CHAPTER 3.08: PURCHASING PROCEDURES

Section

Article I. General Provisions

3.08.010    Definitions

3.08.020    Purposes and interpretation

3.08.030    Authority of purchasing officer

3.08.040    Centralization of procurement authority

3.08.050    Standard specifications

Article II. General Contracting Procedures

3.08.110    Contract authority, in general

3.08.120    Contracts enforceable against the borough

3.08.130    Availability of funds

3.08.150    Execution of contracts

3.08.160    Contract administration

3.08.161    Assembly approval of contracts

3.08.170    Contract amendments; assembly approval

3.08.190    Contract amendments; availability of funds

3.08.200    Multiyear contracts

Article III. Methods of Source Selection

3.08.210    Competitive sealed bidding required; exceptions

3.08.220    Solicitation and acceptance of bids

3.08.230    Award only to qualified responsive and responsible bidder

3.08.235    Authority to debar or suspend

3.08.240    Procedures for award

3.08.250    Waiver of irregularities

3.08.260    Competitive sealed proposals; negotiated procurement

3.08.270    Open market procedure

3.08.280    Proprietary requirements

3.08.290    Emergency procurements

3.08.300    Professional services

3.08.310    Bonds

3.08.320    Waiver of formal bidding procedures

3.08.330    Field procurements; value limitation

3.08.340    Appeal [Repealed]

3.08.341    Bid review procedures[Repealed]

3.08.342    Bid protest and appeal procedures

3.08.350    Assembly report

3.08.360    Intergovernment contracts

Article IV. Special Provisions

3.08.460    Borough preference policy

3.08.470    Contracts; employment preferences

3.08.480    Refund for local hire

3.08.490    Employment under contracts involving federal aid funds

3.08.500    Producer and dealer preference

3.08.510    Preference for borough products

3.08.515    Agricultural and fisheries products preference

3.08.520    Ethics of contracting purchasing

3.08.530    Local bond exemption option

Article V. Contracts with Nonprofit Service Organizations

3.08.610    General provisions

3.08.620    Contracts for leisure-time services

Article VI. State and Federal Grants

3.08.710    Definitions

3.08.720    General provisions

3.08.730    Grant administration

Statutory reference:

For provisions regarding public contracts, see A.S. Title 36

ARTICLE I. GENERAL PROVISIONS

3.08.010 DEFINITIONS.

(A)    For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.

(1)    “Agency” means any department or office of the borough.

(2)    “Agency head” means the department director or other chief administrative officer of an agency.

(3)    “Architectural-engineering-land surveying services” means those professional services within the scope of the practice of architecture, engineering or land surveying, as defined by Alaska law.

(4)    “Certifying officer” means the chief fiscal officer of the borough or the officer’s designee.

(5)    “Construction” means the on-site erection, alteration, extension or repair of improvements to real property, including painting or redecorating buildings, highways or other improvements, under contract for the borough, but does not include:

(a)    routine operation, repair or maintenance of existing buildings or improvements which are recurring services nominally performed in connection with the ownership, occupancy or use of the building or improvement;

(b)    building or installation of an improvement to real property by the property owner when the improvement is expressly required by this code.

(6)    “Contract” means all types of borough agreements, regardless of what they may be called, for the procurement or disposal of supplies, services, professional services or construction, but does not include collective bargaining agreements, subdivision agreements, water or sewer main extension agreements or other similar agreements in which the owner or a person acting under the direction of the owner of real property agrees to construct improvements of a public nature on property to be dedicated to the borough.

(7)    “Contract amendment” means any change in the terms of a contract accomplished by agreement of the parties, including change orders.

(8)    “Finance director” means the chief fiscal officer of the borough.

(9)    “Grant” means the furnishing by the borough of assistance, whether financial or otherwise, to implement a program authorized by law. The furnishing by the borough of anything of value in exchange for supplies, services, professional services or construction required to perform a function of the borough is a contract and not a grant. (See MSB 3.08.710 for definition of “state and federal grants.”)

(10)    “Person” means any individual, or any business or non-business association recognized by law, whether or not organized for profit, or any governmental unit or entity.

(11)    “Professional service” means those advisory, consulting, architectural, engineering, research or developmental services which involve the exercise of discretion and independent judgment together with an advanced or specialized knowledge, expertise or training gained by formal studies or experience.

(12)    “Purchasing officer” means the borough employee appointed by the borough manager to perform the functions of the position under the title of purchasing officer or designee.

(13)    “Services” means those services of a non-professional nature which are described within contract specifications and which are needed or desired by the municipality.

(14)    “Supplies” means any tangible personal property.

(Ord. 17-086, § 4, 2017; Ord. 13-162, § 6, 2014; Ord. 13-087, § 2, 2013; Ord. 94-001AM, § 4 (part), 1994; Ord. 81-109, § 2(B)(part), 1981)

3.08.020 PURPOSES AND INTERPRETATION.

(A)    The purposes of this chapter are:

(1)    to implement code provisions requiring that the assembly by ordinance provide for competitive bidding for goods and services and for exceptions to the bidding process;

(2)    to maximize fair and open competition and to discourage collusive bidding for borough contracts consistent with the efficient operation of the municipal government; and

(3)    to maximize the purchasing value of borough funds.

(B)    This title shall be construed and applied to promote the purposes stated in this section.

(Ord. 94-001AM, § 4 (part), 1994; Ord. 81-109, § 2(B)(part), 1981)

3.08.030 AUTHORITY OF PURCHASING OFFICER.

(A)    Except as this code provides otherwise, the purchasing officer shall:

(1)    procure all supplies, services and construction required by the borough;

(2)    sell, trade or otherwise dispose of surplus supplies belonging to the borough;

(3)    maintain all records pertaining to the procurement of supplies, services and construction, and the disposal of supplies by the borough;

(4)    join with other units of government in cooperative purchasing ventures where the best interests of the borough would be served;

(5)    compile and maintain, to the extent practicable, bidders’ and vendors’ lists for supplies, services, professional services and construction utilized by the borough; and

(6)    compile and maintain a log of all contracts awarded for supplies, services, professional services or construction, together with any amendments to the contracts.

(B)    The purchasing officer shall perform any other authorities and responsibilities which this chapter assigns the purchasing officer.

(Ord. 94-001AM, § 4 (part), 1994; Ord. 81-109, § 2(B) (part), 1981)

3.08.040 CENTRALIZATION OF PROCUREMENT AUTHORITY.

Except as this code provides otherwise, all rights, powers and authority pertaining to the procurement of supplies, services and construction required by the borough are vested in the purchasing officer.

(Ord. 81-109 § 2(B) (part), 1981)

3.08.050 STANDARD SPECIFICATIONS.

(A)    Every using agency shall propose, insofar as practicable, standard specifications for the supplies, services, professional services and construction that it requires.

