Editor's Note — Ord. no. 1158 §1, adopted March 19,
2012, repealed ch. 150 and enacted new provisions set out herein.
Former ch. 150 derived from R.O. 2006 §§150.010 —
150.150; ord. no. 1018 §§2, 4 — 16, 9-5-2006.
[Ord. No. 1158 §§1 —
2, 3-19-2012]
A.
The
purpose of this Chapter is to establish policies and procedures to
ensure that necessary goods and services are obtained at the highest
quality and for the most economical price, while also ensuring compliance
with all applicable laws and regulations, and to maintain public confidence
in the City's stewardship of public funds. The basic goals of the
City's purchasing policy are:
1.
To comply with the legal requirements of public purchasing.
2.
To assure vendors that impartial and equal treatment will be afforded
all who wish to do business with the City.
3.
To receive maximum value for each public dollar spent.
4.
To provide City departments required goods and services at the time
and place needed in the proper quantity and quality.
5.
To purchase only goods and services for which funds have been approved
and not previously encumbered.
[Ord. No. 1158 §§1 —
2, 3-19-2012]
As used in this Chapter, the following terms shall have the
meanings ascribed to them:
Includes all telephone, utilities, gasoline, uniform services,
cleaning contracts, rental, repair or maintenance of equipment, machinery
and other City-owned property. This category, also, includes personal
services of a person, agency or group of a non-technical or professional
nature.
The person that is the head of a major function of the City
and reports directly to the Purchasing Agent. Positions in this classification
include: City Clerk, Treasurer, Public Works Superintendent, Building
Commissioner, Municipal Judge, and Police Chief.
The amounts published in the Missouri Register pursuant to
Section 537.610, RSMo., which are the inflation-adjusted amounts of
the absolute statutory waivers of sovereign immunity in Sections 537.600
and 537.610, RSMo.
Those businesses located within the County boundaries of
Lincoln County, Missouri.
Those businesses possessing a City of Troy business license,
or where a license is not required, a business located within the
City limits of Troy, Missouri.
[Ord. No. 1158 §§1 —
2, 3-19-2012]
The Mayor shall be the designated Purchasing Agent of the City
and shall ensure that all purchases are made in accordance with the
purchasing policies and procedures approved by the Board of Aldermen.
In the Mayor's capacity as Purchasing Agent, the Mayor or his or her
designee shall oversee the preparation of all bid specifications for
goods and services.
[Ord. No. 1158 §§1 —
2, 3-19-2012]
A.
Positions Authorized To Make Purchases. Department heads
are authorized to make purchases in accordance with this Chapter.
In the event a department head is unavailable to approve a purchase,
the Mayor shall have the authority to act in their absence.
B.
Municipal Contract Requirements. Section 432.070, RSMo.,
sets forth the requirements for municipal contracts, which must be:
1.
Within the scope of the City's powers;
2.
Made upon consideration wholly to be performed after the making of
the contract;
3.
In writing and dated when made; and
4.
Subscribed by the parties or their authorized agents.
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It is the objective of the City that all City purchases satisfy
all the foregoing requirements wherever practicable; provided that
no purchase of two thousand five hundred dollars ($2,500.00) or greater
shall be approved unless each of the foregoing requirements have been
satisfied.
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C.
Work Authorization Affidavits. Section 285.530, RSMo., requires
the City to condition the award of any contracts in excess of five
thousand dollars ($5,000.00) on the receipt of an affidavit affirming
that the business entity contracting with the City:
1.
Has enrolled in a Federal work authorization program, such as E-Verify;
and
2.
It does not knowingly employ any unauthorized aliens to perform any
contracted services with the City.
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For business entities with a continuing relationship with the
City, the affidavits required by this Subsection are required on an
annual basis. In the event that the business entity is requested to
provide certain information to the State's Attorney General's office
and the business entity fails to do so, the Attorney General's office
may require the City to suspend the business entity's business licenses,
permits, or exemptions.
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D.
Local Preference. It is the objective of the City to purchase
products and/or services at the best prices. Whenever possible, Troy
vendors and/or Lincoln County vendors should be contacted.
E.
National Preference. The City desires to encourage the purchase
and use of products manufactured, assembled, or produced in the United
States of America, if the quality and price are comparable with other
goods in accordance with Section 34.353, RSMo.
F.
Budgetary Limits. Budgetary limits are to be strictly observed.
Written authorization must be obtained from the Board of Aldermen
if the purchase exceeds the approved budget for that line item.
G.
Best Price. Purchases shall be awarded to the vendor or
provider that is deemed to be in the best interest of the City, not
necessarily the lowest price. The following criteria will determine
what is in the best interests of the City:
1.
Price.
2.
The level of quality of the service or product offered.
3.
The demonstrated ability of the vendor or provider to provide the
service or product.
4.
Timeliness of delivery.
5.
Level of fit.
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When the purchase is to be made from a vendor other than the
low bidder, the reasons shall be documented by the department making
the purchase and preapproval of the purchase shall be obtained from
the Mayor.
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H.
Quality Buying. Vendor selection shall also include consideration
of the quality of the goods or service. Quality is just as important
as price and it is the responsibility of the Purchasing Department
to secure the best quality for the purpose intended. The purchase
of goods or services that will meet but not exceed the requirements
for which they are intended defines quality buying. Quality buying
considerations include, but are not limited to, durability, availability,
ease of installation, frequency of repair, cost and availability of
parts needed for repair, efficiency, and life cycle costs. It is the
responsibility of each department to become familiar enough with available
equipment to determine the appropriate quality required to develop
specifications and bid analysis.
I.
Sales Tax Exemption. The City is exempt from paying all
local and State sales tax. The City Treasurer will provide the exemption
document to any vendor upon request.
J.
Shipping. Shipping, delivery, transportation, installation,
and similar costs are to be included in determining the best price.
Specifications should require FOB Troy, Missouri. It is important
to use this "FOB Troy" designation because it requires the vendor
to be responsible for any damages incurred in shipping or the delivery
of defective goods.
