[R.O. 1992 § 120.010; Ord. No.
2565-15 § 1, 9-15-2015]
A.
Purchasing And Sales Policy.
1.
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.
2.
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.
3.
Basic Goals. The basic goals of the City are:
a.
To comply with all applicable Federal, State and local legal
requirements.
b.
To assure vendors and buyers that impartial and equal treatment
will be afforded to all who wish to do business with the City.
c.
To maximize the value realized for each public dollar spent
and for public property.
d.
To obtain goods and services at the time and place needed in
the proper quantity and quality.
e.
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.
B.
APPROPRIATION
AUTHORIZED PURCHASER
BUDGET
CONSTRUCTION
CONTRACT
COOPERATIVE PURCHASING AGREEMENT
COST COMPARISONS
DEPARTMENTS
EXISTING PURCHASING CONTRACT
FORMAL WRITTEN BID
ITEM
MATERIAL VALUE
OPEN MARKET SALE
PROCUREMENT
PURCHASE ORDER
QUOTATION
REQUISITION
SCOPE OF SERVICES
SPECIFICATIONS
Definitions. The following terms shall be defined as stated for purposes
of this Chapter:
The legal authorization of monies for anticipated or incurred
expense.
An approved employee of the City who has been nominated by
a Department Director and appointed by the City Administrator to make
purchases at a specified monetary level on behalf of the City. The
Deputy City Clerk shall maintain the list of authorized purchasers
as supplied by the Department Directors.
A document which sets forth proposed revenues and expenses
to be incurred during a fiscal year for the various City operations.
The process of building, altering, repairing, improving or
demolishing any public structure or facility or other public improvement
of any kind.
A legally binding promise enforceable by law and, generally,
in writing.
A legally binding contract approved by the Board of Aldermen
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.
An informal analysis of the amounts paid or requested for
a product or service accomplished through personal contact, printed
or digital media.
Includes administration, police, fire, water, wastewater
treatment plant, street, airport, and parks and recreation.
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.
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.
A product, material or service.
The value of an item to be purchased or sold, to be determined
in the first instance by the Department Director.
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.
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.
An offer to make a contract between the City and a vendor.
The contract is not binding until it is accepted by the vendor.
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.
An internal document by which a department sends details
of supplies, services or material required to the Administration Department,
including documentation of authority to commit funds for the purchase.
A detailed description of the tasks to be performed.
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.
[R.O. 1992 § 120.020; Ord. No.
2565-15 § 1, 9-15-2015]
A.
The City Administrator shall have the discretion to direct payment of an invoice so long as the transaction was approved in compliance with Section 140.030. Any other invoice shall require review and approval by the Board of Aldermen prior to payment.
B.
At the first monthly regularly scheduled Board of Aldermen meeting,
the City Administrator shall provide a list of all invoices which
have been received.
[R.O. 1992 § 120.030; Ord. No.
2565-15 § 1, 9-15-2015]
A.
General Guidelines.
1.
Buying Preferences. It is the desire of the City to purchase
from City of Camdenton, Missouri, and/or American vendors whenever
possible. When all other factors are equal, preference shall be provided
to City of Camdenton vendors first, Missouri vendors second and American
vendors third. To be considered a City of Camdenton vendor, the person
or entity must have a physical place of business located in the City
and a City business registration. 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.
2.
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.
3.
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.
4.
Buying Proper Quality. It is the duty of the requisitioning
department 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.
5.
Sales Tax. The City is generally exempt from paying local and
State sales taxes and Federal excise taxes. The Administration Department
can provide the necessary exemption documents to any vendor upon request.
6.
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.
7.
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.
8.
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:
a.
The ability, capacity and skill of the bidder to perform the
contract or provide the service required.
b.
Whether the bidder can perform the contract or provide the service
promptly or within the time specified without delay or interference.
c.
The character, integrity, reputation, judgment, experience and
efficiency of the bidder.
d.
The quality of performance of previous contracts or services.
e.
The previous and existing compliance by the bidder with applicable
laws.
f.
The sufficiency of the financial resources and ability of the
bidder to perform the contract or provide the service.
g.
The quality, availability and adaptability of the supplies or
contractual services to the particular use required.
h.
The ability of the bidder to provide future maintenance and
service for the use of the subject of the contract.
i.
The number and scope of conditions attached to the bid.
j.
