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 Competitive Bidding Required.
2-10-108 Formal Contract Procedure.
2-10-109 Hiring of Professional Architect, Engineer or Surveyor.
2-10-110 Open-Market Procedure.
2-10-111 Emergency Purchases.
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)
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)
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 herein provided, 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) above, 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) establish and amend, when necessary, all rules and regulations authorized by this Chapter and any others necessary to its operation.
(d) 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.
(e) prescribe and maintain such forms as he shall find reasonably necessary to the operation of this Chapter.
(f) prepare and adopt a standard purchasing nomenclature for City departments using agencies and suppliers.
(g) prepare, adopt and maintain a vendors’ catalog file. Said catalog shall be filed according to materials and shall contain descriptions of vendors’ commodities, prices, and discounts.
(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) the Purchasing Agent shall 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) all specifications shall be definite and certain and shall permit competition, provided, however, that the provisions of this paragraph shall not apply to non-competitive types and kinds of supplies.
(1979 Code 2-10-3; adopted by Ordinances No. 18-85 and 22-01)
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)
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)
2-10-106 Gifts and Rebates.
The Purchasing Agent and every officer and employee of the City is expressly prohibited from accepting, directly or indirectly, from any person, company, firm or corporation to which any purchase order or contract is, or might be awarded, any rebate, gift, money, or anything of value whatsoever, except where given for the use and benefit of the City.
(1979 Code 2-10-6; adopted by Ordinance No. 18-85)
2-10-107 Competitive Bidding Required.
All purchases of, and contracts for, supplies and contractual services, except as specifically provided herein, shall be based wherever possible on competitive bids.
(1979 Code 2-10-7; adopted by Ordinance No. 18-85)
2-10-108 Formal Contract Procedure.
(1) When the estimated cost of a building improvement to be contracted exceeds $40,000.00 or when the estimated cost of a public works project to be contracted exceeds $125,000.00, it shall be purchased by formal, written contract from the lowest responsible bidder, after due notice inviting proposals.
(2) Notice inviting bids shall be published at least twice in at least one newspaper of general circulation in the City at least five (5) days preceding the last day set for the receipt of proposals. The newspaper notice required herein shall include a general description of the articles or services to be purchased, shall state where bid blanks and specifications may be secured and the time and place for opening bids. The notice inviting bids shall also be published in such other publications as the Purchasing Agent shall determine to be necessary to obtain adequate proposals from bidders.
(3) The Purchasing Agent shall also solicit sealed bids from all responsible prospective suppliers who have requested their names to be added to a “Bidders’ List” which the Purchasing Agent shall maintain, by sending them a copy of such newspaper notice or such other notice as will acquaint them with the proposed purchase or sale. In any case, invitations sent to the vendors on the bidders’ list shall be limited to commodities or services that are similar in character and ordinarily handled by the trade group to which the invitations are sent.
(4) The Purchasing Agent shall also advertise all pending purchases by a notice posted on the public bulletin board in the Civic Center.
(5) When required by law, and when otherwise deemed necessary by the Purchasing Agent, bid deposits shall be prescribed in the public notices inviting bids. Unsuccessful bidders shall be entitled to return of surety where the Purchasing Agent has required such. A successful bidder shall forfeit any surety required upon failure on his part to enter a contract within ten (10) days after the award.
(6) Bids shall be submitted, sealed, to the Purchasing Agent or designee and shall be identified as bids, on the envelope. Bids shall be opened in public at the time and place stated in the public notice. A tabulation of all bids received shall be posted for public inspection.
(7) The Purchasing Agent shall have the authority to reject all bids, or parts of bids, when the public interest will be served thereby.
(8) The Purchasing Agent shall have authority to award and sign contracts within the purview of this Chapter; after specific approval of that award by the City Council.
