[CC 1976 §135.010; Ord. No. 1272 §1, 4-26-1977]
A purchasing system is hereby established for the City of Shrewsbury, Missouri. The Administrative Assistant to the Mayor is hereby designated Purchasing Agent and shall be responsible for the operation and enforcement of the system. In the absence of the Administrative Assistant the Mayor may designate some other person to act as Purchasing Agent.
[CC 1976 §135.020; Ord. No. 1014 §2, 4-14-1970]
It shall be understood that the terms, "purchase" or "purchases" when used shall apply to the expenditure of any funds whether it be for supplies, materials, equipment, contractual services, or professional services.
[CC 1976 §135.030; Ord. No. 1014 §3, 4-14-1970]
The objectives of the purchasing system shall be as follows:
To procure materials, supplies, equipment and service at the lowest cost consistent with the quality and service rendered.
To establish clearly the responsibility for the purchasing function as being vested in the Purchasing Agent only.
To exercise positive financial control over purchases.
To provide an efficient means for procurement of materials or equipment.
To establish and maintain standards of quality in materials, supplies, equipment and services based on suitability for use.
[CC 1976 §135.040; Ord. No. 1014 §4, 4-14-1970]
It shall be the duty of the Purchasing Agent to design needed forms and to develop a system so that the following information shall be readily available;
Quantity, description, unit price and total cost of items purchased.
Request for purchase originated by whom.
Acknowledgement that comparative prices, quotations or bids were obtained.
Date of Board approval.
Balance of budgeted funds available for future purchases.
A summary of outstanding orders placed.
For reference purposes, information on major purchases.
[CC 1976 §135.050; Ord. No. 1014 §5, 4-14-1970; Ord. No. 1857 §1, 7-14-1992]
The Purchasing Agent shall have the responsibility for preparing specifications of the equipment, materials, supplies or services other than professional, to be purchased. The Purchasing Agent shall consult with the various departments concerned to ascertain their needs. Specifications for purchases in excess of two thousand dollars ($2,000.00) shall be approved by the Board of Aldermen prior to submission for bids.
[CC 1976 §135.060; Ord. No. 1014 §6, 4-14-1970]
The Mayor or the Purchasing Agent shall sign all contracts for services which may be necessary to obtain supplies, materials, equipment, maintenance or repair work.
[CC 1976 §135.070; Ord. No. 1014 §7, 4-14-1970]
In lieu of all regulations herein set forth, professional services shall be retained by passage and approval of an appropriate ordinance by the Mayor and Board of Aldermen. Said ordinance shall set forth all conditions and considerations in connection therewith.
[CC 1976 §135.080; Ord. No. 1014 §8, 4-14-1970]
In lieu of all regulations herein set forth, contractors' services shall be retained by passage and approval of an appropriate ordinance by the Mayor and Board of Aldermen. Said ordinance shall set forth all conditions and considerations in connection therewith.
[Ord. No. 2475 §1, 9-22-2006]
Should any contractor impose an additional collection fee upon the City of Shrewsbury, Missouri, for any billing previously issued by the contractor for services performed under a contract which has been authorized by the Board of Aldermen of the City of Shrewsbury, that collection fee will be imposed upon those individuals who were previously billed for those services.
[CC 1976 §135.090; Ord. No. 1014 §9, 4-14-1970]
Whenever feasible, the Purchasing Agent shall institute scheduled buying for items which are used on a volume basis by the City or for replacement of equipment.
[CC 1976 §135.100; Ord. No. 1014 §10, 4-14-1970]
The Purchasing Agent shall strive to establish a relationship of mutual confidence and satisfaction between the City and its' suppliers. To accomplish this, the Purchasing Agent must be aware of all transactions that are conducted between the City and its suppliers. All contracts between the City and the vendor's representatives shall be through the Purchasing Agent. The Purchasing Agent will refer catalogs or other advertising to the departments concerned. Departments which correspond directly with a vendor on technical matters concerning items to be purchased shall forward copies of this correspondence to the Purchasing Agent.
[CC 1976 §135.110; Ord. No. 1014 §11, 4-14-1970]
Whenever feasible, the Purchasing Agent shall make arrangements for purchasing in conjunction with other units of government in order to obtain a better bid price for purchases.
