendor as appropriate.
5. Funds are encumbered once the Purchase Order has been processed and posted to the general ledger of the City's financial system.
7. CLAIM VOUCHER PROCESSING
7.1 Preparation of Claim Vouchers
A. Departments are responsible for preparation of claim vouchers (Exhibit E) for payment of invoices. Assuming there are no errors or discrepancies, vouchers should be prepared within five (5) business days of receipt of invoice.
B. Merchandise received by department must be thoroughly checked. Items) must be verified against packing slips and Purchase Order to ensure item received is exactly as specified. Invoice and Claim Voucher should NOT be signed off until all merchandise/services have been satisfactorily received.
C. The department is responsible for tracking the charges against a Purchase Order.
If a Purchase Order runs out of money or the scope of service changes, the department must submit a (manual) Change Order request before the vendor can be paid. The Change Order Request should be done as soon as you become aware of a change so as not to delay payments to the vendor. If the service is under contract, the contract will also require amendment and City Manager and/or Council approval.
Administrative Instruction No. 605
Purchasing & Accounts Payable Procedures
September 19, 2019
D. Claim Vouchers should include the following information:
1. Purchase Order Number, if applicable. This number is vital to ensure the invoice is charged against the encumbrance, rather than the budget.
2. Construction vouchers must include a Purchase Order number and an invoice signed by the contractor. The gross amount due less retention, if applicable, should be detailed on the voucher.
3. Vendor number. Please verify this number in the City's financial software and include it on the claim voucher.
4. Completed W-9 (for new vendors).
5. Fund, department/division and budget accounts) to be charged. Project and account, if applicable. Use correct account coding for purchases whether or not your division has a budget for that line item. For instance, you may code a purchase of books to Books, Maps, & Periodicals to Account #73100 even if your department did not budget for that line item.
The department must be cognizant of the department's bottom line. If no account number is listed, the voucher will be returned to the Department. If the voucher includes multiple items and account coding is not listed for each item, Accounts Payable will charge the last account listed.
6. Appropriate approvals as described in Section 4.2 (Approval Authority).
7.2 Timetable for Submitting and Processing Claim Vouchers
1. Department must submit completed and approved Claim Vouchers with supporting documents to Finance Department by 5:00 p.m. on Tuesday, to be processed for payment by the following Wednesday.
2. Departments are encouraged to submit Claim Vouchers and invoices any time prior to the cut-off date in order to minimize the volume to be processed.
3. Finance processes the Claim Vouchers and payments weekly and produces the warrants for inclusion on the Council and Successor Agency agendas.
8. PETTY CASH PROCESSING
Petty cash is used for small, incidental expenditures that would be impractical to process through the regular accounts payable process. City-authorized expenditures that are $50 or less may be reimbursed through petty cash. The petty cash fund shall be maintained
Administrative Instruction No. 605
Purchasing & Accounts Payable Procedures
September 19, 2019
and safeguarded in a safe with limited access. Three petty cash funds are currently authorized by the Finance Director.
The departments, amounts and administrators (positions, in italics) of the City's petty cash funds are listed below:
Finance Department
(Cashier / Business License Technician) $450.00
Community Services Department
(Supervisor)
Childcare Center $300.00
Senior Center $300.00
Emeryville Center of Community Life $600.00
Police Department
(Police Services Manager) $350.00
8.1 Reimbursements
To receive a reimbursement, employees should complete an Expense Reimbursement Form (Exhibit F) noting their name, the date, amount requested, a description of the expense, and the division/department and accounts) to be charged. The original receipts should be attached before forwarding it to the appropriate Department Head (depending on department/division being charged) for signature. The approved request should then be presented to the petty cash administrator to receive the funds. Reimbursement for City expenses using personal funds is discouraged, and employees should make every reasonable effort to avoid having to use personal funds to cover City expenses.
8.2 Reconciliation and Replenishment
The petty cash administrator is responsible for reconciling and replenishing the fund as needed. Petty cash vouchers will be summarized and entered onto a Claim Voucher form made payable to the person responsible for the funds. All original petty cash vouchers and receipts should be attached to the claim voucher before submitting to the Department Head for approval. Upon approval, the voucher will be forwarded to Accounts Payable for processing and payment. Periodic audits will be performed by a Finance manager or delegate to ensure compliance with these procedures.
9. CAL-CARD PURCHASES
The State of California's Department of General Services (DGS) developed a Master Service Agreement with U.S. Bank to provide VISA bank cards to State and local government employees as a payment method for small purchases of goods and services.
Administrative Instruction No. 605
Purchasing & Accounts Payable Procedures
September 19, 2019
This unique government credit card has the employee's name embossed on it and is identified as a State of California VISA card which is also known as the "CAL-Card".
