CHAPTER 10
PURCHASING

Sections:

2-10-101    Short Title.

2-10-102    Purchasing Agent.

2-10-103    Authority.

2-10-104    Requisition and Estimates.

2-10-105    Prohibition of Interest.

2-10-106    Gifts and Rebates.

2-10-107    Bid Processes.

2-10-108    Choice of Bid Process.

2-10-109    Exceptions to Bidding Requirements Set Forth in Section 2-10-108.

2-10-110    Small Purchases.

2-10-111    Emergency Purchases.

2-10-112    Special Rules and Procedures Required by State Law.

2-10-101 Short Title.

This Chapter shall be known and may be cited as the “Purchasing Ordinance of the City of Springville, Utah.”

(1979 Code 2-10-1; adopted by Ordinance No. 18-85; Ord. No. 16-2010, 11/02/2010)

2-10-102 Purchasing Agent.

There is hereby created the position of Purchasing Agent within the Finance Department. The duty of the Purchasing Agent shall be assigned by the City Administrator to a responsible employee of the City.

(1979 Code 2-10-2; adopted by Ordinance No. 18-85, amended by Ordinances No. 14-98 and 22-01; Ord. No. 16-2010, 11/02/2010)

2-10-103 Authority.

The Purchasing Agent shall have the power and it shall be his duty:

(1)    To purchase or contract, including signing such agreements after consultation with the City Attorney, for all supplies and contractual services needed by any City department in accordance with purchasing procedures as prescribed by this Chapter, and such rules and regulations as the Agent shall adopt, and such other rules and regulations as shall be prescribed by the Mayor and the City Council.

(a)    The authority of the Agent to negotiate all purchases for all City departments shall not be abridged by excepting any particular City department.

(b)    Except as provided in this Chapter, it shall be unlawful for any City officer or officers to order the purchase of any supplies or make any contract within the purview of this Chapter other than through the Purchasing Agent, and any purchase ordered or contract made contrary to the provisions hereof shall not be approved by the City officials, and the City shall not be bound thereby.

(2)    In addition to the purchasing authority conferred in subsection (1) of this section, and in addition to any other powers and duties conferred by this Chapter, the Agent shall:

(a)    Act to procure for the City the highest quality in supplies and contractual services at least expense to the City.

(b)    Discourage uniform bidding and endeavor to obtain as full and open competition as possible on all purchases and sales.

(c)    Prepare and maintain a Purchasing Policy Manual which shall include rules and regulations governing matters covered by this Chapter, including protests and appeals, and the preparation, maintenance, and content of specifications for supplies, services and construction required by the City.

(d)    Amend, when necessary, all rules and regulations authorized by this Chapter and any others necessary to its operation.

(e)    Keep informed of current developments in the field of purchasing, prices, market conditions and new products, and secure for the City the benefits of research done in the field of purchasing by other governmental jurisdictions, national technical societies, trade associations having national recognition, and by private businesses and organizations.

(f)    Prescribe and maintain such forms as he shall find reasonably necessary to the operation of this Chapter.

(g)    Prepare and adopt a standard purchasing nomenclature for City departments using agencies and suppliers.

(h)    Exploit the possibilities of “buying in bulk” so as to take full advantage of discounts.

(i)    Act so as to procure for the City all Federal and State tax exemptions to which it is entitled.

(j)    Cooperate with the Administrator so as to secure for the City the maximum efficiency in budgeting and accounting.

(k)    Have the authority to declare vendors who default on their quotations irresponsible bidders and to disqualify them from receiving any business from the municipality for a stated period of time.

(3)    It shall be the duty of the Purchasing Agent:

(a)    To classify all the supplies used by the various branches of the City government.

(b)    To adopt as standards the minimum number of qualities, sizes, and varieties of supplies consistent with the successful operation of the City government.

(c)    To prepare and adopt written specifications of all such standard supplies.

(d)    To exempt any City department of the City for use of the supply described in such standard specification.

(e)    To consult with the heads of City departments and other officials of using agencies to determine their precise requirements and shall endeavor to prescribe those standards which meet the needs of the majority of such agencies.

(f)    To ensure that all specifications are definite and certain and shall permit competition; provided, however, that the provisions of this subsection shall not apply to noncompetitive types and kinds of supplies.

