City of Creve Coeur, MO
St. Louis County
By using eCode360 you agree to be legally bound by the Terms of Use. If you do not agree to the Terms of Use, please do not use eCode360.
Table of Contents
Table of Contents
Charter References — Financial procedure, §§9.1 et seq.

Section 140.010 Purchasing and Sales Policy. [1]

[R.O. 2008 §2-216; Ord. No. 829 §1, 12-12-1977; Ord. No. 4000 §1, 1-9-2006; Ord. No. 5089 §1, 6-22-2009]
A. 
Purchasing And Sales Policy.
1. 
Purpose. The purpose of this Chapter is to establish guidelines regarding purchases made by the City and the sale of City property in order to maximize the value realized for each public dollar spent and for public property.
2. 
Scope. This Chapter is applicable to all purchasing for the City and the sale of any City property outside the scope of ordinary services.
3. 
Basic goals. The basic goals of the City are:
a. 
To comply with all applicable legal requirements.
b. 
To assure vendors and buyers that impartial and equal treatment will be afforded to all who wish to do business with the City.
c. 
To maximize the value realized for each public dollar spent and for public property.
d. 
To obtain goods and services at the time and place needed in the proper quantity and quality.
e. 
To purchase only goods and services for which funds have been approved and not previously encumbered.
f. 
To sell or lease property that is no longer necessary or useful to the City and that can be better used by the private sector.
g. 
To promote environmentally sustainable practices by including environmental considerations in purchasing decisions.
If the procedures and guidelines established in this Chapter are followed, each department should efficiently manage, control and plan its available resources to meet present and future departmental needs and help the City meet its goals.
B. 
Definitions. The following terms shall be defined as stated for purposes of this Chapter:
APPROPRIATION
The legal authorization of monies for anticipated or incurred expense.
BUDGET
A document which sets forth proposed revenues and expenses to be incurred during a fiscal year for the various City operations.
CAPITAL EXPENDITURE
Any project included in the capital improvements account within the annual budget, but shall not include items within the capital outlay for any department, division or agency budget.
CONSTRUCTION
The process of building, altering, repairing, improving or demolishing any public structure or facility or other public improvement of any kind.
CONTRACT
A legally binding promise enforceable by law and, generally, in writing.
DEPARTMENTS
Includes law, finance, police, parks and recreation, community development and public works, purchasing and personnel.[2]
ENCUMBRANCE
The reservation of monies to meet a prior financial commitment.
ENVIRONMENTALLY PREFERABLE PRODUCTS
Commodities and services that carry the certification or label of one (1) of the following national independent environmental certifying programs:
EPEAT (Electronic Product Environmental Assessment)
Energy Star
Environmental Choice (Canada EcoLogo)
Forest Stewardship Council
Green Guard for Children and Schools
Green Seal
Green-e
USDA Organic
or that assume one (1) or more of the following qualities to a greater degree than comparable commodities and services:
Biobased
Biodegradable
Carcinogen-free
Chlorofluorocarbon (CFC-free)
Compostable
Durable or reusable, as opposed to single-use or disposable
Energy efficient
Heavy metal free (e.g., no lead, mercury, cadmium)
Less hazardous
Low volatile organic compound (VOC) content
Low-toxicity
Made from rapidly renewable materials
Persistent, bioaccumulative toxic (PBT)-free
Procured from vendors and contractors that follow green policies in their own operations
Produced locally or regionally (to minimize environmental costs associated with shipping)
Recyclable
Recycled content
Reduced greenhouse gas emissions
Reduced packaging, especially polystyrene
Refurbished
Resource efficiency
Upgradeable
Water efficient
EXISTING PURCHASING CONTRACT
A contract previously entered into by the City and currently existing including, but not limited to, a term-and-supply contract, an annual contract, a maintenance contract and a warranty contract.
FORMAL WRITTEN BID
A competitive bid which must be submitted in response to an advertised request in a prescribed format pursuant to applicable instructions, including typically that the bid be submitted in a sealed envelope to be opened in public at a specified time.
INFORMAL WRITTEN BID
A competitive bid or price quotation for supplies or services conveyed to the City in writing, generally without prior advertising, pursuant to applicable instructions.
ITEM
A product, material or service.
MATERIAL VALUE
The value of an item to be purchased or sold, to be determined in the first (1st) instance by the department director.
PROCUREMENT
Purchasing, renting, leasing or otherwise acquiring any supplies, services, property or construction, including performance of any necessary functions such as writing specifications, selection and solicitation of sources, preparation and award of contract and contract administration.
