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Home My WebLink Aboutbocc.res.201.2002 RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF PITKIN COUNTY, COLORADO AMENDING ADMINISTRATIVE POLICY CONCERNING CONTRACTS Resolution No.96L-2002 Recitals 1. In 2001, the Board of County Commissioners adopted Ordinance 056-2001, which amended the County Procurement Code and established other purchasing, contract, budget, and procurement policies. 2. The policy requiring written contracts for outside purchases, contained in Paragraph 2 of Ordinance 056-2001, requires an amendment to provide more flexibility for small purchases. 3. A change in policy to allow Department Heads to exercise discretion on the contract and/or insurance requirements for purchases of$10,000 or less allows for a more informal process for purchasing outside goods or services in appropriate circumstances. NOW THEREFORE BE IT RESOLVED by the Board of County Commissioners of Pitkin County, Colorado that the policy on written contracts is modified as follows: A written contract is required for contracts over$10,000. For purchases of any kind in an amount of$10,000 or less, the department head can approve a request from a procuring officer that no contract and/or insurance be required. The decision of the Department Head should consider the liabilities and risks involved in the particular purchase for which the request is made. The Department Head should keep a written record of the decisions for proceeding without a written contract and/or insurance. For the purchase of supplies, vehicles and equipment totaling less than $50,000.00, the policy permitting use of the invoice as a contract as specified in paragraph 2 of Ordinance 056-2001 remains in effect. APPROVED AND ADOPTED ON THE 9th DAY OF OC OBER, 2002. PUBLISHED AFTER ADOPTION IN THE ASPEN TIMES ON THE DAY OF , 2002. i n Resolution f2002, page 2 TEST: BOARD OF COUNTY COMMISSIONERS � OF PITKIN COUNTY, COLORADO By: anette Jones Patti Kay-Clap er, Chairperson Date eputy Clerk & Recorder APPROVED AS TO FORM: MANAGER APPROVAL: John El Hilary Fletcher Smith Co At�6rne /D Gz1a Y_... Y County Manager ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS OF PITKIN COUNTY, COLORADO UPDATING A SECTION OF THE COUNTY ADMINISTRATIVE POLICY, SPECIFICALLY CONTRACTS, PURCHASING,BUDGETING, AND AMENDING THE PITKIN COUNTY PROCUREMENT CODE. Ordinance NoX -2001 Recitals 1. In an attempt to find efficiencies within the County government, in the spring of 2001, a team of County staff members began a review of financial administrative policies, and has recommended changes in the contracts, purchasing, and budgeting policies of the county. 2. The administrative structure for financial authority across the organization has been developed to facilitate day-to-day financial activities of County government and to delegate limited authority to Department Heads and Section Leaders to change their budgets as needs change during each fiscal year. The history of this development was presented to the Board in Resolution 01-007, which was an effort to created consistencies between the administrative policies and the Procurement Code, which was revised in 2000. 3. The staff team has determined that there has been much confusion among those working with procurement, contracts, purchase requisitions, grants, and budget transfers. This team has developed a training program and book, and has recommended, among other things, that in order to reduce risks to the County, that the County always obtain a written contract when it procures outside services, and that the Attorney's office and Risk department sign off on all contracts. Because these approvals and signatures require additional time, the team developed standard forms for the contracts and other procurement documents most frequently used in the County, to expedite the approval process. 4. One change is recommended to the Procurement Code to create total uniformity with the financial administrative approvals: hierarchy of signatures for purchases between$ 2,500 and $50,000. By increasing threshold limits for Department Heads to $25,000 and Section Leaders to $50,000, signature requirements for those levels of contracts and budget transfers will be more consistent. The threshold for purchase requisitions and purchase orders is recommended to remain at$25,000 to allow Finance to check purchases against budget at that level. Also, the Clerk and Recorder's Office has agreed to be the repository for all County contracts. Staff has developed training materials for bonds and other security as well. 5. The staff team has also determined that there have been problems with compliance with administrative financial policies and procurement in the past. State budget law, C.R.S. 29-1-115, states that any member of a governing body of a local government or any officer, employee, or agent who knowingly or willfully violates any of its provisions is guilty of malfeasance and could be removed from office. Because this ordinance delegates some of the County's budgetary authority to various county employees, staff recommends that in order to assure compliance, the Board enact an ordinance that specifically provides that non-compliance with these Board policies could result in disciplinary action, up to and including termination from employment. 