City of Excelsior Springs, MO
Clay County
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Table of Contents
Table of Contents
Editor’s Note: Ord. No. 16-08-05 set out procurement policies that only apply to procurement under Missouri Department of Transportation Grants. This ordinance can be found on file in the City offices.

Section 165.010 Generally.

[Ord. No. 13-01-01 §1, 1-7-2013]
A. 
This policy provides guidelines to be followed in purchasing goods and services for the City of Excelsior Springs, Missouri. The City Manager shall be responsible for enforcing this policy. These policies are intended to promote increased efficiency, standardization of purchasing procedures while obtaining supplies, equipment and services as economically as possible.
B. 
All purchasing will demonstrate a reasonable and good faith effort to obtain goods and services at the lowest possible cost with the optimum quality needed. Competition among suppliers shall be encouraged.
C. 
No City employee or official shall have a financial interest in any purchase or contract issued by the City. Accepting gratuities in exchange for preferential treatment is strictly prohibited. Any discounts, free merchandise or prizes given as the result of City purchases become the property of the City.

Section 165.020 Definitions.

[Ord. No. 13-01-01 §1, 1-7-2013]
As used in this Chapter, the following terms shall have these prescribed meanings:
INVOICE
Actual billing received from the vendor. Invoices must indicate the following to be processed for payment:
1. 
Account coding/project number/transaction types if applicable
2. 
Invoice number
3. 
Invoice total
4. 
Purchase order number (if previously encumbered)
5. 
Description of purchase
6. 
Department head approval
PURCHASE ORDER
A document issued by the accounting system that can be shared with the vendor and shows that a financial obligation exists. A purchase order should not be generated until all of the appropriate approvals have been obtained.
PURCHASE REQUISITION
An internal document generated by the accounting system which documents items being purchased, quotations, and various approvals.

Section 165.030 Local Purchases of Goods and Services.

[Ord. No. 13-01-01 §1, 1-7-2013]
A. 
Goods and services purchased by the City shall be purchased from merchants and business owners located in the City, unless:
1. 
Such goods of like quality and services are not available in the City, or
2. 
The cost of such goods and services plus shipping and handling may be purchased outside the City at a savings of five percent (5%) or more; or
3. 
An emergency exists and such goods or services are not immediately available in the City; or
4. 
State/Federal requirements are such to require lowest bid.

Section 165.040 Domestic Products Procurement Policy.

[Ord. No. 13-01-01 §1, 1-7-2013]
A. 
It is the policy of the City to encourage the purchase of products manufactured or assembled or produced in the United States.
B. 
The Mayor shall certify in writing pursuant to the Missouri Domestic Products Procurement Act that the City has adopted a formal written policy to encourage the purchase of products manufactured, assembled or produced in the United States.
C. 
It is the intent of the City Council that, by virtue of the adoption of the policy stated in this Section, Section (3) of the Missouri Domestic Products Procurement Act shall not apply to the City, pursuant to the provisions of that Act.
D. 
State and Federal purchasing requirements may or may not require the purchase of American Goods, but may require the use of the least expensive goods regardless of where those goods are manufactured. In the event that State or Federal dollars are involved, the appropriate guidelines must be used.

Section 165.050 Contracts and Agreements.

[Ord. No. 13-01-01 §1, 1-7-2013]
A. 
All contracts and agreements which obligate the City to expend funds shall be in writing and approved as required by this Policy prior to delivery of supplies or services. A properly approved purchase order accepted in writing by the vendor is sufficient unless the contract requires periodic payments by the City after goods or services are delivered or performed or is for professional services.
B. 
All contracts for $12,500.01 or more shall be approved by the City Council as evidenced by ordinance or resolution appearing in the record of proceedings.
C. 
As used herein, "Contract" means all types of agreements, regardless of what they may be called, for the procurement or disposal of supplies, services or construction.

Section 165.060 Sole Source Purchasing.