QUOTATION
A statement of price, terms of sale and description of property, goods or services offered by a vendor to a prospective purchaser by letter, fax, telephone or other means of communication.
REQUISITION
An internal document by which a department sends details of supplies, services or material required to the Finance Department, including documentation of authority to commit funds for the purchase.
SCOPE OF SERVICES
A detailed description of the tasks to be performed.
SPECIFICATIONS
A description of the environmental, physical or functional characteristics or of the nature of a supply, service, property or construction item; the requirements to be satisfied by a product or process; indicating, if appropriate, the procedures to determine whether the requirements are satisfied and/or the capabilities and performance characteristics that the item must satisfy.
[2]
Editor's Note — Ord. no. 5123 Exh. A, adopted February 22, 2010, made changes to the titles of some departments and these new titles are reflected herein.
[1]
Cross Reference — Rules of construction and definitions generally, §100.020.

Section 140.020 Payments.

[R.O. 2008 §2-217; Ord. No. 829 §4(B)(3), 12-12-1977; Ord. No. 4000 §2, 1-9-2006; Ord. No. 5089 §2, 6-22-2009]
A. 
The City Administrator shall have the discretion to direct payment of an invoice so long as the funds have been appropriated and the transaction was approved in compliance with Section 140.030. Any other invoice shall require review and approval by the City Council prior to payment.
B. 
At each regularly scheduled City Council meeting, the City Administrator shall present a listing of all invoices which have been received since the previous regular City Council meeting.

Section 140.030 General Guidelines.

[R.O. 2008 §2-218; Ord. No. 829 §5, 12-12-1977; Ord. No. 2130 §1, 6-11-2001; Ord. No. 4000 §3, 1-9-2006; Ord. No. 5089 §§3 — 4, 6-22-2009]
A. 
General Guidelines.
1. 
Local and regional buying preferences. It is the desire of the City to purchase from Creve Coeur, Missouri, and/or American vendors whenever possible. When all other factors are equal, preference shall be provided to Creve Coeur vendors first (1st), Missouri vendors second (2nd) and American vendors third (3rd). To be considered a Creve Coeur vendor, the person or entity must have a physical place of business located in the City and a City business license. To be considered a Missouri vendor, the person or entity must have a physical place of business in the State and authority to conduct business in the State. To be considered an American vendor, the person or entity must have a physical place of business in the country and authority to conduct business in the country. Every contract for public works construction or maintenance in excess of one thousand dollars ($1,000.00) shall contain the following provision: "The contractor is requested to use American products in the performance of this contract whenever the quality and price are comparable with other goods."
2. 
Environmental preference. The City shall prefer environmentally preferable products in all purchasing decisions; however, nothing in this Section shall be construed as requiring the City to procure products or services that are inferior in quality, do not perform adequately for their intended use, exclude adequate competition, are not available at a reasonable price in a reasonable period of time, or exclude the consideration described under Subsection (9) below.
All requests for proposals and bids shall contain the following provision: "Environmentally-friendly buying preferences: The City of Creve Coeur promotes environmentally sustainable practices by purchasing environmentally preferable products when cost, quality, variety, quantity, delivery time and any other defined specifications are not significantly inferior to competing commodities and services. Whenever possible, proposals shall provide applicable information relating to how the vendor's product is environmentally preferable. Environmentally preferable products are commodities or services that carry the certification of one (1) of the following national independent environmental certifying programs:
EPEAT (Electronic Product Environmental Assessment)
Energy Star
Environmental Choice (Canada EcoLogo)
Forest Stewardship Council
Green Guard for Children and Schools
Green Seal
Green-e
USDA Organic
or that assume one (1) or more of the following qualities to a greater degree than comparable commodities and services:
Biobased
Biodegradable
Carcinogen-free
Chlorofluorocarbon (CFC-free)
Compostable
Durable or reusable, as opposed to single-use or disposable
Energy efficient
Heavy metal free (e.g., no lead, mercury, cadmium)
Less hazardous
Low volatile organic compound (VOC) content
Low-toxicity
Made from rapidly renewable materials
Persistent, bioaccumulative toxic (PBT)-free
Procured from vendors and contractors that follow green policies in their own operations
Produced locally or regionally (to minimize environmental costs associated with shipping)
Recyclable
Recycled content
Reduced greenhouse gas emissions
Reduced packaging, especially polystyrene
Refurbished
Resource efficiency
Upgradeable
Water efficient"
3. 
