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City of Ash Grove, MO
Greene County
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Table of Contents
Table of Contents
Code
New Laws (4) Index
A. 
Purpose. This policy is intended to outline the purchasing policies for the City of Ash Grove. This policy is not intended to override any other policies, ordinances, etc. relating to when and how contracts and related documentation is approved by a respective board or commission.
B. 
Overall Guidelines.
1. 
The City Clerk or his/her designee shall act as Purchasing Agent unless otherwise provided. The City's Purchasing Policy is established to ensure that needed goods and services are obtained in a timely manner, at the lowest prices possible, consistent with acceptable quality standards, and within the requirements of public purchasing laws.
2. 
Department heads may be given the authority as prescribed by the Purchasing Agent to make limited purchases up to one hundred dollars ($100.00) without additional approvals, provided there are monies available within their departmental budget.
3. 
Procedures which apply to purchases made directly by City staff as well as the steps followed by the Purchasing Agent are described below, along with the public purchasing law and ethical standards that shape the City's purchasing activities.
4. 
Governing laws and regulations. Procurement by the City of Ash Grove is governed by State and local laws and regulations. The City policy, adopted by ordinance, along with the State Statute and the City's administrative policies and procedures describe basic procurement processes: e.g., public bidding, bid opening, bid evaluation and bid award.
C. 
Conflict Of Interest. No employee or official of the City shall participate in a transaction, contract, activity or service of the City which may have a direct or predictable effect on their financial interests or the interests of an immediate family member.
D. 
Personal Purchases. It is prohibited for an employee or official to make purchases for their own personal purposes or to receive special pricing from a vendor using the City's name or reputation.
E. 
Scope Of Purchasing Authority Duties.
1. 
Rules and regulations. Establish and amend, when necessary, all rules and regulations for purchasing.
2. 
Forms. Prescribe and maintain such forms as he/she shall find reasonable and necessary to the implementation of the purchasing policy.
3. 
Bulk purchases. Exploit the possibilities of buying in bulk so as to take full advantage of discounts.
4. 
Federal tax exemptions. Act so as to procure for the City all Federal and State tax exemptions to which it is entitled.
5. 
Disqualification of bidders. Have the authority to declare vendors who default on their quotations irresponsible bidders and to disqualify them from receiving any business from the City for a stated period of time.
F. 
Unauthorized Purchases. No individual has the authority to enter purchase agreements or contracts on behalf of the City unless specifically authorized to do so. Any such purchase classified as unauthorized is considered a personal expense and the obligation of the purchaser.
G. 
Purchasing Goals. All purchases must be made with the intent to meet the following goals:
1. 
Minimum expenditure. Procuring for the City the highest quality in supplies and contractual services at the least expense to the City.
2. 
Encourage competition. Discourage uniform bidding and endeavor to obtain as full and open competition as possible on all purchases and sales.
3. 
Local purchasing. It is the intent of this policy to promote local purchasing to the greatest extent practical. "Local" shall be defined as the trade area within the Ash Grove community (not to exceed one thousand dollars ($1,000.00)). In the event a local supplier can meet the need for a cost that is within ten percent (10%) to any other known supplier, the item shall be purchased from a local vendor. The Board of Aldermen shall be the final authority on applying local incentive.
A. 
All purchases or contracts of any kind or description, payment for which is to be made from funds of the City of Ash Grove, shall be, without exception, in the following manner:
1. 
Purchases costing under $100.00. Items in this category, used on a day-to-day basis, may be purchased with the prior approval of supervisory personnel (i.e., department heads) without competitive bidding on each item. Items used on a day-to-day basis consist of office supplies and other items that are routinely purchased.
2. 
Purchases costing $100.00 to $500.00 and those unique purchases under $100.00 not classified as day-to-day items. Items in this category shall be purchased with the prior approval of the City Clerk and by attempting to secure at least three (3) bids. In those cases where bids are not notated, the purchase documents will include a sole source justification.
3. 
Purchases costing $500.01 or more. Items in this category shall be secured on a competitive bid basis and must be purchased with the prior approval of the Board of Aldermen, unless the purchase is considered an emergency or the purchase of a specific item was pre-approved through the budget process. Purchases in this category will include at least three (3) bids or a sole source justification. Within this category of purchase, sole source justification must be approved by the Board of Aldermen prior to purchase.
A. 
City purchases that are procured through formal bids shall be prepared, advertised and considered in accordance with the following Section.
1. 
An advertisement for bidders shall be published in one (1) issue of a newspaper of general circulation in the City as notice inviting bids. Said notice shall be published at least ten (10) business days prior to the date set for the receipt of bids. The notice herein required shall include a general description of the articles to be purchased or services to be performed and the time and place for opening bids.
2. 
