[Ord. No. 2021-3244, 12-14-2021]
A. Purpose. The purpose of this Chapter is to establish guidelines regarding
purchases made by the City and the sale of City property in order
to maximize the value realized for each public dollar spent and for
public property.
B. Applicability. This Chapter is applicable to all purchasing for the
City regardless of the source of funds used for the purchase and the
sale of any City property outside the scope of ordinary services.
With the exception of Federal forfeiture funds which are managed by
the Chief of Police and may be utilized to acquire any authorized
items or services, the Police Chief will additionally comply with
the latest copy of the Guide to Equitable Sharing for State and Local
Law Enforcement Agencies published by the United States Department
of Justice.
C. Basic Goals. The basic goals of the City are:
1.
To comply with all applicable Federal, State and local legal
requirements.
2.
To assure vendors and buyers that impartial and equal treatment
will be afforded to all who wish to do business with the City.
3.
To maximize the value realized for each public dollar spent
and for public property.
4.
To obtain goods and services at the time and place needed in
the proper quantity and quality.
5.
To sell or lease property that is no longer necessary or useful
to the City and that can be better used by the private sector.
If the procedures and guidelines established in this Chapter
are followed, each department should efficiently manage, control and
plan its available resources to meet present and future departmental
needs and help the City meet its goals.
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[Ord. No. 2021-3244, 12-14-2021]
The following terms shall be defined as stated for purposes
of this Chapter:
APPROPRIATION
The legal authorization of monies for anticipated or incurred
expense.
AUTHORIZED PURCHASER
An approved employee of the City who has been nominated by
a Department Head and appointed by the City Manager to make purchases
at a specified monetary level on behalf of the City. The Accounts
Payable Clerk shall maintain the list of authorized purchasers as
supplied by the Department Heads.
BUDGET
A document which sets forth proposed revenues and expenses
to be incurred during a fiscal year for the various City operations.
CONSTRUCTION
The process of building, altering, repairing, improving or
demolishing any public structure or facility or other public improvement
of any kind.
CONTRACT
A legally binding promise enforceable by law and, generally,
in writing.
COOPERATIVE PURCHASING AGREEMENT
A legally binding contract approved by the City Council entered
into by the City, the United States of America, the State of Missouri
or any of the subordinate agencies or departments and any other approved
organization which manages a cooperative purchasing program to obtain
goods and services at the most advantageous price for its members
and the City specifically.
COST COMPARISONS
An informal analysis of the amounts paid or requested for
a product or service accomplished through personal contact, printed
or digital media.
DEPARTMENTS
Includes administration, finance, police, fire, cemetery,
parks and recreation, community development, public works, Municipal
Court, wastewater and the office of the City Clerk.
EXISTING PURCHASING CONTRACT
A contract previously entered into by the City and currently
existing including, but not limited to, a term-and-supply contract,
an annual contract, a maintenance contract and a warranty contract.
FORMAL WRITTEN BID
A competitive bid which must be submitted in response to
an advertised request in a prescribed format pursuant to applicable
instructions, including typically that the bid be submitted in a sealed
envelope to be opened in public at a specified time.
ITEM
A product, material or service.
MATERIAL VALUE
The value of an item to be purchased or sold, to be determined
in the first (1st) instance by the department head.
OPEN MARKET SALE
The sale of an item of property in a market in which any
buyer or seller may trade and in which prices and product availability
are determined by free competition.
PROCUREMENT
Purchasing, renting, leasing or otherwise acquiring any supplies,
services, property or construction, including performance of any necessary
functions such as writing specifications, selection and solicitation
of sources, preparation and award of contract and contract administration.
PURCHASE ORDER
An offer to make a contract between the City and a vendor.
The contract is not binding until it is accepted by the vendor.
QUOTATION
A statement of price, terms of sale and description of property,
goods or services offered by a vendor to a prospective purchaser by
digital communication, letter, fax, telephone or other means of communication.
A quotation (or "quote") is not required to be in writing from the
vendor; however, some written memorandum of the elements listed above
must be maintained.
