HomeMy WebLinkAbout2005-107 - Purchasing Policy.. ~. ..
BILL NO ~nnS-107 _
ORDINANCE N_~5-107
AN ORDINANCE KETTLE II,NOF THEPMUNIC PAL CODE REG OARDINGOUGH
135.020) OF
PURCHASING AND CURETMINEN IN LIEU THEREOF 5 gEGARDIN
BE IT ORDAINED BY THE BOARD OF ALDERMEN OF THE CITY OF
RIVERSIDE, as follows:
Sec=n 1. Chapter 135 (Sections 135.010 through 135.020) of Title I, of the Municipal
Code are hereby repealed, and the following regulations are enacted in lieu thereof, to read as
follows:
CHAPTER 135: CONTRACTS AND PURCHASING
SECTION 135.010: PURPOSE
ose of this Cha ter is to establish rules and procedures governing the procurement of
The pure p and to maintain a high ethical standard
material, supplies, equipment, and serviclens connection therewith. '~
for all officers and employees of the City
SECTION 135.020: DUTIES GENERALLY the City
In addition to any other power and duties conferred by this or any other ordinance,
Administrator as Purchasing Agent, with the concurrence of the Board of Aldermen, shall:
1, Act to procure for the City the highest quality in supplies and contractual services
at the least expense to the City.
2, prepare and adopt written specifications for all supplies and services, as required.
'~», 3. Prescribe and maintain such rules and regulations and such forms as are necessary
for the operation of the purchasing function.
4, Have the authority to declare vendors who default on ~ einess from the
irresponsible bidders and to disqualify them from receiving any
City for a stated period of time.
5. Inspect or su nervi~an a to pecificat ons.11 deliveries with regard to quantity,
quality, and co
(, Pursue all appropriate claims against the suppliers, shipper or carrier
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SECTION 135.030: UNAUTHORIZED CONTRACTS AND pURCHASES
rovided in this Chapter, no City officer or employee shall order the purchase of
Except as p
contract within the purview of this Chapter other than thr°ugh e
supplies or make anY roval by ordinance or resolution of the Boazd of Aldermen and
Purchasing Agent after app urchase ordered or contract
execution of a written contract pursuant to Section 135.060, and any p shall not be bound
made contrary to the provisions hereof shall not be approved and the City
Contract means all types of agreements, regardless of what they may be called, for the
thereby.
procurement or disposal of supplies, services, or construction.
SECTION 135.040: GIFTS AND REBATES
other officer and employee of the City aze expressly prohibited
The Purchasing Agent and every erson, company, firm, or corporation to which
from accepting directly or indirectly, from any P rebate, gift, money, or anything of value
any purchase or contract is or might be awarded, any
whatsoever. (Except where given for the use and benefit of the City.)
SECTION 135.050: AVAILABILITY OF FUNDS-BUDGET AUTHORIZATION
when countersigned by the
A purchase order or contract shall be issued and become valid only _
Purchasing Agent, who shall have paeviaortumsl~d o fluid su h purchase order orl ontract c Nobsuch
balance in the account of the usmg ep
purchase order shall be issued or become valid without current budget authorization.
SECTION 135.060: CONTRACTS AND AGREEMENTS
~,, In accordance with Section 135.020, all negotiation for X000) shal be coenduct d by or
the cost to the City may exceed ten thousand dollazs ($10, _
under the supervision of the Purchasing Agent. The Purchasing Agent shall n ota ted
list of all such contracts and agreements currently under consideration or being g
and shall report the status and schedule for all negotiations to the Board of Aldermenall
least once each mor thal of contracts and agreements hall retain final authority
negotiations and app
g. All contracts and agreements which obligate the City to eof ud Dies or services. wnhng
roved as required by this Chapter prior to delivery pp
and app
eements where the cost to the City exceeds fifty thousand dollars
C, All contracts and agr the City Attorney.