Any other pertinent factor.
B.
Purchasing Procedures For Materials And Supplies. Purchases for all
dollar amounts listed below shall require the requisition and approval
of a purchase order.
1.
Purchases with material value at or below five hundred dollars
($500.00) within total budget may be made by an authorized purchaser
without a quotation.
2.
Purchases with material value from five hundred dollars and
one cent ($500.01) to two thousand dollars ($2,000.00) 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
requisition must be signed by the Department Director and submitted,
along with a record of the quotations, to the Administration Department
for issuance of a purchase order.
3.
Purchases with material value from two thousand dollars and
one cent ($2,000.01) to seven thousand five hundred dollars ($7,500.00)
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 Administrator.
Such purchase must have at least three (3) quotations. Any requisition
must be signed by the Department Director and the City Administrator
and submitted, along with a record of the quotations, to the Administration
Department for issuance of a purchase order.
4.
Purchases with material value greater than seven thousand five
hundred dollars and one cent ($7,500.01) within total budget and not
available through an existing purchasing contract or a cooperative
purchasing agreement may be ordered by the Department Director with
the approval of the City Administrator and/or City Clerk. For any
such purchase, a formal written bid must be advertised at least once
in a written and/or electronic publication of general circulation.
Any purchase request having a value greater than seven thousand five
hundred dollars and one cent ($7,500.01) that is outside the total
budget may be ordered only after formal written bid, advertised at
least once in a written and/or electronic publication of general circulation
and formal approval by a majority of the Board of Aldermen. Purchases
with material value greater than seven thousand five hundred and one
cent ($7,500.01) within total budget and available through an existing
purchasing contract or a cooperative purchasing agreement may be ordered
by the Department Director with the approval of the City Administrator
and/or City Clerk.
5.
The City Administrator shall have the authority to approve purchases
of less than seven thousand five hundred dollars ($7,500.00) which
require the transfer of funds from one (1) budgetary line item to
another within the same department and/or fund as long as the expenditure
is within the total budget.
6.
Multiple Or Repeat Orders. Multiple or repeat orders from the
same vendor cannot be used to avoid the requisite approvals for the
total purchase amount.
7.
Special Circumstances. On purchases of less than seven thousand
five hundred dollars ($7,500.00), 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 Administrator
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 Director 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:
C.
Change Orders.
1.
Construction Change Orders Approved By City Administrator. The
City Administrator is authorized to approve change orders so long
as the amount of the change order does not cause the project to exceed
the total budget amount, the approved project cost or the available
bond proceeds, whichever is greater.
2.
Construction Change Orders Approved By The Board Of Aldermen.
In the event a construction change order contains costs in an amount
that exceeds the authorization of the City Administrator, the change
order must go to the Board of Aldermen for approval. In the event
change orders on a single contract accumulate to an amount in excess
of the City Administrator's authorization, all subsequent change
orders, regardless of amount, must go to the Board of Aldermen for
approval.
3.
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 Administrator
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.
D.
Fuel Purchases. 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.
E.
Cooperative Agreements.
1.
The City may contract directly with other governmental entities
(other municipalities, County, State or Federal) for the purchase
of items. 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.
2.
The City Clerk shall make available to Department Directors
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.
3.
The City Administrator will review and approve all cooperative-purchasing
agreements with other governmental agencies with material value under
seven thousand five hundred dollars ($7,500.00) prior to their use.
The Board of Aldermen shall review and approve cooperative-purchasing
agreements with material value of seven thousand five hundred dollars
($7,500.00) or more. Competitive-bidding procedures do not apply to
such purchases made through approved cooperative-purchasing agreements.
4.
"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.
5.
Additional Board of Aldermen approval shall not be required
for the purchase of any budgeted items from approved acceptable cooperative-purchasing
agreements.
F.
Term-And-Supply And Annual Contracts Open Purchase Orders.
1.
Term-and-supply contracts and annual contracts shall be bid
through the Administration 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 Board of Aldermen
approval for all term-and-supply and annual contracts with material
value of seven thousand five hundred dollars ($7,500.00) 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.
2.
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.
G.
Professional Services Contracts.
1.
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.
2.
Requests for qualifications for professional services shall
be submitted to the City Administrator 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.
3.
Unless otherwise required by State Statute and upon approval
of the City Administrator, professional services contracts under seven
thousand five hundred dollars ($7,500.00) annually may be exempt from
the request for qualifications process.
