[HISTORY: Adopted by the Mayor and City Council of the City of Monroe 6-1-1993 by Ord. No. 93-008; amended in its entirety 12-20-2010 by Ord. No. 10-006. Subsequent amendments noted where applicable.]
Contracts for public improvements — See §§ C-237, C-238, C-241.
Purchasing prohibited without order — See § C-315.
Departments and Divisions — See Ch. 41.
Ethics — See Ch. 58.
Officers and employees — See Ch. 90.
Finance generally — See Mich. Const. Art. 9, § 1 et seq.
Deposit of public funds — See MCLA § 129.11 et seq.
Public money — See MCLA § 750.489 et seq.
As used in this chapter, the following terms shall have the meanings indicated:
- Any corporation, partnership, individual, sole proprietorship, joint-stock company, joint venture or any other private legal entity.
- All types of City agreements, regardless of what they may be called, for the procurement of supplies, services, equipment or construction.
- The process of publishing electronically on the internet directly or through a bid notification system such as the Michigan Intergovernmental Trade Network (MITN) e-procurement initiative or similar internet site.
- A. Ownership of any interest or involvement in any relationship from which, or as a result of which, a person within the past year has received, or is presently or in the future entitled to receive, more than $1,000 per year, or its equivalent;
- B. Ownership of 10% or more of any property or business; or
- C. Holding a position in a business such as officer, director, trustee, partner, employee or the like, or holding any position of management.
- A payment, loan, subscription, advance, deposit of money, service or anything of more than nominal value, present or promised, unless consideration of substantially equal or greater value is received.
- Located within the municipal boundaries of the City of Monroe.
- LOWEST QUALIFIED BIDDER
- The lowest bidder having qualifications to perform the work which are satisfactory to the City Council.
- MATERIALS and SUPPLIES
- Any and all articles, equipment or things, or a combination thereof, which shall be furnished to or used by any officer or department of the City for any governmental purposes and which are made by a single requisition form.
- The buying, purchasing, renting, leasing or otherwise acquiring of any supplies, services, equipment or construction. The term also includes all functions that pertain to the obtaining of any supply, service, equipment or construction, including a description of the requirements, selection and solicitation of sources, the preparation and award of contracts, and all phases of contract administration.
- Any and all services, other than contractual services or collective bargaining agreements, of any type, whether or not including the furnishing of materials or supplies as a part thereof or incident thereto, for which a consideration in money is paid by the City.
The procurement of supplies, equipment and services for the City of Monroe shall be accomplished under the following guidelines:
To procure for the City materials, supplies, equipment and contractual services of the highest quality and at the least expense to the City;
To endeavor to obtain as full and open competition as possible on all purchases and sales;
To exploit the possibility of buying in sufficient substantial quantities as to take full advantage of available discounts;
To act so as to procure for the City all tax exemptions to which it is entitled;
To promote local supplies and contractual services by identifying local suppliers and contractors, and providing notice and opportunity to bid to local suppliers and contractors in the City bid process. Nothing in this guideline, however, shall be interpreted to be in conflict with Act 196 of the Public Acts of 1973, as amended.
Editor's Note: See MCLA § 15.346 et seq.
To join with other units of government in cooperative purchase plans when the best interests of the City would be served thereby.
To declare vendors who default on their quotations irresponsible bidders and to disqualify them from receiving any business from the City for a stated period of time.
To authorize the Finance Department, consistent with this chapter, and with the approval of the City Manager to adopt operational procedures relating to the execution of cost effective procurement for the City of supplies and services.
The City Manager, with the concurrence of the Director of Finance, shall implement any necessary rules respecting requisitions and purchase orders.
[Amended 2-6-2017 by Ord. No. 17-001]
Purchases and contracts under $15,000. The City Manager, subject to budgetary appropriations, is authorized to make purchases and contracts in an amount not to exceed $15,000 without further approval of the City Council. Such purchases or contracts shall be made consistent with the authority elsewhere granted the City Manager in this chapter.
Sale of personal property valued at under $1,000. Personal property not exceeding $1,000 in value may be sold for cash by the City Manager after receiving competitive quotations therefor, for the best price obtainable, or may be traded to the vendor of new equipment replacing it. Sale of personal property may be made via online auction. City Council shall approve the sale of personal property in excess of $1,000.