(B)    The purchasing officer shall adopt standard specifications for supplies, services and construction wherever practicable. The standard specifications adopted by the purchasing officer shall be based upon those proposed by using agencies, modified as necessary to maximize clarity, uniformity and open competition, while effectively serving the needs of the using agencies and the efficient operation of the municipal government.

(Ord. 81-109, § 2(B) (part), 1981)

ARTICLE II. GENERAL CONTRACTING PROVISIONS

3.08.110 CONTRACT AUTHORITY, IN GENERAL.

The borough may, pursuant to an award in accordance with this chapter, contract with any person to acquire any supplies, services, professional services or construction required by the borough.

(Ord. 81-109, § 2(B) (part), 1981)

3.08.120 CONTRACTS ENFORCEABLE AGAINST THE BOROUGH.

A contract for supplies, services, professional services or construction, or any amendment to the contract, may not be enforced against the borough unless its terms have been approved in accordance with this chapter, and unless the contract or amendment to the contract has been set forth in writing, executed in accordance with this chapter.

(Ord. 94-001AM, § 4 (part), 1994; Ord. 81-109, § 2(B) (part), 1981)

3.08.130 AVAILABILITY OF FUNDS.

A contract for supplies, services or construction may not be approved or executed unless the certifying officer has certified in writing that funds are available for the borough’s performance under the contract.

(Ord. 94-001AM, § 4 (part), 1994; Ord. 81-109, § 2(B) (part), 1981)

3.08.150 EXECUTION OF CONTRACTS.

All borough contracts for supplies, services, professional services and construction, and any amendments to the contracts shall be signed by the manager or the purchasing officer.

(Ord. 08-027(AM), § 2, 2008: Ord. 94-001AM, § 4 (part), 1994; Ord. 84-55, § 3, 1984; Ord. 81-109, § 2(B) (part), 1981)

3.08.160 CONTRACT ADMINISTRATION.

(A)    The using agency head shall administer all contracts for supplies, services or professional services, except as otherwise designated by the purchasing officer.

(Ord. 13-162, § 5, 2014; Ord. 94-001AM, § 4 (part), 1994; Ord. 81-109, § 2(B) (part), 1981)

3.08.161 ASSEMBLY APPROVAL OF CONTRACTS.

(A)    A contract for supplies, services, professional services, or construction which obligates the borough to pay more than $100,000 may not be executed unless the assembly has approved a memorandum setting forth the essential terms of the contract. To the extent applicable for particular contracts, the following essential terms shall be set forth:

(1)    the identity of the contractor;

(2)    the contract price;

(3)    the nature and quantity of the performance that the borough shall receive under the contract;

(4)    the using agency; and

(5)    the time for performance under the contract.

(B)    If contracts are awarded to more than one bidder pursuant to an invitation for bids, contracts with different bidders shall be considered separately for purposes of determining the application of subsection (A) of this section. If any contract to be awarded under a given bid is subject to assembly approval, the award of other contracts pursuant to the same invitation for bids may, at the discretion of the purchasing officer, be delayed pending assembly approval.

(C)    A grant to a governmental or quasi-governmental agency or to a private nonprofit corporation under the provisions of MSB 3.08 for more than $15,000 may not be issued unless the assembly has approved a memorandum setting forth:

(1)    the identity of the grantee;

(2)    the grant amount;

(3)    the purpose to which grant funds are to be devoted; and

(4)    the agency charged with administration of the grant.

(Ord. 08-027(AM), § 3, 2008; Ord. 07-034(AM), § 2, 2007; Ord. 04-188, § 2, 2005; Ord. 94-001AM, § 4 (part), 1994; Ord. 89-4, § 2, 1989)

3.08.170 CONTRACT AMENDMENTS; ASSEMBLY APPROVAL.

(A)    Contract amendments shall not be used to avoid procurement by the competitive procedures established under this title.

(B)    Except for emergency procurements authorized under MSB 3.08.290, contracts for supplies, services, professional services and construction may be amended by the manager or the purchasing officer with the approval of the assembly, as set forth in MSB 3.08.161, only for the following reasons:

(1)    to change the quantity ordered or date of delivery under contract for supplies, where necessary to meet unforeseen borough requirements;

(2)    to change the quantity of services or professional services to be rendered, or to change the scope of a project under a contract for services or professional services where necessary to meet unforeseen changes in borough requirements;

(3)    to change the scope of a project or the scope of services or professional services under a construction contract to meet unforeseen borough requirements, or to change the specifications under a construction contract because unforeseen conditions render the original specifications impracticable;

(4)    To change the time for completing a project under a contract for services, professional services or construction;

(5)    To correct an error in contract specifications made by the borough in good faith or to resolve a good faith dispute between the borough and a contractor as to a party’s rights and obligations under the contract; and

(6)    To change administrative provisions of a contract without materially altering the contract terms governing the quantity or quality of supplies, services, professional services or construction furnished the borough.

(C)    No contract amendment or change order that will cause the total value of the contract to exceed the limits specified below may be executed unless the assembly has approved a memorandum setting forth the essential terms of the amendment or change order request:

(1)    For contracts with an original award value of $100,000 or less; a contract amendment or change order, or cumulative contract amendments or change orders, that will cause the total contract amount, as amended, to exceed $100,000.

(2)    For contracts with an original award value greater than $100,000 up to $500,000; a contract amendment or change order, or cumulative contract amendments or change orders, that will cause the total contract amount, as amended, to exceed 125 percent of the original contract award, or to increase the original contract by $100,000, whichever is less.

(3)    For contracts with an original award value greater than $500,000 up to $2,000,000; a contract amendment or change order, or cumulative contract amendments or change orders, that will cause the total contract amount, as amended, to exceed 120 percent of the original contract award, or to increase the original contract by $200,000, whichever is less.

(4)    For contracts with an original award value greater than $2,000,000; the department shall recommend, with concurrence of the purchasing officer, the maximum contract amendment or change order value that can be executed without assembly approval. This value shall be established and approved concurrently with the contract award under MSB 3.08.161.

(D)    For all contracts covered under subsection (C) of this section, all contract amendments or change orders that will cause the total value, based on any previously approved increase, of the contract to exceed the limits specified above must be approved by an assembly memorandum setting forth the essential terms of the amendment or change order request prior to execution.

(E)    For contracts that contain one or more optional contract periods, and where the borough desires to exercise the option, a follow-on period may be executed in an amount consistent with the original contract terms, notwithstanding subsection (A) of this section. The individual option period is considered a separate action and not an amendment or change order. However, a contract amendment or change order, or cumulative contract amendments or change orders, issued within the original or any optional contract period shall be subject to subsection (C) of this section. If the original contract period or any optional period is otherwise subject to MSB 3.08.161, such approval shall be received prior to contract execution.

(F)    For all construction contracts where the final contract value is greater than $250,000, the administering agency or department shall submit informational memoranda to the assembly that, at a minimum, lists the contractor name and project identity, the original contract amount, and all contract amendments or change orders processed against the contract. Informational memoranda shall be submitted no later than 45 days after issuing the final pay estimate.