6. The Board finds that it is in the best interests of the County to adopt these recommendations. NOW THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF PITKIN COUNTY, COLORADO, that the administrative policies for contracts, purchase orders, and budget oversight, adopted in resolution 83-10 and refined in resolution 87-21 and resolution 93-170, as well as approval thresholds in Section 3 —204 of the procurement code, and resolution 01-007 in its entirety, are repealed by the following policies: 6. The Board finds that it is in the best interests of the County to adopt these recommendations. NOW THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF PITKIN COUNTY, COLORADO, that the administrative policies for contracts, purchase orders, and budget oversight, adopted in resolution 83-10 and refined in resolution 87-21 and resolution 93-170, as well as approval thresholds in Section 3 —204 of the procurement code, and resolution 01-007 in its entirety, are replaced by the following policies: 1. The purchase of goods and services for the County shall be governed by the Procurement Code, adopted by Ordinance 2000-018. Section 3-204 of the Procurement Code is amended as follows: 3-204 SMALL PURCHASES Any Procurement not exceeding $50,000 may be made in accordance with small purchase procedures; provided, however, that procurement requirements shall not be artificially divided so as to constitute a small purchase under this Section. Procuring Officers shall use these procedures to meet purposes and policies of the Procurement Code provided in Section 101(2)(c), (d)and(e). (1) All purchases between $2,500 and $50,000 shall require informal proposals documented by the Procuring Officer. The Procuring Officer shall retain a written document of the proposals received in the procurement file. All purchases between $2,500 and $50,000 will require the review, approval and sign off of the Department Head and Section Leader as follows: (a) projects between $2,500 and $25,000 will only require the approval of the department head; (b) projects over $25,000 will require the approval of the section leader as well. Written documentation shall include proposed scope of solicitation, price proposed, conditions for that proposed price and time line for completion. The Procuring Officer should solicit at least three proposals. (2) All purchases under $2,500 may require informal bidding by the Procuring Officer as the officer deems appropriate. Written documentation of the bid process is desirable,but not required. 2. All outside purchases, regardless of total amount, require a written contract approved by Risk Management and the Attorney's office. For the purchase of supplies, vehicles and equipment totaling less than $50,000.00, the invoice will suffice as a contract, provided that 2 the Procuring Officer certifies compliance with the Procurement Code and other required clauses on a form developed for that purpose. 3. The Board of County Commissioners delegates the authority to sign contracts for the County as follows: in addition to other required signatures (Risk and Attorney), for contracts and procurement documents for purchases up to $25,000.00, the Department Head signs; for purchases between $25,000.00 and $50,000.00, the Section Leader's signature is also required; for purchases of $50,000.00 and above, the County Manager also signs. So long as there is budget for the purchases, no BOCC signature on contracts is necessary, unless required by another contracting party or by statute, for example for federal and state grant agreements and all intergovernmental agreements. 4. An original fully executed copy of each County contract shall be submitted to the Clerk and Recorder for record keeping. 5. A Purchase Requisition Form must be submitted to Finance for all purchases of $25,000.00 and more. Finance shall not pay invoices for purchases in these amounts if there is no contract or budget. 6. For budget transfers,the following provisions apply: a. A budget transfer of less than $25,000 within a department may be accomplished with Department Head approval only. The Department Head shall submit a budget transfer form to Finance. b. For transfers of$25,000 to $50,000, or between departments within a section, the Section Leader shall approve. The Section Leader shall submit a budget transfer form to Finance. c. For budget transfers of between sections and zero cost, the County Manager shall approve. The Section Leaders shall submit a budget transfer form and memorandum of interest (MOI) for the Board of County Commissioners to the County Manager for County Manager approval and inclusion in the next BOCC work session packet. d. For any budget transfer over $50,000, or for which there is an increase to overall revenues or overall expenditures, the Section Leader shall submit a budget transfer form and MOI for the Board of County Commissioners to the County Manager for County Manager approval and inclusion in the next BOCC work session packet. e. For any new purchase not previously included in a budget line item or previously approved via MOI, and regardless of amount, an MOI for the BOCC shall be submitted to the County Manager for approval and inclusion in the next BOCC work session packet. f. For those transfers requiring formal budget appropriation, Finance shall prepare periodically appropriation resolutions for BOCC approval. 7. An employee's failure to abide by these policies may result in disciplinary action against the employee, up to and including termination. INTRODUCED, FIRST READ AND SET FOR PUBLIC HEARING ON THE 14`h DAY OF November,2001. 3 NOTICE OF PUBLIC HEARING PUBLISHED IN THE ASPEN TIMES WEEKLY ON 17t' DAY OF November,2001. APPROVP UPON SECOND READING AND PUBLIC HEARING ON THE ✓u- DAY OF 001. P =1SHE FTER ADOPTION IN ASPEN TIMES WEEKLYON THE DAY OF001. THIS ORDINANCE SHALL BECOME EFFECTIVE 30 DAYS AFTER ADOPTION. ATTEST: BOARD OF COUNTY COMMISSIONERS OF PITKIN COUNTY, COLORADO ` By: ti� ette Jones, Michael C. Irel d, Chair eputy Clerk Date:_ f 2-DS-O APPROVED AS TO FORM: John M. Hilary 1 tcher Smith COumYAt.orney Coun anager Debe Nelson Finance Director Tom Oken Administrative Services Director G:Vesolutions\2001\tinance authorizing resolution.doc 4