Granville Community Calendar

Resolution No. 2013-48




WHEREAS, it is the desire of the Village Council and the Village staff to establish a policy to provide guidance for issues relating to purchasing; and, 

WHEREAS, in accordance with 1125.12 of the Village Codified Ordinances, the Village Council and staff have reviewed and developed a policy that outlines the responsibilities regarding purchasing; and 

WHEREAS, the Village staff recommends the adoption of a purchasing policy. 

NOW, THEREFORE, BE IT RESOLVED by the Council of the Village of Granville, Ohio that: 

Section I:       A purchasing policy for the Village of Granville, which is attached hereto marked as Exhibit “A” is hereby adopted. 

Section II:      This resolution shall take effect immediately upon passage. 

Passed this 4th day of September, 2013.






I.                   PURPOSE

The purpose of this policy is for use as a guide requisitioning purchases, and the receipt and payment process for goods and services. The guide includes statements of purchasing objectives and policies, as well as the procedure to be followed in performing the major purchasing functions. 

Purchasing decisions must be coordinated with the aims, policies, and preferences of the departments served to procure materials and supplies, goods and services necessary for implementing work. 


PRIOR ENCUMBRANCE OF APPROPRIATIONS:  No purchase or contract involving any expenditure are to be processed unless the transaction is first certified by the Finance Director that the amount required for the expenditure has been lawfully appropriated and is either in the treasury, or in the process of collection, and free from any previous encumbrances. 

All precautions should be taken by departments to make sure that budget accounts are not overspent. 

Exceptions to the prior encumbrance requirement are:

a)      Emergency purchases as outlined in Section VII of the Purchasing Policy

b)      Payroll

c)      Utility Bills (including phone) 

Violations of the prior encumbrance requirement:

            If the purchase or contract is not preceded by an encumbrance of funds as specified above, no payment may be authorized unless the Finance Director can certify that both at the time the expenditure was made and at the time certification is completed, sufficient funds were available, properly appropriated, and free from any previous encumbrances. If the amount of the purchase exceeds $10,000 and is not preceded by an encumbrance of funds as specified above, the Village Manager shall report the facts relating to that purchase to Council. 


a.)    Continuing contracts to be performed in whole or part in an ensuing fiscal

year – only the amount required to meet those amounts in the current fiscal year, in which the contract is made, need be certified (encumbered). Remaining contract amounts must be provided for in the subsequent fiscal year’s appropriations.

b.)    Per unit contracts – need only certify (encumbered) the estimated amount to

become due in the current fiscal year based upon the agreed unit pricing and estimated quantities. The normal per unit contract length will be twelve months or less.

c.)    Blanket purchase orders against any specific line item account, not 

extending beyond the current fiscal year, are to be certified (encumbered) against specific line-item appropriations. A list of expenditures paid under each blanket certificate must be maintained by the Finance Department. The use of blanket purchase orders is subject to the approval of the Finance Director. 


The objectives listed below will indicate the scope of the purchasing function prior to the act of purchase. These objectives are based upon proven principles of sound purchasing business management: 

  1. 1.      Assist department in securing goods and services.
  2. 2.      Cost estimated for budget submission and approval.
  3. 3.      Processing requisitions and orders.
  4. 4.      Secure goods and services of the quality, in the required time and at the lowest prices for efficient Village operation.
  1. 5.      Securing quotations and bids, both formal and informal.
  2. 6.      Develop and maintain sources of supply for goods and services that are capable of meeting the needs of the Village.
  1. 7.      Foster and maintain business relations with vendors and the community in general.           
  1. 8.      Maintain proper inventories.
  2. 9.      Expedite deliveries.

10.  Standardize where possible.

11.  Promote good working relations between Finance and user departments.

12.  Study price and market trends.

13.  Be alert for and recommend new products and services that aid users in the performance of their function:  A Value Analysis program.

14.  Periodically review the Village’s purchases to assure that user needs are being optimally met by the goods and services being purchased. 