4.
Professional services contracts for seven thousand five hundred
dollars ($7,500.00) or more annually must be approved by the Board
of Aldermen.
H.
Emergency Purchases. In case of an emergency which requires immediate
purchase of supplies or services, the City Administrator may authorize
such purchase or secure such services needed without complying with
the procedures as set out above. Department Directors faced with an
emergency purchase need shall notify the City Administrator. When
possible (if purchase is greater than seven thousand five hundred
dollars ($7,500.00) in such an emergency) the City Administrator shall
seek approval from the Board of Aldermen at a special or regular meeting
prior to the purchase. If a timely special or regular meeting of the
Board of Aldermen is not possible, a full report of such an emergency
purchase shall be made by the City Administrator to the Board of Aldermen
at the next regularly scheduled meeting.
I.
Sole-Source And Monopoly Purchases.
1.
The City Administrator may authorize a sole-source purchase, at any monetary purchasing level set forth in Section 140.030(B) above and accordingly waive competitive-purchasing procedures, when such a request is presented, in writing, by the Department Director with the requisition, documenting that only a single feasible procurement source exists. A single feasible sole source exists when:
a.
Supplies or services are proprietary and only available from
a single manufacturer or a single distributor; or
b.
It is determined that only one (1) distributor services the
region; or
c.
When supplies or services are available at a significant discount
from a single distributor for a limited period of time; or
d.
When a project with specific circumstances requires specialized
consultant or technical services with a unique combination of abilities
or expertise.
2.
In the event the amount of a sole-source purchase will exceed
seven thousand five hundred dollars ($7,500.00), it must also be approved
in advance by the City Administrator and must be approved by the Board
of Aldermen.
J.
Lease Of Real Property.
1.
The City may lease real property that it owns for fair market
value, if authorized by the Board of Aldermen 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.
2.
Nothing herein shall prevent the City Administrator 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 Board of Aldermen.
K.
Sale Of Real Property.
1.
The City may sell unneeded real property for fair market value
with the approval of the Board of Aldermen.
2.
Nothing herein shall prevent the City Administrator 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 Board of Aldermen.
L.
Disposal Of Surplus Goods. 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 Administrator;
additional approval by the Board of Aldermen is required for goods
in excess of seven thousand five hundred dollars ($7,500.00) 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 Administrator
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.
M.
Purchasing Policy Supplements. 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 Administrator shall have the authority to supplement
this Section to incorporate the special requirements of that procurement.
N.
Policy Clarification. The City Administrator may clarify the provisions
of this Section in furtherance of the stated goals of this Section
by written statement, provided the City Administrator cannot alter
in any way the extent to which Board of Aldermen action is required
hereunder.
[R.O. 1992 § 120.040; Ord. No.
2565-15 § 1, 9-15-2015]
A.
Purchase Orders.
1.
After approval of a requisition, the City purchase order form
will be completed by the City Clerk or Deputy City Clerk. In order
to insure expeditious processing of purchase orders, it is important
that the requisition be completed accurately by the requisitioning
department. When applicable, a copy of the Board of Aldermen approval
action, the City Administrator's approval action, the Department
Director's approval action and bid or quotation documents shall
be attached to the requisition.
2.
The issuance of purchase orders or direct purchases by unauthorized
individuals or any other unauthorized purchase (including, but not
limited to, personal expenses) will not be recognized by the City
and payment for these obligations will not be approved.
3.
The purchase order will consist of three (3) copies; one (1)
copy will remain in the Administration Department (attached to the
requisition) and two (2) copies will be returned to the requisitioning
department.
4.
Purchase orders are classified as either "original" or "confirming"
based on whether or not the vendor has previously been notified of
the City's intent to make the purchase of goods or services.
B.
Construction Contracts.
1.
Construction contracts supervised by City personnel shall be
bid through the City Clerk in accordance with the procedures established
for other purchases according to the applicable price range and specifications
shall be prepared by the appropriate department and submitted to the
City Clerk for posting as prescribed by State Statute.
2.
