5.5. ERMUSR 03-08-2011 - Laserfiche WebLink

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Elk River Municipal Utilities 13069 Orono Parkway • P.O. Box 430 Elk River, MN 55330-0430 UTILITIES COMMISSION MEETING Phone: 763.441.2020 Fax: 763.441.8099 TO: FROM: Elk River Municipal Utilities Commission Troy Adams, P.E. -Director of Operations John Dietz, Chair Daryl Thompson, Trustee Al Nadeau MEETING DATE: AGENDA ITEM NUMBER: March 8, 201 I 5.5 SUBJECT: Purchase Policies BACKGROUND: On January ] 4, 2003 the Utilities Commission approved a resolution to grant the purchase and payment of equipment, materials, and services necessary to ensure efficient operations. This resolution is attached for Commission reference. In 2009, the Utilities Commission directed staff to temporarily establish that purchasing authority threshold to $10,000 for non-budgeted and budgeted purchases. This was to be reevaluated at a future date. DISCUSSION: Often, the timely purchase of budgeted materials or equipment will exceed $10,000. For example, transformers, cable, and meters all could be purchased annually in quantities that would exceed the established $10,000 threshold. Larger items like swi[chgear may exceed $10,000 for one unit. At times these purchases may be time sensitive and it may not be efficient operations to make these purchase authorizations once a month. This would be similar to authorizing payment of the monthly purchase power bill or the Waste Management Landfill Gas Plant Service Agreement payment. These payments are documented in the check register and approved in the consent agenda by the Utilities Commission. ACTION REQUESTED: Staff recommends reestablishing the 2003 Utilities Commission Resolution to grant purchase and payment of equipment, materials, and services necessary to ensure efficient operations.