(4)    Procurement Authority.

(a)    Springville City shall not enter into any contract or procure any material, supply or service that involves the commitment of Springville City funds unless the subject contract, material, supply or service:

(i)    Is funded in the current fiscal year budget; or

(ii)    Commits City funds in a total amount less than $25,000.00; or

(iii)    Has been approved by the Springville City Code or other ordinance or resolution of the City Council.

(b)    The City Administrator may delegate to the Purchasing Agent, department directors, or any other City employee, authority to purchase supplies, services or construction for the City as deemed appropriate and within his scope of procurement authority. These delegations shall be in writing and may be limited in scope, as the City Administrator directs.

(c)    Change orders in the amount of ten percent (10%) of the bid award amount up to $25,000.00 may be approved by the City Administrator or designee, as long as the overall project budget is not exceeded.

(1979 Code 2-10-3; adopted by Ordinances No. 18-85 and 22-01; Ord. No. 16-2010, 11/02/2010)

2-10-104 Requisition and Estimates.

All City departments and using agencies shall file with the Purchasing Agent detailed requisitions or estimates of their requirements in supplies and contractual services in such manner, at such times, and for such future periods as the Purchasing Agent shall prescribe. A City department or using agency shall not be prevented from filing, in the same manner, with the Purchasing Agent, at any time, a requisition or estimate for any supplies and contractual services, the need for which was not foreseen when the detailed estimates were filed. The Purchasing Agent shall examine each requisition or estimate for correctness, policy conformance and adherence to established budgets and shall have the authority to revise it as to quantity, quality, or estimated cost; but revision as to quality shall be in accordance with the standards and specifications established pursuant to this Chapter.

(1979 Code 2-10-4; adopted by Ordinances No. 18-85 and 22-01; Ord. No. 16-2010, 11/02/2010)

2-10-105 Prohibition of Interest.

Any purchase order or contract within the purview of this Chapter in which the Purchasing Agent or any officer or employee of the City is financially interested, directly or indirectly, shall be void, except that before the execution of a purchase order or contract, the City Council shall have the authority to waive compliance with this Section when it finds such action to be in the best interests of the City.

(1979 Code 2-10-5; adopted by Ordinance No. 18-85; Ord. No. 16-2010, 11/02/2010)

2-10-106 Gifts and Rebates.

The Purchasing Agent and every officer and employee of the City is subject to the Municipal Officers’ and Employees’ Ethics Act (Section 10-3-1301 et seq., Utah Code Annotated 1953, as amended).

(1979 Code 2-10-6; adopted by Ordinance No. 18-85; Ord. No. 16-2010, 11/02/2010)

2-10-107 Bid Processes.

Purchases for the City shall be made by the Purchasing Agent pursuant to one (1) of the bid processes outlined in this Section. Section 2-10-108 establishes when each of the bid processes described in this Section may be used. The City shall substantially comply with the following guidelines for the specific bid process used:

(1)    Competitive Sealed Bidding.

(a)    Description. Competitive sealed bidding is a procedure in which vendors or contractors are invited to submit formal bids to provide a designated product or to complete a designated project in accordance with specifications provided by the City.

(b)    Appropriateness. Competitive sealed bidding is generally appropriate for all types of procurements. When contractor quality is a prime concern in awarding a project bid, the City may pre-qualify bidders according to a policy established by the Purchasing Agent.

(c)    Notice Inviting Bids Issued. The City shall provide notice of its invitation for bids.

(i)    Notice includes a general description of the articles to be purchased or the work to be performed, the location where bid blanks and specifications may be secured, and the time and place for opening bids.

(ii)    Except as otherwise permitted or provided by this Chapter, the Purchasing Policy Manual, or other applicable law, notice of a call for bids shall be made public in a manner permitted by the Purchasing Policy Manual at a reasonable time prior to the time set for bid opening. The bid package shall state requirements to which the bidder must respond.

(d)    Bid Procedure.

(i)    Sealed bids (or electronically submitted bids) shall be submitted as designated in the notice with the statement “Bid for (item or project)” on the envelope (or in the electronic transmission).

(ii)    Bids shall be opened (or read, in the case of electronically submitted bids) in public at the time and place stated in the public notice.