Planning. Small orders and last-minute purchases should be minimized, thereby increasing the capability of each department to purchase its goods and services in larger quantities in order to obtain the maximum discounts possible.
4. 
Overdrafts prohibited. No purchase will be authorized which would overdraft a budgetary line item account in the absence of approval from the City Administrator or City Council as provided in Sections 9.8 and 9.9 of the City Charter.
5. 
Buying proper quality. It is the duty of the requisitioning department to secure the best quality for the purpose intended. "Quality buying" is the buying of goods or services that will meet or exceed the requirements for which they are intended. The environmental characteristics of a service or product shall not be excluded from determination of proper quality.
6. 
Sales tax. The City is generally exempt from paying local and State sales taxes and Federal excise taxes (except for motor fuels). The Finance Department can provide the necessary exemption documents to any vendor upon request.
7. 
Endorsements. It is the policy of the City not to endorse or in any way permit an employee's name, position or the City's name to be used and advertised as supporting a product or vendor.
8. 
Personal purchases. Purchases for personal use by employees by the City are prohibited. City employees are also prohibited from using the City's name or the employee's position to obtain special consideration in personal purchases.
9. 
Lowest and best bidder. Contracts for purchases shall be awarded to the lowest and best bidder. In determining the "lowest and best bidder", in addition to price, the City will consider, when applicable, these considerations:
a. 
Whether or not the commodity or service is "environmentally preferable" as defined in Subsection 140.010(B).
b. 
The life-cycle cost and return on investment of a commodity or service, in addition to the initial cost.
c. 
The ability, capacity and skill of the bidder to perform the contract or provide the service required.
d. 
Whether the bidder can perform the contract or provide the service promptly or within the time specified without delay or interference.
e. 
The character, integrity, reputation, judgment, experience and efficiency of the bidder.
f. 
The quality of performance of previous contracts or services.
g. 
The previous and existing compliance by the bidder with applicable laws.
h. 
The sufficiency of the financial resources and ability of the bidder to perform the contract or provide the service.
i. 
The quality, availability and adaptability of the supplies or contractual services to the particular use required.
j. 
The ability of the bidder to provide future maintenance and service for the use of the subject of the contract.
k. 
The number and scope of conditions attached to the bid.
l. 
Any other pertinent factor.
B. 
Purchasing Procedures.
1. 
Purchases with material value from zero dollars ($0.00) to seven hundred fifty dollars ($750.00). Items in this range within budget and not available through an existing purchasing contract may be ordered by the department director. Prior to placing an order, departments should obtain the lowest cost through cost comparisons whenever reasonably possible. The requisition must be approved only by the department director for issuance of a purchase order.
2. 
Purchases with material value from seven hundred fifty-one dollars ($751.00) to one thousand four hundred ninety-nine dollars ($1,499.00). Items in this range within budget and not available through an existing purchasing contract may be ordered by the department director. Prior to placing an order, the department should obtain the lowest cost through cost comparisons whenever reasonably possible. The requisition must be approved by the department director and the account associate in the Finance Department for issuance of a purchase order.
3. 
Purchases with material value from one thousand five hundred dollars ($1,500.00) to four thousand nine hundred ninety-nine dollars ($4,999.00). Items in this range within budget and not available through an existing purchasing contract may be ordered by the department director after the required approval of the requisition and purchase order. These items must be approved by the department director, the account associate and the Finance Director. Formal written quotes are required to insure a competitive purchase. To the extent possible, at least three (3) quotes should be obtained.
4. 
Purchases with material value from five thousand dollars ($5,000.00) to nineteen thousand nine hundred ninety-nine dollars ($19,999.00). Items in this range within budget and not available through an existing purchasing contract may be ordered by the department director after the required approval of the requisition and purchase order. These items must be approved by the department director, account associate, Finance Director and the City Administrator. Formal written quotes are required to insure a competitive purchase. To the extent possible, at least three (3) quotes should be obtained.
5. 
Purchases with material value of twenty thousand dollars ($20,000.00) and above and purchases not within budget (after authorized transfers). Items in this category may be ordered only after official approval by the City Council. All such purchases require written quotes (at least three (3) if possible). For purchases exceeding fifty thousand dollars ($50,000.00), a request for bids must be formally advertised once a week on the same day for two (2) consecutive weeks in a newspaper of general circulation within the City.
6. 
Multiple or repeat orders. Multiple or repeat orders cannot be used to avoid the requisite approvals for the total purchase amount.