The CAL-Card, when used to purchase goods or services, promotes increased supplier/ contractor acceptance, improves the timely delivery of products and services, and reduces certain business-related costs. For example, using this card will centralize invoice processing and provide opportunities for greater efficiencies. This program allows for a 45-day payment cycle, along with rebates for early payments. The CAL-Card program is not intended to and will not be used to circumvent any existing statues or laws, or City purchasing procedures and policies. The use of CAL-Card will be closely managed to ensure the cards are being used efficiently and appropriately. The CAL-Card will only be issued to regular City employees. Cardholders are prohibited from using the CAL-CARD for personal expenses, even if the cardholder intends to reimburse the City for the personal expense.
For additional information on the guidelines, responsibilities and use of the CAL-Card, please refer to the "Cardholder Acceptance Letter and Cardholder Guide" which is required to be signed by all cardholders prior to being issued a card.
Approved:
Clatia Dal
Christine Daniel, City Manag
10. ATTACHMENTS:
1. Exhibit A: Uniform Guidance Procurement Standards
2. Exhibit B: Purchase Order Requisition Form
3. Exhibit C: Department/Division Authorized Designee(s) Form
4. Exhibit D: Purchase Order Change Order Form
5. Exhibit E: Claim Voucher Form
6. Exhibit F: Expense Reimbursement Form
Exhibit A
1. Uniform Guidance Procurement Standards
The City is required to implement changes to its procurement policies and procedures in accordance with the Uniform Guidance procurement standards in 2 CFR 200.317 through 200.326 for any federally funded procurements beginning on or after July 1, 2018.
Since the City receives federal awards, a few of the general standards over procurement include:
• The City must have documented procurement procedures that reflect federal law, Uniform Guidance standards, and any state regulations.
• The City must maintain an appropriate level of oversight to ensure that contractors perform in accordance with the terms of their contracts or purchase orders. • Written conflict-of-interest policies are required. No employee or agent of the City may participate in the selection, award, or administration of a contract funded by federal grant dollars if he or she has an actual or apparent conflict of interest. • Entities should focus on the most economical solution during the procurement process, and must avoid using federal funds for the acquisition of unnecessary items.
Organizations are encouraged to consider the use of shared services and intergovernmental agreements to foster greater economy and efficiency. • The City must maintain records sufficient to detail the history of procurement, including the rationale for the method of procurement, contract type, and the basis for the contractor selection or rejection and price.
In addition to other requirements, the Uniform Guidance also requires full and open competition. Contractors who assist in drafting specifications for invitations for bids or requests for proposals (RFP) must be excluded from competing for those procurements.
The Uniform Guidance also outlines five methods of procurement to be followed for federally funded projects
• Micro-purchase: Purchases where the aggregate dollar amount does not exceed $3,000 (or $2,000 if the procurement is construction and subject to Davis-Bacon). When practical, the City should distribute micro-purchases equitably among qualified suppliers. No competitive quotes are required if management determines that the price is reasonable. • Small purchase: Includes purchases up to the Simplified Acquisition threshold, which is currently $150,000. Informal purchasing procedures are acceptable, but price or rate quotes must be obtained from an adequate number of qualified sources. • Sealed bids (formal advertising): Used for purchases over the Simplified Acquisition Threshold, which is currently $150,000. Under this purchase method, formal solicitation is required, and the fixed price (lump sum or unit price) is awarded to the responsible bidder who conformed to all material terms and is the lowest in price. This method is the preferred procurement method for construction contracts if certain provisions apply.
Exhibit A
1. Uniform Guidance Procurement Standards (Continued)
• Competitive proposals: Used for purchases over the Simplified Acquisition Threshold, which is currently $150,000. This procurement method requires an adequate number of qualified sources submitting an offer for either a fixed-price or cost-reimbursement contract, and is used when sealed bids are not appropriate. The contract should be awarded to the responsible firm whose proposal is most advantageous to the program, with price and other factors considered.
• Noncompetitive proposals: Also known as sole-source procurement, this may be appropriate only when specific criteria are met. Examples include when an item is available only from a single source, when a public emergency does not allow for the time of the competitive proposal process, when authorized by the federal awarding agency, or after a number of attempts at a competitive process, the competition is determined to be inadequate.
The provisions above are just highlights from the new procurement standards and the City should ensure that all of the procurement standards in the Uniform Guidance have been reviewed and that the applicable policies and procedures in place for fiscal year 2019.
If the City determines that it will have different purchasing policies for federally funded vs non- federally funded projects, procedures should be in place to ensure that all contracts awarded related to federally-funded projects are in compliance with the requirements of the Uniform Guidance Procurement Standards. This is critical in the event a grant award allows for the reimbursement of costs incurred prior to award issuance, if those contracts were awarded using procedures that are not in compliance with the Uniform Guidance Procurement Standards.
NOTE - it should be noted that the micro-purchase and simplified acquisition thresholds have been amended by the GSA office for fiscal year 2018 in its February 16, 2018 letter, but the rates in the Uniform Guidance remain at the levels noted above. It is expected that the Uniform Guidance thresholds will be amended to coincide with the Federal Acquisition Regulation (FAR) thresholds, but that cannot be guaranteed. Therefore, staff should periodically review the Uniform Guidance thresholds to see if they have been revised.
