purchasing manual - city of richardson

PURCHASING MANUAL

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JANUARY 2021

FORWARD

This manual contains the policies and procedures for purchasing related activities. Its purpose is to provide guidance and instruction for all employees new to the purchasing process and be a reference for staff and management.

Legal and organizational changes and data processing improvements may require policy and procedural changes and revisions to this manual. Updates will be issued that reflect these changes in order to keep this manual current. This manual is also provided in the Purchasing Section of the City’s Intranet site at www.cor.gov.

If you are unable to find an answer to your question(s) or need additional information not found in this manual, please stop by Purchasing or call us at Extension 4130.

________________________________________ Todd Gastorf - Purchasing Manager

________________________________________ Keith Dagen - Director of Finance

Signature on File

Signature on File

http://www.cor.gov/

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City of Richardson • Purchasing Manual

FORWARD ................................................................................................................................. 1 DIRECTORY OF PURCHASING STAFF .................................................................................... 4

I. GLOSSARY OF TERMS ................................................................................................... 5 II. POLICY STATEMENTS .................................................................................................. 12

A. Mission Statement ..................................................................................................... 13 B. Electronic Bidding Procurement Policy ....................................................................... 14

III. PURCHASING CODE OF ETHICS .................................................................................. 16 IV. BIDDING PARAMETERS & PRICE QUOTATIONS ........................................................ 20

A. Competitive Bidding Statutes ..................................................................................... 21 B. Historically Underutilized Businesses ......................................................................... 21 C. Turnaround Time ....................................................................................................... 22 D. Acceptance of Bids .................................................................................................... 22 E. Purchasing Flow Chart ............................................................................................... 23 F. Bidding Parameters ................................................................................................... 24 G. Guidelines for Purchases between $3,001 and $50,000 ............................................ 26 H. Price Quotation Form ................................................................................................. 27 I. Bid Tabulation ............................................................................................................ 27

V. PROCUREMENT CARD PROGRAM .............................................................................. 30 A. Program Overview ..................................................................................................... 32 B. General Information ................................................................................................... 34 C. Procurement Card Controls........................................................................................ 35 D. Maintaining Your Procurement Card .......................................................................... 36 E. Procurement Card Procedures ................................................................................... 39 F. Procurement Card Guidelines .................................................................................... 42 G. Commonly Asked Questions ...................................................................................... 44 H. Cardholder Credit Card Agreement ............................................................................ 45 I. Statement Reconciliation Instructions ........................................................................ 47 J. Transaction Log ......................................................................................................... 50 K. Statement Review & Payment Process ...................................................................... 51 L. Procurement Card Audit Process ............................................................................... 52

VI. PURCHASING METHODS .............................................................................................. 53 A. Competitive Sealed Bids ............................................................................................ 54 B. Request for Proposals and Competitive Sealed Proposals ........................................ 57 C. Request for Information and Request for Qualifications ............................................. 60 D. Cooperative Purchasing ............................................................................................. 62 E. Fleet and/or Rolling Stock Purchases ........................................................................ 63

VII. SPECIFICATIONS ........................................................................................................... 64 A. Purpose of Specifications ........................................................................................... 65 B. Preparing Specifications ............................................................................................ 66 C. Best Value ................................................................................................................. 66

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VIII. THE PURCHASING PROCESS ....................................................................................... 67 A. Field Purchase Order ................................................................................................. 68 B. Field Purchase Order Workflow ................................................................................. 79 C. Automated Purchase Requisition ............................................................................... 80 D. Purchase Order .......................................................................................................... 97 E. Annual Requirements Contracts ................................................................................ 99 F. Contract Signature Authority .................................................................................... 100 G. Electronic Signatures Policy ..................................................................................... 100 H. Maintenance Agreements ........................................................................................ 102 I. Lease Agreements ................................................................................................... 103 J. Expedited and Emergency Purchases ..................................................................... 103 K. Sole or Single Source Purchases ............................................................................. 106 L. Petty Cash ............................................................................................................... 107

IX. TAX EXEMPTION CERTIFICATE .................................................................................. 109 X. AFTER THE ORDER ..................................................................................................... 111

A. Expediting ................................................................................................................ 112 B. Cancellation or Change Orders ................................................................................ 112 C. Vendor Relations ..................................................................................................... 112

XI. INSPECTION & RECEIVING OF GOODS ..................................................................... 113 A. Receiving ................................................................................................................. 114 B. Inspection ................................................................................................................ 114 C. Damage ................................................................................................................... 114 D. Returns .................................................................................................................... 115 E. Receiving Complete Orders ..................................................................................... 115 F. Partial Receipt Voucher ........................................................................................... 117

XII. INVOICES ..................................................................................................................... 121 A. Procedure ................................................................................................................ 122 B. Prompt Payment Act ................................................................................................ 122

XIII. FREIGHT ....................................................................................................................... 123 A. Title & Control of Goods ........................................................................................... 124 B. Payment Terms ........................................................................................................ 124 C. Shipping or Returns ................................................................................................. 124

XIV. CITY INVENTORY ......................................................................................................... 125 A. Materials Management ............................................................................................. 126 B. Preprinted Materials ................................................................................................. 126 C. Copy Paper .............................................................................................................. 126

XV. DISPOSAL OF SURPLUS PROPERTY ........................................................................ 127 A. Scope of Services .................................................................................................... 128 B. Preparation for Sale ................................................................................................. 129 C. Internet Auctions ...................................................................................................... 130 D. Surplus Vehicle & Rolling Stock Auctions ................................................................. 131 E. Auction Receipts, Settlement, & Retention ............................................................... 132

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Directory of Purchasing Staff PURCHASING MANAGER ............................... TODD GASTORF ............. 972-744-4135 PURCHASING SUPERVISOR .......................... ALLY DOBBINS ............... 972-744-4132 BUYER II ........................................................... KATRINA WALLACE ........ 972-744-4136 PURCHASING SPECIALIST ............................ ALEX CASEBOLT ............ 972-744-4137 RECEPTIONIST/PURCHASING ASST. ........... KATHLEEN CARTER ....... 972-744-4100

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I. GLOSSARY OF TERMS

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Glossary of Terms The following definitions are intended to assist you in understanding the language used throughout this manual. Please do not hesitate to contact the Purchasing Division for clarification if you find a term that you may not clearly understand or that is not defined in this section. Annual contract – A contract which protects pricing for a set time period (typically one (1) year) and is awarded to a Contractor for goods and services routinely required on a recurring basis. User departments place orders directly with the Contractor, eliminating requisitions and processing time. These contracts are also referred to as annual requirements contracts or blanket orders. See Section VIII.D. Award – The presentation of a purchase agreement or contract to the selected bidder. 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 the goods or services at the best value for the City. In determining the best value for the City, we 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 relevant criteria specifically listed in the request for bids or proposals. Bid – An offer to contract with the City submitted by a bidder in response to an invitation to bid or to a multi-step bid. The complete bid document may be referred to as “the bid.” Bid advertisement – For expenditures over $50,000 a public notice shall be placed in a newspaper of general circulation and published at least once a week for two consecutive weeks. The notice shall contain the time and place at which bids will be publicly opened.

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Bonds Bid Bond – A deposit required of bidders to protect the City if a low bidder withdraws its bid following submission or fails to enter into a contract following award. Acceptable forms of bid deposits are limited to: certified or cashier’s check on a state or national bank payable to the City of Richardson, Texas or a bid bond from a surety company authorized to do business in the State of Texas as a guarantee that the bidder will enter into a contract and execute the required Performance and Payment Bonds after notice of award. If the solicitation requires a Bid Bond, it must be submitted with the vendor’s bid response. Payment Bond – A surety bond that ensures all suppliers and subcontractors of the Contractor will be paid for work and materials supplied in the course of the contract. If the solicitation requires a Payment Bond, it must be submitted by the Contractor after award and prior to commencement of work. Performance Bond – A surety bond that provides assurance to the City that the awarded contractor will faithfully perform the work in accordance with the plans, specifications, and contract documents. If the solicitation requires a Performance Bond, it must be submitted by the Contractor after award and prior to commencement of work. Maintenance Bond – A surety bond that guarantees the project against defective workmanship and materials during the maintenance period set forth in the bond. If the solicitation requires a Maintenance Bond, it must be submitted by the Contractor after award and prior to commencement of work.

Capital equipment – Assets that are used in operations with a useful life greater than one year and valued at $5,000 or more at the time of acquisition.

Change order – A change order is issued to a purchase order or contract if changes in plans or specifications are necessary after the performance of the contract has begun or if it is necessary to decrease or increase the quantity of work to be performed or of materials, equipment, or supplies to be furnished. Change orders must not be issued unless funds are available for the increase. For Council approved bids, the original contract price may not be increased by more than twenty-five percent (25%). The contract may not be decreased by more than twenty-five percent (25%) without the consent of the contractor. Change orders involving a decrease or increase of more than $50,000 must be approved by the City Council. City Council – The elected officials of the City of Richardson, Texas given the authority to exercise such powers and jurisdiction of all City business as conferred by the City Charter and the State of Texas Constitution and laws.

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Commodity code – 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 of an item, which in normal purchasing practices would be purchased in one purchase. 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 Contractor, with binding legal and moral force, usually exchanging goods or services for money or other consideration. Contractor – The successful vendor(s) awarded a contract by the City of Richardson. Council bid – Purchases of more than $50,000 pursuant to competitive sealed bids, request for proposals, competitive sealed proposals, or an alternate procurement method authorized by Texas Government Code Chapter 2269 for which the City Council must approve the purchase. Delivery date – The date by which goods or services are needed by the department or are promised by the vendor. 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 Texas Local Government Code Sec. 252.022. Emergency purchases must follow the procedure set forth in this manual. See Section VIII.H. Encumbrance – Commitment of appropriated funds related to unperformed contracts for goods or services. Expedite – To accelerate the purchasing process through normal procedures in order to prevent work stoppage or loss of city equipment or property. Expedited procedures are used for emergency purchases. Field Purchase Order (“FPO”) – The FPO in the HTE software allows user departments to place minor purchase orders directly with approved vendors for certain miscellaneous items and services. The total order must not exceed $3,000, including shipping and handling charges. See Section VIII.A.

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Free On Board (“FOB”) destination point – Vendor pays freight charges to the destination; title to goods passed to buyer at receiving dock; freight claims must be filed and handled by the seller. FOB shipping point – City must pick up goods at the seller’s shipping dock or pay freight charges; freight charges may be prepaid and added to the invoice; title to goods passes to the City at the shipping dock of seller; freight claims must be filed and handled by the City. Goods – Property to be purchased by the City, including equipment, supplies, materials, components, and repair parts. Interlocal agreement – An agreement made between the City and another governmental entity or a cooperative organization to perform governmental functions and services (e.g., purchasing) for each other as provided under Texas Government Code Sec. 791.025 and Texas Local Government Code Sec. 271.102. Invitation to bid (“ITB”) – Specifications and a formal written document requesting a firm price and delivery details for specified goods or services. Lowest responsible bidder – This is the vendor who offers the lowest bid which meets all the specifications, requirements, and terms and conditions of the ITB. 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 and is also used to refer to the experience or safety record of the vendor. Maintenance agreements – An agreement with equipment manufacturers or authorized service centers for the upkeep of equipment that neither adds to its permanent value nor prolongs its intended life appreciably, but instead keeps it in an efficient operating condition. Professional services – Services rendered by members of a recognized profession as defined by Texas Government Code Sec. 2254.002 or who possess special skills which are mainly mental or intellectual, rather than physical or manual. Texas Local Government Code Sec. 252.022(a)(4) exempts professional services from competitive bidding requirements. Purchase – An act that includes the acquisition of goods or services, including leasing personal or real property. Separate, sequential, and component purchases shall be treated as a single purchase. Purchase order – A purchaser’s written document to a vendor formalizing all of the terms and conditions of a proposed transaction, such as a description of the requested item(s), delivery schedule, terms of payment, and transportation. When accepted by a vendor, the agreement specified in the purchase order becomes a contract. A purchase order grants

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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. Quote – An informal purchasing process which solicits pricing information from several sources. Request for proposals (“RFP”) – A formal written document requesting that potential vendors make an offer for goods or services to the City. The RFP method of procurement may be used for all goods and services. The RFP differs from an ITB in that the City is seeking a solution, as described in the document, not a bid or quotation meeting firm specifications. Proposals are evaluated based on criteria formulated around the most important features of a product or service, of which quality, testing, references, availability or capability may be overriding factors, and price is not the sole factor of the award. RFP submittals are kept confidential during negotiations until a contract is awarded. See Section VI.B. Request for qualifications (“RFQ”) – A formal written document used when soliciting providers of professional services such as architectural, engineering, or land surveying services. The City must comply with Texas Government Code Sec. 2254.004 in the procurement of these services. 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 architectural, engineering, or land surveying 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. See Section VI.C. Requisition – The source document for all purchasing activity submitted through the City financial system. This form communicates a department’s needs to the Purchasing Division and grants authorization to enter 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. See Section VIII.B. Separate purchases – Purchases made separately of items that in normal purchasing practices would be purchased in one purchase. Sequential purchases – Purchases, made over a period that in normal purchasing practices would be purchased at one time. 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 procurement – Purchases of goods or services that are available from only one vendor. There may be just one vendor because of patents or copyrights, or simply

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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 Texas Local Government Code Sec. 252.022 but must comply with the procedures outlined in this manual. See Section VIII.I. Specifications – A description of the physical or functional characteristics, or of the nature of a supply, service, or construction item; the requirements to be satisfied by a product, material or process indicating, if appropriate, the procedures to determine whether the requirements are satisfied. Specifications should be descriptive, but not restrictive. State contract purchase – An item available through the State of Texas Procurement and Support Services Cooperative Purchasing Program. The State has publicly advertised and received qualified bids for specific items. These appear on a listing periodically published by the State. The City of Richardson has elected to participate in the cooperative purchasing program for governmental subdivisions and other state agencies. Surplus – Item(s) no longer needed by a department, regardless of its value or condition. Vendor – A generic term applied to individuals and companies who provide goods and services to the City.

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II. POLICY STATEMENTS

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Policy Statements A. Purchasing Division Mission Statement

It is the responsibility of the Purchasing Division to conduct purchasing for the City of Richardson in accordance with all applicable laws and city charter, to foster sound purchasing policies and procedures throughout all departments of the city, and to stimulate competitive bidding in order to provide materials and services at the lowest price and highest quality possible.

The Purchasing Division reports to the Director of Finance. The Purchasing Division is also responsible for the disposal of city surplus property and police confiscated property at public auction and management of the City Receptionist. Purchasing procedures are guided by several established policies, which include:

• To conduct all purchasing in accordance with State of Texas law, including Chapters 252 and 271 of the Texas Local Government Code, and the City of Richardson Charter, Article 18, Sections 18.01, 18.02 and 18.03.

• To foster an understanding and appreciation of sound purchasing policies and procedures throughout all departments of the City.

• To be responsible for obtaining the lowest possible price and highest quality consistent with delivery terms and vendor service reputation.

• To eliminate high cost, convenience buying.

• To prepare and approve purchase orders and contracts in a timely manner in response to departmental requests.

• To prepare, receive, distribute and evaluate requests for bids and proposals on a routine basis.

• To encourage competition between vendors through negotiations, competitive bidding, and quantity buying by continuously monitoring requisitions by all departments to facilitate consolidation of purchases when possible.

• To promote good vendor relations.

• To establish specifications which encourage competition and accurately describe the goods and services needed by the City.

• To maintain continuity of supply to support on-going service, operations and construction schedules.

• To advise the user departments of any unusual delay in delivery schedules.

• To assist Materials Management in maintaining sufficient quantities of inventoried supplies for the benefit of all City departments.

• To be responsible for the proper disposition of surplus City property and impounded police property at public auction, Internet auction, or by sealed bids.

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B. Electronic Bidding Procurement Policy

Electronic sealed bids or proposals shall be in accordance with Texas Local Government Code Sec. 252.0415(a) which requires the identification, security, and confidentiality of electronic bids or proposals to remain effectively unopened until the proper time.

Procedures for Electronic Bidding & Reverse Auctions

1. Electronic Bidding

a. Identification – An ITB or RFP will be advertised and issued as required by State law. A notification will be added to bid terms and conditions stating vendors should submit responses electronically through City’s service provider at the appropriate electronic address listed. An automatic “e-mail return notification” will be sent to the submitting vendor upon receipt of their bid or proposal.

b. Security – At the specified bid closing time, a password-enabled employee in the Purchasing Division will open, download, and print all bids and the bid tabulation summary assembled by the City’s service provider. The printing operation will occur in the controlled environment of the Purchasing Division where purchase order equipment is currently located. By law, a bid that is submitted non-electronically will be accepted and then entered electronically by Purchasing after the bid opening, as stated in bid and proposal document terms and conditions.

c. Confidentiality – Purchasing staff will then read aloud all bid responses received by the closing time and date to any interested parties present at the bid opening. After tabulation of bids or proposals, staff will post the bid tabulation electronically with a qualifying statement: “The tabulation listing of a bid should not be construed as a comment on its responsiveness or an indication that the City accepts such bid as responsive. After evaluating bids or proposals, the City will post a tabulation and award information on the City website.”

2. Reverse Auctions

a. Electronic reverse auctions shall be in accordance with Texas Local

Government Code Sec. 271.906 as defined in Sec. 2155.062(s) requiring a real-time bidding process taking place during a previously scheduled Internet auction with multiple vendors, anonymous to each other, submitting bids to provide goods or services.

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b. “Real-time” Bidding Process – Reverse auctions will be advertised and issued in the current manner, as are invitations to bid and requests for proposals. A notification will be added to bid terms and conditions stating vendors should submit responses electronically through the City’s Internet auctioneer at the appropriate electronic address listed. The real-time bidding process will usually last up to one (1) hour and take place during a previously scheduled period and scheduled Internet auction.

c. Multiple Bidders – The Purchasing staff, along with its selected Internet

auctioneer, shall insure multiple, qualified bidders are available, interested and notified electronically or otherwise of any current reverse bidding opportunity. A notification will be added to bid terms and conditions stating vendors should submit responses electronically through the City’s Internet auctioneer at the appropriate electronic address listed.

d. Anonymous Bidders – City’s selected Internet auctioneer shall insure the

anonymity of all responding bidders through the assignment of a “Bidder Number” to the Vendor (as opposed to their Vendor name) which will be reflected on the auctioneer website during the reverse auction bidding process. The auctioneer website will reflect all active Vendors bidding by a) the Vendor’s assigned Bidder Number and b) their last entered bid price. After the tabulation of bids, staff will post the bid tabulation with the same qualifying statement as expressed in Section II, A (3).

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III. PURCHASING CODE OF ETHICS

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Purchasing Code of Ethics The Purchasing Code of Ethics, which supplements the Code of Ethics for all City of Richardson employees contained in the Interdepartmental Policies and Procedures, is designed to provide guidance for the behavior of every City employee directly or indirectly involved in the City’s procurement of goods and services. The following ethical principles are adapted from the National Institute of Governmental Purchasing (“NIGP”).

• Believe in the dignity and worth of the service rendered by the City, and the societal responsibilities assumed as a trusted public servant.

• Maintain the highest ideals of honor and integrity in all public and personal relationships in order to merit the respect and inspire the confidence of the City and the public being served.

• Believe that personal aggrandizement or personal profit obtained through misuse of public or personal relationships is dishonest and will not be tolerated.

• Identify and eliminate participation of any individual in operational situations where a conflict of interest may be involved.

• Believe that members of the City and its staff should at no time, or under any circumstances, accept directly or indirectly, gifts, gratuities, or other things of value from vendors, which might influence or appear to influence purchasing decisions.

• Neither seek nor dispense personal favors. Handle each administrative problem objectively and empathetically, without discrimination.

The following guidelines are provided to help City employees apply the Code of Ethics in a reasonable and prudent manner.

