City of Trenton, MO
Grundy County
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Table of Contents
Table of Contents
Editor's Note — Ord. no. 2013-6 §1, adopted February 25, 2013, amended ch. 155 "purchasing policy" and enacted new provisions set out herein. Former ch. 155 derived from R.O. 2011 §§155.010 — 155.110; ord. no. 97-70 §1(1 — 11), 8-27-1997.
[Ord. No. 2013-6 §1, 2-25-2013; Ord. No. 2014-43 §1, 10-27-2014; Ord. No. 2015-24 §1, 4-13-2015]
A. 
Purpose. This policy is intended to outline the purchasing policies for the City of Trenton, to include Trenton Municipal Utilities, and the Trenton Park Department. 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 Administrator or his 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. 
Consistent with these objectives, a part of the City's procurement activity is decentralized. In recognition of the cost of staff time and to reduce the cost of making small purchases up to $2,500, department heads may be given the authority as prescribed by the Purchasing Agent to make limited purchases without additional approvals.
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. Procurements by the City of Trenton are 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 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 in which he or she personally has a direct or predictable effect on his or her 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 his or her 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. 
Purchasing analysis. Keep informed of current developments in the fields of purchasing, prices, market conditions and new products, and secure for the City the benefits of research done in the field of purchasing by other governmental jurisdictions, national technical societies, trade associations having national recognition and private businesses and organizations.
3. 
Forms. Prescribe and maintain such forms as he/she shall find reasonable and necessary to the implementation of the purchasing policy.
4. 
Bulk purchases. Exploit the possibilities of buying in bulk so as to take full advantage of discounts.
5. 
Federal tax exemptions. Act so as to procure for the City all Federal and State tax exemptions to which it is entitled.
6. 
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 Grundy County [not to exceed one thousand dollars ($1,000)]. In the event a local supplier can meet the need for a cost that is within five percent (5%) to any other known supplier, the item shall be purchased from a local vendor. The City Council or board shall be the final authority on applying local incentive.
[Ord. No. 2013-6 §1, 2-25-2013; Ord. No. 2014-43 §1, 10-27-2014; Ord. No. 2015-24 §1, 4-13-2015]
A. 
All purchases or contracts of any kind or description, payment for which is to be made from funds of the City of Trenton, shall be, without exception, in the following manner:
1. 
Purchases costing under two thousand five hundred dollars ($2,500.00). Items in this category, used on a day-to-day basis, may be purchased with the approval of supervisory personnel (i.e., department heads) without competitive bidding on each item. However, even on these items, periodic price checks (by telephone, e-mail, fax, catalog listings, etc.) should be made to be certain the purchases are of good value. Items used on a day-to-day basis consist of office supplies and other items that are routinely purchased. For items under two thousand five hundred dollars ($2,500) that are not routinely purchased, it is required to obtain three (3) estimates to ensure that the lowest, best price is received.
2. 
Purchases costing two thousand five hundred one dollars ($2,501.00) to ten thousand dollars ($10,000.00). Items in this category shall be secured on competitive bid basis and may be purchased with the approval of the City Administrator. This must be accomplished by attempting to secure at least three (3) written, formal bids obtained utilizing advertisement and specifications.
3. 
Purchases costing over ten thousand one dollars ($10,001.00). Items in this category shall be secured on competitive bid basis and must be purchased with the approval of the City Council. This must be accomplished by securing at least three (3) written, formal bids obtained utilizing advertisement and specifications.
[Ord. No. 2013-6 §1, 2-25-2013; Ord. No. 2014-43 §1, 10-27-2014; Ord. No. 2015-24 §1, 4-13-2015]
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 with a 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 Trenton 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 Trenton encourages bidders to employ qualified Trenton residents.
[Ord. No. 2013-6 §1, 2-25-2013; Ord. No. 2014-43 §1, 10-27-2014; Ord. No. 2015-24 §1, 4-13-2015]
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 Trenton. 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.
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.
[Ord. No. 2013-6 §1, 2-25-2013; Ord. No. 2014-43 §1, 10-27-2014; Ord. No. 2015-24 §1, 4-13-2015]
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 pending 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 reported to the Council or board at the next regular meeting of that body. All change orders over fifty thousand dollars ($50,000.00) or over twenty percent (20%) of the original contract amount shall be approved by the Council or board prior to implementation of the change.
[Ord. No. 2013-6 §1, 2-25-2013; Ord. No. 2014-43 §1, 10-27-2014; Ord. No. 2015-24 §1, 4-13-2015; Ord. No. 2017-37 § 1, 5-8-2017; Ord. No. 2018-10, 2-26-2018]
A. 
City Business License. All vendors subject to City of Trenton business license requirements shall have a current business license before the City of Trenton 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 ten thousand dollars ($10,000.00) must be preapproved by the City Council.
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, it is 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, it is 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 performance bond is deemed necessary, it is 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, and require an original certificate from the issuing company stating that the bond is in effect and that the bonding company executing the bond 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. Generally, insurance coverage will be 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 timelines 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. 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 shall apply.
F. 
Emergency Purchases. In case of an emergency which requires an unforeseeable, immediate purchase of supplies or services and time is of the essence, the City Administrator 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 Agent with the City Council each time an emergency purchase over ten thousand dollars ($10,000.00) 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. Professional services selection is detailed in a separate Section.
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. Nor contract or purchase shall be subdivided to avoid the requirements of this Chapter.
J. 
Design-Build. The City may utilize design-build project delivery as set forth in the Missouri Statutes.
K. 
Purchase Of Used Equipment. Upon receipt of written authorization from the City Administrator, department heads may purchase used equipment without the necessity of the bidding requirements as stated herein, provided that the following conditions are met:
1. 
The equipment was specifically identified under the appropriate account department in the most recent budget approved by the City Council; and
2. 
The total purchase price of the equipment does not exceed the amount approved under the most recent budget approved by City Council.
[Ord. No. 2013-6 §1, 2-25-2013; Ord. No. 2014-43 §1, 10-27-2014; Ord. No. 2015-24 §1, 4-13-2015]
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.
[Ord. No. 2013-6 §1, 2-25-2013; Ord. No. 2014-43 §1, 10-27-2014; Ord. No. 2015-24 §1, 4-13-2015]
A. 
All departments shall submit to the City Administrator, 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 Administrator is hereby authorized to transfer surplus stock to other departments and establish the financial value, if any, of the transfers.
2. 
Sales. The City Administrator is hereby authorized 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. Sales under this Subsection shall be made to the highest possible bidder.
[Ord. No. 2013-6 §1, 2-25-2013; Ord. No. 2014-43 §1, 10-27-2014; Ord. No. 2015-24 §1, 4-13-2015]
A. 
Definitions.
FIRM
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.
PROFESSIONAL SERVICES
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.
SELECTION COMMITTEE
The City Administrator, Community Development Director, City Clerk or Comptroller, Utility Director (for Trenton Municipal Utility projects) and the department or division head having jurisdiction of the involved project.
B. 
Roster Of Consultants.
1. 
The City Administrator 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 City Council, 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 its 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 its qualifications and experience with the City Administrator'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 City Council.
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 Administrator, Utility Director, Comptroller, or City Clerk.
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 Administrator for authorization to initiate the project and a determination as to whether the Council 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 Administrator for presentation to the City Council 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 City Council 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 City Council 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 City Council in its sole and absolute discretion may waive any and all aforementioned procedural requirements.