Chapter 5.10
PURCHASES AND SALES

Sections:

5.10.010    Contractual services defined.

5.10.012    Public improvement defined.

5.10.020    Borough manager or authorized personnel to make purchases.

5.10.030    When prior approval by the assembly is required.

5.10.035    When prior approval by the voters is required.

5.10.040    When competitive bidding or quotations are required.

5.10.050    When competitive bidding or quotations are not required.

5.10.060    Sale of surplus, obsolete, or unneeded personal property.

5.10.062    Disposition of personal property for economic development purposes.

5.10.065    Findings supporting local hire requirement on public improvement contracts.

5.10.070    Local hire required on public improvement contracts.

5.10.010 Contractual services defined.

“Contractual services,” for the purpose of this chapter, means services performed for the borough by persons not in the employment of the borough, and may include the use of equipment or the furnishing of commodities in connection with the services under express or implied contract. Contractual services include travel; telephone, telegraph, utilities; rents; printing and binding; repairs, alterations, and maintenance of buildings, equipment, streets and bridges, and other physical facilities of the borough; and other services performed for the borough by persons not in the employment of the borough. [Ord. 444 § 4, 1983.]

5.10.012 Public improvement defined.

“Public improvement,” as used in this chapter, means the erection, building, construction, placement, creation or explosion, demolition or removal of an improvement to land. [Ord. 444 § 4, 1983.]

5.10.020 Borough manager or authorized personnel to make purchases.

All purchases of supplies, materials, equipment, and contractual services for the offices, departments, and agencies of the borough government shall be made by the borough manager or by other borough personnel in accordance with purchase authorization issued by the borough manager. In the event any purchasing authority has any financial interest in a vendor, then the purchase order shall be issued by the borough clerk. [Ord. 535 § 4, 1988; Ord. 444 § 4, 1983.]

5.10.030 When prior approval by the assembly is required.

Every contract for, or purchase of, supplies, materials, equipment, contractual services, or public improvements for more than $25,000, excluding freight, shall require the prior approval by motion or resolution of the assembly; and under no circumstances may such contract or purchase be made without first obtaining the approval of the assembly. [Ord. 856 § 1, 2011; Ord. 816 § 1, 2008; Ord. 444 § 4, 1983.]

5.10.035 When prior approval by the voters is required.

A. The sale or lease of any borough property, real or personal, or the sale or other disposal of any interest therein, the value of which property, lease or interest is more than $1,000,000, shall be made only by authority of an ordinance enacted or ratified at an election by an affirmative vote of a majority of the qualified voters of the borough who vote upon the question of approval or enacting the ordinance (the ordinance being submitted to the voters by the assembly or by initiative of the voters).

B. An entire public utility and appurtenant franchises belonging to the borough may be sold or leased only by authority of an ordinance enacted or ratified at an election by an affirmative vote of a majority of the qualified voters of the borough who vote upon the question.

C. Any other provision notwithstanding, the borough may enter into an agreement for the purchase, sale or other disposal of electric power, or an agreement providing for participation by the borough in the construction, acquisition or operation of hydroelectric power facilities, upon such terms as the borough assembly may approve by resolution. [Ord. 815 § 6, 2008.]

5.10.040 When competitive bidding or quotations are required.

A. Purchases of, or contracts for, supplies, materials, equipment, contractual services, or public improvements whose cost does not exceed $10,000 in a single transaction may be made on the open market without competitive bidding or quotations; provided, that such purchases or contracts are for budgeted items or items previously approved by the assembly.

B. Except as otherwise provided in WMC 5.10.050, purchases of, or contracts for, supplies, materials, equipment, or contractual services whose cost exceeds $10,000 but does not exceed $25,000 in a single transaction shall, at the option of the borough purchasing authority, be made in the open market by written quotation or telephone solicitation or through the competitive bidding process set out in subsection (C) of this section.