In addition to advertising in a local paper the advertisement shall be posted in City Hall and shall be forwarded to responsible, prospective suppliers of the items to be purchased or services to be performed. It is understood that it will not be possible to notify all potential bidders but reasonable efforts shall be made to forward the advertisement for bids to a relatively large number of potential bidders in an effort to encourage competitive bids for the City. For relatively large scale construction projects it is assumed that the advertisement will also be forwarded to construction industry clearinghouses that accumulate information for prospective bidders.
3. 
All notices and solicitations of bids shall state the place, time and date the bids are due.
4. 
If sealed bids are required, the bids shall be submitted in a sealed envelope addressed to the City Official designated in the bid packet and shall be identified as bids on the envelope.
5. 
All bids shall be opened in public at the time, date and place stated in the public notices.
6. 
A tabulation of all bids received shall be available in the City Hall for public inspection and shall be prepared in a timely manner after the bid opening.
7. 
Upon public opening of the sealed bids, the bids shall be reviewed and a recommendation for approval shall be prepared. If the recommendation is for a bid other than the lowest cost bid, the recommendation shall include a detailed explanation of why the chosen bid is being recommended.
8. 
All bid information shall include the following statement: "The City of Ash Grove reserves the right to reject any or all bids or waive any irregularities that are in the best interest of the City."
9. 
The City of Ash Grove encourages bidders to employ qualified Ash Grove residents.
A. 
In determining the lowest responsible bidder, there are numerous factors that should be considered when deciding which bid provides the best value to the City of Ash Grove. These factors may include some or all of the following factors, and relative importance of each factor may vary depending upon the purchase being made.
1. 
Bid price. Determining the low bidder for equipment purchases may also include consideration of cost of use over the lifetime of the equipment and warranty terms.
2. 
The ability, capacity and skill of the bidder to perform the contract or provide the services required.
3. 
Whether the bidder can perform the contract and/or provide the services promptly and within the required time periods without delay or interference.
4. 
The quality of performance on previous contracts or services with the City and/or references provided.
5. 
The previous and existing compliance by the bidder with laws and ordinances of the City.
6. 
The financial resources and the ability of the bidder to perform the contract or provide the service.
7. 
The quality, availability and adaptability of the supplies or services.
Change orders in contracts shall be approved under the same guidelines as specified in the purchasing rules Section if the proposed changes were initiated by the staff or are in response to conditions unforeseen at the time the contract was awarded, and the total cost of said change orders does not exceed the spending limits outlined in the purchasing rules Section and the approval does not materially alter the purpose of the contract. All change orders over ten thousand dollars ($10,000.00) or over ten percent (10%) of the original contract amount shall be approved by the Board of Aldermen prior to implementation of the change.
A. 
City Business License. All vendors subject to City of Ash Grove business license requirements shall have a current business license before the City of Ash Grove completes any purchases with that vendor.
B. 
Leases Or Lease/Purchases. Purchases made through leases or lease/purchases shall be completed in accordance with applicable purchasing policy procedures. The total value of the lease or lease/purchase shall be considered when determining the applicable purchasing procedure.
C. 
Exclusive Service. In the event that there is only one (1) firm or company or individual capable of providing a particular service or commodity and said services or commodities cannot be secured from other persons or companies, then the bidding requirements contained above shall not be applicable. The Purchasing Agent is authorized to proceed with the purchase of such services or commodities as are required by the City. Exclusive service purchases for amounts exceeding five hundred ($500.00) must be pre-approved by the Board of Aldermen.
D. 
Other Items To Consider.
1. 
Bid bonds. (A bond that provides financial assurance that the bid has been submitted in good faith, and that the contractor intends to enter into the contract at the price bid and provide the required performance and payment bonds.) When a bid bond is deemed necessary, they are typically required to be submitted for an amount equal to at least five percent (5%) of the bid price and must be submitted with the bid. Also, bidders are typically allowed to submit a certified or cashier's check in lieu of a bid bond when required.
2. 
Payment bonds. (A bond that guarantees that the contractor will pay certain subcontractors, laborers, and material suppliers associated with the project.) When a payment bond is deemed necessary, they are typically required to be submitted for an amount equal to one hundred percent (100%) of the value of the contract.
3. 
Performance bonds. (A bond that protects the owner from financial loss should the contractor fail to perform the contract in accordance with its terms and conditions.) When a payment bond is deemed necessary, they are typically required to be submitted for an amount equal to one hundred percent (100%) of the value of the contract.
4. 
Notes on bonds. When bonds are deemed necessary, the City shall have the right to specify that they shall be obtained from a bonding company that is authorized to conduct business in the State of Missouri, require an original certificate from the issuing company stating that the bond is in effect and that the bonding company executing the bonds appears on the Treasury Department's most current list of authorized bonding companies (Circular 570 as amended). When payment and performance bonds are deemed necessary, they are not submitted with the bid but instead are submitted after the bid is approved and prior to execution of the contract.