I. Responsibility to the City of Richardson

• Follow the lawful instructions or the laws of the City. • Understand the authority granted by the City. • Actively promote the concept of competition. • Strive to obtain the maximum benefit for funds spent as an agent of the City.

II. Perception

• Avoid any private or professional activity which will create or have the perception of creating a conflict between your personal interests and the interests of the City.

• Do not conduct City business relationships with personal friends. Request reassignment if the situation arises.

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• Avoid noticeable displays of affection with vendors which may give the impression of impropriety.

• Avoid holding business meetings with vendors at locations which may be perceived as inappropriate by other members of the business community or the general public.

III. Gratuities

• Never solicit or accept money, loans, credits or prejudicial discounts, gifts, entertainment, favors, or services from current or potential vendors which might reasonably tend to influence you in the performance of your official duties.

• Never solicit gratuities in any form for you or the City. • An occasional item with a value less than fifty dollars ($50.00) offered by a vendor

for public relations purposes is acceptable when the value of such item would not be perceived by the giver, receiver, or others as posing an ethical breach.

• Evaluate the intent and perception of a gift offered by a vendor to ensure that acceptance is legal, that it will not influence your buying decision, and that it will not be perceived as unethical by members of the business community or the general public.

• Please note Civil Service Rule XXV, Section 87 relative to gratuities: No reward, gift, or other form of remuneration in addition to regular compensation shall be received from any source by employees for the performance of their official duties. If a reward, gift, or other form of remuneration is made available to any employee, it shall be credited to a designated employee fund with the approval of the City Manager.

IV. Business Meals with Vendors

• It may be appropriate to conduct business during meals. In such instances, the meal should be for a specific business purpose.

• Avoid frequent meals with the same vendor, and be aware of how this may look to other current or potential vendors.

V. Relationships with Vendors

• Maintain and practice the highest degree of business ethics, professional courtesy, and competence in all transactions.

• Association with vendors at hosted lunches, dinners or business organization meetings where multiple organizations are represented is an acceptable professional practice enabling the buyer to establish better business relations provided that the buyer keeps free from obligation.

• Adhere to and protect the vendor’s business and legal rights to confidentiality for trade secrets and other propriety information.

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VI. Relationships with Other Agencies and Organizations

• Represent professional organizations in the same professional and ethical manner that you represent the City of Richardson.

• Do not use your position to exert leverage on individuals or firms for the purpose of creating a benefit for agencies or organizations that you represent, including the City of Richardson.

• Exercise professionalism in all involvement and transactions with the interest of the City of Richardson taking precedence.

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IV. BIDDING PARAMETERS &

PRICE QUOTATIONS

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A. Competitive Bidding Statutes The following statutes are quoted from the Texas Local Government Code, Chapter 252 relative to competitive bidding.

• 252.021 LGC - Competitive Bidding and Competitive Proposal Requirements Before a municipality may enter into a contract that requires an expenditure of more than $50,000 from one or more municipal funds, the municipality must comply with the procedure prescribed by this chapter for competitive sealed bidding or competitive sealed proposals.

• 252.0215 LGC - Competitive Bidding in Relation to Historically Underutilized Business A municipality, in making an expenditure of more than $3,000 but less than $50,000 shall contact at least two historically underutilized businesses on a rotating basis, based on information provided by the comptroller pursuant to Chapter 2161, Government Code. If the list fails to identify a historically underutilized business in the county in which the municipality is situated, the municipality is exempt from this section.

• 252.062 LGC - Criminal Penalties A municipal officer or employee commits an offense, if the officer or employee intentionally or knowingly makes or authorizes separate, sequential, or component purchases to avoid the competitive bidding requirements of Section 252.021. An offense under this subsection is a Class B misdemeanor.

B. Historically Underutilized Businesses The City is required to contact at least two (2) historically underutilized businesses (“HUBs”) when making expenditures of more than $3,000 but less than $50,000. Two HUBs must be contacted on a rotating basis, based on information provided by the Texas Procurement and Support Services pursuant to Chapter 2161, Government Code. If the list fails to identify a historically underutilized business within Collin or Dallas County, the City is exempt from this requirement. The list of Collin and Dallas County HUBS may be found on the Texas Procurement & Support Services website at:

https://mycpa.cpa.state.tx.us/tpasscmblsearch/index.jsp The Purchasing Division may be contacted for a listing of historically underutilized businesses within the particular commodity for which you may be soliciting pricing.

https://mycpa.cpa.state.tx.us/tpasscmblsearch/index.jsp

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C. Turnaround Time Purchasing will be responsible to see that orders are placed promptly. Orders are usually placed with the vendor within five (5) working days or less. User departments should receive purchase order acknowledgement within two (2) working days. If a purchase order is delayed due to insufficient documentation, staff workload, or for any other reason, user departments should receive a status update from Purchasing within this same two (2) working days timeframe. Requisitions that require the written bid process normally take four (4) weeks to process, and Council bids generally take as long as eight (8) weeks.

D. Acceptance of Bids Purchasing has the discretion to accept the user department’s recommendation regarding which vendor to buy from on purchases up to $50,000. On orders over $50,000, the City Council will make the final award. The decision is based on a combination of price or best value, quality, delivery time, adherence to bid specifications, service reputation and safety records. The bid will be awarded to the lowest responsible bidder or the bidder offering the best value, but Purchasing reserves the right to reject any or all bids and reopen the bidding process if it is in the best interest of the City.

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E. PURCHASING FLOW CHART

Need determined by Department

Authorization from Department Head

Over $50,000 $1 - $3,000

Procurement method determined by

Purchasing Manager

FPO issued by Department

3+ quotes, with 2 or more from

HUBs

Quotes received

Quotes, insurance, and other back-up

sent to Purchasing

Award determined

Council Bid initiated through Purchasing

Award recommendation

Purchase Order issued

$3,001 - $50,000

Quotes tabulated

Requisition entered by

Department

Quote Process

Non-Council Bid

Bid initiated through

Purchasing

Bids received

Bids tabulated and evaluated

Requisition entered by

Department

Award determined Requisition

assigned to Buyer

Procurement method determined by

Purchasing Manager

Bid advertised

Bids received

Bids opened

Bids tabulated and evaluated

Contract awarded by City Council

d i

Requisition assigned to

Buyer

Requisition entered by Department

Requisition assigned to Buyer

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F. Bidding Parameters Bidding parameters are established to ensure that sizable purchases are subject to fair competition among available, responsible vendors. To effectively expedite and control purchases of goods and services that are under the sealed bid limits established by Texas Local Government Code Chapter 252, the following parameters and guidelines have been established by the City of Richardson to assist Purchasing Division employees, as well as other city employees, in obtaining quotes/bids. Even though certain purchases are exempt from the statutory requirements for formal sealed bids, they should have adequate controls and be subject to all practical competition. The following bid parameters are to be adhered to when purchasing goods and services for the City.

1. Purchases between $1 – $3,000 Quotes are not required but are recommended as a best practice. Orders may be placed by Purchasing or the user department directly with vendors by telephone, FPO, or procurement card transaction.

2. Purchases between $3,001 - $50,000

On purchases of this magnitude, the Purchasing Manager determines the method of procurement by using formal written quotes in response to a non-Council bid, telephone quotes followed up in a written format, or Internet quotes, which shall be retained in the Purchasing Division. The user department should discuss with the Purchasing Manager the full details of the procurement in an effort to determine the appropriate method of receiving quotations.

Quotes: In instances where time is of the essence, the Purchasing Manager may allow the user department to solicit written quotations. Quotations shall include a description of the item to be purchased, the quantity to be purchased, the unit cost of the item(s), and complete delivery and shipping information and associated cost, if any. Quotes shall be obtained from a minimum of three (3) vendors either by the user department or by the Purchasing staff. At least two (2) of the vendors solicited shall be from certified historically underutilized businesses (HUBs) in compliance with Texas Local Government Code Sec. 252.0215 (See Historically Underutilized Businesses). Non-Council Bids: Purchasing issues an ITB which includes specifications and purchase terms and conditions submitted to vendors with a specific date and time to return a bid. The non-Council bid process follows an abbreviated process parallel to the formal bid process, although it does not require City Council approval.

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Non-Council bids take between one (1) week and three (3) weeks to complete from the date the ITB is posted.

After the quotes or bids are received and a vendor is chosen, the user department submits a requisition to the Purchasing Division for purchase order processing and retention.

3. Purchases over $50,000

Purchasing issues a formal sealed ITB/RFP/CSP solicitation, also known as a “Council bid,” which includes specifications and purchase terms and conditions submitted to vendors with a specific date and time to return a bid/proposal. Notice to bidders/proposers must be publicly advertised in the newspaper for two (2) consecutive weeks, with the first date of publication being at least fourteen (14) days before the date set to publicly open the bids or proposals. Council bids close on the 15th day or later, and all sealed bids and proposals must be submitted to Purchasing. Council bids take between fifteen (15) days and four (4) weeks to complete from the date the ITB/RFP/CSP is posted.

ITB: Purchasing conducts a public bid opening and tabulates the bids. RFP/CSP: Proposals are opened and strict confidentiality is kept to avoid disclosure of the contents of proposals to competing proposers until after the award by City Council.

After the bids/proposals are evaluated and a vendor is chosen for award, the user department submits an award recommendation memo to the Purchasing Manager. The award recommendation is placed on the next available agenda for City Council consideration and award.

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G. Guidelines for Purchases between $3,001 and $50,000 If competitive sealed bids are not used, price quotations should be solicited from an adequate number of vendors to ensure competition. Procedures for obtaining price quotations are not established by state law and are structured to the needs of the City of Richardson. City employees should use the following guidelines. To protect the integrity of the process, all solicitations of quotes shall comply with the following.

A. Vendors should be informed that only price quotes are being solicited at this time.

B. Vendors should not be privileged to quotes from other vendors.

C. Vendors should be rotated to ensure competition.

D. Justification for any sole source request should be documented on the requisition.

E. Purchasing should be contacted if additional vendors for a particular product or service are needed.

F. Purchasing should be contacted for historically underutilized businesses (HUBs) for purchases between $3,001 - $50,000.

G. Purchases should be monitored to determine if separate, sequential, or component purchases might exceed the bid limits.

H. Quotes should be submitted with a requisition to the Purchasing Department for vendor selection, processing, and ordering.

I. The lowest price should always be accepted, all other factors being equal.

J. The user department shall never place orders unless a purchase order has been obtained through the procedures established in the Purchasing Manual.

K. Purchasing reserves the right to request additional quotations from other known sources, if necessary, and will make the final decision on an award of the purchase.

L. Contact Purchasing staff with any concerns or questions you may have.

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H. Price Quotation Form

Purpose The price quotation form provides City employees a consistent means of soliciting quotes from prospective vendors for items not exceeding $50,000. This form is available in the Purchasing section of the Intranet.

Instructions for Completion

A. Enter your department and contact person.

B. Enter your department phone number.

C. Enter your department fax number.

D. Enter the name and address of the vendor, one for each vendor selected.

E. Enter the vendor contact name.

F. Enter the vendor phone number.

G. Enter the vendor fax number.

H. Enter the complete description of the item(s), including any installation, warranty or other pertinent information for consistent quotes.

I. Enter the estimated quantity to be purchased.

J. Enter the required delivery date.

K. Enter the fax number of the vendor to return the quote.

L. Enter the date by which the quote should be returned.

I. Bid Tabulation

The bid tabulation form may be used to record the prices from vendors for quick comparison. This form is available in the Purchasing section of the Intranet.

City of Richardson

Price Quotation Form

City Department

Department Name: Department Phone #: Department Fax #: Contact Name: Contact E-mail:

Vendor

Instructions: Fill out form completely and attach any additional pertinent information.

Vendor Name: Vendor Phone #: Vendor Contact Name:

Vendor Address: Vendor Fax #: Vendor Contact E-mail:

Item Description: Product Number/Code: Estimated Qty: Unit Price: Total Price:

$ __________ $ ____________

$ __________ $ ____________

$ __________ $ ____________

$ __________ $ ____________

Unless otherwise stated, all prices F.O.B. Destination. Shipping $ ____________

Comments or Deviations from

Specifications:

Warranty, if any: Certified Historically

Underutilized Business?

Yes No

Required Delivery Date: Date through which quoted price will be effective:

Signature of Authorized Vendor Contact: Date:

The City of Richardson is exempt from all Federal excise and state taxes.

This is a request for price quote only and does not constitute an order.

***Return completed quote to by ________________ ___, 20___ (E-mail Address)

BID NUMBER: DATE OPENED:

BID TABULATION

ITEM EST. UNIT UNIT AMOUNT UNIT AMOUNT UNIT AMOUNT UNIT AMOUNT

NO. QTY. PRICE PRICE PRICE PRICE

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

TOTAL GROSS PRICE

DELIVERY Included Included Included Included

DESCRIPTION

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V. PROCUREMENT CARD PROGRAM

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Procurement Card Program The City of Richardson procurement card program has been established to enable City staff to make small dollar purchases and travel and training arrangements quickly and efficiently. The procurement card is another method of making purchases for City goods and services. To maximize the benefits the City of Richardson receives from the procurement card program and to enhance the program’s success, all users receive a copy of the Procurement Card Policies and Procedures and sign their agreement to follow the program requirements. Cardholders are more likely to use the procurement card properly if they understand the following: How the program benefits cardholders as well as the City:

• Allows cardholders to obtain goods and services faster and easier. • Reduces paperwork and processing in the cardholder's department and in Finance. • Allows all groups and individuals involved in the program to be more effective and to

focus on the value-added aspects of their jobs. • Promotes cost savings through consolidated payment - one monthly payment to the

banking entity, versus multiple vendor payments.

Why cardholders have been selected to receive a corporate procurement card: • Job responsibilities require them to purchase certain types of goods or services.

How to use the procurement card:

• Ordering goods and services from vendors. • Handling credits, returns, and disputes. • Cardholders' responsibilities concerning monthly review and reconciliations.

The City’s policies and procedures governing the use of the procurement card:

• Transaction and monthly credit limits • Types of purchases within the parameters of the procurement card • Approved vendors

To whom cardholders should go for assistance:

• Bank of America Customer Service • Departmental Administrator • Program Administrator – Purchasing Manager

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A. Program Overview The purpose of the procurement card program is to establish a more efficient, cost-effective method of purchasing and paying for small dollar transactions. The program is designed as an alternative to the traditional purchasing process (petty cash or field purchase orders) for supplies and services. When used to its potential, the program significantly reduces the volume of purchase orders and related documentation including invoices and checks. In addition, corresponding work processes associated with ordering and check writing are eliminated. The procurement card can be used with any non-restricted vendor that accepts MasterCard as a form of payment. This chapter provides the general guidelines for using the procurement card. Cardholders must read it carefully. Their signature on the Cardholder Credit Card Agreement shows that they understand the intent of the program and agree to follow the established guidelines. The following important points should be reviewed before using the procurement card: • A procurement card is issued in an employee’s name. All purchases made on the

procurement card must be made only by that employee. A cardholder should not loan his or her card or card number to other employees for their use. The cardholder is responsible for the security of the procurement card and the transactions made with it. If the cardholder does not follow these guidelines when using the procurement card, he or she could receive disciplinary action up to and including termination of employment.

• The procurement card may be used at any non-restricted vendor or service provider that accepts MasterCard. It may be used for purchases made in store or by mail, telephone, fax, or internet.

• The procurement card may be used to purchase supplies and services less than the

single transaction limit that has been established for the card. It is not appropriate to split a purchase into multiple transactions in order to circumvent the intended control of the single transaction limit. Please contact the Program Administrator to discuss the options of making a purchase over the transaction or monthly limits assigned to the card.

• Use must not exceed the credit limit assigned to a card in a given month. • The cardholder must reconcile the statement received from Bank of America to ensure

all charges are accurate. The statement reconciliation MUST be completed within the timeline established by Information Technology to prevent accruing interest charges on the City’s monthly statement.

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• The procurement card is not intended to bypass appropriate purchasing or payment procedures as outlined in the City of Richardson Purchasing Manual. This program complements the existing processes available.

• The procurement card is not for personal use and should not be used to finance

personal expenses, even if the intent is to reimburse the City. • The procurement card must be returned to the Program Administrator upon termination

from employment with the City.

• The Program Administrator must be contacted when an existing cardholder is transferred to another department. A new card will be ordered with the new department.

• Exceptions to the guidelines contained within the Procurement Card Policies &

Procedures require City Manager’s Office approval.

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B. General Information Program Administrator – (Purchasing Manager) The Program Administrator is designated to answer questions, issue cards, and provide administration of the program. This person is knowledgeable on all procedures. The Program Administrator has a direct relationship with Bank of America. All procurement card requests must go through the Program Administrator or backup Program Administrator (Purchasing Supervisor).

Departmental Administrator A Departmental Administrator is designated by the Department Director to keep documentation for the procurement card activities within a department. Departmental Administrators are knowledgeable about the program. Cardholders should first contact the Departmental Administrator, who will then refer questions or potential problems to the Program Administrator, when necessary.

Cardholder The cardholder is designated by the Department Director to utilize the procurement card for purchasing small dollar supplies and services. The cardholder is responsible for following the guidelines contained in this policy regarding purchases, selection of vendors, security of the card, and monthly reconciliation.

Department Director The Department Director, or equivalent, is responsible for designating the Departmental Administrator, all cardholders within the department, and for reviewing monthly procurement card statements of cardholders to ensure purchases are made in accordance with City policy. The Department Director also assists the Program Administrator with assigning cardholder spending limits.

Bank of America Customer Service The procurement card program is serviced using a team approach with the Bank of America Customer Service Center. This center is available 24 hours a day, 7 days a week to assist the cardholder with general questions about the procurement card account. If a card is lost or stolen, Customer Service should be notified immediately. Customer Service number: (888) 449-2273

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C. Procurement Card Controls

Credit Limits All procurement cards have a monthly cardholder spending limit. Limits may vary for each cardholder and are established by the Program Administrator in conjunction with the Department Director.

Transaction Limits All procurement cards have a single transaction limit. Limits may vary for each cardholder and are established by the Program Administrator in conjunction with the Department Director. The single transaction limit is the amount available on the procurement card for a single purchase. A transaction includes the purchase price, plus freight. A cardholder should not attempt to make a purchase greater than his or her approved limit. Each cardholder is given information on the limits of his or her card upon signing up for the program. In order to change limits on any card, the Department Director should complete a Pro Card Request Form with the box marked “Change to existing Pro Card” and send the form to the Program Administrator. The Program Administrator will then process the change online through the Bank of America portal for managing procurement cards. *Please allow 2 to 3 business days to process any changes*

Restricted Vendors The procurement card program may be restricted for use with certain types of vendors and merchants. If a procurement card is presented for payment to these vendors, the authorization request will be declined. Cardholders should contact the Program Administrator if they feel a vendor should be added or deleted from the list of restricted merchants.

Improper Use of the Procurement Card Department Directors should address all unauthorized, improper, or misuse of the procurement card with the Cardholder immediately and any ongoing procurement card abuse or misuse should be addressed as part of the employee’s annual evaluation process. As outlined in the Cardholder Credit Card Agreement, unauthorized, improper, or misuse of the procurement card may result in disciplinary action up to and including termination of employment.

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D. Maintaining Your Procurement Card

Procurement Card Transaction Log Enclosed is a sample procurement card transaction log, which each cardholder may use to log each month’s transactions. The transaction log is not mandatory but is intended to provide cardholders a method for tracking expenditures while using the procurement card. Another use for the log would be for a cardholder to track his or her credit limit. The transaction log is available on the Intranet in the Purchasing section. Always obtain a receipt when using the procurement card. It is every cardholder's responsibility to ensure there is a receipt for each purchase. All receipts should be kept with the departmental records for audit and review purposes. The log and the receipts will be each cardholder's back up to the monthly procurement card charges.