15.  Develop a Request for Proposal (RFP) program for use by the Village.

16.  Report purchases to Council as required.

17.  Maintain vendor bidder lists (with appropriate experience data). 

These objectives can be attained by the Finance Department within the framework of a purchasing system.


The Finance Department and department heads are the primary contact between the departments and the vendors. Therefore, the Finance Department and department heads must adhere to high levels of personal conduct and transact business in a strictly ethical manner. 

The following principles are the basics for establishing purchasing practices: 

  1. 1.      Consider, first, the interests of the Village in all transactions, and carry out its established policies.
  1. 2.      Recognize value as being a combination of quality, service and price that assures the greatest economy to the user, and buy on this value basis.
  1. 3.      Buy without prejudice, seeking to obtain the ultimate maximum for each dollar spent.
  1. 4.      Respect the Village obligations and neither express nor imply a promise of performance that we cannot expect to fulfill.
  1. 5.      Refrain from divulging information acquired in confidence with the intent to giving or receiving an unfair advantage in a competitive business transaction.
  1. 6.      Village employees are prohibited from accepting gifts, entertainment or any other gratuity from any individual or business.
  1. 7.      Adhere to the National Institute of Governmental Purchasing principles for ethical purchasing.
  1. 8.      Follow Village and state ordinances, when applicable.
  2. 9.      Village employees may purchase items from the Village when they are sold by sealed bids, public auction or online auction. 

All employees of the Village participating in the purchasing process must refrain from any private business or professional activity that would create a conflict between personal interests and the interests of the Village. 


PURPOSE:  The purpose of a requisition is to inform the Finance Department of the needs of the department so that procedures can be set in motion toward the purchase of the needed materials and equipment, goods and services. It also enables the Finance Director to check availability of funds. In addition, it can save the Village from placing duplicate orders, thus saving time and money. A requisition is not to be considered as an approved final Purchase Order. 

WHEN TO REQUISITION:  It is the responsibility of the department head to anticipate the needs of the department as much in advance as possible, so as to not create a situation whereby items need to be purchased on an emergency basis. Thus, the requisition should be submitted far enough in advance to allow the Village to take advantage of competitive quotations and bidding. 

Delivery time is also a factor to be considered. Orders should be submitted to ensure that the commodity is delivered when needed. 


  1. Submit to the Finance Department the following information:
  2. a.    General Description (be certain to include physical description and model number, if a particular manufacturer’s model or catalog number is available, and give enough information to fully describe item)

b.      Date Requested

c.       Suggested Vendor

d.      Quantity & Price

e.       General Ledger account number to be charged

  1. Prior to the order being placed, the purchase requisition will be submitted to the Finance Department and the Finance Director or designee shall examine the account to determine whether or not there is an unencumbered balance remaining in the amount allotted for the purpose to the account against which it is proposed that the purchase or contract be charged. If proper funds are not available, the requisition will be processed according to Section VI of the Purchasing Policy.

3.      If the unencumbered balance of the allotment is adequate, the Finance Director or designee shall assign a purchase order number to the requisition converting the purchase requisition to a purchase order and submit the purchase order to the Village Manager for approval.

4.      Upon approval of the purchase order by the Village Manager, the Finance Director or designee shall encumber such balance by the amount of the purchase order or contract by entering the requisition and purchase order into the Village’s accounting software.

5.      A purchase requisition copy will be returned to the ordering department with the purchase order number inscribed.

6.      Orders shall not be placed until the purchase requisition copy with the purchase order number inscribed and signature of the Village Manager is returned to the purchaser.

7.      All purchase orders shall contain the following certificate which the Finance Director or designee shall sign and retain a copy:  “It is hereby certified that the amount of ($___) required to meet the contract, agreement, obligation, payment or expenditure for the above has been lawfully appropriated or authorized or directed for such purpose and is in the Treasury or in process of collection to the credit of the _______ Fund free from any obligation or certification now outstanding.”