(9) Contracts shall be awarded to the lowest responsible bidder. In determining “lowest responsible bidder,” in addition to price, the Purchasing Agent shall consider:
(a) the ability, capacity and skill of the bidder to perform the contract or provide the service required;
(b) whether the bidder can perform the contract or provide the service promptly, or within the time specified, without delay or interference;
(c) the character, integrity, reputation, judgment, experience and efficiency of the bidder;
(d) the quality of performance of previous contracts or services;
(e) the previous and existing compliance by the bidder with laws and ordinances relating to the contract or service;
(f) the sufficiency of the financial resources and ability of the bidder to perform the contract or provide the service;
(g) the quality, availability and adaptability of the supplies or contractual services, to the particular use required;
(h) the ability of the bidder to provide future maintenance and service for the use of the subject of the contract;
(i) the number and scope of conditions attached to the bid.
(10) When the award is not given to the lowest bidder, a full and complete statement of the reasons for placing the order elsewhere shall be prepared by the agent and filed with the other papers relating to the transaction.
(11) If all bids received are for the same total amount or unit price, quality and service being equal, the contract shall be awarded to a local bidder. Where the preceding sentence does not apply, the Purchasing Agent shall award the contract to one of the bidders by drawing lots in public.
(12) The Purchasing Agent shall require a performance and payment bond, when required by law and when otherwise deemed necessary by the Purchasing Agent before entering a contract, in such amount as required by law or such larger amount as he shall find reasonably necessary to protect the best interests of the City.
(13) No contract or purchase shall be subdivided to avoid the requirements of this Section.
(Statutory Authority UCA 10-7-20; 1979 Code 2-10-8; adopted by Ordinance No. 18-85; amended in codification, amended by Ordinances No. 14-98, 22-01 and 24-05.)
2-10-109 Hiring of Professional Architect, Engineer or Surveyor.
When the City Council engages the services of a professional architect, engineer, surveyor or other professional and considers more than one such professional for engagement, the Council shall:
(1) Consider as a minimum in the selection process:
(a) the qualifications, experience, and background of each firm submitting a proposal;
(b) the specific individuals assigned to the project and the time commitments of each to the project; and
(c) the project schedule and the approach to the project that the City will take.
(2) The City may engage the services of a professional architect, engineer, or surveyor based on the criteria under subsection (a) rather than solely on lowest cost.
(Adopted by Ordinances No. 26-99 and 22-01)
2-10-110 Open-Market Procedure.
(1) All open-market purchases shall, wherever possible, be based on at least three (3) competitive bids and shall be awarded to the lowest responsible bidder in accordance with the standards set forth in subsection 2-10-108(9). Where bidding is not possible or feasible, purchases shall be made in accordance with City policy and prudent fiscal management to ensure that the City spends all funds wisely. The Purchasing Agent may solicit bids by direct mail request to prospective vendors, by telephone or by public notice posted on the bulletin board of the Civic Center, as the Purchasing Agent deems in the best interest of the City.
(2) A division superintendent or Department Head may make any purchase in an amount of less than $500.00 without prior approval of the Purchasing Agent if such purchase is made pursuant to rules and procedures approved by the Purchasing Agent and the City Council.
(3) A Director may make a requisition and purchase in an amount of less than $1,000.00 without prior approval of the Purchasing Agent, if such purchase is made pursuant to rules and procedures approved by the Purchasing Agent and the City Council.
(4) A Director may make a requisition and purchase in an amount of less than $10,000.00 with prior approval of the Purchasing Agent, if such purchase is made pursuant to rules and procedures approved by the Purchasing Agent and the City Council.
(5) The City Administrator may make a requisition and purchase in an amount of less than $25.000.00 with prior approval of the Purchasing Agent, if such purchase is made pursuant to rules and procedures approved by the Purchasing Agent and the City Council.
(6) All expenditures in excess of $25,000.00 shall be brought to the Council for approval prior to expenditure of funds, except as set forth herein.
(1979 Code 2-10-9; adopted by Ordinance No. 18-85; amended in codification, amended by Ordinance No 14-98, renumbered by Ordinance No. 26-99; amended by Ordinance No. 22-01; amended by Ordinance No 40-2006, 12/19/2006)
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) above.
(1979 Code 2-10-10; adopted by Ordinance No. 18-85, renumbered by Ordinance No. 26-99; amended by Ordinance No. 22-01)