5. 
Insurance. Typically insurance requirements will only need to be specified for construction type projects where it is important to ensure that the City is protected from such liability and that the contractor, or other entity, will bear this liability. The amount of insurance coverage required may vary from project to project, depending upon the complexity and risk of the project. Typically the City's liability insurance carrier and/or City Attorney can provide assistance in determining appropriate insurance requirements. Typically insurance coverage is verified after the bid is accepted and prior to execution of the contract. It should also be noted that insurance and bonding are not the same.
6. 
Warranty. Warranty terms should be detailed in advance in order to ensure that the City is obtaining the warranty desired. This could be particularly important if different vendors and/or products have different warranty terms and the warranty could be important in the purchasing decision.
7. 
Payment schedule and/or retainage. Payment terms may need to be specified when making purchasing decisions, especially if the purchase might involve multiple payments over a long term. If the expected payment terms are not specified in advance, the City may be subject to the payment terms of the vendor even if those terms were not what were expected. For larger projects consideration shall also be given to withholding a portion of a regular installment payment (i.e. retainage).
8. 
Completion date, liquidated damages and/or incentives to finish early. Consideration should be given to specifying when a purchase is to be completed, especially if the purchase is time sensitive. When deemed necessary, the bidder shall be notified in advance of any time lines for completion, if liquidated damages will be assessed (including how they will be calculated), and/or if there will be incentives to completing early (including how those incentives will be calculated).
9. 
Sales tax. Notification to any contractor, subcontractor, etc., that the City is a tax exempt entity and all qualifying purchases made by the City, contractors and/or subcontractors on behalf of the City shall be made with sales tax excluded.
E. 
Maintenance Agreements. If the need for a maintenance agreement is anticipated at the time of purchase, the terms of the maintenance agreement must be included in the specifications and/or bid/quote information. If the maintenance agreement was not anticipated at the time of the purchase or the original agreement has expired, then normal purchasing procedures apply.
F. 
Emergency Purchases. In case of an emergency which requires immediate purchase of supplies or services and time is of the essence, the City Clerk or Mayor shall be empowered to authorize the purchase or to secure the services needed without complying with the procedures as set forth in this Chapter. This Subsection shall also apply to any natural disaster or civil emergency requiring an immediate response on the part of the City. A full report in writing of the circumstances requiring an emergency purchase shall be filed by the City Clerk or Mayor with the Board of Aldermen each time an emergency purchase over five hundred dollars ($500.00) is made.
G. 
Professional Services. The competitive bidding requirements of this Chapter 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 or planners.
H. 
Cooperative Purchasing. This Chapter shall not apply to purchases made through or with the State 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.
I. 
Subdividing Prohibited. No contractor purchase shall be subdivided to avoid the requirements of this Chapter.
A. 
Inspection. All purchases shall be reviewed and inspected upon delivery of the supplies or contractual services to determine their conformance with the specifications set forth in the order or contract therefor.
B. 
Tests. The City shall maintain the right to require chemical and physical tests of samples submitted with bids and samples of deliveries which are necessary to determine their quality and conformity with the specifications. In the performance of such tests, the City shall have the authority to make use of any outside laboratory.
A. 
All departments shall submit to the City Clerk or his/her designee, at such time and in such form as established, reports showing stocks of all supplies which are no longer used or which have become obsolete, worn out or scrapped.
1. 
Transfers. The City Clerk or his/her designee is hereby authorized to transfer surplus stock to other departments and establish the financial value, if any, of the transfers.
2. 
Sales. The City Clerk is hereby authorized, with prior approval of the Board of Aldermen, to sell all supplies having an estimated value of less than ten thousand dollars ($10,000.00) which have become unsuitable for public use, or to exchange the same for, or trade in the same, on new supplies.
A. 
Definitions.
1. 
The term "professional services" shall mean those services within the scope of the practice of architecture, engineering or land surveying, as defined by the laws of the State of Missouri, or those performed by any architect, professional engineer or registered land surveyor in connection with this professional employment or practice. "Professional services" shall also encompass attorneys (except the City Attorney), accountants, auditors, real estate brokers, appraisers, physicians, and other similar professions when these professions are hired directly by the City.
2. 
The term "firm" shall mean any individual, firm, partnership, corporation, association or other legal entity permitted by law to practice architecture, engineering or land surveying in the State of Missouri.
3. 
The term "selection committee" shall mean the Mayor and the Board of Aldermen.
B. 
Roster Of Consultants.
1. 
The City Clerk or designated staff will maintain a roster classified by category of professional service, of qualified firms interested in performing professional services for the City. Names of firms will be placed on the roster upon their request, at the request of members of the Board of Aldermen, or when recommended by City departments.
2. 
Each firm meeting the following minimum qualifications shall be deemed to be a qualified firm and to meet the qualifications of the City:
a. 
