Chapter 13.40
PURCHASING PROCEDURES
Sections:
13.40.030 Competitive bidding requirements.
13.40.040 Exemptions to competitive bidding requirements.
13.40.050 Interlocal agreement in letting of contracts for commodities or services.
13.40.060 Disposal or lease of public property.
13.40.070 Making transactions.
13.40.080 Approval of claims and signing of checks.
13.40.090 Administrative Services Director designated City Financial Officer.
13.40.010 Definitions.
Unless the context requires otherwise, the terms as used in this chapter shall have the following meanings:
“Bidding” means the procedure used to solicit quotations on price and delivery from various prospective suppliers of supplies, equipment, and contractual services.
“Consent” means authorization given to enter into a transaction that commits Syracuse City resources in exchange for goods or services.
“Contractual services” means professional services such as architectural, auditing, banking, engineering, insurance, legal, or other consulting services.
Designee. Each Department Head acts on behalf of the City Purchasing Agent to administer those budgets assigned to them by the City Purchasing Agent.
“Public property” means any item of real or personal property owned by the City.
“Responsible bid” means an offer submitted by a responsible bidder to furnish supplies, equipment, or contractual services in conformity with the specification, delivery terms and conditions, and other requirements included in the invitation for bids.
“Responsible bidder” means a bidder who has furnished, when required, information and data to prove that his financial resources, production or service facilities, service reputation, and experience are adequate to make satisfactory delivery of the supplies, equipment, or contractual services on which he bids; and who has not violated or attempted to violate any provisions of this chapter.
“Supplies, materials, and equipment” means any and all articles or things which shall be furnished to or used by any City department. [Ord. 07-01 § 3 (Exh. C); Ord. 05-27 § 1; amended 1986; Code 1971 § 3-8-1.]
13.40.020 Administration.
The City Administrator shall be the purchasing agent for the City and shall administer the purchasing system provided by this chapter with assistance from designee Department Heads. He shall perform the duties and have powers concerning purchasing matters as follows:
(A) Administer and maintain the purchasing system and other rules and regulations established by this chapter and its authority. No purchases, including petty cash purchases, are to be made without the prior knowledge and consent of the City Purchasing Agent or his designee. All purchases and petty cash withdrawals are to be documented on the appropriate forms and to be properly recorded at the point of transaction. The penalty for failure to comply with this section could be liability for the expenses incurred and disciplinary action up to and including termination.
(B) Each Department Head is designated as a purchasing agent for their respective department’s budgets on behalf of the City Purchasing Agent and shall have authority for purchases not exceeding the overall budget for any purchases for the department without the authority or participation of the City Purchasing Agent.
(C) Recommend to the Governing Body such new or revised purchasing rules and regulations as are deemed desirable and in conformance with other statutory requirements, and to interpret day to day the provisions of this chapter and applicable statutes.
(D) Negotiate and recommend execution of contracts for the purchase of supplies, equipment and contractual services.
(E) Seek to obtain full and open competition, to the extent possible, on all purchases.
(F) Keep informed of current developments in the field of purchasing, i.e., prices, market conditions, new products, etc.
(G) Prescribe and maintain such forms as are reasonably necessary to the operation of this chapter and other rules and regulations.
(H) Supervise the inspection of all supplies and equipment to assure conformance with specifications.
(I) Transfer surplus or unused supplies and equipment between departments as needed.
(J) Maintain a bidder’s list, vendors’ catalog file, and other records needed for the efficient operation of the purchasing system. [Ord. 09-11 § 2; Ord. 08-06 § 1; Ord. 07-01 § 3 (Exh. C); amended 1991; Code 1971 § 3-8-2.]
13.40.030 Competitive bidding requirements.
Except as hereinafter provided, purchases of supplies, equipment, and letting of contracts shall follow one of the following procedures:
(A) Formal Bidding Procedure. Except as otherwise provided herein, purchases of supplies, equipment, and letting of contractual services of an estimated value greater than $10,000 shall be by written contract with the lowest responsible bidder, pursuant to the procedure hereinafter prescribed.
(1) Approval of Specifications. Prior to seeking bids for equipment or contractual services having a unit cost in excess of $10,000, specifications shall be prepared and a formal request for proposal or request for bids prepared and to authorize advertising for bids.
(2) Notices Inviting Bids. Notices inviting bids shall include a general description of the articles to be purchased, shall state where bid blanks and specifications may be secured, and the time and place for opening bids.
(a) Publishing Notice. Notices inviting bids shall be published at least 10 days before the date of opening of the bids. Notices shall be published at least once in a newspaper of general circulation in the City.