(G)    No contractor may provide supplies, services, professional services, or construction provided to the borough before the applicable requirements of this section are first satisfied.

(Ord. 08-027(AM), § 4, 2008; Ord. 94-001AM, § 4 (part), 1994; Ord. 89-4, § 3, 1989; Ord. 81-109, § 2(B)(part), 1981)

3.08.190 CONTRACT AMENDMENTS; AVAILABILITY OF FUNDS.

A contract amendment that will increase the con-tract price may not be approved or executed unless the certifying officer has certified in writing that funds are available for the borough’s performance under the contract, as amended.

(Ord. 94-001AM, § 4 (part), 1994; Ord. 81-109, § 2(B)(part), 1981)

3.08.200 MULTIYEAR CONTRACTS.

(A)    The borough may enter into contracts for a term exceeding one year, provided that funds for the borough’s performance during the fiscal year in which the contract term commences are certified in writing by the chief fiscal officer as being available.

(B)    The borough’s payment and performance obligations for succeeding fiscal years after issue of a multiyear contract shall be subject to the availability of funds lawfully appropriated therefor.

(C)    Contracts for construction are not to be construed as multiyear contracts; however, lawfully appropriated funds must be available for the term of the contract.

(Ord. 81-109, § 2(B) (part), 1981)

ARTICLE III. METHODS OF SOURCE SELECTION

3.08.210 COMPETITIVE SEALED BIDDING REQUIRED; EXCEPTIONS.

Unless otherwise authorized under this chapter or other provisions of law, all borough contracts for supplies, services and construction shall be awarded by competitive sealed bidding.

(Ord. 81-109, § 2(B) (part), 1981)

3.08.220 SOLICITATION AND ACCEPTANCE OF BIDS.

(A)    The purchasing officer shall initiate competitive sealed bidding by issuing an invitation for bids. The invitation for bids shall state, or incorporate by reference, all specifications and contractual terms and conditions applicable to the procurement.

(B)    Public notice of the invitation for bids shall be published at least once in a newspaper of general circulation in the borough at least 14 calendar days before the last day on which bids shall be accepted. Notice shall also be posted at the borough’s purchasing office. The contents of the notice shall be sufficient to inform interested readers of the general nature of the supplies, services or construction being procured and the procedure for submitting a bid. The purchasing officer shall mail or otherwise deliver notices to a sufficient number of prospective bidders from a current bidders and vendors mailing list maintained in the purchasing office to afford equitable opportunity for competition. The failure of any person to receive notice under this subsection shall not affect the validity of any award or contract.

(C)    The purchasing officer shall establish and maintain a list of contractors who indicate a wish to provide goods or services to the borough. Upon an invitation for bids, each contractor on the list with the indicated necessary qualifications to bid shall receive a notice of the invitation.

(D)    The purchasing officer may provide for a pre-bid conference to be held at least seven calendar days before the last day for submitting bids. At the pre-bid conference or at other times deemed appropriate by the purchasing officer, the terms of an invitation for bids may be modified or interpreted only by written addenda issued by the purchasing officer. Addenda to bids shall be sent to each recipient of the original bid documents. Only a bid acknowledging receipt of all addenda may be considered responsive, unless the addendum, in the opinion of the purchasing officer, would have no material effect on the terms of the bid.

(E)    Sealed bids shall be designated as such on the outer envelope and shall be submitted by mail or in person at the place and no later than the time specified in the invitation for bids. Bids not submitted at the proper place or within the time specified shall not be opened or considered and shall be returned to the respective bidders.

(F)    Bids shall be opened publicly in the presence of one or more witnesses at the time and place designated in the invitation for bids. Any bidder, prior to award, may review bids after the purchasing officer has tabulated or summarized them. The purchasing officer shall tabulate the amount of each bid and shall record other information as may be necessary or desirable for evaluation together with the name of each bidder. The tabulation shall be open to public inspection, and a copy of the tabulation shall be furnished to each bidder upon request.

(G)    Bids shall be accepted unconditionally without alteration or correction. For purposes of determining the low bidder and the responsiveness of bids, no criteria except those set forth in the invitation for bids, including all specifications and addenda, may be used.

(Ord. 94-023, § 2, 1994; Ord. 94-001AM, § 4 (part), 1994; Ord. 81-109, § 2(B) (part), 1981)

3.08.230 AWARD ONLY TO QUALIFIED RESPONSIVE AND RESPONSIBLE BIDDER.

(A)    A contract award under this chapter shall be made only to a qualified, responsive and responsible bidder. The purchasing officer shall determine whether a bidder is qualified, responsive and responsible based on:

(1)    the skill and experience demonstrated by the bidder in performing contracts of a similar nature;

(2)    the bidder’s record of honesty and integrity;

(3)    the bidder’s capacity to perform in terms of facilities, personnel and financing;

(4)    whether the bidder has been debarred or suspended under MSB 3.08.235;

(5)    at all times the best interests of the borough shall be recognized in awarding bids.

(Ord. 94-001AM, § 4 (part), 1994; Ord. 86-33, § 2, 1986; Ord. 81-109, § 2(B) (part), 1981)

3.08.235 AUTHORITY TO DEBAR OR SUSPEND.

(A)    Debarment. After consultation with the attorney, the purchasing officer may give notice to a person of intent to debar. After a debarment hearing, or, if no hearing is timely requested, after the expiration of the time for filing a request for a hearing, the manager may debar a person for cause from consideration for award of contracts. Notice of a debarment hearing shall be provided in writing at least seven calendar days before the hearing. The debarment may not be for a period of more than three years.

(B)    Suspension. The purchasing officer, after consultation with the attorney, may suspend a person from consideration for award of contracts if there is probable cause for debarment and compelling reasons require suspension to protect the borough. The suspension may not be for a period exceeding three months.

(C)    Causes. The causes for debarment or suspension include:

(1)    conviction for commission of a criminal offense as an incident to obtaining or attempting to obtain a public or private contract or subcontract, or in the performance of the contract or subcontract;

(2)    prior conviction under any statute or ordinance of embezzlement, theft, forgery, bribery, fraud, falsification or destruction of records, receiving stolen property, failure to ship or produce contracted goods, or other offense indicating a lack of business integrity or business honesty that currently and seriously affects responsibility as a borough contractor;

(3)    conviction or civil judgment finding a violation under state or federal antitrust statutes;

(4)    violation of contract provisions of a character that is regarded by the purchasing agent to be so serious as to justify debarment action, such as:

(a)    knowing failure without cause to perform in accordance with the specifications including providing defective or damaged products, or within the time limit provided in a contract;

(b)    failure to perform or unsatisfactory performance in accordance with the terms of one or more contracts, except that failure to perform or unsatisfactory performance caused by acts beyond the control of the contractor may not be considered to be a basis for debarment.