K.
Planning. Planning of purchases should be completed by each
department on a short-term and long-term basis. Small orders and last
minute purchases should be minimized to the extent possible to permit
each department to purchase its goods and services in larger quantities.
Large quantity orders typically encourage the maximum discount possible
and have the effect of reducing overall shipping costs, and therefore
improving pricing. Planning will also reduce the time expended on
picking up, receiving, and documenting purchases, which improves efficiency,
improves fiscal control, and optimizes cash flow.
L.
Vendor Selection. Vendors and suppliers of the City shall
be carefully selected. City departments should assure themselves that
the vendor has the proper license, is an authorized dealer for the
given product, or is a qualified provider of the services sought.
[Ord. No. 1158 §§1 —
2, 3-19-2012]
A.
Minimal Acceptable Procedures. The Board of Aldermen has
established policies regulating the degree of formality to be followed
in the purchase of goods and services, depending on the cost of the
items to be purchased. The purchasing procedures outlined in this
Section are minimal acceptable procedures. At the discretion of the
Board of Aldermen, the requirements can be exceeded if it is deemed
to be in the best interest of the City to do so.
B.
Splitting Purchases. The splitting of purchases into smaller
orders to avoid these requirements is prohibited and subject to disciplinary
action.
C.
Budgeted Purchases Up To $2,500.00. Department heads, or
employees selected by a department head, are authorized to issue a
purchase order directly to vendors to obtain the good or service in
the most expedient way possible with due regard for competitive prices
and quality. It is the responsibility, however, of each department
head to ensure control over this segment of the purchasing process.
Department heads should designate employees who will be allowed to
make purchases and to provide internal control procedures to ensure
that all purchases are for legitimate public purposes, that monthly
statements from vendors are reconciled, and all purchases accounted
for.
D.
Budgeted Purchases From $2,501.00 To $10,000.00. Purchases
must be approved by the department head prior to placing an order
with a vendor. Before submitting a purchase order, department heads
must obtain three (3) legitimate oral or e-mail quotations. Oral or
e-mail quotations will be reported with an approved quotation form.
The purchase order along with the quotation form should then be forwarded
to City Treasurer. If a department head is unable to secure three
(3) quotations, a notation explaining why less than three (3) qualified
vendors were available should be made on the quotation form, and attached
to the purchase order. When seeking quotations, the practice of "auctioneering"
should be avoided by refusing to disclose to a vendor the price quoted
by competitors. It is understood that in rare circumstances or in
an emergency situation, favored brands will be given special consideration
and the City may use preferred vendors based on past experience.
E.
Budgeted Purchases From $10,001.00 To $25,000.00. All purchases
of ten thousand one dollars ($10,001.00) or more require the Mayor's
prior approval. Prior to processing a purchase order, a department
head must obtain three (3) legitimate written quotations. A memorandum
requesting approval of the purchase, accompanied by a tabulation of
the quotes obtained, and an explanation if less than three (3) quotations
were received, should be submitted to the Mayor's office. It is acceptable
to scan, e-mail, fax, or hand carry the quotation form to qualified
vendors and obtain the three (3) quotes, complete the summary, and
submit a purchase order in a single day.
F.
Purchases $25,001.00 And Over — Formal Bid.
1.
Department heads anticipating the purchase of budgeted goods or services
of twenty-five thousand one dollars ($25,001.00) or more in value
should prepare specifications based upon standards appropriate to
meet the City's needs. Specifications should be forwarded to the Mayor
or the Mayor's designee for review, comment, and approval. The Mayor
will then authorize the preparation of the bid package, public notices,
and advertisements to meet the City's purchasing policy. The department
head should submit a list of qualified vendors along with the specifications.
A bid packet containing an invitation to bid, specifications, and
general bid documents will be sent to these vendors, as well as those
that respond to the legal notice.
2.
Formal bids will be advertised in the newspaper for at least ten
(10) business days prior to bid opening. After the bids are opened
in public, the department head will review them, prepare a written
tabulation of all bids, draft a memorandum with a recommendation for
the bid award, and submit the information to the Mayor's office for
submission to the Board of Aldermen for approval at a public meeting.
3.
The recommendation to award a contract will normally be made to the
lowest bidder meeting specifications; however, there may be instances
when the lowest bid that has met specifications is not from an acceptable
bidder. When such a situation arises, it is incumbent upon the department
head to document the reasons why the low bidder should be disqualified.
These reasons may include unsatisfactory past performance or lack
of capacity to complete the work.
G.
Unbudgeted Purchases. Unbudgeted purchases and/or changes
in the intent of the budgeted line item require prior approval of
the Board of Aldermen and must follow all of the provisions of this
Section.
[Ord. No. 1158 §§1 —
2, 3-19-2012]
A.
Notice Inviting Formal Competitive Bids.
1.
Notice inviting bids shall be provided in the manner and utilizing
such media as the Mayor or his or her designee deems most appropriate
to the subject matter of the bid and the applicable time line available
with the objective of encouraging fair and unbiased competition. The
notice shall be designed to secure a reasonable distribution and a
competitive bidding process and may include direct mail, electronic
mail, on-line listing services, along with newspaper advertising,
and/or such other means as may be deemed appropriate. In addition
to any other solicitation, notices posted on public bulletin boards
in City Hall shall also advertise all purchases, leases, or sales.
2.
Content and timing of notices. The notice inviting
competitive bids shall be advertised at least ten (10) business days
preceding the last day for receipt of bids or proposals and shall
include a general description of the products or services to be leased
or purchased and state where bid forms and specifications may be obtained
and the time and place for submission and opening of bids.
B.
Bid Security Deposits Or Surety Bid Bonds. When deemed necessary,
bid security deposits or surety bid bonds, or both, shall be prescribed
in the notice of invitation for bids.
1.
