[Ord. No. 876, 6-28-2019; Ord.
No. 912, 6-24-2020]
A.
The
City of Truesdale, in the normal course of business, will procure
a broad range of items and services including small purchases, professional
service contracts and major construction contracts. This policy establishes
procurement procedures to ensure that unnecessary, duplicative or
ineligible purchases are not made.
B.
This
policy has been designed to ensure that the guidelines set by the
Truesdale Board of Aldermen with regard to the expenditure of public
funds are met by all City departments. If these policies are adhered
to, the City will receive maximum value for each public dollar spent.
1.
The basic goals of the City purchasing policy are:
a.
To comply with the legal requirements of public purchasing;
b.
To assure vendors that impartial and equal treatment will be afforded
to all who wish to do business with the City;
c.
To receive maximum value for each public dollar spent;
d.
To provide City departments with required goods and services at the
time and place needed in the property quantity and quality;
e.
To purchase only goods and services for which funds have been approved.
C.
If
the procedures and guidelines established in this policy are followed;
each department will efficiently manage, control, and plan their available
resources to meet present and future departmental needs and help the
City meet their goals.
D.
Invoices.
In the course of daily operations, certain routine invoices will be
received requesting payment. The Board of Aldermen has pre-authorized
the following invoices to be paid by the Treasurer or City Clerk each
month upon the receipt of the statement:
1.
The Treasurer will provide to the Board of Aldermen at its first
meeting of the following month a list of such invoices that was paid
the previous month to the Board with the amount paid, date paid, and
check number.
2.
The invoices are as follows:
a.
AmerenMissouri electric invoices.
b.
CenturyTel Telephone Service.
c.
AT & T Cell phone for Public Works Director.
d.
Animal Control invoice.
e.
Monthly trash service invoice.
f.
Monthly sewer invoice to City of Warrenton.
g.
MULES invoice.
h.
Retirement for employees.
i.
Monthly lease fee for copier.
j.
All Federal and State withholdings.
k.
Sales tax.
l.
Regis Commission (Police Department).
m.
Information Technologies Inc., (Police Department).
n.
City Hall's alarm system invoice.
o.
Warrenton Oil Company invoice.
p.
Missouri One Call System.
q.
Reimbursement for mileage.
r.
Chamber of Commerce monthly meeting.
s.
Invoices on contracts approved by the Board.
3.
All other invoices will be on the list provided to the Board of Aldermen
and be approved at a regular board meeting, prior to payment. Invoices
will be available for review by the Aldermen upon their request. The
Mayor and the Administrator do have the authorization to approve payment
on an invoice.
[Ord. No. 876, 6-28-2019; Ord.
No. 912, 6-24-2020]
A.
Department
Heads. Not to exceed five hundred dollars ($500.00) for routine goods
and services in the course of daily operation, and the invoice(s)
are to be submitted to the Treasurer for payment. If this privilege
is abused, the Mayor and the Board has the right to limit or remove
this privilege from the department head.
B.
Administrator/City
Clerk. Not to exceed five thousand dollars ($5,000.00) for routine
goods and services in the course of daily operations, and the invoice(s)
are to be submitted to the Treasurer for payment. If this privilege
is abused, the Mayor and the Board has the right to limit or remove
this privilege from the City Clerk.
C.
The
Mayor of the City of Truesdale has authorization to approve purchases
of goods or services for seven thousand five hundred dollars ($7,500.00)
or less without the approval of the Board of Aldermen. The invoice(s)
are to be submitted to the Treasurer for payment.
D.
Competitive
bidding for all purchases of goods and services should be followed
whenever possible.
1.
Invitations to bid on specific purchases should be made to qualified
firms;
2.
Description of items or services to be purchased in the invitations
to bid should be clear and accurate, and should avoid specific brand
requirements, although brand names may be used as an example of functional
or quality requirements as long as "or equal" product is stated as
allowed.
3.
All purchases or procurements of more than twenty thousand dollars
($20,000.00) must be formally advertised through an appropriate public
medium such as local or regional newspapers. Procurement for professional
services need not be formally advertised. However, there must be a
competitive procurement process wherein a number of qualified vendors
are invited to submit proposals.
4.
All bids shall be opened at the specified time designated on the
date stated in the bid notice and shall be publicly read. Any bids
arriving after the designated bid opening date and time will be noted
and the bid will remain unopened.
5.
Initial evaluation of bids received, whether oral or written, shall
be conducted by the City Board. The Board of Aldermen shall:
a.
Determine acceptability of bids received. Examine the ability, capacity,
and skill of the bidder to perform the contract or provide the service
required;
b.
Review the quality of performance of previous contracts or services;
c.
Verify bid bond included (if required);
d.
Verify required information, i.e., literature, samples, etc., provided;
e.
Determine lowest and best bid meeting specification;
f.
Determine the ability of the bidder to provide future maintenance
and service for the use of the contract subject.
E.
The
lowest and most responsible bidder must be selected to provide the
required supplies, equipment, construction, or services. The City
does reserve the right to select a vendor based upon past service
and experience with the vendor, The City does reserve the right to
accept or reject any bid when it is determined in the best interest
of the City to do so. The only award where price cannot be a selection
factor is architectural or engineering services. Selecting other than
the lowest bidder must be based on an assessment of the lowest bidder's
integrity, resources, capacity and past performance record. Documentation
on the reason why the low bidder should be disqualified or not selected
should be made and retained by the City.
