[Ord. No. 2878 §1(25.010), 9-2-2003]
A purchase order will be processed, with the proper approvals
as described below, before any orders of purchases are made. The City
shall not be bound by any purchase order or contract made contrary
to the provisions of this Chapter without overriding approval by the
Board of Aldermen. No contract, purchase or sale shall be subdivided
to avoid the requirements of this Chapter.
[Ord. No. 2878 §1(25.020), 9-2-2003]
As used in this Chapter, the following terms shall have the
meanings ascribed to them:
CAPITAL EQUIPMENT
All large items that are found in the capital plan such as
cars, trucks, backhoes, usually costing ten thousand dollars ($10,000.00)
or more.
CAPITAL PROJECTS
Construction projects either new or replacement such as roads,
buildings, water and sewer lines where the cost of construction exceeds
ten thousand dollars ($10,000.00).
CONTRACTUAL SERVICES
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.
COOPERATIVE AGENCY
Any department, agency, commission, bureau or other unit
in any other governmental unit whether school district, special authority,
other municipality, County, State, Federal or otherwise governmental
type unit which cooperates with the City through its Finance Director
in purchasing any items covered by this Chapter.
DEPARTMENT HEADS
The person that is the head of a major function of the City
and reports directly to the City Administrator. Positions in this
classification include all positions with Director, Commissioner or
Engineer in the title and the Chief of Police.
ENGINEERING SERVICES
A subset of professional services including architectural,
engineering, land surveying and other related services.
ITEM
Anything that is one (1) each, i.e., one (1) backhoe, one
(1) car, one (1) radio, one (1) total project, one (1) service contract.
An item cannot be subdivided to avoid the requirements of this Chapter.
LOCAL BUSINESS PREFERENCE
A five percent (5%) reduction may be applied to the bid of
a local business (as defined by the City Business License Ordinance)
for comparison purposes, provided the reduction amount does not exceed
one thousand dollars ($1,000.00).
PROFESSIONAL SERVICE
The performance of a technical or professional service by
a person, group or company requiring specialized knowledge, intensive
academic or technical training and/or a high degree of expertise such
as engineers, lawyers, programmers, accountants, financial advisors,
appraisers, real estate specialist, urban planners and medical personnel.
SUPPLIES
All commodities, materials, equipment used in the daily operation
of the City.
TOTAL PURCHASE
The mathematical extension and total of all items being purchased
on a purchase order, contract or any other type of agreement.
USING DEPARTMENTS
Any Board, Commission or unit of the City Government using
supplies or procuring contractual services as provided for in this
Chapter and which shall be under the direction and/or control of the
Board of Aldermen.
[Ord. No. 2878 §1(25.030), 9-2-2003]
A. Bidding. All purchases and contracts for supplies and contractual
services, except for professional and engineering services and all
sales of personal property, which has become obsolete and unusable
shall, except as expressly provided in this Chapter be based wherever
possible on competitive bids, with the following exceptions:
1. Motor fuel to operate City-owned vehicles and equipment;
2. Monthly power supply purchase;
3. Essential utility supply purchases;
4. Monthly insurance payments;
B. Formal Purchasing Procedures. All supplies, services, equipment
and projects, except as otherwise provided herein, when the extended
cost thereof shall equal or exceed five thousand dollars ($5,000.00)
shall be purchased by formal written contract from the lowest responsible
bidder, unless otherwise justified after due notice inviting proposals.
C. Solicitation Of Bids.
1. Formal bids. The City Administrator, or as delegated,
shall by certified or registered mail, or in his/her discretion by
first class mail or by electronic mail, solicit sealed bids from at
least three (3) responsible prospective suppliers setting forth detailed
specifications and all pertinent information necessary for the prospective
supplier to file a bid or proposal. The invitation to bid will also
be advertised in at least one (1) legal paper. The bid process should
be approximately three (3) weeks or fifteen (15) working days from
the first (1st) ad published. Prospective suppliers to whom invitations
to bid are sent shall be limited to those who are part of the trade
group offering commodities and services similar in character to that
being purchased. If the Department Head is unable to reasonably find
three (3) responsible suppliers, certification of that will be forwarded
to the City Administrator, whom may deem the lesser number to be in
compliance with the requirements of this Section. The provisions of
this Section may be waived when the Department Head and the City Administrator
agree that following this Section's provisions may cause excessive
delay, public inconvenience and/or a significant cost penalty.