Returned bid security deposit. An unsuccessful bidder
who stands ready to perform according to the terms of its bid shall
be entitled to the return of its bid surety deposit.
2.
Enforcement of surety bid bond. The City shall
seek enforcement of a surety bid bond according to its terms.
3.
Surety bid bonds Federal Register listing requirement. All surety bid bonds must be with companies listed in the Department
of the Treasury, Federal Register as surety companies acceptable on
Federal bonds.
C.
Performance, Labor, And Material Payment Bonds.
1.
Where the nature of the contract is such that the Mayor or the City
Attorney deems a performance bond necessary, or where the contract
is for public works and requires compliance with Section 107.170,
RSMo., the notice of invitation for bids shall specify the amount
of bond that is required. The notice shall also specify that any bid
submitted pursuant to said solicitation would be presumed to include
the cost of the required bond.
2.
All surety performance bonds and surety labor and material bonds
must be with companies listed in the Department of the Treasury, Federal
Register, as surety companies acceptable on Federal bonds.
D.
Procedure For Receiving And Opening Bids. The following
applies to bids submitted under the formal competitive bid procedure:
1.
Sealed and identified. All bids shall be submitted
in a sealed envelope to the City Clerk and shall be identified as
bids on the envelope.
2.
Bid opening. Bids shall be opened and read aloud
publicly by a duly authorized representative in the presence of the
Clerk of the City or the duly authorized representative of the Clerk
in the City Hall, in the particular room, and on the day and at the
time stated in the public notices, except that bids for construction
projects undertaken pursuant to this policy may, upon proper notice,
be opened in the office of the Public Works Superintendent.
3.
Bids recorded. The City Clerk, or his or her duly
authorized representative, shall record in writing the bids opened
and read by a duly authorized representative.
4.
Bid evaluation and recommendations. The Mayor,
or his or her duly authorized representative shall evaluate the bids
submitted and refer his or her recommendations to the appropriate
department head who shall within the shortest practicable time confirm
the recommended award or submit objections and suggestions to the
Mayor. Such objections and suggestions shall include specific reference
to the manner in which the department head believes an alternate bid
complies with the provisions of Section 150.080(11)(e) of this Chapter.
5.
Rejection of bids. The Mayor shall have the authority
to reject, as often as he or she deems necessary, all bids, parts
of all bids or all bids for any one (1) or more supplies or contractual
services included in the proposed contract, for failure to comply
with the requirements of the invitation for bids or when the public
interest will be served thereby, and require the solicitation of new
bids.
E.
Factors For Consideration When Determining Lowest And Best Bidder. The following factors shall be considered in determining the bidder
that provides the best products and/or services that are available
for the lowest price:
1.
Cost and future maintenance. The point of purchase
cost of the product or service, the anticipated cost of maintenance
or service (including applicable warranties), the ability of the bidder
to provide future maintenance and service, the longevity of the product
or service, and the cost of disposal.
2.
Ability to perform. The ability, capacity, skill,
or financial resources of the bidder to perform the contract or provide
the service required.
3.
Timely performance. Whether the bidder can perform
the contract or provide the service promptly or within the time specified
without delay or interference.
4.
Character and reputation. The character, integrity,
reputation, judgment, experience, and efficiency of the bidder.
5.
Quality of prior performance. The quality of the
bidder's performance of previous contracts or services.
6.
Compliance with laws. The previous and existing
compliance by the bidder with laws and ordinances relating to the
contract or service.
7.
Quality and availability. The quality, availability,
and adaptability of the supplies or contractual services to the particular
use required.
8.
Conditions on bid. The number and scope of conditions
attached to the bid. Bid responses containing conditions are not favored.
9.
Compliance with bid specifications. Whether the
bid as submitted fully complies with the minimum requirements of the
bid specifications.
10.
Social responsibility. The socially responsible
nature of the product or service that includes, but is not limited
to, products or services that create meaningful work, encourage diversity;
include women-owned and minority-owned enterprises, provide fair wages,
or otherwise promote social equity.
11.
Local preference. A bidder satisfying the preference indicated in Subsection 150.040(D) of this Chapter.
[Ord. No. 1158 §§1 —
2, 3-19-2012]
A.
Contents. A person desiring to order a supply, equipment
or service shall initiate the procedure by filling out a purchase
order requisition, which shall include:
B.
Effect Of Purchase Order. A purchase order is a contract
between the City and a vendor. The contract is not binding until the
vendor accepts it. The issuance of purchase orders by unauthorized
individuals will not be recognized by the City and payment of these
obligations will not be approved. Unauthorized purchases are classified
as personal expenses.
[Ord. No. 1158 §§1 —
2, 3-19-2012]
A.
Occasionally,
the City may need to purchase goods or services under circumstances
that do not clearly fit the City's procurement process, or for which
normal competitive procedures do not apply. The following guidelines
are provided with regard to making such purchases:
1.
Sole source vendors. In the event that there is
only one (1) vendor capable of providing a particular good or service,
the competitive procedures outlined in this manual may be waived by
the Mayor. A department head should document why only one (1) company
or individual is capable of providing the goods or services required
whenever it is determined that goods or services must be purchased
from a "sole source vendor". The documentation should be attached
to the purchase order. The Mayor must approve all sole source purchases
over two thousand five hundred dollars ($2,500.00).
2.
Cooperative purchasing. Department directors are
encouraged to use cooperative purchasing programs sponsored by the
State of Missouri, the applicable regional council of governments,
or other municipal procurement cooperative prior to making any large
purchase. Cooperative purchasing can prove advantageous to the City
both by relieving department heads of the paperwork necessary to document
the purchase and by taking advantage of large quantity purchases.
Purchases made through these programs have met the requirements of
competitive shopping and require only sufficient information to show
the purchase is from such a program and the applicable referenced
purchase price. However, it would be prudent to solicit bids and quotes
from other vendors, as well, since this route is not always the least
expensive.
3.