All purchases of, and all contracts for acquisition or delivery of, durable goods, equipment, replacement parts and components, consumable tools or commodities, fuel materials, supplies and consumer items, and supplies, and all sales of personal property which may have become obsolete or unusable, shall, except as specifically provided herein, be based upon competitive bids as provided in Subsection B hereof and administrative regulations issued by the City Manager implementing the same, or, within the limitations hereinafter stated, shall be based upon alternative price quotation procedures as provided in Subsection C hereof.
When competitive bids are so obtained, the sale or purchase shall be approved by the City Council and sealed bids shall be obtained in accordance with the detailed procedures established by this chapter. An exception may be made where the Council shall determine by a two-thirds majority vote that the public interest will be best served by joint purchase with, or purchase from, another unit of government. No sale or purchase shall be divided for the purpose of circumventing the limitation established by this chapter. The City Council may authorize the making of public improvements or the performance of any City work without need of competitive bidding.
Purchases shall be made from the lowest qualified bidder meeting specifications, unless the City Council shall determine that the public interest will be better served by accepting a higher bid. Sales shall be made to the bidder whose bid is most advantageous to the City. In any case where a bid other than the lowest is accepted, the City Council shall set forth its reason or reasons therefor in its motion or resolution accepting such bid. City Council shall not set forth as its reason local preference, except as provided in § 114-13C. The City Council shall have the right to reject all bids.
In case no sealed bids are received or all bids are rejected, the Manager may order that further bids be solicited or, with specific authorization of City Council, purchase the materials, supplies, equipment or services concerned in the open market, or, if practicable, secure the performance of services concerned by an appropriate officer or department of the City.
Professional service contracts shall be authorized and regulated under certain guidelines to be established by the City Manager and maintained in the office of the Clerk/Treasurer. Nothing in the professional service contract guidelines shall be taken to authorize cost-plus or percentage contracts for professional services.
Any expenditure for supplies, materials, equipment, construction or maintenance contracts obligating the City, where the amount of the City's obligation is in excess of $15,000, shall be governed by the following, except as otherwise stated in this chapter.
[Amended 2-6-2017 by Ord. No. 17-001]
Such expenditure shall be made the subject of a written contract. A purchase order shall be a sufficient written contract only in cases where the expenditure is in the usual and ordinary course of the City's affairs, and in no case shall it be sufficient for the construction of public works or the contracting for supplies, equipment or services over any period of time where the quality of the goods or materials or the scope of the services bargained for is not wholly standardized.
Notice inviting competitive bids shall be solicited through traditional sealed bid procedure, or alternative means, including but not limited to e-publishing and electronic submission or reverse auction methods, providing the method used preserves the integrity of the competitive bid process and in accordance with the guidelines established by the City Manager and approved by City Council. Such notice shall either explain where to get information, or provide information, regarding the specification or the items to be purchased. The notice shall state the bid security required the bond or other security to be required by the contract, time limits, the place of filing bids, the time of opening and other conditions of award. The notice shall also state that the right is reserved to reject any and all bids.
The Finance Department shall also solicit bids from a reasonable number of such qualified prospective bidders as are known to him or her by sending each a copy of the notice requesting bids.
Unless prescribed by the City Council, the City Manager shall prescribe the amount of any security to be deposited with any bid, which deposit shall be in the form of a certified or cashier's check or bond written by a surety company authorized to do business in the state. The amount of such security shall be expressed in terms of a percentage of the bid submitted. Unless fixed by the City Council, the City Manager shall fix the amount of the performance bond and, in the case of construction contracts, the amount of the labor and material bond to be required of the successful bidders.
Bids shall be opened in public, at the time and place designated in the notice requesting bids, in the presence of the Clerk/Treasurer, a representative of the Finance Department and, when possible, the head of the department most closely concerned with the subject of the contract. The bids shall thereupon be carefully examined and tabulated and reported to the City Council with the recommendation of the City Manager at the earliest possible scheduled City Council meeting unless the City Manager rejects all bids. After tabulation, all bids may be inspected by the competing bidders.
When such bids are submitted to the City Council, if City Council shall find any of the bids to be satisfactory, it shall award the contract to the qualified bidder submitting the low cost bid and shall authorize execution of the contract by the successful bidder and the filing of any bonds which may have been required, which bonds shall first be approved by the City Attorney as to form and content. Such award may be by motion, resolution or ordinance. City Council retains any other rights provided for in this chapter in the awarding or rejecting of bids.