($50,000) shall be in a form approved and countersigned by
roval of the Boazd of Aldermen, as evidenced by ordinance or resolution
D, Upon app all instruments, contracts,
appearing in the record of proceedings, the Mayor shall sign
agreements, leases, deeds, mortgages, bonds, and Y thany ~~~o a iong assoc a~on,
conveying an interest or other rights of the City
entity, or person.
E, All contracts must be countersigned by the Purchasing Agent.
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F. The City Administrator is hereby authorized to approve and sign purchasing contracts
and agreements, to include but not limited to maintenance agreements and equipment
leases, when the cost to the City under such contracts does not exceed ten thousand
dollars ($10,000.00) and the contracts or agreements are included as line items in the
annual budget. When the ten thousand dollaz limit is exceeded, Boazd of Aldermen
approval is required.
G, All contracts must be for supplies or services covered by a categouryrchase for daneitem not
current fiscal yeaz as approved by the Board of Aldermen. AnY P
provided for in the current fiscal yeaz budget must receive the prior approval of the Boazd
of Aldermen.
g. Change orders. The Purchasing Agent is authorized to approve change orders in contracts
awarded by the Board of Aldermen so long as the proposeod ohazan~e~es onse ttoacondit ons
P
staff or a construction manager under contract to the City,
unforeseen at the time the contract was awazded, the total cost of the change orders does
not exceed ten (10) percent of the value of the contract or an amount determined by the
Boazd of Aldermen at the time of the award of the contract, does not materially alter the
purpose of the contract, and sufficient funds aze available in the current year's budget.
The Purchasing Agent shall report all change orders to the Boazd of Aldermen within
thirty (30) days of their approval.
I, Blanket purchase contracts. Blanket purchase contracts mayeb~ ss~thori ~ to expend
whom many routine purchases are made. The Purchasing Ag
funds exceeding ten thousand dollars e(iY$od of time that was approvedsby the Board of
blanket purchase contract for a fixed p
Aldermen. _
J. Authorized anneal hasetof electric servi etelephonesservice, water saervice, and gas
contracts forth p
service from current providers of their services, and for the renewal of computer so aze
licenses and maintenance ovedcm the current eaz's budget for the purposec.,ontracts does
not exceed the amount app
SECTION 135.070: COMPETITIVE BIDDING
A, When the City negotiates any purchase, sale, or other contract, there shall be provided
ample opportunity for competitive bidding in the following manner:
1. If the consideration is not more than three thousand dollars ($3,000.00), purchases
shall be solicited in the most expedient manner with due regard for competitive
prices and quality.
000.00) but less
2. If the consideration is for more than three thousand doluars s shall be solicited by
than six thousand dollars ($6,000.00), at least thre ros)ective vendors.
mail or telephone requests from at least three (3) p p
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3 If the consideration is for more than six thousand dollars ($6,000.00), but less
than ten thousand dollars ($10,000.0), at least three (3) written quotes shall be
obtained.
4, All purchases of supplies and contractual services estimated torocess of formal,
ten thousand dollars ($10,000.00), shall be obtained by P
written bids. ose of
5, Individual contracts or purchases shall not be sub~e P o ~~~tPouf~several
evading the requirement of competitive bidding. urchase for the
items of the same type at substantially the same rime is a single p
purpose of this Article.
the City may,
an of the provisions of paragraph (A) of this Section, extend
B, Notwithstanding Y vote of the members of the Board of Ald~the 'bidding
upon concurrence of a majority oods or services without utilizing such
any contract for the purchase of g inion of the Board of Aldermen,
procedures as herein described, when, in the op
extension is deemed to be in the best interest of the City.
GENERAL
SECTION 135.080: BIDDING PROCEDURES - shall follow the following
T'he Purchasing Agent and all parties contracting with the City
procedures in relation to all bids submitted: lace for
1. All public notices and invitations to bids shall state the time and p
opening.