Cardholder Responsibilities At the end of each billing cycle, every cardholder receives a cardholder monthly statement, which lists purchases made to that account. Upon receipt of this statement, the cardholder should reconcile the statement with his or her procurement card transaction log and/or receipts. Departmental Administrators should retain receipts, statements, and all back up paperwork for each cardholder for three (3) years beyond the fiscal year in which the transaction occurred. Exception: Receipts and paperwork related to transactions for capital projects (200 and 300 series account numbers) should be retained for twenty-six (26) years.

Traveling with the Procurement Card The procurement card is an excellent payment tool for travel and training. The pro card may be used to book airfare, lodging at hotels, training registrations, and such expenses directly related to City-approved travel for employees. The pro card is intended for City purchases only and is not intended to be used to pay for travel expenses for spouses, even if those expenses are being reimbursed to the City. If a cardholder is traveling with his or her spouse on City business, only the cardholder’s business expenses should be charged to the pro card. Expenses for spouses are to be paid by personal funds at the time of purchase. This policy also applies to other non-City related travel purchases such as movie rentals, miscellaneous sundries, entertainment, alcoholic beverages, etc. Hotels are very accommodating to split these charges upon check out. Exception: Travel purchase restrictions on paying for spouses, entertainment, alcoholic beverages, etc. may be waived with City Manager’s Office approval.

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General (Non-Travel) Purchases The procurement card is an excellent payment tool for purchasing small dollar supplies and services less than the single transaction limit that has been established for the cardholder. The pro card is intended for City purchases only and is not intended to be used to pay for personal expenses, even if those expenses are being reimbursed to the City. If a cardholder is with his or her spouse while conducting City business, only the cardholder’s business expenses should be charged to the pro card. Expenses for spouses are to be paid by personal funds at the time of purchase. This policy also applies to other non-City related purchases such as entertainment, alcoholic beverages, etc. Exception: Non-travel purchase restrictions on paying for spouses, entertainment, alcoholic beverages, etc. may be waived with City Manager’s Office approval.

Sales and Use Tax The City of Richardson is a tax-exempt entity and should not pay sales tax. Procurement cards have the City’s federal identification number printed on the card (upper right-hand corner), and the merchant should be reminded that sales tax should not be included in the transaction. The card does not automatically alert the merchant regarding the City’s exempt status. Cardholders must tell merchants at the time of check out that this is a tax-exempt purchase and that no tax should be added to the sale. Cardholders should check the store receipt prior to leaving the store to make sure sales tax was not included in the total. If tax was added to the sale, then the cardholder should ask the merchant to credit the amount of the sales tax, at this time. It is the cardholder’s responsibility to see that no sales tax is paid or that credit is received on any sales tax paid by mistake on all transactions. Exception: Sales tax on restaurant meals, air travel, and parking. As always, the cardholder should seek an exemption on sales tax at these locations; however, we understand it may not be granted. Sales tax should be exempt on catered and preordered meals. Cardholders should provide the vendor a tax-exempt certificate, which is available on the Intranet, before the order is placed. City employees are not exempt from paying hotel lodging taxes.

Annual Contracts The City has several annual contracts with preferred vendors for a variety of products and services. Cardholders should contact the vendor on the City’s annual contract to determine the availability of needed supplies and whether their job falls within the scope of the contract prior to making a purchase from a non-preferred vendor. If a cardholder makes a purchase at a non-preferred vendor, an appropriate justification for the purchase should be documented on the receipt.

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Technology Purchases All computer hardware (e.g. PCs, servers, laptops, iPads, and printers) and software purchases must be directed through Information Technology, regardless of whether the device or software is connected to the City’s network. Cardholders must receive written approval from Information Technology prior to making the purchase.

Security of the Procurement card The cardholder is responsible for the security of the card. This card should be treated with the same level of care as the cardholder would use with his or her own personal charge cards. The procurement card and account number should be carefully guarded, should not be posted in a work area or left in a conspicuous place, and should be kept in an accessible, but secure location. Procurement card account numbers should be redacted from all back-up documentation maintained by the department. The only person authorized to use the procurement card and account number is the cardholder whose name appears on the card. Procurement cards are not to be shared by other employees as individual cards may be issued to any employee as requested by the Department Director. The card is to be used for business purposes only.

Online and Mobile Purchases When purchasing goods or services online or through mobile applications from vendors that save credit card information within their system, cardholders should consider creating a separate account or login tied to their City e-mail address. This account separation will reduce the likelihood of inadvertently charging a personal expense to the City pro card. Examples include online stores (e.g., Amazon), food delivery, and ride-hailing services. Sales tax exemptions should be tied to these business accounts to ensure sales tax is not charged on City purchases.

Employee Termination The procurement card must be returned to the Program Administrator upon a cardholder’s transfer to another department or upon termination from employment with the City of Richardson.

Lost or Stolen Cards If a procurement card is lost or stolen, the cardholder must immediately contact Bank of America Customer Service at (888) 449-2273. After contacting Bank of America, the Program Administrator must be notified at (972) 744-4130. Prompt action can reduce the City’s liability for fraudulent activity.

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E. Procurement Card Procedures Procurement cards are centrally distributed through the Program Administrator. When a new card is issued, Bank of America sends it to the Program Administrator for distribution to the cardholder. The card should not be released to the cardholder until he or she has gone through training, has received all supplies related to the program, and has signed the Cardholder Credit Card Agreement. The following items are provided to each cardholder during training:

1. Cardholder Credit Card Agreement: This is an agreement between the cardholder and the City of Richardson, which affirms that the cardholder has read and understands the policy and procedures governing use of the procurement card.

2. Procurement Card Program Procedures: This information is an excerpt from

the City of Richardson Purchasing Manual, which outlines the City's policies and procedures for the procurement card program and is used as a training tool for new cardholders.

Procurement Card Activation The cardholder must immediately call the number specified on the label of the new card to activate the procurement card. Upon receipt of the card, the cardholder should sign the back of the procurement card and always keep the card in a secure place.

Chip and Personal Identification Number (“PIN”) Technology Bank of America pro cards issued since late 2016 have been enabled with chip and PIN technology to help reduce the occurrence of fraud for in-person transactions. At the time of chip card activation, the cardholder chooses a 4-digit PIN. The PIN shall be kept confidential by the cardholder with the same level of security the cardholder provides to the PIN on a personal debit card. A cardholder with a chip card who is later reissued a new chip card has the option of keeping the existing PIN or setting a new PIN for the new card. The PIN may not be required on all merchant transactions; however, if prompted, the cardholder must enter the 4-digit PIN to complete the transaction.

Making the Purchase Cardholders should promote and encourage positive interactions with suppliers. Honesty and courtesy are essential ingredients in all aspects of a buyer/supplier relationship.

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Receiving Supplies and Services A copy of the charge slip, sales receipt, or any other information related to the purchase must be kept on each transaction. Receipts should be itemized as much as possible to show what is being purchased. If the receipt does not give some type of description, the cardholder should write on the receipt exactly what was purchased. This requirement also applies to business meals purchased at restaurants. Normally, the merchant will provide an itemized store receipt, as well as, the credit card transaction receipt, which only shows the merchant and total sale charged to the credit card. Both receipts should be retained in the departmental files.

Copies of travel related procurement card receipts should also be kept with the procurement card files. The original travel receipts should be sent to Accounting attached to the Travel Expense Form.

Procurement Card Payment Employees do not pay their own monthly statement. The program does not affect their credit rating in any way. The procurement card program carries corporate, not individual, liability.

Returns, Credits and Disputed Charges Should a problem arise with a purchased item, service or charge, every attempt should be made to first resolve the issue directly with the supplier. Review of future statements is vital to ensure the account is properly credited for returns, credits and disputed charges. The returned, credited or disputed item may be noted on the transaction log.

• Returns: If a cardholder needs to return an item to a supplier, he or she should contact the supplier and obtain instructions for return. Note that some suppliers may charge a restocking or handling fee for returns. All returns should be documented with the transaction for future use.

• Credits: If the supplier accepts an item as a return, a credit for this item should

appear on the following month's statement. All credits should be tracked by the cardholder until received.

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• Disputed Charges: Disputed charges must be handled in a timely manner in order to receive a credit. If the City does not report the dispute within a reasonable period of time, the City is responsible for the charge. Disputed charges should be processed as follows: 1. Once a discrepancy is detected, the cardholder should contact the supplier and

attempt to resolve the problem. If the charge is fraudulent, the cardholder should immediately contact Bank of America to report the fraud, cancel the card, and be reissued a new card.

2. If the cardholder and merchant can resolve the dispute, a credit is to be issued

and should appear on the next billing cycle statement. The cardholder should monitor the statement for the pending credit.

3. If the credit does not appear on the next statement, the Departmental

Administrator should code any unresolved disputed charges as “Dispute Pending” on the monthly reconciliation.

4. The status/reason for the dispute should be noted in the “Comments” section of

the monthly reconciliation.

Note: It is not necessary to code a charge as “Dispute Pending” if the dispute has been resolved with the vendor. This code should only be selected if a dispute is unresolved when the monthly statement closes. Sales tax paid by the cardholder is not a reason to code a charge as “Dispute Pending.”

5. The cardholder or Departmental Administrator should immediately advise the

Program Administrator of the disputed charge via e-mail so the dispute can be submitted to Bank of America.

6. Properly document the details of the disputed charge on the departmental

transaction log and/or departmental files.

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F. Procurement Card Guidelines All cardholders should follow these guidelines below when using the procurement card:

1. Determine if the transaction is an acceptable use of the card and verify that it does not exceed the established monthly cardholder spending limit or single transaction limit for the card.

2. Identify the supplier. Orders may be placed by phone, mail, fax, internet, or in person.

3. If the order is by mail, specify cardholder name, company name, department name

and shipping instructions. Also, specify the procurement card number, expiration date and name as it appears on the card.

4. Make sure that sales tax is not included in the purchase as the City of Richardson is

a tax-exempt entity. The City’s tax certificate is available on the Intranet should the merchant request a copy. The City’s tax ID number is printed in the upper right hand corner of the card.

5. Confirm pricing and freight.

6. Request that a hard copy of the pricing and freight be faxed to the cardholder and/or

included in the shipment of supplies.

7. Request that the supplier indicate the cardholder name and the words "P-Card" appear on all packing and lists and box labels. This will aid in the delivery of the item being received.

8. If a cardholder cannot resolve a disputed item directly with the vendor, the Program

Administrator will contact Bank of America to dispute the charge. Bank of America will place the charge in a “State of Dispute” and the account may be given a provisional credit until receipt of adequate documentation from the vendor. If the documentation appears to be in order, the transaction will be re-posted to the account and the dispute considered closed. If the charge is suspected to be fraudulent, the card will be immediately blocked, continue to have a provisional credit (if given) and an investigation of the charge will continue. A new card will then be re-issued to the cardholder, if appropriate. If the charge appears legitimate, the transaction will then post to the new account.

9. To comply with the Internal Revenue Service regulations (Publication 463), business

meal transactions must include the names of attendees and the business purpose of the meal on the receipt copy. This policy also requires the same information mentioned above be documented in the “Comments” section of the monthly reconciliation program.

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Departmental Procurement Card Audits The Finance Department conducts audits so all City departments are audited at least once each fiscal year. The audit process evaluates compliance with the procedures outlined in the documents provided in this manual. Upon completion of a departmental audit, a written report is completed and sent to the Departmental Administrator, the Department Director, the Program Administrator, and the Director of Finance and/or Assistant Director of Finance addressing the results of the audit. The Director of Finance may provide a copy of the report to the City Manager’s Office if appropriate.

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G. Commonly Asked Questions For what types of purchases should I use the pro card?

The City of Richardson Purchasing Division governs how you can use the pro card. The Program Administrator and your Department Director determine the types of purchases and maximum dollar amount for which you will be authorized.

In what ways do I benefit from using the pro card?

You enjoy reduced paperwork, direct contact with vendors, quick and efficient order processing, faster delivery, and fewer errors.

How does the City benefit from the pro card program?

The City enjoys greater productivity as a result of reduced paperwork, savings from consolidated multiple vendor invoices to one statement from Bank of America, and greater control over spending.

What should I do if my procurement card is lost or stolen?

Immediately call Bank of America Customer Service, toll-free at (888) 449-2273, to report the procurement card missing and request a replacement. Immediately advise the Program Administrator of your actions.

What do I do if a purchase is denied?

Your purchase may have exceeded a monthly spending or single transaction limit, the City excluded that type of vendor, or the vendor is not equipped to accept MasterCard as a form of payment. Contact Bank of America Customer Service at (888) 449-2273 to determine the reason for the decline.

What should I do if I want to change the “credit” or “per transaction” limits?

Contact your Department Director, who will contact the Program Administrator. Will use of the pro card affect my credit report?

No. The procurement card is a corporate liability card and carries no personal liability for cardholders that use the procurement card according to City policy.

Whom should I contact to resolve an error or dispute concerning my account?

You should first contact the vendor. Most exceptions or issues can be resolved between you and the vendor. If you cannot resolve an issue with the vendor, contact the Program Administrator who will file a dispute with Bank of America.

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H. Cardholder Credit Card Agreement Each cardholder is required to sign a Cardholder Credit Card Agreement which states that he or she understands the rules, regulations, and procedures of the program. The agreement is as follows:

The City of Richardson, Texas, is pleased to present you with this credit card for official City use. It represents trust in you and your empowerment as a responsible agent for the City to safeguard and protect City assets. The undersigned hereby acknowledges receipt of a City of Richardson, Texas MasterCard credit card. As an authorized cardholder, the undersigned agrees to comply with the terms and conditions of this Agreement, the credit card procedures, and any policies or rules governing credit card usage adopted by the City from time to time. The undersigned acknowledges receipt of a copy of this Agreement and confirms that he or she has read and understands the terms and conditions set forth herein. The undersigned acknowledges that the City of Richardson, Texas is liable to Bank of America and/or MasterCard for all City of Richardson charges made pursuant to this credit card. In the event this credit card is lost or stolen, the undersigned shall be liable for any deductible or other expenses or costs charged by Bank of America and/or MasterCard to the City of Richardson, Texas, for the unauthorized use of the lost credit card. The undersigned further agrees that this credit card may be used only for City-approved purchases and that the credit card may not be used to finance personal purchases. The undersigned agrees and acknowledges that the City of Richardson, Texas may audit the undersigned's use of this credit card and will report any unauthorized use or charges to the employee and his or her Department Director. The undersigned shall be liable for all unauthorized charges made through the use of this credit card. The undersigned understands that the unauthorized, improper, or misuse of this credit card may result in disciplinary action up to and including termination of employment. The undersigned further understands that any unauthorized, improper, or misuse of this credit card may subject the undersigned to criminal prosecution and/or to civil suit for the collection of any sums due and owing to Bank of America and/or MasterCard. The undersigned hereby authorizes the City of Richardson, Texas to implement a payroll deduction and to deduct from his or her salary and other compensation due an amount equal to the total of any unauthorized charges to

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Cardholder Credit Card Agreement Continued

the City credit card account. The undersigned further agrees that the City of Richardson, Texas may collect any amounts owed by him or her as a result of unauthorized, improper, or misuse of this credit card even if he or she is no longer an employee of the City.

The undersigned further understands that the City of Richardson, Texas may terminate his or her right to use this credit card at any time for any reason. The undersigned agrees to immediately return this credit card to his or her supervisor immediately upon request or upon termination of employment.

CARDHOLDER: Signature: _________________________________ Printed Name: _____________________________ Date: ____________________________________ PROGRAM ADMINISTRATOR: Signature: ________________________________ Printed Name: TODD GASTORF, MPA, CPPB Date: ___________________________________

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I. Statement Reconciliation Instructions

The Pro Card reconciliation program makes the process of approving/disputing charges each month easier and more efficient.

Each department is assigned a primary and secondary administrator responsible for approving

the department’s Pro Card charges and entering comments for each transaction. No later than three (3) working days after the 15th of each month, the administrators receive an

e-mail from Information Technology containing the previous month’s Pro Card charges. The administrators have approximately five (5) working days to approve these charges and enter comments.

Department Directors or Assistant Directors, or equivalent, are responsible for electronically

reviewing the department’s Pro Card charges each month.

IMPORTANT: Each month, the transaction listing is for the previous transaction period only. To keep a record of all transactions, administrators will need to print the charges each month.

THIS PROGRAM DOES NOT VALIDATE ANY ACCOUNT/PROJECT NUMBERS, NOR

DOES IT VERIFY THAT FUNDS ARE AVAILABLE IN THE ACCOUNTS/PROJECTS BEING USED. DEPARTMENTAL ADMINISTRATORS ARE RESPONSIBLE FOR VERIFYING SUFFICIENT FUNDS EXIST IN THE NECESSARY ACCOUNTS BEFORE APPROVING CHARGES.

Using the Pro Card System When administrators receive the e-mail each month, the charges will be new. Each transaction will be assigned a default fund and department account number. These numbers have been assigned based on the department for the cardholder (e.g., Purchasing is assigned 011-0553-514-****). As each charge is approved or disputed, it will move from the NEW screen to the APPROVED or DISPUTE PENDING screen. To Change an Account Number:

1. Double-click on the transaction. 2. Click on the EDIT button or double-click in the account number field. 3. Click the CLOSE button. You may also click APPROVE at this point.

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To Add Comments for a Transaction: 1. Click the EDIT button. 2. Add a valid account number and a comment describing the purpose of each transaction prior

to approval. Comments must be included before the system will approve the transaction. 3. Click the APPROVE button to accept the comments.

To Split the Transaction Charges:

1. Double-click on the transaction. 2. Click on the SPLIT button. 3. Change the amount on the listed account/project number. 4. Click the ADD button to add another account number. 5. Click inside the newly added account field, enter the next account number, and amount to be

charged. 6. Click ADD again.

Repeat steps above until all the necessary accounts/projects have been added. Click the “Approve (Ready for Director Review)” or “Dispute Pending” button at the top. To Change a Transaction:

1. If you need to change an account/project number or amount, double-click on the transaction. 2. Click the EDIT button. 3. Click the UPDATE button. 4. Select the account/project number you would like to change, then click OK. 5. Make the necessary changes. 6. Click the ADD button to accept the changes.

To Approve All Charges:

1. At the New screen, click the APPROVE ALL CHARGES button. This will approve all the NEW charges with the default account/project number.

To Print Charges:

1. From either the New/Approved/Dispute Pending screen, press the PRINT/EMAIL CHARGES button.

2. Click on the small down arrow next to the Cardholder field. 3. Select the name of the cardholder to print, click OK. 4. Click the PRINT button.

To E-Mail Charges:

1. From either the New/Approved/Dispute Pending screen, press the PRINT/EMAIL CHARGES button.

2. Click on the small down arrow next to the Cardholder field. 3. Select the name of the cardholder to print, click OK. 4. Click the EMAIL button. 5. This will generate an e-mail placing the selected charges in the body of the message. You

will need to address the e-mail just as you would any other message.

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Keeping Departmental Records: For audit purposes, the following information must be retained in the department for each cardholder for three (3) years beyond the fiscal year in which the transaction occurred:

1. Monthly transaction log. 2. Receipts for each transaction. 3. Bank of America credit card statement that is received via U.S. Postal Service for each

cardholder.

CARDHOLDER: ______________

DEPARTMENT: ______________

CITY OF RICHARDSONPRO CARD

TRANSACTION LOG

FOR THE MONTH OF: __________________

MONTHLY CREDIT LIMIT: $_____________

TRANSACTION DATE POSTING DATE MERCHANT DESCRIPTION ACCOUNT NUMBER TRANSACTION

AMOUNTCREDIT

BALANCE

CARDHOLDER SIGNATURE: _______________________________________________ DATE: ____________________

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K. STATEMENT REVIEW & PAYMENT PROCESS

1. Information Technology downloads the monthly charges from the Smart Data software from Bank of America on or about the 17th of each month.