At the time the contract is executed, the contractor shall file a bond, if required in the bid request, executed by a surety company authorized to do business in Michigan, in favor of the City, conditioned upon the performance of said contract, and further conditioned upon payment of all laborers, mechanics, subcontractors and material men, as well as all just debts, dues and demands incurred in the performance of such work. The contractor shall, for all contracts other than for materials, supplies and equipment, also file evidence of public liability insurance naming the City as an additional insured in an amount satisfactory to the City Attorney, and agree to save the City harmless from loss or damage caused to any person or property by reason of the contractor's negligence.
Purchases of supplies, materials or equipment, the cost of which is $15,000 or less, may be made in the open market, but such purchases shall, where practicable, be based on at least three competitive bids or quotes and shall be awarded to the lowest qualified bidder. The Finance Department may solicit bids or quotes by the most efficient method. A record shall be kept of all open market orders and the bids or quotes submitted thereon, which records shall be available for public inspection. Any or all bids or quotes may be rejected. Purchases costing $15,000 or less may be made without the prior approval of the City Council under the authority granted the City Manager in this chapter.
[Amended 2-6-2017 by Ord. No. 17-001]
The responsibility for the inspection and acceptance of all materials, supplies and equipment shall rest with the ordering department.
The City Manager shall not have the authority to increase the amount of an awarded contract approved by Council.
A contract may be awarded without competition when the City Manager determines in writing, after he or she or the Finance Department has conducted a good faith review of available sources, that there is only one source for the required supply, service or construction item. The Finance Department or other appropriate designee of the City Manager shall conduct negotiations, as appropriate and under the supervision of the City Manager, as to price, delivery and terms. A record of sole source procurement shall be maintained as a public record and shall list each contractor's name, the amount and type of each contract, a listing of the items procured under each contract and the date of the contract.
In case of an actual emergency, any officer or department head may make direct purchase of materials, supplies, equipment or services, where the immediate procurement thereof is essential to the conduct of his or her office or department and the delay caused by following established purchasing procedures would vitally affect the public health, safety or welfare, provided that a purchase order therefor shall be filed with and approved by the City Manager as to the existence of the emergency and shall be likewise approved by the Director of Finance as to the sufficiency of funds for such purchase, and provided, further, that the City Manager shall advise Council at its next regular meeting after the emergency purchase of the circumstances for and terms of said procurement.
All departmental petty cash funds shall be authorized and approved by the City Manager. The City Manager shall establish, with the concurrence of the Director of Finance, a policy and guidelines for the administration of a departmental petty cash fund. Purchases from petty cash shall not individually exceed $100. Departmental petty cash funds shall be reconciled with the City.
After reasonable notice to the business involved and reasonable opportunity for that business to be heard, the City Manager, after consulting with the City Attorney, is authorized to debar a business for cause from consideration for award of contracts. The debarment shall be for a period of not more than two years. The causes for debarment include:
A violation of contract provisions, as set forth herein, of a character which is regarded by the City Manager to be so serious as to justify debarment action, such as:
Deliberate failure, without good cause, to perform in accordance with the specifications or within the time limit provided in the contract; or
A recent record of failure to perform or of unsatisfactory performance in accordance with the terms of one or more contracts, provided that failure to perform or unsatisfactory performance caused by acts beyond the control of the contractor shall not be considered to be a basis for debarment.
A violation of the provisions of this chapter or any other City policy, regulation or law.
The City Manager shall issue a written decision to debar. The decision shall state the reasons for the action taken and inform the debarred business of its rights concerning administrative or judicial review. A copy of the decision shall be mailed or otherwise furnished upon the rendering of a decision by the City Manager to the debarred business. A decision to debar shall be final and conclusive, unless the debarred business, within 10 days after receipt of the decision, takes an appeal to the City Council or commences a timely action in court in accordance with applicable law.
