City of Excelsior Springs, MO
Clay County
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Table of Contents
Table of Contents
Editor’s Note: Ord. No. 16-08-05 set out procurement policies that only apply to procurement under Missouri Department of Transportation Grants. This ordinance can be found on file in the City offices.
[Ord. No. 20-06-08, 6-15-2020[1]]
A. 
This policy provides guidelines to be followed in purchasing goods and services for the City of Excelsior Springs, Missouri. The City Manager shall be responsible for enforcing this policy. These policies are intended to promote increased efficiency, standardization of purchasing procedures while obtaining supplies, equipment, and services as economically as possible.
B. 
All purchasing will demonstrate a reasonable and good faith effort to obtain goods and services at the lowest possible cost with the optimum quality needed. Competition among suppliers shall be encouraged.
[1]
Editor's Note: Former Chapter 165, Purchasing Policy, which derived from Ord. No. 13-01-01, was repealed 6-15-2020 by Ord. No. 20-06-08.
[Ord. No. 20-06-08, 6-15-2020]
As used in this Chapter, the following terms shall have these prescribed meanings:
CONTRACT
Any type of agreement, regardless of what it may be called, for the procurement or disposal of supplies, services, or construction.
INVOICE
Actual billing received from the vendor. Invoices must indicate the following to be processed for payment:
1. 
Account coding/project number/transaction types if applicable.
2. 
Invoice number.
3. 
Invoice total.
4. 
Purchase order number (if previously encumbered).
5. 
Description of purchase.
6. 
Department head approval.
LOWEST AND BEST
Used in non-construction, competitive bidding, such as equipment, professional services, and supplies. An evaluation is completed that weighs the amount of the bid with factors such as ability to perform, timeliness, character and reputation, quality of past performance, compliance with laws, quality and availability, future maintenance and services, and compliance with bid specifications. Reviewer may "score" bidders based on weighting that reflects which criteria is most important to them. There must be written documentation to support the selection.
PURCHASE ORDER
A document issued by the accounting system that can be shared with the vendor and shows that a financial obligation exists. A purchase order should not be generated until all of the appropriate approvals have been obtained.
PURCHASE REQUISITION
An internal document generated by the accounting system which documents items being purchased, quotations, and various approvals.
[Ord. No. 20-06-08, 6-15-2020]
A. 
Consideration should be given for goods and services purchased by the City from merchants and business owners located in the City, unless:
1. 
Such goods of like quality and services are not available in the City, or
2. 
The cost of such goods and services plus shipping and handling may be purchased outside the City at a savings of five percent (5%) or more; or
3. 
An emergency exists and such goods or services are not immediately available in the City;
4. 
State/Federal requirements are such to require lowest bid.
5. 
All purchases shall give preference to Excelsior Springs vendors where maintenance and warranty requirements make purchasing from local vendors more cost effective.
[Ord. No. 20-06-08, 6-15-2020]
A. 
It is the policy of the City to encourage the purchase of products manufactured or assembled or produced in the United States.
B. 
The Mayor shall certify, in writing, pursuant to the Missouri Domestic Products Procurement Act that the City has adopted a formal written policy to encourage the purchase of products manufactured, assembled, or produced in the United States.
C. 
It is the intent of the City Council that, by virtue of the adoption of the policy stated in this Section, Section (3) of the Missouri Domestic Products Procurement Act shall not apply to the City, pursuant to the provisions of that Act.
D. 
State and Federal purchasing requirements may or may not require the purchase of American goods, but may require the use of the least expensive goods regardless of where those goods are manufactured. In the event that State or Federal dollars are involved, the appropriate guidelines must be used.
[Ord. No. 20-06-08, 6-15-2020]
A. 
All contracts and agreements over three thousand five hundred dollars ($3,500.00) which obligate the City to expend funds shall be in writing and approved as required by this policy prior to delivery of supplies or services. A properly approved purchase order accepted, in writing, by the vendor is sufficient unless the contract requires periodic payments by the City after goods or services are delivered or performed or is for professional services.
B. 
All contracts for fifteen thousand dollars ($15,000.00) or more shall be approved by the City Council as evidenced by ordinance or resolution appearing in the record of proceedings.
[Ord. No. 20-06-08, 6-15-2020]
A. 