(5)    violation of the ethical standards in MSB 3.08.520 or in state or other law or regulation;

(6)    violation of other provisions of this code relating to contracting;

(7)    any other cause determined by the purchasing officer to be so serious and compelling as to affect responsibility as a borough contractor, including debarment by another governmental entity for a cause similar to one in this subsection.

(8)    additional causes for debarment may include:

(a)    misrepresentation of product or merchandise to be supplied;

(b)    submission of falsified invoices, billing summaries, status reports and other related documentation.

(D)    Written decision. A suspension or a notice of intent to debar shall be written and shall be mailed or otherwise furnished immediately to the person suspended or being debarred. The written statement shall:

(1)    state the reasons for the action taken;

(2)    inform the person of rights to an administrative appeal.

(E)    Hearing on a suspension or proposed debarment. A person suspended under subsection (B) of this section, or for whom a debarment is proposed under subsection (A) of this section is entitled to a hearing if the person files a written request for a hearing with the purchasing officer within seven calendar days after the notice of suspension or proposed debarment is mailed or otherwise furnished to the person. If a suspended person or a person proposed for debarment requests a hearing, the purchasing officer shall immediately forward the request to the manager. The manager or the hearing officer appointed by the manager shall schedule a prompt hearing unless the attorney determines that a hearing at the proposed time is likely to jeopardize an investigation. A hearing may not be delayed longer than six months after notice of suspension or intent to debar. The hearing shall be conducted in accordance with subsection (F) of this section and any regulations adopted by the manager.

(F)    Hearing procedures. Hearings to disbar or suspend shall be conducted as follows:

(1)    The manager shall act as a hearing officer or appoint a hearing officer for a hearing conducted under this section. The hearing officer shall arrange for a prompt hearing and notify the parties in writing of the time and place of the hearing. The hearing shall be conducted in an informal manner. The hearing officer may:

(a)    hold prehearing conferences to settle, simplify or identify the issues in a proceeding, or to consider other matters that may aid in the expeditious disposition of the proceeding;

(b)    require parties to state their positions concerning the various issues in the proceeding;

(c)    require parties to produce for examination those relevant witnesses and documents under their control;

(d)    rule on motions and other procedural matters;

(e)    regulate the course of the hearing and conduct of the participants;

(f)    establish time limits for submission of motions or memoranda;

(g)    impose appropriate sanctions against a person who fails to obey an order of the hearing officer, including:

(i)    prohibiting the person from asserting or opposing designated claims or defenses or introducing designated matters into evidence;

(ii)    excluding all testimony of an unresponsive or evasive witness; or

(iii)    excluding a person from further participation in the hearing;

(h)    take official notice of a material fact not appearing in evidence if the fact is among the traditional matters subject to judicial notice; and

(i)    administer oaths or affirmations.

(2)    A transcribed record of the hearing shall be made available at cost to a party that requests it.

(3)    If the manager appoints another as a hearing officer, the hearing officer shall recommend a decision to the manager based on the evidence presented. The recommendation shall include findings of fact and conclusions of law. The manager may affirm, modify or reject the hearing officer’s recommendation in whole or in part, may remand the matter to the hearing officer with instructions, or take other appropriate action.

(G)    Final decision and appeal. A decision by the manager after a hearing under this section is final. A decision shall be sent within 20 calendar days after the hearing to all parties by personal service or certified mail. A final decision of the manager under this section may be appealed to the superior court in accordance with the Alaska Rules of Appellate Procedure.

(H)    List of persons debarred or suspended; effect. The purchasing officer shall maintain a list of all persons debarred or suspended from consideration for award of contracts. Debarment or suspension of an individual under one business name is effective for all business names under which the individual operates. Debarment or suspension of any entity is effective as to any other entity in which an individual or combination of individuals common to both entities have a 20 percent or greater interest in both entities.

(I)    Reinstatement. The purchasing officer may, at any time after a final decision to debar or suspend a person from consideration for award of contracts, reinstate the person after determining that the cause for which the person was suspended or debarred no longer exists or has been substantially mitigated. A suspended or debarred person may request reinstatement by submitting a petition to the purchasing officer supported by evidence showing that the cause for suspension or debarment no longer exists or has been substantially mitigated. The purchasing officer may require a hearing on a reinstatement petition. A decision on reinstatement shall be made in writing within seven calendar days after a reinstatement petition is submitted. The decision shall specify the factors on which it is based. A decision under this section is not subject to administrative or judicial appeal.

(J)    Limited participation. The purchasing officer may permit a suspended or debarred person to participate in a contract on a limited basis during the suspension or debarment period if the purchasing officer determines in writing that the participation is advantageous to the borough. The determination shall specify the factors on which it is based and the limits imposed on the suspended or debarred person.

(Ord. 01-117, § 2, 2001; Ord. 94-001AM, § 4 (part), 1994; Ord. 86-33, § 3, 1986)

3.08.240 PROCEDURES FOR AWARD.

(A)    Contracts shall be awarded by written notice issued by the purchasing officer to the lowest qualified, responsive and responsible bidder, provided that, if the lowest bids are approximately equal, that is, within the lesser of $2,000 or 5 percent of each other, preference may be given to local bidders who maintain and operate businesses within the boundaries of the borough.

(B)    The borough may reject any or all bids if the manager determines that it is in the best interest of the borough.

(C)    If the lowest qualified, responsive and responsible bid exceeds the amount of funds certified by the chief fiscal officer to be available for the procurement, and if sufficient additional funds are not made available, the scope of the procurement may be reduced to bring its estimated cost within the amount of available funds. The purchasing officer shall issue a new invitation for bids for the reduced procurement, or, upon finding that the efficient operation of the borough government requires that the contract be awarded without delay, and the purchasing officer may negotiate with the three lowest qualified, responsive and responsible bidders, and may award, or recommend to the assembly for award, the reduced contract to the best negotiated proposal.

(Ord. 94-001AM, § 4 (part), 1994; Ord. 84-55, § 5, 1984; Ord. 81-109, § 2(B) (part), 1981)

3.08.250 WAIVER OF IRREGULARITIES.

The manager shall have the authority to waive irregularities on any and all bids, except that timeliness and manual signature requirements shall not be waived.

(Ord. 84-55, § 6, 1984; Ord. 81-109, § 2(B) (part), 1981)

3.08.260 COMPETITIVE SEALED PROPOSALS; NEGOTIATED PROCUREMENT.

(A)    If the purchasing officer determines that use of competitive sealed bidding is not practicable or advantageous, the borough may procure supplies, services, or construction by competitive sealed proposals under this section.

(B)    The purchasing officer shall solicit competitive sealed proposals by issuing a request for proposals. The request for proposals shall state, or incorporate by reference, all specifications and contractual terms and conditions to which a proposal shall respond, and shall state the factors to be considered in evaluating proposals and the relative importance of those factors. Public notice of a request for proposals shall be given as deemed appropriate by the purchasing officer. One or more pre-proposal conferences may be held by the purchasing officer. A request for proposals may be modified or interpreted only in written addenda issued by the purchasing officer.