(iii)    Bids submitted to the City shall be evaluated on the basis of compliance with specifications and other relevant criteria.

(e)    Bid Award.

(i)    Springville City may reject any or all bids submitted.

(A)    If Springville City rejects all bids submitted but still intends to undertake the purchase, Springville City shall again request bids by following the procedure provided in subsection (1)(d) of this section.

(B)    If, after twice requesting bids by following the procedure provided in subsection (1)(d) of this section, Springville City determines that no satisfactory bid has been submitted, the City Council may undertake the purchase as it considers appropriate.

(ii)    If the City elects to proceed with the purchase or project, bids shall be awarded to the lowest responsive responsible bidder. “Lowest responsive responsible bidder” means a vendor or contractor who:

(A)    Has submitted a bid in compliance with the invitation to bid and within the requirements of the plans and specifications;

(B)    Is the lowest bidder that satisfies Springville City’s criteria relating to financial strength, past performance, integrity, reliability, and other factors that Springville City uses to assess the ability of a bidder to perform fully and in good faith the contract requirements;

(C)    Has furnished a bid bond or equivalent in money as a condition to the award of a prime contract; and

(D)    Furnishes a payment and performance bond as required by law.

(2)    Requests for Proposals.

(a)    Description. Requests for proposals (RFPs) are invitations for suppliers or contractors to submit a proposal on a specific product or service. The City awards the contract for the product or service based on criteria set forth in the request for proposals.

(b)    Appropriateness. RFPs may be used when required by law, or when the Purchasing Agent determines that the use of formal competitive bidding is either impractical or not advantageous to the City. In making this determination, the Purchasing Agent shall consider factors such as:

(i)    Whether there may be a need for price and service negotiation;

(ii)    Whether there may be a need for negotiation during performance of the contract;

(iii)    Whether the relative skills or expertise of the offerors will have to be evaluated;

(iv)    Whether cost is secondary to the characteristics of the product or service sought, as in a work of art;

(v)    Whether the conditions of the service, product or delivery are unable to be sufficiently described in the invitation for bids;

(vi)    Whether the City is requesting the offeror to propose a method or strategy for completing the project; and

(vii)    Whether there may be a need to negotiate completion times related to the project.

If the City is requesting a price to complete an already designed project or to purchase a specific product(s), it will generally be more appropriate to use the competitive sealed bids procedure rather than the request for proposals procedure.

Professional services will generally be procured through the request for proposals procedure. Professional services include the following: accounting, auditing, architecture, banking, insurance, engineering, appraisal, legal, court reporter, medical, education, research, consulting, and other services where the professional qualifications of the contractor are of prime importance. Professional service contracts shall be awarded based on professional qualifications, experience, willingness and ability to meet the City’s specific service requirements, cost of service, and other criteria deemed important by the Purchasing Agent.

(c)    Notice.

(i)    Proposals shall be solicited through a request for proposals.

(ii)    Public notice of the request for proposals shall be given.

(d)    Request for Proposals. The request for proposals shall state the relative importance of price and other evaluating factors.

(e)    Opening of Proposals. Proposals shall be opened so as to avoid disclosure of contents to competing offerors during the process of negotiation. Nothing herein shall be interpreted to prohibit the City from allowing or accepting electronically submitted proposals.

(f)    Revision of Proposals.

(i)    As provided in the request for proposals, discussions may be conducted with responsible offerors who submit proposals determined to be reasonably susceptible of being selected for award for the purpose of assuring full understanding of, and responsiveness to, solicitation requirements.

(ii)    Offerors shall be accorded fair and equal treatment with respect to any opportunity for discussion and revision of proposals, and revision may be permitted after submissions and prior to award for the purpose of obtaining best and final offers.

(iii)    In conducting discussions, there shall be no disclosure of any information derived from proposals submitted by competing offerors.

(g)    Award.

(i)    Award shall be made to the responsible offeror whose proposal is determined to be the most advantageous to the City, taking into consideration price, the evaluation factors set forth in the request for proposals, and other criteria set forth herein.

(ii)    Springville City may reject any or all proposals submitted.

(A)    If Springville City rejects all proposals submitted but still intends to undertake the purchase, Springville City shall again request proposals by following the procedure provided in subsection (2)(c) of this section.