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REQUISITION 17000069
REQUESTED REQUIRED DEPT 9999 BUYER
08/04/16 CITY WIDE
SHIP TO 1500 VENDOR 5565
FINANCE ABC COMPANY (TEST)
CITY OF EMERYVILLE 1333 DOG PARK AVENUE
1333 PARK AVENUE EMERYVILLE CA 94608
EMERYVILLE, CA 94608-3517
ATTN: FINANCE DIRECTOR
FY16/17 PROFESSIONAL SERVICES FREIGHT
EXTENSION/
LN/ST COMMODITY STOCK NO QUANTITY UOM UNIT PRICE TAX/TRADE-IN 01 45,000. 0000 45,000.00
FY16/17 PROPESSIONAL SERVICES AGREEMENTIS 0.00
0.00 EFFECTIVE 7/1/2016
RESO#17-01
TOTAL PRICE 45,000.00
DEPT/DIVISION ACCOUNT PROJECT ACCOUNT CHARGE AMOUNT
1500 80050 45,000.00
REQUISITION TOTAL 45,000.00
APPROVED BY: PURCHASES GREATER THAN $5,000:
Department Head City Manager
Dep Head of Dept Charged PURCHASES GREATER THAN $45, 000:
Info sys Analyst (IT Purchases) Resolution No.
Date Approved
CITY OF EMERYVILLE
DEPARTMENT/DIVISION AUTHORIZED DESIGNEE(S)
TO: Michelle Strawson O'Hara, Finance Supervisor Date: August 2016 FROM: Susan Hsieh, Finance Director
SUBJECT: Authorized Department Designee(s)
The following personnel are authorized to sign as follows for the Finance department:
Designee's Printed Name Designee's Signature Designee's Regular Description of Authority* Initials coverage
Temporary
(R/T)?
*Functions Include: dollar limitation, claim vouchers, purchase order requisitions, timesheets, petty cash requests, etc.
APPROVED: INITIALS: DATE SIGNED:
Department Head
Finance-3/1/2011
CITY OF EMERYVILLE
P.O. CHANGE ORDER
Date
Vendor Name: Vendor#
Address:
PO
Unit of Unit
Item Qty Measurement Description Price Amount
Change Order
Account Distribution
Org Acct Project Account Amount
]Blanket Purchase Order Approved By:
JP.O. Number Needed Right Away Department Head
Requisitioned By: Ext
Department Head of dept Charged
Purchases Greater Than $5,000
Finance Approval:
Info Systems Analyst (Computer Purch.) City Manager
Senior Accountant (Project Refunds)
Purchases Greater Than $45,000
SEE REVERSE FOR ATTACHMENTS CHECKLIST Resolution#
Date Approved:
CITY OF EMERYVILLE
CLAIM VOUCHER $
Date
Vendor
Name: Vendor #
Address: PO#
Org Acct. Project Acct Inv Date Description Inv # Amount Finance Approvals:
Info. Systems Analyst (Computer Purchases)
Department Head
Acctg. Super. (Cost Recovery Refunds)
Division Head
Additional Approval:
Date Paid and Warrant Number
Dept. Head of dept charged
For purchases greater than $5,000 not requiring
a Purchase Order &/or Capital Outlay purchases.
CITY MANAGER
Print Form
CITY OF EMERYVILLE EXPENSE REIMBURSEMENT FORM
ORIGINAL RECEIPTS MUST BE ATTACHED TO THIS FORM. INCOMPLETE EXPENSE FORMS WILL BE RETURNED TO SENDER FOR COMPLETION. COMPLETE REIMBURSEMENT REQUESTS MUST BE SUBMITTED TO THE FINANCE DEPARTMENT WITHIN 30 CALENDAR DAYS OF THE EXPENSE BEING INCURRED.
Make Check Payable to: (Please Print Neatly)
Name Daytime phone ( ).
Mailing Address 1333 Park Avenue
City Emeryville State CA Zip_ 94608
Below is a PARTIAL list of reimbursable expenses. Please refer to City of Emeryville Conference and Travel Policy for further information.
• Private car mileage reimbursed at IRS mileage, start to finish. (Car mileage will mileage rate $.58 Refer to Al-608 for not be reimbursed without mileage listing) limitations and restrictions. Please list • Meal reimbursement: Maximum $50 per day, inclusive of gratuities.
Reason for expense, and description of expense
(include names of guests if hosting meal). For travel,
name or description of the event you attended. Date of expense Amount Less: Advances (if any)
Total Amount to be reimbursed: $
I certify under penalty of perjury under the laws of the State of California that the above is a true statement and that the expenses claimed were incurred by me on official City of Emeryville business.
Signature Date
All expenses reported on this form must comply with the City's A1-608 regarding appropriate expenses and use of public resources. The information submitted on this form is a public record. Penalties for misusing public resources and violating the City's policies include loss of reimbursement privileges, restitution, civil and criminal penalties as well as additional income tax liability.
Al 608, effective 9-1-08