Any actual or prospective bidder, offeror or contractor who is aggrieved in connection with the solicitation or award of a contract may protest to the City Council. Protestors are directed to seek resolution of their complaints initially with the City Manager. A protest with respect to an invitation for bids or request for proposals shall be submitted in writing prior to the opening of bids or the closing date of proposals, unless the aggrieved business did not know and should not have known of the facts giving rise to such protest prior to bid opening or the closing date for proposals. The protest shall be submitted within 10 days after such aggrieved business knows or should have known of the facts giving rise thereto.
In the event of a timely protest under this section, the Finance Department shall not proceed further with the solicitation or award of the contract until all administrative and judicial remedies have been exhausted or until the City Council makes a determination on the record that the award of a contract without delay is necessary to protect a substantial interest of the City.
[Amended 2-6-2017 by Ord. No. 17-001]
For any contract that is subject to one or more federal, state or municipal public policy requirements, whether or not such contract is being funded in whole or in part by assistance from a federal or state agency, the Finance Department shall include contract provisions giving the contractor notice of these requirements, and, where appropriate, shall include in those contract provisions the requirement that the contractor give a similar notice to all of its subcontractors.
Construction contracts with the City shall include contract provisions giving the contractor notice of any labor standards or policies enacted by the City Council.
The City will comply with the procurement requirements of 2 CFR 200 – Uniform Grant Guidance, or its successor, when procuring items to be funded in part or whole with federal funding sources.
The City Manager and the Finance Department shall take affirmative steps to assure that local businesses are utilized when possible as sources of supplies, equipment, services and construction items.
Affirmative steps to be taken shall include:
Including qualified local businesses on solicitation lists;
Assuring that local businesses are solicited whenever they are potential sources;
When economically feasible, dividing total requirements into smaller tasks or quantities so as to permit maximum participation;
Where the requirements permit, establishing delivery schedules which will encourage local business participation.
Preference shall be given to local businesses in awarding contracts if the lowest responsible bids are for the same amount and each bidder is equally qualified.
The Finance Department shall keep a record of all purchases of materials, supplies, equipment and services, and of all bids and the manner in which such bids were procured, which it shall forward to the Clerk/Treasurer when each respective material or supply is purchased or service is provided. All such records shall be public.
All procurement records shall be retained and disposed of by the City in accordance with records retention guidelines and schedules established by the Clerk/Treasurer.
It shall be unethical for any City employee to participate directly or indirectly in a procurement contract, except as provided in Act 317 of the Public Acts of 1968, as amended.
Editor's Note: See MCLA § 15.321 et seq.
It shall be unethical for any person to offer, give or agree to give any City employee or officer or former City employee or officer, or for any City employee or officer or former City employee or officer to solicit, demand, accept or agree to accept from another person a gratuity or an offer of employment in connection with any decision, approval, disapproval, recommendation or preparation of any part of a program requirement or a purchase request, influencing the content of any specification or procurement standard, rendering of advice, investigating or auditing, or in any other advisory capacity in any proceeding or application, request for ruling determination, claim or controversy, or other particular matter, pertaining to any program requirement, contract or subcontract, or to any solicitation or proposal therefore.
The prohibition against gratuities prescribed in this section shall be conspicuously set forth in every contract and solicitation therefor.
The City Manager may impose sanctions on a City employee for violations of this section consistent with governing employee contract provisions, if applicable.
The Mayor and members of Council recognize that high moral and ethical standards among City officials are essential to the proper conduct of City affairs and the proper management of City resources. Thus, to promote and strengthen faith and confidence of the people of the City in their governing body, the Mayor and members of Council shall strictly abide by the following provisions:
The Mayor and members of Council shall comply with the City's policies and procedures for reimbursement of expenses. The Mayor and members of Council when seeking reimbursement shall, at a minimum, provide a receipt and indicate the date and purpose of the expense.
The Mayor and members of Council shall not, at any time, seek payment or reimbursement for the traveling expenses of spouses, friends, family members or other third parties traveling with the Mayor or member of Council on City business.
The Mayor, members of Council and all City employees shall not, at any time or on any occasion, pay for or seek reimbursement for alcoholic beverages with City funds.
The Mayor and members of Council shall not accept gifts of membership in fraternal or social organizations.
The City of Monroe shall not lease or buy a motorized vehicle for the Mayor or for any member of Council. However, the Mayor and City Council shall be entitled to mileage reimbursement at the same rate as other City employees.
The Mayor and members of Council shall not accept anything of value which may tend to influence them in the discharge of their duties.