2. Information Technology e-mails the previous month’s transactions to Department Directors,

Department Assistant Directors, and Departmental Administrators. Each department has approximately five (5) working days to enter comments and approve the transactions.

3. Purchasing Manager reviews the initial report for inappropriate or questionable charges,

international fees, and credits or purchase adjustments as a result of submission of paperwork for disputed charges.

4. Purchasing Manager contacts cardholders for an explanation of any inappropriate or

questionable charges either by e-mail or telephone call and makes notes of response on monthly statement backup.

5. Once all transactions have been approved by the departments, Information Technology

uploads the approved transactions into HTE, creates a batch file, and pushes it into the GMBA, which prints the Adjusting Journal Edit List, report #GM312V. Purchasing and Accounting receive a copy of this report.

6. Purchasing Manager reconciles the Adjusting Journal Edit List to the hard copy of the Bank

of America monthly statement and prepares a coversheet for Accounting approving the payment and outlining any additional debits or credits that may not have downloaded on the Adjusting Journal Edit List.

7. Purchasing Manager contacts Bank of America to file disputes for all disputed charges.

8. Purchasing Manager provides the Director of Finance a copy of the monthly statement and

the payment cover sheet provided to Accounting for review.

9. Director of Finance reviews the monthly statement for questionable or inappropriate charges and, if detected, the Purchasing Manager contacts the cardholder for an explanation of the charge and keeps a copy of the response with the monthly statement backup.

10. Purchasing Manager provides Financial Analyst a copy of the remarks from employees on

questionable transactions for follow up and confirmation during departmental audits.

11. Director of Finance forwards a copy of the monthly procurement card statement to City Manager’s Office for review.

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L. PROCUREMENT CARD AUDIT PROCESS

1. Transactions are monitored on an ongoing basis for adherence with procurement card procedures. Financial Analyst may request additional information about transactions identified during this review.

2. Financial Analyst schedules audits so that all City departments are audited at least once every two fiscal years.

3. Financial Analyst selects an audit timeframe, requests the receipts and transaction

detail for all cardholders in the department being audited, and obtains transaction information from the monthly reconciliation program for the timeframe being audited.

4. Records are audited in the following areas:

a. Completeness of records. b. Appropriate supporting documentation for each purpose. c. Documentation and nature of missing receipts. d. Sales tax paid and documentation of collection efforts. e. Meals

i. Purpose of meal and City staff involved. ii. Patterns of potential abuse.

f. Goods i. Documentation of purpose. ii. If requested, existence of items.

g. Travel i. Potential travel items may be crosschecked with Accounting to verify

that expense reports were completed. h. Use of procurement cards for prohibited items or at restricted vendors. i. Use of procurement cards by non-cardholders. j. Use of Comments field in monthly reconciliation program to describe

purchases.

5. Financial Analyst prepares a report detailing the audit. a. Financial Analyst reviews questionable items with department and receives

appropriate responses to include in report.

6. Completed report is turned in to the Assistant Director of Finance for review. a. Financial Analyst meets with Departmental Administrator and Department

Director to discuss audit findings and obtain their signatures on the audit report. Copies of the signed report are provided to the department and the Program Administrator.

b. Items requiring management follow-up are scheduled between the Director of Finance and the appropriate department head.

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VI. PURCHASING METHODS

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A. Competitive Sealed Bids Competitive sealed bids are required on purchases of more than $50,000 and are called “Council bids” as the City Council must approve all purchases over this threshold. Purchases over $50,000 must be expressly approved in advance and require legal advertising and formal sealed bids containing detailed specifications. Exceptions to competitive sealed bids are architectural, engineering, or professional services and certain types of captive maintenance agreements. The City Manager has authority to sign these types of contracts through the City of Richardson Administrative Code. Each year the newly approved budget is reviewed and items which can be combined for volume purchases are grouped together and purchased based on the availability of funds and priority needs of the various departments. Procedures for Competitive Sealed Bids

1. The department for which the items are budgeted is responsible for preparing or aiding Purchasing in the development of specifications. In the case of vehicles, the Fleet Manager coordinates specification development with the individual department(s) and forwards them to Purchasing.

2. The department submits an automated purchase requisition to Purchasing with the

required delivery dates, quantities, and detailed specifications.

3. Purchasing certifies the availability of funds and appropriateness of account code(s).

4. Purchasing assigns the bid package a number. Bid packages are assigned bid numbers in ascending numerical sequence followed by a two (2) digit number identifying the current fiscal year (e.g., 01-17, 02-17, etc.).

5. Purchasing prepares the ITB, legal advertisements, and bidder mailing lists. In

conjunction with the user department, Purchasing coordinates advertising dates, pre-bid conference, and the date and time for the bid opening.

6. Purchasing receives the bids and holds them in a secure place until the date of the

bid opening at which time they are presented to the Purchasing Manager or Buyer as appropriate.

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7. Bid openings are conducted by the Purchasing Manager or Buyer and take place at a pre-designated place as specified in the ITB. All bid openings are open to the public.

8. Purchasing prepares a tabulation for each item or group of items following the bid opening and posts the bid tabulation on the Internet. Purchasing consults with user department representatives in order to arrive at a mutual agreement for the recommendation of award.

9. In the event an agreement cannot be reached between the department

representatives and Purchasing, the Director of Finance, the department director, the department representative, and the Purchasing Manager will meet jointly to resolve their differences of opinion.

10. Once a decision has been made on the recommendation of award, the department

director or assistant director forwards a memo addressed to the Purchasing Manager, which shall include the following information:

• The vendor recommended for award of the contract. • The amount budgeted for the expenditure. • The account number for which the expenditure should be charged.

If the department is recommending award to a vendor other than the apparent low bidder, the memo must outline the areas where the low bidder does not possess the full capability to meet all requirements of the contract. For Council awards related to capital improvements, the Director of Finance and/or Assistant Director of Finance review(s) financial information for the lowest responsible bidder prior to award recommendation. Bids should be awarded to the lowest responsible bidder meeting all specifications unless the bid is being awarded based on “best value” criteria.

11. The Purchasing Manager prepares the City Council agenda packet for the bid and

places it on the next scheduled agenda.

12. Upon approval by the City Council, Purchasing prepares and issues the purchase order(s) and place the order(s) with the appropriate vendor(s).

13. After the goods/services are received, the department forwards all receiving

information (e.g., delivery ticket, packing slip, freight bill) with the purchase order or a partial receipt voucher to Accounting.

14. Should a problem exist with the goods/services received that would warrant a delay

in payment, Accounting must be notified immediately by memo, e-mail, or receiving report describing the problem and requisitioning a “hold” on the invoice until the problem is resolved. Purchasing should be informed as to any status change of the order by the division that received the goods.

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15. If one or more items are back-ordered (e.g., only a portion of the items are received in a shipment), only the quantities and items received should be entered on the receiving documents.

16. Accounting pays the invoice and retains a copy according to document retention

requirements.

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B. Request for Proposals (“RFP”) and

Competitive Sealed Proposals (“CSP”) The following procedure is used for the development, solicitation, receipt, processing, evaluation, and award of RFPs or CSPs. The procedure identifies the differences in proposals, requests for information, and requests for qualifications. A proposal is a package of documents needed by the vendor in order to respond to the requirements of the City. The main characteristics of a proposal are:

• The specification is usually written using performance standards rather than the description of the goods or services. The specification also lists the factors by which the proposal will be judged and the weight to be given to each factor.

• Vendors submit proposals of their own design for a product or service to satisfy the

requirements set forth in the proposal. Proposals may incorporate entirely different methods, equipment, or services to accomplish the same performance.

• After the proposals are received, the City may enter into negotiations with vendors in

order to arrive at the best possible proposal from each vendor.

• Throughout the process of evaluation, each member of the committee shall maintain confidentiality of the process. No committee member shall transmit, communicate, or otherwise convey preliminary conclusions that a given vendor may be selected. All internal workings shall be kept confidential until the committee has completed its work and a contract has been awarded.

Elements of a Proposal The RFP package of documents may include, but shall not be limited to:

• Standard terms and conditions • Special provisions and vendor instructions • Pricing • Specifications • Evaluation criteria and weights • Signature page

Purchasing has established proposal clauses, examples of evaluation criteria, examples of previous proposals, and can help the user department with the process at any time.

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Receiving and Opening RFPs

1. Proposals must be returned in a sealed envelope with the proposal number, closing time, and date clearly marked on the outside of the envelope/container. Proposals may be received electronically.

2. At the prescribed date and time, proposals are publicly opened and forwarded to the user department for evaluation and negotiations. If a proposer wants to attend the proposal opening, only the names of the responding vendors may be announced (price may also be announced at a CSP opening) as the contents cannot be disclosed until after contract award.

3. Proposals received after the closing date and time will be returned to the proposer unopened.

4. All details of the proposals received are kept confidential throughout the proposal evaluation process until contract award.

Tabulating and Evaluation The Purchasing Division works with the evaluation committee to tabulate and evaluate the proposals. When the proposals are opened, the results are evaluated for specified requested items/conditions. The following items are representative of the actions to be taken:

1. Double check all calculations. 2. Extend the unit prices to a total price for the requested quantity. 3. Verify the proposer signature is by a person authorized to sign for the vendor. 4. Verify proposal meets all requirements listed in the specifications. List all areas

where the proposal fails to meet any conditions included in the specifications and whether any failures disqualify the proposal.

5. Verify all requested documents (literature, references, financial, insurance, etc.) are included.

6. Evaluate the proposal against the desired, ideal system. 7. Evaluate the proposal against the weights assigned in the RFP. 8. Detail areas to be negotiated, including desired changes in the proposal. 9. Evaluate which offerors submitted a responsive proposal (one meeting all criteria)

and the experience factor with the desired system.

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Weighted Factors for Evaluation The law requires cities using competitive sealed proposals to evaluate using a set of weighted factors. The factors and their weights must be stated in the proposal. The following are guidelines only for the kinds of factors that might be used. Any factors may be used that would determine the best value for the City.

Price Service Response Time Proposal Content Payment Options Experience of Staff Upgrade Capability Financial Resources Cost of Maintenance Service Capability Reputation/References Compliance with Proposal Warranty Life Cycle Costing Insurance and Indemnification Other Governmental Experience

Negotiating Different types of proposals have different rules regarding vendor negotiations. Check with Purchasing to see how your proposal may be negotiated. Some suggestions on conducting negotiations are:

• Have your goals firmly in mind. • Maintain flexibility. • Establish a negotiation team. • Have a lead negotiator. • Do not confuse rhetoric with the ability to deliver. • Find common grounds. • After the first round, meet with team to evaluate your position. • Make judicious cuts. Document any reasons for the cuts. • Repeat these steps until a final decision is reached. • The decision must be based on the weighted factors

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C. Request for Information (“RFI”) and

Request for Qualifications (“RFQ”) An RFI is a non-binding method used to obtain comments, feedback or reactions from potential vendors prior to the issuing of a solicitation. The RFI is not used as a basis for award and is not formally advertised since it is basically market research. The Purchasing Division suggests research be done on an informal level with vendors, peers, and/or trade magazines in order to have the information needed for a solid proposal. If the user department does not have enough available information to formulate a proposal, a written request for information may be used as a way to gather information only. An RFQ is a document issued by Purchasing to obtain statements of qualifications of potential development teams or individuals (i.e. consultants) to gauge potential competition in the marketplace, prior to issuing the solicitation. Proposals for Personal, Professional or Planning Services Proposals may also be used to procure professional services. The Professional Services Procurement Act (Texas Government Code Chapter 2254) prohibits using competitive bids to procure specific professional services (see list below); however, there is no problem with using a concept based on the competitive proposal to obtain qualifications and rates charged for professional services from interested professionals. The only requirement is that selection not be based on a competitive sealed bid or proposal but on the criteria as outlined in Texas Government Code Chapter 2254, which requires the selection of the professional be based on qualifications over price. The following professions have been upheld as professional services by statute:

• Accounting (Certified Public Accountant) • Architecture • Landscape architecture • Land surveying • Medicine • Optometry • Professional engineering • Real estate appraising (state certified or licensed) • Professional nursing

Professional services have been held by Texas courts to involve those services which are predominantly mental or intellectual, rather than physical or manual.

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Quick Reference for Request for Proposals/Information/Qualifications

Responsibility Action

1) Department Recognizes need for RFP Begins to gather information Creates requisition Develops requirements/criteria Decides weighted factors Drafts specifications/requirements Contacts Purchasing

2) Purchasing Division Reviews/refines proposal documents

Inserts any special provisions, terms/conditions Develops proposal vendor list with department Assigns proposal number Advertises, if applicable Holds pre-bid conference, if applicable Releases proposals Receives and opens proposals (only the names of respondents are publicly disclosed at this time)

3) Evaluation Committee Evaluates and negotiates proposal that provides the best value to the city

4) Department Prepares award recommendation & supporting

documentation

5) Purchasing Prepares award paperwork and places on next City Council agenda Upon award, creates purchase order

6) Department Accepts delivery and performs contract

administration to completion

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D. Cooperative Purchasing Interlocal Agreements Texas Government Code Chapter 791 and Texas Local Government Code Chapter 271 authorizes local governments to enter into interlocal agreements with other governmental jurisdictions including all states within the United States, independent school districts, counties, councils of governments, and non-profit corporations created to provide various governmental functions/services (such as cooperative purchasing). Furthermore, Texas LGC Chapter 271, Subchapter D provides for the extension of State of Texas contracts/prices/bids to participating local governments. The City of Richardson has interlocal agreements with various entities throughout the State of Texas and is a member of several cooperative purchasing programs throughout the United States. A list of the current cooperative purchasing programs in which the City participates is available on the City website:

http://www.cor.net/departments/purchasing/doing-business-with-the-city Cooperative purchasing saves time and effort over competitively bidding our own items and allows us to combine our purchasing power with other entities to achieve lower prices on various goods and services.

http://www.cor.net/departments/purchasing/doing-business-with-the-city

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E. Fleet and/or Rolling Stock Purchases All requests for the purchase of new and/or replacement vehicles and equipment shall be coordinated through Fleet Services. Fleet Services is responsible for making recommendations for purchases for all departments taking into consideration the following three criteria:

1. Age of the vehicle and equipment 2. Total miles on the vehicle or number of hours on the piece of equipment 3. Repair history on the unit

A vehicle inventory report is run each year to identify all vehicles and equipment in the city fleet meeting the replacement criteria. The vehicles and equipment which meet all criteria are further assessed by the Fleet Manager, who then works with the user department to determine the specifications for new vehicles and equipment. The Fleet Manager will submit a list of vehicles and equipment recommended for replacement during the annual budget process. If approved in the budget process, the Fleet Manager works with Purchasing for the most cost-effective purchasing method – competitive bidding or purchasing through one of many cooperative purchasing programs.

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VII. SPECIFICATIONS

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Specifications

Definition A specification is a concise written description of a good or service an entity seeks to buy, and the requirements the vendor must meet in order to be considered for the award. A specification may include requirements for testing, inspection or preparing an item for delivery, or preparing or installing it for use. The specification is the total description of the purchase. A. Purpose of Specifications

The purpose of any specification is to provide Purchasing personnel with clear guides to purchasing, and to provide vendors with firm criteria of minimum product or service acceptability. A good specification has four characteristics:

1. It sets a minimum acceptability of the goods or services. The term “minimum

acceptability” is key, since the vendor must know the minimum standard to determine what to provide. A standard too high means tax dollars may be wasted. A standard too low means the goods or services will not meet the expectations of the user.

2. It should promote competitive bidding. The maximum number of responsible

vendors should be able to bid the specification. Restrictive specifications decrease competition.

3. It should contain provisions for reasonable tests and inspections for acceptability

of the good or service. The methods and timing of testing and inspection must be indicated in the specification. Tests should refer to nationally recognized practices and standards, whenever possible.

4. It should provide for an equitable award to the lowest responsible bidder. The

buyer obtains goods or services that will perform to expectations, and the vendor is able to provide the goods or services at an agreeable price.

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B. Preparing Specifications

The specifications may be prepared by the Purchasing Division, the user department, or by a professional consultant hired by the City. The final acceptance of the specifications rests with the Purchasing Division. For more information or assistance in writing proper bid specifications, please call the Purchasing Division at (972) 744-4130.

C. Best Value

If the sealed competitive bidding request applies to the contract for goods or services, the contract may be awarded to the lowest, responsible bidder or to the bidder who provides the goods or services at the best value to the City which emphasizes value over price. In determining the best value, 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 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 & nonprofit organizations employing persons with disabilities;

• The total long-term cost to the City to acquire the bidder’s goods or services; and

• Any relevant criteria specifically listed in the request for bids or proposals.

When using the best value method of procurement, a weighted-point method of scoring the evaluation criteria shall be used.

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VIII. THE PURCHASING PROCESS

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A. Field Purchase Order (“FPO”) Purpose The FPO allows individual departments to place orders of a minimum of $10.00 up to a maximum of $3,000.00 for certain supplies, materials, or services directly with vendors. FPOs are an HTE software designed program to eliminate the processing time and expense of minor purchase orders. FPOs shall be used as a payment mechanism for purchases up to $3,000.00 with the exceptions shown on the following page. For every FPO issued, the user department is responsible for assuring that sufficient funds are available within the appropriate budget. Abuse or misuse of this system may result in the withdrawal of authorization to use the FPO. Examples of misuse include:

1. Using the FPO for unauthorized items or services. 2. Exceeding the $3,000.00 maximum limit. 3. Using FPOs when sufficient funds are not available within the appropriate

budget. 4. Using FPOs during the period when purchases are suspended at the end of

each fiscal year. 5. Splitting, dividing or separating requirements to keep FPOs under the

$3,000.00 limit and thus avoid submitting a standard requisition or to avoid the competitive bidding process in any way.

Authorized Purchases by FPOs:

1. Goods and services which are not covered under contract or are not available from Materials Management up to a maximum of $3,000.00, including freight, delivery, and installation.

2. Memberships, subscriptions, and registration fees for conferences and seminars when a vendor will take a FPO number and invoice you at a later date.

Unauthorized Purchases by FPOs: 1. City inventory items carried in Materials Management. 2. Capital equipment purchases, which are individual items over $3,000.00 in

value. 3. Items covered by annual contracts. 4. Travel related expenses such as airfare, lodging, rentals, etc.

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5. Splitting, dividing, or separating requirements to keep FPOs under the $3,000.00 limit and thus avoid submitting a standard requisition or to avoid the competitive bidding process in any way.

6. Computer hardware or software. 7. Any rolling stock, fleet equipment etc.

Procedure The user departments are responsible for obtaining the goods and services at the lowest possible price, and purchase requirements are to be consolidated when possible. To avoid accusations of favoritism and price collusion, purchases should be rotated among vendors offering comparable prices, quality, and service. The City is exempt from paying any local or state sales tax and federal excise tax. For more information, see Section IX. Tax Exemption Certificate. Changes or Cancellations Employees authorized to sign the FPO are authorized to make changes or cancel the FPO provided the total price does not exceed $3,000.00.

Expediting Each department is responsible for all follow-up pertaining to FPO purchases. Purchasing may be contacted for advice or assistance if a problem develops. Receiving See Section XI. Inspection & Receiving of Goods.

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Basic Steps for Field Purchase Order Entry 1. Enter FPO using Menu Option number 1 - Field Purchase Order Entry

• Enter each line item, price, and description. Do not enter a lump sum. 2. Approve FPO using Menu Option number 5 - FPO Department Approval

• The FPO is not encumbered until after the nightly updating of the purchasing system.

3. Print the Field Purchase Order. 4. After receiving the merchandise, sign and date a copy of the FPO and send it, with all

receiving paperwork and the invoice attached, to Accounting at [email protected] to be processed for payment.