2, All bids shall be submitted sealed to the City official designated in the invitation
to bid and shall be identified as a "bid" on the envelope.
3, All sealed bids shall be opened in public in the presence of one or more witnesses
ublic notice.
at the time and place stated in the p
4, A tabulation of all bids received as well as each bid shall be available in the city
hall for public inspection.
The Board of Aldermen shall have authority to reject any and all bids or any parts
5' readvertise or resolicit bids whenever the Board deems it to
of any bids and may Invitations to bid shall state this policy.
be in the best interest of the City.
uest for the withdrawal of a bid, or any part thereof, shall be granted
6• ~' wntten req the purchasing Agent Prior to the specified time bids
if the request is received by
are due. Bids, amendments to bids, or requaesst~f~e ed sha nobbe consideredy
the Purchasing Agent after a bid opening
A ent, bid deposits may be required.
7. When deemed necessary by the Purchasing g
The deposits may be required to be in the fonerae t ~10~~ of the amo~a~ the
and may be for an amount not exceeding ten P
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bid. When so required, all bids not accompanied by such deposit shall be
rejected. Such bid deposit shall be returned the a1n cessful biddereXA suc essful
contract with, or issue of a purchase order to,
bidder shall forfeit his deposit if he fails to enter into a contract with twenty (20)
days after notification of the acceptance of his bid.
SECTION 135.090: BIDDING PROCEDURE FOR CONSTRUCTION PROJECTS
The following describes procedures to be followed by the City in selecting construction
contractors for projects. Construction means the process of building, altering, repairing,
improving, or demolishing any public infrastructure facility, including any public structure,
public building, or other public improvement of any kind to real property. It does not mean the
routine operation, routine repair, or rourine maintenance o~~ constructpon ldocuments h~e
facility, including structures, buildings, or real property.
been completed and a~the selection of a construct onafirm for the p oject Thisacontractor hall
official, the next step
be selected as follows:
A. Competitive bids: The City shall seek competitive bids for projects by advertising and or
invitations to prospective contractors that the City intends to construct the project.
g. Advertising or ind invite b'df orthe proposed project an advertisement shall be placaed in
to be awarded an
a daily paper of general circulation. Items which maybe included in the advertisement or
invitation are:
1, A brief description of the project and its location.
2. Name and address of the person authorized to receive bids.
3, The place, date and hour of bid opening, restrictions on submission, changes and
withdrawal of bids.
4. Character of bids: Phasing, umt-price, lump-sum, alternates etc.
5, Quantities involved in the project.
(, The amount of the bid surety anduwe a to unsucce sful bidders ed check, bid bond
etc. and provisions for returning tY
~, Statement as to where plans and specifications may be obtained or a oam hater and
the charge or deposit required for each set and provision for recovery g
deposit when documents are returned.
g. Conditions of contract award and the owner's right to accept the lowest
responsible bid and to reject any or all bids.
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9, Name of the consultant and the authorized representative for the owner and
consultant.
e of erformance and payment bond.
10. Contract surety: The amount and typ p
C, Instructions to bidders: A document in wth with insMzction on tthh pr ecdedut'e ~°1 be
information on the features of the project along
followed in submitting bids. Items which may be included in the instructions to bidders
are:
1, Bidder's experience, work record and or prequalification data.
2, Procedure for completing and submitting the bid.
3, A list of the planxact des ription of thes pesolf the projectanif lcontractris tonbe
contracts or an
lump-sum.
4, An estimate of the time it will take the bidder to complete the project.
5, Any incentives or bonus authorized by the Boazd of Aldermen for early
completion of the project.
6, Responsibility ors ~ an and specifications etcon in reference to subsoil data,
test borings, err P
~, Information on formalities and informalities in accepting or rejecting bids.
g, Miscellaneous instructions as needed.