Blanket purchase contracts. Blanket purchase contracts
are long-term contracts for goods or services awarded after receiving
competitive bids. The contract remains open for a period of up to
one (1) year to purchase the goods or services specified on an "as
needed" basis. Examples of where these types of contracts would be
appropriate are emergency plumbing services, construction materials
such as rock, trees, and other landscaping materials, automotive supplies,
hardware, and office supplies. These items are ones that are frequently
or routinely used by the City and for which the initiation of competitive
shopping each time the goods or services are required would be cumbersome
and inefficient.
4.
Emergency purchases. The bid procedures established
in this Chapter may be waived under emergency conditions when a delay
may threaten the basic mission of a department. True emergencies are
rare. Occasionally equipment will require emergency repairs or other
circumstances will necessitate purchasing which cannot await compliance
with these regulations. In no case under emergency purchases shall
any contract obligating the City in total to an amount in excess of
five thousand dollars ($5,000.00) be entered into without prior approval
of the Mayor, or in the event the Mayor is out of the City, the Mayor
Pro Tem. All such emergency purchases shall be reported in writing
to the Mayor and Board of Aldermen as soon as practical and any necessary
budget amendments provided for processing at the next Board of Aldermen
meeting.
5.
Petty cash accounts. There is often a need for immediate
availability of funds. Petty cash funds may be issued to each department
in the amount of one hundred dollars ($100.00) or less. Petty cash
receipts are to be completed by the person responsible for the fund
in each department; these should include the amount, description of
item, budget account number, and signatures of the persons receiving
the funds and the person issuing the funds. Petty cash funds will
be replenished at least monthly.
6.
Use of credit card. Credit cards will be checked
out from the City Clerk on a case-by-case basis. Purchasing cards
will be issued by the Treasurer. Employees utilizing these cards will
have the same purchasing authorization and limitations as their approval
level on purchase orders. It will be the responsibility of the person
utilizing the card to justify all purchases and provide proper documentation
on the use of the card.
7.
Purchase of used equipment. New equipment is to
be preferred over used equipment. However, there are situations where
the purchase of used equipment should be considered. These include:
a.
When price is of prime importance and the difference in cost between
new and used equipment is significant.
b.
Where equipment will be used infrequently, for a limited time, for
training, or for auxiliary operations.
c.
When faster delivery is essential.
d.
The purchase of used equipment requires careful shopping and the
requisitioning department should make every effort to secure a minimum
warranty or guarantee that the equipment will perform as needed and
that service or replacement parts are reasonably available.
8.
Change orders. Change orders are amendments to contracts
for the purchase of goods or services that are made after the contract
has been awarded. Change orders result from the discovery of unforeseen
conditions. Change orders may not be used to overdraw a budgetary
account, to avoid the City's competitive bidding process, or to materially
alter the purpose of the original bid or contract. The Board of Aldermen
must approve all change orders.
9.
Travel and training. Travel and training shall be
in accordance with the travel policy and as budgeted. Mayor approval
is necessary for unlisted items or changes within the budgeted amount.
10.
General contract specifications.
a.
Sample contracts. Sample contracts for construction,
goods, services, and equipment shall be on file in the City offices
for copying and review in accordance with the Missouri Sunshine Law.
b.
Insurance. Contractors must provide written proof
of insurance coverage required by this Subsection before contract
will be signed by the City. Contractors shall obtain and keep in force
for the duration of any contract with the City the following types
and amounts of insurance:
(1)
Workers' Compensation. Worker's Compensation
insurance at statutory limits and employer's liability insurance with
limits of at least one million dollars ($1,000,000.00), which may
include an umbrella policy, if applicable.
(2)
General liability, automobile liability, and property
damage. Commercial general liability insurance with coverage
of not less than the then-current inflation adjusted waiver amounts
for claims (a) arising out of a single accident or occurrence; and
(b) for any one (1) person in a single accident or occurrence. The
inflation adjusted waiver amounts may be found at http://insurance.mo.gov/industry/sovimmunity.php.
(3)
Reduction or waiver. Insurance requirements
may be waived or reduced by the Mayor after seeking the advice of
the City Attorney.
11.
Architects/engineers/surveyors.
b.
It is the policy of the State of Missouri and the City of Troy to
negotiate contracts for the services addressed in this Subsection
on the basis of demonstrated competence and qualifications for the
type of services rendered at fair and reasonable prices. Department
heads shall encourage firms engaged in the type of services enumerated
in this Subsection to annually submit a statement of qualifications
and performance date to the City. Department heads shall also seek
a request for qualifications ("RFQ") from firms interested in providing
the type of services enumerated in this Subsection when the estimated
cost of such services for a particular project is expected to be twenty-five
thousand dollars ($25,000.00) or more.
c.
Firms or individuals offering the types of services enumerated in
this Subsection shall submit pricing only in a separate, sealed envelope
accompanying the annual statement or RFQ response.
d.
Whenever the City requires the services enumerated in this Subsection,
the requesting department head and two (2) other staff members shall
evaluate the current statements of qualifications and performance
data of any statements submitted by firms responding to an RFQ for
the proposed project. In evaluating the qualification of firms to
be selected in accordance with this Subsection, the following criteria
shall apply:
(1)
The specialized experience and technical competence of the firm
with respect to the type of services required;
(2)
The capacity and capability of the firm to perform the work
in question;
(3)
The past record of performance of the firm with respect to such
factors as control of costs, quality of work, and ability to meet
schedules; and
(4)
The firm's proximity to and familiarity with the area in which
the project is located.
e.
Using the following scoring system, the department head and two (2)
staff members shall select the firm having the highest points. In
the event of a tie, the firm having the higher most highly qualified
score shall prevail.
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Firm Name
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Experience and Technical Competence
(Max. 30 points)
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Capacity and Capability
(Max. 30 points)
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Past Record of Performance
(Max. 30 points)
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Firm's Proximity and Familiarity With Project Area
(Max. 10 points)
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12.