(C)    Sealed proposals shall be designated as such on an outer envelope and shall be submitted by mail or in person at the place, and no later than the time, specified in the request for proposals. Proposals not submitted at the place or within the time specified shall not be opened or considered.

(D)    Proposals shall be received at the time and place designated in the request for proposals, and shall be opened so as to avoid disclosing their contents to competing proposers and the public during the process of negotiation. Proposals, tabulations and associated documentation submitted in response to a proposal requested pursuant to this section shall be open to public inspection only after contract award. However, the purchasing officer shall, after notice of successful proposal, and upon request by a competing proponent, make the recommended awardee’s proposal, tabulations and associated documents open for review by a competing proponent.

(E)    In the manner provided in the request for proposals, the purchasing officer may negotiate with those qualified and responsible proponents whose proposals are determined by the purchasing officer to be reasonably responsive to the request for proposals. Negotiations shall be used to clarify and assure full understanding of the requirements of the request for proposals. The purchasing officer may permit proponents to revise their proposals after submission and prior to award to obtain best and final offers. Proponents deemed eligible for negotiations shall be treated equally regarding any opportunity to discuss and revise proposals. In conducting negotiations and requesting revisions, neither the purchasing officer, nor any other borough officer or employee shall disclose any information derived from proposals of competing proponents.

(F)    Awards shall be made by written notice to the qualified and responsible proponent whose final proposal is determined to be most advantageous to the borough. No criteria other than those set forth in the request for proposals may be used in proposal evaluation. If the manager determines that it is in the best interest of the borough to do so, the borough may reject any or all proposals.

(Ord. 08-027(AM), § 5, 2008: Ord. 94-001AM, § 4 (part), 1994; Ord. 89-161, § 2, 1989; Ord. 81-109, § 2(B) (part), 1981)

3.08.270 OPEN MARKET PROCEDURE.

(A)    The purchasing officer may in the best interest of the borough procure all supplies, services, professional services and construction having an estimated value of not more than $25,000 on the open market without formal advertising or other formal bid procedures.

(B)    Whenever practicable, at least three informal bids or quotations shall be solicited for any procurement under this section. The solicitation may be either oral or written, and shall be in a form reasonably calculated to yield the lowest responsive bid by a qualified and responsible bidder.

(C)    Awards, where practicable, shall be made to the lowest responsive, qualified and responsible bidder. The purchasing officer shall keep a record of all open market bids received and awards made on the bids.

(D)    When requested by the assembly, the purchasing officer shall provide a report to the assembly of all procurements under this section.

(E)    Contracts for rental of equipment, including operators and procurement of required materials, for use in the road service areas for normal maintenance and upgrading may be procured under the open market method, even though the summer and winter maintenance program may exceed the limit values of subsection (A) of this section.

(Ord. 08-027(AM), § 6, 2008; Ord. 07-034(AM), § 3, 2007; Ord. 04-188, § 3, 2005; Ord. 94-001AM, § 4 (part), 1994; Ord. 89-4, § 4, 1989; Ord. 84-55, § 7, 1984; Ord. 81-109 § 2(B) (part), 1981)

3.08.280 PROPRIETARY REQUIREMENTS.

(A)    The borough may award a contract for supplies, services or construction without competition where the purchasing officer determines in writing that the borough’s requirements reasonably limit the source for the supplies, services or construction to one person.

(B)    When requested by the assembly, the purchasing officer shall provide a report to the assembly of all procurements under this section.

(Ord. 81-109, § 2(B) (part), 1981)

3.08.290 EMERGENCY PROCUREMENTS.

The borough may award a contract for supplies, services, professional services, or construction without competition, formal advertising or other formal procedure where the manager determines in writing that an emergency threatening the public health, safety, property or welfare requires that the contract be awarded without delay. A report on an emergency contract shall be made to the assembly no later than the next regular meeting following award of the contract.

(Ord. 94-001AM, § 4 (part), 1994; Ord. 84-55, § 8, 1984; Ord. 81-109, § 2(B) (part), 1981)

3.08.300 PROFESSIONAL SERVICES.

(A)    Except as authorized by MSB 3.08.280 and 3.08.290, professional services shall be procured in accordance with the terms of this section.

(B)    Persons interested in providing professional services for the borough may submit statements of qualifications to the purchasing office.

(C)    To the extent practicable, notice of the need for professional services shall be given by the purchasing office. The notice shall describe the services required and shall list the type of information and data required of each person submitting a proposal.

(D)    The agency head and the purchasing officer may conduct discussions with any person who has submitted a proposal to determine the person’s qualifications for further consideration. Discussions shall not disclose any information derived from proposals submitted by other persons.

(E)    Award shall be made to the person determined by the agency head and the purchasing officer to be the best qualified, and shall be for an amount of compensation determined to be fair and reasonable. If compensation cannot be agreed upon with the best qualified person, negotiations shall be formally terminated with that person. If proposals were submitted by one or more other persons determined to be qualified, negotiations may be conducted with the persons, in order of their respective qualification ranking. The contract may be awarded to the person then ranked as best qualified if the amount of compensation is determined to be fair and reasonable.

(Ord. 16-045, § 3, 2016; Ord. 94-001AM, § 4 (part), 1994; Ord. 81-109, § 2(B) (part), 1981)

3.08.310 BONDS.

(A)    The purchasing officer may require that persons submitting bids pursuant to this chapter accompany their bids with a bid bond in an amount and in a form acceptable to the purchasing officer. The bond shall be issued by a company qualified by law to do business as a surety in the state of Alaska, or shall be in the form of a cashier’s check or cash deposit. A condition of the bond shall be that if the bidder receives the award, the bidder shall enter into a contract with the borough.

(B)    If a requirement for a performance and payment bond is included in the terms of the invitation to bid, the purchasing officer may require that any person awarded a borough contract furnish a performance and payment bond, issued by a company qualified by law to do business as a surety in the state. The bond shall be in an amount determined by the purchasing officer and in a form approved by the attorney. The bonds shall, at a minimum, guarantee the full and faithful performance of all contract obligations and the payment of all labor and materials to be used under the contract.

(C)    The purchasing officer, with department head concurrence, may grant exceptions from bonds pursuant to A.S. 36.25.025.

(Ord. 94-001AM, § 4 (part), 1994; Ord. 81-109, § 2(B) (part), 1981)

3.08.320 WAIVER OF FORMAL BIDDING PROCEDURES.

(A)    The manager may waive, in writing, some or all of the formal bidding procedures of this chapter when there is not sufficient time to comply with the waived requirements, or the best interests of the borough shall be served by the waiver.