[CC 1976 §135.120; Ord. No. 1014 §12, 4-14-1970; Ord. No. 1348 §1, 3-27-1979; Ord. No. 1825 §§1—2, 3-26-1991; Ord. No. 1857 §§1—7, 7-14-1992; Ord. No. 1891 §1, 7-13-1993; Ord. No. 2137 §1, 12-23-1997; Ord. No. 2424 §1, 4-15-2005]
Competitive bidding required. All items purchased shall be subject to competitive bidding except as herein contained or as otherwise provided for in this Chapter.
Items exempt from bidding. Items exempted from competitive bidding include, but are not limited to, the following:
Insurance and bonds.
Purchases made cooperatively with other units of government.
Services of individuals possessing a high degree of professional skill.
Purchases from federal, state or other local governmental units.
Contracts for printing or engraving of bonds or other evidence of indebtedness.
Magazines, books or periodicals.
Competitive bid categories. The Purchasing Agent shall solicit bids on all purchases costing more than two thousand dollars ($2,000.00), as follows:
Purchases of $2,000.00 to $5,000.00 inclusive. For purchases totaling two thousand dollars ($2,000.00) to five thousand dollars ($5,000.00) written quotations shall be obtained from no fewer than three (3) firms on each desired item to be purchased whenever feasible.
Purchases over $5,000.00. For purchases totaling five thousand dollars ($5,000.00) or more written, formal, sealed bids from no fewer than three (3) firms shall be solicited on each item whenever feasible.
The Board of Aldermen may require that an invitation to bid be published in legal and/or local newspapers. When the item being purchased is considered capital goods, such as street equipment, total cost bids may be requested. Such bids shall include the purchase price, the guaranteed resale value, the guaranteed maximum maintenance cost, a performance bond and any other information pertinent to the life expectancy of the equipment and costs relative to the operation of such equipment.
Insurance and indemnification. In addition to the other requirements required by the Code, Board of Aldermen, other ordinances or State law, all bid documents shall include an insurance clause as follows:
All bidders shall obtain and maintain in force Worker's Compensation Insurance as prescribed by the Statutes of Missouri for all employees of the bidder and for all employees of all subcontractors for the term of the contract. It is further agreed that the successful contractor shall furnish the City with a verified copy of a certificate of insurance or a copy of the policy or policies of such worker's compensation coverage and the minimum insurance coverages set forth below in Subparagraph (4)(b) of this Subsection (A), which shall be filed in the office of the City Clerk. The insurance shall be carried by a firm or corporation which has been duly licensed or permitted to carry on such business in the State of Missouri and subject to approval of the Mayor and the City Attorney and a certificate of proof of good standing from the Department of Insurance together with proof of good standing from the Missouri Secretary of State's office shall be furnished to the City. Said insurance firm or corporation shall be rated by A.M. Best or Standard & Poor's as having not less than an "A" rating. The certificate of insurance or policy or policies shall further indicate that the said policy or policies will not be altered, amended or terminated without thirty (30) days' written notice having been given to the City of Shrewsbury. The Board of Aldermen reserves the right to increase or decrease the minimum coverage amounts on a per project basis.
Minimum coverage amounts.
Automobile combined single limit: $1,000,000.00.
Other liability. Contractual liability limits as indicated in Subsection (A) Subparagraph (4)(b)(1) above.
Special items. Per project endorsement.
The contractor shall indemnify, defend and hold the City and its elected and appointed officers harmless from and against any and all damages, losses, liabilities, obligations, settlements, actions, suits, costs, disbursements or expenses of any kind whatsoever (including without limitation, reasonable attorneys' fees) which may at any time be imposed upon, incurred by or asserted or awarded against the City and/or its elected and/or appointed officers as a result, directly or indirectly or in any manner, of the performance or failure of performance on the part of contractor and that a certificate of insurance so indicating, shall be furnished to the City. In addition, contractor shall indemnify, defend and hold the City and its elected and appointed officers harmless from and against any and all damages, losses, liability, obligations, settlements, actions, suits, costs, disbursements or expenses of any kind whatsoever (including without limitation reasonable attorneys' fees) which may at any time be imposed upon, incurred by or asserted or awarded against the City and/or its elected and/or appointed officers arising directly or indirectly or in any manner under or on account of any local, State or Federal Statute, law, ordinance, regulation or judgment related to the existence, disposal or release of hazardous substances, materials or waste as defined by any local, State or Federal law or regulations.