7. 
Special circumstances. If less than three (3) quotes are received and the quotes all exceed the amount budgeted for the purchase, departments should either request new bids for the desired goods or services or obtain approval from the Director of Finance to proceed based on the initial quote(s) on the grounds that special circumstances exist such that requests for new bids would not generate different quotes. Such special circumstances should be explained in a memorandum accompanying the purchase order.
8. 
Exempt purchases. The following purchases, by their very nature, are exempt from the normal purchasing guidelines and require the special procurement practices set forth in subsequent Sections of this Chapter:
a. 
Sole-source or monopoly purchases;
b. 
Cooperative purchase agreements;
c. 
Fuel purchases;
d. 
Professional services;
e. 
Term and supply and annual contracts;
f. 
Emergency purchases.
C. 
Change Orders.
1. 
Construction change orders approved by City Administrator. The City Administrator is authorized to approve change orders not exceeding ten percent (10%) of the original contract or up to fifty thousand dollars ($50,000.00), whichever is less.
2. 
Construction change orders approved by City Council. In the event a construction change order contains costs in an amount that exceeds the authorization of the City Administrator, the change order must go to City Council for approval. In the event change orders on a single contract accumulate to an amount in excess of the City Administrator's authorization, all subsequent change orders, regardless of amount, must go to City Council for approval.
3. 
Changes to purchase orders. Change orders to purchase orders are only allowed if the change is in the cost of the item being purchased. No change orders are allowed for changes in quantity or scope of the original purchase order. Changes in quantity or scope are to be purchased with separate purchase order numbers unless the City Administrator or his/her designee authorizes the amendment of an existing purchase order.
a. 
Purchase order change order cost adjustments in an amount up to three thousand dollars ($3,000.00) require prior approval of the Director of Finance.
b. 
Purchase order change order cost adjustments in an amount from three thousand one dollars ($3,001.00) to nineteen thousand nine hundred ninety-nine dollars ($19,999.00) require prior approval of the Director of Finance and the City Administrator.
c. 
Purchase order change order cost adjustments in an amount over nineteen thousand nine hundred ninety-nine dollars ($19,999.00) require prior approval of the Director of Finance, City Administrator and City Council.
D. 
Fuel Purchases. Bulk fuel purchases for vehicles may be made without approval of a purchase order, provided that three (3) quotes are obtained and the lowest cost vendor is selected. A requisition shall still be submitted. To the extent vehicles cannot be fueled through the City's bulk-purchasing program, purchases may be made at any commercial service station, although price shopping is still encouraged. Documentation of the purchase shall be submitted.
E. 
Cooperative Agreements.
1. 
The City may contract directly with other governmental entities for the purchase of items. The City may also participate in, sponsor, conduct or administer a cooperative purchasing agreement whereby items are procured in accordance with a contract established by another governmental entity provided that such contract was established in accordance with the laws and regulations applicable to the establishing governmental entity.
2. 
From time to time, but not less than each July of each even-numbered year, the Finance Department shall provide a list of cooperative purchasing programs in which the City will participate. The Finance Department shall be responsible for notifying the departments of current approved cooperative purchasing agreements and any limitation or special requirements for their use.
3. 
The City Administrator will review and approve all cooperative purchasing agreements with other governmental agencies with material value under twenty thousand dollars ($20,000.00) prior to their use. The City Council shall review and approve cooperative purchasing agreements with material value of twenty thousand dollars ($20,000.00) or more. Competitive bidding procedures do not apply to such purchases made through approved cooperative purchasing agreements.
4. 
"Acceptable cooperative purchasing agreements" are agreements which contain the same terms, conditions, specifications and pricing for the respective item that the department would bid and purchase on their own.
5. 
Additional City Council approval shall not be required for the purchase of any budgeted items from approved cooperative purchasing agreements.
F. 
Term And Supply And Annual Contracts — Open Purchase Orders.
1. 
Term and supply contracts and annual contracts shall be bid through each department following the same procedures established by this policy for other purchases based upon estimated material value of contract. The department requesting the service shall prepare a recommendation of award for City Council approval for all term and supply and annual contracts with material value of twenty thousand dollars ($20,000.00) or more based upon the annual value of the contract. All multiple year contracts should contain a clause explaining that the obligation of the City to pay for goods and/or services under the contract is limited to payment from available revenues and shall constitute a current expense of the City and shall not in any way be construed to be a debt of the City in contravention of any applicable constitutional or statutory limitations or requirements concerning the creation of indebtedness by the City nor shall anything contained in the contract constitute a pledge of the general tax revenues, funds or monies of the City and all provisions of the contract shall be construed so as to give effect to such intent.