C. Except as otherwise provided in WMC 5.10.050, before any purchase of, or contract for, supplies, materials, equipment, or contractual services is made whose cost exceeds $25,000, the borough purchasing authority shall submit to at least three persons, firms or corporations dealing in and able to supply the same, or to a smaller number if there are not three dealing in and able to supply the same, invitations to bid and specifications to give them opportunity to bid. He shall also publish notice of the proposed purchase in the newspaper of general circulation within the borough.

Adequate public notice shall be given at least 21 days before bid opening. If the borough manager makes a determination, in writing, that a shorter notice period is necessary for a particular bid, the period may be shortened.

When there are at least three such persons, firms or corporations in the borough, he need not, but he may, submit invitations to bid to those outside the borough; provided, that he can always do this at no additional cost to the borough. He shall, however, submit invitations to bid to those outside the borough when this may be necessary to secure bids or to create competitive conditions, or when he thinks that by so doing he can make a saving for the borough.

All bids shall be sealed and shall be opened in public at a designated time and place. He may repeatedly reject all bids and again may submit to the same or other persons, firms or corporations an invitation to bid, and again publish notice of the proposed purchase.

All bids in excess of 10 percent of the engineer’s estimate shall be rejected.

He shall purchase from the bidder whose bid is most advantageous to the borough.

D. Local Bidder Preference Award.

1. Unless contrary to federal or state law or regulation, or as otherwise provided in section (D)(2) of this section, a contract for, or purchase of, supplies, materials, equipment, contractual services, or public improvements shall be awarded to a local bidder where the bid by such local bidder is in all material respects comparable to the lowest responsible nonlocal bid, and if the amount bid by such local bidder does not exceed the lowest responsible nonlocal bid by more than:

a. Five percent of the amount bid by the lowest responsible nonlocal bidder if that nonlocal bidder’s bid is $1,000,000 or less;

b. Three percent of the amount bid by the lowest responsible nonlocal bidder if that nonlocal bidder’s bid is $1,000,001 or more.

2. This preference shall not be interpreted to mean that the borough is precluded from making the purchase from whatever source is most advantageous to the borough after considering all factors in the public interest even when the price quoted by the local bidder satisfies subsection (D)(1)(a) or (b) of this section.

3. “Local bidder” for purposes of the section shall mean a bidder who:

a. Holds a current Alaska business license;

b. Submits a bid for goods or services under the name appearing on the person’s current Alaska business license;

c. Has maintained a place of business within the boundaries of the borough for a period of six months immediately preceding the date of the bid;

d. Is not delinquent in the payment of any utilities, taxes, charges or assessments owing to the borough on account of that business;

e. Is incorporated or qualified to do business under the laws of Alaska with its principal place of business in the borough, is a proprietorship and the proprietor is a resident of the borough, or is a partnership and all partners are residents of the City and Borough of Wrangell;

f. If a joint venture, all joint venture partners must qualify under subsection (D)(3)(a) through (e) of this section;

g. The manager may required such documentation or verification by the person claiming to be a local bidder as is deemed necessary to establish the requirements of this section. [Ord. 817 § 1, 2008; Ord. 816 § 1, 2008; Ord. 605 § 4, 1995; Ord. 444 § 4, 1983.]

5.10.050 When competitive bidding or quotations are not required.

The following may be purchased or contracted for without giving an opportunity for competitive bidding or soliciting quotations:

A. Supplies, materials, equipment, or contractual services whose cost does not exceed $10,000, excluding freight costs, in a single transaction;

B. Supplies, materials, equipment, or contractual services which can be furnished only by a single dealer, or which have a uniform price wherever bought;

C. Supplies, materials, equipment, or contractual services purchased from another unit of government at a price deemed below that obtainable from private dealers, including war surplus;

D. Contractual services purchased from a public utility corporation at a price or rate determined by state or other governmental authority;