SPECIFICATIONS
A description of the physical or functional characteristics
or the nature of a supply, service, property or construction item;
the requirements to be satisfied by a product or process; indicating,
if appropriate, the procedures to determine whether the requirements
are satisfied and/or the capabilities and performance characteristics
that the item must satisfy.
TERM AND SUPPLY CONTRACTS
A term and supply contract is an open-ended contract for
specific goods or services that the City uses on a regular basis.
The City establishes term and supply contracts to maximize the volume
of purchases across all of the departments. Once these contracts have
been established, purchasing requires that the vendor selected be
used for applicable purchases.
[Ord. No. 2021-3244, 12-14-2021]
The City Manager of the City of Aurora, Missouri, or his/her
designated person(s) are hereby designated as the City's Purchasing
Agent(s). The Purchasing Agent when authorized, shall procure for
the City the bids for all supplies and contractual services needed
by the City, in accordance with the procedures prescribed by this
Chapter or required by law. The City Manager may delegate certain
purchasing duties to other staff members.
[Ord. No. 2021-3244, 12-14-2021]
A. Buying Preferences. It is the desire of the City to purchase from
City of Aurora, Missouri, and/or American vendors whenever possible.
When all other factors are equal, preference shall be provided to
City of Aurora vendors first (1st), Missouri vendors second (2nd)
and American vendors third (3rd). To be considered a City of Aurora
vendor, the person or entity must have a physical place of business
located in the City and a City business license. To be considered
a Missouri vendor, the person or entity must have a physical place
of business in the State and authority to conduct business in the
State. To be considered an American vendor, the person or entity must
have a physical place of business in the Country and authority to
conduct business in the Country.
B. Recycled Products. The City shall purchase recycled-content products
in preference to those made from virgin materials when cost, quality,
variety, quantity, delivery time and any other defined specifications
are comparable to products made from virgin materials.
C. Planning. Small orders and last-minute purchases should be minimized,
thereby increasing the capability of each department to purchase its
goods and services in larger quantities in order to obtain the maximum
discounts possible.
D. Buying Proper Quality. It is the duty of the department that is making
the purchase to secure the best quality for the purpose intended.
"Quality buying" is the buying of goods or services that will meet
or exceed the requirements for which they are intended.
E. Sales Tax. The City is generally exempt from paying local and State
sales taxes and Federal excise taxes. The Finance Department can provide
the necessary exemption documents to any vendor upon request.
F. Endorsements. It is the policy of the City not to endorse or in any
way permit an employee's name, position or the City's name
to be used and advertised as supporting a product or vendor.
G. Personal Purchases. Purchases for employees' personal use by
the City are prohibited. City employees are also prohibited from using
the City's name or the employee's position to obtain special
consideration in personal purchases.
H. Lowest Responsible Bidder. Contracts for purchases shall be awarded
to the lowest and best bidder. In determining the "lowest responsible
bidder," in addition to price, the City will consider, when applicable,
the following:
1.
The ability, capacity and skill of the bidder to perform the
contract or provide the service required.
2.
Whether the bidder can perform the contract or provide the service
promptly or within the time specified without delay or interference.
3.
The character, integrity, reputation, judgment, experience and
efficiency of the bidder.
4.
The quality of performance of previous contracts or services.
5.
The previous and existing compliance by the bidder with all
applicable laws.
6.
The sufficiency of the financial resources and ability of the
bidder to perform the contract or provide the service.
7.
The quality, availability and adaptability of the supplies or
contractual services to the particular use required.
8.
The ability of the bidder to provide future maintenance and
service for the use of the subject of the contract.
9.
The number and scope of conditions attached to the bid.
10.
Any other pertinent factor.
[Ord. No. 2021-3244, 12-14-2021]
A. Purchases for all dollar amounts listed below shall require the completion
and approval of a purchase order.
1.
Purchases with material value below one thousand dollars ($1,000.00)
within total budget may be made by an authorized purchaser without
a quotation. However, staff are encouraged to seek out the most competitive
price and quality on any item before proceeding with a purchase.
2.
Purchases with material value from one thousand dollars one
cent ($1,000.01) to five thousand dollars ($5,000.00) within total
budget and not available through an existing purchasing contract or
a cooperative purchasing agreement may be made by an authorized purchaser.