2. Bond. Every contract awarded for public works shall
be accompanied by a payment/performance bond with:
a. Corporate surety licensed to do business in the State of Missouri;
or
b. Cash in the form of a cashier's check, conditioned upon the faithful
performance of the contract of said work and payment of all subcontractors
and suppliers.
(1)
For contracts over one hundred thousand dollars ($100,000.00)
said bond shall be equal to at least the entire amount of money to
be paid for such work. All public works contracts in excess of one
hundred thousand dollars ($100,000.00) shall be bid requiring a five
percent (5%) bid bond.
(2)
For public works contracts under one hundred thousand dollars
($100,000.00) the City shall require a cash bond in the form of a
twenty percent (20%) retainage on all pay estimates requested by the
contractor. The retainage bond shall be conditioned for the payment
of any and all materials, labor, equipments, tools, insurance premiums
or any other items connected with the work whether by subcontractor
or otherwise. The City shall stipulate the ability to retain ten percent
(10%) of the total money amount of the contract for up to one hundred
eighty (180) days after the project is completed. When this retainage
bond is used, the City shall require lien waivers for all work which
is covered under a pay estimate.
3. Manner of submission of bids — opening, recommendations
to the Board. Sealed bids or proposals shall be submitted to the City Clerk and shall be identified as to the bid involved on the envelope. The bids shall be opened in public at the time and place stated in the invitation to bid and in any public notices. After the opening, the Department Head requesting the bid shall review and file a report to the City Administrator with their recommendation and justification. The City Administrator will process the bid in accordance with Section
145.050 Approval.
4. Award of contract to bidder. The City shall award
the contract to the "best" bid, not necessarily the lowest bid and
shall have the right to reject any and all bids. When the award is
not given to the lowest bidder, a full and complete statement of the
reasons for placing the order elsewhere shall be prepared by the Department
Head and forwarded to the City Administrator for approval and processing.
This statement will be filed with the bid documents. When the award
is not given to the lowest bidder, a full and complete statement of
the reasons for placing the order elsewhere shall be attached to the
purchase order and approved by the Board of Aldermen.
5. Factors for determination of best bid.
b. The ability, capacity and skill of the bidder to perform the contract
or provide the services required.
c. Whether the bidder can perform the contract or provide the services
within the time specified without delay or interference.
d. The character, integrity, responsibility, judgment, experience and
efficiency of the bidder.
e. Whether the bidder is in default on the payment of taxes, licenses
or monies due the City, this factor alone shall justify disqualification.
f. The quality and performance of previous contracts or services.
g. The previous and existing compliance by the bidder with laws, provisions
of the ordinance and any other City ordinances relating to the contract
or service.
h. The quality, availability and adaptability of the supplies or contractual
services to the use required.
i. Local business preference.
j. State and United States preference as outlined in Section
145.140.
k. That all taxes or other monies billed by the City are paid in full
and that all licenses required by the City are in proper order.
l. The ability of the bidder to provide future maintenance and service
for the use of the subject of the contract.
6. Informal purchasing procedures. All purchases of
supplies and personal services over one thousand dollars ($1,000.00)
and less than five thousand dollars ($5,000.00) shall be made upon
the basis of at least two (2) quotes from two (2) prospective suppliers.
The Department Head requesting the services or materials will solicit
bids by direct mail, electronic media or telephone and receive the
bids either by direct mail, electronic media or via fax. All bids
will be recorded and attached to the purchase request at time of submittal.
7. Open market procedure. Purchase of supplies and
contractual services of one thousand dollars ($1,000.00) or less can
be made on the open market without bids or proposals. Departments
shall always strive to maximize value and to minimize costs when making
these purchases.
