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HomeMy Public PortalAbout09673 O R D I N A N C E NO. 9673 REPEALED BY 9845 - 4/18/96 AN ORDINANCE, repealing Ordinance No. 3716, adopted February 28, 1979, as amended by Ordinance No. 7411, adopted March 23, 1988, relating to the methods for purchase of supplies, materials and certain services other than contracts for personal services, contracts for insurance, and contracts for construction; and enacting in lieu thereof a new ordinance relating to the same subject matter providing for the methods for purchase of supplies, materials and certain services to be known as the "Purchasing Code" of The Metropolitan St. Louis Sewer District. BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT: Section One. Ordinance No. 3716 adopted February 28, 1979, as amended by Ordinance No. 7411, adopted March 23, 1988, is hereby repealed, provided, however, that any legal rights, duties, obligations or relationships established by such ordinances shall not be altered or extinguished. Section Two. This ordinance shall be known and be cited as the "Purchasing Code" of The Metropolitan St. Louis Sewer District. Section Three. For the purposes of this ordinance, the following terms, phrases, words and their derivations shall have the meaning given therein. When not inconsistent with the context, words used in the present tense include the future tense; words in the plural number include the singular number and words in the singular number include the plural number. The word "shall" as used in this ordinance is always mandatory and not merely directory. (1) "CONTRACTUAL SERVICES" shall mean and include all telephone, gas, water, electric, light and power services; janitorial services; any and all printing, binding and publication of stationery, forms, laws, journals and report; and the rental repair or maintenance of equipment, machinery and other District owned personal property. The term shall not include professional and other contractual services which are in their nature unique and not subject to competition. Contractual services also shall not include insurance, construction contracts, and personal services. (2) "DISTRICT" is The Metropolitan St. Louis Sewer District. (3) "EMERGENCY" is a situation or condition which may vitally affect the life, health, welfare, or convenience of citizens, and/or the employees of the District. An emergency shall also include those situations or conditions where the supplies, materials, equipment, property, and real property of the District are likely to be lost or severely damaged. (4) "IMMEDIATE NEED" is a situation or condition which does not qualify as an EMERGENCY, however, the failure to take prompt action may result in an unnecessary delay which could cause the situation or condition to become an EMERGENCY. Generally, this shall mean that the supplies, property, and/or services are required in less than 14 days. (5) "PURCHASING MANAGER" is the head of the Purchasing 3 Division of The Metropolitan St. Louis Sewer District and is appointed by the Director of Finance of The Metropolitan St. Louis Sewer District. (6) "RESPONSIBLE" shall mean the contractor has the technical expertise, manufacturing capacity, product quality, and financial ability to accomplish the contemplated procurement. The implications of the term responsible are fully developed in Section Nine, Sub-Paragraph 5. (7) "RESPONSIVE" shall mean the company's bid was received prior to the established bid opening time and the bid is in full com- pliance with The Metropolitan St. Louis Sewer District bid specifica- tions. (8) "SUPPLIES" shall mean and include all materials and equipment. (9) "USING AGENCY" shall be construed to mean any and all departments, divisions, sections, boards, commissions or other units in the District using supplies or procuring contractual services and derive their support wholly, or in part, from funds of the District. Section Four. The Purchasing Manager shall be the head, and have general supervision, of Purchasing. Except as otherwise provided herein, he shall perform all duties prescribed by this ordinance. Section Five. Except as otherwise provided herein, by law or ordinance, it shall be the Purchasing Manager's duty: To purchase or contract for all supplies and contractual services needed by any 4 using agency in accordance with purchasing procedures as prescribed by this ordinance, such rules and regulations as the Purchasing Manager shall adopt for the internal management and operation of the Purchasing Division, and such other rules and regulations as may be prescribed by the Director of Finance and Board of Trustees. Except as may be otherwise provided for herein or by law or ordinance, the Director of Finance and Purchasing Manager shall have authority to negotiate all purchases for using agencies. With the exception of construction, insurance, and personal service contracts, it shall be unlawful for any District officer to enter into any contract within the purview of this ordinance other than through the Purchasing Division and purchases ordered or contract made contrary to the provisions hereof shall not be approved and the District shall not be bound thereby. Section Six. In addition to the purchasing authority conferred in Section Five and in addition to any other powers and duties conferred by this ordinance, the Purchasing Manager shall: (a) Act to procure for the District a suitable quality in supplies and contractual services at the least expense to the District, utilizing life-cycle cost and/or other reasonable techniques for measuring a system's total cost effectiveness. (b) Discourage