Chapter 3.20
EAGLE MOUNTAIN PURCHASING POLICY
Sections:
3.20.040 Purchasing authority.
3.20.050 Minor, small and medium purchases.
3.20.090 Bid award and rejection.
3.20.100 Prequalification and disqualification of bidders.
3.20.130 Cost-plus-a-percentage-of-cost profit contracts prohibited.
3.20.140 Required contract clauses.
3.20.010 Purpose.
A. The purpose of this chapter is:
1. To ensure that purchases and services contracted for the city are in the best interest of the public.
2. To ensure fair and equitable treatment of all persons who wish to or do conduct business with the city.
3. Achieve economy and efficiency in city procurement activities.
4. To ensure transparency in the public procurement process.
5. To foster effective broad-based competition within the free enterprise system while balancing responsiveness to quality, price, and timelines.
6. To provide a systematic and uniform method of purchasing goods and services for the city.
B. Nothing in this chapter shall create any right, interest, or cause of action against the city, its officers, agents, or employees. Any failure to follow the procedures set out herein shall not invalidate a particular purchase or procurement unless otherwise provided by law. [Ord. O-47-2023 § 2 (Exh. A)].
3.20.020 Definitions.
Unless the context requires otherwise, the terms used in this chapter shall have the following meanings:
A. “Business” means any corporation, partnership, individual, sole proprietorship, joint stock company, joint venture, or any other private legal entity.
B. “Change order” means a written order signed by the city manager/designee, directing the contractor to suspend work or make changes, which the appropriate clauses of the contract authorize the city manager/designee to order without the consent of the contractor or any written alteration in specifications, delivery point, rate of delivery, period of performance, price, quantity, or other provisions of any contract accomplished by mutual action of the parties to the contract.
C. “City” means Eagle Mountain City and all other reporting entities controlled by or financially dependent upon the city council.
D. “City manager” means the city manager of Eagle Mountain City or an agent of the city manager designated to perform the functions of the city manager described in this chapter.
E. “Contract” means a written agreement for procurement for the delivery or disposal of supplies, services, equipment, or construction.
F. Designee. The deputy city manager, assistant city manager or a department head may be authorized as designees to perform certain assigned duties as directed and assigned by the city manager.
G. “Invitation for bids” means solicitation of competitive sealed bids for procurement of professional and nonprofessional services, equipment, and supplies. Including all documents, whether attached or incorporated by reference, used for soliciting bids. An invitation for bids should be used as determined by the city when the city is capable of specifically defining the scope of work for which the services, supplies, and equipment are required, or when the city is capable of establishing precise specifications defining the actual commodity or group of commodities required.
H. “Lowest responsive responsible bidder” means the lowest bidder who has substantially complied with all prescribed requirements, has submitted the bid in good faith, has a history of fully performing work at the bid price, has demonstrated a history of quality performance of previous services, has proven the ability to provide future maintenance and service, and has not been disqualified as set forth herein.
I. “Person” means any business, individual, union, committee, club, other organization, or group of individuals.
J. “Procurement” means buying, purchasing, renting, leasing, leasing with an option to purchase, or otherwise acquiring any supplies, services, equipment, or construction.
K. “Professional services contract” means a contract for services performed by an independent contractor in a professional capacity who produces a service predominantly of an intangible nature that requires specialized knowledge, expertise, and discretion. These services include, but are not limited to, 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.
L. “Public utilities equipment and supplies” means equipment and materials purchased by the public works department that are used in the regular course of supplying public utilities. “Public utilities equipment and supplies” does not include any purchase that includes, in whole or in part, labor (not including freight or delivery), services, vehicles or machinery.
M. “Purchase” means the acquisition of goods acquired by contract, purchase order, check request, credit card, or service request for nonprofessional services, professional services, building improvements, equipment, and supplies in a single transaction such that payment is made prior to receiving or upon receipt of the goods or services.
N. “Purchasing limits” means the respective values stated within each purchasing limit for minor purchases, small purchases, medium purchases, and large purchases.
