DATE: June 1, 2016
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Russell Truell, Assistant City Administrator / CFO
Brian Wilcox, Purchasing Manager
SUBJECT:
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Consideration of Resolution No. 2016-24, A Resolution Adopting A Revised Purchasing Policy For City Of Franklin Procurements Not Pertaining To New Construction. (06/09/16 Finance - Referred to 6/28/16 BOMA, New Business)
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Purpose
The purpose of this memorandum is to present Resolution No. 2016-24, a resolution that would adopt a revised Purchasing Policy for City of Franklin procurements not pertaining to new construction.
Background
Staff recommends that the Purchasing Policy for City of Franklin procurements not pertaining to new construction be revised in the following ways:
• to recognize and be made compatible with a new disbursements policy for the City;
• to explicitly authorize the use of procurement contracts established by a cooperative purchasing arrangement recognized by the City, certain procurement contracts established by the federal General Services Administration, and other arrangements and methods pursuant to Tennessee and/or federal law as alternatives to soliciting sealed bids or proposals pursuant to public advertising;
• to clarify that the category of sole-source purchases pertaining to maintaining, expanding, or improving a manufacturer-specific system already in use applies whether that system is the City’s or that of another governmental agency with which the City must cooperate in order to provide the public service relevant to the proposed purchase;
• to add reference to requests for qualifications as a recognized method of selecting a service provider in certain instances; and
• to clarify that purchases made by means of a purchasing card pursuant to the City’s purchasing card program are to comply with City purchasing policy and procedures;
• to explicitly state that purchasing card cardholders are expected to exercise good judgment in making a decision about whether to make a purchase by considering (a) whether the potential purchase is prudent and necessary, and (b) whether the potential purchase would reflect well on the City and the cardholder, and be perceived by the general public as suitable and appropriate;
• to clarify that the cardholder is responsible for ensuring that purchases, with identified exceptions, made by means of a purchasing card pursuant to the City’s purchasing card program are completed without sales tax being charged;
• to establish a consequence that may be imposed in the event electronic processing of a purchasing card transaction is not completed in a timely manner; and
• to otherwise update the City’s policy.
A red-lined version of the draft revised policy as proposed is attached. Also attached is the draft resolution as proposed, including a clean version of the draft revised policy as proposed.
Financial Impact
Staff is not aware of any financial impact of these proposed policy changes.
Options
As an option to the drafted revisions, the Board of Mayor and Aldermen could choose to direct staff to make alterations to and then re-present the drafted revisions.
Recommendation
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Staff recommends the Board of Mayor and Aldermen approve Resolution No. 2016-24, a resolution adopting a revised Purchasing Policy for City of Franklin procurements not pertaining to new construction.