5. Contact the Purchasing Division if the FPO requires a change order or cancellation. Field Purchase Orders have a $3000.00 limit.

mailto:[email protected]

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Step 1 -Add A New FPO And Department Approval Sign on to the AS/400: Path to Field Purchase Order Menu, from HTE Main Menu:

12. Purchasing/Inventory 1. Purchasing/Inventory Main Menu

9. Field Purchase Order Menu

FPO Main Menu HT135MPI CITY OF RICHARDSON 8/03/01 Field Purchase Order Menu 10:26:08 Select one of the following: 1. Field Purchase Order Entry 2. FPO Pending Invoice Entry 3. Field Purchase Order Maint 4. Field Purchase Order Inquiry 5. FPO Department Approval 6. FPO Payment Approval 7. Field Purchase Order Report 8. FPO Pending Invoice Inquiry 90. Sign off Selection 1 Menu Option 1. Field Purchase Order Entry, displays the status of all FPOs. Existing FPO data can be changed using option 2 on this screen. F17=Subset will allow the user to limit the FPO’s that appear on the screen. PI348P01 CITY OF RICHARDSON Field Purchase Order Entry Position to . . . . . Type option, press Enter. 2=Change 4=Cancel 5=Display 6=Print Opt FPO # Vendor name Status F00011 NEED ADDITIONAL INFO D00007 SCIENCE PLACE CANCELLED D00006 SCIENCE PLACE CANCELLED

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F7=Additional information, Pressing F7 will display Invoice, Invoice date, and Due Date if the data has been entered. Pressing F7 a 2nd time will redisplay the basic list. PI348P01 CITY OF RICHARDSON 8/03/01 Field Purchase Order Entry 10:27:56 Position to . . . . . Type option, press Enter. 2=Change 4=Cancel 5=Display 6=Print Opt FPO # Vendor name Status F00011 NEED ADDITIONAL INFO Invoice : Invoice date : 000000 Due date : 000000 D00007 SCIENCE PLACE CANCELLED Invoice : 123456TEST Invoice date : 072401 Due date :081001 D00006 SCIENCE PLACE CANCELLED Invoice : 123457TEST Invoice date : 072501 Due date :073001 F3=Exit F6=Add FPO F7=Additional information F17=Subset

F6=Add An FPO PI349U01 CITY OF RICHARDSON 8/03/01 Field Purchase Order Entry 10:33:36 Type information, press Enter. Assigned Field PO number . . . F00015 Date . 080301 User (F4) GLEN Remarks . . . . . . . Received by . . . .GLEN GM vendor # (F4) . .10263 THE SCIENCE PLACE Invoice number (F4) Invoice date . . . 000000 Payment due date . . 000000 (MMDDYY) Invoice amount . . . Line total . . . . .00 Account number Project Amount Transaction description 01105405146101 1.00 TEST FPO ________________ __________ ________________________________________ ________________ __________ ________________________________________ ________________ __________ ________________________________________ ________________ __________ ________________________________________ ________________ __________ ________________________________________ F3=Exit F4=Prompt F7=Additional info F8=Comments F9=Retrieve F10=PI vendors F12=Cancel F16=Reserve FPO#

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BLUE ITALICIZED = SYSTEM ASSIGNED FIELDS BLUE= REQUIRED FIELDS to Add a new FPO

NOTES • All fields can be changed at this point Except “Field PO number.” • The transaction description is the information that will show up on the check or electronic

funds transfer document. Please make sure the information that the vendor needs to know is entered here since Accounting cannot make changes to your FPO.

• FPO can be created without the “Account number” and “amount,” by pressing F16 (shift and F4) Reserve FPO#. Status will change to “Needs Further Information.”

• CAUTION – When reserving a Field PO number using “F16 Reserve FPO#”, it is important to key enough of a description, or comment, to allow the user to remember what the FPO was reserved for when further processing detail is available.

Step 2- Menu option 5 = Department Approval Processing: PI327P01 CITY OF RICHARDSON 8/03/01 Field Purchase Order Department Approval 10:54:18 Position to . . . . . Type option, press Enter. 1=Select for approval 5=Display Opt FPO # Vendor name Invoice # Amount _1 F00015 SCIENCE PLACE $1.00 __ F00161 COCA-COLA BOTTLING CO. $66.00 __ F00160 PARTY CITY $1.00 __ F00156 SAM'S CLUB $200.00 __ F00154 FLAGHOUSE, INC. $144.48 __ F00153 BEST ACCESS SYSTEMS $18.00 __ F00152 SAM'S CLUB $150.00 __ F00149 FITNESS WHOLESALE $224.90 __ F00140 SAM'S CLUB #8299 $300.00 __ F00137 SAM'S CLUB #8299 $300.00 __ F00134 HIGHTECH SIGNS $21.30 __ F00128 MJ DESIGN $1.00 __ F00080 ARCHIVE SUPPLIES, INC. $360.00 __ F00065 WALMART SUPER CENTER $1.00

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Select an FPO to approve, press Enter: The following screen will appear. PI327U01 CITY OF RICHARDSON 8/03/01 Field Purchase Order Department Approval 10:55:32 ENTERED - NEED APPROVAL Type information, press Enter. Assigned Field PO number . . . F00015 Date . . 080301 User . . GLEN Remarks . . . . . . . Received by . . . . . GLEN Vendor . . . . . . . 0010263 SCIENCE PLACE Invoice number . . . Invoice date . . . 000000 Payment due date . . 000000 (MMDDYY) Invoice amount . . . Line total . . . . $1.00 Account number Project Amount Transaction description 01105405146101 $1.00 TEST FPO F3=Exit F4=Prompt F7=Additional info F8=Comments F9=Approve F11=Reject F12=Cancel Step A – Select the FPO to be Approved. Key any additional information or comments (F8). Step B – Press F9 To Approve the FPO. The amount approved will be encumbered for the account when the nightly purchasing update processing is performed by I.S. Example, if an FPO is approved Today, the Encumbrance will appear on the account Tomorrow. End of Procedure - Creating and approving an FPO is complete.

OTHER PROCEDURES

CANCELING AN FPO An FPO can be canceled at any time Prior to approval for payment. To cancel an FPO use Menu option 1, Field Purchase order entry or Menu option 3, Field Purchase Order Maint. If an FPO is canceled after it has been processed with Department Approval the encumbrance will be reversed.

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RESERVING AN FPO NUMBER

• An FPO can be created without the “Account number” and “amount,” by pressing F16 (shift and F4) Reserve FPO# after F6 has been pressed from Menu Option 1. The status of the FPO will change to “Needs Further Information” until required information is entered.

• CAUTION – When reserving a Field PO number using F16 Reserve FPO#,” it is important to key enough of a description to allow the user to remember what the FPO was reserved for when further processing detail is available.

DELETING AN FPO

FPO NUMBERS CANNOT BE DELETED

Please use the ADD and RESERVE functions with caution. The numbers should be canceled PROMPTLY, if it is determined that they are not to be used.

F17 SUBSET The Subset function key is used throughout all the HTE systems. If it is available for the particular application you are using it will be listed on the bottom of the screen along with other F keys. Purpose: To allow the user to limit the information to be displayed. For example, if using the FPO inquiry (Option 4. Field Purchase Order Inquiry) the following prompt will appear.

Field Purchase Order Inquiry Subset Type information, press Enter. Assigned user (F4) . .__________ GM Vendor # (F4) . . ._______ Name _________________________ Invoice number . . . ._______________ FPO date range . . . ________ to ________ Approval date range ________ to ________ FPO status (F4) . . . __ Account number range . ______________ (From Acct) ______________ (To Acct) Project number (F4). . _______ Item description ________________________________________________ F4=Prompt F10=PI Vendors F12=Cancel Select any field to key information, press enter, and the data will be displayed based on the selection made. For example, a user would key “GLEN” into the field for “Assigned user” to only display the FPOs for Assigned user GLEN.

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Pressing F4 on the FPO status line will display the following options: Opt Code Description 1 NEED ADDITIONAL INFO 2 ENTERED - NEED APPROVAL

3 DEPT APPROVD NEED INVOICE 4 AWAITING PAYMENT APPROVAL 5 INVOICED 6 COMPLETED 7 CANCELLED A user would key “GLEN” into the field for “Assigned user” and “3” into the field for “FPO status” to only display GLEN’s FPOs that are approved and needing an invoice.

PRINTING A LIST OF FPO’S Menu Option 7. Field Purchase Order Report Key Menu option 7 Field Purchase Order Report, press enter and the following prompt will appear. PI347P01 CITY OF RICHARDSON 10/04/01 FPO Report 10:42:14 Type information, Press F8 to submit. Report order . . . . . . . 1 1=FPO order 2=Account order 3=Vendor name order Print line items . . . . . Y (Y or N) For report order 1 only Vendor number (F4) . . . . Invoice number . . . . . . _____________ Acct range from (F4) ______________ 99999999999999 Project number range (F4) ________ to ________ Assigned user (F4) . . . .____________ FPO status (F4) . . . . . .__ FPO date range . . . . . . _________ to 10042001 FPO invoice date range . . ________ to 10042001 FPO department approval date range . . ________ to 10042001 F3=Exit F4=Prompt F8=Submit The user can then select any combination of data to include on the report by reviewing and changing the various prompts on this screen. If F8 is pressed and no selective information is keyed a detailed list of all FPO’s on the system will be printed. F8 is used to create the report; pressing the Enter key will not cause the report to be printed.

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PRINTING AN FPO The FPO Receiving Report can be printed from 2 sources. Menu Option 1. Field Purchase Order Entry, then key Option 6=Print Menu Option 4. Field Purchase Order Inquiry, then key Option 6=Print The receiving report is printed in the following format. PI328L PAGE: 1 F P O E N T R Y / R E C E I V I N G R E P O R T --------------------------------------------------------------------------------- FPO NUMBER : F00175 DATE RECEIVED: 9/18/01 REMARKS : REPAIR PARTS FOR HALE HOUSE RECEIVED BY: D HALE ENTERED: 9/18/01 16:07 BY: VOORHIESD VENDOR: 0012544 - HANDYMAN HARDWARE, INC. INVOICE NUMBER: 64238 INVOICE DATE: 9/18/01 INVOICE POSTED: 9/20/01 9:50 BY: HODGESD PAYMENT DUE: 9/27/01 AMOUNT: $ 19.99 ACCOUNT# PROJ# AMOUNT ITEM DESCRIPTION -------------- ------ -------------- ---------------- 01130615414502 $ 19.99 INV #64238 DATED 9/17/01

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Sample FPO

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B. Field Purchase Order Workflow

Need determined by department

Vendors selected for quotes

Quotes received (written or telephone)

Award determined

Terms of the sale are determined (Delivery/ pick-up, shipping costs)

FPO issued

Merchandise is received

Paperwork prepared for payment (attach packing slip, invoice, etc.)

Paperwork sent to Accounting

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C. Automated Purchase Requisition Purpose The purchase requisition serves to inform Purchasing of a request for goods or services. It also provides a record of the request and an approval to encumber funds. The purchase requisition is the first step after the need for a good or service is recognized. Requisitions must be approved by the Department Head or a designated alternate. Preparation of the requisition must be done far enough ahead of the date that the goods or services are needed to allow Purchasing and the vendor to do their job properly, including:

1. Advertising for bids, if necessary.

2. Obtaining bids or price quotations.

3. Processing bids, placing purchase orders or concluding contracts.

4. Allowing for the delivery of goods or services.

The requisition is to be used to obtain materials, supplies, and equipment which are not available through the following sources:

1. Procurement Card (See Section V.)

2. Field Purchase Order (See Section VIII.A.)

3. Annual Contracts (See Section VIII.D.)

4. City Inventory – Materials Management (See Section XIV.)

Basic Steps for Requisition Entry

• Sign on to the AS/400

• Key in 12 – “Purchasing/Inventory” and press enter.

• Key in 1 – “Purchasing/Inventory Main Menu” and press enter.

• Key in 4 – “Purchasing/Receiving Menu” and press enter.

• Key in 1 – “Requisition entry” and press enter.

• Press F6 to pull up a blank requisition. (Make a note of the requisition number found in the upper left corner of the screen…no leading zeros are necessary).

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• In the "REASON'" field type in a reason for the requisition. If this is a confirming

requisition for a purchase order number already given then you MUST put the purchase order number here. Tab to the "BY" field.

• Type in your name/department name. Tab to the "VENDOR NAME" field.

• If you do not know the vendor number, tab to the “SHIP TO” field. If you are

suggesting a vendor, type in the vendor number or name and then tab to the "SHIP TO" field.

• Type in the ship to code. Tab to the "DELIVERY DATE" field. • Type in the requested delivery date. Press enter twice.

• Use the COMMENTS SECTION for any comments or notes that are for the

Purchasing Division’s reference only and are not part of the actual line item or purchase order description. Also use this area for information about new vendors. Press F20 (shift and F8) and enter the information. Press enter twice.

• Press F6.

• Type in the description of the item(s) being ordered. If there is not enough room

for the description press F8 for more lines. You can use 999 lines for the description. Press enter twice when you are done. Tab to "COMMODITY CODE."

• Key in all zeroes in the commodity code field. The cursor will automatically advance

to the "SUB-COM" field. Key in all zeroes in this field also. Tab to "QUANTITIY." • Key in the number of items to order. “Field Exit” (plus sign (+) key on number pad) to

"ORDER UOM" (unit of measure).

• Key in the unit of measure. Tab to "UNIT COST."

• Key in the cost (either actual cost if known or budgeted/estimated cost). “Field Exit” to "ACCOUNT NUMBER."

• Key in account number. (All 14 digits, no spaces or dashes.)

• Press enter twice. This will bring you back to a blank line item entry screen.

• Enter as many lines as needed. After the last line is entered, make sure that you are on a blank line item screen and press F12.

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• Press enter, which will bring you to the Account Information screen. • Press enter again. You will still be on the Account Information screen. • Press enter again, which will bring you to the Account Balance Inquiry screen. The Account Balance Inquiry screen will appear for each different account number that you have on the requisition. Keep pressing enter until you return to the Purchase Requisition Maintenance screen (the "header screen").

• Press F3 to exit to main menu.

Basic Steps for Printing Requisitions • Key in 2 (for requisition approval). Press enter. • Key in 1 next to the requisition to be printed and approved. Press enter. • YOU MUST PRINT TO PURCHASING BEFORE YOU APPROVE.

• Press F19 (shift and F7) to print the requisition to Purchasing. The requisition will not

print unless you complete this step. • You will receive the following message: Print sent to Purchasing printer. If you do not

see this message, do not continue to press F19 (shift and F7) because doing so will reprint the requisition each time. Please contact Purchasing at (972) 744-4130 to verify that the requisition was received.

• Press enter. • Press F9 to approve the requisition. If you do not see the option for F9 on the lower right

side of the screen, you may need to hit enter again. • Press F3 to exit to main menu. The above steps, as well as more advanced steps, are explained in more detail on the following pages.

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Requisition Entry

Purchase Requisition Maintenance Screen The first screen of the requisition entry sequence will display: “Position to________ . . .” and a list of previously entered requisitions that have not been processed. To call up a specific requisition already placed into the system, insert a number and press “Field Exit” (plus sign (+) key on number pad), select the requisition with a ‘2’ and press "ENTER." Press F13 to display requisitions by requisitioner. Notice the options at the top of the screen. These options allow you to change, display, print, comment and place quotes for the requisitions listed. As a rule you will only be allowed access to requisitions for your department or requisitions that involve account numbers for which you are authorized to spend funds. Please be aware that once a requisition is approved, any changes made to it will electronically mark the requisition as requiring additional approval.

To Copy A Requisition

This feature allows you to copy requisitions that you may use more than once within a year or from year to year. You can copy all or some of the information from as many requisitions as needed. Begin by going into OPT ‘1’ “REQUISITION ENTRY” and press F6 to create a new requisition. Pressing F21 (shift and F9) will bring up a list of previous requisitions. Using OPT ‘1’ will allow you to copy the requisition with no review. This option immediately pulls the line items and header information from the old requisition onto the new one. OPT ‘2’ allows you to review the line items first and make changes to the “Quantity” and “Unit Cost” fields. After pulling the line items from the old requisition over to the new one you can correct the information on the header screen and then continue the requisition process. Be sure to make note of the new requisition number.

To Start A New Requisition

Press the F6 key. The system assigns the next available number, never duplicating a number in the assignment process. When the next screen comes up you will see the requisition number in the upper left-hand corner. It is best that you make note of this number (without the leading zeroes), but it is not required that you write it down or memorize the number. You can always identify a requisition by going into “Requisition Inquiry” and using various options found in the “F17 Subset” (shift and F5) feature, using a variety of fields, such as range, requisition status, or account number.

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Note: In the “PURCHASE REQUISITION” screen of this application, pressing the ENTER key signals the system to verify that all the mandatory fields have input and that all information entered is in the proper format in preparation for advancing to the next screen. If you press the ENTER key before keying information into certain fields, the system will flash an error message and indicate (by reverse lighting) any mandatory fields lacking information. The following fields are mandatory for this screen:

• Reason • By • Ship to • Deliver by Date

Whenever you receive an error message, pressing the Error Reset key (Ctrl key to the left of the space bar) allows you to continue. If you get an error message, read the message for a clue to any misstep and press the Error Reset key to continue. Error messages are located in the bottom left hand corner of the screen indicated by a red X.

“Reason” and “By” Fields (Required) Reason: This field contains a brief explanation of the purpose of the requisition.

• The “REASON” field contains 50 characters of space. • Type in “Confirming P.O. #” and the number that was provided by Purchasing

when this is a confirming requisition for a purchase order that has already been issued.

By: This field contains the name/department of the person preparing the Requisition.

• The “BY” field contains 25 characters of space. • Enter your name followed by a slash and the name of your department.

Suggested Vendor Field (Optional) This field is used to suggest vendors that the Purchasing Division can contact for acquisition of the items being requested. Departments are not required to select a vendor. Neither field (“Vendor Name” or “Number”) is required for entering and/or processing the requisition. If a suggested vendor is not entered, Purchasing will select a vendor for the product(s) requested.

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Vendor Suggested by Department To suggest a vendor, move the cursor (using the Tab key) to either the “Vendor Name” field or the “Vendor Number” field. If you are aware of a frequently used vendor (good price, good service, high quality, convenient location, large choice, good technical support, etc.) or you may have already contacted a vendor for a product that is not readily available elsewhere, you may suggest them by entering their number (if known) in the “Vendor Number” field or their name in the “Vendor Name” field.

If the Suggested Vendor is a New Vendor Press F20 (shift and F8) for the comments section; type in the vendor’s name, address, phone number, fax number, and the name of any contact person that quoted you prices; then press Enter twice. Obtain a W-9 from the vendor and send to Accounting to have the new vendor setup in the system.

Using Vendor Name Search for Current Vendors: If a vendor has previously been placed in the system vendor file it will have certain spelling and punctuation associated with its unique vendor number. There are two methods to search the vendor file:

Method One - Name Begins With: • “NAME BEGINS WITH” is used if you remember how the name starts, as in

“Baker” for ‘Baker and Taylor Books’ or “Carru” for ‘Carruthers Landscape.’

• Key in the first few characters of the name.

• Tab to the “SEARCH TYPE” field.

• Place a ‘B’ for “BEGINS WITH” in this field.

• Press Enter. The system searches for all vendors with titles that begin with the letters entered and generates a screen with the list of these vendors when the Enter key is pressed. The vendor file is very specific as to the spelling and punctuation associated with the vendor numbers. What you key in must match exactly with what is in the vendor file; therefore, it is best to only key in the first few characters or words of a name instead of trying to type in the complete name. A search list will then appear, and you may choose the vendor that you need.