O. “Request for proposals” means solicitation of competitive sealed proposals for procurement of professional and nonprofessional services, equipment, and supplies. This includes all documents, whether attached or incorporated by reference, used for soliciting proposals. The request for proposals should be used when there may be a need for price and service negotiations, there may be a need for negotiations during the performance of a contract, whether the relative skill and expertise of the offeror needs to be evaluated, whether costs are secondary to the characteristics of the product or nonprofessional service sought, and whether the conditions of the service, product or delivery conditions are unable to be sufficiently described in the invitation for bids.
P. “Sealed bids” means written proposals from persons or entities offering to contract with or to sell to the city which are received sealed and to be opened after the deadline for receipt of bids as defined in an invitation to bid.
Q. “Sole source” means goods or service for which there is only one source for the procurement item. Circumstances under which there is only one source of a procurement item may include:
1. Where the most important consideration in obtaining a procurement item is the compatibility of equipment, technology, software, accessories, replacement parts, or service;
2. Where a procurement item is needed for trial use or testing;
3. Where transitional costs are unreasonable or cost prohibitive; or
4. Where reasonably equivalent goods or services are not available from any other source. [Ord. O-21-2024 § 2 (Exh. A); Ord. O-47-2023 § 2 (Exh. A)].
3.20.030 General policy.
A. All city purchases and contracts for goods and services shall be subject to this chapter unless specifically exempted.
B. No contract or purchase shall be so arranged, fragmented, or divided with the purpose or intent to circumvent this chapter.
C. Reasonable attempts shall be made to publicize anticipated purchases or contracts to known vendors, contractors, and suppliers.
D. When it is advantageous to the city, annual contracts for services and supplies regularly purchased should be approved.
E. All contracts for services shall be approved as to form by the city attorney.
F. The city manager/designee may recommend to the city council additional policies and controls for adoption which are consistent with the approval mechanism set forth in this chapter.
G. Conflicts of Interest. It is unlawful for any elected official, officer, or employee to actively participate in the awarding of a contract from which he/she will directly benefit or derive any income from any business entity, without fully disclosing any interest he/she has therein and/or to violate state or federal law concerning conflict of interest.
H. Change Orders.
1. The completion and issuance of a change order or execution of a contract amendment shall be required if any alteration to, amendment of, or deviation from an awarded purchase order or contract as to scope, cost, time for completion, material, equipment, or services furnished as part of the purchase order or contract, or any alteration to, amendment of, or deviation from the nature of work to be performed.
2. Change orders shall not be issued as a means to add or complete an additional project or a portion of another project outside of the originally defined project or scope of work defined in the proposal, bid or contract unless approved by city council.
3. A city department head is authorized to approve change orders to a contract when the total amount of all such change orders is not exceeded by more than the lesser of 10 percent of the contract price or $25,000, provided the overall project budget is not exceeded, and city council is notified of the change order.
4. The city manager is authorized to approve change orders to a contract when the total amount of all such change orders is not exceeded by more than the lesser of 10 percent of the contract price or $75,000, provided the overall projected budget is not exceeded, and city council is notified of the change order.
5. The city council must approve change orders to a contract when the total amount of all such change orders exceeds more than the lesser of 10 percent of the contract price or $75,000, provided the overall projected budget is not exceeded; however, a budget amendment may be approved by the city council to allow for an increase in the budget.
6. The city manager/designee may require a change order of any amount and from any department to come before the city council for approval.
I. Contingency. Upon city council approval, a contingency amount determined by city council may be added to the bid award amount to cover unknown conditions, errors, and omissions. [Ord. O-21-2024 § 2 (Exh. A); Ord. O-47-2023 § 2 (Exh. A)].
3.20.040 Purchasing authority.
The purchasing agent shall administer the purchasing system provided by this chapter and shall function as the chief procurement officer for the city, perform the duties concerning purchasing and be responsible for the following:
A. Ensure that all purchases for services comply with this chapter.
B. Negotiate and recommend execution of contracts for the purchase of supplies, equipment, and contractual services.
C. Review and approve purchases of the city.
D. Seek to obtain as full and open competition as possible on all purchases.
E. Establish necessary additional procedures for the efficient and economical management of the contracting and purchasing functions authorized by this chapter. Such procedures shall be in writing and on file in the city recorder’s office as a public record.