[Ord. No. 13-01-01 §1, 1-7-2013]
A. 
In the event that there is only one (1) firm, company or individual capable of providing a particular service or supplies, requirements contained above shall not be applicable and the City Manager is authorized to proceed with the purchase of such services or supplies as are required by the City within the approval levels set forth later in this document. The determination that there is only one (1) source for the required service or supplies must be made in writing by the requesting Department Head and approved by the City Manager and Finance Department. Bid specifications which restrict the responsive bids to a sole source of goods or services must be approved as provided herein for sole source purchasing.
B. 
The following items may be approved for sole source procurement:
1. 
Interface upgrades, add on parts and components to existing, City-owned equipment that requires total compatibility assurance; license renewals for City-owned software and repair and maintenance for City-owned equipment and software for which it is technologically and cost effective to procure from the original seller or manufacturer;
2. 
Materials for resale in City concession operations that are purchased in response to customer demands;
3. 
Spot market purchases that are evidenced to provide a substantial savings to the City and that are approved by the City Manager and Finance Department. Any purchase of a dollar amount requiring City Council approval shall be submitted for review at the next scheduled City Council meeting; or
4. 
Specialized computer software for network applications that have been technically reviewed, tested and justified by the City's information technologies division and that are obtainable from a single source. This shall not apply to individual PC software obtainable from multiple suppliers.

Section 165.070 Subdividing Prohibited.

[Ord. No. 13-01-01 §1, 1-7-2013]
No contract shall be subdivided to avoid the requirements of this Policy.

Section 165.080 Approval Levels and Purchase Order Requirements.

[Ord. No. 13-01-01 §1, 1-7-2013]
A. 
Purchases From $0 To $999.99.
1. 
Items in this range may be purchased by City Departments without the creation of a purchase order. Department Heads must verify that monies are available in the budget and approve the purchase prior to the purchase being made. At a minimum, phone bids are encouraged, but not required for purchases over $250.00.
2. 
The invoice with proper coding and department approval should be forwarded to the Finance Department for payment.
B. 
Purchases From $1,000.00 To $3,500.99.
1. 
Items in this range require the creation of a purchase order. Department Heads must verify that monies are available in the budget and approve the purchase requisition in the accounting system prior to the purchase being made. Competitive quotations are required and shall be obtained in writing or by telephone from at least three (3) vendors. Quote information received will be tabulated (including the vendor name and the total bid only) and added to the comments section of the purchase requisition. The purchase order number shall be affixed to the invoice before it is forwarded to the Finance Department for payment.
2. 
Preference will be given to Excelsior Springs vendors where maintenance and warranty requirements make purchasing from local vendors more cost effective.
C. 
Purchases From $3,501.00 To $7,500.99.
1. 
Items in this range require the creation of a purchase order. Department Heads must verify that monies are available in the budget, approve the purchase requisition in the accounting system, and obtain Finance Department approval of the requisition prior to the purchase being made. Competitive quotations are required and shall be obtained in writing from at least three (3) vendors. Quote information received will be tabulated (including the vendor name and the total bid only) and added to the comment section of the purchase requisition. The purchase order number shall be affixed to the invoice before it is forwarded to the Finance Department for payment.
2. 
Preference will be given to Excelsior Springs vendors where maintenance and warranty requirements make purchasing from local vendors more cost effective.
D. 
Purchases From $7,501.00 To $9,999.99.
1. 
Items in this range require the creation of a purchase order. Department Heads must verify that monies are available in the budget, approve the purchase requisition in the accounting system, and obtain both Finance Department and City Manager approval of the requisition prior to the purchase being made. Competitive quotations are required and shall be obtained in writing from at least three (3) vendors. Quote information received will be tabulated (including the vendor name and the total bid only) and added to the comments section of the purchase requisition. The purchase order number shall be affixed to the invoice before it is forwarded to the Finance Department for payment.
2. 
Preference will be given to Excelsior Springs vendors where maintenance and warranty requirements make purchasing from local vendors more cost effective.
E. 
Purchases From $10,000.00 To $14,999.99.
1. 
Items in this range require the creation of a purchase order. Department Heads must verify that monies are available in the budget, approve the purchase requisition in the accounting system, and obtain both Finance Department and City Manager approval of the requisition prior to the purchase being made. Competitive sealed bids are required. Bid information received will be tabulated (including the vendor name and the total bid only) and added to the comments section of the purchase requisition. The purchase order number shall be affixed to the invoice before it is forwarded to the Finance Department for payment.
2. 
Preference will be given to Excelsior Springs vendors where maintenance and warranty requirements make purchasing from local vendors more cost effective.
F. 
Purchases Of $15,000 Or More.
1. 
Items in this range require the creation of a purchase order. Department Heads must verify that monies are available in the budget, approve the purchase requisition in the accounting system, and obtain both Finance Department and City Manager approval of the requisition prior to submitting the purchase to the City Council for approval. Competitive sealed bids are required. Bid information received will be tabulated (including the vendor name and the total bid only) and added to the comments section of the purchase requisition. In addition, detailed bid information will be provided to the City Council when this purchase is presented for approval. The purchase order number shall be affixed to the invoice before it is forwarded to the Finance Department for payment.
2. 
Preference will be given to Excelsior Springs vendors where maintenance and warranty requirements make purchasing from local vendors more cost effective.