collusive or restrictive bidding and endeavor to obtain as full and open competition as possible on all purchases. (c) Establish, and amend when necessary, all rules and 5 regulations authorized by this ordinance and any other 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 District the benefits of research done in the field of purchasing by other governmental jurisdictions, national technical associations, trade associations having national recognition and by private business and organizations. (e) Prescribe and maintain such forms as he shall find reasonably necessary to the operation of this ordinance. (f) Prepare and adopt a standard purchasing procedure for using agencies and supplier. (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 District all federal, state, and local tax exemptions to which it is entitled. Section Seven. All using agencies, either by or with the authorization of the head of the department or office under which the using agency operates, shall file with the Purchasing Division 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 Manager shall prescribe. A using 6 agency shall not be prevented from filing, in the same manner, with the Purchasing Division 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 Division shall examine each requisition or estimate and shall have the authority to revise it as to quality, quantity, or estimated cost, except where the using agency shall have the specific power and duty as otherwise provided by law or ordinance to determine the quality, quantity, and specifications or cost of any supplies; but revision as to quality shall be in accordance with the standards and specifications established in The Metropolitan St. Louis Sewer District Purchasing Procedure pursuant to this ordinance. Section Eight. The Purchasing Division shall not issue any order for delivery on a contract or open market purchase until the Director of Finance shall have certified that there is to the credit of the using agency or agencies concerned a sufficient unencumbered appropriation balance in excess of all unpaid obligations to defray the amount of such order. Section Nine. Except as otherwise provided herein, all supplies and contractual services, when the estimated cost thereof shall exceed Ten Thousand Dollars ($10,000.00), shall be purchased by formal written contract from the lowest responsive and responsible bidder, after due notice inviting proposals: (1) Notice inviting bids shall be published at least once in one or more newspapers of general circulation in the District, 7 which notice shall be published at least seven (7) days preceding the day set for receipt of proposals. The newspaper notice required herein shall include a general description of the articles to be purchased or sold; shall state where bid blanks and specifications may be secured, and the time and place for opening bids. The Pur- chasing Division shall also solicit sealed bids from all responsible prospective suppliers or purchasers who have requested their names to be added to a "Bidders' List", which the Purchasing Division shall maintain by sending them a copy of such notice as will acquaint them with the proposed purchase or sale, at least seven (7) days preceding the day set for receipt of proposals. (2) When deemed necessary by the Purchasing Manager, surety bid bonds or cash deposits of five percent (5%) of the total dollar amount bid shall be prescribed in the public notice inviting bids. Unsuccessful bidders shall be entitled to the return of their surety bid bonds or cash deposits. A successful bidder shall forfeit any deposit or surety required by the Purchasing Manager upon failure on his part to enter into a contract within ten (10) days after the award. (3) All bids shall be submitted sealed to the Purchasing Division and shall be identified as bids on the envelope. Bids shall be opened in public at the location and on the day and at the time stated in the public notices. The Purchasing Division shall tabulate all bids received on a form specially designed for the purpose, and such tabulation and bids shall be available for inspection in the 8 Purchasing Division for at least five (5) days after the bid opening. The Purchasing Division shall forward the tabulation to the using agency, which shall return the bids with recommendations to the Purchasing Division within the shortest practicable time. (4) The Purchasing Manager and the Director of Finance shall have the authority to reject all bids, parts of all bids, or all bids for any one or more supplies or contractual services included in the proposed contract, when the public interest will be served thereby, and a statement to that effect will be included in the information for bidders. (5) The Purchasing Manager and the Director of Finance shall have the authority to award contracts within the purview of this ordinance. Contracts shall be awarded to the lowest responsive and responsible bidder. In determining "lowest responsible bidder", in addition to price, the following may be considered: The ability, capacity, or skill of the bidder to perform the contract or provide the service promptly or within the time specified, without delay or interference; the character, integrity, reputation, judgment, experience, and efficiency of the bidder; the quality of performance or previous contracts or services; the previous and existing compliance by the bidder with laws and ordinances relating to the contract or service; the sufficiency of the financial resources and ability of the bidder to perform the contract or provide the services; the quality, availability and