City of Osage Beach, MO Purchasing, Procurement, Transfers, and Sales

Upon receipt of commodities the using department shall inspect and/or test all commodities upon delivery or pickup and shall confirm said commodities with supplier's receiving report against the original order. User departments shall exercise reasonable care to ensure quantity and quality of delivered goods is as ordered.

In the event non-conforming commodities are delivered due to non-conformance with the specifications ordered or for other reasons that are not acceptable to the using department the department shall notify the vendor immediately so appropriate corrective action may be taken. Documentation of action to remedy the situation shall be made and shall accompany the receiving report.

Payment.

An invoice is a vendor's statement of commodities or services provided and charges due from the City. Upon receipt of an invoice the using department's manager shall be responsible for appropriate classification and brief explanation of charges with documental approval by way of signature.

Department managers are responsible for reconciling all invoices for commodities or services purchased for said department. All reconciled invoices shall be accompanied with corresponding receiving report, bills of laden, order confirmations, or other verification of purchases and/or deliveries and forwarded to accounts payable for payment.

The office of the City Treasurer shall be responsible for recording expenditures and payment of invoices.

Credit cards. Upon authorization of the City Administrator, the Mayor, or the City Treasurer, employees may be issued a City credit card or purchasing card with a credit limit not to exceed five thousand dollars ($5,000.00) for the purpose of travel, training, and other authorized purchases related to City operations. The following regulations shall apply:

[Ord. No. 23.01, 3-2-2023]

No personal purchases, purchases not pertaining to City business, or cash advances shall be made;

All expenditures shall be conducted in accordance with the City's Purchase and Procurement Code as stated in this Chapter as well as any applicable Federal or State laws and/or regulations;

Department managers are responsible for his/her credit card and for the proper classification, retention of receipts and other appropriate verification of purchases and monthly reconciliation of all credit card expenditures.

Petty cash. The City Treasurer may create petty cash funds as needed within the City departments for the purpose of routine purchases of less than one hundred dollars ($100.00). The size of said funds shall be determined by the City Treasurer. The following regulations shall apply:

No personal or payroll checks shall be cashed;

All expenditures shall be conducted in accordance with the City Code as stated in this Chapter as well as any applicable Federal or State laws and regulations;

The manager of the using department shall be the authorized custodian of any petty cash funds established within their department and shall be responsible for authorizing reimbursements, ensuring classification of reimbursed expenditures, and replenishing the fund;

The using department shall request to the office of the City Treasurer replenishing funds on a regular basis;

Replenishment of funds shall only be made with valid receipt or other means of certifying an expenditure;

All petty cash funds shall be subject to unscheduled audits by the office of the City Treasurer. Petty cash audits shall be done at least annually.

Grants. Any proceeds from Federal, State, private, or other source grants shall be expended for the special purpose stated by the terms of said grant. Grant expenditures shall be made in accordance with the City's Purchase and Procurement Code as stated in this Chapter as well as any applicable Federal or State laws and regulations. All grants in which the City participates shall be administered by the City Administrator or his/her designee. All grants in which the City participates shall be tracked and reconciled by the City Treasurer or his/her designee.

Ethics. Any attempt to realize personal gain through elected office, public employment or any effort to influence any elected official or employee to disobey or divert from any law, City Code, or immoral standard is a breach in ethical standards.

Confidential information. It shall be a breach of ethical standards for any elected official, employee, or former employee, to knowingly use confidential information for actual or anticipated personal gain, or for actual or anticipated personal gain on behalf of another.

Conflicts of interest. Elected officials and employees are prohibited from participating directly or indirectly in a contract for purchase or sale when a conflict of interest exists as stated in Section 120.020. Upon discovery of actual or potential conflict of interest, an employee shall promptly file with the City Administrator or his/her designee a written statement as to the conflict. An elected official shall promptly file with the City Clerk a written statement as to the conflict.

Gifts and rebates. Gifts and/or rebates offered, given, or an agreement to offer or give, to any elected official or employee is prohibited. Gifts and/or rebates provided to all employees equally may be allowed when approved by the City Administrator or his/her designee.

Kickbacks. It shall be a breach of ethical standards for any payment, gratuity, offer of employment, or any other form of bribery to be made by or on behalf of a contractor or subcontractor under a contract to the City, or any person associated therewith, as an inducement for an award.