F. Maintain accurate and sufficient records concerning all city purchases and contracts for services.
G. Maintain a bidders list, vendors catalog file, or other records needed for the efficient operation of the purchasing procedures, including vendors who have made themselves known to the city and are interested in soliciting city business.
H. Purchasing preferences may be given to businesses within Eagle Mountain City if they are responsive responsible vendors, offer a fair price, and satisfy all requirements of the purchase.
I. Recommend to the city and city council new or revised purchasing requirements as are deemed desirable and in conformance with other statutory requirements concerning amendments to this chapter.
J. In the absence of the city manager, the deputy city manager shall be authorized to fulfill the duties of the city manager with respect to any contract, purchase or payment that requires immediate action or execution. In the absence of both the city manager and the deputy city manager, the assistant city manager shall be authorized to fulfill those duties. The deputy city manager or assistant city manager as the case may be shall promptly notify the city manager of any actions taken in his or her absence. [Ord. O-21-2024 § 2 (Exh. A); Ord. O-47-2023 § 2 (Exh. A)].
3.20.050 Minor, small and medium purchases.
The following guidelines and approvals are required for all purchases unless otherwise exempted in this chapter:
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Minor purchases: |
$5,000 or less |
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Small purchases: |
$5,000.01 – $15,000 |
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Medium purchases: |
$15,000.01 – $75,000 |
A. Minor Purchases. Any minor purchase in the total amount of $5,000 or less may be made or approved by:
1. An employee authorized by their department head.
2. Minor purchases shall not require bids or quotes of any type but are subject to the general purchasing policy indicated in EMMC 3.20.030.
3. No purchase shall be contracted for, or made, unless funds sufficient to cover the purchase have been budgeted, appropriated by the city council, and are available within the department’s approved budget for the years in which the funds are to be expended.
4. Approval of a budget by the city council that includes amounts for the acquisition of nonprofessional services, professional services, building improvements, equipment, and supplies includes authorization to approve a contract for such services, improvements, equipment and supplies and authorization to make payment to the contractor or vendor in the amount budgeted, provided the services and supplies are acquired as set forth in this section and do not exceed budgeted amounts.
B. Small Purchases. Any small purchase in the total amount equal to or more than $5,000.01 but less than $15,000 must be made or approved by:
1. The department head; or
2. The city manager/designee.
3. Small purchases shall require three informal documented electronic, verbal, or written price quotes unless specifically exempt from the competitive bidding requirements of this chapter.
4. The city manager/designee may approve a purchase or expenditure without the required price quotes if the city manager/designee determines that there are not three additional vendors or suppliers of such items.
5. No purchase shall be contracted for, or made, unless funds sufficient to cover the purchase have been budgeted, appropriated by the city council, and are available within the department’s approved budget in the years in which the funds are to be expended.
6. Approval of a budget by the city council that includes amounts for the acquisition of nonprofessional services, professional services, building improvements, equipment, and supplies includes authorization to approve a contract for such services, equipment and supplies and authorization to make payment to the contractor or vendor in the amount budgeted, provided the services and supplies are acquired as set forth in this section and do not exceed budgeted amounts.
C. Medium Purchases. Any medium purchase in the total amount equal to or more than $15,000.01 but less than $75,000 must be made or approved by:
1. Both the department head and the city manager/designee.
2. Medium purchases shall require a minimum of three formal documented written price quotes unless specifically exempt from the competitive bidding requirements of this chapter.
3. The city manager/designee may approve a purchase or expenditure without the required price quotes if the city manager/designee determines that there are not three additional vendors or suppliers of such items.
4. No purchases shall be contracted for, or made, unless funds sufficient to cover the purchase have been budgeted, appropriated by the city council, and are available within the department’s approved budget in the years in which the funds are to be expended.
5. Approval of a budget by the city council that includes amounts for the acquisition of nonprofessional services, professional services not listed below, building improvements, equipment, and supplies includes authorization to approve a contract for such services, equipment and supplies and authorization to make payment to the contractor or vendor in the amount budgeted, provided the services and supplies are acquired as set forth in this section and do not exceed budgeted amounts. The following professional services must be approved by the city council: auditing, attorneys, architectural services for city facilities, branding, government relations, and consulting services for the development of master plans and the general plan.
