Resolution 2006-40 - Laserfiche WebLink

Home Browse Search

Revised 8/7/06 City of Louisville Purchasing Policy & Purchasing Card Program Requirements SECTION II - PURCHASE ORDERS (P.O..) A purchase order authorizes a vendor to release goods or services to the City and informs them that funds have been encumbered to pay for the goods or services. A purchase order becomes a binding contract when the vendor demonstrates his acceptance of the purchase order through the initiation of some action to fill the order. A purchase order shall be required for all purchases in excess of $2,500 excludina the following areas: Exempt Items Bond & Interest Payment Professional Services Payroll Checks Payroll Taxes Insurance Payroll deductions Utilities Dues & Subscriptions Education Expenses Travel Expenses Water Lease Purchase Payments Utility Charges Ditch Assessment Charges The Finance Department shall be responsible for the completion and issuance of all purchase orders on the Mondays and Wednesdays following the receipt of the purchase requisition. The distribution of the purchase order by the Finance Department will be as follows: . Two copies are returned to the requesting department: 0 One copy should be emailed, faxed or mailed directly to the vendor as notification to place the order 0 One copy should be retained in the requesting department files . One copy is retained by the Finance Department as a source of encumbrances and for the numerical files There are two types of Purchase Orders: Standard Purchase Orders: A standard purchase order is to be used for one-time purchases and shall be issued for all purchases of $2,500 or more. Blanket Purchase Orders: A blanket purchase order is issued for a specified period of time and for a cumulative dollar amount no greater than $25,000 encompassing more than a single purchase. . Blanket purchase orders are issued in situations where multiple items are being purchased from one vendor or where one item is being purchased from multiple vendors . No single line item listed on the blanket purchase order shall exceed $15,000, nor shall any capital item be purchased through a blanket purchase order . Blanket purchase orders may be issued for an established dollar amount and for a period of one (1) to twelve (12) months; however, all blanket purchase orders will expire on December 31st of any given year . Expenditures charged to a blanket purchase order may not exceed the total amount for which the blanket purchase order was issued . Annual quotations obtained for blanket purchase orders are valid for one year Effective September 1, 2006 6