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ORDINANCE #2008-38
AN ORDINANCE AMENDING TITLE 2.28, OF THE MOAB MUNICIPAL CODE
REGARDING PURCHASING PROCEDURES
WHEREAS, flexibility in purchasing and procurement procedures is
needed to obtain the most competitive and financially advantageous services
available; and
WHEREAS, the procurement of construction services in a small market
area necessitates the ability to make exceptions to purchasing policies to
facilitate a competitive process and obtain services at a lower cost; and
WHEREAS, the increases in the costs of services and materials during the
past several years has necessitated the need for increasing purchasing bid/quote
limits;
NOW THEREFORE, WE, the Governing Body of the City of Moab do
hereby ordain the following:
That Title 2.28 shall be amended as follows and 2.28.041 shall be added
as detailed by the attached document:
PASSED, ADOPTED AND APPROVED by the Governing Body of the City of Moab in
open session this 28th day of October, 2008. This ordinance shall take effect
immediately upon passage.
NEST: ( L'� �Q/'
Rachel Ellison Dave Sakrison
Mcab City Recorder Mayor of Moab City
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Chapter 2.28
PURCHASING AGENT
Sections:
2.28.010 Establishment -Appointment -Designated.
2.28.020 City recorder supervision.
2.28.030 Purchasing procedure -Generally.
2.28.040 Purchasing procedure --Securing competitive
proposals and bids.
2.28.041 Unresponsive bidders for three proposal
requirement
2.28.042 Bid security, performance and payment bonds.
2.28.045 Purchasing procedures --Exceptions.
2.28.050 Purchasing procedure --Certification and
approval of bills.
2.28.060 Responsibility for supplies and equipment.
2.28.070 Records to be kept
2.28.010 Establishment--Appointment--Designated.
There is established the office of purchasing agent,
and the person holding such office shall be designated as
the purchasing agent of the city. S/he shall be appointed
by the mayor with the advice and consent of the city
council.
Until otherwise provided for by resolution, the city
recorder shall be ex officio purchasing agent of the city.
(Ord. 84-03 § 1, 1984: prior code § 2-50)
2.28.020 City recorder supervision.
The purchasing agent shall in all things pertaining to
his office, and in the discharge of the duties thereof, be
under the direction, control and supervision of the city
recorder. (Prior code § 2-51)
2.28.030 Purchasing procedure --Generally.
The purchasing agent shall make the purchase of
supplies and materials for the use of the city, when
authorized by the city council, and the mayor and city
recorder shall let all contracts for labor to be performed
for the city, in cases where the letting of contracts is
necessary. Requisitions shall be made for all purchases to
be made as provided in this chapter and such requisitions
shall be approved in writing by the heads of the
departments for which the same are required. Such
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requisitions shall constitute the authority for all
purchases and contracts to be made under the provisions of
this article, and shall be filed in the office of the
purchasing agent. The health officer shall make all
purchases for the department of health for all medicinal,
preventative and curative supplies and materials, and such
other supplies and materials as require a technical
knowledge of medicine, pharmacy or chemistry in their
manufacture or preparation for use. The purchasing agent
is empowered to sell scrap iron and such other materials
belonging to the city as are not available to use. S/he
shall make such sales upon terms most advantageous to the
city, and to this end, S/he shall procure competitive
offers from at least three persons and S/he shall accept in
every case the highest cash offer. (Prior code § 2-52)
2.28.040 Purchasing procedure --Securing competitive
proposals and bids.
It shall be the duty of the purchasing agent to make
all purchases upon the most advantageous terms to the city,
and to this end, the purchasing agent shall procure
competitive proposals from at least two responsible
persons, and shall take advantage of the lowest possible
prices for goods of equal value.
In cases involving the expenditure of sums between
seven and fifteen thousand, the department head shall
ensure that at least three providers of services and/or
products have been contacted to obtain pricing. All quotes
received will be filed with the requisitions. If the
providers decline or fail to provide pricing, documentation
of pricing solicitation shall be filed with the
requisitions pursuant to which the expenditures are made.