adaptability of the supplies, 9 or contractual services to the particular use required; the ability of the bidder to provide future maintenance and service for the use of the subject of the contract; and the number and scope of conditions attached to the bid. Bidders must adhere to the letter and intent of the bid specifications; any deviation may result in the bidder being declared non-responsive. Normally, awards will be made to the lowest responsive and responsible bidder; however, the cost of operating and supporting a system or major item of equipment over its useful life is substantial. In many cases, life cycle operating and maintenance costs are greater than acquisition costs. Using agencies shall assist the Purchasing Division in the evaluation process by giving proper consideration to those systems or equipments that will result in the lowest life cycle cost to the District. 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 Purchasing Manager with the written concurrence of the District's legal counsel and filed with the other papers relating to the transaction. If all bids received are for the same total amount or unit price, the Purchasing Division shall re-advertise for bids, unless the public interest will not permit this delay. In such case, the Purchasing Manager shall award the contract to one of the tie bidders by drawing lots in public, or by purchasing the supplies or contractual services in the open market, provided the price paid therefor shall not exceed the lowest contract bid price submitted for the same supplies or contractual services. If two or more bidders 10 tie for low bid and elements of time or responsibility of the bidders are not sufficient to justify the award to one of the tie bidders, the Purchasing Manager shall award the contract to one of the tie bidders by drawing lots in public. (6) No contract or purchase shall be subdivided to avoid the requirements of competitive bidding. Section Ten. All purchases of supplies and contractual services of less than the estimated value of Ten Thousand Dollars ($10,000.00) may be made in the open market without newspaper advertisement and without observing the procedure prescribed in Section Nine hereof for award of formal contracts. (1) All open market purchases shall, wherever possible, be based on at least three (3) competitive bids and shall be awarded to the lowest responsive and responsible bidder in accordance with the standards set forth in Section Nine, Sub-Paragraph 5, hereof. The Purchasing Manager shall solicit bids by direct mail and or by telephone from prospective vendors. The Purchasing Manager shall keep a record of all open requisitions and the bids submitted in competition thereon and such record shall be open to public inspec- tion. (2) Purchases, in the amount of $250.00 or less may be directly made by the using agency on the District's Purchase Authorization Form. (3) In case of an IMMEDIATE NEED which requires the immediate purchase of supplies, equipment, or contractual services 11 that are in excess of Ten Thousand Dollars ($10,000.00), and when there is not adequate time to adhere to the formal procurement practice prescribed in Section Nine, the Director of Finance shall be empowered to authorize the Purchasing Manager to secure by open market procedure, as herein set forth, at the lowest possible price, any supplies or contractual services regardless of the amount of the expenditure; provided, however, that the Director of Finance shall certify that the account to be charged for said services or purchase has a sufficient unencumbered balance to pay the same in the appropriation account against which such obligation is to be charged. (4) A full report of the circumstances of such open market IMMEDIATE NEED purchase, wherein the expenditure is in excess of Ten Thousand Dollars ($10,000.00), shall be filed by the Purchasing Manager with the Director of Finance and shall be entered in the minutes of the Board of Trustees and shall be open to public inspection. Section Eleven. Except as otherwise provided herein, any EMERGENCY purchase over Two Hundred Fifty Dollars ($250.00) cannot be made without first obtaining a confirming purchase order number from the Purchasing Division. The requisition and a copy of the delivery record, together with a full written report of the circumstances of the emergency, shall be sent to the Purchasing Manager. (1) In cases of EMERGENCY, when a confirming Purchase Order number cannot be obtained from the Purchasing Division and where the immediate procurement of any supplies, equipment, or 12 contractual services is essential to prevent delays in the work of any using agency which may vitally affect the life, health, welfare, or convenience of citizens, and there is not sufficient time for the procedure set forth above to be followed, the Purchasing Manager or the Director of Finance may authorize the head of any such agency or his designee to purchase directly such supplies or contractual services. The head of such using agency or his designee shall send to the Purchasing Manager a requisition and a copy of the delivery record, together with a full written report of the circumstances of the EMERGENCY. A report of any EMERGENCY purchase expenditures in excess of Ten Thousand Dollars ($10,000.00) shall be filed by the Manager with the Board of Trustees and Director of Finance as set forth above. (2) The Purchasing Manager with the approval of the Director of Finance shall prescribe by rules and regulations the procedure under which EMERGENCY purchases by heads of using agencies may be made. Section Twelve. All contracts for services