A.
This
Chapter provides guidelines to be followed in purchasing goods and
services for the City. These policies and procedures supersede all
prior purchasing directives, memoranda, and practices. The City Administrator
shall be responsible for enforcing this policy.
B.
Lowest Best Quality Competition. 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.
Preference Area Vendors. Vendors will be treated in a fair
and professional manner with preference given to area vendors, if
all other things are equal.
D.
Conflict Of Interest. Any officer or employee of the City
is expressly prohibited from accepting, directly or indirectly, from
any person, company, firm or corporation to which any purchase order
or contract is, or might be awarded, any rebate, gift, money, or anything
of value whatsoever, except where given for the use and benefit of
the City. No City employee or official shall have a financial interest
in any purchase or contract issued by the City. Violation of this
provision is basis for dismissal.
E.
Budget Goal. The Board of Aldermen sets goals, priorities,
and standards for the City programs and services through adoption
of the annual budget. The budget establishes expenditure levels for
each department. No further Board action is required to initiate purchases
within the budget limits for purchases less than ten thousand dollars
($10,000.00).
F.
Department Head Authority. Department Heads are granted
full responsibility and broad discretion by the City Administrator
to make purchases within the scope of their departmental appropriations
subject to the rules contained within these regulations. Budget appropriations
do not mandate expenditure unless the need continues to exist at the
time of purchase. The City Administrator may establish spending levels
below those budgeted if revenue collections are inadequate to fulfill
budgetary needs.
G.
Sales Tax Exemption. All City purchases are exempt from
the sales taxes of Missouri and its political subdivisions.
[Ord. No. 1576 §1, 6-18-2007; Ord. No. 1640 §1, 6-15-2009]
A.
Purchases
under five thousand dollars ($5,000.00) require department head approval.
[Ord. No. 1899, 3-5-2018]
B.
Items Over One Thousand Dollars. Any item which exceeds
one thousand dollars ($1,000.00) purchased individually or in bulk
shall require competitive quotations. Quotes will be obtained in writing,
by telephone, or from current catalog price lists. Quotes shall be
solicited from at least three (3) vendors.
[Ord. No. 1899, 3-5-2018]
C.
Purchases Over Five Thousand Dollars. Individual purchases
which exceed five thousand dollars ($5,000.00) need to be signed by
the City Administrator as well as meet the requirements for items
over one thousand dollars ($1,000.00).
[Ord. No. 1899, 3-5-2018]
D.
Purchases Over Fifteen Thousand Dollars. Purchases in excess
of fifteen thousand dollars ($15,000.00) require legal advertisement,
written specifications, sealed bids, and are awarded by the Board
of Aldermen. Sealed bids shall be submitted to the Purchasing Officer
for public opening and evaluation prior to Board of Aldermen action. In
lieu of the requirement for legal advertisement, written specifications,
and sealed bids, the use of an electronic solicitation process which
allows vendors to provide cost estimates to public entities, and satisfies
the spirit and intent of the requirements for legal advertisement,
written specifications, and sealed bids, shall be authorized.
[Ord. No. 1899, 3-5-2018]
F.
Exceptions. These guidelines may be modified or waived under
any of the conditions listed below. Written justification for such
must be submitted with the Purchase Requisition.
1.
The goods or services are available from only one (1) vendor;
2.
Any emergency; (an emergency status must be approved by the Mayor
and City Administrator and reported at the next regular scheduled
Board meeting)
3.
A concession or maintenance service agreement is being renewed for
good workmanship, material, or performance for no more than one (1)
year;
4.
It is advantageous to purchase through the purchasing contracts of
other governmental agencies;
5.
The services are not conducive to lowest price bidding such as legal,
engineering, audit, or medical services;
6.
For purchases that are of an on-going, repetitive nature, i.e., concrete,
asphalt, equipment repairs, or any other items approved by the City
Administrator. The City Administrator shall have the authority to
approve, on an annual basis, a vendor listing of not less than three
(3) vendors to be used by the City for each approved product or service.
Vendors shall annually submit bids. Purchases may then be made by
Department Heads on a price/availability basis, for purchases up to
one thousand dollars ($1,000.00), without obtaining separate quotes
on each purchase; or
[Ord. No. 1899, 3-5-2018]
7.
Professional services for architecture, engineering, or land surveying
shall be obtained as further outlined in the Procurement Policy adopted
by the City.
8.
When it is determined after reasonable investigation that the goods
may be purchased at retail for less than the cost available through
sealed bids.
A.