E. Contractual services of a professional nature, such as legal, engineering, architectural, and medical services;

F. Supplies, materials, equipment, or contractual services which must be purchased from a specific source in order to prevent incompatibility with previously purchased supplies, materials, equipment, or contractual services. For purposes of this subsection the term “incompatibility” is defined as the inability to (1) interconnect, combine, interchange, or join, or (2) that which causes or necessitates maintenance expertise or training where such acquisition would result in substantial duplication. The assembly must approve by motion or resolution any purchase whose cost exceeds $25,000 which is to be excluded from competitive bidding by the authority of this subsection;

G. Supplies, materials, equipment, contractual services, or public improvements which the assembly declares to be required on an emergency basis or which the assembly declares is impractical or impossible;

H. Placement of insurance coverage;

I. When it is advantageous to the borough to enter into a contract with a bidder for the same supplies or services such bidder is providing another Alaskan local government, the State of Alaska, or the United States where such supplies or services are being provided the other government unit on the basis of formal bids submitted and where the borough contract is on substantially the same terms as those bids, or to contract with or through such other government unit so that the benefit of the lowest and best responsible bid accrues to the borough;

J. When competitive bidding has been followed, but no bids or quotations are received or the bids or quotations are rejected. In such a case, after assembly approval, the borough manager may proceed to have the services performed or the supplies purchased without further competitive bidding or quotation;

K. Public improvement whose cost does not exceed $10,000 in a single transaction. [Ord. 816 § 1, 2008; Ord. 444 § 4, 1983.]

5.10.060 Sale of surplus, obsolete, or unneeded personal property.

A. No surplus, obsolete, or unneeded supplies, materials, equipment, or other personal property may be sold until the assembly has declared, by motion or resolution, them obsolete or surplus.

B. Before the borough manager sells any surplus, obsolete, or unneeded supplies, materials, equipment, or any other personal property, the borough manager shall advertise them for sale in a newspaper of general circulation in the borough and give notice in such other manner as he deems necessary to adequately reach prospective buyers to give them an opportunity to make bids. All bids shall be sealed and shall be opened in public at a designated time and place, except when the sale is by auction. The borough manager may repeatedly reject all bids and advertise or give notice again. He shall sell such supplies, materials, equipment, or other personal property to the highest responsible bidder for cash. In case of a tie, the successful bidder shall be determined by publicly drawing lots at a time and place specified by the borough manager, always selling to the highest responsible bidder or bidders for cash. If there are no bidders, the borough manager is authorized to sell such supplies, materials, equipment or other personal property for the minimum value established prior to sealed bidding. A sale of property of more than $1,000,000 in value must meet with the requirements of Section 5-14 of the borough charter.

C. Personal property, or an interest therein, may be sold or otherwise disposed of without competitive bidding as follows:

1. Supplies, materials, equipment or other personal property, or any interest therein, may be sold or otherwise disposed of by the manager when the total value thereof, as estimated by the manager, does not exceed collectively $2,000.

2. The manager may sell, lease, donate, exchange or otherwise dispose of personal property, or an interest therein, to or with another municipality, a state or the United States when and under such terms and conditions as the assembly, in its sole judgment, is in the best interest of the borough. [Ord. 667 § 4, 1999; Ord. 645 § 4, 1998; Ord. 597 § 4, 1995; Ord. 444 § 4, 1983.]

5.10.062 Disposition of personal property for economic development purposes.

A. In the exercise of the borough’s economic development powers, the assembly may determine, in its sole discretion, that it is in the best interest of the borough to dispose of borough-owned personal property, or any interest therein, which interest has a value of $1,000,000 or less (as determined by the borough assessor or a qualified appraiser), by sale, lease or otherwise, without requests for proposals or sealed bid procedures and at less than fair market value.