Other professional services. Normal competitive procedures cannot be utilized in securing professional services such as appraisers, attorneys, certified public accountants, planners, and other professionals not listed in Subsection (11)(d) above who, in keeping with the standards of their discipline, will not enter into a competitive bidding process.
a.
A request for proposal (RFP) can be prepared much the same way as
specifications, including requirements and minimum standards for the
services to be provided. 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 how they can meet the City's needs. In securing
professional services, it is the primary goal of the City to obtain
the services from a provider who has a proven record of providing
the professional services required.
b.
A contract will be negotiated with the professional deemed to best
meet the City's needs. If an agreement on the cost and conditions
cannot be reached, then these negotiations will be terminated and
negotiations will commence with the next most qualified professional.
c.
The Mayor is authorized to approve contracts for professional services
under five thousand dollars ($5,000.00). A memorandum setting forth
a department head's recommendation should accompany a purchase order
for such services. For contracts exceeding five thousand dollars ($5,000.00),
Board of Aldermen approval is required.
d.
In the case where a professional consulting firm or individual is
on retainer at an hourly rate for services rendered, budgetary appropriations
and contracts must be approved by the Board of Aldermen on an annual
basis.
13.
Public works contracts.
a.
Payment and performance bonds. Contracts for public
works having an estimated cost of twenty-five thousand dollars ($25,000.00)
or greater shall include provisions requiring bonds with good and
sufficient sureties, in an amount sufficient to cover the payment
of any and all materials incorporated, consumed, or used in connection
with the construction of the public works; and all insurance premiums,
both for compensation and for all other kinds of insurance for such
work; and for all labor performed in such work whether by a subcontractor
or otherwise.
b.
Prevailing wages. Before advertising for bids for,
or undertaking, the construction of public works through a contractor,
the Mayor shall require the appropriate department head, in conjunction
with the City Attorney if necessary, to make or seek from the Missouri
Department of Labor and Industrial Relations a prevailing wage determination
for the public works. If payment of prevailing wages is required,
such determination shall be attached to and made part of the specifications
for the work to be completed. The Mayor shall also specify the prevailing
wage for the project in the resolution or ordinance authorizing such
work, and also in the invitation for bids.
c.
Missouri laborers requirement. Contracts for public
works shall include a provision requiring the contractor to inquire
as to the applicability of protections for Missouri laborers and laborers
of non-restrictive States during periods of excessive unemployment
as required in Sections 290.550 to 290.580, RSMo., and to ensure compliance
with such requirements if it is determined that they are in effect.
d.
Construction safety training.
(1)
Bid invitations. All invitations to bid on
the City's public works contracts shall include a notice to bidders
that the project is subject to the requirements of Section 292.675,
RSMo., which requires all contractors and subcontractors doing work
on the project to provide a ten (10) hour course in construction safety
and health approved by the Occupational Safety and Health Administration
("OSHA") or a similar program approved by the Missouri Department
of Labor and Industrial Relations that is at least as stringent as
an approved OSHA program. The invitations to bid shall also require
a notice that if on-site employees have not previously completed such
training, the training must be completed within sixty (60) days of
the date work on the project commences. On-site employees found on
the work site without documentation of the required training will
be required to produce such documentation within twenty (20) days.
(2)
Contracts for public works. Contracts for public
works shall require the following provisions:
(a)
A requirement for the contractor to provide a ten (10) hour
OSHA construction safety program for all employees who will be on
site at the project. The construction safety program must include
a course in construction safety and health that is approved by OSHA
or a similar program approved by the Missouri Department of Labor
and Industrial Relations that is at least as stringent as an approved
OSHA program as required by Section 292.675, RSMo.
(b)
If any on-site employees had not previously completed a construction
safety program, the contractor must require those on-site employees
to complete a construction safety program within sixty (60) days after
the date work on the project commences.
(c)
A requirement for the contractor to acknowledge and agree that
any of contractor's employees found on the project site without documentation
of the successful completion of a construction safety program will
be required to produce such documentation within twenty (20) days,
or will be subject to removal from the project.
(d)
A requirement for the contractor to require all of its subcontractors
to comply with the requirements of this Subsection and Section 292.675,
RSMo.
(e)
A notice of penalties for failure to provide construction safety
training in accordance with Section 292.675, RSMo.
14.
Construction management services. If the City determines
that it is necessary to enter into a contract for the provision of
construction management services, the Mayor shall direct the appropriate
department head to select a firm using the requirements of Sections
8.675 to 8.687, RSMo., including specifically Section 8.679, RSMo.
15.
Purchase of insurance coverage.
a.
Group life, Workers' Compensation, liability and property
insurance. Pursuant to Section 376.696, RSMo., the Board of Aldermen shall not enter into a contract for the purchase of these insurances unless such contract is submitted to formal bidding pursuant to Section 150.080 every six (6) years, and the contract is awarded to the lowest or best bidder. Renewals of policies between the six (6) year required submission to formal bidding does not constitute a separate and distinct contract for the time covered by the renewal, but instead shall be treated as an extension of the contract entered into as a result of the most recent required bidding process.
b.
Health insurance. Pursuant to Section 67.150, RSMo., the Board of Aldermen shall not enter into a contract for the purchase of health insurance as a part of the compensation for elected officials and employees of the City unless such contract is submitted to formal bidding pursuant to Section 150.080 every three (3) years, and the contract is awarded to the lowest and best bidder.
16.
Depository of funds. The City's depository of funds
shall only be selected at the Board of Aldermen's first (1st) regular
meetings in the months of January, April, July, or October of each
year as provided in Section 95.355, RSMo. If the Board of Aldermen,
or the Purchasing Agent with the consent of a majority of a quorum
of the Board of Aldermen, determines the necessity to seek a new depository
of the City's funds, the Purchasing Agent shall request an opinion
of the City Attorney with respect to the need to submit the matter
to the formal bidding requirements as may be required by Section 110.030,
RSMo.
B.