2. 
Once such a contract is approved, specific purchases within budget should be made on an "as-needed" basis without further bidding while the contract remains open, unless and until the City terminates the contract. Any department that believes such a contract is no longer competitive should provide such information to the Finance Director.
G. 
Professional Services Contracts.
1. 
Contracts for professional services provided by financial advisors, physicians, certified public accountants, engineers, architects, land surveyors, brokers, consultants and other specialized or technical services shall be obtained through the special procurement procedures set forth in this Section.
2. 
Requests for proposals for professional services shall be submitted to the City Administrator for review and approval prior to distribution. When an RFP for professional services is approved, a limited number of qualified professionals known to the City will be invited to submit a proposal setting forth their interest, qualifications and description of proposed services. A contract will be negotiated with the professionals deemed to best meet the City's needs.
3. 
Upon approval of the Finance Director and City Administrator, professional services contracts under ten thousand dollars ($10,000.00) may be exempt from the request for proposal process.
4. 
Professional services contracts for twenty thousand dollars ($20,000.00) or more must be approved by the City Council.
5. 
In the event a change in the scope of services increases the total compensation for a professional services contract originally valued at twenty thousand dollars ($20,000.00) or more or if the change will cause the original contract amount to exceed nineteen thousand nine hundred ninety-nine dollars ($19,999.00), a written contract modification or supplemental agreement shall be approved by the City Council prior to the additional work commencing. Contract modifications or supplemental agreements that do not cause the total contract amount to exceed nineteen thousand nine hundred ninety-nine dollars ($19,999.00) may be approved by the City Administrator.
H. 
Emergency Purchases. In case of an emergency which requires immediate purchase of supplies or services, the City Administrator may authorize such purchase or secure such services needed without complying with the procedures as set out above. Department directors faced with an emergency purchase need shall notify the City Administrator as soon as possible. When possible (if purchase is greater than nineteen thousand nine hundred ninety-nine dollars ($19,999.00) in such an emergency, the City Administrator shall seek approval from the City Council at a special or regular meeting prior to the purchase. If a timely special or regular meeting of the City Council is not possible, a full report of such an emergency purchase shall be made by the City Administrator to the City Council as soon as possible.
I. 
Sole-Source And Monopoly Purchases.
1. 
The Director of Finance or designated representative and department director or designated representative shall authorize a sole-source purchase and accordingly waive competitive purchasing procedures, when such a request is presented in writing by the requesting department with the requisition, documenting that only a single feasible procurement source exists. A single feasible sole source exists when:
a. 
Supplies or services are proprietary and only available from a single manufacturer or a single distributor, or
b. 
It is determined that only one (1) distributor services the region, or
c. 
When supplies or services are available at a significant discount from a single distributor for a limited period of time, or
d. 
When a project with specific circumstances requires specialized consultant or technical services with a unique combination of abilities or expertise.
2. 
In the event the amount of a sole-source purchase will exceed nineteen thousand nine hundred ninety-nine dollars ($19,999.00), it must also be approved in advance by the Director of Finance and City Administrator or their designated representatives and must be approved by the City Council.
3. 
Purchases of services that are provided on a monopoly basis such as electrical, gas and water utility services do not require specific City Council approval unless budgeted amounts are exceeded.
J. 
Lease Of Real Property.
1. 
Upon action of the City Council, the City may lease real property that it owns for fair market value, when such property is currently underutilized, in order to maximize the return of the property to the City until such time as such property shall be required for public usage.
2. 
Nothing herein shall prevent the City Administrator or designated representative from negotiating a higher rent for a lessee of any real property that is shown to have a unique value to such lessee due to its configuration, accessibility or size, subject to approval from the City Council.
K. 
Sale Of Real Property.
1. 
Upon action of the City Council, the City may sell unneeded real property for fair market value.
2. 
Nothing herein shall prevent the City Administrator or designated representative from negotiating a higher price for sale or trade to a buyer for any real property that is shown to have a unique value to such buyer due to its configuration, accessibility or size, subject to approval from the City Council.
L. 
