[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;
5. 
Bond 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.
a. 
Cost to the City.
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.
f. 
In case of emergency.
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.