F.
Bidders
and contractors must submit bid bonds, payment bonds, and performance
bonds that meet Federal standards for all construction contracts of
more than twenty-five thousand dollars ($25,000.00). For contracts
exceeding twenty-five thousand dollars ($25,000.00), the City will
require the following guarantees: A bid guarantee from each bidder
equivalent to five percent (5%) of the bid price. This may be secured
through a bid bond or certified check; a performance bond for one
hundred percent (100%) of the contract price on the part of the contractor
to ensured completion of the contract; a payment bond for one hundred
percent (100%) of the contract price on the part of the contractor
to ensure payment to all persons supplying labor and materials. An
irrevocable letter of credit issued by a bank may be used in place
of a performance bond. For contracts of less than twenty-five thousand
dollars ($25,000.00), a determination will need to be made to ensure
the City is adequately protected.
G.
Positive
efforts should be made to attract small and minority-owned business
(MBEs) and women's business enterprises (WBEs) to bid on all projects.
[Ord. No. 876, 6-28-2019; Ord.
No. 912, 6-24-2020]
A.
Small
Purchases. Formal bid solicitation procedures are not required for
the purchase of items that cost less than twenty thousand dollars
($20,000.00). However, three (3) written quotes should be obtained
for all purchases in excess of fifteen thousand dollars ($15,000.00).
It should be clearly written what is being purchased, either goods
or services. For purchases of less than fifteen thousand dollars ($15,000.00),
the purchasing officer may obtain informal price quotations by telephone,
email, fax, mail, or face-to-face inquiry. Prices obtained orally
should be documented for the files.
B.
Competitive
Sealed Bids. Competitive sealed bids (formal advertising) are used
when the goods or services are expected to be over twenty thousand
dollars ($20,000.00) in cost. The invitation shall be publicly advertised
for a period of NOT less than three (3) consecutive weeks (21 days)
to allow sufficient time prior to the opening of bids. Bids shall
be solicited from an adequate number of known suppliers. The invitation,
including specifications and attachments, must clearly describe the
goods or scope of services required permitting bidders to be responsive
to the invitation. All bids must be opened publicly at the time and
place stated in the invitation for bids. A firm fixed-price contract
award must be made, in writing, to the responsive bidder whose bid
is lowest and/or most responsible. All unsuccessful bidders must be
notified in writing.
C.
Procurement
by Competitive Proposals. Procurement by competitive proposals may
be used if conditions are not appropriate for the use of formal advertising.
This type of procurement is most commonly used for professional services.
The only area in which price is not used as a selection factor is
in procurement of professional architectural or engineering services.
Price must be a selection factor to purchase other types of services
even though A/E firms are a potential source to perform the proposed
effort (e.g., administration and surveying). Only fixed price (a specified
price to be paid when the items or services are delivered and accepted)
or cost-reimbursement (price is usually reimbursed as costs are incurred)
may be awarded. When using procurement by competitive proposals, the
following requirements apply:
1.
Proposals must be obtained from three (3) or more qualified sources.
2.
A Request for qualifications/proposals must be issued and published
which identifies all the factors that will be used to evaluate proposals
and qualifications, including the importance that price or cost will
play in the selection.
3.
All proposals received must be evaluated. A written method for evaluation
which includes the significant factors to be used to determine the
contract selection award must be prepared and publicized along with
the request for proposals.
4.
The award may be made to the respondent whose proposal would be most
advantageous to the City, considering prices and other factors identified
in the request for proposals. The basis for selection must be documented
in the files.
5.
Unsuccessful respondents must be notified promptly in writing.
[Ord. No. 876, 6-28-2019; Ord.
No. 912, 6-24-2020]
A.
A non-competitive
proposal is procurement through solicitation of a proposal from only
one (1) source, or after solicitation of a number of sources, competition
is determined inadequate. Circumstances under which a contract may
be awarded by non-competitive proposals are limited to the following:
1.
After solicitation from a number of sources, competition is determined
to be inadequate.
2.
The items or services required are available only from one (1) source.
3.
A public emergency is such that the urgency will not permit a delay
beyond the time needed to employ one (1) of the other methods described
above. The bid procedures outlined in the policy may be waived under
emergency conditions where operations would be severely hampered.
When the need for an emergency purchase occurs, the department head
will notify the Mayor who will give verbal approval of the transaction
and furnish advice as to the best source of the item(s) sought. The
Mayor is authorized to order emergency purchase up to twenty-five
thousand dollars ($25,000.00). Any emergency purchase exceeding this
amount will require the verbal consent of two (2) Aldermen.
[Ord. No. 876, 6-28-2019; Ord.
No. 912, 6-24-2020]
The department heads and the City are encouraged to use cooperative
purchasing programs sponsored by the State of Missouri. Cooperative
purchasing can prove advantageous to the City by taking advantage
of the large quantity made by State government. Purchases made through
these programs have met the requirements of competitive bidding and
require the approval of the Mayor. City employees are encouraged to
check with the State regarding cooperative procurement contacts in
effect prior to making any large purchases.
[Ord. No. 876, 6-28-2019; Ord.
No. 912, 6-24-2020]
This policy and procedure was adopted by the City Board of Aldermen
on Friday, June 24, 2020, and will remain in effect until amended
or canceled by action of the City Board of Aldermen. A copy of this
policy shall be retained on file by the City Clerk's office and each
department within the City will be notified of its availability.