Disposal Of Surplus Goods. The City should promptly dispose of all surplus property to the economic advantage of the City. Competitive bidding on surplus, obsolete or unusable goods is required through sealed bids, auction, open market sales or other available means. The disposal of all such goods requires the approval of the City Administrator; additional approval by the City Council is required for goods in excess of nineteen thousand nine hundred ninety-nine dollars ($19,999.00) in total material value. Trade-in opportunities should be pursued when available to reduce the City's purchasing costs. Competitive bidding shall only apply to a trade-in to the extent it applies to the new purchase. Approvals of a trade-in shall be handled in conjunction with the approval of the new purchase as dictated by the purchase price.
M. 
Designated Representatives.
1. 
Throughout this policy several references have been made to "designated representatives"; in order to assure that proper authority has been given to an individual who represents themselves as a "designated representative", the departments are requested to make an effort to communicate said designated authority to the Finance Department when appropriate.
2. 
The Finance Department shall be provided evidence of an individual's "designation" immediately upon request.
N. 
Purchasing Policy Supplements. In the event a specific procurement procedure is required to be in writing when the City is purchasing an item which is funded in whole or in part by grant funds, i.e., CDBG, the City Administrator shall have the authority to supplement this Section to incorporate the special requirements of that procurement.
O. 
Policy Clarification. The City Administrator may clarify the provisions of this Chapter in furtherance of the stated goals of this Chapter by written statement, provided the City Administrator cannot alter in any way the extent to which City Council action is required hereunder.
P. 
Yearly Report. The City Administrator shall provide a yearly report to the City Council of the dollar amount of environmentally preferred products purchased by the City in the preceding year, the categories of products purchased, the savings or costs associated with the green purchasing policy, and any other effects associated with the City's green purchasing program.

Section 140.040 Accounting Standards and Procedures.

[R.O. 2008 §2-219; Ord. No. 829 §6, 12-12-1977]
The City shall adopt the accounting standards as prescribed by the American Institute of Certified Public Accountants and the Governmental Accounting Standards Board. The City Administrator may promulgate administrative accounting procedures for uniform accounting procedures.

Section 140.050 Financial Reports.

[R.O. 2008 §2-220; Ord. No. 829 §8, 12-12-1977; Ord. No. 2130 §1, 6-11-2001]
A. 
The City Administrator shall prepare or cause to be prepared quarterly statements of municipal revenue, expenditures and current financial condition. Such reports shall be distributed to the Mayor and City Council.
B. 
For the purposes of financial reports, any encumbrance or contractual financial commitment in excess of two thousand dollars ($2,000.00) shall be reflected as an expense during the month and fiscal year in which it is incurred. Any such encumbrance shall be deducted from any cash balance to reflect an accurate accounting of uncommitted funds. Encumbrances shall not lapse at year-end.

Section 140.060 Investments.

[R.O. 2008 §2-221; Ord. No. 829 §9, 12-12-1977; Ord. No. 3053 §1, 3-28-2005]
A. 
The City Administrator shall seek the highest yield from the investment of surplus City funds consistent with the safety of investment and cash flow requirements of the City provided such investments are consistent with State Statutes regulating such investments. A report shall be made to the Mayor and City Council.
B. 
The City Council shall designate a City depository for handling any City checking account at least once every three (3) years.

Section 140.070 City Administrator's Supplement To City Purchasing and Sales Policy.

[R.O. 2008 §2-222; Ord. No. 4000, 1-9-2006]
A. 
Purchase Orders.
1. 
After approval of a requisition, the City purchase order form will be completed and signed by the Director of Finance in accordance with these procedures. In order to insure expeditious processing of purchase orders, it is important that the requisition be completed accurately by the requisitioning department. When applicable, a copy of City Council approval action shall be attached to the requisition.
2. 
A "purchase order" is an offer to make a contract between the City and a vendor. The contract is not binding until it is accepted by the vendor. The issuance of purchase orders or direct purchases by unauthorized individuals or any other unauthorized purchase (including, but not limited to, personal expenses) will not be recognized by the City and payment for these obligations will not be approved. Purchase orders in excess of five thousand dollars ($5,000.00) must be signed by the City Administrator.
3. 
The purchase order will consist of three (3) copies; one (1) copy will remain in the Finance Department (attached to the requisition) and two (2) copies will be returned to the requisitioning department.
4. 
Purchase orders are classified as either "original" or "confirming" based on whether or not the vendor has previously been notified of the City's intent to make the purchase of goods or services.
B. 
Construction Contracts.
1. 
Construction contracts supervised by City personnel shall be bid through the Public Works Department in accordance with the procedures established for other purchases according to the applicable price range.