In the event that there is only one (1) firm, company or individual capable of providing a particular service or supplies, requirements contained above shall not be applicable and the City Manager is authorized to proceed with the purchase of such services or supplies as are required by the City within the approval levels set forth later in this Chapter. The determination that there is only one (1) source for the required service or supplies must be made, in writing, by the requesting Department Head and approved by the City Manager and Finance Department. Bid specifications which restrict the responsive bids to a sole source of goods or services must be approved as provided herein for sole source purchasing.
B. 
The following items may be approved for sole source procurement:
1. 
Interface upgrades, add-on parts and components to existing, City-owned equipment that requires total compatibility assurance; license renewals for City-owned software and repair and maintenance for City-owned equipment and software for which it is technologically and cost effective to procure from the original seller or manufacturer;
2. 
Materials for resale in City concession operations that are purchased in response to customer demands;
3. 
Spot market purchases that are evidenced to provide a substantial savings to the City and that are approved by the City Manager and Finance Department. Any purchase of a dollar amount requiring City Council approval shall be submitted for review at the next scheduled City Council meeting; or
4. 
Specialized computer software for network applications that have been technically reviewed, tested, and justified by the City Manager or designee and that are obtainable from a single source. This shall not apply to individual PC software obtainable from multiple suppliers.
[Ord. No. 20-06-08, 6-15-2020]
No contract shall be subdivided to avoid the requirements of this policy.
[Ord. No. 20-06-08, 6-15-2020]
A. 
The City Manager or designated representative may authorize emergency procurement of supplies, services, or construction items when there exists a threat to public health, welfare, or safety; or when immediate repair is necessary to prevent further damage to public property, machinery, or equipment; or when City operations will be adversely affected as determined by the City Manager or designated representative. Such purchase should be made at the lowest obtainable price and should, if possible, be procured on an existing purchasing contract on a timely basis. Emergency purchases shall be made with as much competition as practical under the circumstances.
B. 
During periods of a "declared City emergency" by the Mayor, purchases may be made in accordance with the City Emergency Operations Plan.
[Ord. No. 20-06-08, 6-15-2020]
The City Manager shall have the authority to join with other units of government in cooperative purchasing when the best interest of the City would be served. The requirements of this Section therefore, relative to competitive bidding, shall not apply to purchases made through or with the State of Missouri or any other governmental jurisdiction which operates a cooperative procurement program and will allow the City to purchase goods or services that the jurisdiction has made available following the completion of its own internal purchasing procedures.
[Ord. No. 20-06-08, 6-15-2020]
The competitive bidding requirements of this Section shall not apply to professional services and the requirements herein shall not be required in the employment of professional services, including, but not limited to, physicians, attorneys, engineers, certified public accountants, planners, and land surveyors. The City Manager is authorized to request proposals from capable professionals within a required discipline. In securing professional services, it is the primary goal of the City to obtain the services of a professional who has a proven record of providing, in a professional way, those services required. The City Manager shall make a recommendation to the City Council for the procurement of professional services when the fee for such services will exceed fifteen thousand dollars ($15,000.00).
[Ord. No. 20-06-08, 6-15-2020]
A. 
No officer or employee of the City shall participate in a contract for supplies or services when that person knows that:
1. 
The officer or employee or any member of the officer's or employee's immediate family has a financial interest pertaining to the contract; or
2. 
A business or organization in which the officer or employee, or any member of the officer's or employee's immediate family, has a financial interest pertaining to the contract.
3. 
Any contract in which any officer or employee of the City has a financial interest, directly or indirectly, shall be void, except when the contract is awarded as a result of open bidding.
B. 
Every officer and employee of the City shall not directly or indirectly solicit any gift or accept or receive any gift, whether in the form of money, services, loans, promises or any other form, under circumstances in which it could reasonably be inferred that the gift was intended to influence them, or could reasonably be expected to influence them, in the performance of their official duties or was intended as a reward for any official action on their part.
C. 
No City employee or official shall have a financial interest in any purchase or contract issued by the City. Accepting gratuities in exchange for preferential treatment is strictly prohibited. Any discounts, free merchandise or prizes given as the result of City purchases become the property of the City.
[Ord. No. 20-06-08, 6-15-2020]
A. 
Situations when competitive bidding is required:
1. 
City officials are prohibited from selling or providing services to the City in excess of five hundred dollars ($500.00) per transaction or five thousand dollars ($5,000.00) in one (1) year, unless public notice is given and bids are submitted. The official must submit the lowest bid or offer in order to be awarded the contract.
2. 
Entering into an agreement with a risk management fund in accordance with Section 376.696, RSMo.
3. 
Purchase of health insurance in compliance with Section 67.150, RSMo.
