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1 RESOLUTION NO. 06- 18388 A RESOLUTION OF THE BILLINGS, MONTANA CITY COUNCIL ADOPTING A CITY-WIDE PURCHASING POLICY WHEREAS, the City of Billings Purchasing Manual has been in use since 1994 but has never been adopted as the official policy of the City of Billings; and WHEREAS, the City purchases a substantial amount of goods and services each year through its various departments and agencies; and WHEREAS, state law requirements regarding municipal contracts have changed since 1994; and WHEREAS, the City of Billings needs to adopt a Purchasing Policy to establish city purchasing policies as well as a procedures manual outlining the various methods of appropriate procurement practices used by the City of Billings in order to provide for an efficient and equitable system of public purchasing by the City; to obtain the maximum purchasing value of public funds in procurement by the City, and to provide for a procurement system of quality and integrity; and WHEREAS, the 2006 City of Billings Purchasing Procedure is being adopted contemporaneously by Administrative Order. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BILLINGS, MONTANA, AS FOLLOWS: That the City of Billings hereby adopts the 2006 City of Billings Purchasing Policy which is set forth in Attachment All prior versions of the City of Billings Purchasing Policies are repealed, revoked and superseded thereby. APPROVED AND PASSED by the City Council of the City of Billings, this 13th day of February, 2006. THE CITY OF BILLINGS: BY: Ron Tussing, MAYOR ATTEST: BY: Marita Herold, CMC/AAE CITY CLERK ---PAGE BREAK--- 1 Attachment CITY OF BILLINGS PURCHASING POLICY February 2006 ---PAGE BREAK--- 2 Introduction In order to provide an efficient purchasing program built on excellence and expertise it is important that all personnel (Citywide) function as a team with cooperation as the essential element. Those individuals whose duties require them to become a part of the purchasing cycle must be completely acquainted with the program and have a clear definition and understanding of its purposes, insofar as it applies to the procurement of materials, supplies, equipment and professional services at the lowest possible cost consistent with the quality needed for the operation of municipal departments. Policy Summary The City of Billings Purchasing Policy establishes an efficient, fiscally responsible, centralized purchasing system, a program, which will effectively provide day-to-day service and support citywide. This policy recognizes and addresses the importance of the overall support mission and the need for maximizing and enhancing whenever possible, the value of each tax dollar expended. The City of Billings requires departments, divisions, units and City personnel to cooperate fully in their adherence to policy and procedure related to the Purchasing Policy as adopted by the City Administrator and/or the City Council. Personnel Behavior according to Purchasing Policy 1. City of Billings personnel will govern themselves in a manner that is consistent with the Code of Ethics, City Codes and Resolutions. 2. The Purchasing Policy is created to promote and cultivate at all personnel levels within the City of Billings goodwill and good business relationships with vendors in order to establish equity and protect the public interest in such a way that enhances the City's reputation for impartiality, courtesy, ethical deportment, service, and economy. 3. The Purchasing Policy assures that all purchases receive the benefit of competition to the maximum extent practicable, through the use of formal sealed bids, quote bids, cost verification methods, and other recognized and professionally acceptable methods of procurement that accrues positive benefit to the City of Billings. I. Purpose This policy establishes efficient procedures and guidelines to aid each department of ---PAGE BREAK--- 3 the City of Billings in monitoring its own compliance and commitment to authorizing, approving and processing expenditures. II. Scope II.1. This policy supersedes all previous City of Billings purchasing policies. If future policies conflict with or supersede parts of this policy, the remaining sections of the policy will stay in effect. II.2. The policy applies to all City of Billings departments and divisions. It applies to ALL types of expenditures. II.3. Public procurement functions essentially share primary fundamental goals such as obtaining maximum value for each tax dollar expended and establishing systematic, consistent and fiscally responsible accountability and control over all purchases. II.4. The City of Billings Finance Department is responsible for maintaining overall control and implementation of the policy. II.5. The City Council approves the Purchasing Policy and the City Administrator establishes the Purchasing Procedures of the City of Billings through Administrative Order. III. Policy Statement III.1. It is the policy of the City of Billings to obtain maximum value for each tax dollar expended in the purchase of goods and services, and to establish systematic, consistent and fiscally responsible accountability and control over all City purchases. III.2. This policy applies to all activities, including the City's State and Federally- funded programs or grants and other entities under the authority of the City Administrator and/or City Council. It includes but is not limited to the acquisition of: Equipment Merchandise Materials Professional services Other services Construction contracts III.3. This policy is in compliance with all Federal and State laws as they may ---PAGE BREAK--- 4 apply. III.4. Those who fail to comply with this policy may be subject to disciplinary action. III.5. This policy will be used in conjunction with the policies in place for the Capitalization Policy/CIP, the Equipment Replacement Plan (ERP), and the Technology Replacement Plan (TRP). These policies are available for reference in Appendix A. III.6. Upon adoption of this policy, the City Council authorizes the City Administrator to establish any procedures and standards necessary for implementation. III.7. The City Administrator will review this policy at least every two years and make recommendations for changes to the City Council.