6. Purchases involving any type of service provided by the vendor for infrastructure improvement on city property shall require a contract and/or other documentation to be signed and filed prior to the work being performed.
D. Utility Purchases. Any purchase for public utilities equipment and supplies in the total amount of more than $15,000.01 but less than $125,000 shall be made or approved by the department head and city manager/designee and shall require a minimum of three formal documented written price quotes unless specifically exempt from the competitive bidding requirements of this chapter.
E. Construction Projects. Any purchase for an individual construction project for direct construction costs, including design and allowable furniture or equipment costs, in the total amount of more than $15,000.01 but less than $125,000 shall be made or approved by the department head and city manager/designee and shall require a minimum of three formal documented written price quotes unless specifically exempt from the competitive bidding requirements of this chapter.
F. For purposes of determining the estimated total price of a contract for nonprofessional services, equipment, or supplies, that would commonly be considered a single purchase shall not be subdivided into component parts to avoid authorization limits. [Ord. O-21-2024 § 2 (Exh. A); Ord. O-47-2023 § 2 (Exh. A)].
3.20.060 Large purchases.
The following guidelines and approvals are required for all large purchases unless otherwise exempted in this chapter:
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Large purchases: |
Equal to or more than $75,000.01 |
A. Large Purchases. Any large purchase in the total amount equal to or more than $75,000.01 must be purchased and approved through a sealed bid process:
1. Large purchases shall require an invitation to bid or a request for proposal issued prior to acquisition unless specifically exempt from the competitive bidding requirements of this chapter.
2. Bid specifications for public contracts shall not expressly or implicitly require any product by any brand name or make, nor the product of any particular manufacturer.
3. No purchase shall be solicited for, contracted for, or made, unless funds sufficient to cover the purchase have been budgeted, appropriated by the city council, and are available within the department’s approved budget in the years in which the funds are to be expended.
4. Approval of a budget by the city council that includes amounts for the acquisition of nonprofessional services, professional services not listed below, equipment, and supplies includes authorization to approve a contract for such services, equipment and supplies and authorization to make payment to the contractor or vendor in the amount budgeted, provided the services and supplies are acquired as set forth in this section and do not exceed budgeted amounts. The following professional services must be approved by the city council: auditing, attorneys, architectural services for city facilities, branding, government relations, and consulting services for the development of master plans and the general plan.
5. Any contract obtained through the formal bidding process that exceeds the budgeted amount of the project must obtain city council approval.
6. Purchases involving any type of service provided by a vendor for infrastructure improvement on city property shall require a contract and/or other documentation to be signed and filed prior to the work being performed.
B. Utility Purchases. Any purchase for public utilities equipment and supplies in the total amount equal to or more than $125,000.01, must be solicited by an invitation for bid or a request for proposal prior to acquisition and are subject to large purchase requirements unless specifically exempt from the competitive bidding requirements of this chapter.
C. Construction Projects. Any purchase for individual construction projects in the total amount equal to or more than $125,000.01, must be solicited by an invitation for bids or a request for proposals prior to acquisition and are subject to large purchase requirements unless specifically exempt from the competitive bidding requirements of this chapter. [Ord. O-47-2023 § 2 (Exh. A)].
3.20.070 Exemptions.
The following transactions are exempt from the competitive bidding requirements of this chapter. The city manager/designee shall determine whether or not a particular contract or purchase is exempt under the following criteria:
A. Grants, Gift, or Bequest. When the provisions of this chapter would prevent the city from complying with the terms and conditions of any grant, gift, or bequest that is otherwise consistent with law. The city may expend the funds upon city council direction and approval in the manner consistent with the wishes and objectives designated by the donor or grantor.
B. State and Federal Funds. When any purchase or encumbrance is made with state or federal funds and the applicable state or federal laws or regulations are in conflict with this chapter to the extent that following the provisions of this chapter would jeopardize the use of those state or federal funds, such conflicting provisions of this chapter shall not apply and the city officials making such purchases shall follow the procedure required by the state or federal laws or regulations.