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When the “Vendor Name Search” list is presented, the F7 key can be toggled to see more detail to assist in selecting the desired vendor. Use care in selecting the vendor. Many vendors have the same name but are located in different parts of the country and many vendor names are similar. Use the F7 feature to identify the correct vendor. To select a vendor from the list: Key ‘1’ to the left of the appropriate vendor name and press Enter. The “PURCHASE REQUISITION” screen will re-appear with the vendor name and number you selected filled in. You can then continue to complete the requisition. Method Two - Name Contains: • “NAME CONTAINS” is used if you are only sure of a word within the title. (e.g.,

Smith’s Auto Supply or Auto Parts by Smith)

• Key that word in the “VENDOR NAME” field.

• Key in ‘C’ for ‘Contains’ in the “SEARCH TYPE” field.

• Press Enter. The system searches for all titles containing the word or word part (e.g., “auto”). In a large vendor list, the ‘Contains’ search may take longer than the ‘Begins With’ search because of the greater number of possibilities. The ‘Contains’ search may give you some unexpected combinations. Both vendor name search methods will assist you in selecting the correct vendor with the correct name and vendor number. If there is only one vendor in the system matching your input, the name and number will be immediately inserted in the appropriate fields of your requisition. You may get an error message that will state GMBA VENDOR NAME DOES NOT MATCH PI VENDOR NAME: RESET & F14 TO OVERRIDE. In this case, press F14 (shift and F2) to override. Remember, numbers assigned to requisitions, purchase orders and vendors need not be memorized by the user since there are many ways (date, vendor name, account number, etc.) to trace a requisition or purchase order.

The “PURCHASE REQUISITION” screen will re-appear. Proceed to the “SHIP TO” field

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Ship to Field (Required) The “SHIP TO” field requires an entry, even if only one address is recorded in the location file. This entry is required to indicate an inventory point or other delivery address recorded in the system’s location file. Notice the ‘F4’ preceding this field. This indicates that you can press F4 to see a list of locations. Place the two-character abbreviation of the desired location in the “SHIP TO” field. Note: The location abbreviations are maintained by Purchasing and MUST be recognized in the system. Delivery Date Field (Required) The “DELIVER BY DATE” field is the final mandatory field on this screen. Enter a realistic, numeric, date in this field. The terms “ASAP”, “One Week”, etc. or a date earlier than the current date will not be accepted. This date must be entered in six-digit, Month-Day-Year format without any dashes or slashes (e.g., 060218 for June 2, 2018). Item Entry Fields You are now ready to enter your line item(s): Press F6 to begin. Note: If F6 does not show at the bottom of your screen, press Enter until it appears.

Required information:

1. Description – Key a description of the item in this field. If your description is too long for the field, you must use the “F8= Extended desc” option to continue. Information keyed in by using the F8 function will print on the purchase order as part of the line item description. DO NOT USE THIS KEY TO ENTER ANY COMMENTS OR NOTES THAT ARE FOR REFERENCE ONLY OR FOR PURCHASING’S USE ONLY. ANY COMMENTS ENTERED HERE WILL PRINT ON THE PURCHASE ORDER. If it is not an actual part of the item description it does not go here; use the F20 (shift and F8) function instead. If you have a vendor part number to enter, tab to the "VENDOR PART#" field, otherwise tab to the “COMMODITY” field.

2. Vendor Part # – Use this field for a vendor part number, SKU number, or item number. However, only use this field if you have not used the F8 option for extended description. If you have extended description then you would include the vendor part number in that description.

3. Commodity – Key in all zeroes in this field. The cursor will automatically advance to the "SUB-COM" field.

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4. Sub-Com – Key in all zeroes in this field. Tab to the "QUANTITY" field 5. Quantity – Key in the quantity of items requested, press “Field Exit” (plus sign

(+) key on number pad) 6. UOM – Key in unit of measure (e.g., ‘EA’ for “each”). The unit of measure that

you key in must match exactly with what is in purchasing’s UOM code list. You can press F4 in this field and choose the appropriate abbreviation from a list. Tab to the "UNIT COST" field.

7. Unit Cost – Key the cost of the item for the unit of measure entered. Do not enter ‘$’, but do enter a decimal point if appropriate. Press “Field Exit” to advance to the next field. You must put a figure in this field even if it is an estimated cost or the cost that you budgeted for the item.

8. Account Number – Key in the account number you are charging this line item to but, only if you wish to charge 100% of this item to this account number. If you wish to charge a line item to several account numbers you will need to bypass this field and use the “ACCOUNT INFORMATION SCREEN”. You may also use the Account Information Screen if you have numerous line items charged to one account number and do not want to continuously type the number in.

Use the “Field Exit” key after entering the numerical values in the “Cost” and “Quantity” fields. After entering the first line item press “Enter” to enter more line items. Notice that the line item number changes at the top of your screen. Continue entering information and pressing “Enter” until you have entered all your line items. When you have entered your last line item press “Enter” one more time to bring up a blank line item screen. Press F12 to return to the “PURCHASE REQUISITION” screen. This completes the basic requisition. YOU MUST BE AT A BLANK LINE ITEM SCREEN WHEN YOU HIT F12, OTHERWISE YOU WILL DELETE YOUR LAST LINE ITEM. OPT - Options Before leaving the “PURCHASE REQUISITION” screen with the second press of the Enter key, note the options field to the left of each line item. Each numbered option affects the individual line item on the line where the number is placed. “2 = Change” allows you to change the line item information when Enter is pressed. “8 = Item extended description” displays the additional description lines previously entered. “4 = Delete” completely deletes the line item. “9 = Quote” permits quotes for the line item. (See Quotes)

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Quotes There are two types of quotes. The F8 key is used to enter a quote for the entire requisition. For example: City Hall needs a tool shed for the grounds keeper. A vendor gives a quote for the entire lot of building materials rather than pricing each item individually (Lumber, cement, reinforcing rods, etc.). To record a vendor quote for the entire requisition press F8. “QUOTES FOR REQUISITION” screen will appear. A message, QUOTES DO NOT EXIST FOR THIS REQUISITION will appear at the bottom of the screen until a quote is entered. After being entered, the actual quote(s) will appear on the screen when it is displayed. To add a vendor quote, press the F6 key A “QUOTE FOR REQUISITION” screen appears, containing fields for:

• Number (Vendor)

• Name (Vendor) (Required Field)

• Search Type – Enter “B” (Begins with) or “C” (Contains) if you know that this vendor is already in the vendor file.

• Selected Quote – Field used by the buyer to select a listed quote. Tab past this field leaving it blank.

• Contact Person – Person who gave out the quote and who Purchasing can contact if there are any questions.

• Phone Number – (Tab from area code sub-field to phone number sub-field to avoid error.)

• Dollar Amount Quoted (Required Field) – Do not enter “$” but do enter the decimal point if appropriate.

• F14 (shift and F2) Vendor Quote Comments – Allows the user to add internal comments/free form notes for this quote.

Pressing Enter brings you back to the initial information entry screen. Press the Enter key again and the vendor quote information is updated and the “QUOTES FOR REQUISITION” screen is re-displayed containing the vendor name and quote amount for the vendor(s) for which quotes have been entered. Press the Enter key again and the primary “PURCHASE REQUISITION” screen is displayed. Only the “Vendor Name” or “Vendor Number” and “Dollar Amount Quoted” fields are mandatory fields in the quote screen.

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Quotes: Specific Line Item: To insert a quote for a specific line item, the process is very similar to the Requisition Quotes. To enter a quote for a line item, Key ‘9’ in the “OPT” field corresponding to the line item for which you wish quotes to be entered. Press the Enter key to bring up the QUOTES FOR LINE ITEM screen. Until quotes have been entered for that line item you will see the message “QUOTES DO NOT EXIST FOR THIS LINE ITEM”. Press the F6 key to access the “QUOTE FOR LINE ITEM” screen. This screen will resemble the overall requisition quote screen and require the same procedures; however, in place of the “Dollar Amount Quoted” field, you will see other numerical fields:

• UNIT COST • UNIT OF MEASURE (Defaults from line item entry) • CONVERSION FACTOR (Defaults to “1”) • QUANTITY (Defaults from line item entry)

These fields are required so the system can calculate the unit cost (in the event of a conversion factor other than “1”) and extended cost. These calculated costs appear in the protected fields at the bottom of the screen. There is also an optional “Vendor Part Number” field that can be used to inform Purchasing of the specific part number if available. “Vendor Name” is mandatory, but the vendor does not need to be in the system vendor list at the time of requisition entry. If the vendor already exists in the system, the user can follow the same procedures as outlined above to obtain the correct vendor name and number. The “Conversion Factor” field is provided in the uncommon event that the item is quoted in a different lot size than normally handled by other vendors. “F14=Vendor quotes comments,” permits the user to add internal comments for this quote. Note that the requisition number, the requisition date, and the description of the line item being quoted appear at the top of the screen. After completing the screen, press Enter to return to the initial “QUOTES FOR LINE ITEM” screen showing the line item quote(s) with numbered options for selecting, changing, or deleting the quotes. If you wish to enter additional quotes while in this quote screen, press F6 and repeat the process as often as necessary. Press Enter again to return to the main screen.

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To Insert Any Internal Remarks At the initial “PURCHASE REQUISITION” screen, press F20 (shift and F8) to enter comments or remarks. Comments are free-form and can continue up to 999 lines (roll for additional lines as indicated by the “+” in the lower right of the screen.) These general comments can be seen by the approving authority and buyer as the requisition is being processed, and by personnel authorized to view your department’s requisitions in the “REQUISITION INQUIRY” option. They are for internal viewing only and will not be printed on the purchase order. Enter the names of employees involved in this procurement in compliance with Texas Local Government Code Chapter 176 which requires the public disclosure of certain information concerning persons doing business or seeking to do business with the City, including family, business, and financial relationships such persons may have with City officers and employees involved in the planning, recommending, selecting, and contracting of a vendor for this procurement. The sequence number column (F22 (shift and F10)) can be used to switch the position of comment lines. For example, line 3.0 can be placed in front of line 1.0 by over-keying 3.0 with a number lower than 1.0. This will cause old line 3.0 to become line 1.0, old line 1.0 to become line 2.0, etc. Pressing Enter again will bring you back to the main screen. Pressing Enter one more time will take you to the Account Information Screen. Entering Account Information The “ACCOUNT INFORMATION SCREEN” will display all account numbers that were entered at the line item entry stage. If an account number was not keyed in at that time, then enter it now. Only expense account numbers can be entered on a requisition. To enter account numbers, tab to the “LINE #” column, key in the line number and press “Field Exit;” key in the expense account and “Field Exit;” tab over to either the “PERCENT” field or the “AMOUNT” field. If charging all or 100% of an item to an account number, then enter 100 in the “Percent” field and press “Field Exit.” (Do not type the %.) If you wish to expense a line item to two (2) or more accounts, enter the line number, the first expense account, and the percentage that you wish to charge to that account number. Drop down to the next line and enter the same line item number in “LINE #”, a different account number in “EXPENSE ACCT” and the “PERCENT” that you wish to charge to that account number. You may do this as many times as you need as long as the total equals 100 percent. You may also use the “Amount” field instead of the “Percent” field if you have specific amounts that you want to be charged to an account number or you are having a problem with the percentages equaling 100.

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Remember that you may use either the “Percent” field or the “Amount” field. You cannot enter information in both fields. If you have numerous line items and you want to distribute 100% to each line item using the same account number, enter in only the account number and the percentage on the first line and press F15 (shift and F3). The account distribution will automatically take place for all line items. Pressing Enter twice after entering the required information will display the “ACCOUNT INQUIRY” screen, which will show whether the account has sufficient funds available. If there are insufficient funds available in a budgeted fund account, you will get an error message ACCOUNT AMOUNT EXCEEDS BUDGET BALANCE. You must put the requisition on hold by pressing F7 or you may go back and change the account number. When funds become available for that account number you may go back into “REQUISITION ENTRY”, pull up the requisition and finish processing it. If the account is not a budgeted fund you may press F14 (shift and F2) to override the error message and continue with the requisition. Pressing Enter will return you to the “PURCHASE REQUISITION” screen. Printing Your Requisition (For Departmental Copy) To print a copy of your requisition at the “PURCHASE REQUISITION MAINTENANCE” screen, key ‘6’ next to your requisition number and press Enter. You may also display the requisition and press F9 to print. Either way will send a copy of the requisition to a print queue or your individual printer. Press F3 to exit. Press F18 (shift and F6) to find your print job and do one of the following: If the Device/Print Queue has your printer name then it will automatically print to your printer. If the Device/Print Queue has a name that ends in “Q” then enter a ‘2’ in the OPT field and then press Enter. At the flashing cursor enter your AS/400 printer name and press Enter. To print your requisition after it has been received in Purchasing, use “REQUISITION INQUIRY”. Key a ‘6’ next to your requisition number and press Enter. Follow the steps above to print from your print queue. It may be necessary to answer a message the first time that the printer is used. If the STS column shows MSGW, key a ‘7’ in the option column and press Enter. Key a ‘G’ on the reply line and press Enter.

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Sending Your Requisition to Purchasing Only users with “REQUISITION APPROVAL” authority can send requisitions to the Purchasing printer. To send your requisition to Purchasing, select Option ‘2’ from the Purchasing/Receiving menu, key the desired requisition number in the “Position to” field, “Field Exit,” and press Enter. This will display a list of requisitions awaiting approval. To select your requisition: key ‘1’ and press Enter. If, after selecting option ‘2’ from the main menu, your requisition shows on the screen, you only need to tab down to the requisition number, key in ‘1’ and press Enter. Either way will display your requisition on the screen. Press F19 (shift and F7) to send your requisition to the Purchasing printer. The message “Print sent to Purchasing printer” will appear. Pressing Enter will bring your requisition back on screen. You may then press F9 to approve this requisition, press Enter to go back to the list of requisitions awaiting approval, or press F3 to exit the approval function. Department Head Approval All requisitions must be approved by the department head or an authorized agent. To approve a requisition the authorized user must select Option ‘2’ from the Purchasing/Receiving menu. Enter the requisition number in the “Position to” field, “Field Exit” and press Enter to bring up a list of requisitions awaiting approval. Select the requisition with a ‘1’ and Enter. If the requisition already shows on the screen, tab down to that requisition number, key a ‘1,’ and press Enter. Either way will display the requisition on the screen. Pressing F9 will approve it.

Requisition must be sent to Purchasing using F19 (shift and F7) prior to approval.

Purchasing may electronically return a requisition to a department for more information. In this event, both the person responsible for entering it and the person responsible for approving it will receive a message stating that the requisition was rejected for further information. Review the comments section to see why the requisition was returned. Requisitions that have been returned to the user department must go through the approval process again before they can be processed by Purchasing. Requisition Inquiry To determine the status of a requisition that you have generated, you may select option ‘13’ “REQUISITION INQUIRY” in the Purchasing/Receiving menu or option ‘7’ “REQUISITIONS” in the Inquiry menu. Pressing Enter will call up a screen showing all requisitions that the user may view. The first screen will include the following columns for each displayed requisition: req. #, vendor name and requisitioned by.

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You may search and/or select requisitions by keying F17 (shift and F5). This will open a window allowing searches or selections from numerous fields. You may select one or more of these fields to narrow the selection down and then press Enter. This will bring up a list of requisitions that meet your selected criteria. Based on this information, the desired requisition should be identified and selected by keying a ‘1’ in the OPT column to the left of the requisition. Pressing Enter after making the selection brings up the main screen of the desired requisition. Additional details about this requisition can be accessed by function keys listed at the bottom of the screen. Reverse lighting will indicate items that have been ordered. If a purchase order has been issued for a requisition, pressing F21 (shift and F9) will show the associated purchase order number. Purchase Order Inquiry Purchase Order Inquiry is similar to Requisition Inquiry. Select option ‘14’ “PURCHASE ORDER INQUIRY” in the Purchasing/Receiving menu or option ‘8’ “PURCHASE ORDERS” in the Inquiry menu. The first screen displays: purchase order number, vendor number and name, date purchase order issued, buyer initials and status code.

STATUS CODES H-Held for printing 0-Reserved-manual 1-Incomplete 2-Waiting to be printed 3-Waiting receipt 4-Partially received-no invoice 5-Partially received and invoiced 6-Received-no invoice 7-Received-partially invoiced 8-Completed 9-Canceled

You may search and/or select purchase orders by pressing F17 (shift and F5). This will open a window allowing searches or selections from numerous fields. You may select one or more of these fields to narrow the selection down and then press Enter. This will bring up a list of purchase orders that meet your selected criteria. Key a ‘1’ in the OPT column and press Enter to select the desired purchase order.

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Note: If you know your requisition number, you can trace the status of items that have been processed to a purchase order. Blanket Order Inquiry Blanket Order Inquiry is similar to Purchase Order Inquiry. Select option ‘15’ “BLANKET ORDER INQUIRY” in the Purchasing/Receiving menu or option ‘9’ “BLANKET ORDERS” in the Inquiry menu. The first screen allows the user to see all blanket orders starting with the highest number. Once a specific blanket order is selected on the first screen, the second display will show: the blanket order number, effective and expiration dates, description and amount of blanket order, amount already purchased, and amount available. Pressing Enter will display the purchase order information concerning the blanket order. The following function keys are displayed at the bottom of the screen: F2- Display items: Items displayed on this screen pertain to items that have been

invoiced. It is not a display of items that can be ordered on this blanket purchase order.

F8- Display remarks: This screen includes a listing of the items that may be ordered on the purchase order and the pricing for the items.

F9- Display invoices. The “Display Invoices” screen also has an F7 toggle key for “Amount Breakdown.”

Note: Blanket orders appear in both “Purchase Order Inquiry” and “Blanket Order Inquiry” options but there are differences in the way that they are viewed. Only “Blanket Order Inquiry” will give you the effective dates and the dollar limit of the purchase order. “Blanket Order Inquiry” will not show blanket orders which have been issued, but are not yet effective. Please call the Purchasing Division at (972) 744-4130 for assistance if you have any questions regarding the requisition process or the purchase order inquiry process.

PURCHASE REQUISITION NBR: 0000029066

STATUS: READY FOR BUYER PROCESSIN

REQUISITION BY: RACHEL HOLT REASON: CONSULTANT DATE: 1/22/21

SHIP TO LOCATION: ENGINEERING SUGGESTED VENDOR: 19552 WALTER P MOORE & ASSOC INC DELIVER BY DATE: 1/25/21

LINE UNIT EXTEND

NBR DESCRIPTION QUANTITY UOM COST COST VENDOR PART NUMBER

------------------------------------------------------------------------------------------------------------------------------------

1 RICHARDSON VERDIN CLOCK FOUNDATION 5000.00 EA 1.0000 5000.00

COMMODITY: BLANKET COMMODITY CODE

SUBCOMMOD: BLANKET SUB-COMMODITY

REQUISITION TOTAL: 5000.00

------------------------------------------------------------------------------------------------------------------------------------

A C C O U N T I N F O R M A T I O N

LINE # ACCOUNT PROJECT % AMOUNT

1 31337105837524 313440 100.00 5000.00

5000.00

REQUISITION IS IN THE CURRENT FISCAL YEAR.

REQUISITION COMMENTS:

PLEASE SEND ME THE VENDOR COPY

CONFLICTS OF INTEREST: DAN TRACY, KURT BEILHARZ

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D. Purchase Order

Purpose The result of a requisition is the purchase order (“P.O.”). The P.O. is used to place the actual order with the vendor. The P.O. is a legal contract which gives the vendor authorization to ship the materials or perform the services and is designed to expedite and control buying for the City. Procedure Once the requisition is approved by Purchasing and the vendor is selected, the P.O. is system generated. The purchase order is e-mailed to the vendor to place the order with a ‘cc’ (carbon copy) to the user department which should be used for receiving the items. Comments To comply with Texas Government Code Sec. 2251.021 (“the Prompt Payment Act”) and avoid the interest penalty, invoices must be paid within thirty (30) days after delivery. Attach all packing slips or delivery tickets to the purchase order or a partial receipt voucher and submit the documentation to Accounting no later than the next working day.