B. In determining the best interests of the borough under this section, the assembly may consider any relevant factors, which may include:

1. The desirability of the economic development project;

2. The actual or potential economic benefits to the borough, its economy and other businesses within the borough;

3. The contribution of the proponent to the economic development project in terms of money, labor, innovation, expertise, experience and otherwise;

4. The business needs of the proponent of the project in terms of integration into existing facilities and operations, stability in business planning, business commitments, and marketing;

5. Actual or potential local employment due to the economic development project; and

6. Actual and potential enhancement of tax and other revenues to the borough related to the project.

C. Prior to disposal under subsection (A) of this section, the assembly shall hold a public hearing. The borough clerk shall publish notice of the public hearing in a newspaper of general circulation in the borough at least 14 days prior to the hearing. The notice shall include the date, time and place of the hearing, a general description of the personal property or interest, and the proposed disposition and its purpose.

D. Following the hearing, the assembly may authorize disposition of the personal property or interest therein by resolution.

E. Where the acquisition of the personal property or any interest therein has been approved by the voters at an election, the disposition of such property or interest under this section by sale, trade or lease for a term exceeding five years shall be made only by authority of and ordinance ratified by a majority of the qualified voters of the borough who vote upon the question. For purposes of this subsection, the term of any such lease shall include the terms of all options to extend or renew the lease. The requirements of this subsection do not apply where the voter approval involved was in the form of authorizing the issuance of bonds to finance the acquisition of the personal property or any interest therein. [Ord. 780 §§ 1, 2, 2006; Ord. 757 § 1, 2004.]

5.10.065 Findings supporting local hire requirement on public improvement contracts.

The borough assembly finds:

A. Because of its isolated location and economic dependency on the seasonal and volatile industries of timber and fishing, the City and Borough of Wrangell has historically experienced social, seasonal, and geographic economic conditions that result in an unstable economy.

B. Because of the unstable economy, there is a high rate of unemployment among the residents of the borough, creating a hardship that is aggravated by the influx of transient nonresident workers.

C. The borough has a vested interest in providing jobs for its unemployed residents.

D. There is a high rate of resident unemployment in the construction industry in the borough.

E. It is in the public interest for the borough to allocate public funds for capital projects in order to reduce unemployment among its resident construction workers.

F. It is appropriate for the borough to consider the welfare of its residents when it funds or administers construction activities.

G. The influx of transient nonresident construction workers contributes to the high unemployment among resident construction workers, because the nonresident workers compete with residents for the available construction jobs.

H. The borough has a vested interest in seeing that the benefits of public construction spending accrue to its residents, and nonresident workers displace qualified, available and unemployed Wrangell workers on borough funded and administered public works projects.

I. A high percentage of the borough’s revenue is derived from property tax and the resident construction workers’ contribution to the tax base help to fund the public works projects.

J. The borough has a duty of loyalty to its citizens and should fulfill this duty by giving Wrangell residents an employment preference on all borough funded or administered projects in order to promote a more stable economy.

K. There is a legitimate vested governmental interest, in that the public health and welfare of Wrangell will suffer if its residents are not afforded employment preference in borough funded and administered capital improvement and public works construction projects.

L. After review of the special study, measuring the economic impact of nonresidents on Alaska’s economy during the 1984 calendar year, prepared by the State of Alaska, and specifically the data pertaining to Wrangell, the assembly finds support for its independent analysis and above findings.

M. The assembly has previously considered the preferential hire to Alaskans issue in August of 1985, and in 1983, and further finds that the need for local hire is greater now than previously. [Ord. 489 § 4, 1986.]

5.10.070 Local hire required on public improvement contracts.

Contracts for public improvements which are funded in whole or in part by local funds or by funds which, in accordance with a federal grant or otherwise, the borough expends or administers, and to which the borough is signatory, may include the requirement that 90 percent of the work shall be accomplished by bona fide local residents, if qualified and available. In the case of federal funds used on a public improvement, the federal program should be intended to encourage economic revitalization, including improvement opportunities for the poor and unemployed. [Ord. 489 § 5, 1986; Ord. 444 § 4, 1983.]