C. Emergency Purchases. Emergency purchases are those purchases which require prompt execution of the contract because of an imminent threat to the safety or welfare of the public, or public or private property; circumstances which place the city or its officers and agents in a position of serious legal liability; or circumstances which are likely to cause the city to suffer financial harm or loss, the gravity of which clearly outweighs the benefits of competitive bidding in the usual manner. The city manager shall notify the city council of any emergency contract which would have normally required their approval at the next regularly scheduled city council meeting.
For the purposes of this section, an emergency is a condition or situation which creates an immediate threat to public health, safety, or welfare. Examples of conditions or situations which may constitute emergencies include but are not limited to earthquakes, floods, terrorist attacks, wars, epidemics, recession, riots, road failures, utility failures, structure failures, and equipment failures.
D. Municipal Buildings Authority Act. Projects which are acquired, expanded, or improved under the Municipal Buildings Authority Act.
E. Sole Source Procurement. Purchases from vendors or suppliers who are a sole source of the goods or services under procurement.
1. Sole source procurement may be used if the city manager/designee determines that a service, product, or requirement is reasonably available only from a single supplier or contractor.
2. The justification for sole source procurement shall be included in the procurement documentation. The city manager/designee may establish policies governing the negotiation of sole source procurements.
3. Contracts for procurement of equipment which may be more efficiently added to, repaired, or maintained by a certain product brand, person, or firm, by reason of the training of city personnel who service such equipment, or because the equipment is in addition to or for the repair or maintenance of equipment already owned by the city.
4. For any sole source procurement that is a large purchase, notice of the sole source procurement shall be published at least 10 days before the approval of purchase.
F. State Contracts. Purchases from state or local surplus property agencies or entities or purchases from entities under state-awarded equipment contracts.
1. State Division of Purchasing Contracts. Purchases made through the cooperative purchasing contracts administered by the State Division of Purchasing shall not require bids or quotes of any type.
2. Cooperative Procurements. The city may make purchases through a cooperative procurement with a public entity inside or outside the state, another state, a cooperative purchasing organization, nonprofit cooperative organization, or, as permitted under federal law, an agency of the federal government all of which shall not require bids or quotes of any type.
G. Professional Service Agreements. Shall not be subject to the competitive sealed bidding requirements of this chapter; however, medium and large professional service agreements ($15,000.01 and above) must be approved by the city council and/or city manager as follows. The city council must approve the following professional service contracts which are medium or large purchases: auditing, attorneys, architectural services for city facilities, branding, government relations, and consulting services for the development of master plans and the general plan. Any professional service contracts which are medium or large purchases which are not included in the above-listed categories may be awarded at the discretion of the city manager.
1. Professional service contracts shall be awarded based on evaluation of services needed, ability of the contractors, professional qualifications, experience, ability to meet the city’s specific service requirements, uniqueness of the service, cost of service, general performance of the contractor, and other criteria deemed important.
2. The lowest quote need not necessarily be the successful contractor. Usually, emphasis will be placed on quality, with cost being the deciding factor when everything else is equal.
H. 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.
I. Auction, Closeout, Bankruptcy Sales. If the city manager/designee determines that supplies can be purchased at any public auction, internet auction, closeout sale, bankruptcy sale or other similar sale, and if the city manager/designee 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.
J. 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.
K. 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.
L. Unsuccessful Competitive Sealed Bidding. If the bids received in response to a competitive sealed bid process are not timely and responsive proposals, unreasonable, noncompetitive, or in excess of available funds, the city may procure the needed goods or services from any source and in any legal manner which is determined to be in the best interest of the city.
M. Negotiation of Bids. Where a bid exceeds available funds and time or economic considerations preclude resolicitation of work or purchase of a reduced scope or quantity, the city manager/designee may negotiate an adjustment of the bid price, including changes in the bid requirements in order to bring the bid within the amount of available funds.
N. Contract Extension. The city may provide an extension of contract with a firm currently providing service to the city if the city council approves an extension rather than a bid process, it is in the best interest of the city and it does not exceed a total period of five years.
