[HISTORY: Adopted by the City Council of the City of Butler as indicated in article histories. Amendments noted where applicable.]
Article I General Provisions
Article II Rules and Procedures
[Adopted 2-19-1987 as Part 1, Title 1, Art. 107, of the 1987 Codified Ordinances]
The purposes of this chapter are to prescribe the manner in which the City Clerk, acting as Purchasing Officer for the City, shall control the purchasing of materials, supplies, equipment and certain contractual services for the City and to maintain a high ethical standard for all officers and employees of the City in connection therewith.
The Purchasing Officer shall have the power and it shall be his duty:
To purchase or contract for, within the limitations imposed by law and in accordance with regulations adopted by the City, all materials, supplies, equipment and contractual services needed by the City or any department thereof.
To purchase or procure for the City materials, supplies, equipment and contractual services from the lowest responsible bidder meeting specifications.
To sell or dispose of all obsolete or unusable personal property in accordance with the laws of the commonwealth or the rules, regulations or resolutions which may be adopted by Council.
The Purchasing Officer and every officer and employee of the City are expressly prohibited from accepting, directly or indirectly, from any person, company, firm or corporation to which any purchase order or contract is or might be awarded, any rebate, gift, money or anything of value whatsoever.
[Amended 9-27-2012 by Ord. No. 1657]
All purchases of and contracts for materials, supplies, equipment or services estimated to cost over $18,500 and all sales of obsolete or unusable personal property whose estimated value is more than $1,000 shall be based on competitive bids. Where standardization is desirable and where permitted by law, the purchase of supplies, materials and equipment may be by negotiation. All other purchase or sales for less than the above estimated dollar amounts shall be based, wherever possible, on competitive quotations, either by telephone or letter inquiry.
The Purchasing Officer is hereby authorized and directed to adopt such written regulations as may be necessary for the implementation of this chapter. Any regulations adopted by the Purchasing Officer shall become effective within 30 days after submission to Council, unless the regulations are disapproved by Council within the thirty-day period. Copies of the regulations shall be on file in the office of the Purchasing Officer and shall be made available for public inspection during business hours.
Except as provided in the regulations prescribed by the Purchasing Officer, no officer or employee of the City shall purchase materials, supplies or equipment or make contracts, within the scope of this chapter, other than through the Purchasing Officer.
Any purchase ordered or contract made contrary to the provisions hereof shall not be approved by City officials, and the City shall not be bound thereby.
If the Purchasing Officer becomes ill or needs to be absent from the City, the Mayor shall designate a City employee who shall perform the duties of the Purchasing Officer during such absence or disability. The person so designated shall not perform these duties for a period longer than 30 days without the approval of Council.
In addition to and in concurrence with the purchasing authority conferred in Article I of this chapter, the Purchasing Officer shall:
Procure for the City of Butler the highest quality in supplies, materials, equipment and contractual services at the expense to the City of Butler.
Discourage collusive bidding and endeavor to obtain as full and open competition as possible on all purchases and sales.
Exploit the possibilities of bulk and seasonal buying.
Establish and adopt standards relative to the minimum number of quantities, sizes and varieties of supplies, materials and equipment consistent with the successful operation of the City of Butler government. Standards shall be developed in cooperation with the heads of using departments.
Prepare and adopt written specifications for supplies, materials and equipment as may be required. Specifications shall be developed in cooperation with the using departments.
Prepare and maintain a vendors' and contractors' file of persons, firms, and corporations dealing in supplies, materials, equipment or services used by the City of Butler.
Bring to the attention of the Council, vendors or contractors who default on their quotations or contracts. The Council then may declare such vendors or contractors irresponsible bidders and disqualify them from receiving any business from the municipality for a stated period of time, as determined by Council.
Obtain all federal and Commonwealth of Pennsylvania tax exemptions to which the City of Butler is entitled.
All using departments shall thoroughly plan all aspects of projects or work assignments and shall file with the Purchasing Officer in such a manner, at such time and for such future periods as the Purchasing Officer shall prescribe, detailed estimates of their requirements in supplies, materials, equipment, contractual services and man hours.
A using department shall not be prevented from filing in the same manner with the Purchasing Officer, at any time, an estimate for any materials, supplies, equipment and contractual services, the need for which was not foreseen when the detailed estimates were filed. Situations such as this should be minimized through proper planning procedures prior to work or project commencement.
The Purchasing Officer shall examine each estimate and he shall have the authority to revise it as to quantity, quality or estimated cost, but revision as to quality shall be in accordance with the standards and specifications established pursuant to the regulations. The Purchasing Officer shall consult with the head of the requisitioning department prior to making revisions.
Except as provided in § 69-13 below, the Purchasing Officer shall not issue any order for delivery on a formal contract or open market purchase until it has been determined that there is to the credit of the using department concerned a sufficient unencumbered appropriation balance to defray the amount of such order.
When directed by the Council, or required by the laws of the Commonwealth of Pennsylvania, supplies, material, equipment and contractual services shall be purchased by formal written contract from the lowest responsible bidder, after due notice inviting proposals.
Notice inviting bids shall be published as required by law. The required newspaper notices shall include a general description of the supplies, materials, equipment and contractual services to be purchased, state where bid bonds and specifications may be secured, and the time and place for opening bids.
The Purchasing Officer also shall solicit bids from all prospective vendors and contractors by mailing them copies of the bids with the necessary specifications and any other information which will acquaint them with the proposed purchase.