Federal Awards. The City may receive funding from the United States
Government, which are commonly known as Federal Awards, in the form
of grants, matching funds for projects, and other forms of funding.
The following guidelines apply to all procurements of goods and services
utilizing any type of Federal Award, unless otherwise modified by
written agreement between the City and the Federal Agency:
[Ord. No. 1319, 3-8-2022]
1.
Purpose. To establish, implement and maintain policy and internal controls that provide reasonable assurance that Federal Awards are being managed in compliance with the Office of Management and Budget (OMB) Uniform Guidance formally known as the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards codified under Code of Federal Regulations (CFR) and/or the Electronic Code of Federal Regulations (eCFR) Title 2, Part 200, and with the terms and conditions of the Federal Award. The City of Troy will follow the Missouri State Statute that relates to Fourth Class Cities and other purchase requirements, and other specific grant requirements or guidance documents published by the Federal Granting Agency as applicable, including any OMB Compliance Supplements. In addition, the City's policies in Chapter 150: Purchasing Procedures shall still apply, with Section 150.080(B) controlling any inconsistent language.
2.
Departments Affected. All departments and divisions within the City receiving Federal Awards are affected by Section 150.080(B) and its provisions shall be followed.
3.
Policy.
a.
General. This policy describes the procedure for the administrative
responsibility of awards received as grants (or grant-like loans such
as low-interest loans provided by the Missouri State Revolving Fund).
The City does not have a centralized grants department and therefore
through designated staff and City officials, solicits and accepts
awards from a variety of organizations for funding City programs and
projects. Awards frequently require close coordination between different
City departments and adherence to strict guidelines and requirements.
The City shall only pursue grant opportunities when it has sufficient
financial and administrative capacity to support, implement and administer
proposed activities and adhere to the requirements of the grant program.
This policy outlines the procedures and departmental roles and responsibilities
to centrally coordinate and track Citywide efforts in grant management
and administration.
(1)
The Department considering a grant shall complete
an evaluation of the regulatory requirements and impacts to staff
resources. Consideration of these impacts should be evaluated with
the benefits to the community before a determination is made to pursue
a particular grant. Financial contributions and personnel resources
shall be identified prior to submitting grant applications. The Department
that is requesting and/or administering the grant award shall be responsible
for maintaining accurate and current information and complying with
the general and specific guidelines and requirements of the grant
award. This will include:
(a)
Being knowledgeable of grant award requirements;
(b)
Ensuring the City complies with said requirements;
(c)
Providing accurate information to the Finance Department
in the preparation of reports and requests for reimbursement of eligible
costs; and
(d)
Maintaining the proper written and electronic documentation
and financial records consistent with said requirements.
(2)
In the event more than one (1) Department is involved
in requesting or administering a grant award, the Departments involved
will agree upon a designated lead Department. The lead Department
will have overall responsibilities for administering the grant award
consistent with this policy.
b.
Internal Controls. The City of Troy will maintain effective
internal control over the Federal Award providing reasonable assurance
that the City is managing the Federal Award in compliance with Federal
Statutes, regulations, and the terms and conditions of the Federal
Award.
(1)
The City will take prompt action when instances
of non-compliance are identified including non-compliance identified
in audit findings.
(2)
The City will take reasonable measures to safeguard
protected personally identifiable information and other information
the Federal awarding agency or pass-through entity designates as sensitive.
c.
Allowable Costs And Cost Certification. To assure that expenditures
are proper and in accordance with the terms and conditions of the
Federal Award and approved project budgets, the annual and final fiscal
reports, or requests for payment under the agreements may include
a certification, signed by the City Administrator. The City will follow
2 CFR § 200.302, Financial Management procedures, in particular
Subpart E, for determining allowable and unallowable costs of the
grant.
d.
Advanced Payments And Reimbursements. Payment methods must minimize
the time elapsing between transfer of funds from the United States
Treasury or the pass-through entity and the disbursement by the City
of Troy whether the payment is made by electronic transfer, or issuance
of checks.
(1)
Advanced payments must be limited to the minimum
amounts needed and be timed to be in accordance with the actual, immediate
cash needs of the City to carry out the purpose of the approved program
or project. Any advanced payments must be consolidated to cover anticipated
cash needs.
(2)
The City shall minimize the time elapsed between
receipt of Federal aid funds and subsequent payment of incurred costs.
(3)
Be necessary and reasonable for the performance
of the Federal award.
(4)
Conform to any limitations or exclusions set forth
in these principles or in the Federal Award as to types or amount
of cost items.
(5)
Be consistent with policies and procedures that
apply uniformly to both Federally financed projects and other activities
of the City.
(6)
Be Accorded Consistent Treatment. A cost may not
be assigned to a Federal Award as a direct cost if any other cost
incurred for the same purpose in like circumstances has been allocated
to the Federal Award as an indirect cost.
(7)
Be determined in accordance with Generally Accepted
Accounting Principles (GAAP).
(8)
Not be included as cost or used to meet cost sharing
or matching requirements of any other Federally financed program in
either the current or a prior period.
(9)
Be adequately documented.
e.
Procurement. When procuring goods and services under a Federal
Award, the City will follow 2 CFR § 200.317, General Procurement
Standards through § 200.327, Contract Provisions or City
of Troy Purchasing Policy, whichever is more restrictive.
(1)
Contracts may be entered into following the adopted
Purchasing Policy for the City of Troy to address administrative,
contractual, or legal remedies in instances where contractors violate
or breach contract terms and provide for such sanctions and penalties
as appropriate.
(2)
The City will verify and document that vendors
are not suspended or debarred from doing business with the Federal
government.
f.
Single Audit Act. The City, as a recipient of Federal funds,
shall adhere to the Federal regulations outlined in 2 CFR § 200.501
as well as all Federal and State Statutes and regulations.
g.
Closure. A project agreement end date will be established in
accordance with 2 CFR § 200.309. Any cost incurred after
the project agreement end date is not eligible for Federal reimbursement.
h.