2. 
Construction contracts supervised by outside consulting services shall be bid in coordination with the Public Works Department. A bid package shall be reviewed by public works and approved by the department head or designated representative. The consultant as determined by the Public Works Department and the department head or designated representative shall distribute the bid package to potential bidders. Public works shall receive, record and tabulate the bids and shall certify that bids were opened in compliance with all purchasing policy requirements. The final award of the bid shall be communicated to the successful bidder by the Public Works Department.
3. 
All required performance bonds must be obtained.
C. 
Product Testing/Demonstrations.
1. 
Product demonstrations may be held as deemed appropriate by a department director without prior approval of the Finance Department.
2. 
Prior to taking into the City's possession any item for testing or evaluation, departments shall contact the Director of Finance for approval. The department shall notify the vendor in writing that the City has taken the item into possession for test purposes only and if a purchasing decision is made, that decision will be communicated directly to the vendor at the end of the test period. In no event shall the retention of a test item by the City be evidence of intent to purchase said item.
D. 
General Instructions.
1. 
General specifications.
a. 
Keep specifications as simple as possible while maintaining the exactness required to insure bidders provide the quality goods or services as required by specifications.
b. 
Whenever possible, identify the equipment or material required with some name brand or known standard specifications already on the market.
c. 
Specifications should promote competition. Justification must be provided to the City Administrator for restrictive specifications.
d. 
Flexibility in the specifications is desirable in instances where new technologies are being sought. Specifications should be specific enough to guarantee the quality required but sufficiently flexible to allow vendors to be creative in their proposals.
e. 
Specifications should be written with clear, simple language.
2. 
Types of specifications. There are several ways of structuring specifications to protect the integrity of the purchasing process and to insure that the needs of the City are met. Different methods of structuring specifications include:
a. 
Qualified products or acceptable brands list. These lists are developed only where it is not possible to write specifications adequate to identify the quality and performance required of the goods or services to be purchased. Acceptable brands lists are also used when tests that would be necessary to determine compliance with technical specifications are lengthy, costly or require complicated technical equipment.
b. 
Specifications by brand or trade name. Brand or trade names should be used where brand-name products have been found to be superior to others for the purpose intended.
c. 
Specifications by blueprint or dimension sheet. Specifications of construction projects for everything from buildings and streets to custom-built cabinets, furniture, machines or other equipment should be written to reference the blueprints or dimension sheets prepared by the engineer or architect.
d. 
Specifications by chemical analysis or physical properties. Specifications which include the chemical analysis or physical properties of the goods, when clearly requested, place responsibility on the supplier to provide exactly those items requested.
e. 
Specifications by performance, purpose or use. Specifications which include a set of performance criteria for the goods or services required will provide flexibility for vendors to design products or programs specifically aimed at meeting such criteria.
f. 
Specification by identification with industry standards. Specifications will often refer to industry-wide standards or to standards set by other public jurisdictions.
g. 
Specifications by samples. Whenever appropriate, a sample is always a good way to make requirements perfectly clear.
3. 
Delivery and performance guidelines. A contract or purchase order that is complete in all respects and that is accepted by the parties concerned still must produce the intended results or objectives before it can be considered a successful or completed purchase. The terms and conditions must clearly define the delivery and performance requirements of the services, supplies or equipment.
a. 
Follow-up and expediting. Follow-up normally applies to the monitoring of the delivery schedules to assure compliance. Expediting, in the purest sense, involves an attempt to improve or to reduce the contractually stipulated delivery time for various reasons and the vendor is not legally obligated to comply. The primary objectives of the follow-up function are:
(1) 
To assure full compliance by the vendor; and
(2) 
To develop documentation for future evaluation of the vendor's performance.
If delivery problems develop, there are certain techniques that may be used to help solve them:
(a) 
Contact the salesman for assistance.
(b) 
Initiate collect phone calls; letters may also be used.
(c) 
Visit the vendor's plant. This might help solve the problem and will assist in verifying any reason for the delay.
(d) 
Cancel the contract for non-performance.
Prior to the cancellation, authorization from the Director of Finance or City Administrator must be obtained.
4. 
Delinquent deliveries. When follow-up efforts have failed and the deliveries have become delinquent, one (1) of two (2) actions must be taken:
a. 
Authorize additional time for delivery; or
b. 
Cancel and order from other sources.
Prior to cancellation, authorization from the Director of Finance or City Administrator must be obtained. In all cases, the reasons for delinquent deliveries should be documented. This information may be needed in evaluating future bids submitted by that particular vendor.