Personal purchases/discounts. Purchases for elected officials or employees by the City are prohibited. Elected officials or employees are also prohibited from using the City's name or the official's or employee's position to obtain special consideration in personal purchases. Corporate discounts that are offered by business firms to all City employees equally may be allowed when approved by the City Administrator or his/her designee.

Section 135.040 Purchasing and Procurement — Competitive Bidding.

[Ord. No. 15.96 §1, 12-17-2015]

Any purchases or contracts made shall be made only after liberal competition, unless defined otherwise.

Authority And Responsibilities Appropriated Within The Adopted Annual Budget.

[Ord. No. 21.34, 7-1-2021]

Amount	Authorization	Bid Procedure
Equal to/less than $2,500.00	Supervisor	Small purchases 135.040(C)(1)
Equal to/less than $10,000.00	Department Manager	Informal bids 135.040(C)(2)
Equal to/less than $15,000.00	Assistant City Administrator	Informal bids 135.040(C)(2)
Equal to/less than $25,000.00	City Administrator	Informal bids 135.040(C)(2)
Equal to/greater than $25,001.00	Board of Aldermen	Formal bids 135.040(D)

Informal Bidding.

[Ord. No. 21.34, 7-1-2021]

Small Purchases. Purchases that are equal to or less than two thousand five hundred dollars ($2,500.00) shall be obtained under the following guidelines:

Non-repetitive purchases not to exceed an aggregate amount of two thousand five hundred dollars ($2,500.00) may be made as approved by the Supervisor for his/her appropriate department. Purchases shall not be artificially divided to constitute a small purchase under this Section.

When reasonably possible, approval should be given prior to purchase.

All purchases not within their approved annual operating budget shall follow budget modification guidelines.

Such purchases under this Section shall not interfere with the procurement of items in an existing contractual obligation, services or items already within a cooperative contract with another agency, or for other items of procurement through another established City policy.

Informal Purchases. Purchases equal to or greater than two thousand five hundred one dollars ($2,501.00) and up to twenty-five thousand dollars ($25,000.00) shall be obtained under the following guidelines:

Department Managers. Purchases procured by individual departments that are equal to or greater than two thousand five hundred one dollars ($2,501.00) and up to ten thousand dollars ($10,000.00) shall be approved by the Department Manager for his/her appropriate department.

Assistant City Administrator. Purchases procured by individual departments under the direct supervision of the Assistant City Administrator up to fifteen thousand dollars ($15,000.00) shall be approved by the Assistant City Administrator.

City Administrator. The City Administrator may approve purchases up to twenty-five thousand dollars ($25,000.00).

Competitive quotations shall be solicited and documented from more than one (1) qualified supplier. Verbal quotes are authorized. Methods of soliciting bids should include direct mail request to prospective vendors; fax or phone requests; and/or electric media requests, such as email or other online formats.

If fewer than two (2) proposals from qualified vendors are received, staff recommendation shall be brought to the Board of Aldermen for approval.

The City Administrator or his/her designee may also choose to advertise using the formal bidding procedures if it is deemed by the City Administrator to be in the best interest of the City.

All purchases not within their approved annual operating budget shall follow budget modification guidelines.

When reasonably possible, appropriate approval should be given prior to purchase.

Purchases shall not be artificially divided to constitute an informal purchase under this Section.

Formal Bidding.

Formal. Purchases and contracts equal to or greater than twenty-five thousand and one dollars ($25,001.00) shall be approved by the Board of Aldermen under the following guidelines:

[Ord. No. 21.34, 7-1-2021]

Bidding method. Purchases and contracts shall be procured through formal competitive sealed bidding procedures unless it is determined, in writing, by the City Administrator or his/her designee that this method is not practical. Factors for this determination include:

Specifications of the bid can be prepared to permit the award on the basis of either the lowest or the lowest evaluated bid price(s); and/or

The specifics of the purchase such as supplies, time, place and/or performance are not appropriate for the use of competitive sealed bidding.

Public notice.

An Invitation for Bid (IFB) shall be published, stating a general description, once in at least one (1) local newspaper of the general circulation and on site at City Hall and electronically via the City's website no less than fifteen (15) calendar days prior to stated bid opening.

Notice of the bid invitation shall be sent, stating a general description, to all prospective bidders who have requested their names be added to the bidder's list on file with and maintained by the office of the City Clerk pertaining to all published IFBs.

Bid opening.

Sealed bids shall be delivered to and held by the office of the City Clerk who shall conduct the public bid opening at said date and time established by the formal notice.