(B)    All contracts for which formal procedures are waived under this section shall be reported to the assembly. The report shall contain the information described in MSB 3.08.350 and shall state the reasons for proceeding under this section.

(Ord. 94-001AM, § 4 (part), 1994; Ord. 84-55, § 9, 1984; Ord. 81-109 § 2(B) (part), 1981)

3.08.330 FIELD PROCUREMENTS; VALUE LIMITATION.

The purchasing officer shall establish policies and procedures for prudent field procurements.

(Ord. 94-001AM, § 4 (part), 1994; Ord. 81-109, § 2(B) (part), 1981)

3.08.340 Appeal. [Repealed by Ord. 95-170AM, § 3 (part), 1995. For current provisions, see MSB 3.08.341]

3.08.341 Bid Review Procedures. [Repealed by Ord. 03-022AM, § 3, 2003]

3.08.342 BID PROTEST AND APPEAL PROCEDURES.

(A)    Policy. The borough establishes bid protest and appeal procedures to promote the fair and efficient resolution of disputes over contracts awarded by the borough pursuant to the provisions of MSB 3.08 regarding bids and requests for proposals. Bid protest and appeal procedures are established to ensure the integrity of the public bidding process. Time is of the essence in any bid protest or appeal.

(B)    Notification. All bid and proposal documents the borough issues shall contain language advising bidders and proponents of the right to protest and appeal the determination of the successful bid or proposal and shall list the procedures for protests and appeals.

(C)    Bid Protest. Within two days of service of the purchasing officer’s determination of the apparent successful bid or proposal, a bidder who wishes to protest the determination shall lodge a protest with the purchasing officer. The bid protest shall be in writing on a form provided by the purchasing officer. The bid protest shall describe with particularity the alleged errors in the award of the bid. The purchasing officer shall conduct a review in consultation with the borough attorney. Within three business days of receipt of the bid protest, the purchasing officer shall issue a determination. The determination shall be in writing, supported by findings and conclusions addressing the issues raised in the bid protest. The determination shall be issued to all participants in the bidding process by facsimile, if available, and U.S. mail.

(D)    Notice of appeal. A bidder may appeal the purchasing officer’s decision on a bid protest as follows:

(1)    Deadlines for filing. An appeal shall be received by the clerk’s office within three business days after the issuance of the purchasing officer’s decision. Failure to file within three business days shall result in an appeal being denied as untimely without further process and shall constitute a bar on any further action.

(2)    Procedure for filing. An appeal shall be filed on a form provided by the clerk. The party shall submit a $75 filing fee to the department of finance. Proof of payment of the filing fee shall be required prior to the acceptance of the appeal. The clerk’s form shall require the party to provide the following information:

(a)    Information on the bid including the bid number and subject matter of the bid;

(b)    Information on the party filing the appeal, including the business name of the party, contact information including full name of the business, name of a contact, address, telephone number, and facsimile number; and

(c)    If the party is represented by counsel, the name, address, telephone, and facsimile of the counsel.

(E)    Administrative hearing officer review. An administrative hearing officer appointed pursuant to MSB 2.29 shall have jurisdiction over all bid appeals. The clerk’s office shall contact an administrative hearing officer when an appeal is filed. The clerk’s office shall maintain a list of administrative hearing officers by alphabetical order of last name and shall rotate appointments. An administrative hearing officer who is not available for service shall be the first contacted for service at the next appeal. The appointment shall be made within two business days of the filing of the appeal.

(F)    Clerk’s notice. The clerk shall give notice of the appeal to the borough and all bidders by facsimile, if available, and shall supplement the facsimile notice with notice by U.S. Mail, or personal delivery within two business days of the filing of the appeal.

(G)    Record. Within three business days of receiving notice of the appeal, the purchasing officer shall submit the record of the bid to the clerk. The clerk shall mail the record to the parties within three business days.

(H)    Hearing date and briefing schedule. The clerk shall set a hearing date at least 15 calendar days and no later than 20 calendar days from the date the record is mailed or personally served. The clerk shall issue a calendaring notice for briefing and exhibit filing. The calendaring notice shall be served by U.S. Mail. The briefing schedule shall be set by the clerk as follows:

(1)    Briefs. Briefs shall be drafted to conform with the Alaska Rules of Civil Procedure and shall be filed no later than five calendar days prior to the hearing. Briefs may include an appendix with evidence upon which the bidder intends to rely at hearing.

(2)    Exhibits. All exhibits shall be filed with the clerk no later than five calendar days prior to hearing.

(3)    Entry of appearance. If a bidder is to be represented by counsel, an entry of appearance shall be filed no later than five days prior to hearing.

(I)    Hearings.

(1)    Representation. A bidder may appear through counsel or represent him or herself.

(2)    Conduct of hearing. The administrative hearing officer has the discretion to conduct the hearing in a manner which enables the issues and facts to be presented in a manner which conforms to due process and preserves judicial economy. The administrative hearing officer shall conduct the hearing according to the Alaska Rules of Civil Procedure and the Alaska Rules of Evidence. However, the administrative hearing officer may in his or her discretion waive strict adherence to the evidence rules.

(a)    A bidder shall be entitled to present witnesses and evidence on its behalf.

(b)    A bidder has the right to cross-examine opposing witnesses and rebut evidence.

(c)    All hearings shall be open to the public.

(d)    All testimony shall be given under oath or affirmation.

(e)    The hearing shall be tape-recorded.

(3)    Standard of review. The administrative hearing officer shall review the borough’s award of the contract using a substantial evidence standard of review.

(J)    Findings and decision. The administrative hearing officer’s findings are limited to rejecting or upholding the award of the contract. If the administrative hearing officer rejects the award of the contract, the matter shall be remanded to the borough for further action. The administrative hearing officer has the discretion to make an oral finding to uphold or reject the borough’s award of the contract at the conclusion of the hearing or to take the matter under advisement. If the administrative hearing officer takes the matter under advisement, a written decision shall be issued within five calendar days of the hearing. If the administrative hearing officer makes an oral finding at the conclusion of the hearing, the oral finding shall be supplemented with written findings within five calendar days of the hearing. The administrative hearing officer shall support the decision through written findings of fact. The administrative hearing officer shall provide the written decision to the clerk. The clerk shall serve the written decision on the parties in person or by mail within two business days after receiving the decision. The clerk, in her or his discretion, may notify the parties by telephone prior to mailing the decision.

(K)    Appeal to the superior court. An appeal may be taken to the superior court from the written decision of the administrative hearing officer pursuant to the Alaska Rules of Appellate Procedure. (Ord. 03-022AM, § 4, 2003)

3.08.350 ASSEMBLY REPORT.

(A)    In a contract for the purchase of any supplies, services, professional services or construction, if the manager waives formal bidding procedures or if the contract is awarded to other than the low bidder, a report on the procurement contract shall be made to the assembly no later than the next regular meeting following the award of the contract.

