This chapter provides the general framework for purchasing and selling materials, supplies, equipment, property, and contracting of services for the Village. Pursuant to § C-106 of the Charter, the Village Council must establish by ordinance the detailed purchasing procedures of the Village. This chapter, together with any amendments, will be kept by the Village Clerk/Treasurer as the official Purchasing Policy of the Village.
[HISTORY: Adopted by the Village Council of the Village of Spring Lake 9-11-2025 by Ord. No. 398. Amendments noted where applicable.]
A.
Compliance with chapter. Village employees are responsible for knowing and adhering to the provisions of this chapter.
B.
Sale of surplus village assets. The Village Manager or their designee is authorized to sell and or exchange supplies or equipment which have become unsuitable for Village use by reason of obsolescence. Surplus supplies or obsolete equipment will be sold on a competitive basis to the highest bidder. Employees associated with the Village are not entitled to surplus supplies or obsolete equipment.
C.
Additional purchases after authorization. The Village may purchase materials, supplies, or contractual services which are similar to those previously purchased by the Village after complying with the terms of this policy and without obtaining additional authorization, under the following conditions.
D.
Purchase order. For all purchases that require a purchase order, the purchase order number will be issued to the vendor prior to making the purchase. Professional services are exempt from purchase order requirements.
A.
Purchasing method. The purchasing method to be used is based on the dollar amount of the purchase. To determine the dollar amount, departments should include supporting and enabling expenses in the purchase price. In other words, the total project cost must be considered.
B.
Purchases up to $4,999. Purchases in this dollar amount can be made by the department head or designee and do not have to be by competitive bid. Purchases must be within the department budget and follow all departmental procedures. Every effort must be made to ensure a favorable cost. A purchase order signed by the department head or designee is required.
C.
Purchases from $5,000 to $14,999. Purchases in this dollar amount require department head approval. Purchases must be budgeted items and follow all departmental procedures. Every effort must be made to obtain the most favorable purchase price. Requests will be submitted to the department head using the Village's purchase order form.
D.
Purchases between $15,000 and $24,999. Purchases in this dollar amount must be budgeted items and require Village Manager approval. Every effort must be made to obtain the most favorable purchase price. Requests will be submitted to the Village Manager using the Village's purchase order form. Signed service agreements from the vendor are required.
E.
Purchases between $25,000 and $74,999. Purchases in this dollar amount must be budgeted items and require a competitive price quotation or proposal for goods, services, or construction in which a defined scope is conveyed by internet or email and does not require a formal sealed bid or proposal. Purchases within this category must be approved by the department head before being submitted to and approved by the Village Manager. Submittals should have at least three quotes from suppliers when possible. The requirement of obtaining three quotes may be waived by the Village Manager, if the item is a sole source due to compatibility with existing equipment, if a company with a successful track record with the Village is the seller, or other logical reason. Signed service agreements from the vendor are required.
F.
Purchases greater than $75,000. Purchases in this dollar amount require a competitive bid or proposal for goods, services, or construction in which a well-defined scope is conveyed by public notice or direct solicitation. Proposals will be opened and recorded at a pre-determined time and date. All purchases in this category require Village Council and or Downtown Development Authority approval, as applicable to the purchase.
A.
The following items and situations are exempt from the above requirements, except for the listed approval authority:
(1)
Pre-approved transactions. Any budgeted transaction that is recurring in nature and necessary for the essential operation of the Village, which has been pre-approved for payment by the Village Council, and payments made prior to a Village Council meeting to avoid penalty or interest charges.
(2)
Group purchasing contracts. Purchases through group purchasing contracts, including but not limited to MiDeal and Omnia Partners.
(3)
Governmental reverse auction purchase. Purchases through governmental auctions.
(4)
Scope of work changes. In the event of unanticipated changes to in-progress contracted projects, the Village Manager or designee is authorized to make purchases that require immediate approval to continue work. If the change order exceeds the approved contract amount, the Village Manager will report the details of the change to Village Council.
(5)
Approved contractor list. Contractual services are obtained through a formal agreement or contract, typically involving tasks performed by independent contractors, service providers, or vendors. The purpose of this list is to expedite emergency response and conduct routine facility maintenance. Contractors on this list must hold the appropriate licensure, have an established history of satisfactory work performance with the Village, and maintain proof of liability and worker's compensation insurance, or a sole proprietor form, as appropriate. The Village Manager holds approval authority to add contractors to the list. The list will be reviewed annually during the budget process and finalized by July 1st of each year.
(6)
Equipment purchases. Purchases of equipment are exempt from the competitive bidding requirements of this chapter. However, such services must still comply with the dollar thresholds and approval process outlined in § 44-3.
(7)
Professional services. Services requiring specialized expertise, education, training, or licensing are exempt from competitive bidding requirements of this Chapter. However, such services must still comply with the dollar thresholds and approval process outlined in § 44-3, and the agreements for professional services require Village Attorney review.
(8)
Project manager bids. When the Village retains a professional consultant to manage a project, the consultant will administer the competitive bidding process. The consultant's competitive bidding process will satisfy the requirements of this chapter. Final approval of any contract award remains subject to the dollar thresholds and approval authority established in § 44-3.
A.
Emergency purchases. The Village Manager is authorized to make purchases which are deemed necessary to protect the public health, safety, and welfare of the community. In the event of an emergency purchase, the Village Manager will report the details of the purchase to Village Council.
A.
Non-budgeted purchases. Non-budgeted expenditures will adhere to all provisions of § 44-3 except that Village Council must approve the expenditure. Non-budgeted purchases must be submitted to the Village Manager with a complete purchase order, proposed budget adjustment, and justification for the purchase request.
A.
Bid solicitation. The Village will prepare specifications for the items or services required and advertise the requirements on the Village website and any other advantageous location. The Village may also solicit bids from qualified bidders.
B.
Bid opening. The bids will be opened and read aloud at the time and place specified in the published notice.
C.
Late bids. All late bids will be rejected unless such lateness was caused by the Village.
D.
Surety. Surety bonds or escrow deposits may be required to protect the best interests of the Village.
E.
Bid results. The Village will tabulate bids and report the results to Village Council with a recommendation.
F.
Council discretion. The Village Council has the right to waive irregularities in bidding and acceptance. The Village Council may award a contract to the bidder that will best serve the Village's interest. The Village Council may authorize the execution of a contract with the successful bidder and the filing of any required bond or escrow.
G.
Local bid. If the Village receives a bid from a local bidder as defined by Village Council and the amount of the bid is no more than 5% greater than that of a non-local bidder, the Village Council in its discretion may consider the bids equal and permit the local bidder to be awarded the bid at the low bid price.
H.
Purchases of $75,000 or more. No contract for the purchase of articles or services more than $75,000 in cost will be approved unless the Village Council has authorized the purchase by motion or resolution, and if a contract is required, it must be reviewed by a Village attorney.