D, Bid form: A document to ensure that all bids are prepazed in a similaz manner and to
facilitate the analysis and comparison of bids and to deatnecdt i~ormahi~e~s whisk mays be
convenience to bidders and it encourages accuracy
included in the bid form are:
1, An offer from the bidder to perform the work as specified for a given price.
2, An agreement to complete the project in a given number of days after the notice
to proceed has been given.
3, The amount of the bid bond, certified check or other form of guarantee that is to
accompany the bid.
4 An agreement by the bidder to furnish the required contract surety if the contract
is awazded.
5, Provision for the bidder to acknowledge receipt of all addenda to the plans and
specifications.
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(. The list of subcontractors to be employed for special work.
~. The experience record, financial statement and plant equipment questionnaire,
when required.
g. Statement th d th~esent tie s of the C ty or onsultant bid po lmg or straw bidss
of bidders an eP
g, Statement by the bidder that the site has been examined and the Plans and
specifications are understood by the bidder.
ro riate signatures and witnesses as required.
10. App p
g. Prebid conference: Preparatory to putting the bid together, a prebid conference may be
held for those bidders anticipating submitting a bid on the project. The prebid conference
is to do the following:
1, Allow bidders, both contractors and subcontractors, achance to ask questions of
those who prepared the plans and wrote the specifications.
ven by those best qualified.
2. Allow explanations and answers to questions to be gi
3. To allow scheduled prebid conference to be held midway between advertising for
bids and the bid opening date.
4, To give additional opportunities so the site can be visited, if necessary.
g. Addenda: During the bidding period, any and all additional instructions, clarifications,
interpretation or modifications shall be made by an addendum prepaY'~ by the consultant
or City and signed by the consultant and the City's representative.
1. The addendum shall be delivered, either by the City or the consultant, as agreed
upon by the two.
2, A receipt shall be received for all hand delivered addendum by the deliverer.
Addendum sent by mail shall be mailed by the fastest delivery method and shall
be sent by registered mail or overnight delivery with a signed receipt requested.
3, No one is authorized to make any clarifications, interpretations, or modifications
or give any instructions to the bidders during the bidding period except as
described in this section on addenda.
SECTION 135.100: LOWEST RESPONSIBLE BIDDER
The Boazd of Aldermen reserves the right to reject any or all bids and to award the bid in the best
interest of the City. The City may re-advertise or re-solicit bids whenever it is deemed to be in
the best interest of the City. Contracts shall be awarded to the lowest responsible bidder. In
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determining the "lowest responsible bidder," in addition to price, the following shall be
considered:
1, The ability, capacity and skill of the bidder to perform the contract or provide the
service required.
2, Whether the bidder can perform the contract or provide the service promptly, or
within the time specified, without delay or interference.
3. The character, integrity, reputation, judgment, experience and efficiency of the
bidder.
4. The quality of performance of previous contracts or services.
5. The previous and existing compliance by the bidder with laws and ordinances
relating to the contract or service.
(, The sufficiency of the financial resources and ability of the bidder to perform the
contract or provide the service.
7. The quality, availability, and adaptability of supplies, or contractual services to
the particular use required.
g. The ability of the bidder to provide future maintenance and service for the use of
the subject of the contract.