Duly authorized to conduct business in the State of Missouri in their particular profession,
b. 
Professional registration by the State of Missouri, and
c. 
At least one (1) staff professional assigned to each project. Adequacy of personnel will be determined on a contract-by-contract basis against the City's estimate of manpower required to perform the work in the desired time frame.
3. 
Each person or firm listed on the roster shall be responsible for maintaining a current resume describing their qualifications and experience with the City Clerk's office. Data that should be included is as follows:
a. 
Firm name, address, telephone numbers;
b. 
Year established and former firm names;
c. 
Types of services for which it is qualified;
d. 
Names of principals of the firm and States in which they are registered;
e. 
Names of key personnel, with experience of each and length of time in the organization;
f. 
Number of staff available for assignment;
g. 
Outside consultants and associates usually retained;
h. 
List of completed projects on which the firm was principal engineer;
i. 
Current projects underway and estimated cost of each;
j. 
Data-gathering methods, if appropriate; and
k. 
Evaluation techniques, if appropriate.
C. 
Approval Of Contracts For Professional Services.
1. 
Class A. Services for projects where fees will exceed fifty thousand dollars ($50,000.00). The contract(s) for these services will be approved by the Board of Aldermen.
2. 
Class B. Services for projects where fees will not exceed fifty thousand dollars ($50,000.00). The contract(s) for these services will be approved by the City Clerk, Utility Director, Comptroller, or Board of Aldermen.
D. 
General Procedures And Responsibilities.
1. 
Project initiation. When a department of the City identifies a project for which professional services will be necessary, the department will draft a scope of services for the specific project. This scope of services will be submitted to the City Clerk or his/her designee for authorization to initiate the project and a determination as to whether the Board committee or the staff committee will act as the screening and selection committee.
2. 
Expressions of interest. The administering department will contact those firms on the roster for a written expression of interest in the specific project. The request should invite comment as to the special experience in the project being considered; describe previous experience with similar projects, and the availability of the firm to provide required service within any time limitations.
3. 
Initial screening and requests for proposals. The expressions of interest then will be presented to the appropriate screening and selection committee for initial screening. Factors to be determined in the initial screening will include:
a. 
Specialized experience in the type of work required;
b. 
Record of the firm in accomplishing work on other projects in the required time;
c. 
Quality of work previously performed by the firm for the City;
d. 
Recent experience showing accuracy of cost estimates;
e. 
Community relations including evidence of sensitivity to citizen concerns; and
f. 
Geographic location of the principal offices of the firm.
4. 
Screening process. The screening committee will designate at least three (3) firms who will be requested to present detailed proposals on the project.
5. 
Detailed proposals. Firms submitting detailed proposals will be asked to provide a resume of its proposed project supervisor; the name of the principal who would be responsible for the work; the amount of work presently under way; the ability of the firm to meet required time schedules; and a description of how the project would be conducted as well as other facts they wish to present in favor of their firm.
6. 
Contract form. A contract form will be provided to each firm asked to provide a detailed proposal so the firm can be fully informed of the parameters of the proposed project and general City contracting policies. The contract form will be prepared by the department responsible for the project with the assistance of the Legal Department.
7. 
Interview and selection. Upon receipt of the detailed proposals, the selection and screening committee will be convened to review the proposals, interview prospective firms and make the final selection as to the firm for the project.
8. 
Contract negotiation. The selected firm then will be requested to come in for a final conference with the screening and selection committee to define precisely the scope of service to be provided and to submit a proposal covering the compensation requirements for the work. A fee that is fair and reasonable then is negotiated for the project. A contract is prepared and submitted to the Legal Department for review and then submitted to the City Clerk or his/her designee for presentation to the Board of Aldermen for approval. If, after a reasonable effort, a contract cannot be negotiated, the negotiations with the designated firm shall be terminated and negotiations shall be started with the next firm recommended.
E. 
Prohibition Against Contingent Fees.
1. 
Each contract entered into by the Board of Aldermen for professional services shall contain a prohibition against contingent fees as follows: "The architect, engineer or land surveyor, as applicable, warrants that he has not employed or retained any company or person, other than a bona fide employee working solely for the architect, engineer or land surveyor, to solicit or secure person, company, corporation, individual or firm other than a bona fide employee working solely for the architect, engineer or land surveyor, any fees, commission, percentage, gift or any other consideration, contingent upon or resulting from the award or making of this agreement."
2. 
For the breach or violation of the foregoing provision, the Board of Aldermen shall have the right to terminate the agreement without liability and, at its discretion, to deduct from the contract price or otherwise recover the full amount of such fee, commission, percentage, gift or consideration.
F. 
May Waive Procedural Requirements. The Board of Aldermen in its sole and absolute discretion may waive any and all aforementioned procedural requirements.