Bid deposits shall be required for all advertised bids or when deemed necessary to protect the interests of the City. Said bid deposits shall consist of cash, a cashier's or certified good faith check, or bond with corporate surety in an amount of 10% of the bid. Notices of such requirements shall be set forth in the bid specifications. All bids not submitted with the required deposits shall be rejected.
Unsuccessful bidders shall be entitled to the return of deposits where such have been required.
A successful bidder shall forfeit any deposit required upon failure on his part to enter into a contract within 20 days after the award.
Bids shall be sealed, shall be identified as bids on the envelope, shall be submitted at the place and no later than the time stated in the public notice inviting bids and shall be opened at a public meeting of the Council at the time and place stated in the public notice.
Bids received after the stated time shall not be accepted.
A tabulation of all bids received shall be made available for public inspection.
If a meeting stated in a public notice is not held, the business that was to be transacted may be done so at a subsequent public meeting, provided proper notice is given as required by law.
The Council shall have the authority to accept or reject any or all bids.
Contracts shall be awarded to the lowest responsible bidder at the public meeting of Council at which such bills are opened or at a subsequent public meeting, the time and place of which is announced when bids are opened.
If an announced or stated meeting cannot be held, the contract shall be awarded at a subsequent public meeting, provided proper notice is given as required by law.
When the award is not given to the lowest bidder, a full and complete statement of the reasons for placing the contract elsewhere shall be placed in the minutes of the Council meeting at which such award is made.
If two or more of the lowest bids received are for the same total amount or unit price, quality and service being equal, the contract shall be awarded to a local bidder. Where the decision can be made in no other way, the contract shall be awarded to one of the tie bidders by drawing lots in public.
To Protect the interests of the City of Butler, a performance bond in the amount of 50% of the proposed contract shall be required from the successful bidder before entering into a contract. If such bond is not provided within 20 days after the award of such bid, the award shall be void.
The contractor also shall furnish such other bonds or insurances as may be required by state law and City of Butler ordinance specifications. The amounts and types of these bonds and insurances shall be set forth in the bid specifications.
No contract or purchase shall be subdivided to avoid the requirements of law.
[Amended 9-27-2012 by Ord. No. 1657]
All open market purchases over $18,500 shall be based on at least two written competitive bids and shall be awarded to the lowest responsible bidder. Council shall first approve the contract before the award is made.
Open market purchases between $10,000 and $18,499 shall be based, wherever possible, on at least two competitive quotations (letter inquiries and/or telephone solicitations) and shall be awarded to the person, farm or corporation submitting the lowest quotation meeting the specifications or the description or the sample as set forth in the price quotation request.
Adjustments to the base dollar amounts either requiring sealed competitive bidding or informal price quotes will be made annually based upon the consumer price index as established through the Pennsylvania Department of Labor and Industry.
An emergency situation exists when the material or service to be purchased to be used in conjunction with true emergency circumstances and not those circumstances arising out of poor or nonexistent planning or department management.
In case of actual emergency and with the approval of the Purchasing Officer, the head of any using department may purchase directly any supplies, materials and equipment, in amounts not greater than $50, whose immediate procurement is essential to prevent delays in the work of the using department or which may vitally affect the life, health or convenience of citizens.
The head of such using department shall submit to the Purchasing Officer a record of the emergency purchase together with a report of the circumstances of the emergency.
The Purchasing Officer, or his agent, shall inspect or supervise the inspection of all deliveries of supplies, materials, equipment or contractual services to determine their conformance with the specifications set forth in the order of contract.
The Purchasing Officer may designate a Department Manager, Supervisor or other staff member to act as his/her agent.
The Purchasing Officer may authorize using departments having the staff and facilities for adequate inspection to inspect all deliveries made to such using departments under rules and regulations which the Purchasing Officer shall prescribe.
The Purchasing Officer shall have the authority to require chemical and physical tests of bid and delivery samples to determine their quality and conformance with the specifications. In the performance of such tests, the Purchasing Officer shall have the authority to make use of laboratory facilities of any department of the City of Butler government or of any outside laboratory.
All using departments shall submit on or before October 1 of each year inventory of equipment used by that department to the Purchasing Officer.
All using departments shall submit monthly supplies and material inventories to the Purchasing Officer on or before the 15th day of the succeeding month.
All using departments shall submit to the Purchasing Officer, such times and in such form as he shall prescribe, reports showing stocks of all supplies, materials and equipment which are no longer used or which have become obsolete, worn out or scrapped.
The Purchasing Officer shall have the authority to transfer surplus supplies, materials and equipment to other using departments, or he shall have the authority to exchange such personal property on new supplies, materials and equipment or, with the approval of Council, to sell personal property which has become unsuitable for public use.
Surplus, unusable or obsolete supplies, materials and equipment whose estimated value is in excess of $200 shall be sold by formal written contract to the best responsible bidder, after due notice inviting proposals as provided in the law.
Sales of surplus, obsolete or unusable personal property valued at less than $200 shall be made in the open market and in accordance with the procedure set forth for open market purchases.
The Purchasing Officer shall have the authority to join with other units of government in cooperative purchasing plans where the best interests of the City of Butler would be served thereby.
The Purchasing Officer shall adopt such forms and additional procedures as may be necessary to implement these rules and regulations. He also shall prepare regulations for the management of all purchasing records. Regulations relating to the destruction and retention of purchasing records shall be approved first by the City of Butler's Solicitor and then by the Council.