9. The number and scope of conditions attached to the bid.
SECTION 135.110: BID SECURITY, PERFORMAr1CE/pAy1VIENT BONDS FOR
CONSTRUCTION CONTRACTS
A. Bid security. Bid security, in the form of a bond provided by a surety company
authorized to do business in Missouri or the equivalent in cash, shall be required for all
competitive sealed bidding for construction contracts. Bid securitty Y shall be irrevo able
equal to at least 5% of the amount bid. After bids are opened,
for the period specified in the Invitation for Bids. The bid security shall be forfeited to the
City if the bidder to whom an award is made ent bond. ter into the required contract or
fails to deliver a required performance or paym
B. Contract performance and payment bonds. When a construction contract is awarded, the
following bonds or security shall be delivered to the city and shall become binding on the
parties upon execution of the contract:
1, A performance bond satisfactory to the City Attorney, executed by a surety
company authorized to do business in Missouri and having a rating of at least
°°A+" from Best's or "AA" from Standard and Poor's to show it is solvent, in an
amount equal to 100% of the portion of the contract that does not include the cost
of operation, maintenance, and money, along with; and
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2. A payment bond satisfactory to the City Attorney, executed by a surety company
authorized to do business in Missouri and having rating of at least "A+" from
Best's or "AA" from Standazd and Poor's to show it is solvent, for the protection
of all persons supplying labor and material to the contractor or its subcontractors
for the performance of construction work provided for in the contract. The bond
shall be in an amount equal to 100% of the portion of the contract price that does
not include the cost of operation, maintenance, and money.
3. Authority to require additional bonds. In addition to the requirements set forth
above, the Purchasing Agent shall have the authority to require aperformance/
payment bond in cash or otherwise for such amount that he may deem sufficient
to secure the execution of a contract for furnishing supplies or services for the
best interests of the City.
4. Return of bid surety. Bonds and checks shall be returned to the unsuccessful
bidders after an awazd has been made or bids have been rejected.
SECTION 135.120: PRECON5TRUCTION CONFERENCE
Immediately after a construction contract has been fully executed and before construction begins,
the City, consultants and contractor shall meet to do the following:
1, Meet with subcontractors and the superintendent for the project.
2. Get acquainted and discuss the several phases of the project so that when
understood by all, the job will run smoothly.
3. To establish lines of communication and lines of authority to be followed during
construction.
4. To discuss items of interest and concern to all.
SECTION 135.130: SOLE SOURCE PURCHASING
In the event that there is only one (1) firm, company, or individual capable of providing a
particulaz service or supplies, requirements contained above shall not be applicable and the
purchasing agent is authorized to proceed with the purchase of such services or supplies as are
required by the City. The determination that there is only one source for the required service or
supplies must be made in writing by the requesting department head and approved by the
Purchasing Agent.
The following items maybe approved for sole source procurement:
Ci owned
1, Interface upgrades, add-on parts and components to existing, ty
equipment that requires total compatibility assurance; license renewals for City
owned softwaze, 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;
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2. Materials for resale in City concession operations that aze purchased in response
to customer demands;
3. Spot mazket purchases that are evidenced to provide a substantial savings to the
City and that aze approved by the Purchasing Agent. Any purchase of a dollaz
amount requiring Board of Aldermen approval shall be submitted for review at
the next scheduled Board meeting;
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 softwaze obtainable from multiple suppliers; or
5. Professional services, as determined by the head of the using department.
SECTION 135.140: DOMESTIC PRODUCTS PROCUREMENT POLICY
A. It is the policy of the City of Riverside, Missouri, 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 of Riverside 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 Boazd of Aldermen 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.
SECTION 135.150: PETTY EXPENDITURES
The Purchasing Agent shall issue rules and regulations regarding minor purchases with petty
cash funds. Purchase with these funds can be made without a purchase order directly from the
vendor and paid for from the departmental petty cash fund. Departments may replenish petty
cash at reasonable intervals.
SECTION 135.160: EMERGENCY PURCHASES
In case of an emergency which requires immediate purchase of supplies or contractual services
when the immediate procurement of such supplies is essential to prevent delays which might
adversely affect the health, welfaze, or convenience of the citizens of the City or cause
substantial disadvantage to the City, the Purchasing Agent may authorize the purchase, at the
lowest obtainable price, of any supplies or contractual services not in excess of ten thousand
dollazs ($10,000.00) without requiring formal competitive bids. The Boazd of Aldermen must
approve negotiated procurement of supplies and services of a value in excess of ten thousand
dollars ($10,000.00) when formal competitive bids aze not obtained.
SECTION 135.170: COOPERATIVE PROCUREMENT
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The Purchasing Agent 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.