4. 
Work under special assessment as authorized by Chapter 88, RSMo.
5. 
Use of Construction management services in accordance with Section 8.679, RSMo.
6. 
As required pursuant to Section 165.130 of this Chapter.
B. 
Competitive sealed bidding requires publicly solicited sealed bids and a firm-fixed price lump sum or unit price contract is awarded to the responsible bidder whose bid, conforming to all the material terms and conditions of the advertisement for bid, is the lowest and best bid. To facilitate competitive bidding, a list of prospective contractors for each type of activity should be invited to bid.
Public solicitation shall include posting of the bid solicitation on the City's website and notification of bidders listed on the City's public bidder's list and placement in plan rooms to ensure solicitation from an adequate number of known suppliers, providing them sufficient time prior to the date set for opening the bids. All bids must be opened publicly at the time and place stated in the invitation to bid.
C. 
Construction (Public Works) Project Contracts. Project specifications and bid documents shall be prepared in writing and City Attorney review is required for liability purposes.
1. 
Prevailing wage rates required on construction of public works for projects over seventy-five thousand dollars ($75,000.);
2. 
Work authorization required for contracts in excess of five thousand dollars ($5,000.00);
3. 
Bid bonds for contracts exceeding twenty-five thousand dollars ($25,000.00), equivalent to five percent (5%) of bid price;
4. 
Contracts over twenty-five thousand dollars ($25,000.00) to provide performance bond for one hundred percent (100%) of contract;
5. 
Contracts over fifty thousand dollars ($50,000.00) to provide payment bond for one hundred percent (100%) of contract.
[Ord. No. 20-06-08, 6-15-2020]
A. 
Department Heads must maintain records that document the rationale for the method used for procurement, selection of the contract type, contractor selection or rejection, and the basis for the selection including cost or price. In addition, all contracts, other than purchases under ten thousand dollars ($10,000.00), shall contain provisions, which describe administrative, contractual, or legal remedies when contractors violate contract terms and provide for appropriate damages.
B. 
Table A-10, set out in Section 165.150 of this Chapter, establishes bidding process requirements, purchase order requirements, and approval levels.
[Ord. No. 20-06-08, 6-15-2020]
A. 
Purchases of the following consumable items are exempted from the approval portions of this policy as long as monies are available in the budget to fund the purchase:
1. 
Gasoline and diesel fuel;
2. 
Sodium hypochlorite;
3. 
Lime;
4. 
Carbon Dioxide;
5. 
Salt and sand for snow removal.
This list is to be narrowly construed — only items specifically listed are exempted. Purchase orders should still be issued for these purchases. In addition, any equipment or vehicle purchases involving the trade in of like equipment are exempted from only the purchase order requirements but are subject to the approval portions of this policy. The reason these items are exempted from the purchase order system is that the system will not allow for the recording of trade-in value to a revenue account.
B. 
Change Orders. Notwithstanding any provision of the City Code to the contrary, the City Manager may approve change orders, whether singularly or in the aggregate, for any contract up to an amount equal to fifteen thousand dollars ($15,000.00), as well as no-cost change orders, provided that the change order does not materially alter the purpose of the contract and sufficient funds are available in the current year's budget. The City Manager shall report all change orders to the City Council within thirty (30) days of their approval.
C. 
Notwithstanding any provision of the City Code to the contrary, the City may, upon approval of the City Council, enter into any contract for the purchase of goods or services without utilizing the bidding procedures as herein described, when the City Council determines that such contract is in the best interest of the City.
[Ord. No. 20-06-08, 6-15-2020[1]]
A. 
Purchasing Policy Requirements.
1. 
Contracts:
a. 
Must be in writing.
b. 
Must be approved in accordance with the policy below.
B. 
Approvals And Purchase Order Requirements.
Dollar Value
Phone Quotes
Competi-tive Quotes
Sealed Bids
Budget Monies Available
Purchase Order Required
Depart-ment Head Approval
Finance Depart-ment Approval
City Manager Approval
City Council Approval
< $250.00
$250.01 to $999.99
$1,000.00 to $3,500.99
$3,501.00 to $7,499.99
$7,501.00 to $9,999.99
$10,000.00 to $14,999.99
$15,000.00 +
C. 
Note that local vendors receive preference if the cost they quote is within five percent (5%) of the lowest price quoted
[1]
Editor's Note: With supplement #22, the City provided a corrected version of the material found herein after finding that the original version supplied for codification was not correct. We have updated to the corrected copy.