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E. Annual Requirements Contracts Purpose Purchasing awards annual requirements contracts (“annual contracts”) to vendors for supplies, equipment, and services routinely required by one or more departments. Contracts protect pricing for a specific time period and allow user departments to submit telephone or e-mail orders directly to the vendor which eliminates requisitions and processing time. Procedure Each user department is responsible for keeping a copy of the contract purchase order on file. All releases against the contract during the contract year will be placed directly by the user department under the same P.O. number. After the items have been received, attach the packing slip or delivery ticket to a completed Partial Receipt Voucher (See Section XI. Inspection & Receiving of Goods) and immediately submit it to Accounting for processing.

Contract Administration It is important for the user department to remember that they are the “contract administrator” of these types of contracts. After Purchasing solicits the bids and makes an award to a vendor, it is the responsibility of the user department to notify Purchasing of any problems relative to the contract. For example, the inability of the vendor to provide the products and/or services on a timely basis is unacceptable behavior for a contract vendor. Proper documentation of problems is essential in determining the responsiveness of the vendor. Without written documentation, it is difficult to prevent a vendor from bidding and receiving the award of the contract in subsequent years. Please submit vendor performance reports with any backup documentation to Purchasing for all problems so that we may discuss the situation and possible repercussions with the vendor. Vendor performance reports are available on the intranet. Purchasing keeps an updated list of existing contracts by commodity, name of vendor, and opening/closing dates. Please contact Purchasing at (972) 744-4130 if you need to obtain a copy of a specific contract.

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F. Contract Signature Authority

Department Directors are authorized to sign City contracts valued up to $3,000. The Director of Parks & Recreation is authorized to sign personal services contracts with instructors who teach an activity at a Parks & Recreation facility where compensation is based on a percentage of gross revenue received by the City. The City Manager, Deputy City Manager, Assistant City Managers, Chief Financial Officer, and Purchasing Manager are authorized to sign City contracts exceeding the $3,000 limit delegated to Department Directors. The City recognizes electronically executed contracts in accordance with the Uniform Electronic Transactions Act. Employees listed in this section or otherwise delegated contract signature authority are authorized to execute City contracts electronically (E-signature).

G. Electronic Signatures Policy Purpose The purpose of this policy is to ensure applicable procedures are in place to:

1. control and limit types of records or transactions for which electronic signature may be used;

2. limit who or what positions may use an electronic signature; 3. mandate the specific software or use of an e-signature software; 4. mandate the retention of the electronic transaction; 5. ensure training of those authorized to use electronic signature; 6. establish a process or procedure for the negotiation, review and approval of

the transaction, as applicable (e.g., contracts) by certain department heads or City personnel, including City Attorney prior to use of the electronic signature; and

7. identify who can release the final document.

This policy does not apply to digital signatures used on checks issued by the City and does not apply in situations where a typed signature is in common use, including e-mail signatures.

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Definitions Electronic Signature – Electronic sound, symbol, or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record. (Tex. Bus. & Com. Code § 322.002(8)) Digital Signature – A type of electronic signature that provides higher levels of security and universal acceptance than many of the ways to complete an electronic signature and is defined as an electronic identifier intended by the person using it to have the same force and effect as the use of a manual signature. (Gov. Code § 2054.060(e)(1)) Authorized Use A. The City recognizes the use of an electronic signature as an acceptable alternative to

a manual signature in accordance with the Uniform Electronic Transactions Act (UETA). Employees authorized or otherwise delegated contract signature authority are authorized to execute City contracts using an electronic or digital signature.

B. This policy does not change normal City procedures for the negotiation, review, and approval of contracts, including City Attorney review, prior to use of the electronic signature.

C. This policy does not change normal City procedures regarding who can release the final document upon execution.

D. The fact that parties agree to conduct one transaction by electronic means does not necessarily extend to future transactions. The parties may refuse to conduct other transactions by electronic means. (Tex. Bus. & Com. Code § 322.005(c))

E. The City may use an electronic signature for a document that needs to be notarized but the notary must be an “Online Notary Public” in accordance with 1 Tex. Admin. Code § 87.4.

F. This policy does not limit the City’s right or option to conduct a transaction on paper or in non-electronic form. This policy does not supersede any law or scenario wherein a written signature is specifically required.

Acceptable Technologies Electronic signatures must be generated via a system that requires single sign-on or a password validating the signature being applied to the document belongs to the user. Electronic signature technologies not specifically listed below require IT approval before use.

1. OnBase Workflow 2. DocuSign 3. Adobe Sign 4. Tyler Technologies software products

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Record Retention A. If the City has agreed to conduct a transaction by electronic means, the requirement

to provide, send, or deliver information in writing is satisfied if the information is provided, sent, or delivered in an electronic record capable of retention by the recipient at the time of receipt. (Tex. Bus. & Com. Code § 322.008(a))

B. The City must retain the electronic record in a way that accurately reflects the information in the record in its final form as an electronic record and remains accessible for later reference, if a law or retention schedule requires the retention of the record. (Tex. Bus. & Com. Code § 322.012(a)(1)-(2))

Unacceptable Practices Electronic signatures generated by 1) typing the employee’s name or 2) scanning a written signature and inserting/pasting it into a document are not acceptable. Interpretation Any employee who does not understand any portion of this Electronic Signatures Policy or has a question regarding its interpretation shall ask a supervisor for clarification. If necessary, the supervisor shall solicit an opinion from the Purchasing Manager regarding the interpretation of this Policy.

H. Maintenance Agreements Purpose The City maintains service agreements with manufacturers and authorized service centers for various types of specialized machines and equipment. Computer equipment is maintained through the Information Technology Department. No computer maintenance agreements will be contracted unless first approved by Information Technology. It is the responsibility of the user department to budget funds for and to inform Purchasing of any equipment that needs to be covered under a maintenance agreement. Maintenance agreements should also be canceled on equipment that is no longer necessary or is disposed of at public auction. Procedure Requests for maintenance of equipment shall be submitted to Purchasing through the automated requisition system and the formal agreement shall be sent via interoffice mail or e-mail to the Purchasing Manager. If the request is for a maintenance renewal, please allow

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ample time to process the paperwork prior to the expiration of the current agreement. Attention must be paid to the terms of the agreement for cancellation purposes as most contracts require a formal written cancellation notice within a certain time period (e.g., 30 day prior notice); therefore, if a department will not be renewing a maintenance agreement, they must notify Purchasing at least forty-five (45) days before the agreement expires. Each City department is responsible for arranging repair service for equipment that is covered under a maintenance agreement. If a piece of equipment needs repair and no maintenance agreement exists, the user department must submit a requisition or (if urgent) request an emergency purchase order.

I. Lease Agreements All lease purchases or capital leases shall be coordinated through the Finance Department. This type of purchase and financing is unique and has special accounting and reporting requirements.

J. Expedited and Emergency Purchases We realize that emergencies do occur, and emergency purchases are those 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. Expedited purchases made in emergency situations are generally more costly than routine purchases; therefore, they must be kept to a minimum. Poor planning, overlooked requirements, or negligence may cause the need for expedited purchases but are not true “emergencies.” Please immediately contact Purchasing at (972) 744-4130 when emergencies or expedited purchases are detected.

Expedited Purchases Requisitions for expedited purchases are handled differently than routine purchases. There are two types of expedited purchases:

1) Purchases required quickly to prevent unacceptable work stoppage or service

deficiencies; 2) Purchases required immediately to prevent actual work stoppage or those made

to protect the health and safety of the citizens of the City.

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Expedited purchases are not emergency purchases. They are for items needed quickly to prevent costly delays, and therefore, warrant the additional cost and effort caused by the interruption of the normal work routine.

Requisitioning Expedited Purchases The normal requisition procedure should be used for both types of expedited purchases. The user department should contact the Purchasing Manager by telephone or e-mail to advise that special attention should be administered to receive the products or services as needed. Special comments relative to the expedited purchase should be entered in the “F20=Comments” portion of the requisition. Emergency Purchases Purchases defined as emergency purchases are handled similarly to those for expedited purchases with one major difference. Emergency purchases must meet one of the criteria allowed by Texas Local Government Code Sec. 252.022:

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;

2) A procurement necessary to preserve or protect the public health or safety of the municipality’s residents; or

3) A procurement necessary because of unforeseen damage to public machinery, equipment, or other property.

When emergencies arise that are not covered by maintenance agreements, contract purchase orders, FPOs, or Materials Management, please immediately notify Purchasing to determine the appropriate method to handle the situation. Normally, a verbal P.O. number will be given to the department representative for the chosen vendor in order to expedite delivery of the goods or services. Information needed to receive a verbal P.O. number is the vendor arrangements, the complete description of the item(s) or service required, and the specific costs involved. Once the order has been placed with the vendor, the requisition shall be submitted by the user department. The confirming requisition MUST reference the confirming P.O. number given over the telephone and must include a written overview of the problem and actions taken to remedy the emergency. If the situation allows, three (3) quotes may be solicited for emergency purchases valued over $3,000. Quotes shall be entered in the appropriate area of the requisition. Emergency purchases over $50,000 must receive approval from the City Manager or designee. Once the emergency is alleviated, the procurement will be placed on the next Council consent agenda for formal ratification.

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Requisitioning of Emergency Purchases Normal Working Hours. All emergency purchases occurring during normal working hours are processed through the Purchasing Division as follows:

1. The user department immediately notifies the Purchasing Division by telephone or e-

mail with as much information as possible regarding the emergency purchase required so that the appropriate action can be initiated.

2. Simultaneously, a purchasing requisition shall be prepared by the user department and sent through normal approval channels with supporting documentation.

3. The Purchasing Division or user department representative contacts as many vendors as necessary to arrange the emergency purchase. If time permits, the purchase order is completed according to normal Purchasing procedures, otherwise the purchase is completed by telephone. A confirming purchase order is completed after the fact.

4. Expedited delivery is requested for all emergency purchases. The person making the purchase may be required to pick-up the items from the vendor if expedited delivery is not available.

5. The Department head or designee in charge of the user department must provide the Purchasing Division a written justification that the purchase involved was a true emergency which meets one of the criteria outlined in this manual. The written justification must accompany the request and other documentation outlined in Item 2.

Evening, Weekends and Holidays. For other than normal working hours, when Purchasing Division support is unavailable, emergency purchases shall be processed as follows:

1. The responsible official of the user department takes whatever steps are necessary to procure needed supplies, services, or equipment to relieve the emergency. Only those goods or services needed during the evening, weekend, or holiday are procured. If insurance is required, proof of insurance must be obtained from the vendor as soon as possible, preferably before the work begins.

2. On the first working day following the emergency, the responsible official prepares a

requisition and submits supporting documentation (e.g., invoices, packing slips, or receipts) to the Purchasing Office.

3. The Department head or designee in charge of the user department must provide the

Purchasing Division a written justification explaining the emergency and certify the purchase involved was a true emergency which meets one of the criteria outlined in this manual. The written justification must accompany the requisition and other documentation outlined in Item 2.

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K. Sole or Single Source Purchases The following are reasons why a purchase might be practical from only one vendor.

1. Sole Source: The good or service is a one-of-a-kind or patented product, a

copyrighted publication available from only one source, or a unique item such as a work of art. There are no known competitive products.

2. Single Source: Single sources are available from more than one source but have a

justifiable reason to purchase from a single source. (e.g., natural monopoly created by having a sole distribution in Texas for a product or captive replacement parts for an existing piece of equipment).

Procedure Sole source purchases are handled the same as other purchases, with these modified procedures:

1. A comment must be included in the “Remarks” section of the requisition to verify that the requisitioning party has contacted a sufficient number of vendors and has reason to believe that only one practical source of supply exists. Documentation from the vendor verifying the sole source should be forwarded to Purchasing as justification for the sole source procurement.

2. Complete the requisition. 3. The Purchasing Division makes the final determination on sole and single source

procurements. 4. After the requisition is approved, the purchase order is prepared and sent to the

vendor.

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L. Petty Cash Purpose Accounting maintains a petty cash fund that can be used by City departments. Any item bought with petty cash cannot exceed $100. User departments make these purchases directly with the vendor and reimbursements are made providing the proper “Petty Cash Voucher” is completed and a copy of the receipt is attached. Comments It is important to remember that the City is exempt from paying any local or state sales tax; therefore, you will need a signed Tax Exemption Certificate at the time of purchase to verify that you work for the City. Otherwise, tax will be charged by the vendor and that amount may not be reimbursed. This will apply if the vendor does not accept the Tax Exemption Certificate or City of Richardson Tax ID number. Preparation A sample of the “Petty Cash Voucher” is provided on the following page. Petty cash forms are available on the Purchasing page on the City’s Intranet. Explanations of the various fields are as follows:

1. AMOUNT: The dollar amount to be received. 2. DATE: (current date) 3. PAY TO: Vendor name if cash is to be paid directly to vendor or your name if

voucher is for reimbursement. 4. DESCRIPTION OF ITEM/SERVICE PURCHASED: Reason for cash. 5. CHARGE TO ACCOUNT: Account number to be charged. 6. APPROVED BY: (Department Head or Authorized Signer) 7. RECEIVED BY: Person receiving the petty cash from Accounting.

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Sample Petty Cash Voucher

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IX. TAX EXEMPTION CERTIFICATE

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Tax Exemption Certificate Purpose The City is exempt from payment of all local and state sales tax and federal excise tax. The City is not exempt from paying hotel/motel occupancy tax. Procedure Vendors may ask for the City’s “tax exempt number,” but we do not have a number because we are a governmental agency. Vendors will often accept our Federal ID number which is 75-6000648. If requested by the vendor, a copy of the City’s Texas Sales and Use Tax Exemption Certification form is available on the Purchasing page on the City’s intranet.

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X. AFTER THE ORDER

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After the Order The purchasing function is not accomplished by simply placing an order with a vendor. Sometimes satisfactory delivery requires expediting, cancellation, or changes. A. Expediting

Follow-up or expediting delivery of the order is part of the purchase process. Therefore, any inquiries concerning late deliveries or long lead times should go through Purchasing.

B. Cancellation or Making Changes to a Purchase Order or Contract

A change order is issued to a purchase order if changes in plans or specifications are necessary in order to increase or decrease the quantity of work to be performed or if materials, equipment, or supplies are to be furnished. Change orders must not be issued unless funds are available for the increase. Council bids: The original contract price may not be increased by more than twenty-five percent (25%). The contract may not be decreased by more than twenty-five percent (25%) without the consent of the contractor. Change orders involving a decrease or increase of more than $50,000 must be approved by the City Council.

To cancel or change a purchase order, the user department must inform the Purchasing Manager by written memo or e-mail as soon as possible. Purchasing will then notify the vendor, and if approved, the change order/cancellation will be completed and processed. Copies of the change order/cancellation will be distributed for confirmation.

Occasionally the vendor will over ship an item and the user department will decide to keep the excess or the vendor will under ship an item and the department will decide to cancel the remaining balance. In these minor instances, the user department should make the proper notations on the purchase order so that Purchasing may make any needed adjustments.

C. Vendor Relations

The user department should notify Purchasing as soon as possible regarding any problems with a vendor pertaining to delinquent delivery, quality of product or service, invoicing problems, etc. These problems should be handled professionally, and persistent problems should be documented in writing for future vendor evaluation.

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XI. INSPECTION & RECEIVING OF GOODS

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Inspection & Receiving of Goods A. Receiving

Since there is no central receiving point at the City, each department is responsible for receiving commodities and services. All materials and equipment received in poor condition, damaged, or in noncompliance with the purchase order should be reported to the Purchasing Division as soon as possible. All relevant documentation should be retained by the user department. Purchasing will notify the vendor and prescribe corrective action.

Departments shall pay attention to the delivery ticket and how it matches the city’s purchase order. The employee receiving the materials must verify that all items were shipped as stated on the delivery ticket prior to receiving the goods. Once the goods have been received and a valid invoice has been received in Accounting, the vendor will be paid.

B. Inspection

All items must be inspected upon receipt, and whenever possible, in the presence of the vendor or shipper. Inspection should include:

1. Verification of correct delivery site. 2. Verification of correct quantities. 3. Verification of correct P.O. number on the packing slip. 4. Checking for damaged or defective goods.

C. Damage

There are two types of damage:

1. Visible damage – if freight is visibly damaged, receiving personnel should instruct the freight line driver to:

a. Note the damage on the freight bill; and b. Sign the freight bill.

2. Concealed damage – if there has been concealed damage, save the shipping cartons. Notify the freight line and request an “inspection report of concealed damage.” The receiving report should also note the damage.

Packing Materials – all boxes and packing materials should be kept in the event of visible or concealed damage freight shipments.

Damaged freight should always be reported to the freight line, within the same day of the delivery, if possible.

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D. Returns The freight company is not responsible for returning damaged supplies and/or equipment. When damage is detected, Purchasing should be notified immediately in order to determine the responsible party for the claim for damaged goods. Ideally, the damage should be detected and identified before the freight bill is signed and the driver leaves the premises. The freight terms outlined on the purchase order determines who has title to the items in transit and determines who makes arrangements for returning the items for replacement. The items should be returned after a claim has been filed and when authorization has been given by the vendor and/or Purchasing.

E. Receiving Complete Orders

When all items or services ordered on a purchase order are received complete (except for contracts):

1. Attach the packing slip or delivery ticket to the P.O.; 2. Sign and date the “Received By:” section; 3. Sign and date the “Authorized for Payment By:” section; and 4. Immediately submit the packet of information to Accounting.

PURCHASE ORDER

v E HOSEFAST N 2614 INDUSTRIAL LANE D SUITE 103 0 GARLAND, TX 75041-0000 R

~2--... .__,::::""..=:- -::~-:::::::®::::

VENDOR NUMBER REQUISITION NO. REQUISITION DATE PAYMENT TERMS

ITEM I ACCOUNT I

01100001410100

2 01100001410100

411 WEST ARAPAHO • RICHARDSON, TEXAS 75080 • 972n44-4130

1173 ORDERED 07107/2017 NET/30

SUBMIT INVOICE TO: ATTN: ACCOUNTS PAYABLE P. 0. BOX830309 RICHARDSON, TX 75083

or [email protected]

DESCRIPTION I ITEMCODE I

FITTING 12U-612

FITTING 12U-672

••••••••••••••••••••••••• CHAPTER 176 TEXAS LOCAL GOVERNMENT CODE REQUIRES THE PUBLIC DISCLOSURE OF CERTAIN INFORMATION CONCERNING PERSONS DOING BUSINESS. OR SEEKING TO DO BUSINESS WITH THE CITY OF RICHARDSON INCLUDING FAMILY, BUSINESS, AND FINANCIAL RELATIONSHIPS SUCH PERSONS MAY HAVE WITH CITY OF RICHARDSON OFFICERS OR EMPLOYEES INVOLVED IN THE PLANNING, RECOMMENDING, SELECTING AND CONTRACTING OF A VENDOR FOR THIS PROCUREMENT.

A COPY OF FORM CIQ AND CIS ARE AVAILABLE AT:

HTTP:IIWWW.ETHiCS.STATE.TX.USIFILINGINFO/ CONFLICT_FORMS.HTM

460 046 00133

460 046 00136

P.O. NUMBER 171456 P.O. DATE: 0710712017

S CITY OF RICHARDSON H MATERIALS MGMT-FLEET PART I 1260 COLUMBIA DRIVE p RICHARDSON, TX 75081

T 0

F.O.B. FREIGHT SHIP VIA

QTY. I UOM I UNIT PRICE I TOTAL AMOUNT

6;00 EA 7.7800 46.68

6.00 EA 13.4500 80.70

BUYING AGENT DATE PROMISED CONFIRMING ORDER TO VENDOR PHONE NUMBER

JON ALTIMORE 07107/2017

THIS·PURCHASE ORDER AGREEMENT IS SUBJECT TO THE TERMS AND CONDITIONS ON THE FACE AND REVERSE HEREOF, WHICH THE PARTIES AGREE ARE INCORPORATED HEREIN.