The names of the bidders, the prices, and the items offered, shall be recorded by the office of the City Clerk and be posted for public inspection. The delivery terms, and/or other bid specifications items shall be recorded by the user department manager.

Evaluation.

All bids are evaluated against the criteria included in the bid specifications as formally advertised.

The user department manager and/or City Administrator shall review all bids recorded by the office of the City Clerk.

The user department manager shall check and document at least three (3) references of any proposed awardee which has previously not done business with the City within a 4-year period.

(4)

Changes to the bids or the IFB are not allowed after opening of the bids.

(5)

A contract modification may be made only after formal approval of the contract.

(6)

A pending contract modification may not be considered in evaluating procurement.

Award.

The Board of Aldermen may accept and/or reject any or all bids and shall make the final award as determined to be the most advantageous to the City, taking into consideration price, bid solicitation and specifications.

The City Administrator or his/her designee shall give written notification of award to the successful bidder.

Non-responsive and unacceptable bids.

The City may reject any bid which is materially non-responsive to the requirements set forth in the formal bid specifications.

The City Administrator may re-solicit bids if bids received as a result of a solicitation for bids are not acceptable for any reason. Such re-solicitation shall not be for the purpose of directing the award to particular bidder.

Prohibitions.

Competitive price sharing. Otherwise known as 'auctioneering,' price/cost sharing between vendors is prohibited when soliciting bids either in informal or formal, verbal or written, bid soliciting.

Contract splitting. Contracts shall not otherwise be divided or split to constitute small quantities and/or amounts or divided into artificial phases or sub-contracts for the purpose of circumventing the requirements of formal bidding.

Records. The office of the City Clerk shall keep records of all bids and all contracts awarded which shall be open for public inspection. The office of the City Treasurer shall keep all invoice and payment records.

Section 135.050 Purchasing and Procurement — Competitive Proposals.

[Ord. No. 15.96 §1, 12-17-2015]

Authority And Responsibilities. Appropriated within the adopted annual budget.

[Ord. No. 21.34, 7-1-2021]

	Amount	Authorization
	Equal to/less than $10,000	Department Manager
	Equal to/less than $15,000	Assistant City Administrator
	Equal to/less than $25,000	City Administrator
	Equal to/greater than $25,001	Board of Aldermen

Department Managers. Purchases procured by individual departments that are equal to or less than ten thousand dollars ($10,000.00) shall be approved by the Department Manager for his/her appropriate department.

City Administrator. The City Administrator may approve purchases up to twenty-five thousand dollars ($25,000.00).

Purchases and contracts equal to or greater than twenty-five thousand one dollars ($25,001.00) shall require the approval of the Board of Aldermen.

If fewer than two (2) proposals from qualified vendors are received, staff recommendation shall be brought to the Board of Aldermen for approval.

All purchases not within their approved annual operating budget shall follow budget modification guidelines.

Conditions For Use.

Request for Qualifications (RFQ). RFQs may be used in lieu of competitive bidding procedures where it is necessary to demonstrate competence and qualifications for the type of services required. Price shall not be a factor in determining the best proposal. The City Administrator or his/her designee shall negotiate these contracts on the basis of predetermined criteria as outlined in Section 8.285 to 8.291, RSMo.

RFQ uses:

Required professional services; includes, engineers, architects, and land surveyors.

Optional professional services; includes legal and financial services.

Request for Proposal (RFP). RFPs may be used in lieu of competitive bidding procedures under specific circumstances where it is necessary to ensure fair and reasonable price, product, and/or service analysis, but not to prevent competition for technical superiority or price. This method allows for the possibility for negotiations of specific applicable conditions and is only used when competitive bidding is not practical or not advantageous to the City as determined by the City Administrator or his/her designee.

RFP may be used for the following:

Optional professional services; including, but not limited to, legal, financial services, and other professional people who, in keeping with the standards of their discipline, will not enter into a competitive bidding process;

Complex services; or

Non-standard items.

Public Notice.

Notice of a proposal invitation shall be published, stating a general description, once in at least one (1) local newspaper of the general circulation and on site at City Hall and electronically via the City's website no less than fifteen (15) calendar days prior to stated proposal opening.