O. Used Supplies. The city may acquire used supplies without following formal purchasing procedures if the city manager/designee 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.
P. 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 manager/designee 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.
Q. Projects Performed by City Employees. City employees may be used to complete city public improvement projects, provided that the city complies with state statutory requirements governing contracts for municipal public improvements and public improvement projects are approved by the city manager. [Ord. O-21-2024 § 2 (Exh. A); Ord. O-47-2023 § 2 (Exh. A)].
3.20.080 Bid requirements.
The competitive procurement processes shall include, at a minimum, the following requirements:
A. Notice of the request shall be made public in a manner determined by the purchasing agent to be in the city’s best interests. The request shall state the requirements to which a prospective applicant may respond.
B. Bid and proposal submissions shall be in writing and submitted to the bidding site specified by the city and/or other submission methods selected for use by the city.
C. The city shall have authority to require insurance certificates, bid, performance, payment, or other bonds in such amounts as deemed necessary to protect the interests of the city. The types and amounts of insurance and bonds to be required shall be described in the notice inviting bids or request for proposal.
D. Proposals which are received prior to or at the time established in the request shall be opened in a manner established by the request, this chapter, or an applicable city policy. A record of each such proposal shall be retained by the city pursuant to the Utah municipal general records retention schedule.
E. Each timely and responsive proposal shall be evaluated based upon the criteria established in the invitation, this chapter, and any applicable city policy. [Ord. O-47-2023 § 2 (Exh. A)].
3.20.090 Bid award and rejection.
A. After bids are opened, and a determination is made that a contract will be awarded, the contract will be awarded to the bidder that shall be the most advantageous and produce the best possible outcome for the city.
B. The award shall be determined to be the most advantageous to the city, taking into consideration price, the evaluation factors set forth in the bid or request for proposal, compliance with specifications and other criteria set forth herein.
1. The applicant’s capacity to perform the applicable contractual requirements, including, but not limited to, whether the applicant has available and appropriate financial, material, equipment, facility, and personnel resources and expertise.
2. The applicant’s legal capacity and ability to enter into an agreement with the city.
3. The applicant’s qualifications, ability, skill, and quality of performance in light of the required goods, services, or construction.
4. The applicant’s ability to provide warranties, maintenance, and service with respect to the subject matter of the contract to be awarded.
5. The applicant’s ability to work cooperatively with the city, including, but not limited to, prior interactions with the city or other similar entities.
6. Litigation or prosecution, or other similar claims, by or against the applicant.
7. Past negative city experience with the applicant.
8. Any other factor that the city determines in its discretion to be relevant to the awarding of a bid.
C. The city shall provide written electronic or traditional notification of bid/proposal submissions to each applicant and will notify each applicant when a bid/proposal is selected for an award. Upon providing such notification, the bids/proposals received by the city shall be open for public inspection.
D. The successful bidder shall promptly execute a formal contract and, if required, deliver bonds together with proof of appropriate insurance. Upon execution of the contract, bonds, and insurance, the bid security shall be returned. Failure to execute the contract, bond, or insurance shall be cause to forfeit the bid security.
E. The city may reject any and/or all bids presented, if rejection of all bids is determined to be in the best interest of the city and may re-advertise for bids as set forth in this article.
F. Bids may be rejected if the bid is not in compliance with all prescribed requirements.
G. An invitation for bids, a request for proposals, or other solicitation may be canceled, 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 in the best interest of the city; the reasons for cancellation or rejection shall be made part of the contract file.
H. Bids will not be invited or solicited from and contracts will not be concluded or made with persons or entities controlled by, or in which persons have a financial interest who are elected officials of the city, employees, or persons under professional services contracts with the city or members of the immediate family of such elected officials, employees or consultants, or other persons or entities which violate other provisions of law; the city shall not contract for professional services with any person or entity which provides professional services to any person or entity engaged in development in the city or otherwise contracting with the city for goods and/or services. [Ord. O-47-2023 § 2 (Exh. A)].
3.20.100 Prequalification and disqualification of bidders.
A. The city may require prequalification of vendors and bidders.
1. All vendors and bidders shall fill out the city’s vendor application, submit a current W-9, and any other documentation selected for use in the vendor application by the city.