Section 165.090 Emergency Purchases in Excess of $14,999.99.

[Ord. No. 13-01-01 §1, 1-7-2013]
A. 
The Director of Administrative Services or designated representative may authorize emergency procurement of supplies, services, or construction items when there exists a threat to public health, welfare, or safety; or when immediate repair is necessary to prevent further damage to public property, machinery, or equipment; or when City operations will be adversely affected as determined by the Department Director and City Manager or designated representatives.
B. 
Emergency purchases require prior approval of the Director of Administrative Services or designated representative and shall be procured by the following procedure. The Department Head or designated representative shall determine whether the purchase can be procured on an existing purchasing contract on a timely basis; or secure a minimum of three (3) quotations from vendors. Emergency purchases shall be made with as much competition as practical under the circumstances.
C. 
During periods of a "declared City emergency" by the Mayor, purchases may be made in accordance with the City Emergency Operations Plan.

Section 165.100 Contracts Requiring Payments Over Time.

[Ord. No. 13-01-01 §1, 1-7-2013]
Any and all contracts requiring payment over time must be approved by the City Council regardless of the monetary value of the contract.

Section 165.110 Exceptions.

[Ord. No. 13-01-01 §1, 1-7-2013]
A. 
Purchases of the following consumable items are exempted from the approval portions of this policy as long as monies are available in the budget to fund the purchase:
Gasoline and diesel fuel
Chlorine
Lime
Salt and sand for snow removal
This list is to be narrowly construed; only items specifically listed are exempted.
B. 
Purchase orders should still be issued for these purchases.
C. 
In addition, any equipment or vehicle purchases involving the trade-in of like equipment are exempted from only the purchase order requirements, but are subject to the approval portions of this policy. The reason these items are exempted from the purchase order system is that the system will not allow for the recording of trade-in value to a revenue account.

Section 165.120 Procurement (Bidding Methods).

[Ord. No. 13-01-01 §1, 1-7-2013]
A. 
Cooperative Procurement. The City Manager shall have the authority to join with other units of government in cooperative purchasing when the best interest of the City would be served. The requirements of this Section therefore, relative to competitive bidding, shall not apply to purchases made through or with the State of Missouri 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.
B. 
Purchases From $0 To $500.00. At a minimum, phone bids are encouraged, but not required for purchases over $250.00.
C. 
Purchases From $500.01 To $3,500.99. Competitive quotations are required and shall be obtained in writing or by telephone. Price quotation must be obtained from at least three (3) qualified bidders. Quotation information must be documented within the purchase requisition.
D. 
Purchases $3,501.00 To $9,999.99. Competitive quotations shall be obtained in writing. It should be clearly written as to what is being purchased, either goods or services. Price quotation must be obtained from at least three (3) qualified bidders. Quotation information must be documented within the purchase requisition.
E. 
Purchases Of $10,000.00 Or More. Competitive Sealed bids (formal advertising) — The invitation to bid shall be publicly advertised at least once a minimum of fourteen (14) days 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 the lowest and most responsible. All unsuccessful bidders must be notified in writing.
F. 
Evaluation Factors For Responsible Bidder. Evaluation factors for responsible bidder should include:
The past record of performance of the bidder with respect to such factors as competence of the bidder, quality of work and or product, and ability to meet schedules.
G. 
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. Proposals must be obtained from three (3) or more qualified sources. A Request for Qualifications/Proposals must be issued and publicized. This Request for Qualifications/ Proposals must identify all of the factors that will be used to evaluate proposals and qualifications, including the importance that price or cost will play in the selection. All proposals received must be evaluated. The award may be made to the respondent whose proposal would be most advantageous to the recipient. The basis for selection must be documented in writing. Unsuccessful respondents must be notified promptly in writing.
H. 
Evaluation Factors For Professional Services. Evaluation factors for Professional Services should include:
1. 
The specialized experienced and technical competence of the firm with respect to the type of services required.
2. 
The capacity and capability of the firm to perform the work in question, including specialized services, within the time limitations fixed for the completion of the project.
3. 
The past record of performance of the firms with respect to such factors as costs, quality of work, and ability to meet schedules.
4. 
The firm's proximity to and familiarity with the area in which the project is located.