Competitive bids waived. In the event the Board of Aldermen deems it unnecessary that bids be solicited, then the aforestated requirements may be waived by a motion made and duly approved and recorded in the minutes of the Board's meeting.
Emergency purchases. In the case of emergency, all competitive bid requirements as herein provided, shall be suspended; and if formal Board approval of the purchase is required, said approval shall be recorded in the minutes of the next regular meeting of the Board of Aldermen.
Bid surety required. When deemed necessary by the Board of Aldermen, a bid surety may be required of the bidders. The amount of the surety required will be determined by said Board. Bidders failing to post the required surety will not be considered eligible. Bids not complying with the delivery terms and conditions and the specifications will also not be considered eligible.
Opening of bids. All formal bids will be opened at the time specified on the inquiry form and read in public at any designated meeting of the Board of Aldermen. All bidders or interested parties may attend the bid opening. A tabulation of all bids received shall be available for inspection of any interested party.
Rejection of bids. The Board of Aldermen may reject any or all bids if it determines that acceptance of the bids would not be in the best interest of the City.
Awarding of bid. The Board of Aldermen will make the award to the lowest and best bid. In determining the lowest and best bid, the Board shall consider other factors besides price. These factors shall include but not be limited to: The trade-in value of specific makes of equipment as opposed to another; the life expectancy of the items to be purchased; the maintenance costs of varying models of vehicles and equipment; the experience and reputation of the bidder and manufacturer and any previous business dealings which the bidder has had with the City; and the quality and adaptability of the supplies or contractual services which are bid to the particular use required.
Accepted bid prices effective for ninety days. The Purchasing Agent may, for ninety (90) days following the bid date, purchase additional quantities of materials, supplies, or equipment for which he/she has previously established the lowest and best bid, by referring to the particular bid and confirming the existing price with the vendor.
Purchase order required. Unless otherwise provided, no purchase shall be made on behalf of the City of Shrewsbury without the issuance of a purchase order. The purchase order is the vendor's authorization to ship the equipment, materials, or supplies as specified thereon. It constitutes the contract between the City and the vendor. In addition to the foregoing requirement, the following procedures shall be followed:
Purchases of $2,000.00 or less. Purchase of items at a cost of two thousand dollars ($2,000.00) or less shall be executed by the Purchasing Agent or a duly authorized representative.
Purchases over $2,000.00. No purchase exceeding two thousand dollars ($2,000.00) shall be made without prior approval by the Board of Aldermen.
Purchase order not required—when. When no purchase order is issued, a detailed invoice showing the items purchased or repaired, with a break-down of the cost thereof, shall be submitted to the Purchasing Agent immediately upon completion of the transaction.
Emergency purchases. Emergency purchases shall be made in accordance with the provisions of Section 135.170 of this Chapter.
Items exempt from purchase order. Purchase orders need not be issued for certain items of expenditure which are normal recurring obligations of the City, where the amount to be charged is not known until after a service has been performed or until after a specified billing period has elapsed. Items so exempted include, but are not limited to, the following:
Telegraph and telephone services;
Gasoline and oil (if purchased on a daily basis from local stations);
Insurance and bonds of all types;
Tree removal services;
Dues and subscriptions;
Publications as required by law;
Outside accounting service;
Deposit and bond refunds;
Expenses connected with public hearings of various boards and commissions;
Pension contributions and payments;
Federal and State tax payments;
Transfers of funds;
Tax collection expenses;
Election expenses; or
Rental and other charges for Xerox photocopy service.
Formal contracts. When a formal contract has been entered into on behalf of the City, no purchase order need be issued; however, Contractors supplying services or who are involved in construction or repair of buildings, streets, sewers, sidewalks or other structures, shall present to the City Certificates of Insurance and Bonds. Said Certificates and/or Bonds shall be checked by the City Attorney for content and legality, and by the City Engineer for content and accuracy.
Change order required. A change order is to be used to change, correct, or cancel any order. Change orders will be prepared by the Purchasing Agent whenever a change in the original purchase order makes it necessary. Change orders are not to be used to purchase items which were not contemplated in the original bid inquiries. A purchase order form marked "Change Order to Purchase Order No. _____ " constitutes a change order.