8. The bidding process may be waived for the purpose of purchasing goods
and services for the following situations:
a. Where bids, contracts or cooperative purchasing agreements are established.
b. Where professional services of a specialized nature are required.
c. There exists only a sole supplier.
d. Where the standardization of parts and replacement is absolutely
necessary.
e. Where ensuring compatibility with existing City equipment is in the
best interest of the City.
g. For other reasons as deemed necessary by the Board of Aldermen.
9. Emergency purchasing procedures. In the event of
an apparent emergency that requires immediate purchase of supplies
or contractual services, the City Administrator is empowered to secure
by an open market procedure, at the lowest obtainable price, any supplies
or contractual service regardless of the amount of the expenditure.
A full report of the circumstance of an emergency purchase shall be
filed by the City Administrator with the Board of Aldermen and shall
be entered into the official records of the Board.
10. Single source purchasing. The requirement of competitive
bids or proposals for supplies may be waived when the City Administrator
has determined that there is only a single feasible source for the
procurement. A single source exists when:
a. Supplies are proprietary and only available from the manufacturer
or a single distributor.
b. Based on past procurement experience, it is determined that only
one (1) distributor serves our region.
c. Supplies are available at a discount from a single distributor for
a limited period of time.
d. In order to match or fit with equipment already on hand.
11. Authority to engage in cooperative purchasing. The
City Administrator shall have the authority to join with others unit's
cooperative agencies in cooperative purchasing when it would serve
the best interests of the City and after the approval of the Board
of Aldermen. When engaged in cooperative purchasing, i.e., State of
Missouri, General Services Administration, in which case bidding has
already been done by another agency, the requirement of competitive
bids or proposals may be waived.
[Ord. No. 2878 §1(25.040), 9-2-2003]
A person desiring to order a supply, equipment or service shall
initiate the procedure by filling out a purchase order requisition,
providing the vendor's name, address, the quantity, the description
and the cost of the item or items being ordered. The Department Head
will then approve this requisition.
[Ord. No. 2878 §1(25.050), 9-2-2003]
A. The
Department Head may approve the purchase of budgeted operating supplies;
a purchase not to exceed two thousand five hundred dollars ($2,500.00),
with proper bidding procedures and no single item (not line item)
exceeds five hundred dollars ($500.00).
B. The
Department Head with the City Administrator may approve the purchase
of budgeted operating supplies up to five thousand dollars ($5,000.00)
with no one (1) item exceeding two thousand five hundred dollars ($2,500.00).
C. Unbudgeted
items shall require approval the City Administrator, pursuant to Section
(G).
D. The
Board of Aldermen shall pre-authorize all capital expenditures either
through the budget process or by motion in a Board of Aldermen meeting
before the purchasing process will begin. The City Administrator may
approve the actual purchase of budgeted capital equipment and capital
projects if the purchase does not exceed ten thousand dollars ($10,000.00).
All purchases of capital equipment and capital projects over ten thousand
dollars ($10,000.00) shall require the final approval of the Board
of Aldermen before the acquisition is made. The Department Head will
make a written recommendation to the City Administrator before any
capital expenditure is approved. The City Engineer will be responsible
that any cost-sharing agreements, easements, construction plans or
permits that are necessary are in place before submitting to the City
Administrator.
E. Contractual Services. The Mayor will approve and sign all
agreements for contractual services pursuant to authorization by the
Board of Aldermen and the contracts will be filed with the City Clerk.
F. Professional Services. Contracts for professional services
shall require authorization and approval by the Board of Aldermen.
A contract, signed by the Mayor pursuant to authorization by the Board
of Aldermen, shall be filed with the City Clerk and a purchase order
for encumbrance of funds sent to City Administrator before work commences.
G. The
City Administrator may approve unbudgeted items or items exceeding
budget up to two thousand five hundred dollars ($2,500.00). Unbudgeted
expenses over two thousand five hundred dollars ($2,500.00) shall
require Board of Aldermen approval. Unbudgeted approvals over one
thousand dollars ($1,000.00) will be included in the report to the
Board of Aldermen as an informational item.