(B)    A report to the assembly shall include:

(1)    the identity of the contractor;

(2)    the contract price;

(3)    the nature and quantity of the performance that the borough shall receive under the contract;

(4)    the using agency;

(5)    the time for performance under the contract; and

(6)    a description of the waiver, emergency or other procedure followed.

(Ord. 84-55, § 10, 1984)

3.08.360 INTERGOVERNMENT CONTRACTS.

Notwithstanding the other provisions of this chapter, the borough may enter into procurement agreements with the federal, state and other municipal governments when it is in the best interests of the borough to do so.

(Ord. 84-55, § 11, 1984)

ARTICLE IV. SPECIAL PROVISIONS

3.08.460 BOROUGH PREFERENCE POLICY.

It is the policy of the borough to give preference to local residents, workers, businesses, contractors, producers and dealers to the extent consistent with the law and interests of the public.

(Ord. 81-109, § 2(B) (part), 1981)

3.08.470 CONTRACTS; EMPLOYMENT PREFERENCES.

In the performance of contracts awarded by the borough for construction, repairs, preliminary surveys, and engineering studies for maintenance work, 95 percent of residents shall be employed where the residents are available and qualified. If ten or fewer persons are employed under the contract, then 90 percent of residents shall be employed where available and qualified. In all cases of public works projects, preference shall be given to residents of the borough and of the state to the extent authorized by law.

(Ord. 94-001AM, § 4 (part), 1994; Ord. 81-109, § 2(B) (part), 1981)

3.08.480 REFUND FOR LOCAL HIRE.

(A)    Where the entire funding for a project is obtained from borough property tax revenues, the finance director shall, for all contracts awarded under the formal competitive bidding procedures in this chapter, on the contractor’s request, refund to the contractor 5 percent of the cost of salary paid by the contractor directly or through the subcontractors to residents of the borough, who were directly employed on the project for which the referenced contract applies.

(B)    Refunds may be requested at the same time as periodic payments, if any, are authorized under the contract. The contractor shall detail all employee costs for which refunds are requested and shall submit supporting documentation as required by the finance director.

(C)    In this section and in MSB 3.08.470, “bona fide borough residents” means an employee of the contractor, who during the time the employee performed services to the contractor in connection with performance of contract work was a registered voter of the Matanuska-Susitna Borough, or was, by virtue of the employee’s residency, qualified to become a registered voter of the Matanuska-Susitna Borough during that time.

(Ord. 94-001AM, § 4 (part), 1994; Ord. 82-22, § 2, 1982; Ord. 81-109, § 2(B) (part), 1981)

3.08.490 EMPLOYMENT UNDER CONTRACTS INVOLVING FEDERAL AID FUNDS.

In a contract involving federal aid funds, this chapter may not be enforced to conflict with federal law giving preference to veterans and prohibiting discrimination among United States citizens.

(Ord. 94-001AM, § 4 (part), 1994; Ord. 81-109, § 2(B) (part), 1981)

3.08.500 PRODUCER AND DEALER PREFERENCE.

In making purchases or awarding contracts for goods, services or construction, preference may be given whenever practicable to producers, contractors and dealers in the borough pursuant to MSB 3.08.240.

(Ord. 81-109, § 2(B) (part), 1981)

3.08.510 PREFERENCE FOR BOROUGH PRODUCTS.

In general, purchase preference shall be given to products of the borough pursuant to MSB 3.08.240.

(Ord. 81-109, § 2(B) (part), 1981)

3.08.515 AGRICULTURAL AND FISHERIES PRODUCTS PREFERENCE.

(A)    When agricultural products are purchased by the borough, agricultural products harvested in the borough shall be purchased whenever competitively priced, available and meeting applicable specifications.

(B)    When fisheries products are purchased by the borough, fisheries products harvested or processed within the borough shall be purchased whenever competitively priced, available and meeting applicable specifications.

(C)    As used in this section, “competitively priced” means priced within 5 percent of a like quality product that is bid, but does not meet the applicable borough harvesting, processing or manufacturing requirement. To the extent practical, as determined by the finance director, invitations to bid under which agricultural or fisheries products are to be purchased should be structured to maximize the opportunity for bidders to respond with locally harvested products. Where agricultural or fisheries products are to be purchased in combination with other products, the invitations to bid should be structured so that unit prices may be bid on agricultural and fisheries products. Where unit prices are bid in a combined purchase, the total amount of the bid shall be reduced by an amount equal to 5 percent of the unit price or prices bid for agricultural or fisheries products that qualify under subsections (A) and (B) of this section.

(D)    As used in this section, the term “agricultural products” includes dairy products as well as timber and lumber harvested in the borough and products manufactured in the borough from timber and lumber that have been harvested in the borough.

(E)    The preference given under this section is in addition to preferences given in other sections of this chapter or required by statute; except, when a state preference is required by statute or regulation, the amount of the borough preference shall be reduced if necessary to produce a total preference not exceeding 7 percent.

(Ord. 94-001AM, § 4 (part), 1994; Ord. 87-107, § 2, 1987)

3.08.520 ETHICS OF CONTRACTING PURCHASING.

(A)    All purchases and contracts shall be for the public benefit of the borough.

(B)    Any borough officer or employee who has financial interest, direct or indirect, or by reason of ownership of stock in any land, materials, suppliers, goods, services or construction to the borough or to a contractor supplying the borough, shall make known that interest. The person may not vote or decide on the awarding of any contract in which the person has a financial interest. Any borough officer or employee who wilfully conceals a financial interest or wilfully violates the requirements of this section shall forfeit the office or position. Violation of this subsection with the knowledge express or implied of the person or corporation contracting with or making a sale to the borough renders the contract voidable by the assembly.

(C)    There shall be no hidden charges remuneration, kickback, or any other financial consideration not specifically stated in the contract or in the notice and instructions to bidders. Violation of this subsection shall render the contract voidable by the assembly. Any person who wilfully violates this subsection, upon conviction, shall be subject to a fine of not more than $1,000, and if the person is an officer or employee of the borough, shall immediately forfeit the office or position.

(D)    For contracts related to construction, including architectural and engineering contracts, the bid or proposal shall include a written statement disclosing all financial interests of the contractor in property within or abutting the construction site. “Interests of the contractor” shall include interests of the contractor’s immediate family, or if a corporation, interests of members of the contractor’s board of directors and any shareholder owning at least 20 percent of the corporation.

(Ord. 94-001AM, § 4 (part), 1994; Ord. 81-155, § 2, 1981; Ord. 81-109, § 2(B) (part), 1981)

3.08.530 LOCAL BOND EXEMPTION OPTION.

(A)    Prior to any solicitation of bids for any construction contract for which the lowest bid is expected to not exceed $150,000, the manager shall determine whether to accept bids from contractors who may become exempt from payment and performance bond requirements under subsection (B) of this section. The manager may waive performance and payment bond requirements for the lowest qualified bidder in any construction contract if:

(1)    the manager has determined, for that construction contract, that the risk associated with waiver of bonding is outweighed by the benefits of increased participation of local contractors in public construction contracts;

(2)    the successful low bidder fully qualifies with the requirements of subsection (B) of this section;

(3)    the successful low bid does not exceed $150,000; and

(4)    the successful low bid does not conflict with state or federal requirements.