(972)271-8591 City of Richardson ·ey: (Purchasing Manager)

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F. Partial Receipt Voucher

Purpose The Partial Receipt Voucher is the designated receiving form to be used when a shipment is received in two (2) or more (partial) deliveries. It is also the receiving form used for all annual contracts. Procedure After inspection of the goods or the services received, attach the packing slip or delivery ticket and approved invoice to a completed partial receipt voucher and immediately submit to Accounting for processing. Preparation There are two ways to submit a partial receipt voucher. The first one is to make a copy of the purchase order. On this type of partial receipt, you would cross out any items that are not being received (either still outstanding or have been previously received), sign and date the partial, and submit it, along with the packing slip or delivery ticket to Accounting for processing. A sample of this type of partial receipt is provided at the end of this section. The second type of partial receipt is a partial receipt voucher form that the department would complete and submit to Accounting, along with any packing slips or delivery tickets. A sample of this form is provided at the end of this section. Explanations of the various fields are as follows:

1. P.O. NO.: Purchase order number for this order. It is usually referenced on

the packing slip or delivery ticket. (The vendor may have an incorrect or incomplete number on the paperwork. Make sure that the number referenced on the partial receipt voucher is the correct number for this order.)

2. RECEIVED FROM: Vendor name and address. 3. RECEIVING DEPARTMENT: Department receiving the merchandise. 4. VENDOR NUMBER: Vendor number from A/P system, if known. 5. CHARGE TO ACCOUNT NUMBER: Account to be charged. 6. ITEM NO.: Enter P.O. item number only. (If you have only one item on the

partial receipt voucher but it is item number four (#4) on the purchase order, enter “4.” as the item number on the Partial.)

7. ITEM DESCRIPTION: Brief description of items received. 8. QTY: Quantity received. 9. UOM: Unit of measure (e.g., each, dozen, case, lot). 10. UNIT PRICE: Cost per unit. 11. TOTAL (for each line item): Extended price (i.e., quantity x unit price).

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12. TOTAL (at bottom of partial): Grand total of all line item totals. 13. DATE: Date received. 14. SIGNED: Signature of employee authorized for accounts payable.

PURCHASE ORDER

v E HOSEFAST N 2614 INDUSTRIAL LANE D SUITE 103 0 GARLAND, TX 75041-0000 R

~2--... .__,::::""..=:- -::~-:::::::®::::

VENDOR NUMBER REQUISITION NO. REQUISITION DATE PAYMENT TERMS

ITEM I ACCOUNT I

01100001410100

2 01100001410100

411 WEST ARAPAHO • RICHARDSON, TEXAS 75080 • 972n44-4130

1173 ORDERED 07107/2017 NET/30

SUBMIT INVOICE TO: ATTN: ACCOUNTS PAYABLE P. 0. BOX830309 RICHARDSON, TX 75083

or [email protected]

DESCRIPTION I ITEMCODE I

FITTING 12U-612

FITTING 12U-672

••••••••••••••••••••••••• CHAPTER 176 TEXAS LOCAL GOVERNMENT CODE REQUIRES THE PUBLIC DISCLOSURE OF CERTAIN INFORMATION CONCERNING PERSONS DOING BUSINESS. OR SEEKING TO DO BUSINESS WITH THE CITY OF RICHARDSON INCLUDING FAMILY, BUSINESS, AND FINANCIAL RELATIONSHIPS SUCH PERSONS MAY HAVE WITH CITY OF RICHARDSON OFFICERS OR EMPLOYEES INVOLVED IN THE PLANNING, RECOMMENDING, SELECTING AND CONTRACTING OF A VENDOR FOR THIS PROCUREMENT.

A COPY OF FORM CIQ AND CIS ARE AVAILABLE AT:

HTTP:IIWWW.ETHiCS.STATE.TX.USIFILINGINFO/ CONFLICT_FORMS.HTM

460 046 00133

460 046 00136

P.O. NUMBER 171456 P.O. DATE: 0710712017

S CITY OF RICHARDSON H MATERIALS MGMT-FLEET PART I 1260 COLUMBIA DRIVE p RICHARDSON, TX 75081

T 0

F.O.B. FREIGHT SHIP VIA

QTY. I UOM I UNIT PRICE I TOTAL AMOUNT

6;00 EA 7.7800 46.68

6.00 EA 13.4500 80.70

BUYING AGENT DATE PROMISED CONFIRMING ORDER TO VENDOR PHONE NUMBER

JON ALTIMORE 07107/2017

THIS·PURCHASE ORDER AGREEMENT IS SUBJECT TO THE TERMS AND CONDITIONS ON THE FACE AND REVERSE HEREOF, WHICH THE PARTIES AGREE ARE INCORPORATED HEREIN.

(972)271-8591 City of Richardson ·ey: (Purchasing Manager)

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$46.68

PARTIAL RECEIPT VOUCHER FOR PURCHASE ORDER CITY OF RICHARDSON

P.O. NO. 171553

RECEIVED FROM !:!S~ta~p~le~s ~A~d:...:...va!::!n~ta::u:g~e'--------

ITEM NO.

1.

2

3.

4

5

6

7

RECErYING DEPT. Purchasing

VE DOR NUMBER 22185

ITEM DE CRJPTIO

Water

Envelope opener (Todd)

tap1er. full strip (Al i)

Correction fluid

Box cutter

Z-Grip gel pens. medium. blue (Kathy)

Toner cartridge, black, l-IP 4700

011-0553-514-6101 $71.89

612-7520-505-6101 $18.13

011-0552-514-6101 $45.89

0 11-0557-514-6101 $45.89

Invoice # 3350854631

Order # 7182270113-000-00 I

CHARGE TO ACCOUNT NUMBER 01 1-0553-514-6 101

QTY UOM UN1T

TOTAL PRJCE

" .) Cs 4.08 12.24

I Ea 5.09

I Ea 9.72

1 Ea .37

I Ea 2.67

I Box 14.05

I Ea 137.66

TOTAL $ 181.80

Submit partial recei ving record to Purchasing Department immediately upon receiving of articles or services to insure di scounts for City, made possible by prompt payment. Attach all packing s lips and receiving documents to the back of the Partial Receipt Voucher. WHEN LISTING .. ITEM NO.'. PLEA E REFER TO THE ITEM

UMBER 0 THE PURCHASE ORDER.

I certify that the above a11icles or services have been received in good order except as noted .

Date 31 August20 I7 Signed

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XII. INVOICES

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Invoices Purpose An invoice is an itemized statement of merchandise or service provided by the vendor. It contains the same information as the purchase order and is the means for settlement of financial obligations incurred when the purchase order is issued. A. Procedure

All approved invoices with the proper support documentation must be sent directly to Accounting for processing. If support documentation and invoice agree, the invoice will be processed for payment. Support documentation refers to purchase orders, partial receipt vouchers, FPOs, and receiving/shipping receipts. If there is a discrepancy between the original purchase order and the receiving paperwork that affects the quantity ordered or unit price and results in the P.O. and invoice not matching, a change order must be processed to ensure invoice payment. (See Section X.B. Cancellation or Change Orders) Invoices received by the user department should be processed for payment and sent to Accounting. Vendors should be notified to request a copy of all future invoices be sent to Accounting (in addition to the user department) to the address listed below:

ACCOUNTS PAYABLE P.O. BOX 830309 RICHARDSON, TX 75083 or [email protected] B. Prompt Payment Act

Texas Government Code Sec. 2251.021 (“the Prompt Payment Act”) stipulates that all local governments shall pay for goods and services within thirty (30) days of the date: the goods are received, the services are performed, or the invoice is received. If payment is not made within thirty (30) days, interest accrues. In order to comply with the Prompt Payment Act and avoid the interest penalty, all invoices must be sent directly to Accounting, and all receiving reports and partials must be submitted for processing no later than the next working day. (See Section XI. Inspection & Receiving of Goods)


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XIII. FREIGHT

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Freight Purpose Purchases may require shipping materials to the City. The cost of shipping is either paid directly by invoice, or indirectly when shipping is included in the quoted price of the goods. Once shipping terms are established, they are specified on the purchase order. Definition The following terms are designated shipping arrangements: A. Title & Control of Goods

1. FOB Destination The seller retains the title and control of the goods, and the invoice covering them does not become payable until they are delivered. The seller selects the carrier and is responsible for the risk of transportation, including the filing for loss or damages. This is the preferred method of delivery.

2. FOB Shipping Point

The purchaser assumes title the moment the carrier signs the bill of lading. The purchaser assumes risk of transportation, is entitled to route the shipment, is responsible for getting the goods to the destination, and for filing claims for loss or damage – regardless of who pays freight charges.

B. Payment Terms

1. Collect This modifier simply means that the carrier collects the transportation charges from the buyer.

2. Prepaid and Added

This modifier indicates that the seller will prepay the transportation charges, but will add the charges to the invoice for reimbursement from the purchaser.

3. Prepaid and Allowed

This means that the seller will prepay the transportation charges and that they are already included in the price of goods.

C. Shipping or Returns

If it becomes necessary to return goods to a vendor or ship a package, it is the responsibility of the user department to prepare the item for shipment. The mailroom accepts packages for mailing.

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XIV. CITY INVENTORY

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City Inventory

A. Materials Management The Purchasing Division works in conjunction with Materials Management to acquire commonly used items to be stocked in inventory for disbursement, as needed. The majority of the items stocked in Materials Management are purchased on annual contracts that secure fixed pricing and allow for the convenience of in-house inventory. Departments should check with Materials Management before any purchase is made to confirm that the item(s) needed are not already stocked in the warehouse. Departments should make arrangements with Materials Management to stock commonly used items in order to capitalize on volume discounts. An online catalog with pictures and descriptions of all items available in Materials Management is on the City’s Intranet site under the “Applications” section and is entitled “COR Inventory.”

B. Preprinted Materials The City stocks various printed items that are used by most departments. City letterhead, one- and two-color envelopes, and mailing labels are purchased in large quantities to acquire the best price and are warehoused for disbursement, as needed. Preprinted items may be ordered by contacting Materials Management.

C. Copy Paper Copy paper is included in the City’s office supplies annual contract and user departments may order it in the same manner as general office supplies. For your convenience, the City stocks letter and legal-size copy and laser printer paper in Materials Management at the Service Center for emergencies.

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XV. DISPOSAL OF SURPLUS PROPERTY

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Disposal of Surplus Property A. Scope of Services

The primary responsibility for disposal of surplus property through public auction has been delegated by the City Manager to the Purchasing Manager. The Purchasing Division works in conjunction with Materials Management to organize and coordinate all auction materials for disposition. Surplus property shall consist of the following:

1. City-owned real or personal property which has been retired from service and no

future need is anticipated.

2. All abandoned, stolen, or recovered property of every kind unclaimed with the Police Department for a period of sixty (60) days and bicycles unclaimed for a period of thirty (30) days.

3. Property seized by the Police Department and no longer of use to the department.

City owned surplus property may be sold at public auction, by sealed bid, to another governmental entity, or by any other means provided by law at the discretion of the Purchasing Manager. All abandoned, stolen, recovered or seized properties must be sold at public auction according to the City of Richardson Code of Ordinances. Auction items may be stored within the mezzanine or locked cage area at the Richardson Service Center. As necessary, items may be stored outside the caged area within the security of the Materials Management warehouse of the Service Center. Funds will be appropriated in the Purchasing Division budget for auction related expenditures. As specified by the City of Richardson Home Rule Charter, Article 18, Section 18.01:

“No officer or employee of the city shall have a financial interest, direct or indirect, in any contract with the city, or be financially interested, directly or indirectly, in the sale to the city of any land, materials, supplies or services, except on behalf of the city and any officer or employee guilty thereof shall thereby forfeit such person's office or position. Any violation of this section, with the knowledge, expressed or implied, of the person or corporation contracting with the city council shall render the contract involved voidable by the city manager or the city council.”

Under this provision an employee shall not purchase property at any type of City of Richardson auction, which includes online auctions hosted by an online auctioneer.

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The prohibition includes an employee’s spouse since property acquired during marriage is “community property” for which the employee would have an ownership. The prohibition includes other relatives of an employee if such relative purchases the property on behalf of the employee or employee’s spouse, which could be evidenced by later ownership by the employee.

B. Preparation for Sale

1. The Purchasing Manager will coordinate the date(s), time(s), and location(s) of the auction(s) with the auctioneer.

2. The Purchasing Manager will notify all city personnel of the approved date(s), time(s), and location(s) of the impending auction(s). Every effort will be made to provide Internet auctions on a semi-annual basis (May/June and November/December) of each calendar year in order to consistently dispose of surplus property. The Purchasing Division will periodically broadcast citywide e-mails regarding auction information.

3. The Purchasing Manager will publicly advertise all auction(s) in the official newspaper of the city once per week for two (2) consecutive weeks. The date of the first publication will be at least fourteen (14) days prior to the date of the auction sale. Such notice shall also be posted at City Hall for a minimum of ten (10) days prior to the sale.

4. Prior to delivering any item to the Service Center for auction, the user department shall send an e-mail to [email protected] offering the item(s) for City use by any other department. The e-mail should include pictures, describe the item(s) in detail, and state the current condition. Purchasing will then post the pictures of the item(s) on the Intranet. If no other department claims the item(s) within a reasonable amount of time, such property may then be delivered to the Service Center for auction within the timeline established and communicated by Purchasing.

5. The Material & Parts Supervisor shall accept City surplus property at the auction storage facility no less than ten (10) working days prior to the date auction items are listed with the auctioneer. It is the responsibility of each department to deliver the surplus property for sale to the Service Center for storage.

6. Purchasing and/or Materials Management reserves the right to refuse auction items for storage when the facility is at capacity regardless of any posted auction schedule(s). Consequently, a citywide e-mail will be broadcast making this announcement. It is highly recommended that the department(s) check with Materials Management before delivering auction items for storage due to the limited amount of storage space available.


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7. A detailed description, make, manufacturer, model number, serial number and city

tag number, if any, of all items delivered for auction shall be placed on a list by the Materials Management personnel and provided to the Purchasing Division.

8. City personnel shall have the right to claim, for City use, any item warehoused in the auction storage facility prior to the items being listed with the auctioneer for sale. The only exceptions shall be computer equipment and Police Department impounded property. The Purchasing Manager must approve all prospective items claimed by City departments after this deadline. Materials Management personnel and the auctioneer shall be advised of any items claimed in order to delete the item from the auction list.

9. No copiers, fax machines, printers or anything with a hard drive will be sold at auction or returned to the lease holder until Information Technology has analyzed the machine for stored data. Information Technology will be responsible for the removal of any City information that has been copied, scanned, faxed or otherwise transmitted or stored on the hard drive or memory.

C. Internet Auctions

1. All preparation requirements above will apply to Internet auctions.

2. The Purchasing Manager will coordinate with the auctioneer the following: a. Date(s) to physically inspect and take digital pictures of the items. b. Dates and times that the City’s auction items will be posted on the auctioneer’s

website for inspection and bidding. c. Closing date and time for electronic bidding through the auctioneer’s website.

3. Digital pictures of all auction items that will be sold on the Internet will be taken by

the auctioneer or the City. If the items are large and are unable to be moved (e.g., refuse containers, signal heads/poles, and large pieces of equipment or machinery), the user department should e-mail the Purchasing Manager digital pictures and a description of the item(s) for inclusion in the next scheduled auction.

4. The auctioneer will provide Internet auctioneering services according to the terms and conditions of the City’s current contract. Upon completion of the auction, the auctioneer shall: a. Communicate by telephone or e-mail with Materials Management, Purchasing,

and Accounting when buyers have rendered payment and have the proper paperwork required to pick-up the merchandise.

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b. Provide a sales recap to Purchasing and Accounting which outlines the buyer’s name and address and amount of sale for each item sold. The auctioneer is responsible for collection and reporting of all sales tax.

c. Submit payment by ACH transmission into the City’s bank account.

5. The successful bidder shall pick-up the property according to the dates and times specified by the auction. The ownership of the property reverts to the City if the successful bidder does not comply with the removal time limitation.

6. The auctioneer shall have the right to negotiate the sale of any item(s) sold and not claimed to the next highest bidder.

7. It is generally not the City’s policy to set minimum prices on items sold at auction; however, should it be in the best interest of the City to set a minimum price, the item should be appraised by an expert (e.g., a jeweler if a piece of jewelry or a coin collector/shop for rare coins) to determine a fair market value.

8. All City surplus property and abandoned, stolen, or recovered property unclaimed with the Police Department are sold “AS IS – WHERE IS AND WITH ALL FAULTS AND DEFECTS THEREIN.”

D. Surplus Vehicle & Rolling Stock Auctions

1. Purchasing will interface with the Fleet & Materials Manager to allow sufficient lead-time for “make ready” of all rolling stock scheduled for auction. Rolling stock should be scheduled for auction as soon as possible after removal from service in order to receive the highest return.

2. The Fleet Services Division will provide a list of vehicles and equipment that is

ready for auction. A Vehicle Information Sheet will be completed for each vehicle/equipment identifying the specific details needed by the auctioneer.

3. If digital pictures are provided by Fleet Services, several angles should be taken

in order to show the condition of all sides of each vehicle or piece of equipment.

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4. The Purchasing Manager will coordinate with the auctioneer the following: a. Date(s) to physically inspect and take digital pictures of the vehicles and

equipment. b. Dates and times that the city’s auction items will be posted on the auctioneer’s

website for inspection and bidding. c. Closing date and time for electronic bidding through the auctioneer’s website.

5. Purchasing will prepare the following auction paperwork, with information

provided by Fleet Services, for each vehicle to be sold: a. Application for Texas Title and/or Registration – This form is issued to the

buyer so that he/she can apply to have the City’s name removed from the title and changed to his/her name. The buyer has ten (10) days from the date of the sale to provide this form to the County Tax Office.

b. Vehicle Title – The Purchasing Manager signs over the original title to the new buyer. The title is provided to the buyer at the same time as the Application for Texas Title and/or Registration.

6. Purchasing submits a Vehicle Transfer Notification online to notify the State of Texas that ownership has changed from the City to the buyer and the City is no longer liable for that vehicle.

7. The city surplus auction shall be conducted by the auctioneer according to the procedures outlined above (See Internet Auctions).

E. Auction Receipts, Settlement, & Retention

1. The auctioneer will be responsible for the collection of all Internet auction payments per our contract agreement. Once payment is made to the auctioneer by the buyer, the auctioneer sends the Purchasing Manager a sales recap outlining all sales with names/addresses of the buyers, sales prices of each individual item, and a check (or funds may be deposited via ACH transmission) for the total gross sales less sales tax and auctioneer commission.

2. No auction items are released to any buyer without a paid auction sales receipt from the auctioneer, photo identification matching the name of the buyer on the paid receipt, and if not present, written verification from the buyer that another named person is authorized to pick-up the purchased item(s).

3. Upon receipt of the proceeds from the auctioneer, the Purchasing Manager verifies all sales against receipts and documentation provided by the auctioneer.

4. Once the sales and receipts are reconciled by the Purchasing Manager, a report is generated, addressed to the City Controller, which includes the following: a. The total amount of auction proceeds, with a breakdown of the amounts

deposited into the various revenue accounts;

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b. A copy of the sales recap from the auctioneer; c. A detailed auction list, which includes the buyer and the amount of sale for

each item or lot sold; and d. Copies of this report shall be distributed to the Fleet & Materials Manager,

Police Property Section Supervisor, Director of Finance, and Budget Officer.

5. All proceeds derived from the auction are subject to audit.

6. A separate file for each auction shall be compiled and retained in Purchasing according to the State of Texas Records Retention schedules.

purchasing manual - city of richardson

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