5. 
Partial deliveries. Some purchase orders may list several items. If these items can be used separately, partial payments can and should be authorized. However, if the separate items are part of a system, then partial deliveries should not be authorized.
6. 
Substitution. To meet the contractual delivery schedule, it may be appropriate in some situations to consider substitute items. The specifications may cover such a possibility.
Whenever substitutions are necessary due to shortcomings of the vendor, it is the responsibility of the purchaser to seek and obtain an adjustment for lower prices on the substituted items.
7. 
Non-performance. Should the vendor fail to meet any requirements of the specifications, the vendor can be cited for non-performance. Recourse could include:
a. 
The City may exercise its rights under a liquidated-damages clause or under the terms of a performance bond.
b. 
The City may obtain the needed items from another source and charge delinquent vendor the excess difference in cost.
c. 
The City may terminate the contract for default if it is in the best interest of the City and items can be obtained under more favorable conditions from other sources.
Any such action should be approved by the Finance Director or the City Administrator.
8. 
Inspection and testing guidelines. Goods and materials should be checked at the time of receipt to detect any damage or defects. Inspection and testing may be performed at origin or destination.
a. 
Reports, rejection and return authorization. Whenever an inspection is performed, all reports to properly support claims or actions must be thoroughly documented. A copy of the inspection report will normally be used to substantiate payment for the goods and verification of receipt. In the event of rejection, for whatever purpose, certain steps must be taken to inform and protect the rights of the vendor as well as the City. Reasons for rejection must be listed and these reasons should reference specific requirements of the contract.
b. 
Damage during shipment. It is important that all damage be completely described on the receiving report. Any evidence of concealed damage should be noted at this time. The carrier should be notified immediately and a joint inspection should be scheduled with the carrier's representative. When it is apparent that the extent of the damage causes the goods to be worthless, they should not be accepted.
c. 
Latent defects. Latent defects may be the result of damages in transit or of failure of the manufacturer to conform to specifications. If specific liability for the defect cannot be determined between the carrier, the vendor or the manufacturer, the City may have to file a claim against all parties seeking their cooperation in resolving the situation.
9. 
Invoices. Vendors are to be instructed to send all original invoices to the City of Creve Coeur, Accounts Payable Department, 300 North New Ballas Road, Creve Coeur, Missouri 63141.
10. 
Purchases supported by grant funds. Departments shall review all requirements for grant funds used in the procurement of items to insure the bidding process required as a condition to receiving said grant funds is complied with during the procurement of the item. The Finance Department will assist in the inclusion of all required procedures that are in addition to the requirements of the policy.
11. 
Delivery of items. When items are delivered to City departments, the only paperwork to be signed is the delivery notice. Any other vendor purchase order, document, contract, warranty, maintenance agreement, etc., is not to be signed at delivery. All such documents shall be forwarded to the Finance Department or retained by the appropriate department.
E. 
Disputes, Adjustments And Appeals.
1. 
Departments shall notify the Finance Department in a timely manner concerning any complaint or dispute regarding an order, delivery, specification, defective goods or poor performance by a supplier. Any decision concerning an attempt to cancel a contract or an attempt to resolve a dispute regarding defective products or unacceptable services shall be made jointly by the Finance Department and the department director or department designated representative. Any correspondence with suppliers shall be made available to both the department director and the Director of Finance.
2. 
In the event a procurement dispute arises between the requesting department and the Finance Department, the City Administrator shall make the final decision.
F. 
Compliance With Applicable Law. All transactions shall be made in compliance with applicable law, including, but not limited to, the City's Charter and ordinances and also State laws governing such issues as general construction bidding requirements per Chapter 8, RSMo., guaranteed energy cost savings contracts (Section 8.231, RSMo.), buying preferences (Sections 34.073 et seq., RSMo.), health insurance (Section 67.150, RSMo.), transactions with Federal and State Government (Sections 70.100 et seq., RSMo.), special assessment sidewalks (Sections 88.880 et seq., RSMo.), solid waste (Section 260.208, RSMo.) and prevailing wage on public works projects (Section 290.250, RSMo.). Before commencing efforts regarding a transaction involving an unfamiliar subject area, a determination should be made as to whether a consultation with the City Attorney is necessary.
G. 
Responsibility For Enforcement. The Director of Finance shall be responsible for monitoring the compliance with this policy. Department directors will be entrusted with the responsibility of enforcing the policy within their departments.