14-029CITY OF SHOREWOOD
RESOLUTION NO. 14 -029
A RESOLUTION DELEGATING AUTHORITY FOR PAYING CERTAIN CLAIMS
WHEREAS, the City Council authorizes all payments for goods and service according to
state statute; and
WHEREAS, Minnesota Statutes Chapter 412.271 Subd. 8 allow the City Council to
delegate its authority to pay certain claims to a city administrative official; and
WHEREAS, the City Administrator and the Finance Director meet the statutory
definition of a qualified city administrative officials; and
WHEREAS, Minnesota Statutes Chapter 471.425 Subd. 2 requires the City to pay
vendors within 35 days of receipt of an invoice; and
WHEREAS, the City Council desires to enter into a purchasing card program with PFM
Financial Services, LLC; and
WHEREAS, the purchasing card program requires payment within seven days following
the 28a' of each month which does not allow time for presentation for City Council authorization;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Shorewood that the authority to make bond payments by wire transfer, to pay usual and
customary claims for any month when aregularly scheduled meeting is canceled, and the
authority to pay all legitimate charges, as reviewed by qualified city administrative officials,
incurred in the purchasing card program is hereby granted to the City Administrator and the
Finance Director.
NOW, THEREFORE, BE IT FURTHER RESOLVED that the following policy be
adopted for administration of the purchasing card program:
PURCHASING CARD POLICY
Pursuant to Minnesota Statute § 471.382, cities are allowed to make purchases with credit cards
or purchasing cards. The City of Shorewood hereby adopts the following purchasing card policy
that incorporates the guidelines suggested by the Office of the State Auditor:
The following employees are authorized to make purchases on behalf of the city and are eligible
to use the cards upon approval by the City Administrator or Finance Director:
Permanent Full -Time Employees
Permanent Part-Time Employees
The credit card may be used only to purchase goods or services that are for the express use by
the City of Shorewood. The credit limit for each cardholder is to be determined by agreement
between the City Administrator, Finance Director and Department Head. If a card is lost or
stolen, the Finance Director shall be notified immediately.
Use of the credit card for personal purchases is strictly prohibited. The only person entitled to
use the credit card is the person whose name appears on the face of the card. The card should not
be lent to another person for use. Card transactions can only be signed for by the cardholder.
The following are several key areas that are required of cardholders:
• Sign the back of the card.
• Ensure that the purchasing card is used for appropriate City purchases.
• Ensure that the purchasing card is kept secure and that all card transactions are
signed for by the card holder.
• Ensure that all detailed receipts accompany the purchasing card slip.
• Turn in all purchasing card slips by the first day of each month.
Employees who intentionally make unapproved purchasing card purchases are personally liable
for the full amount. Bills from purchasing card companies may not contain the detail necessary
to satisfy the itemization requirement pursuant to Minnesota Statute §412.271, Subdivision 2 and
Minnesota Statute §471.37, Subdivision 1. All receipts not turned in by the first of the month
will become the responsibility of the employee. Therefore, if the invoices and receipts are not
submitted for all items charged to a credit card, the employee will be personally Iiable for the
amount of the purchase. The purchasing card invoice shall be paid on a monthly basis as
approved by the city council.
ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 28th day of
April, 2014.
ATTEST:
Jean Panchyshyn, Cit?Cler
Sep# Zerby1M r