2. If there has been any substantial change of conditions or circumstances which would make any statement contained in the vendor application no longer applicable or untrue, the vendor must notify the city and update the vendor’s information.
3. If an applicant does not qualify, written notice to the applicant is required stating the reasons the vendor application was denied and informing the applicant of the right to appeal the decision within five business days after receipt of the notice.
4. Upon discovering that a prequalified party is no longer qualified, the city may revoke qualification by sending notification of the revocation to the party subject to the revocation. The notice shall state the reason(s) for revocation, and that the revocation will be effective immediately.
B. A vendor or bidder may be disqualified if:
1. The vendor or bidder does not have sufficient financial ability to perform the contract (EMMC 3.20.090).
2. The vendor or bidder does not have equipment available to perform the contract (EMMC 3.20.090).
3. The vendor or bidder does not have key personnel available, of sufficient experience, to perform the contract (EMMC 3.20.090).
4. The vendor, bidder or person has repeatedly breached contractual obligations with public and private agencies (EMMC 3.20.090).
5. The vendor or bidder fails to comply with the requests of an investigation by the city manager/designee. [Ord. O-21-2024 § 2 (Exh. A); Ord. O-47-2023 § 2 (Exh. A)].
3.20.110 Appeals procedure.
Any supplier, vendor, or contractor subject to an adverse procurement decision by the city, in violation of this chapter, may appeal that decision to the city council.
A. The complainant shall promptly file a written appeal letter, with the city recorder, within five working days of the time the alleged incident occurred. The letter of appeal shall state all relevant facts of the matter and the remedy sought including:
1. The name, address, email, and telephone number of the applicant.
2. Identification of the contract and procurement number.
3. A detailed statement of all legal and factual grounds for the appeal, including true and accurate copies of all supporting documentation.
4. A detailed explanation of the relief requested.
5. The signature of the applicant or its legal representative.
B. Upon receipt of the notice of appeal, the city recorder shall forward to the city council the appeal notice, investigation of the matter and any other relevant information.
C. The city council shall conduct a hearing on the matter and provide the complainant with an opportunity to be heard. A written decision shall be sent to the complainant.
D. The city council shall be the final appeal entity on the city level. [Ord. O-47-2023 § 2 (Exh. A)].
3.20.120 Accounts payable.
The city’s finance director will be responsible for establishing a system/process for the accurate and timely processing of all disbursements of city funds with emphasis on taking advantage of discounts when available and avoidance of late charges.
The city council may request that the city council be provided with a financial report once a month at the first council meeting of the month for the preceding month. [Ord. O-47-2023 § 2 (Exh. A)].
3.20.130 Cost-plus-a-percentage-of-cost profit contracts prohibited.
A. Subject to the limitations of this section, any type of contract which will promote the best interests of the city may be used; provided, that the use of a cost-plus-a-percentage-of-cost profit contract is prohibited unless specifically approved by the city council under special circumstances which clearly justify the use of such contracts because the scope of work or the nature of the work is to be closely supervised by the city and the city council so finds in writing.
B. A cost-reimbursement contract may be used only when a determination is made in writing that such contract is likely to be less costly to the city than any other type or that it is impracticable to obtain the supplies, services, or construction required except under such a contract. [Ord. O-47-2023 § 2 (Exh. A)].
3.20.140 Required contract clauses.
A. The unilateral right of the city to order, in writing, changes in the work within the scope of the contract and changes in the time of performance of the contract that do not alter the scope of the contract work.
B. Variations occurring between estimated quantities of work in a contract and actual quantities.
C. Suspension of work ordered by the city.
D. Requirements for performance bonds and labor and material payment bonds as required by law for construction projects.
E. Other provisions required for compliance with federal or state law.
F. All specifications shall seek to promote overall economy and best use for the purposes intended and encourage competition in satisfying the needs of the city and shall not be unduly restrictive. Where practical and reasonable, and within the scope of this chapter, Utah products shall be given preference as required by Utah law. [Ord. O-47-2023 § 2 (Exh. A)].