(B)    If, after twice requesting proposals by following the procedure provided in subsection (2)(c) of this section, Springville City determines that no satisfactory proposal has been submitted, the City Council may undertake the purchase or contract as it considers appropriate.

(C)    Open Market Procedure.

(1)    Price Quotations. Purchases shall, whenever possible, be based on at least three (3) bids (price quotations) and shall be awarded to the lowest responsible bidder.

(2)    Request for Quotations. Bids (price quotations) shall be solicited from prospective vendors by written or oral request.

(3)    Records. The person soliciting the price quotations shall keep a record of quotations solicited, including vendor names, date of solicitation and price quoted, and shall include this information with the purchase order.

(Ord. No. 16-2010, 11/02/2010)

2-10-108 Choice of Bid Process.

Except as otherwise provided in this Chapter or by provisions of State or Federal law, purchases of supplies or services shall follow one (1) of the bid processes outlined below for the appropriate dollar amount. The cost of the supply or service shall not be divided to avoid bid requirements. In cases where more than one (1) alternative is listed as acceptable for a given dollar amount, any of the listed alternatives shall be acceptable, and the City shall not incur any liability for choosing one (1) alternative over another.

(1)    Supplies and Contractual Services Having an Estimated Value in Excess of $25,000.00. Purchases of supplies or contractual services having an estimated value in excess of $25,000.00 shall be pursuant to one (1) of the following procedures:

(a)    Competitive sealed bidding.

(b)    Request for proposals. (If approved by the Purchasing Agent pursuant to Section 2-10-107(2)).

(2)    Supplies and Contractual Services Having an Estimated Value between $1,000.00 and $25,000.00. Purchases of supplies or contractual services having an estimated value of greater than $1,000.00 but less than or equal to $25,000.00 shall be pursuant to one (1) of the following procedures:

(a)    Formal competitive bidding.

(b)    Request for proposals.

(c)    Open market procedure.

(3)    Supplies and Contractual Services Having an Estimated Value of $1,000.00 or Less. Whenever the supplies or contractual services have an estimated value of $1,000.00 or less, the City need not follow any formal bid procedure, but shall seek to obtain the best price possible.

(Ord. No. 16-2010, 11/02/2010)

2-10-109 Exceptions to Bidding Requirements Set Forth in Section 2-10-108.

The bid process requirements set forth in Section 2-10-108 do not apply in the following situations:

(1)    Sole Source Procurements. Sole source procurement may be used only if the Purchasing Agent determines that a service, product, or requirement is reasonably available only from a single supplier or contractor. Examples of circumstances which may necessitate sole source procurement are:

(a)    If there is only one (1) vendor or supplier who can provide the needed product or service;

(b)    If the compatibility of supplies, accessories, replacement parts, or service is the paramount consideration;

(c)    If a sole supplier’s product is needed for trial use or testing;

(d)    If the City is procuring utility services;

(e)    If the City seeks to add to, repair or maintain supplies owned by the City which may be more efficiently added to, repaired or maintained by a particular person or firm; and

(f)    If the City seeks supplies which, by reason of the training of City personnel or the inventory of replacement parts maintained by the City, are more compatible with the existing supplies owned by the City and if the supplies can only be acquired from a sole source.

The justification for sole source procurement shall be included in the procurement documentation. The Purchasing Agent may establish policies governing the negotiation of sole source procurements.

(2)    Library Purchases. The purchase of library books, records, tapes, films, publications, periodicals, and subscriptions are specifically exempted from competitive bidding requirements, but the City shall make a good faith effort to obtain the best price possible for these purchases as determined by the Purchasing Agent.

(3)    Auction, Closeout, Bankruptcy Sales. If the Purchasing Agent determines that supplies can be purchased at any public auction, closeout sale, bankruptcy sale or other similar sale, and if the Purchasing Agent finds that a purchase at any such auction or sale will be made at a cost below the market cost in the community, a contract or contracts may be let, or the purchase made, without complying with the competitive bidding requirements of this Chapter.

(4)    Exchanges. Exchanges of supplies between the City and any other public agency which are not by sale or auction shall be by mutual agreement of the respective public agencies.

(5)    Projects Performed by City Employees. City employees may be used to complete City projects; provided, that the City complies with State statutory requirements governing contracts for municipal public improvements.