Bid specifications and requirements for construction contracts
supervised by outside consulting services shall be prepared in coordination
with the Public Works Department. A bid package shall be reviewed
by the Public Works Department and approved by the Department Director
or designated representative. The consultant, as determined by the
Public Works Department and the Department Director or designated
representative, shall distribute the bid package to the City Clerk
for posting and distribution to interested bidders. The City Clerk
shall receive, record and tabulate the bids and shall certify that
bids were opened in compliance with all purchasing policy requirements.
The final award of the bid shall be communicated to the successful
bidder by the City Clerk.
3.
All required performance and/or bid bonds must be obtained and
documented prior to the award of the contract.
C.
Product Testing/Demonstrations.
1.
Product demonstrations may be held as deemed appropriate by
a Department Director without prior approval of the Administration
Department.
2.
Prior to taking into the City's possession any item for
testing or evaluation, departments shall contact the City Administrator
for approval. The department shall notify the vendor in writing that
the City has taken the item into possession for test purposes only
and if a purchasing decision is made, that decision will be communicated
directly to the vendor at the end of the test period. In no event
shall the retention of a test item by the City be evidence of intent
to purchase said item.
D.
General Instructions For Bid Specifications.
1.
General Specifications.
a.
Keep specifications as simple as possible while maintaining
the exactness required insuring bidders provide the quality goods
or services as required by specifications.
b.
Whenever possible, identify the equipment or material required
with some name brand or known standard specifications already on the
market.
c.
Specifications Should Promote Competition. Justification must
be provided to the City Administrator for restrictive specifications.
d.
Flexibility in the specifications is desirable in instances
where new terminologies are being sought. Specifications should be
specific enough to guarantee the quality required but sufficiently
flexible to allow vendors to be creative in their proposals.
e.
Specifications should be written with clear, simple language.
f.
Bid specifications and requirements shall be prepared by the
Department Director with approval of the City Administrator. The bid
packet should be submitted to the City Clerk with all specifications,
date of opening, award dates, requirements for potential bidders and
names and addresses of known interested bidders to receive bid notices.
The City Clerk shall be responsible for posting notice of bids, opening
and recording of bids received and reporting to the City Administrator
and the Board of Aldermen the bids received as well as the staff's
recommendation as to the award of the bid.
2.
Types Of Specifications. There are several ways of structuring
specifications to protect the integrity of the purchasing process
and to insure that the needs of the City are met. Different methods
of structuring specifications include:
a.
Qualified Products Or Acceptable Brands List. These lists are
developed only where it is not possible to write specifications adequate
to identify the quality and performance required of the goods or services
to be purchased. Acceptable brands lists are also used when tests
that would be necessary to determine compliance with technical specifications
are lengthy, costly or require complicated technical equipment.
b.
Specifications By Brand Or Trade Name. Brand or trade names
should be used where brand name products have been found to be superior
to others for the purpose intended.
c.
Specifications By Blueprint Or Dimension Sheet. Specifications
of construction projects for everything from buildings and streets
to custom-built cabinets, furniture, machines or other equipment should
be written to reference the blueprints or dimension sheets prepared
by the engineer or architect.
d.
Specifications By Chemical Analysis Or Physical Properties.
Specifications which include the chemical analysis or physical properties
of the goods, when clearly requested, place responsibility on the
supplier to provide exactly those items requested.
e.
Specifications By Performance, Purpose Or Use. Specifications
which include a set of performance criteria for the goods or services
required will provide flexibility for vendors to design products or
programs specifically aimed at meeting such criteria.
f.
Specification By Identification With Industry Standards. Specifications
will often refer to industry-wide standards or to standards set by
other public jurisdictions.
g.
Specifications By Samples. Whenever appropriate, a sample is
always a good way to make requirements perfectly clear.
3.
Delivery And Performance Guidelines.
a.
A contract or purchase order that is complete in all respects
and that is accepted by the parties concerned still must produce the
intended results or objectives before it can be considered a successful
or completed purchase. The terms and conditions must clearly define
the delivery and performance requirements of the services, supplies
or equipment.
(1)
Follow-Up And Expediting. Follow-up normally applies
to the monitoring of the delivery schedules to assure compliance.
Expediting, in the purest, sense, involves an attempt to improve or
to reduce the contractually stipulated delivery time for various reasons
and the vendor is not legally obligated to comply. The primary objectives
of the follow-up function are:
b.
If delivery problems develop, there are certain techniques that
may be used to help solve them:
c.
Prior to the cancellation, authorization from the City Administrator
or City Clerk must be obtained.
