O-778-93 04/12/93VILLAGE OF LEMONT
ORDINANCE NO. 7 71
AN ORDINANCE CREATING A
COMPREHENSIVE PURCHASING MANUAL
FOR THE VILLAGE OF LEMONT
ADOPTED BY THE
PRESIDENT AND BOARD OF TRUSTEES
OF THE VILLAGE OF LEMONT
This /o day of /G7 , 1993.
Published in pamphlet form by
authority of the President and
Board of Trustees of the Village of
Lemont, Counties of Cook, Will, and
DuPage, I inois, this
day of 1993
ORDINANCE U
AN ORDINANCE CREATING A COMPREHENSIVE
PURCHASING MANUAL FOR THE VILLAGE OF LEMONT
WHEREAS, The Village of Lemont seeks to establish a Comprehensive Purchasing
Manual to regulate the procurement of materials, goods, services and supplies; and
WHEREAS, the Manual shall be applicable to all purchasing conducted with Village
funds by authorized employees, Commission members and Downtown Lemont, Inc.; and
WHEREAS, the Manual provisions shall be effective as of May 1, 1993.
NOW, THEREFORE, BE IT ORDAINED by the President and Board of Trustees
of the Village of Lemont, Cook, Will and DuPage Counties, Illinois, that the attached
Purchasing Manual is hereby passed and approved, and shall be effective May 1, 1993.
Kenneth Bromberek
Barbara Buschman
Bert Ercoli
Barbara Buschman
Bill Margalus
Ralph Schobert
Approved by me this � day of
Attest
AYES NAYS PASSED ABSENT
v
V
227 teir.
CHARLENE M. SMOLLEN, Village Clerk
affa
CHARLENE M. SMO , Village Clerk
, 1993.
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PURCHASING MANUAL
VILLAGE OF LEMONT
I. PURCHASING POLICY
It is the Village's policy to conduct its procurement operation in a competitive,
fair and impartial manner in the best interests of the Village of Lemont.
II. APPLICABILITY OF PURCHASING MANUAL
The purpose of this manual is to standardize purchasing procedures for any
persons working for or with the Village of Lemont. Each Department and
Commission shall be responsible for following the provisions of this manual
and maintaining its own budget allowances.
Although not a Commission of the Village, purchasing undertaken by
Downtown Lemont, Inc, with Village funds, shall be done in accordance with
the provisions of this manual.
III. PURCHASING AUTHORJTY
Some degree of purchasing authority rests with Commission Chairs,
Department Heads, Village Treasurer, and the Village Administrator. For
items exceeding $10,000, authority rests with the Village Board. The Authority
to approve purchases within specific monetary limits is listed as follows:
A. VILLAGE BOARD
The Village Board has authority to approve budgeted purchases in
excess of $10,000.
1
B. VILLAGE ADMINISTRATOR
The Village Administrator has authority to approve budgeted purchases
up to and including $10,000.
C. DEPARTMENT HEAD
Department Heads shall have the authority to approve budgeted
purchase up to and including $1,000. This authority shall include open
purchase orders, with the exception of those approved open purchase
orders which have a higher limit. The above limits may be adjusted
downward when necessary by the Village Administrator.
D. SUPERINTENDENT OF PUBLIC WORKS
The Superintendent of Public Works shall have additional authority up
to $5,000 for emergency purchases for the following items:
• Services /materials to maintain vehicles.
• Services /materials to maintain wells.
• Services /materials to maintain streets.
• Services /materials to maintain sewer system.
• Services /materials to maintain water system.
E. COMMISSION CHAIRS
Commission Chairs shall have the authority to approve budgeted
purchases up to and including $500. This authority shall include open
purchase orders, with the exception of those approved open purchase
orders which have a higher limit. The above limits may be adjusted
downward when necessary by the Village Administrator.
F. EXCEPTIONS
Purchases involving certain line items will require approval by the
Village Administrator regardless of amount. These restricted items
shall include all travel, training, and membership fees not listed in the
approved Department budget detail pages, and capital outlay purchases
not specifically listed in the capital outlay detail pages of the budget.
IV. STANDARDS OF PURCHASING
A. COMPETITION
While competitive bidding is not required for every purchase, it is
required that proposals be solicited from a minimum of 2 -3 vendors
2
when purchasing materials, commodities, services or goods which are
not of a "sole source" nature.
