Chapter 3.25
PURCHASING POLICY
Sections:
3.25.020 Office of the purchasing agent.
3.25.030 Source selection and contract formation – General provisions.
3.25.060 Ethics in public contracting.
3.25.010 General provisions.
A. The underlying purposes of this policy are:
1. To ensure fair and equitable treatment of all persons who wish to, or do, conduct business with Helper City.
2. To provide for the greatest possible economy in city procurement activities.
3. To foster effective broad-based competition within the free enterprise system to ensure that the city will receive the best possible service or product at the lowest possible price.
B. Compliance – Exemptions from This Policy.
1. This policy shall not prevent the city from complying with the terms and conditions of any grant, gift, or bequest that is otherwise consistent with law.
2. When a procurement involves the expenditure of federal assistance funds, the city shall comply with applicable federal law and regulations.
C. Definitions.
1. “Business” means any corporation, partnership, individual, sole proprietorship, joint stock company, joint venture, or any other private legal entity.
2. “Change order” means a written order signed by the purchasing agent directing the contractor to suspend work or make changes which the appropriate clauses of the contract authorize the purchasing agent to order without consent of the contractor or any written alteration in specifications, delivery point, rate of delivery, period of performance, price, quantity, or other provisions of any contract accomplished by mutual action of the parties to the contract.
3. “Contract” means any city agreement for the procurement or disposal of supplies, services, or construction.
4. “Invitation for bids” means all documents, whether attached or incorporated by reference, used for soliciting bids.
5. “Person” means any business, individual, union, committee, club, other organization, or group of individuals.
6. “Procurement” means buying, purchasing, renting, leasing, leasing with an option to purchase, or otherwise acquiring any supplies, or construction.
7. “Purchasing agent” means the person duly authorized by the governing body of the city to enter into and administer contracts and make written determinations with respect thereto.
8. “Purchase description” means the words used in a solicitation to describe the supplies, services, or construction to be purchased, and includes specification attached to or made a part of the solicitation.
9. “Request for proposals” means all documents, whether attached or incorporated by reference, used for soliciting proposals. [Ord. 2010-3; Ord. 2009-3. Code 1988 § 9-7-1].
3.25.020 Office of the purchasing agent.
The governing body of the city shall appoint a purchasing agent. The purchasing agent shall be responsible to make procurements, solicit bids and proposals, administer contracts, and make written determinations for the city. [Ord. 2010-3; Ord. 2009-3. Code 1988 § 9-7-2].
3.25.030 Source selection and contract formation – General provisions.
A. Purchases Not Requiring Sealed Bids.
1. Purchases costing less than $10,000 in total shall not require bids of any type. (Purchases shall not be artificially divided so as to constitute a small purchase under this section.)
2. Purchases costing more than $10,000 shall require an invitation to bid published once a week for not less than two successive weeks in a newspaper having general circulation in Helper City. The last publication shall be not less than seven days prior to the time established for the bid deadline.
3. Purchases made through the cooperative purchasing contracts administered by the State Division of Purchasing.
4. Purchases made from a single-source provider.
5. Purchases required during an emergency, i.e., an eminent threat to the public’s health, welfare, or safety. However, as much competition as practical should be obtained, and such purchases should be limited to amounts necessary to the resolution of the emergency.
6. A purchase of more than $500.00 requires council approval unless the approval has previously been given by approval of a grant authorizing the expenditure. Purchase orders shall be provided to the city recorder within three days of the purchase. A purchase order shall be signed by the councilperson over the department making the purchase.
B. Purchases Requiring Sealed Bids.
1. Contracts shall be awarded by competitive sealed bidding except as otherwise provided by this policy.
2. An invitation for bids shall be issued when a contract is to be awarded by competitive sealed bidding. The invitation shall include a purchase description and all contractual terms and conditions applicable to the procurement. Public notice of the invitation for bids shall be given at least 10 days prior to the date set forth therein for the opening of bids. The notice may include publication in a newspaper of general circulation.
3. Any procurement in excess of $25,000 shall require a legal notice in a local newspaper of general circulation.
4. Bids shall be opened publicly in the presence of one or more witnesses at the time and place designated in the invitation for bids. The amount of each bid and any other relevant information, together with the name of each bidder, shall be recorded. The record and each bid shall be open to public inspection.