Competitive proposal packets may be mailed to proposers who have participated in previous competitive proposal on similar items and/or who have expressed an interest on the specific item and who are on the prospective bidder's list on file with the office of the City Clerk. Notice of the invitation shall be sent, stating a general description, to all prospective bidders who have requested their names be added to the bidder's list on file with and maintained by the office of the City Clerk pertaining to all competitive proposal published.

Proposal Opening.

Sealed proposals shall be delivered to and held by the office of the City Clerk at said date and time established by the formal notice.

The names of each proposer shall be recorded by the office of the City Clerk and shall be posted for public inspection.

Post-Opening Proposal Discussion. Post-opening negotiations, discussions, and clarifications may be made with each proposer by the user department manager and/or the City Administrator or his/her designee as needed to the extent of one's own proposal.

Evaluation.

The evaluated criteria shall be predetermined factors as formally advertised which measure the differences on how well a proposer meets the desired qualifications and performance characteristics.

Reasonableness and credibility of price may be considered. Pursuant to Section 8.285 to 8.291 RSMo., price cannot be a factor in the selection of engineers, architects, and land surveyors.

The user department manager and/or City Administrator shall review all proposals recorded by the office of the City Clerk.

The user department manager shall check and document at least three (3) references of any proposed awardee which has previously not done business with the City within a 4-year period.

Changes to the proposal are not allowed after opening of the proposals.

Contract modification may be made by the Board of Aldermen only after formal approval of the contract.

A pending contract modification may not be considered in evaluating procurement.

Award.

[Ord. No. 21.34, 7-1-2021]

The City may accept and/or reject any or all proposals and shall make the final award as determined to be the most advantageous to the City.

The City Administrator or his/her designee shall give written notification of award to the successful proposer.

Non-Responsive And Unacceptable Proposals.

The City may reject any proposal which is materially non-responsive to the requirements set forth in the formal specifications.

The City Administrator may re-solicit proposals if proposals received as a result of a solicitation are not acceptable for any reason. Such re-solicitation shall not be for the purpose of directing the award to a particular proposer.

Records. The office of the City Clerk shall keep records of all competitive proposals and such records shall be open for public inspection.

Section 135.060 Purchasing and Procurement — Correction/Withdrawal/ Cancellation.

[Ord. No. 15.96 §1, 12-17-2015]

Bids or proposals may be revised, modified, or withdrawn by the bidder/proposer at any time by written or electronic notice received by the office of the City Clerk prior to the opening.

After bid or proposal opening, bid/proposal documentation shall be irrevocable as to preserve fair competition.

Bids, proposals, or other solicitation for purchases or procurements may be cancelled or rejected if it is determined by the City Administrator or his/her designee that such action is in the best interest of the City. This determination shall be in writing and shall be kept in the contract and/or final purchase/invoice file.

Section 135.070 Purchasing and Procurement — Cooperative Purchasing/Sole Source Procurement/Emergency Purchases.

[Ord. No. 15.96 §1, 12-17-2015]

Cooperative Purchasing. It is the goal of the City to participate in the cooperative procurement program with the State of Missouri, the County of Camden and/or Miller, or other governmental body. In lieu of purchasing requirements set out in this Chapter, purchasing may be authorized based on bids received by another governmental entity, provided that all of the following criteria are met:

The other governmental entity must have competitively bid the purchase using procedures which are substantially similar to the procedures which would have been required by this Chapter had the City of Osage Beach bid the purchase itself.

Verification can be made as to the fact that the bid procedures were indeed followed by the other governmental entity.

The successful bidder to the other governmental entity must state, in writing, to the City of Osage Beach that the City of Osage Beach is authorized to make the same purchase at the same price.

Authority And Responsibilities Appropriated Within The Adopted Annual Budget.

[Ord. No. 21.34, 7-1-2021]

Amount	Authorization
Equal to/less than $2,500.00	Supervisor
Equal to/less than $10,000.00	Department Manager
Equal to/less than $15,000.00	Assistant City Administrator
Equal to/less than $25,000.00	City Administrator
Equal to/greater than $25,001.00	Board of Aldermen

Supervisors. Purchases procured by individual departments that are equal to or less than two thousand five hundred dollars ($2,500.00) may be made as approved by the supervisor for his/her appropriate department.

Department Managers. Purchases procured by individual departments that are equal to or less than two thousand five hundred one dollars ($2,501.00) and up to ten thousand dollars ($10,000.00) shall be approved by the Department Manager for his/her appropriate department.

City Administrator. The City Administrator may approve purchases up to twenty-five thousand dollars ($25,000.00).