B. LOWEST COST
The goal of a formalized purchasing effort is to provide the best quality
merchandise and services at the lowest cost to the Village's taxpayers.
The best quality at the lowest price does not necessarily mean the
lowest price. Many times lowest price merchandise does not last as
long as the next highest cost from a different vendor. Care must be
taken to analyze both price and durability /quality of services in order
to determine the lowest cost. When not selecting the lowest cost
proposal or bid, the purchaser shall justify the reasons should the
decision ever be questioned.
Lowest cost shall also take into account any travel time, vehicle time,
fuel use, etc. which may be required to obtain merchandise by traveling
outside the Village.
C. CASH DISCOUNTS
Cash discounts shall be considered as an element of cost. Every effort
shall be made to assure that all discounts are legitimately offered and
taken.
D. LOCAL VENDORS
The Village should use local vendors for goods and services whenever
practicable and possible. A local vendor may charge a higher price for
an item or services, but will forego freight or carrying costs. Local
vendors may also deliver much faster than vendors located out of town
which may have non - monetary benefits to the organization. All
advantages or disadvantages should be weighed to determine the best
and lowest cost to the Village.
As a rule of thumb, if a local vendor's price is no more than 10% higher
than a non -local vendor, the local vendor shall be utilized. This is
based upon the assumption that no quality differences exist in the
merchandise. Such a local vendor preference shall be applicable for
those purchases of $500 or less.
E. ABUSE OF PURCHASING AUTHORITY
Care shall be taken to remain within the purchasing authority granted.
Purchasers are reminded to follow the spirit of the rules and
regulations contained in this manual. For instance, dividing like or
3
similar orders into smaller requisitions or purchase orders to insure
falling within authorized purchasing authority is a direct violation of
the spirit of this manual and is not permitted.
If any aspect of the manual needs clarification or interpretation, it is
the responsibility of the purchaser to inquire with the Treasurer.
F. TREASURER
All Department Heads shall be responsible for maintaining the
purchasing system of the Village. The Treasurer shall inform all users
of proper procedure and shall advise the Village Administrator when
problems occur or revisions to this manual are required. The
Treasurer shall have final authority in decisions regarding proper
coding of expenditures.
V. PURCHASING PROCEDURES
A. PETTY CASH
When a purchase must be undertaken on short notice, the use of petty
cash funds is authorized for reimbursement purposes. Petty cash is
available from the Village Hall cashier, Public Works coordinator, and
the Police Chief's secretary. Petty cash funds should not exceed a
single purchase amount of $75.
In order to receive reimbursement, it is necessary to present a receipt
obtained from the vendor and complete a petty cash slip (see Exhibit
A).
Use of petty cash is intended for convenience and /or unforeseen
purchases. It is not intended to circumvent the established purchasing
procedures, or to avoid proper planning of activities.
B. PURCHASES UP TO AND INCLUDING $100
Purchases up to and including $100 do not require a purchase order.
Upon preparation of a requisition (See Exhibit B), Department Heads
or Commission Chairs may place the order themselves, submitting the
signed requisition with the packing slip and invoice to the Finance
Department. No purchase order will be prepared.
4
C. PURCHASES BETWEEN $100 AND $1.000
For purchases between $100 and $1,000, Department Heads shall
submit a signed requisition with price quotations as appropriate to the
Finance Department which shall prepare a purchase order (See Exhibit
C). Commission Chairs shall utilize requisition forms for purchases
between $100 and $500. The Department Head or Commission Chair
shall indicate the urgency of the purchase order and whether it needs
special handling other than the normal procedure.
Said requisition shall be properly filled out with the following
information:
1. Name and address of vendor.
2. Date of requisition.
3. Explanation of purchase.
4. Quantity ordered.
5. Part number, if applicable.
6. Size, if applicable.
7. Full description of items to be purchased using specific language.
(If pertinent, include common or trade name, color, size, etc.)
8. Price of each item plus shipping.
9. Delivery instructions.
10. Name and Department of purchaser.
11. G /L# FF- DD- LLLLL.
Submit page one and page two of the completed requisition to the
Finance Department, keeping page three for Departmental records.