SECTION 135.180: PROFESSIONAL SERVICES
The competitive bidding requirements of this Section 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,
planners and land surveyors. The Purchasing Agent is authorized to request proposals from
capable professionals within a required discipline. In securing professional services, it is the
primary goal of the City to obtain the services of a professional who has a proven record of
providing, in a professional way, those services required. The Purchasing Agent shall make a
recommendation to the Boazd of Aldermen for the procurement of professional services when
the fee for such services will exceed ten thousand dollazs ($10,000.00). The Boazd of Aldermen
shall then approve or designate one or more such persons or companies for negotiation. The
Purchasing Agent may approve professional service fees of ten thousand dollars ($10,000.00) or
less.
SECTION 135.190: DISPOSITION OF SURPLUS SUPPLIES, MATERIALS AND
EQUIPMENT
A. All using departments shall submit to the Purchasing Agent reports showing stock of all
supplies, materials and equipment which aze no longer used or which have become
obsolete, worn out or scrapped.
B. The Purchasing Agent shall have the authority to transfer surplus supplies, materials and
equipment to other using departments, or he shall have the authority to exchange such
personal property on new supplies, materials, and equipment.
C. Surplus, unusable, or obsolete supplies, materials and equipment whose estimated value
is in excess of five thousand dollars ($5,000.00), shall be sold by formal written bids or
public auction to the best responsible bidder, after due notice.
D. Sales of surplus, obsolete, or unusable personal property, valued at less than five
thousand dollars ($5,000.00) shall be made in the open market, and in accordance with
procedure set forth for open mazket purchases. Sale of these items may also be made by
public auction.
SECTION 135.200: CONFLICTS OF INTEREST
A. No officer or employee of the City shall participate in a contract for supplies or services
when that person knows that:
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1. The officer or employee or any member of the officer's or employee's immediate
family has a financial interest pertaining to the contract; or
2. A business or organization in which the officer or employee, or any member of
the officer's or employee's immediate family, has a financial interest pertaining to
the contract.
3. Any contract in which any officer or employee of the City has a financial interest,
directly or indirectly, shall be void, except when the contract is awarded as a
result of open bidding.
B. Every officer and employee of the City shall not directly or indirectly solicit any gift or
accept or receive any gift, whether in the form of money, services, loans, promises or any
other form, under circumstances in which it could reasonably be inferred that the gift was
intended to influence them, or could reasonably be expected to influence them, in the
performance of their official duties or was intended as a reward for any official action on
their part.
SECTION 135.210: TRAVEL REGULATIONS AND REIMBURSEMENTS
A. Scope of regulations. These regulations are applicable to all travel expenses incurred on
behalf of the City by employees and officials. Where these regulations do not adequately
cover a travel situation, the Purchasing Agent shall adopt such rules and regulations as
maybe necessary.
B. Use of private vehicles. Private vehicles maybe used for travel on City business when so
authorized. Reimbursement shall be equivalent to the standard mileage rate allowed for
business use by the Internal Revenue Service, plus tolls and parking.
C. Use of commercial carriers. Commercial airfares shall be limited to "coach" or
"economy" fares when such services are available. Reimbursement shall be equivalent to
the cost of the fare, plus associated airport parking and/or ground transportation.
D. Alternative travel arrangements. The Purchasing Agent in advance of the travel may
approve alternative arrangements for out of state travel. Alternative travel payments shall
be limited to the reimbursement of actual expenses in an amount not greater than (b) or
(c) above.
SECTION 135.220: SUBDIVIDING PROHIBITED
No contract shall be subdivided to avoid the requirements of this Chapter.
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Section 2. This ordinance shall be in full force and effect on and after its passage and
approval.
PASSED BY THE BOARD OF ALDERMEN THIS 1'L~ _ yAY OF
2005.
M or Pro Tem
ATTES'T~
~'
Ci erk
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