5. Bids shall be unconditionally accepted without alteration or correction, except as authorized in this policy. Bids shall be evaluated based on the requirements set forth in the invitation for bids.
6. Correction or withdrawal of inadvertently erroneous bids before or after award, or cancellation of awards or contracts based on such bid mistakes, shall be permitted. After bid opening no changes in bid prices or other provisions of bids prejudicial to the interest of the city or fair competition shall be permitted. All decisions to permit the correction or withdrawal of bids or to cancel awards or contracts based on bid mistakes shall be supported by a written determination made by the purchasing agent.
7. The contract shall be awarded with reasonable promptness, by written notice, to the lowest bidder whose bid meets the requirements and criteria set forth in the invitation for bids. A preference may be given to a business within Carbon County whose bid is within 10 percent of the lowest bid submitted.
C. Cancellation and Rejection of Bids. An invitation for bids, a request for proposals, or other solicitation may be canceled, or any or all bids or proposals may be rejected, in whole or in part, as may be specified in the solicitation, when it is in the best interests of the city. The reasons shall be made part of the contract file.
D. Use of Competitive Sealed Proposals in Lieu of Bids. When the purchasing agent determines in writing that the use of competitive sealed bidding is either not practicable or not advantageous to the city, a contract may be entered into by competitive sealed proposals. Competitive sealed proposals are most appropriately used for professional service-type contracts.
1. Proposals shall be solicited through a request of proposals. Public notice of the request for proposals shall be given at least 10 days prior to the advertised date of the opening of the proposals.
2. Proposals shall be opened so as to avoid disclosure of contents to competing offerors during the process of negotiation. A register of proposals shall be prepared and shall be open for public inspection after contract award.
3. The request for proposals shall state the relative importance of price and other evaluating factors.
4. Offerors shall be accorded fair and equal treatment with respect to any opportunity for discussion and revision of proposals, and revisions may be permitted after submissions and prior to award for the purpose of obtaining best and final offers. In conducting discussions, there shall be no disclosure of any information derived from proposals submitted by competing offerors.
5. Award shall be made to the person whose proposal is determined to be the most advantageous to the city, taking into consideration price and the evaluation factors set forth in the request for proposals. No other factors or criteria shall be used in the evaluation. The contract file shall contain the basis on which the award is made.
E. Architect-engineer services are qualification-based procurement. Request for such services should be publicly announced. Contracts should be negotiated by the city based on demonstrated competence at fair and reasonable price.
F. Determination of Nonresponsibility of Bidder. Determination of nonresponsibility of a bidder or offeror shall be made in writing. The unreasonable failure of a bidder or offeror to promptly supply information in connection with an inquiry with respect to responsibility may be grounds for a determination of nonresponsibility with respect to the bidder or offeror. Information furnished by a bidder or offeror pursuant to this section shall not be disclosed outside of the purchasing division without prior written consent by the bidder or offeror.
G. Cost-Plus-a-Percentage-of-Cost Contracts Prohibited. Subject to the limitations of this section, any type of contract which will promote the best interests of the city may be used; provided, that the use of a cost-plus-a-percentage-of-cost contract is prohibited. A cost-reimbursement contract may be used only when a determination is made in writing that such contract is likely to be less costly to the city than any other type or that it is impracticable to obtain the supplies, services, or construction required except under such a contract.
H. The following are required contract clauses:
1. The unilateral right of the city to order, in writing, changes in the work within the scope of the contract and changes in the time of performance of the contract that do not alter the scope of the contract work.
2. Variations occurring between estimated quantities of work in a contract and actual quantities.
3. Suspension of work ordered by the city. [Ord. 2010-3; Ord. 2009-3. Code 1988 § 9-7-3].
3.25.040 Specifications.
All specifications shall seek to promote overall economy and best use for the purpose intended and encourage competition in satisfying the city’s needs, and shall not be unduly restrictive. Where practical and reasonable, and within the scope of this chapter, Utah products shall be given preference. [Ord. 2010-3; Ord. 2009-3. Code 1988 § 9-7-4].
3.25.050 Appeals.
A. Any actual or prospective bidder, offeror, or contractor who is aggrieved in connection with the solicitation or award of a contract may appeal to the purchasing agent. An appeal shall be submitted in writing within five working days after the aggrieved person knows or should have known of the facts.