The Treasurer shall prepare and return the purchase order and page
one of the requisition to the submitting Department, and when
necessary notify the Department Head or Commission Chair of
impending depletion of line item budgeted. The item(s) shall be
ordered by the Department or Commission.
D. PURCHASES FROM $1,000 - $10,000
For those purchases from $1,000 to $10,000, a requisition signed by the
Department Head shall be presented to the Village Administrator.
Upon Approval, the Village Administrator shall give the approved
requisition to the Treasurer for preparation of the purchase order.
Upon completion, signed purchase order shall be returned to
Department or Commission. Purchases made by the Village
5
Administrator shall follow this process with a requisition submitted
directly to the Treasurer. Commission Chair purchases from $501 to
$10,000 shall follow this procedure.
E. PURCHASE OVER $10,000
Purchases over $10,000 require competitive bidding in accordance with
statutes, unless sufficient justification is presented. Such justification
shall include a detailed description of services or merchandise, price
quotations and the reasons for not using the regular methods outlined
below.
1. Competitive Bids
As a result of the amount of time involved in competitive bidding,
Departments should adequately plan their purchases before a
serious need arises.
2. Advertisement
Formal bids must be advertised in a local newspaper at least 10
business days before the bid opening. Departments shall work
with the Treasurer to insure an advertisement is published. The
ad must include the date, time and location of the bid opening.
3. Bid Recommendation.
The Department Head shall make a written recommendation to
the Village Administrator after the sealed bids are opened.
Normally, the low bid shall be accepted. However, certain
conditions may warrant acceptance of a higher bid.
4. Exceptions to Bid Requirement
Normally, professional fees are considered sole source and are
exempt from the competitive bidding process. Such services
include, but are not limited to, legal, engineering, architectural
and maintenance.
F. WHEN A LINE ITEM IS TO BE EXCEEDED
Regardless of the dollar amount of a purchase, Commission Chairs and
Department Heads may not make a purchase knowing a budget line
item is or will be exceeded. If a line item is to be exceeded, approval
of the Village Administrator is required. Department Heads and
Commission Chairs will be required to institute a budget transfer
within their budget to account for any specific line item deficits incurred.
6
VI. OPEN PURCHASE ORDERS
Much of the purchasing done by the Village is of a recurring nature. Time
and paperwork can be reduced for this type of purchase by use of open
purchase orders. Once a vendor is established, open purchase orders are
written for a specific dollar amount with prices or unit costs displayed.
Purchasers are named as well as any handling considerations. Open purchase
orders are in force for the amount of time specified, but no longer than the
end of the fiscal year. It is the intention of the Village to make use of open
purchase orders for as many commodities or services as possible. It is the
Department Head and Commission Chair's responsibility to insure compliance
with the terms and conditions of the open purchase order. The Finance
Department will periodically review all open purchase orders. If the service
or commodity is being purchased or used on a basis that will cause the
purchase order to expire before its expiration date, the purchaser and
Treasurer shall meet to determine the adequacy of the open purchase order.
In view of the fact open purchase orders are utilized with large volume
vendors, the Village shall make all efforts to negotiate volume discounts with
such vendors.
VII. RECEIVING OF GOODS
Upon receiving purchased goods or services, it is the responsibility of the
Department Head and Commission Chair to insure the order is correct and
complete. For this reason, departmental copies of all purchase orders and
requisitions should be kept on file for reference purposes.
Department Heads and Commission Chairs are responsible for submitting
invoices for payment by the Finance Department. The purchaser shall note
the receipt of an order on the packing slip, signed by the person authorized
to receive goods. This will make the task of approving invoices significantly
easier when the invoice is received after an order is delivered. Any problems
occurring with a delivered purchase should be reported to the Finance
Department immediately. This will allow any adjustments to be made to the
budget records.
7
VIII. JOINT PURCHASING
All purchasers shall be aware of the potential of utilizing joint purchasing
opportunities to achieve a lower unit cost for items. Such purchasing shall be
classified as internal and external.
A. INTERNAL JOINT PURCHASING
Internal joint purchasing refers to items which may be procured by
more than one Department. Such goods include office supplies,
building maintenance supplies, pagers, office furniture, etc. It shall be
the responsibility of the Finance Department to monitor purchases or
historical patterns to determine whether internal joint purchasing
opportunities exist. As opportunities are identified they are to be
brought to the attention of the Village Administrator for coordination
among Departments.