Date______________   Finance Director Signature ___________________

8.      Each purchase order certified, as properly encumbered, shall be delivered to the requesting department head who shall send it to the vendor as authority for performance. Each contract, when certified as properly encumbered, shall be delivered to the Manager who shall sign the same on behalf of the Municipality and send one copy to the contractor as his authority for performance. The purchase order is the vendor’s authorization to ship equipment, materials or supplies or to perform the services specified thereon. It constitutes the contract between the Village and the vendor, with the conditions specified and incorporated into the contract. Any goods delivered or work performed prior to the date of issue of the purchase order or contract, legally signed and delivered shall be entirely at the risk of the vendor or contractor.


If the requisitioned budget account lacks a sufficient balance, the Finance Department will return the requisition to the requisitioning department. The department head may: 

  1. Drop the request.
  2. Request transfer of appropriations
  3. Request a supplemental appropriation from contingency or surplus to cover the cost of the material or the service requested.

4.      An over expenditure of a budgeted account should be fully explained in the form of a memo to the Village Manager, who will analyze the request and either approve or disapprove the requisition.

5.      Requests for supplemental appropriation should be directed to the Finance Department in the form of a memo fully explaining such a request.  Normally, only things that could not have been foreseen or reasonably provided for by careful planning, and are of an emergency in nature, will be considered for presentation to Council. Therefore, careful preparation of annual departmental budget requests is a necessity.



An emergency situation is defined as a situation in which operation of a department would be seriously hampered because of a shortage of goods or services to maintain critical Village operations. 


During normal working hours, the department head will notify the Finance Department of the need for an emergency purchase. The Finance Department will assist the department in securing the needs and issue a purchase order number for the items to be purchased. The requesting department will make necessary arrangements for delivery. 

REQUISITION: A requisition must be submitted to the Finance Department as soon as possible so that a confirming purchase order can be issued. 

OTHER EMERGENCIES:  If an emergency occurs at times other than normal working hours (i.e. nights, weekends, holidays), the department must submit, on the next working day, a requisition accompanied by a sales slip, invoice and/or explanation for the necessity of the purchase. The Finance Department shall follow through with the accompanying paperwork and any appropriate reporting procedures (see Codified Ordinance Section 125.09.)             

Negligence on the part of the department head to plan properly is not justification for an emergency purchase. Emergency purchases made hurriedly on a noncompetitive basis are costly and possibly not at the best price.


Vendors who supply goods or services in response to purchase orders shall deliver such goods or service in compliance with the terms hereof. When they have performed the obligations, which rest upon them under such purchase orders, they shall render invoices with the purchase order number and date of the pertinent purchase order. Each such invoice shall be delivered to the Finance Department. 

All invoices shall be delivered promptly to the Finance Department, who shall prepare a voucher and audit to see that it is complete and correct and that the order was legally made. The outstanding encumbrance shall be credited, the cash balance debited in each case and a check written or electronic transfer made for payment. Any adjustment due to shortage in deliveries, reductions in price or discounts taken shall be made when the entries affecting encumbered balances are made. Checks shall be signed by the Finance Director and Village Manager. The Mayor and/or Vice Mayor may sign checks in place of the Finance Director and/or Village Manager; however, two signatures should accompany all checks.


Payments on signed contracts shall be made in strict accordance with the terms of such contracts, when the conditions laid down in such contracts have been faithfully met by the contractor. Vouchers for partial payments on construction contracts shall bear the certificate of the designated engineer or consultant as to the percentage or completion of the contract at the date of the voucher and no payment shall be made of a greater proportion of the contract price than has been completed. Vouchers against contracts shall be credited against outstanding encumbrances and charged against cash expenditures before they are paid. Checks or electronic payment of vouchers against contracts shall be prepared by the Director of Finance or a designated agent and signed by the Finance Director and by the Manager. The Mayor and/or Vice Mayor may sign checks in place of the Finance Director and/or Village Manager however two signatures should accompany all checks.