H. All
other purchases or contracts not included above shall require Board
of Aldermen approval. The Mayor or the City Administrator may authorize
a phone poll of the Board of Aldermen if deemed necessary. This poll
will be conducted by the City Clerk and the City Administrator, or
their respective delegates, and in accordance with the Sunshine Laws
of the State of Missouri.
I. Change
orders to a non-capital, existing purchase order or contract will
follow the same approval guidelines as regular purchases with the
new total not exceeding their respective authorization levels.
J. Change Orders For Capital Project. Projects within contract
budget and/or a pre-approved contingency may be approved as long as
no line item change exceeds ten percent (10%) of that line item, not
to exceed twenty-five hundred dollars ($2,500.00).
Example: One million dollar ($1,000,000.00) line item —
twenty-five hundred dollar ($2,500.00) change.
Twenty-five thousand dollar ($25,000.00) line item — twenty-five
hundred dollar ($2,500.00) change.
The approval requires the Department Head and City Administrator.
Anything exceeding this will require approval of the Board of
Aldermen.
[Ord. No. 2878 §1(25.060), 9-2-2003]
Authorization shall be the person in the described position
or the person delegated by that position in their absence or non-availability,
either by written authorization or the chain of command, as presented
in the personnel charts contained in the annual budget.
[Ord. No. 2878 §1(25.070), 9-2-2003]
A. The
City Administrator may make transfers within a department's budget
within a class or group (personnel, services, supplies, maintenance,
capital items).
B. The
City Administrator shall have the authority to make transfers from
one class to another (personnel to capital) up to two thousand five
hundred dollars ($2,500.00). Over two thousand five hundred dollars
($2,500.00) shall require Board approval.
C. The
City Administrator shall be authorized to make administrative transfers
to correct accounting procedures such as classification errors.
[Ord. No. 2878 §1(25.080), 9-2-2003]
Pre-approved petty cash purchases shall be limited to a maximum
of two hundred dollars ($200.00). Petty cash reimbursements shall
be limited to a maximum of seventy-five dollars ($75.00).
[Ord. No. 2878 §1(25.090), 9-2-2003; Ord. No. 3525 §1, 7-3-2012]
A. All
sales of real and personal property that have become obsolete and/or
unusable and that have an estimated value of one thousand dollars
($1,000.00) or more may be declared as surplus property by the Board
of Aldermen and shall be sold:
1. By using the formal bid method as described in the purchasing procedures
and awarded to the highest responsible bidder, or
2. By holding a public auction that has been advertised a minimum of
three (3) times, at least once in a legal newspaper, or on a commercially
recognized electronic online auction service where the item(s) are
offered for sale for at least three (3) weeks before the sale bids
are closed. The property will be awarded to the highest bidder meeting
the criteria of the auction.
B. 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.
C. 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.
D. Items
under one thousand dollars ($1,000.00) in value, may be declared as
surplus by the City Administrator and discarded of in the most efficient
method available depending on condition, salvage value, useful life
remaining and other pertinent factors.
[Ord. No. 2878 §1(25.095), 9-2-2003]
All staff level personnel, or anyone else approving purchases,
will be required to fill out and have a financial disclosure report
on file with the City Clerk's office.
[Ord. No. 2878 §1(25.100), 9-2-2003]
The Board of Aldermen in its sole and absolute discretion may
waive any and all aforementioned procedural requirements.
[Ord. No. 2878 §1(25.110), 9-2-2003]
A. Professional
services shall mean those services of a vocation requiring specialized
knowledge and intensive academic or technical training in such fields
as law, finance, engineering, planning, real estate, computer sciences
and other type fields.