[CC 1976 §135.130; Ord. No. 1014 §13, 4-14-1970]
It shall be the duty of the Purchasing Agent, prior to the issuance of a purchase order, to check the Budget to ascertain whether budget funds are available. In the event funds are unavailable, the Purchasing Agent shall refer the matter to the Board of Aldermen for its consideration.
[CC 1976 §135.140; Ord. No. 1014 §14, 4-14-1970]
Prior to payment of purchases made, the following procedures shall be observed:
Acceptance of purchases by departments. The Department Head or his/her authorized representative receiving the material, supplies or equipment shall promptly check all purchases against the receiving copy of the purchase order, making written notations of any missing or broken items, or any variation in quantity ordered. If the purchase is acceptable, the Department Head shall so indicate in writing. If the materials delivered are not in conformity with the specifications or for other reasons are not acceptable to the Department Head, he/she shall notify the Purchasing Agent in writing of the reasons for withholding acceptance. The Purchasing Agent will notify the vendor that his/her delivery has been rejected and will order him/her to make a satisfactory replacement or a supplementary delivery.
Acceptance of construction. All purchases involving construction of streets, sewers, sidewalks or structures shall be approved by either the City Engineer or the Building Commissioner, and such work shall be formally accepted by the Board of Aldermen. Lien waivers shall be filed with the City by the Contractor, and shall be checked by the City Attorney.
Miscellaneous. All purchases not affected by Subparagraphs (1) or (2) of this Section, shall be carefully reviewed by either the Mayor or the City Clerk to ascertain that the purchase has been satisfactorily completed.
[CC 1976 §135.150; Ord. No. 1014 §15, 4-14-1970]
An invoice is the vendor's statement of his/her charges against the City for materials, supplies, equipment or services rendered. Invoices are to be based on the purchase order and must contain substantially the same information. Prior to payment of the invoice, it is to be checked against the purchase order and the receiving report. After this verification, the Purchasing Agent will stamp the invoice, indicating approval for payment. Paid invoices and completed requisitions shall be kept on file for a period of at least three (3) years and shall be available for audit.
[CC 1976 §135.160; Ord. No. 1014 §16, 4-14-1970]
The Mayor and the City Clerk are hereby authorized to issue warrants authorizing the Treasurer to draw checks in payment of all purchases made in accordance with the provisions of this Chapter.
[CC 1976 §135.170; Ord. No. 1014 §17, 4-14-1970]
Definition Of Emergency. An "emergency situation" shall be defined as any situation in which the life, safety or health of any person is in danger or the destruction of, or damage to, public or private property is imminent.
During Normal Working Hours. For emergency purchases necessary during normal working hours, the Department will notify the Purchasing Agent, who will, if necessary, obtain permission for the purchase from the Mayor or the Board of Aldermen, in accordance with the provisions of Section 135.120, Subsection (B) of this Chapter. In the event that none of the aforementioned officers are available for consultation, the Department Head shall determine whether or not the purchase shall be made.
After Normal Working Hours. If the emergency occurs at times other than normal working hours, the department head or the next ranking officer may purchase directly the commodities needed.
Requisition And Sales Receipts Or Invoices—Required. At the time of purchase, the department will secure from the vendor a sales ticket or invoice for the material. A requisition will then be made out in the usual manner, except that the words "emergency purchase" are to be written on the requisition. The nature of the emergency shall be given on the requisition or on an accompanying letter, if necessary. The sales ticket or invoice and the requisition will then be forwarded to the Purchasing Agent no later than the following work day. If the item was purchased on credit, the Purchasing Agent shall issue a purchase order to the vendor in the usual manner, marking the order "Confirming Memorandum for Purchase of Materials, Supplies or Equipment on (date)."
Purchases To Be Kept To A Minimum. Emergency purchases of any nature are to be kept to a minimum.