Prior to placing an order, the authorized purchaser should obtain
the lowest cost through quotations whenever reasonably possible. Any
purchase order must be signed by the authorized purchaser and submitted,
along with a record of the quotations, to the Finance Department for
issuance of payment.
3.
Purchases with material value from five thousand dollars one
cent ($5,000.01) to ten thousand dollars ($10,000.00) within total
budget and not available through an existing purchasing contract or
a cooperative purchasing agreement may be ordered by the authorized
purchaser with the approval of the City Manager. Such purchase must
have at least three (3) quotations. Any purchase order must be signed
by the head of the department and the City Manager and submitted,
along with a record of the quotations, to the Finance Department for
issuance of a payment.
4.
Any purchase request having a value greater than ten thousand
dollars one cent ($10,000.01) may be ordered only after formal written
bid, advertised once a week on the same day for two (2) consecutive
weeks in a written and/or electronic publication of general circulation
and formal approval by a majority of the City Council.
5.
Purchases with material value greater than ten thousand dollars
one cent ($10,000.01) and available through an existing purchasing
contract or a cooperative purchasing agreement may be ordered with
formal approval by the majority of the City Council.
6.
Multiple Or Repeat Orders. Multiple or repeat orders from the
same vendor during any consecutive five (5) business days cannot be
used to avoid the requisite approvals for the total purchase amount.
7.
Special Circumstances. On purchases of less than ten thousand
dollars ($10,000.00), if less than three (3) quotations are received
and the quotations all exceed the amount budgeted for the purchase,
departments should either request new quotations for the desired goods
or services or obtain approval from the City Manager to proceed based
on the initial quotation(s) on the grounds that special circumstances
exist such that requests for new quotations would not generate a different
result. Such special circumstances should be explained by the department
head in a written memorandum accompanying the purchase order.
8.
Exempt Purchases. The following purchases, by their very nature,
are exempt from the normal purchasing guidelines and require the special
procurement practices set forth below:
b.
Cooperative purchase agreements;
c.
Term-and-supply and annual contracts;
f.
Sole-source and monopoly purchases.
g.
Purchase of used equipment that has been thoroughly inspected
by City staff and has a substantially lower cost than the same or
comparable equipment that is brand new.
[Ord. No. 2021-3244, 12-14-2021]
Bids shall be submitted sealed to the Purchasing Agent or his/her
designee and shall be identified as bids on the envelope. They shall
be opened in public at the time and place stated in the public notices.
[Ord. No. 2021-3244, 12-14-2021]
A. Construction Change Orders Approved By City Manager. One (1) or more
change orders to an existing construction contract which do not exceed
a cumulative cost of fifteen percent (15%) of the original contract
awarded pursuant to an invitation for bids or request for proposals
may be executed as long as funds are available.
B. Any construction change order which authorizes a new improvement
under a construction contract may be executed when:
1.
The new improvement is required for the completion of an improvement
which is currently under construction pursuant to a competitive bidding
or competitive proposal process;
2.
The new improvement results from the discovery of differing
or unforeseen physical conditions at the site of the improvement under
construction and is required for the completion of the improvement
under construction; and
3.
An administrative finding has been made by the Purchasing Agent
that it would be in the City's best interest to negotiate with
the on-site contractor for the construction of the new improvements
after recommendation of the engineer or architect.
C. Every contract modification, change order or contract price adjustment
in excess of fifteen percent (15%) of the original contract amount
under a construction contract with the City shall be subject to prior
approval by the City Council after receiving a report from the City
Manager as to the effect of the contract modification, change order
or contract price adjustment on the total project budget or the total
contract budget.
D. Changes To Purchase Orders. Change orders to purchase orders are
only allowed if the change is in the cost of the item being purchased.
No change orders are allowed for changes in quantity or scope of the
original purchase order. Changes in quantity or scope are to be purchased
with separate purchase order numbers unless the City Manager or his/her
designee authorizes the amendment of an existing purchase order. When
the cost of an item changes the approval requirements, a new purchase
order will be requested following the appropriate purchase procedures.