1. Contracts over $10,000.00.
a. The City Administrator will appoint a selection committee of at least
four (4) qualified individuals. This committee will include the Department
Head of the requesting department, who will serve as Chairman of the
committee.
b. The selection committee will solicit proposals from qualified service
providers, review the proposals, narrow the field of prospects, request
detailed proposals, interview the providers and make a recommendation
to the City Administrator.
c. Factors to be considered in determining the best proposal shall include
experience and technical competence, previous performance, ability
to meet schedules, community relations and sensitivity to citizens'
concerns and the proximity to and familiarity with the area.
d. When detailed proposals are requested they should include at a minimum,
the project name, the name and address of the firm, related experience,
any subcontractors or outside firms or personnel to be used, a resume
of key persons involved, any special related experience, any other
work previously done or currently being performed for the City, a
description of resources to be used and an estimation of hours and
time of completion.
e. The Department Head of the using department will negotiate a contract
with the firm selected by the committee and report to the committee
for acceptance or termination of negotiations. If a contract cannot
be negotiated, the committee will then select their next choice and
an agreement will be negotiated with that firm.
f. When in the determination of the City Administrator, because of the
nature of the services desired, there is only a sole provided of the
service that will be in the best interest of the City, the City Administrator
may recommend the person or firm to the Board of Aldermen for approval,
thus waiving this procedure.
2. Contracts less than $10,000.00 and over $4,999.00. Written proposals shall be required by direct mail. A selection committee of three (3), as selected by City Administrator, shall review the proposals and make a recommendation to the City Administrator for approval of the Board of Aldermen following the guidelines in Subsection
(A).
3. Contracts less than $5,000.00. Services for projects
five thousand dollars ($5,000.00) to five hundred dollars ($500.00),
will be at the direction of the Department Head, who will make a recommendation
to the City Administrator for approval.
4. Contracts for $500.00. Contracts for five hundred
dollars ($500.00) will be at the direction and approval of the Department
Head.
5. Contingent fees.
a. Every contract entered into for professional services by the City
shall contain a prohibition against contingent fees as follows:
The architect, engineer or service provider warrants that he/she
has not employed or retained any company or person, other than a bona
fide employee working solely for such firm or company for the purpose
to solicit or secure any agreement with the City or by providing any
fee, commission, percentage, gift or any other consideration, contingent
upon or resulting from the award of this agreement.
b. For the breach or violation for the foregoing provision, the Board
of Aldermen shall have the right to terminate the agreement without
liability and at its discretion to deduct from the contract price
or otherwise recover the full amount of such fee, commission, percentage,
gift or consideration.
[Ord. No. 2878 §1(25.120), 9-2-2003]
A. Prohibition Of Interest. Any City officer or employee who
has a substantial financial interest, direct or indirect or by reason
of ownership of stock in any corporation, in any contract with the
City or in the sale of any land, material, supplies or services to
the City or to a contractor supplying the City, shall make known that
interest and shall refrain from voting upon or otherwise participating
in the making of such a contract or sale. Violation of this Section
with the knowledge express or implied of the person or corporation
contracting with or making a sale to the City shall render the contract
voidable by the Board of Aldermen. In addition to the above, no elected
or appointed official or employee of the City of Sullivan shall:
1. Sell, rent or lease any property to the political subdivision or
any agency of the political subdivision for the consideration in excess
of five hundred dollars ($500.00) per annum, unless the transaction
is made pursuant to an award of a contract let or a sale made after
public notice and in the case of property other than real property,
competitive bidding, provided that the bid or offer accepted is the
lowest received.
2. Perform any service for the City of Sullivan, Missouri for any consideration
in excess of five hundred dollars ($500.00) per annum unless the transaction
is made pursuant to an award on a contract let, after public notice
and competitive bidding, provided that the bid or offer accepted is
the lowest received.
B. Officers And Employees Not To Deal With Certain Entities. No officer or employee of this City shall enter into any private
business transaction with any person or entity that has a matter pending
or to be pending upon which the officer or employee is or will be
called upon to render a decision or pass judgment. If any officer
or employee is already engaged in the business transaction at the
time that a matter arises, he/she shall be disqualified from rendering
any decision or passing any judgment upon the same.
C. Penalties. Any person who violates the provisions of Section
145.120, upon conviction thereof, be punished as provided in Section
100.220 of this Code.