4.
5.
Partial Deliveries. Some purchase orders may list several items.
If these items can be used separately, partial payments can and should
be authorized. However, if the separate items are part of a system,
then partial deliveries should not be authorized.
6.
Substitution. To meet the contractual delivery schedule, it
may be appropriate in some situations to consider substitute items.
The specifications may cover such a possibility. Whenever substitutions
are necessary due to shortcomings of the vendor, it is the responsibility
of the purchaser to seek and obtain an adjustment for lower prices
on the substituted items.
7.
Non-Performance.
a.
Should the vendor fail to meet any requirements of the specifications,
the vendor can be cited for non-performance. Recourse could include:
(1)
The City may exercise its rights under a liquidated-damages
clause or under the terms of a performance bond.
(2)
The City may obtain the needed items from another
source and charge delinquent vendor the excess difference in cost.
(3)
The City may terminate the contract for default
if it is in the best interest of the City and items can be obtained
under more favorable conditions from other sources.
b.
Any such action should be approved by the City Administrator
or City Clerk.
8.
Inspection And Testing Guidelines. Goods and materials should
be checked at the time of receipt to detect any damage or defects.
Inspection and testing may be performed at origin or destination.
a.
Reports, Rejection And Return Authorization. Whenever an inspection
is performed, all reports to properly support claims or actions must
be thoroughly documented. A copy of the inspection report will normally
be used to substantiate payment for the goods and verification of
receipt. In the event of rejection, for whatever purpose, certain
steps must be taken to inform and protect the rights of the vendor
as well as the City. Reasons for rejection must be listed and these
reasons should reference specific requirements of the contract.
b.
Damage During Shipment. It is important that all damage be completely
described on the receiving report. Any evidence of concealed damage
should be noted at this time. The carrier should be notified immediately
and a joint inspection should be scheduled with the carrier's
representative. When it is apparent that the extent of the damage
causes the goods to be worthless, they should not be accepted.
c.
Latent Defects. Latent defects may be the result of damages
in transit or of failure of the manufacturer to conform to specifications.
If specific liability for the defect cannot be determined between
the carrier, the vendor or the manufacturer, the City may have to
file a claim against all parties seeking their cooperation in resolving
the situation.
9.
Invoices. Vendors are to be instructed to send all original
invoices to the City of Camdenton, Accounts Payable, 437 W US Highway
54, Camdenton, Missouri, 65020.
10.
Purchases Supported By Grant Funds. Departments shall review
all requirements for grant funds used in the procurement of items
to insure the bidding process required as a condition to receiving
said grant funds is complied with during the procurement of the item.
The Administration Department will assist in the inclusion of all
required procedures that are in addition to the requirements of the
policy.
11.
Delivery Of Items. When items are delivered to City departments,
the only paperwork to be signed is the delivery notice. Any other
vendor purchase order, document, contract, warranty, maintenance agreement,
etc., is not to be signed at delivery. All such documents shall be
forwarded to the Accounts Payable section or retained by the appropriate
department.
E.
Disputes, Adjustments And Appeals.
1.
Departments shall notify the Administration Department in a
timely manner concerning any complaint or dispute regarding an order,
delivery, specification, defective goods or poor performance by a
supplier. Any decision concerning an attempt to cancel a contract
or an attempt to resolve a dispute regarding defective products or
unacceptable services shall be made jointly by the Administration
Department and the department director. Any correspondence with suppliers
shall be made available to both the Department Director and the City
Clerk.
2.
In the event a procurement dispute arises between the requesting
department and the Administration Department, the City Administrator
shall make the final decision.
F.
Compliance With Applicable Law. All transactions shall be made in
compliance with applicable law, including, but not limited to, the
City's Code and ordinances and also State laws governing such
issues as guaranteed energy cost savings contracts (Section 8.231,
RSMo.), buying preferences (Section 34.073 et seq., RSMo.), health
insurance (Section 67.150, RSMo.), transactions with Federal and State
Government (Sections 70.100 et seq., RSMo.), special assessment sidewalks
(Sections 88.880 et seq., RSMo.), solid waste (Section 260.208, RSMo.)
and prevailing wage on public works projects (Section 290.250, RSMo.).
Before commencing efforts regarding a transaction involving an unfamiliar
subject area, a determination should be made as to whether a consultation
with the City Attorney is necessary.