B. EXTERNAL JOINT PURCHASING
External joint purchasing refers to items which may be procured
through the State of Illinois -CMS Program or through other units of
local government. Department Heads and Commission Chairs shall
explore opportunities for external joint purchasing within their scope
of responsibility.
IX. CONFERENCE, TRAVEL, MEETING, EDUCATIONAL
EXPENSES
The Village provides reimbursement of appropriate expenses relating to
professional conferences, seminars, business meetings and other training
opportunities. Any professional development reimbursement shall be
requested on a travel /expense reimbursement form attached as Exhibit D.
Specific regulations pertaining to reimbursement is listed as follows:
A. USE OF PERSONAL VEHICLE
The use of a personal vehicle for professional development (or any
other business purpose) shall be reimbursed at the mileage rate utilized
by the Internal Revenue Service for annual taxation purposes. The
Finance Department shall insure current rates are used. Mileage shall
not be reimbursed for travel related to coursework taken as part of a
college or junior college credit course.
8
B. CONFERENCE EXPENSES
Attendance at regional or national conferences typically involve a range
of expenses including registration, transportation, meals, hotel parking,
taxi, tips, etc. Due to the fact a wide range of cities are visited for
conferences, and since meal and hotel costs will vary depending upon
the local cost of living, discretion is left to the Department Head as to
keeping expenses at a moderate level. Daily per diem for meals shall
not exceed $30.
If a spouse (or other party) attends a conference location along with an
employee, the Village reimbursement shall only include those expenses
related to the employee. Hotel room reimbursement shall be made at
the single rate, rather than the double /family rate, if lodging costs are
higher for the additional party.
C. EDUCATIONAL/CREDIT COURSES
See Personnel Policy Manual for specific provisions.
D. DAY SEMINARS/TRAINING
Professional development which does not involve an overnight stay shall
not include any meal reimbursement. If the registration fee includes
a luncheon or meal fee as part of the program, it shall be reimbursed.
E. RECEIPTS
Employees shall furnish receipts of meals, expenses, etc. for which they
seek to receive reimbursement.
X. PURCHASING ETHICS
As in all facets of your relationship with the Village, all Department Heads
and Commission Chairs are to undertake all purchases with high ethical
standards.
The following guidelines should be utilized to guide all purchasing decisions
made:
• Price and quality, delivery and service shall be the prime objectives in
any purchasing decision.
• Vendors shall be treated fairly and equally during negotiations or
discussions pertaining to the Village.
• No decision shall be based upon any personal relationship with a
9
vendor.
• Vendors shall be held accountable for performance by the individual
obtaining services or goods.
• No gifts, gratuities or favors shall be accepted (see Personnel Policy
Manual) from vendors in an effort to influence decisions.
• Be a professional.
tiTUR AL
1/1/93
10
PETTY CASH
$
FOR
CHARGE TO ACCOUNT
SIGNED
DATE II universal D2 -03009
410/ REQUISITION PURCHASE ORDER
OPEN PURCHASE ORDER
VENDOR INFORMATION
Name
Address
City State
Zi p
VENDOR CODE 1
SHIP TO:
Department
BILL TO:
Date
P.O. #
HIP DATE
CANCEL DATE
LINE ITEM
QUANTITY
DESCRIPTION
DEPARTMENT /COMMISSION
APPROVED:
EXHIBIT B
Shipping Cost
TOTAL
COST EACH
TOTAL COST
FINANCE DEPARTMENT ONLY
DATE PAID:
CHECK NO:
COMMENTS:
REQUISITION 4/ PURCHASE ORDER
OPEN PURCHASE ORDER
VENDOR INFORMATION
lame
Address
pity State
Zi p
VENDOR CODE it
SHIP TO:
Department
BILL TO:
Date
P.O. 1
SIP DATE
CANCEL DATE
FINANCE DEPARTMENT ONLY
DATE PAID:
CHECK NO:
COMMENTS:
LINE ITEM
QUANTITY
DESCRIPTION
COST EACH
TOTAL COST
EXHIBIT C
DEPARTMENT /COMMISSION
APPROVED:
Shipping Cost
TOTAL
FINANCE DEPARTMENT ONLY
DATE PAID:
CHECK NO:
COMMENTS:
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