Purchasing PolicyCITY OF MONROE
PURCHASE ORDER POLICY
1. Purchases with a cost of $2,000 or more require the issuance of a purchase order prior
to the order being placed. The following list of purchases are exceptions to that rule
and do not require a purchase order:
a. Utility costs, i.e. natural gas, electric, water/wastewater, etc.
b. Legal fees
c. Training and travel costs
d. Dues and subscriptions
e. Postage costs
f. Personnel costs, i.e. wages and benefits
g. Refunds
h. Vehicle gasoline
i. Audit services
j. Costs pursuant to a multi -year professional services contract approved by
the City Council
k. Downtown development authority expenditures
1. Brownfield redevelopment authority expenditures
in. Telephone and cellular phone service costs
n. Newspaper advertising costs
o. Insurance premiums
p. Tax payments
i. Sales
ii. Property
iii. Withholding
q. Required licenses and permits
r. Building rent or vehicle lease agreements
s. Board of review and Michigan Tax Tribunal refunds
t. Settlements approved by the City Council
u. City grants, i.e. ALCC, Library, etc.
v. Debt service payments
2. Purchases of an emergency nature that occur at a time when the Finance Department
or City Manager offices are closed may initially be made without a purchase order
being issued. A confirming purchase order will need to be approved prior to payment
of the cost associated with the purchase.
3. Purchases that don't require a purchase order to be issued are still subject to budgeted
funds being available.
Note: The purpose of a purchase order is twofold. The first is to initiate a purchase or
contract. The second is to reserve the budgeted funds for the intended purchase.
CITY MANAGER APPROVAL
c �Ks,
r�
Signature Date
CITY OF MONROE
PURCHASING POLICY
PROFESSIONAL SERVICE CONTRACTS
1. Professional service contracts with an estimated contract cost of $5,000 or less
may be entered into after receiving approval of the Finance Director and City
Manager.
2. Professional service contracts with an estimated contract cost of more than
$5,000, but less than $15,000 may be entered into after receiving at least three (3)
quotes and after receiving an approved purchase order.
3. Professional service contracts with an estimated contract cost of more than
$15,000 may only be entered into after requesting sealed bids or proposals and
receiving approval of the city council.
4. When solicited under the sealed proposal process, requests for proposals (RFP)
for professional services shall include language which specifies that the sealed
proposal shall be submitted or mailed to the office of the City Clerk and that all
proposals submitted will be opened on a specified date and time and at a specified
place. The opening of the sealed proposals shall be performed under the
supervision of the City Clerk or his/her designee at the specified time and place.
The opening of sealed proposals shall be conducted in a place which is open to
the public at the time of opening. One copy of each proposal shall be submitted
and remain in the possession of the City Clerk until presented to and acted on by
the City Council, and be made available for public examination when requested.
5. A purchase order will be required for any contract with an estimated cost of
greater than $2,000.
6. These rules may be waived with approval of the City Manager. All contracts with
a cost greater than $5,000 will require the approval of the City Council regardless
of the process for negotiating the contract.
CITY MANAGER APPROVAL
Signature
3100/7
Date