Code Of Conduct. The purpose of the Code of Conduct is to ensure
the efficient, fair, and professional administration of Federal grant
funds in compliance with 2 CFR § 200.112, 2 CFR § 200.318
and other applicable Federal and State standards, regulations, and
laws.
(1)
The Code of Conduct applies to all elected officials,
employees or agents of the City engaged in the award or administration
of contracts supported by Federal grant funds.
(2)
No elected official, employee or agent of the City
shall participate in the selection, award or administration of a contract
supported by Federal grant funds if a conflict of interest, real or
apparent, would be involved. Such a conflict would arise when any
of the following has a financial or other interest in the firm selected
for award:
(3)
The City of Troy's elected officials, employees
or agents shall neither solicit nor accept gratuities, favors, or
anything of monetary value from contractors, potential contractors,
or subcontractors.
(4)
To the extent permitted by Federal, State, or local
laws or regulations, violation of these standards may cause penalties,
sanctions, or other disciplinary actions to be taken against the City's
elected officials, employees or agents, or the contractors, potential
contractors, subcontractors, or their agents. Any potential conflict
of interest will be disclosed, in writing, to the Federal awarding
agency or pass-through entity in accordance with applicable Federal
awarding agency policy.
4.
Procedures. The purpose of these procedures is to ensure inter-departmental
coordination in the identification of grant opportunities, to ensure
consistency in the management of grants the City receives, and oversight
in management and compliance with the guidelines and restrictions
as required by the grantor.
a.
Grant Application.
(1)
Request To Apply.
(a)
Non-Matching Funds. Prior to submitting an application
for an award (in which the City does not have to provide matching
funds), the Department pursuing the grant award shall obtain the approval
signature of the Department Head, and if required by the application,
the City Administrator or Mayor.
(b)
Matching Funds. Prior to submitting an application
for an award (in which the City will need to provide matching funds),
the Department pursuing the grant award shall obtain the approval
signature of the Department Head, and the City Administrator or Mayor.
If no previous approval has been made by the Board of Aldermen or
if the matching funds have not already been approved in the budget,
then the Department Head shall place the application before the Board
of Aldermen for approval, and/or a budget amendment if necessary.
(2)
Legal Review. If necessary, the responsible Department
will review the grant and grant application with the City Attorney
to identify any potential legal issues that the City should be aware
of.
(3)
Submittal Of Award Application. Once approval or direction is received to pursue the award, the Department charged with the responsibility for implementing the award will prepare and submit the necessary application paperwork; and upon award, seek approval of the Board of Aldermen before accepting such award under Subsection (B)(4)(b) below.
b.
Grant Award, Obligation And Management.
(1)
Award Review And Acceptance. Once the award is
received, the responsible Department will accept the award only if
the grantor's terms and conditions can be satisfactorily met
by the City. Board of Aldermen approval must be obtained for all awards.
c.
Project Or Line-Item Account Number. The responsible Department
will request the Finance Department establish a project number or
line-item account number that corresponds to the CFDA number and title
of each grant. The purpose of the project number or line-item account
is to enable the accurate accounting of revenues and expenses related
to the project. No project can be started or executed without a project
number or line-item account number. The project number must be included
on all pay requisitions related to the grant.
d.
Reporting. The responsible Department will serve as the single
point of contact with the grantor and will be responsible for the
preparation and submittal of reports to the grantor, and for complying
with the guidelines and requirements of the award, including the use
of OMB approved data collection forms, as required. The responsible
Department will maintain a detailed project folder that will contain,
at a minimum, all official correspondence concerning the award including
City memoranda, resolutions, or ordinances; award letter; grantor
guidelines and restrictions; written communications between the City
and the grantor including copies of emails and any other documents
necessary for the effective management of the award, including documentation
relating the financial data to performance accomplishments.
(1)
The Finance Department will be the responsible
department in preparing the necessary financial information for reimbursements,
and for any reports that are necessary for reimbursements, and shall
submit any reports in a timely manner.
e.
Capital Assets. The City is responsible for maintaining an inventory
of assets purchased with grant monies. The City is accountable for
those assets and must make them physically available for inspection
during any audit. The Finance Director must be notified immediately
of any sale of these assets. When assets obtained with grant monies
are no longer needed and have a current fair market value of five
thousand dollars ($5,000.00) or more, a request for written guidance
shall be made from the grantor agency as to what to do with the property/equipment
prior to sale or relocation. The City shall abide with the requirement
set out in 2 CFR § 200.311 and § 200.313 in this
regard. If a sale will take place, proper procedures shall be used
to provide for competition to the extent practical and result in the
highest possible return.
f.
Matches — City Budget Identified. Some awards prescribe
a matching requirement in which the City must provide a financial
match to qualify for the award. In the event of a required match,
the responsible Department will work with the Finance Department to
ensure sufficient budget is identified, or if necessary, request a
budget amendment.
g.
Award Compliance — Issues. Periodically, compliance issues
associated with award guidelines and conditions may occur. The Department
charged with administering the award will be responsible for keeping
the City Administrator and Finance Department informed of any award
compliance issues and resolution undertaken to address the issue.
Resolution will be documented in the City's grant award files.
5.
Glossary And References. The following is a summary of terms and references used in Section 150.080(B):
a.
References. Title 2 of the Code of Federal Regulations, Part
200 (2 CFR 200) developed by the Office of Management and Budget (OMB)
establishes uniform administrative requirements, cost principles,
and audit requirements for Federal Awards. The requirements aim to
reduce the risk of fraud, waste, and abuse of Federal funds and places
heavy emphasis on written policies and procedures. The focus of these
policies and procedures is to ensure that those in the organization
who carry out the objectives of the award understand:
(1)
The Federal Statutes, regulations, and terms and
conditions of the award;
(2)
How to evaluate and properly monitor compliance;
(3)
The steps to take if non-compliance is identified.
