300City of Anaheim Administrative Regulation
CHAPTER 3 - FINANCE
Subject: Purchasing Procedures AR 300
Issue Date: July 18,1988
Revised: May 1999
Sept.17, 2003
Feb. 8, 2012
Page (1) of (3)
Purpose:
The purpose of this regulation is to establish a standard purchasing procedure.
General Purchasing PolicX:
Pursuant to Section 1.04.310 of the Municipal Code, the Purchasing Agent is responsible for
the procurement of all materials, supplies and contractual services required by all agencies of
the City, except those specifically exempted by the City Council, or for which a different
procedure is required by law. All negotiations for the acquisition of equipment, material and
supplies either by purchase, lease, or rental, shall be the responsibility of the Purchasing
Agent, who may delegate such functions to other departments subject to final approval of the
Purchasing Agent. In addition, unless otherwise specified by the Municipal Code or the City
Manager, the Purchasing Agent is responsible for the disposition of all personal property,
declared surplus or obsolete by the City Department Heads and of no further use to the City.
Procedures:
Purchasing Procedures:
The Purchasing Agent shall be responsible for determining the appropriate method of
procurement of the City's goods and services. At the discretion of the Purchasing Agent,
written purchase orders, contracts, purchasing cards, or check requests may be used to obtain
the goods and services required by the City departments. Except as otherwise provided in
A.R. 345, all purchases made by the City require the issuance of a purchase order or written
contract prior to any express or implied commitment on the part of the City to the supplier. In
accordance with Municipal Code section 1.04.240, Departments and Divisions are not
authorized to purchase any supplies or materials or contract any debts for supplies or
materials to be used in the departments, unless such authority is delegated to them by the
Purchasing Agent. Requisitioners must not imply or incur any obligation on behalf of the
City, nor communicate with vendors in a way that may compromise the competitive bid
process. Any purchase or contract made by a department or division employee that does not
strictly conform to the requirements of the Municipal Code or this Administrative Regulation
shall be submitted to the Purchasing Agent for possible ratification. The Purchasing Agent,
in his/her sole discretion, may ratify the purchase or contract if the Purchasing Agent
determines that ratification of the purchase or contract is in the City's best interest. The
77509
City of Anaheim Administrative Regulation 300
Page (2) of (3)
Purchasing Agent shall, as necessary, provide the City Manager and Finance Director with a
report that identifies all purchases and contracts ratified by the Purchasing Agent.
All requests for purchases are to be submitted to the Purchasing Division using an approved
requisition form, in accordance with the Purchasing Division's policies and procedures.
Requisitions must be approved by requisitioning department's management in accordance
with their own department's established signature authorization levels, prior to submission to
Purchasing, and sufficient funds must be appropriated in the Department budget to cover the
total delivered cost of the goods and services. Purchases will be made in accordance with the
bidding requirements of Council Policy 4.0. Requisitions shall be submitted to Purchasing
with sufficient lead-time to allow for receipt of competitive bids and Council approval, when
required.
Departments receiving the goods or services are responsible for the inspection of the
merchandise and approval of the services performed, and for issuing the necessary receiving
reports into the City's Financial System in order for Accounts Payable to make payment to
the vendor. Receiving and invoice approvals should be performed promptly to be sure the
City's vendors receive payment in a timely manner and that late charges are avoided. Any
problems with vendors which are not readily solved by the using department should be
referred to the appropriate buyer in the Purchasing Division for facilitation of a resolution.
Purchasing policies and procedures, as well as information concerning the Purchasing Card
program, are available on the Finance Department's Intranet site and the Purchasing Division
office.
Emergency Purchasing Procedures:
In the event of an emergency situation, the Purchasing Agent may waive standard purchasing
policies and procedures. Emergency purchasing procedures are allowed in unforeseen
situations which require immediate procurement of materials or services in order to continue
operations of an essential department, or for the preservation of health, safety and welfare of
the people, or protection of property, when there is a present, immediate and existing danger.
Depletion of stock through normal routine usage is not considered an emergency for the
purpose of this procedure.
In the event of a major City emergency, the Emergency Operations Center may be activated,
in which case Purchasing will be available at the EOC and City-wide emergency procedures
will be followed. In the event of a more isolated incident, if an emergency occurs during
normal working hours, the Purchasing Agent must be contacted prior to purchase. The
Purchasing Agent will place the order with a supplier based upon verbal description or may
delegate such functions to the requesting department by assigning a purchase order number.
If the department desires to place the order directly due to complexity, technical information,
77509
City of Anaheim Administrative Regulation 300
Page (3) of (3)
etc., they shall provide the Purchasing Agent with an exact or maximum price, and if time
permits, at least three telephone bids. If an emergency occurs during non -business hours, the
department may take the steps necessary to obtain the required goods or services, and contact
the Purchasing Agent on the next working day. Whenever an emergency purchase is made, a
purchase requisition clearly marked "Emergency" and containing the vendor name, address,
phone number, products, prices and pertinent terms and conditions shall be submitted to the
Purchasing Agent the first working day after the purchase is made. The emergency purchase
requisition must contain the purchase order number assigned by the Purchasing Agent. Upon
receipt of the completed purchase requisition, the Purchasing Agent will prepare the confirming
purchase order.
Responsibility:
Attachments: None
ADDITIONAL REFERENCES: Anaheim City Charter Chapters 518, 604 (e) & (f),
706(g), 1206, and 1211
Anaheim Municipal Code Sections 1.04.240
through 1.04.315
Council Policy Number 4.0
77509