(6)    State Contract. The City may purchase supplies from the vendor who has submitted the lowest bid price for such items to the State of Utah Purchasing Office (or any agency of the Federal government) at the quoted price, without any solicitation or price quotation or invitation to bid. For such purposes, the quoted price shall be deemed to be the lowest price available for such items and the City need not follow any other bidding requirements.

(7)    Utah Correctional Industries Division. Goods and services produced by the Utah Correctional Industries Division may be purchased from the Utah Correctional Industries Division without following any of the bidding requirements set forth herein.

(8)    Unsuccessful Competitive Sealed Bidding. If the bids received in response to a competitive sealed bid process are unreasonable, noncompetitive, or in excess of available funds, and if the City Administrator determines that time or other circumstances will not permit the delay required to resolicit competitive sealed bids, the City may procure the needed goods or services using the emergency procurement procedure.

(9)    Internet Auction Sites. The City may acquire supplies from Internet auction sites without following formal purchasing procedures if the City Administrator determines that there is an established market price for the supplies and that the supplies can be acquired less expensively from an Internet auction site.

(10)    Used Supplies. The City may acquire used supplies without following formal purchasing procedures if the City Administrator determines that there is an established market price for the used supplies and that it is beneficial for the City to acquire the used supplies.

(11)    Ongoing Construction Work. If a contractor has been hired to work in a given area by a person or entity other than the City, and if the City has work that needs to be completed in the area, and if the City Administrator determines that there is an established price for the type of work that the City needs completed and that the City can save on mobilization costs by hiring the contractor that is already in the area, then the City may negotiate with and contract directly with the contractor without following formal purchasing processes.

(12)    Purchases by Other Governmental Entities. If another governmental entity has, after a competitive process, awarded a bid to purchase supplies from a particular vendor within the preceding one hundred eighty (180) days, the quoted price may be deemed to be the lowest price available for such items and the City need not follow formal purchasing procedures. Any such purchase must be approved by the City Administrator on a case by case basis.

(13)    Federal or State Money. In cases where Federal or State money is being used, or in cases where Federal or State procurement laws or procedures govern the types of goods or services being procured, the City shall follow the applicable Federal or State procurement laws or procedures in lieu of the procedures set forth in this Chapter.

(14)    Donated Funds. In cases where a donor or grantor has contributed funds to the City, the City may expend the funds in the manner designated by the donor or grantor in lieu of the procedures set forth in this Chapter.

(Ord. No. 16-2010, 11/02/2010)

2-10-110 Small Purchases.

The Purchasing Policy Manual shall establish rules for small purchases in various areas of purchasing procurement. The Purchasing Policy Manual shall prescribe minimal and expeditious rules and processes to control and account for such purchases

(Ord. No. 16-2010, 11/02/2010)

2-10-111 Emergency Purchases.

(1)    In case of an apparent emergency which requires immediate purchase of supplies or contractual services, the Mayor, or the City Administrator if the Mayor is unavailable, shall be empowered to authorize the Purchasing Agent to secure by open-market procedure as herein set forth, at the lowest obtainable price, any supplies or contractual services regardless of the amount of the expenditure. A full report of the circumstances of an emergency purchase shall be filed by the Purchasing Agent with the City Council, and shall be entered in the minutes of the Council and shall be open to public inspection.

(2)    In case of actual emergency, and with approval of the Mayor, or the City Administrator if the Mayor is unavailable, the head of any City department may purchase directly any supplies whose immediate procurement is essential to prevent delays in the work of the department which may vitally affect the life, health or convenience of citizens. The head of such department shall send to the Purchasing Agent a requisition and a copy of the delivery record together with a full written report of the circumstances of the emergency. The report shall be filed with the Council as provided in subsection (1) of this section.

(1979 Code 2-10-10; adopted by Ordinance No. 18-85, renumbered by Ordinance No. 26-99; amended by Ordinance No. 22-01; Ord. No. 16-2010, 11/02/2010)

2-10-112 Special Rules and Procedures Required by State Law.

State law (Section 11-39-101 et seq., Utah Code Annotated 1953, as amended) requires the City to follow specific bid procedures for specified types of supplies and services. Except where Springville Municipal Code is more restrictive, the City shall comply with State law.

(Ord. No. 16-2010, 11/02/2010)