[Adopted 12-8-2009 by Ord. No. 302]
[Amended 2-22-2023 by Ord. No. 399]
The Village President shall act as the designated Purchasing
Agent of the Village, unless the Village Council, by a majority resolution,
designates another person to act as the Purchasing Agent. Any designation
beyond the Village President shall be filed in writing with the Clerk.
Unless otherwise allowed under this article, every purchase, purchase
order or expenditure in excess of $4,000 shall be approved by the
Village Council before being made/issued. The Village Council shall
adopt any necessary rules governing the terms of such purchases. Under
no circumstance shall the Purchasing Agent divide, change or alter
purchases for the purpose of lowering the amount of any purchase below
the $4,000 threshold.
[Amended 2-22-2023 by Ord. No. 399]
Purchases of supplies, materials or equipment, the total cost
of which is less than $4,000, shall be made on the open market. Such
purchases shall, where practicable, be based upon at least three competitive
bids, and shall be awarded to the lowest qualified bidder. The Village
President, or person designated by the Village Council as the Purchasing
Agent, may solicit bids verbally by telephone or request written bids.
Where written bids are solicited, such bids shall be kept by the Village
as a public record for six months after purchase is completed. The
Village and the designated Purchasing Agent reserve the right to reject
any and all bids, written or otherwise.
[Amended 2-22-2023 by Ord. No. 399]
Any expenditure for supplies, materials, equipment, construction projects or contracts obligating the Village in an amount in excess of $4,000 shall be governed by the provisions of this §
89-3 and its subsections:
A. Such expenditures shall be made the subject of a written and reviewed
contract when directed by the Village Council. A purchase order, with
all supporting documentation, shall be a sufficient written contract
in cases where the expenditure is in the usual and ordinary course
of the Village's affairs. The Village shall adopt and maintain a "purchase
order policy" which sets forth the minimum requirements for a valid
purchase order. This policy shall be approved by the current Village
CPA to ensure that the policy fulfills the needs of the audit process
and is defined in a way to ensure compliance. Any person, department
head or entity submitting a purchase order under this article must
comply with the policy and noncomplying purchase orders shall be rejected
unless good cause is demonstrated to the Village Council and the Village
Council votes, by a majority, to approve the purchase order as is.
B. The Village Council, or a person designated by it, shall solicit
bids from a reasonable number of such qualified prospective bidders
as are known, by sending each a copy of the notice requested bids
and notice thereof shall be posted in the Village Hall. Bids may also
be solicited by newspaper advertisement when directed by the Village
Council.
C. The Village Council shall prescribe the amount of any security to
be deposited with any bid, which deposit shall be in the form of cash,
certified or cashier's check, or bond written by a surety company
authorized to be business in the State of Michigan and otherwise acceptable
to the Village Council. The amount of such security shall, when possible,
be expressed in terms of percentage of the bid submitted. The Village
Council shall fix the amount of the performance bond, and in the case
of construction contracts, the amount of the labor and materials bond
to be required of the successful bidders.
D. Bids shall be opened in public at the time and place designated in
the notice requesting bids and in the presence of either the Village
Council or the Village Clerk and at least one other Village Official,
preferably the head of the department most closely concerned with
the subject of the contract. In the event that the bids are not opened
in the presence of the Village Council, the bids shall thereupon be
carefully examined and tabulated and reported to the Village Council.
After tabulation, all bids may be inspected by the competing bidders.
E. When such bids are submitted to the Village Council, if the Council
shall find any of the bids to be satisfactory and in compliance with
the request, it shall accept the bid. Such award may be by a written
resolution or ordinance. The Village Council shall have the right
to reject any or all bids, and to waive irregularities in bidding,
and to accept bids which do not conform in every respect to the bidding
requirements, all in the best interests of the Village.
F. At the time any contract is executed, the contractor shall file a
bond executed by a surety company authorized to do business in the
State of Michigan and otherwise acceptable to the Village Council
to the Village conditioned to pay all laborers, mechanics, subcontractors
and material men, as well as all just debts, dues and demands incurred
in the performance bond when one is required. Said contractor shall
also file evidence of public liability insurance in an amount satisfactory
to the Village Council and agree to hold the Village harmless from
loss or damage caused to any person or property by reason of the contractor's
negligence.
G. All bids and deposits of certified or cashier's checks may be retained
until the contract is awarded and signed. If any successful bidder
fails or refuses to enter into the contract awarded to him within
10 days after the same has been awarded, or file any bond required
within the same time, the deposit accompanying his bid shall be forfeited
to the Village, and the Village Council may, in its discretion, award
the contract to the next lower qualified bidder, or said contract
may be readvertised.
[Amended 2-22-2023 by Ord. No. 399]
Competitive bidding shall not be required in the following situations:
A. Where the subject of the contract is other than a public work or
improvement costing in excess of $4,000, and the product, service
or material contracted for is not competitive in nature and no advantage
to the Village would result from requiring competitive bidding or
the Village Council authorizes execution of a contract without competitive
bidding by an approved motion of the Council.
B. In the employment of professional services.
C. Where the Village Council determines that the public interest will
be best served by purchase from, or a joint purchase from another
unit of government.
D. Where the Village elects to undertake the work itself.
In case of an emergency, the Village President or the Purchasing
Agent may purchase directly any supplies, materials or equipment,
the immediate procurement of which is necessary to the continuation
of the work of any Village Department, or which is necessary for the
health, safety and welfare of the Village, or its inhabitants. In
the event any emergency purchases are made in accordance with this
section, a detailed report shall be made by the Village Clerk or the
person requesting said emergency purchases, and shall be preserved
by the Village Clerk for a period of two years. A report of all such
purchases shall be made to the Village Council by the Village Clerk
at the next regular meeting of the Village Council.
The responsibility for the inspection and acceptance of all
materials, supplies and equipment shall rest with the Village Department
for which said materials, supplies or equipment have been ordered.
Whenever any Village property, real or personal, is no longer
needed for corporate or public purposes, the same may be offered for
sale in the following manner, except as otherwise provided by law:
A. Personal property, not exceeding $1,500 in value, may be sold for
cash by the Village President or another person designated by the
Village Council after receiving quotations or competitive bids therefor
for the best price obtainable.
B. Personal property with a value in excess of $1,500 may be sold after advertising and receiving competitive bids as provided in §
89-3 hereof.
C. Real property having an assessed value less than $1,500 may be sold
in the same manner as personal property of a value of $1,500 or less.
D. Real property having an assessed value of over $1,500 shall be subject to the provisions of §
89-3 hereof, unless otherwise provided by the General Laws of the State of Michigan.
The Village recognizes that it must function as a business and
the timely payment of certain bills is in the best interest of the
Village. The Village President is authorized to make such payments
in the ordinary course. Such expenditures include monthly utilities,
rents by contract, employment obligations, Council-approved contracts,
etc. These bills shall be paid timely to avoid late fees and interest.
A report of "bills as paid" shall be made to the Village Council.
[Adopted 3-11-2014 by Ord. No. 321]
The following words, terms and phrases, when used in this article,
shall have the meanings ascribed to them in this section, except where
the context clearly indicates a different meaning:
RECURRING FLUCTUATING INVOICE
Those invoices regularly paid by the Village on a regular
basis but which the specific amount is not ascertainable at the time
of the regularly scheduled Council meeting preceding the usual payment
date and which may cause the Village to incur additional costs and
expenses if approval of such payment does not occur until the Council
meeting following receipt of the specific amount.