(b) Bidder’s List. Sealed bids shall be solicited from all responsible prospective suppliers whose names are on the bidder’s list or who have made written request that their names be added thereto.
(c) Bulletin Board. Notices advertising pending purchases shall also be posted on a public bulletin board in the City Hall.
(3) Bid Opening Procedure. Sealed bids shall be submitted as designated in the notice with the statement “Bid for (item)” 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 open for public inspection during regular business hours for a period of not less than 30 days after the bid opening.
(4) Rejection of Bids. At its discretion, the City may reject without cause any and all bids presented, and readvertise for bids pursuant to the procedure hereinabove prescribed. If an acceptable bid is not received after two attempts, the City may proceed to purchase the supply or service in the manner which, in the judgment of the Purchasing Agent, secures the best available price for the most adequate supply or service.
(5) Award of Contracts. Except as otherwise provided herein, contracts shall be awarded by the Governing Body to the lowest responsible bidder.
(6) Tie Bids. If two or more bids received are the low bids and are for the same total amount or unit price, quality and service being equal, and if the public interest will not permit the delay of re-advertising for bids, the Governing Body shall determine which bid, if any, to accept after negotiation with the tied bidders.
(B) Public Improvement Contracts. The procedures established by Section 11-39-101, et seq., Utah Code Annotated 1953, as amended, shall govern all contracts for public improvements having an estimated cost that meets the indexed code requirements.
(C) Informal Bidding Procedure. Purchases of supplies, equipment or contractual services of an estimated value of $10,000 or less may be made in the open market pursuant to the procedure hereinafter prescribed, and without observing the procedure prescribed in subsection (A) of this section. All bidding may be dispensed with for purchases having a total estimated value of less than $1,000.
(1) Minimum Number of Bids. Open market purchases shall, whenever possible, be based on at least three bids (price quotations) and shall be awarded to the lowest responsible bidder.
(2) Solicitation of Bids. Bids (price quotations) shall be solicited from prospective vendors by oral, written, or telephone requests.
(D) Professional Service Contracts Procedure. Contracts for professional services shall be awarded at the discretion of the Governing Body to include, but not limited to, the following services: architectural, auditing, banking, engineering, construction project management, insurance, and legal. Contracts shall be awarded at the discretion of the Governing Body based on the evaluation of professional qualifications, service ability, cost of service, and other criteria deemed applicable by the Governing Body. [Ord. 07-01 § 3 (Exh. C); amended 1996, 1986; Code 1971 § 3-8-3.]
13.40.040 Exemptions to competitive bidding requirements.
(A) Special Contracts. Contracts which by their nature are not adapted to being awarded by competitive bidding shall not be subject to the bidding requirements of this chapter. Some examples of such contracts are: contracts for items which may only be purchased from a single source; emergency purchases, purchases from the state bid, contracts for additions to equipment owned by the City which may be more efficiently added to by a certain person or firm; contracts for repairs and maintenance of equipment owned by the City which may be more efficiently repaired or maintained by a certain person or firm; contracts for equipment which is similar to existing City-owned equipment on which City personnel are already trained; and contracts for equipment which is compatible with existing City-owned equipment for which the City maintains an inventory of replacement parts.
(B) Auction, Closeout, Bankruptcy Sales. If the Purchasing Agent determines the supplies, materials or equipment can be purchased at any public auction, closeout sale, bankruptcy sale or other similar sale, and if a majority of the Governing Body at a regular or special meeting concurs in such determination and makes a finding 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.
(C) Exchanges. Exchanges of supplies, material or equipment 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. [Ord. 07-01 § 3 (Exh. C); amended 1986; Code 1971 § 3-8-4.]
13.40.050 Interlocal agreement in letting of contracts for commodities or services.
The City shall have the power to enter into joint purchase agreements with any or all other public agencies within the state for the purchase of any commodity or service, wherein it is determined by the Governing Body to be in the best interest of the City. [Ord. 07-01 § 3 (Exh. C); amended 1986; Code 1971 § 3-8-5.]
13.40.060 Disposal or lease of public property.
All disposal, leases, and subleases of public property of the City shall be made under the same conditions and limitations as nearly as possible, as required by this chapter in the purchase of public property, but the Governing Body, at its discretion, may also authorize:
(A) The sale of any property at public auction if it deems such a sale desirable and in the best interest of the City; or
(B) The lease or sublease of any such property at a properly advertised public hearing under such terms and conditions as it may deem desirable, fair, and appropriate, considering intended land use, equivalent property tax value, and the best interest of the City. [Ord. 07-01 § 3 (Exh. C); Ord. 05-27 § 2; amended 1986; Code 1971 § 3-8-6.]