Purchase Orders. For proper financial control, it is imperative
that all expenditures be authorized in advance. Normally, this will
require approval of a complete purchase requisition and purchase order.
B.
Purchase Requisition Functions. An approved purchase requisition
assures the employee that the specified goods or services may be obtained.
It provides information for the purchase order.
C.
Purchase Order Functions. An approved purchase order assures
the vendor that the City will pay for goods and services being purchased.
Completion of the receiving copy authorizing the Finance Department
to actually pay the vendor.
1.
The purchase requisition form must include the following information:
a.
Requisition number;
b.
Vendor name, address, and identification number;
c.
Shipping address if goods are not to be delivered to City Hall or
are to be picked up;
d.
Date of requisition;
e.
Date delivery is needed;
f.
Applicable general ledger expenditure account and/or project number;
g.
Quantity needed;
h.
Clear and detailed description of the items being requested; and
i.
Signature of the employee requesting the item, the Department Head,
and if the grand total exceeds five thousand dollars ($5,000.00),
the signature of the City Administrator.
[Ord. No. 1899, 3-5-2018]
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The requisition will be filled out in duplicate form. The requesting
department will retain one (1) copy and send one (1) copy to purchasing
along with any quote forms or specifications if required.
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2.
The purchase order form must include the following information:
a.
Purchase order number;
b.
Vendor name, address, and identification number;
c.
Shipping address if goods are not delivered to City Hall or are to
be picked up;
d.
Date of purchase;
e.
Date delivery is needed;
f.
Applicable general ledger expenditure account and/or project number;
g.
Quantity needed;
h.
Clear and detailed description of the items being ordered;
i.
Unit price of each item;
j.
Total price of each item calculated by multiplying the quantity needed
by the unit price;
k.
Grand total of all items including any freight, installation, or
other charges; and
l.
Signature of the designated Purchasing Officer and the Department
Head.
3.
The purchase order will be filled out on a three (3) part form. The
pink copy shall be sent to the department heads. The yellow copy will
be kept in the Purchase Order Book. The original copy will be attached
to the invoice.
4.
A total cost variance of up to three percent (3%) from the amount
on the original purchase order will be allowed with a written explanation
and approval by the appropriate Department Head. Any variance over
three percent (3%) must be approved by the City Administrator.
A.
All
purchasing activities will be documented to verify a good faith effort
to obtain the lowest possible price at the optimum quality. This documentation
will be submitted to the Purchasing Department with the purchase order
or payment voucher.
1.
Quote form. A record of any quotes or bids will
be submitted to purchasing to document vendor competition. This record
shall include a list of vendors solicited, persons contacted, dates,
prices, quantities, and any other pertinent information. The Department
Head may solicit informal telephone bids with the assistance of the
Purchasing Officer.
2.
Other documentation. The purchasing documentation
should also include verification of receipt and actual cost. This
may be provided by receiving slips, detailed invoices, and/or receipts.
3.
The Purchasing Department shall maintain the documentation submitted
with purchase orders and payment vouchers. The Purchasing Officer
shall maintain copies of all purchase orders in numerical order and
an inventory of fixed assets.
A.
A detailed
list of any surplus, obsolete, worn-out, or confiscated department
property shall be submitted to the Purchasing Department with recommendation
for disposal. The list will be circulated to all Department Heads.
Upon request, items may be transferred to another department subject
to approval of the City Administrator.
B.
Surplus
property may be sold by sealed bid or public auction with authorization
of the Board of Aldermen. Such items shall be stripped of all City
identification prior to the sale. Unsold items may be junked and sold
for scrap upon approval of the City Administrator.
A.
FIRM
PROFESSIONAL SERVICES
Definitions. The following words shall have the meanings
as set out herein:
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, or to provide professional
services as described herein.
Those services within the scope of 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.
B.
Roster Of Consultants. The City will maintain a roster,
classified by category of professional service of qualified firms
interested in performing professional services for the City. Names
of firms shall be placed on the roster upon their request, at the
request of the City Administrator, or when recommended by City Department
Heads.
C.
Each
firm meeting the following minimum qualifications shall be deemed
to be a qualified firm and meeting the qualifications of the City.
1.
Duly authorized to conduct business in the State of Missouri in their
particular profession;
2.
Professional registration by the State of Missouri; and
3.
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.
D.
Each
firm listed on the roster shall be responsible for maintaining a current
resume describing its qualifications and experience to be filed with
the City. Firms having a roster on file shall update the information
contained therein on an annual basis.
1.
Data which should be included is as follows:
a.