Purchases and contracts equal to or greater than twenty-five thousand one dollars ($25,001.00) shall require the approval of the Board of Aldermen prior to purchase.

All purchases not within their approved annual operating budget shall follow budget modification guidelines.

When reasonably possible, appropriate approval should be given prior to purchase.

Sole Source Procurement. A contract may be awarded without competition when it has been determined by the City Administrator that there is only one (1) feasible source.

Defined. A sole source is defined as follows:

Proprietary. When there is no substitute for items deemed necessary or a product is only available from one (1) manufacturer or single distributor; and/or

History. When the City purchases from the same vendor as it has in the past for the purpose of staying consistent.

Procedure and records.

Appropriate negotiations shall determine price, delivery, and other terms necessary for purchase.

Determination of sole source shall be documented and made part of the purchase/invoice file.

The user department manager shall check and document at least three (3) references of any proposed awardee which has previously not done business with the City within a 4-year period.

Authority And Responsibilities Appropriated Within The Adopted Annual Budget.

[Ord. No. 21.34, 7-1-2021]

Supervisors. Purchases procured by individual departments that are equal to or less than two thousand five hundred dollars ($2,500.00) may be made as approved by the Supervisor for his/her appropriate department.

Purchases and contracts equal to or greater than twenty-five thousand one dollars ($25,001.00) shall require the approval of the Board of Aldermen.

All purchases not within their approved annual operating budget shall follow budget modification guidelines.

When reasonably possible, approval should be given prior to purchase.

Emergency Purchases.

[Ord. No. 21.34, 7-1-2021]

Defined. An emergency is a disaster declared by the Mayor or when a breakdown in machinery or equipment or termination of essential services that may vitally affect the health, safety, or welfare of the employees or the public.

Authority And Responsibilities. The approval authority is set forth as follows:

City Administrator. Approval of emergency purchases equal to or less than fifty thousand dollars ($50,000.00).

Board of Aldermen. City Administrator or his/her designee shall obtain approval of emergency purchases equal to or greater than fifty thousand and one dollars ($50,001.00) at the next Board of Aldermen meeting, if time permits, or by means of a concentrated effort to poll the Board of Aldermen to obtain an agreement of the majority.

Section 135.080 Transfers and Sales.

[Ord. No. 15.96 §1, 12-17-2015]

Disposal Of City Property.

Authority. The City Administrator shall be responsible for the effective disposal of all surplus property of the City.

Annually, or as needed, all departments shall submit to the City Administrator or his/her designee a detailed report of City property to be declared surplus. The report shall be the responsibility of the department manager from which the stated property was last assigned and shall include a detailed description of the property including any surveys, drawings, appraisals, photos, or any other identifying and/or descriptive information that may be pertinent to the disposal of the stated property.

The City Administrator or his/her designee shall provide a report to the Board of Aldermen of all property deemed surplus and the recommended method of disposal.

Property deemed surplus may be disposed of in the following methods:

Transfer. The City Administrator or his/her designee may notify all departments of surplus property on hand for disposal. A department manager may submit a request to the City Administrator or his/her designee stating the interest in and the reasons for need in stated surplus property from the other City department. The City Administrator may approve the transfer of surplus items between City departments based on current need of said department;

Trade-in. When a department is replacing its surplus property with a like-kind item(s) the City Administrator or his/her designee may approve the possible trade-in of stated property. The IFB shall request prices with or without the stated trade-in and should indicate that the award may be made on either basis. The City Administrator or his/her designee shall compare the stated trade-in value versus the expected sale price based on current market evaluations and shall determine the best method of disposal;

Sale. Sale of surplus property requires Board of Aldermen approval and may be handled by the following methods:

Sale by auction. Auction, including online auction venues, shall be publicly advertised to include a general description of the item(s) to be sold, method of auction, and shall be placed in at least one (1) local newspaper of general circulation and on site at City Hall and electronically via the City's website no less than fifteen (15) calendar days prior to sale's end date and time. Items shall be sold to the highest registered bidder;

Sale by sealed bids. Public notice shall be made of the sale which shall include a general description of the item(s) to be sold and placed in at least one (1) local newspaper of general circulation and on site at City Hall and electronically via the City's website no less than fifteen (15) calendar days prior to sale's end date and time. Sealed bids shall be delivered to and held by the office of the City Clerk who shall conduct the bid opening at said date and time established by the formal notice;