13.40.070 Making transactions.
(A) The Purchasing Agent (or designee) is authorized and responsible to commit City resources to operate their assigned budgets within the authority of the adopted or amended budget.
(B) Pursuant to Sections 10-6-121 and 10-6-123, Utah Code Annotated 1953, the Purchasing Agent or designees shall not make or incur expenditures in excess of total appropriations for any department. Any such obligation contracted shall not be or become valid or enforceable against the City.
(C) After transactions have been completed, the Purchasing Agent (or designee) shall submit a claim for payment to the City Finance Officer (Administrative Services Director).
(D) The City Finance Officer (Administrative Services Director) audits/approves claims and processes them for payment, in accordance with SCC 2.30.010.
(E) Any claims that are not approved (not within the adopted budget) are presented directly to the City Council for their action. [Ord. 18-06 § 1 (Exh. A); Ord. 07-01 § 3 (Exh. C); Code 1971 § 3-8-7.]
13.40.080 Approval of claims and signing of checks.
(A) Any commitment on the accounts of the City of Syracuse must be within the approved and duly adopted budget or approved by the Governing Body before they are paid.
(B) Unless otherwise designated in this chapter, all checks drawn on the accounts of the City of Syracuse must be signed by the City Treasurer or his or her deputy and countersigned by either the Administrative Services Director or the Mayor. All checks must be signed by two separate individuals. Prior to signing any check, the City Treasurer or his deputy shall determine that sufficient amount is on deposit in the appropriate bank account of the City to honor the check. [Ord. 18-14 § 1 (Exh. A); Ord. 07-01 § 3 (Exh. C); amended 1991; Code 1971 § 3-8-8.]
13.40.090 Administrative Services Director designated City Financial Officer.
(A) Pursuant to Sections 10-6-158 and 10-6-159, Utah Code Annotated 1953, the Administrative Services Director is hereby designated as the City’s Financial Officer and is authorized:
(1) To approve any payroll checks prepared for an authorized City employee hired in accordance with personnel policies established by City ordinance or resolution.
The amount paid to any such authorized employee shall also be in agreement with a specific salary assigned to such employee pursuant to a salary schedule adopted by the Governing Body or a salary amount assigned by ordinance or resolution of the Governing Body.
(2) To approve claims submitted for the payment of routine expenditures, such as utility bills, payroll, related expenses, supplies and materials, which were purchased according to authorized purchasing procedures established by ordinance or resolution.
(3) To approve any submitted claim which is in accordance with an authorized City contract.
(4) To approve claims within the established budget made pursuant to established purchasing procedures, referenced in the budget document and approved by an appropriation resolution adopted for the current fiscal year budget.
(B) The above claim approval authority delegated to the Administrative Services Director is hereby subject to the following restrictions:
(1) No claim may be approved by the Administrative Services Director which is not within the duly and legally adopted or adjusted budget.
(2) No claim may be approved which was not made in accordance with personnel and purchasing procedures established by ordinance or resolution.
(C) The Administrative Services Director will provide the Governing Body a listing of approved claims for review at the next regular scheduled meeting.
(D) Claims that are not part of the approved budget and any proposed unbudgeted expenditures shall be presented to the Governing Body for their consideration.
(E) Financial reports shall be prepared and made available to the Council in a format they approve. [Ord. 18-06 § 1 (Exh. A); Ord. 07-01 § 3 (Exh. C); amended 1991; Code 1971 § 3-8-9.]
13.40.100 Penalties.
(A) Conflicts of Interest. No member of the Governing Body or City employee may have a direct or indirect interest in any contract entered into by the City. A violation of this provision shall subject such member or employee to all penalties applicable by law.
(B) Collusion Among Bidders. Any agreement or collusion among bidders or prospective bidders, in restraint of freedom of competition, by agreement to bid a fixed price, or otherwise, shall render the bids of such bidder void.
(C) Advance Disclosures. Any disclosure about the bids in advance of their opening made or permitted by a member of the Governing Body or a City employee shall render all bids void. This applies whether the bids were solicited by advertisement or by request.
(D) Gratuities. All City elected or appointed officers and municipal employees are required to adhere to the requirements of Section 10-3-1304, Utah Code Annotated 1953, regarding the acceptance of any gratuity in the form of cash, merchandise, or any other thing of value. Violations shall subject such member or employee to all penalties applicable by law. [Ord. 07-01 § 3 (Exh. C); amended 1986; Code 1971 § 3-8-10.]