[Ord. No. 2021-3244, 12-14-2021]
Bulk fuel purchases for vehicles may be made without approval
of a purchase order, provided that three (3) quotes are obtained and
the lowest cost vendor is selected. To the extent vehicles cannot
be fueled through the City's bulk-purchasing program, purchases
may be made at any commercial service station, although price shopping
is still encouraged. Documentation of the purchase shall be submitted.
[Ord. No. 2021-3244, 12-14-2021]
A. The City may contract directly with other governmental entities (political
subdivisions or municipalities, County, State or Federal) for the
purchase of items or the providing or receipt of services. The City
may also participate in, sponsor, conduct or administer a cooperative-purchasing
agreement whereby items are procured in accordance with a contract
established by another governmental entity provided that such contract
was established in accordance with the laws and regulations applicable
to the establishing governmental entity.
B. The City Clerk shall make available to department heads and authorized
purchasers a list of cooperative-purchasing programs in which the
City will participate. The City Clerk shall be responsible for notifying
the departments of current approved cooperative-purchasing agreements
and any limitation or special requirements for their use.
C. The City Manager will review and approve all cooperative-purchasing
agreements with other governmental agencies with material value under
ten thousand dollars ($10,000.00) prior to their use. The City Council
shall review and approve cooperative-purchasing agreements with material
value of ten thousand dollars ($10,000.00) or more. Competitive-bidding
procedures do not apply to such purchases made through approved cooperative-purchasing
agreements.
D. "Acceptable cooperative-purchasing agreements" are agreements which
contain the same terms, conditions, specifications and pricing for
the respective item that the department would bid and purchase on
their own.
E. Additional City Council approval shall not be required for the purchase
of any budgeted items from approved "acceptable cooperative-purchasing
agreements."
[Ord. No. 2021-3244, 12-14-2021]
A. Term-and-supply contracts and annual contracts shall be bid through
each department following the same procedures established by this
policy for other purchases based upon the estimated material value
of a contract. The department requesting the service shall prepare
a recommendation of award for the City Council approval for all term-and-supply
and annual contracts with material value of ten thousand dollars ($10,000.00)
or more based upon the annual value of the contract. All multiple-year
contracts should contain a clause explaining that the obligation of
the City to pay for goods and/or services under the contract is limited
to payment from available revenues and shall constitute a current
expense of the City and shall not in any way be construed to be a
debt of the City in contravention of any applicable constitutional
or Statutory limitations or requirements concerning the creation of
indebtedness by the City nor shall anything contained in the contract
constitute a pledge of the general tax revenues, funds or monies of
the City and all provisions of the contract shall be construed so
as to give effect to such intent.
B. Once such a contract is approved, specific purchases within budget
should be made on an "as-needed" basis without further bidding while
the contract remains open, unless and until the City terminates the
contract. Any department that believes such a contract is no longer
competitive should provide such information to the City Clerk.
[Ord. No. 2021-3244, 12-14-2021]
A. Contracts for professional services provided by legal counsel, financial
advisors, physicians, certified public accountants, engineers, architects,
land surveyors, brokers, consultants and other specialized or technical
services shall be obtained through the special procurement procedures
set forth in this Section.
B. Requests for qualifications for professional services shall be submitted
to the City Manager, or other appropriate department head as assigned
by the City Manager for review and approval prior to distribution.
When an RFQ for professional services is approved, a number of qualified
professionals will be invited to submit a proposal setting forth their
interest, qualifications and description of proposed services. The
selection committee will then proceed with the necessary stages of
the selection process, including, but not limited to, development
of a selection committee, grading of proposals based upon fair and
equitable grading criteria, ranking of interviews based upon fair
and equitable criteria and negotiation of a contract with the professionals
deemed to best meet the City's needs.
C. Unless otherwise required by State Statute and upon approval of the
City Manager, professional services contracts under ten thousand dollars
($10,000.00) annually may be exempt from the request for qualifications
process.
D. Professional services contracts for ten thousand dollars ($10,000.01)
or more annually must be approved by the City Council.