A central store of such items as Village of Granville envelopes, folders, copy paper, legal pads, staples, and paper clips will be maintained as required.


PETTY CASH: Minor purchases which cost less than twenty dollars ($20.00) may be made by the department directly from the vendor. The cost, not including sales tax, will be reimbursed from the petty cash fund administered by the Finance Department, upon presentation of a paid invoice or sales slip. 

ITEMS EXCEEDING $20.00: Items exceeding $20.00 must be requisitioned following the established procedure. If the purchase exceeds $500, the requesting department should obtain informal quotations from at least two (2) qualified vendors before following the established requisition procedure.  

ITEMS EXCEEDING $5,000: Items exceeding five thousand dollars ($5,000) must be requisitioned by the department in the usual manner. The department must obtain written quotations from two or more vendors before a purchase order can be issued to a vendor. 

ITEMS OR SERVICES MORE THAN THE AMOUNT AS DESIGNATED IN SECTION 5.05 OF THE CHARTER:  All purchases exceeding the amount designated in Section 5.05 of the Charter of the Village of Granville will be based on sealed bids. These purchases will follow the procedure outlined below: 

  1. Resolution authorizing bids
  2. The invitation to bid will be advertised in the local newspaper as required by law
  3. Invitations to bid be will be sent to requesting bidders, and/or bids will be sent directly to bidders on bid list and those qualified who respond to the legal advertisement.

4.   All bids shall be received by the office of the Clerk of Council and must be sealed to be accepted. Upon receipt by the Clerk’s office, all proper bids shall be stamped “Received,” shall be marked with the date and time at which it was received and shall also be signed by an employee of the Village. Bids that are unsealed shall not be accepted by the Clerk’s office.

5.   Bids shall be opened on the day and time set in the bid announcement, and publicly read and tabulated by two representatives of the Village. The official time shall be determined by the clock in the Village Hall. Bids shall be delivered by a representative of the Clerk’s office to the Village staff member responsible for conducting the bid opening. Once the advertised time has arrived, no further bids or additions to bids shall be received. Before opening any bid, the staff member presiding shall introduce other staff members or consultants who are assisting in the bid opening. The Village Manager or his designee shall be present at all bid openings. The Manager’s designee shall be a staff member other than the staff member presiding over the bid opening.

6.  As each bid is opened, it shall be examined for proper stamp showing date and time received, whereupon the presiding staff member shall acknowledge receipt of the appropriate bond, if required.

7.  Where required, bids shall be accompanied by a sufficient and acceptable bid bond, in the form of a certified or cashier’s check drawn on a solvent bank or a bid bond executed by a surety authorized to do business in the State of Ohio, and made payable to the Village, to assure the Village, that if a bid is accepted, a contract will be entered into. Where required, a Performance Bond (100%) or a 100% bank “Letter of Credit” shall be secured by the Village, prior to commencement of the contract, and approved by the Village Law Director.

8. Where required, bidders shall execute and submit a non-collusion affidavit and a disclosure of personal property taxes on the forms furnished by the Village. No contract is deemed fully executed until this is done. Upon completion of the project, a signed contractor’s indebtedness affidavit must be filed with the Village to execute final payment of said contract.

9.   Prevailing wages shall be paid as required by Ohio law on all projects for new construction, remodeling, and repair projects. Bids shall be submitted accordingly as noted in the bid requirements.

10.  The interest earned on all contract retainage shall accrue to the sole benefit of the Village.

11.  Addendums to bids shall be made available to all known bidders and shall be

issued, in a reasonable time, prior to the opening. Bids may be postponed as deemed in the Village’s best interest. The Village reserves the right to reject any and all bids, waive informalities and make an award deemed in its best interests.

12.  Bidders are to keep informed of all laws and regulations, federal and state,

Village Ordinances, codes, rules, safety requirements (Industrial Commission), which affect those employed to engage in the work or materials to be used in a project. 