[CC 1976 §135.180; Ord. No. 1014 §18, 4-14-1970]
The Purchasing Agent may, whenever desirable or feasible, consolidate requests for materials, supplies or services which are constantly needed by the City for the purpose of obtaining bids on one large order. A price and delivery inquiry will be sent to vendors, which will state an estimate of the probable needs of the commodity by the City over a specified period of time. Upon determination of the lowest and best bidder, the Purchasing Agent will inform the vendor selected of the City's acceptance of his/her terms. A contract will then be executed between the City and the vendor for the length of time specified in the bid inquiry.
The using departments will forward a requisition to the Purchasing Agent requesting delivery of a specified amount of the material listed in the contract. This requisition shall contain the inquiry number of the contract or the name of the vendor with whom the City has an existing contract.
Upon receipt of a requisition for material on which there is an existing contract, the Purchasing Agent will issue a purchase order to the vendor. Delivery of materials, supplies or equipment by the vendor without having received a valid purchase order signed by the Purchasing Agent shall not be accepted.
[CC 1976 §135.190; Ord. No. 1014 §19, 4-14-1970]
Certain supplies which are used by the various departments may be obtained through the use of blanket purchase orders.
Blanket order—defined. A "blanket purchase order" is defined as a purchase order issued by the Purchasing Agent at the beginning of the month to a particular vendor for an estimated dollar amount to be purchased during that month. The department using the supplies may then draw against this purchase order according to its need during the month.
Limited use. Blanket purchase orders shall be limited to vendors who are the only source for the particular supplies needed, and to vendors with whom the City has an existing price agreement contract.
Requisition required. Departments using supplies for which blanket purchase orders are applicable will submit a requisition for a blanket purchase order ten (10) working days prior to the first of each month to the Purchasing Agent. The requisition shall be prepared in the usual manner, except the name of the vendor to be issued the blanket purchase order is to be inserted in the description column and the estimated amount of the purchase order is to be inserted in the column "Total Estimated Cost".
Issuance of blanket purchase order. After receipt of the requisition, the Purchasing Agent will determine if the vendors listed thereon have a price agreement contract with the City or they are the only source for the supplies needed. A purchase order will then be issued to each vendor who meets these qualifications. The description column of the purchase order will contain a statement that the order is a "blanket purchase order" for the ensuing month, and not to exceed the amount thereon. The supplies to be purchased during the month will be described in a general manner.
Purchases—how made. After the Department has received its copy of the blanket purchase order, supplies described generally on the purchase order may be obtained by ordering directly from the vendor. Orders may be verbal or otherwise, however, each invoice or duplicate sales ticket must contain the blanket purchase order number to which the supplies are to be charged. The receipt of individual shipments are to be recorded on the receiving copy of the purchase order, so that the department may be aware of the remaining unexpended portion of the purchase order. All invoices or duplicate sales tickets obtained with each purchase shall immediately be given to the Purchasing Agent.
Depletion, reimbursement and adjustment of blanket purchase order. In no instance shall departmental orders be allowed to exceed the amount encumbered by the blanket purchase order. In the event the amount of the blanket purchase order becomes depleted, the department shall forward another requisition to the Purchasing Agent requesting an additional blanket purchase order for the remainder of the month. In the event the amount of the blanket purchase order exceeds the amount of the required purchases, on the last day of the month, the amount of actual purchases made shall automatically become the total of the blanket purchase order.
Blanket purchase order—denied when. In the event a Department Head misuses the privilege of a blanket purchase order, or if in the estimation of the Purchasing Agent, an abnormal amount of supplies or materials are being purchased, the Purchasing Agent may deny the approval of a blanket purchase order.
[CC 1976 §135.200; Ord. No. 1014 §20, 4-14-1970]
Materials or equipment which are deemed to be surplus or which may have become obsolete, may be disposed of by the Purchasing Agent in accordance with the provisions herein set forth.
Surplus City property, other than real estate, of a value not in excess of one hundred dollars ($100.00), shall, with the approval of the Mayor, be disposed of by the Purchasing Agent in whatever manner deemed most advisable.
Surplus City property other than real estate, of a value in excess of one hundred dollars ($100.00) shall be disposed of as directed by the Board of Aldermen.
In the event the Board of Aldermen deems it necessary to advertise for bids for surplus or obsolete property, the Purchasing Agent will insure that the practices of competitive bidding as provided for in Subsection (A) of Section 135.120 of this Chapter are followed. Determination of the highest and best bidder will be made by the Board of Aldermen.