Firm name, address, telephone numbers;
b.
Year established and former firm names (if applicable);
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 consultant
in the previous three (3) years; and
i.
Current projects underway and estimate cost of each.
A.
The
procurement policy herein described shall be initiated for projects
whose expenditure value exceeds five thousand dollars ($5,000.00)
or in other cases in which the City Administrator may deem it advisable.
B.
Project Initiation. When a Department Head 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 which type of selection
will be required in accordance with the policies of the purchasing
manual. The scope of services should include the following:
C.
Expressions Of Interest. After authorization, the Department
Head will contact those firms on the roster and those firms responding
to advertisements, if applicable, for a written expression of interest
in the specific project. The request should invite comment as to the
special experience with similar projects, and the availability of
the firm to provide required service within any time limitations.
D.
Screening And Requests For Proposals. The expressions of
interest will then be presented to the Department Head for initial
screening. Factors to be determined in the initial screening will
include:
1.
Specialized experience in the type of work required;
2.
Record of the firm in accomplishing work on other projects in the
required time;
3.
Quality of work previously performed by the firm for the City;
4.
Recent experience showing accuracy of cost estimates;
5.
Community relations including evidence of sensitivity to citizen
concerns;
6.
Geographic location of the office of the firm which would serve the
project;
7.
Qualifications and experience of key personnel; and
8.
Relations with previous clients.
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The Department Head, with the advise and consent of the City
Administrator, will designate three (3) or four (4) firms who will
be requested to present detailed proposals on the project and be interviewed.
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E.
Detailed Proposals. Firm submitting detailed proposals will
be asked to provide the following:
1.
A resume of the firm principal who will be responsible for the project;
2.
A resume of the proposed project supervisor;
3.
Resumes of key project personnel;
4.
A statement of the ability of the firm to meet required time schedules;
5.
A description of how the project would be conducted;
6.
A schedule of hourly rates for various services offered and a proposed
project fee range;
7.
A list of municipal references for similar types of projects; and
8.
Any other pertinent information the firm wishes to present.
F.
Interview And Selection. Upon receipt of the detailed proposals,
the Department Head will review the proposals, interview the prospective
firms, and make the final selections as to the firm for the project.
Similar systems for rating shall be used on similar projects and will
be standardized where possible. The prime factor to be rated in the
final screening are the firm's:
1.
Management capabilities;
2.
Technical capabilities;
3.
Approach to the project;
4.
Understanding of City's objectives;
5.
Proposed work schedule;
6.
Staff to be assigned;
7.
Fee and/or schedule of hourly rates;
8.
Knowledge of local situation;
9.
Ability to communicate;
10.
Presentation and attitude; and
11.
Confidence factor.
G.
Contract Negotiation. The selected firm will then be requested
to come in for a final conference with the Department Head to define
precisely the scope of services to be provided and to finalize the
compensation requirements for the work. A contract will then be prepared
and submitted to the City Attorney for review, and then submitted
to the City Administrator for presentation to the Board of Aldermen
for approval, as required by the purchasing manual.
If, after 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.
H.
Exceptions.
1.
In view of the fact that special conditions will occasionally arise
that make use of this policy impractical, exceptions can be made.
Reasons for exceptions may include an emergency situation which precludes
a selection time frame of at least two (2) months, or an extremely
specialized need in which there is only one (1) feasible source of
expertise. If it appears there is a need for an exception to the policy,
the City Administrator will inform the Board of Aldermen to allow
them the opportunity to deny the exception.
2.
If the number of firms willing and available to perform a specified
task is small, the step involving initial screening may be skipped
and the selection process will go directly to detailed proposals.
3.
If two (2) or more projects, during any three (3) year period, are
of such similar nature, the Department Head, with the approval of
the City Administrator, may request a detailed proposal from a previously
contacted firm and then, following an interview, enter into contract
negotiations with that firm. Should contract terms not be reached
with the selected firm, the Department Head must revert to the procedures
as outlined previously in this policy.
A.
This
amount will include all services to be rendered to the City by the
firm, with the exception of certain pass-through expenses that will
be identified by contract, if applicable, and it will be calculated
by one (1) of the following methods, at the preference of the City:
A.
Each
contract entered into by the Board of Aldermen for professional services
shall contain a prohibition against contingent fees as follows:
"No firm shall retain a person, to solicit or secure a City
contract for professional services upon a agreement or understanding
for a commission, percentage, brokerage, or contingent fee, except
for retention of bona fide employees or bona fide established commercial
selling agencies for the purpose of securing business."
B.
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.