13.  Project completion (delivery) warranties, references, terms and F.O.B. shall be

required by bidders in the Bid Invitation. Non-responsiveness can be determined as a condition for bid disqualification.

14.  Bids will be awarded on the basis of best and lowest bids by a qualified vendor

conforming to the specifications. Bid tabulations will be reviewed by the Village Manager, together with the department head requesting the particular supplies, materials, equipment or contractual service being purchased. The Manager and aforementioned department head shall make such investigation of the responsibility of the bidders as they deem necessary and shall, at the earliest possible time after receipt of bids, report to Council their recommendation of the lowest and best qualified bidder to which the contract should be awarded.

15.  The final authority for the award of contracts shall rest with Village Council and

shall be made by affirmative vote of at least four members of Council unless Council determines that the public interest would be better served by rejecting all bids and ordering a new advertisement, in which Council may do so by affirmative vote of at least four members.

16.  After final authorization, the Finance Department shall follow through with the

proper purchase order. The bid award shall be made within forty-five (45) days of the bid opening, except when the bid involves use of federal funds or sale of notes and/or bonds, in which case the award shall be made pending the availability of funds. Bids may not be withdrawn or modified unless the award is delayed beyond that time. The Village reserves the right to establish its own schedules of construction and payment with any contractor awarded the bid, and to bid each component part of the project as a whole or separately.


Standard specifications should be set up so that maximum competition can be secured. The description of the commodity and its characteristics should be so definite and precise as to eliminate the possibility of misunderstanding on the part of the purchaser, vendor, or user. Wherever necessary, tests will be made to determine compliance with the specifications. Specifications considered “closed” (eliminating all competition) shall not be submitted by any department. 

Trade or brand name items may be requested on the requisition, but may not necessarily become a part of the final specifications. Use of brand names shall establish a generally accepted standard, while other brand names of the same general quality will be requested to submit bids. 

EXCEPTIONS: Where current equipment or materials for parts or replacement are required, alternatives may not be feasible.


DEPARTMENT FILE: The Village may purchase items that have a warranty or guarantee for a certain length of time. Prior to the repair or replacement of any items, the department head should check to see if the item is covered by such warranty or guarantee. Generally, each department should maintain an active, up-to-date file on such warranty or guarantee with complete information.


FREIGHT CHARGES: Freight charges will be handled in one of the following ways: 

  1. F.O.B.: Village of Granville. When the purchase order is marked in this manner, no transportation charges are to be paid by the Village.
  1. F.O.B.: Shipping Point. In cases where the Village does not pay freight charges, the charges are to be prepaid by the shipper and the prepaid bill shall be added to the invoice.
  1. C.O.D. CHARGEES: The Village will not accept C.O.D. shipments. If shipping charges are to be paid; they will be paid in the above described manner. 


            Where required, bids shall be accompanied by a sufficient and acceptable bid bond, in the form of a certified or cashier’s check drawn on a solvent bank or a Bid Bond executed by a surety authorized to do business in the State of Ohio and made payable to the Village, to assure the Village, that if a bid is accepted, a contract will be entered into. Performance bonds or bank “Letters of Credit,” where required, shall be deposited in the amount of the contract (100%) prior to execution of contract and approved by the Village Law Director. 

            Requiring certified checks or bonds may not always be in the best interest of competition. Therefore, careful study should be given to this matter before a bond is required. In any event, the Village Manager shall decide when the deposit of a bond or “Letter of Credit” is necessary for a vendor to be awarded a purchase order or contract. 

  1. XVI.        RETURNS

The following procedure should be used for materials, goods, or equipment received requiring return to vendor: 

  1. Department head contacts vendor for disposition, return authorization
  2. Department head receives return instructions and Return Materials Transfer

Order (RTMO) form, which is sent with return, along with copies for the department and Finance.

  1. Finance receives appropriate credit.
  2. Department receives appropriate replacement, if required. 

Employee Payroll / Compensation

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