and supplies, wherein the District is a party, shall contain a non-discrimination in employment clause which shall provide that the contractor in the performance of the contract will not discriminate against any employee or applicant for employment because of race, creed, or religion, color, sex, or national origin. Actions of the contractor shall include but not be limited to the following: Employment, up- grading, demotion or transfer; recruitment or recruitment 13 advertising; layoff or termination; rates or pay or other forms of compensation; and selection for training, including apprenticeship. The Director of Legal Services shall draft an appropriate clause for inclusion in all District contracts. Section Thirteen. The Purchasing Manager shall have authority to execute contracts for a period not to exceed one (1) year, subject to the provisions of this ordinance, whereby the using agencies requisition and accept delivery of supplies and equipment in small lots, to meet requirements as needed. The Purchasing Manager shall have authority to charge the cost of such contract against the appropriations of such using agencies. The Purchasing Manager shall prescribe by rules and regulations the procedure under which such requisition may be made by the heads of using agencies. Section Fourteen. (a) The Director of Finance can authorize sole source procurement of an item over Ten Thousand Dollars ($10,000.00) upon presentation of sufficient documentation to the effect that a part or component for an existing item can only be procured from the original manufacturer or his authorized regional representative. (b) The Director of Finance may also authorize sole source procurement when the contemplated acquisition is for technical services in connection with the assembly, installation, or servicing of equipment of a highly technical or specialized nature. Section Fifteen. (a) Except as otherwise provided herein, the Purchasing Division shall inspect, or supervise the inspection of, all deliveries of supplies or contractual services to determine their conformance with the specifications set forth in the order or contract. The Purchasing Manager shall have the authority to 14 delegate to using agencies having the staff and facilities for adequate inspection to inspect all deliveries made to such using agencies under rules and regulations which the Purchasing Manager shall prescribe. (b) The Purchasing Manager shall have the authority to require chemical and physical tests of samples submitted with bids and samples of deliveries which are necessary to determine their quality and conformance with the specifications. In the performance of such tests, the Purchasing Manager shall have the authority to make use of laboratory facilities of the District or of any outside laboratory. Section Sixteen. (a) All using agencies shall submit to the Purchasing Manager, at such times and in such form as he shall prescribe, reports showing stocks of all supplies which are no longer used or which have become obsolete, worn out or scrapped. The Purchasing Manager shall have the authority to transfer surplus stock to other agencies and to sell all supplies which have become unsuitable for public use or to exchange the same for, or trade in the same on, new supplies. Sales under this Section shall be made to the highest responsible bidder and in conformance with Sections Nine, Ten and Eleven hereof, whichever is applicable. (b) The Purchasing Manager shall make necessary arrangements to keep the Director of Finance informed of all transfers, sales, exchanges, and trade-ins so that the Director of 15 Finance's inventory record may be kept current. Section Seventeen. (a) Personal property may be sold or donated only after it has been determined by the respective department head to be surplus to the District's needs. Property will not be sold or donated until each department, in turn, has screened the property and declared it excess to its current and immediately foreseeable needs. Additionally, all property with an estimated disposal value in excess of Two Thousand Dollars ($2,000.00) will not be sold or donated with- out the review and approval of the Executive Director. (b) Surplus inventory shall be offered for sale on a competitive basis. All property with an estimated disposal value in excess of Two Thousand Dollars ($2,000.00) will be formally advertised. To the extent feasible, dealers, suppliers and/or interest parties should be solicited when additional competition will result. All property with an estimated disposal value in excess of Fifty Dollars ($50.00) but less than Two Thousand Dollars ($2,000.00) must be competitively offered to at least three interested parties and disposition value documented with at least two sealed bids. Under Fifty Dollars ($50.00), no competition is required. Certificate of Disposal must be prepared and filed at Division level. (c) If approved by the Board of Trustees, property may be donated to political divisions or subdivisions of the State of Missouri, Public School Districts, Federal Educational Institutions, Federal Public Health and Federal Civil Defense Institutions and 16 organizations and other non-profit philanthropic private organizations. Section Eighteen. The Purchasing Manager shall have the authority, with the approval of the Director of Finance, to join with any public body or agency, private association, or educational institution in the cooperative purchasing of any supplies, materials, equipment or contractual services when the best interest of the District would be served thereby. The foregoing Ordinance was adopted September 14, 1995.