[Ord. No. 2021-3244, 12-14-2021]
In case of an emergency which requires immediate purchase of
supplies or services, the City Manager may authorize such purchase
or secure such services needed without complying with the procedures
as set out above. Department Heads faced with an emergency purchase
need shall notify the City Manager as soon as possible. When possible
(if purchase is greater than ten thousand dollars ($10,000.00)) in
such an emergency, the City Manager shall seek approval from the City
Council at a special or regular meeting prior to the purchase. If
a timely special or regular meeting of the City Council is not possible,
a full report of such an emergency purchase shall be made by the City
Manager to the City Council as soon as possible.
[Ord. No. 2021-3244, 12-14-2021]
A. The City Manager may authorize a sole-source purchase, at any monetary purchasing level set forth in Section
135.040, General Guidelines, above, and accordingly waive competitive-purchasing procedures, when such a request is presented, in writing, by the requesting department head that documents that only a single feasible procurement source exists. A single feasible sole source exists when:
1.
Supplies or services are proprietary and only available from
a single manufacturer or a single distributor; or
2.
It is determined that only one (1) distributor services the
region; or
3.
When supplies or services are available at a significant discount
from a single distributor for a limited period of time; or
4.
When a project with specific circumstances requires specialized
consultant or technical services with a unique combination of abilities
or expertise.
B. In the event the amount of a sole-source purchase will exceed ten
thousand dollars ($10,000.00), it must also be approved in advance
by the City Manager and must be approved by the City Council.
[Ord. No. 2021-3244, 12-14-2021]
A. The City may lease real property that it owns for fair market value,
if authorized by the City Council when such property is currently
underutilized, in order to maximize the economic return of the property
to the City until such time as such property shall be required for
public usage.
B. Nothing herein shall prevent the City Manager or designated representative
from negotiating a higher rent for a lessee of any real property that
is shown to have a unique value to such lessee due to its configuration,
accessibility or size, subject to approval from the City Council.
[Ord. No. 2021-3244, 12-14-2021]
A. The City may sell unneeded real property for fair market value with
the approval of the City Council.
B. Nothing herein shall prevent the City Manager or designated representative
from negotiating a higher price for sale or trade to a buyer for any
real property that is shown to have a unique value to such buyer due
to its configuration, accessibility or size, subject to approval from
the City Council.
[Ord. No. 2021-3244, 12-14-2021]
The City should promptly dispose of all surplus property to
the economic advantage of the City. Competitive bidding on surplus,
obsolete or unusable goods is required through sealed bids, auction,
open market sales or other available means. The disposal of all such
goods requires the approval of the City Manager; additional approval
by the City Council is required for goods in excess of ten thousand
dollars ($10,000.00) in total material value. Trade-in opportunities
should be pursued when available to reduce the City's purchasing
costs. Competitive bidding shall only apply to a trade-in to the extent
it applies to the new purchase. Approvals of a trade-in shall be handled
in conjunction with the approval of the new purchase as dictated by
the purchase price. The City Manager is hereby authorized to dispose
of any surplus property by transfer to any governmental agency within
the State of Missouri regardless of the value of the surplus property.
[Ord. No. 2021-3244, 12-14-2021]
In the event a specific procurement procedure is required to
be in writing when the City is purchasing an item which is funded
in whole or in part by grant funds, (i.e., CDBG), the City Manager
shall have the authority to supplement this Section to incorporate
the special requirements of that procurement.
[Ord. No. 2021-3244, 12-14-2021]
No officer or employee of the City may accept, directly or indirectly,
any gift, rebate, money, or anything else of value whatsoever from
any person or entity if the gift, rebate, money, or item of value
is intended as a reward or inducement for conducting business, placing
orders with, or otherwise using the employee's position to favor
the contributor. Promotional items of nominal value shall not constitute
a gift if received as a non-personal item by the officer or employee,
and the item is distributed to customers or potential customers routinely
by the contributor.
[Ord. No. 2021-3244, 12-14-2021]
City employees shall follow these standards in all procurement
and contracting activities. Sanctions and penalties for violating
these requirements shall be as cited in the City of Aurora's
Personnel Handbook, as amended, which governs disciplinary actions
for violations of City policies and regulations.
[Ord. No. 2021-3244, 12-14-2021]
The City Manager may clarify the provisions of this Section
in furtherance of the stated goals of this Section by written statement,
provided the City Manager cannot alter in any way the extent to which
City Council action is required hereunder.