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For further information, refer to:
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https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II
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Specific State and local regulations may also apply. These regulations
can vary based upon the unique conditions and circumstances of each
grant award. City staff should take due care in determining the specific
State and local applicable regulations that apply to their respective
project and to appropriately document, understand, and comply with
the conditions and restrictions within these regulations.
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Each grant may also have a Compliance Supplement issued by the
OMB which indicates any additional rules and guidelines that must
be met in compliance with the grant.
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b.
AWARD
AWARD COMPLIANCE
DEPARTMENT
FINANCE DEPARTMENT
GENERAL AND SPECIFIC AUDIT REQUIREMENTS
PROGRAM or PROJECT
RESPONSIBLE DEPARTMENT
Terms.
An award refers to financial resources provided to the City
in the form of a loan, grant or contract from a Federal, State, regional
or local government or private for-profit or non-profit entity.
This term refers to the general and specific requirements
and provisions that must be satisfactorily met by the City and demonstrated
to the awarding agency. Fulfilling the award requirements as provided
by the awarding agency is important as variances thereto can become
subject to an audit finding.
This term refers to any, singular or in combination, of the
City's operating Departments.
This term refers to the City's Finance Department.
General audit requirements refers to Federal, State, and
local audit compliance requirements. Specific audit requirements typically
are specific to individual awards and can vary in complexity based
upon the awarding agency. The responsible Department should take due
care to carefully review and comply with the general and specific
requirements of the award in question.
This term refers to the City operating program or capital
investment project that is supported by the award.
This term refers to the City operating Department that is
designated as the lead City Department responsible for managing the
program or project funded by the award.
[Ord. No. 1158 §§1 —
2, 3-19-2012]
A majority of a quorum of the Board of Aldermen in its sole
and absolute discretion may waive any and all procedural requirements
in this Chapter if it is deemed to be in the best interest of the
City.
[Ord. No. 1158 §§1 —
2, 3-19-2012]
A.
All
sales of real and personal property that have become obsolete and
unusable and has an estimated value of one thousand dollars ($1,000.00)
or more will be declared as surplus property by the Board of Aldermen
and shall be sold by using the formal bid method as described in the
purchasing procedures and awarded to the highest responsible bidder.
B.
The
City may sell real and personal property by advertising at least once
in a legal newspaper or placing on a government website, such as govdeals.com.
The property will be awarded to the highest bidder meeting the criteria
of the sale.
C.
The
City may dispose of used equipment by trading it in on new purchases.
In this case the net cost of the new equipment less the trade in will
be used in the comparison of bids.
D.
The
Board of Aldermen may declare items of personal property as surplus
in which case these items may be offered to another governmental or
tax supported agency at lower than market value.
E.
Items
under one thousand dollars ($1,000.00) may be declared as surplus
by the Mayor and discarded of in the most efficient method available
depending on condition, salvage value, useful life remaining and other
pertinent factors.
F.
Public
safety equipment specifically designed for police operations, including,
but not limited to, weapons, armor, communications equipment, etc.,
shall be offered to other Federal, State or local police agencies
or vendors licensed to deal with such equipment pursuant to Federal
and State Statutes.
[Ord. No. 1158 §§1 —
2, 3-19-2012]
A.
General Standards Of Ethical Conduct. Any attempt to realize
personal gain through public employment, inconsistent with the responsible
discharge of that public employment, is a breach of public trust.
In order to fulfill this general prescribed standard, employees must
also meet specific standards:
1.
Employee conflict of interest. The conflict of interest
definitions and rules are covered in the City Code.
2.
Employees with financial interest — disclosure requirements. Any employee or public official who has or may obtain any benefit
from any City contract with a business in which the employee has a
financial interest shall report such benefits to the City Clerk. Provided
however, this provision shall not apply to a contract with a business
where the employee's interest in the business has been placed in an
independently managed trust. Any employee or public official who knows
or should have known of such benefit, and fails to report such benefit
to the City, is in breach of the ethical standards of this Section.
3.
Gratuities. It is a breach of ethical standards
for any person to offer, give, or agree to give any employee/public
official or for any employee/public official to solicit, demand, accept,
or agree to accept from another person a gratuity of any value or
an offer of employment in connection with any purchasing decision.
Gratuities shall not mean pens, pencils, matchbooks, calendars, or
other novelty items used for advertising purposes, meals or other
meeting circumstances for the purpose of conducting or discussing
official business.
4.
Restriction on employment of present/former elected and appointed
City Officials.
a.
Contemporaneous employment prohibited. It shall
be a breach of ethical standards for any City Official who is involved
in purchasing to be an employee of any party contracting with or supplying
goods to the City.
b.
Former officials. It shall be a breach of ethical
standards for any former City Official, within one (1) year after
cessation of employment or affiliation, to be a principal or to act
as an agent for any organization that desires to solicit business
from the City.
5.
Use of confidential information. It shall be a
breach of ethical standards for any employee, former employee, public
official, or former public official knowingly to use confidential
information for his personal gain, or the personal gain of any other
person.
6.
Public access to purchasing information and records. All purchasing information and records are accessible and open to
personal inspection to any citizen. Appointment and location may be
arranged with the City Clerk.
7.
Waivers from contemporaneous employment prohibition and other
conflicts of interest. The Board of Aldermen may grant a
waiver from the employee conflict of interest provision or the contemporaneous
employment provision upon making a written determination that:
B.
General Standards Of Ethical Conduct For Non-Employees.
1.
General standards of ethical conduct for non-employees. Any effort to influence any public employee to breach the standards
of ethical conduct set forth in this Section is also a breach of ethical
standards.
2.
Kickbacks. It shall be a breach of ethical standards
for a vendor to offer a fee, a commission, brokerage, percentage,
or contingent fee to an employee of the City for the purpose of securing
business from the City
3.
Remedies against non-employees. Any person who knowingly
violates or solicits the violation of any of the provisions set out
in this regulation shall be barred from entering into future contracts
with the City and shall be prosecuted for any violation of local,
State or Federal laws that may apply.
