Chapter 4.16
PURCHASING
Sections:
4.16.010 Purchase orders.
4.16.020 Centralized purchasing.
4.16.030 Purchase limits.
4.16.040 Contract award procedure.
4.16.050 Revenue bonds.
4.16.010 Purchase orders.
A. All debts assumed by the city and authorized for payment by the city council and city administrator must be accompanied by a purchase order.
B. All purchase orders must be signed by the mayor, city administrator and/or department head to make them valid.
C. The purchase order system for authorizing the payment of bills is to be retroactive to the first day of July, 1975. (Ord. 99-6 §3, 1999; Res. 75 10, 1976)
4.16.020 Centralized purchasing.
A. All purchasing on behalf of the city shall be authorized on approved purchase order forms. The mayor shall designate those personnel authorized to execute purchase order forms.
B. Cost consciousness shall be maintained. Purchase orders shall not be authorized by the signatory without comparing for competitive prices. (Ord. 84 3(§2 10), 1984)
4.16.030 Purchase Limits.
A. The limit of purchase of an article of personal property, supplies, services or construction items without prior mayoral approval shall be one thousand dollars. The limit of purchase of an article of personal property, supplies, services or construction items without prior city council approval shall be $7,500 (seven thousand five hundred dollars). A review of available sources and quotations to ascertain the most cost effective means will be conducted prior to the purchase. In the event of an emergency, the mayor shall be authorized to purchase personal property exceeding the maximum dollar limit; providing, such purchase shall not be subject to Section 12.3(c) of the Home Rule Charter. "Emergency" shall be defined in accordance with Section 1.6(q) of the Home Rule Charter. Emergency as defined in the Charter 1.6(q) means a situation in which there exists a necessity to preserve public peace, health or safety. A record of each emergency procurement shall be made listing the business name and items or services purchased.
B. The limit of purchase of personal property, supplies, services or construction items with the approval of the city council shall be limited to $20,000 (twenty thousand dollars). When practical, no less than three (3) businesses shall be solicited to submit quotations. Award shall be made to the business offering the lowest acceptable quotation. The name of the business submitting the quotation and the date and amount of each quotation shall be recorded and maintained as a public record. Purchases of personal property exceeding this amount shall be subject to Section 12.3(c) of the Home Rule Charter. In the event of an emergency,or seasonal construction deadlines or other deadlines that place financial hardships on the city, the city council may waive the requirements of Section 12.3(c). "Emergency" shall be defined in accordance with Section 1.6(q) of the Home Rule Charter. (Ord. 99-13 §2(part), 1999: Ord. 84 3(§2 11), 1984)
4.16.040 Competitive Sealed Bidding.
A. Competitive Sealed Bidding.
1. All items purchased by the city in excess of $20,000 (twenty thousand dollars) shall be awarded by competitive sealed bidding. (Ord. 00-15 §2, 2000)
2. An invitation for bids shall be issued and shall include specifications, and all contractual terms and conditions applicable to the procurement.
3. Adequate public notice of the invitation for bids shall be given a reasonable time prior to the date set forth therein for the opening of bids which shall provide for a minimum of at least fifteen calendar days. Such notice may include publication in a newspaper of general circulation a reasonable time prior to bid opening. The public notice shall state the date and time of the bid opening.
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, together with the name of each bidder shall be recorded; the record and each bid shall be opened to public inspection.
5. All bid awards shall be made by the city council. Written notice shall be sent to the selected bidder who meets the criteria and requirements as outlined in the invitation for bids.
6. Correction or withdrawal of inadvertently erroneous bids before or after bid opening or cancellation of awards or contracts based on such bid mistakes, may be permitted where appropriate. Mistakes discovered before bid opening may be modified or withdrawn by written or telegraphic notice received in the office designated in the invitation for bids prior to the time set for bid opening. After bid opening, corrections in bids shall be permitted only to the extent that the bidder can show by clear and convincing evidence that mistake was made, the nature of the mistake and the bid price actually intended. However, downward correction of a bid, which would displace the apparent low bidder shall only be permitted if the error made and the intended bid price can be determined solely from the bid documents. Upward correction of a bid, established from the bid documents or other evidence, shall be permitted only if the corrected bid is not within two percent (2%) of the next low responsive bid. All decision to permit the correction or withdrawal of bids, or to cancel awards of contracts based on bid mistakes, shall be supported by a written determination made by the city.
7. The contract shall be awarded with responsible promptness by written notice to the lowest responsible and responsive bidder whose bid meets the requirement and criteria set forth in the invitation for bids. In the event all bids for a construction project exceed available funds and the low responsive and responsible bid does not exceed such funds by more than five percent (5%), the city is authorized when time or economic considerations preclude re-solicitation or work of a reduced scope, to negotiate an adjustment of the bid price with the low responsive and responsible bidder. (Ord. 99-13, §2, (part), 1999)
B. Competitive Sealed Proposals.
1. When the city council determines that the use of competitive sealed bidding is either not practicable or not advantageous to the city, a contract may be entered into by use of the competitive sealed proposals method.
2. Proposals shall be solicited through a request for proposals.
3. Adequate public notice of the request for proposals shall be given including publication in a newspaper of general circulation at least fifteen days prior to the deadline for proposals.
4. No proposals shall be handled so as to permit disclosure of the identity of any offeror or the contents of any proposal to competing offers during the process of negotiation. The proposals shall be open for public inspection only after contract award by the city council.
5. The request for proposals shall state the relative importance of price and other evaluation factors.
6. Award shall be made to the responsible offeror whose proposal is determined in writing 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.
C. Cancellation of Invitations for Bids or Requests for Proposals. An invitation for bids, a request for proposals or other solicitation may be cancelled, 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 for good cause and in the contract file. Each solicitation issued by the city shall state that the whole or part may be rejected for good cause when in the best interest of the city. Notice of cancellation shall be sent to all businesses solicited. The notice shall identify the solicitation, explain the reasons for cancellation and, where appropriate, explain that an opportunity will be given to compete on any resolicitation or any future procurement of similar items.
D. If a bidder or offeror who otherwise would have awarded a contract is found nonresponsible, a written determination of nonresponsibility setting forth the basis of the finding shall be prepared by the city. 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 such bidder or offeror. A copy of the determination shall be sent promptly to the nonresponsible bidder or offeror. The final determination shall be made part of the contract file and be made a public record. (Ord. 05-05 §2 (part), 2005);(Ord. 99-13 §2(part), 1999; Ord. 87 2 §2, 1987; Ord. 84 3(§2 12), 1984)
4.16.050 Revenue bonds.
Upon securing a revenue bond, the city of North Pole shall establish by budget a revenue bond reserve payment account. Each year, an appropriation equal to ten percent (10%) of the annual payment of the bond shall be added to the account until such time as the account balance totals the equivalent of one annual bond payment. Every proposed city budget shall include any unencumbered bond reserve appropriation of the previous year until such bond is repaid. The revenue bond reserve payment account may only be used for bond repayment in an emergency as defined in the city charter, or as the final payment on the bond it is appropriated for. (Ord. 98-24 §2, 1998)