B The purchasing agent shall promptly issue a written decision regarding any appeal, if it is not settled by a mutual agreement. The decision shall state the reasons for the action taken and inform the protestor, contractor, or prospective contractor of the right to appeal to the governing body.
C. The city’s governing body shall be the final appeal on the city level.
D. All further appeals shall be handled as provided in the Utah Code Annotated 1953. [Ord. 2010-3; Ord. 2009-3. Code 1988 § 9-7-5].
3.25.060 Ethics in public contracting.
No person involved in making procurement decisions may have personal interests in any business entity which will create a substantial conflict between his private interests and his public duties. [Ord. 2010-3; Ord. 2009-3. Code 1988 § 9-7-6].
3.25.070 Credit card policy.
A. The city recorder shall be responsible for the issuance, accounting, monitoring, retrieval and general oversight of compliance with this credit card policy.
B. Credit cards shall only be issued to the following: mayor, city councilmembers, library director, city recorder, public works director and crew members, police chief, and city court clerk.
C. Credit cards may be used for any authorized purchase where the vendor or merchant accepts credit card payments.
D. A credit card purchase shall have a maximum limit of up to $500.00 unless a greater amount is authorized by prior city council approval.
E. If a cardholder experiences denials when using a credit card, he/she shall notify the city recorder as soon as possible with details of the denial. Such details shall include, but not be limited to, vendor or merchant name, date, time and details of transaction, and dollar amount. The city recorder shall investigate the denial.
F. The city recorder shall maintain a list of available credit cards which shall include the credit limit of each card, as well as outstanding balances, due date, purchases or returns. This list shall be maintained in a timely fashion and shall be open to the city council’s inspection upon request.
G. Credit cards shall only be used for the purchases of goods and services that are the official business of Helper City.
H. Documentation detailing the goods and services purchased with the credit cards shall be required for all transactions and adequate documentation shall consist of original sales receipts, credit slips, etc. At no time shall the city council approve payment of credit card invoices without adequate documentation. Documentation shall detail the goods or services purchased, the cost of the goods or services purchased, the date of the purchase and the official business for which the goods or services were purchased.
I. Credit cards shall not be used for personal uses.
J. Anyone who violates the provisions of this credit card policy shall be subject to disciplinary action up to and including discharge and/or criminal prosecution.
K. Anyone issued a credit card shall be responsible for the protection and custody of the credit card. If a card is lost or stolen the cardholder shall notify the city recorder as soon as possible. Those issued credit cards shall not knowingly post or otherwise make publicly available credit card data that could potentially result in fraud or unauthorized charges.
L. Any person issued a credit card shall immediately surrender the card upon termination of the person’s office or employment.
M. All benefits derived from the use of credit cards shall become the property of Helper City.
N. The credit card issued shall not impact the cardholder’s personal credit references. The issued credit card is a Helper City liability card, not a personal liability card. However, the cardholder does have the responsibility to use the credit card in an appropriate manner as described herein.
O. The city recorder shall review and recommend approval or denial of credit card invoices prior to submission to the city council for payment. The balance due on any credit card account shall be paid in full by the due date listed on the invoice but in no event not later than 30 days from the initial statement date.
P. Credit card transactions are hereby authorized for the following methods of acquisition:
1. In person: the cardholder shall present the credit card for purchases of goods and services. The cardholder shall obtain a receipt for all purchases and credits, and submit the receipt to the city recorder for reconciliation with the credit card invoice within three days.
2. Via telephone or mail order: the cardholder shall provide the vendor or merchant with the credit card number, expiration date, and other pertinent data necessary to complete the transaction. The cardholder shall take necessary precautions to ensure that the transaction is valid prior to providing pertinent credit card data. The cardholder shall properly document the transaction with a purchase order or other document and submit this documentation to the city recorder for reconciliation with the credit card invoice.
3. Via the Internet: the cardholder shall provide the vendor or merchant with the credit card number, expiration date, and other pertinent data necessary to complete the transaction. The cardholder shall take necessary precautions to ensure that the transaction is valid prior to providing pertinent credit card data. The cardholder shall properly document the transaction with a purchase order, hardcopy screen printouts, and/or other documents, and this documentation shall be submitted to the city recorder for reconciliation with the credit card invoice. [Ord. 2010-3; Ord. 2009-3. Code 1988 § 9-7-7].