(B)    A successful construction contractor may apply for exemption from performance and payment bond, consistent with this section, by describing in writing five previous jobs and authorizing the borough to review prior performances. Applications shall also demonstrate that:

(1)    the contractor is, and for two years immediately preceding the award of contract has been, a licensed contractor having its principal office in the state;

(2)    the contractor certifies that the contractor has not defaulted on a contract during the period of three years preceding the award of a contract for which a bid is submitted;

(3)    the contractor submits a financial statement, in the form and manner satisfactory to the manager, prepared within nine months before the submission of a bid for the contract and certified by a certified public accountant demonstrating that the contractor has a net worth of 50 percent or more of the amount of the contract for which the bid is submitted; and

(4)    the total amount of all contracts which the contractor anticipates performing during the term of performance of the contract for which a bid is submitted does not exceed the net worth of the contractor reported in the certified financial statement prepared and submitted under subsection (B)(3) of this section by more than three times.

(C)    The manager may impose additional conditions on construction contracts let without performance or payment bonds, including but not limited to the following:

(1)    No payment shall be made to the contractor on the contract awarded until completion of the work contracted for unless the contract term shall run longer than 60 days, in which case the manager may make periodic payments.

(2)    The contractor shall certify that all providers of labor or material have been paid in full, prior to payment for the contract awarded.

(Ord. 94-001AM, § 4 (part), 1994; Ord. 89-75, § 3, 1989; Ord. 81-109, § 2(B) (part), 1981)

ARTICLE V. CONTRACTS WITH NONPROFIT SERVICE ORGANIZATIONS

3.08.610 GENERAL PROVISIONS.

(A)    The assembly may appropriate funds to nonprofit service organizations. Any funds appropriated to nonprofit service organizations shall be expended only for a public purpose permitted by Article IX, Section 6 of the constitution of the state of Alaska, and pursuant to a power granted to or assumed by the borough. The organization shall be a nonprofit corporation organized under the laws of the state, whose purpose is:

(1)    to foster the general community welfare of the borough; and

(2)    to serve as a funding agency, the primary purpose of which is to channel money or services to other nonprofit service organizations whose purpose is to foster the general community welfare.

(B)    If the organization is a funding agency for other organizations it shall be specifically found to:

(1)    have established fair and objective guidelines approved by the assembly for the disbursement of funds to other nonprofit service organizations; and

(2)    follow a policy of forwarding funds or services only to those nonprofit service organizations which provide services designed for the benefit of the residents of the borough.

(C)    To qualify for an appropriation, an organization shall ensure that it:

(1)    is organized to meet a certain need within the community;

(2)    has a program designed to meet that specific need;

(3)    is the best qualified organization within the community to meet the identified need;

(4)    has provided a functional work program, has a responsible organizational structure, and, in the case of previously existing organizations, can demonstrate a record of financial responsibility; and

(5)    has the capacity and willingness to account for moneys to establish that all moneys spent are spent only for the public purpose designated by the assembly and only pursuant to a power granted to or assumed by the municipality.

(D)    Funds which have been appropriated by the assembly to nonprofit organizations for the benefit and welfare of the public shall be controlled by regulations proposed by the manager. Funds appropriated to nonprofit service organizations shall be subject in all cases to audit by the borough, and for nonprofit organizations which require independent financial audits, a copy of the audits shall be furnished to the borough.

(Ord. 94-001AM, § 4 (part), 1994; Ord. 81-109, § 2(B) (part), 1981)

3.08.620 CONTRACTS FOR LEISURE-TIME SERVICES.

(A)    The assembly may appropriate and authorize contracts with nonprofit entities and municipal entities to provide community leisure-time services for the benefit and welfare of the public as follows:

(1)    A nonprofit organization or municipal entity desiring funding from the borough for the provision of leisure-time services shall first make application to the manager on forms provided by the borough.

(2)    The borough shall advertise for leisure-time proposals once a week for two consecutive weeks prior to the due date of applications.

(3)    The application shall be reviewed by the appropriate advisory committee which shall make recommendations, subject to funds appropriated by the assembly, for approval or disapproval to the manager and the assembly.

(4)    The organization shall be a nonprofit entity organized under the laws of the state or federal law as a nonprofit service organization.

(5)    Funds which have been appropriated by the assembly under this section, except in the case of incorporated cities, shall not pass through to the nonprofit organization.

(6)    Funds which have been appropriated by the assembly under this section to nonprofit organizations for the benefit and welfare of the public shall be controlled by the regulations proposed by the manager.

(Ord. 94-001AM, § 4 (part), 1994; Ord. 91-15, § 2, 1991; Ord. 81-109, § 2(B) (part), 1981)

ARTICLE VI. STATE AND FEDERAL GRANTS

3.08.710 DEFINITIONS.

(A)    For the purpose of this article, the following definitions shall apply unless the context clearly indicates or requires a different meaning.

(1)    “Grant” means the furnishing by the state and federal government of financial or other assistance to the borough to implement a project or program authorized by law, excluding revenue-sharing programs, requiring compliance with terms and conditions under a grant agreement.

(2)    “Grant agreement” means the contract document including, but not limited to, rules, regulations and laws pertaining to the grant, between the borough and the granting agency.

(3)    “Grantee” means the Matanuska-Susitna Borough.

(4)    “Granting agency” means the state and federal department administering the grant.

(5)    “Grantor” means the state and federal government agency offering the grant to the grantee.

(Ord. 94-001AM, § 4 (part), 1994; Ord. 81-109, § 2(B) (part), 1981)

3.08.720 GENERAL PROVISIONS.

(A)    The assembly shall appropriate funds and accept grant offers from state and federal granting agencies.

(B)    The assembly may authorize the mayor or manager to enter into grant agreements.

(C)    The assembly may authorize the manager to enter into contracts with incorporated entities, including organized cities, to assist the borough in performing under the terms and conditions of grant agreements.

(D)    The manager shall establish policies and procedures under this chapter.

(Ord. 94-001AM, § 4 (part), 1994; Ord. 81-109, § 2(B) (part), 1981)

3.08.730 GRANT ADMINISTRATION.

(A)    Except as this code provides otherwise, all rights, powers and authority pertaining to grants are vested in the manager.

(B)    The grant administrator shall administer all facets of grants from preapplication through final grant audit.

(C)    The grant administrator shall have the responsibility to assure full compliance by the borough with the terms and conditions of the grant agreement.

(Ord. 94-001AM, § 4 (part), 1994; Ord. 81-109, § 2(B) (part), 1981)