D. Gifts And Rebates. The City Administrator and every other
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 object which could be construed as such in
excess of ten dollars ($10.00), except where given for the use and
benefit of the City. Violation of the provisions of this Section shall
upon conviction thereof be punished as provided in Chapter 13 of this
Code.
[Ord. No. 2878 §1(25.130), 9-2-2003; Ord. No. 3233 §1, 4-15-2008; Ord. No. 3717 §1, 1-19-2016]
A. Upon
receipt of the bill or invoice from any entity which:
1. Shall supply utilities (including but not limited to electric, telephone,
natural gas, gasoline, and diesel fuel) and solid waste removal to
the City of Sullivan; or
2. Shall supply employee insurance services (including but not limited
to major medical, pharmacy, dental, and life insurance); or
3. Issued general obligation, lease purchase payments, or revenue bonds
on behalf of the City, the City shall pay said bill within the time
required by the provider, but shall review said bill for accuracy
and determine as to whether or not said bill is lawfully owed. If
said bill or invoice is required to be paid in the reasonable and
normal course of business before a lawfully constituted meeting of
the Board of Aldermen is scheduled, the Mayor and City Clerk shall
be authorized to pay said bill prior to official approval by the Board
of Aldermen. However, the aforementioned bill and/or invoice and record
of payment shall be presented to the Board of Aldermen at the time
other monthly bills are presented; such presentment shall be for purposes
of inspection and review. If the Board of Aldermen determines that
said bill was in any way overpaid, then it shall order that a credit
be taken on the next month's payment.
[Ord. No. 2878 §1(25.140), 9-2-2003]
A. All
requests for bids and proposals for supplies to be purchased shall
be made in general terms and by general specifications and not by
brand, trade names or other individual mark, provided such article
to be purchased can be definitely described without the designation
of such brand, trade name or other individual mark. All such requests
and bids shall contain therein a paragraph in easily legible print,
reading as follows: "By virtue of statutory authority, a preference
will be given to materials, products, supplies, provisions and all
other articles produced, manufactured, made or grown within the state
of Missouri."
B. In
letting contracts for the performance of any job or service, the City
shall give preference to all firms, corporations, or individuals doing
business as Missouri firms, corporations, or individuals, or which
maintain Missouri offices or places of business, when the quality
of performance promised is equal or better and the price quote is
the same or less.
C. Each
contract for the purchase or lease of manufactured goods or commodities
and each contract made for construction, alteration, repair, or maintenance
of any public works shall contain a provision that any manufactured
goods or commodities used or supplied in the performance of that contract
or any subcontract thereto shall be manufactured or produced in the
United States. This Section shall not apply where the purchase, lease,
or contract involves an expenditure of less than twenty-five thousand
dollars ($25,000.00). This Section shall not apply when only one (1)
line of a particular good or product is manufactured or produced in
the United States. This Section shall not apply when:
1. The specified products are not manufactured or produced in the United
States in sufficient quantities to meet the City's requirements or
cannot be manufactured or produced in the United States within the
necessary time in sufficient quantities to meet the City's requirements;
2. Obtaining the specified products manufactured or produced in the
United States would increase the cost of the contract by more than
ten percent (10%).
D. Nothing
in this Section is intended to contravene any existing treaty, law,
agreement or regulation of the United States. All contracts under
this Section shall be entered into in accordance with existing treaty,
law, agreement or regulations of the United States including all treaties
entered into between foreign countries and the United States regarding
export-import restrictions and international trade and shall not be
in violation of this Section to the extent of such accordance.
E. The
City may not authorize, provide for or make any payment to any vendor
or contractor upon any contract in violation of this Section. At time
of bid and before the City authorizes, provides or makes payment to
any vendor or contractor upon any contract to which this Section applies,
the vendor or contractor shall provide proof of compliance with this
Section. Any vendor or contractor who knowingly misrepresents any
material fact concerning the origin of any manufactured goods or commodities
shall be guilty of a class A misdemeanor.