BY COUNCILOR STEWART:
RESOLVED, that the city council hereby authorizes the city auditor to authorize the issuance of procurement cards to such city employees as he or she shall determine appropriate for the purpose of purchasing materials and services for the benefit of the city in accordance with Section 41-24(a)(3) of the Duluth City Code, 1959, as amended, and with the requirements of Minnesota Statutes Section 471.382.
STATEMENT OF PURPOSE: The purpose of this resolution is to authorize the city auditor to approve the issuance of procurement cards to employees otherwise authorized to make purchases on behalf of the city to streamline the city’s practices as they pertain to small purchases.
Presently various employees are authorized to make purchases in amounts of up to $2,500 by Purchase Authorization Form (PAF) together with a receipt for the purchased item or services. The city then pays each bill individually.
This resolution would authorize the auditor to authorize the issuance of procurement cards in the name of the city to such employees to make purchases that were formerly made by PAF. The employees would still be required to document their purchases, establishing that they were for the benefit of the city, and would also be required to sign an agreement which would govern their use of the card. Copies of draft policies and procedures applicable to card usage and a draft agreement that the employee would have to sign to get such a card are attached.
Institution of this practice and procedure is anticipated to save the city money by streamlining the purchasing process and by reducing the volume of individual payments processed by the city to vendors.
In the event that any employee were to improperly charge any expenses to the card, they would be personally responsible for the amount so charged as well as being subject to disciplinary action.