Unless specifically excepted by provisions of this
section in all cases involving the expenditure of sums in
excess of fifteen thousand dollars and below twenty-five
thousand dollars, the purchasing agent shall secure
proposals in writing from at least three bidders, which
proposals shall be filed with the requisitions pursuant to
which the expenditures are made.
Unless specifically excepted by provisions of this
section, in all cases involving the expenditures of sums in
excess of twenty-five thousand dollars, the purchasing
agent must advertise and solicit sealed bids as provided
under current procurement guidelines. (Ord. 06-07 (part),
2006: Ord. 05-04 (part), 2005: Ord. 03-07, 2003: Ord.
03-01, 2003: Ord. 99-10, 1999: Ord. 97-09, 1997: Ord.
84-03 § 2, 1984: prior code § 2-53)
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2.28.041 Unresponsive bidders for
requirement.
In cases involving the expenditure
fifteen thousand dollars and below
dollars for construction projects,
three proposal
of sums in excess of
twenty-five thousand
if fewer than three
proposals are received by the proposal submittal deadline
and the department head provides sufficient documentation
that requests for proposals have been sent to either five
providers or all local providers of the service to be
procured, the three quote requirement may be waived by the
purchasing agent if the quotes received are deemed to be
competitive and fair.
2.28.042 Bid security, performance and payment bonds.
A. A bid security bond is required on all
construction projects in excess of fifty thousand dollars.
Bid security shall be in an amount equal to at least five
percent of the bid.
B. Payment and performance bonds in the amount of
one hundred percent of the contract price are required for
all construction contracts in excess of fifty thousand
dollars. Performance and payment bonding requirements
shall be outlined in bidding and contract documents.
C. Waiver of Bonding. The city manager and
purchasing agent may elect to waive all or part of the
bonding requirement if they find that bonds cannot
reasonably be obtained for the work involved and if the
city manager and purchasing agent determine that there
exists other reasonable assurances that adequately
substitute for construction guarantees to protect the city
for individual construction projects. This staff level
waiver may be applied to projects between fifty thousand
dollars and four hundred ninety-nine thousand nine hundred
ninety-nine dollars. Findings made pursuant to this
section shall be in writing.
D. Alternative Security. Where the city elects to
waive or alter bonding requirements, the construction
contract awarded by the city shall contain one or more
alternative security mechanisms to secure performance by
the contractor and/or payment to subcontractors, laborers,
or material suppliers, which may include, but are not
limited to: 1) an irrevocable letter of credit payable to
the city; 2) a deed of trust, security agreement, deposit
account at a financial institution, or similar collateral
interest pledged to the city; or 3) joint payee checks or
other disbursement controls by the city. In every contract
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where there is any waiver of bonding requirements, or where
no bonding is required, the general contractor,
subcontractors, laborers, and material suppliers providing
labor, equipment, or services under the contract shall be
required to execute payment waivers extinguishing claims
against the city, in a form acceptable to the city,
contemporaneous with disbursement of all progress payments,
and at final completion. (Ord. 06-07 (part), 2006)
2.28.045 Purchasing procedures --Exceptions.
A. For cases between twenty-five thousand dollars
and fifty thousand dollars involving essential public works
projects, and approved in advance by the city manager and
purchasing agent, the sealed bid requirement may be waived,
providing that the purchasing agent procure proposals in
writing from at least three bidders, as specified in this
section. All other exceptions to purchasing procedures
require city council approval.
B. Essential public works projects shall include
projects related to the maintenance and operation of the
water and sewer system, the wastewater treatment plant,
streets and sidewalks, storm drainage and flood control
systems.
C. Where there is only one provider of goods or
services to be procured by the city, the purchasing agent
may waive the requirement that competitive proposals
accompany the requisition, provided the department head
shall have made reasonable efforts to identify or obtain an
alternative provider or bidder for the goods or services.
D. Notwithstanding the requirements of this chapter,
where there exists an emergency situation involving a
threat to public health, welfare or safety, the purchasing
agent may authorize requisitions for expenditures without
first complying with the proposal or bid provisions of this
chapter. In the event of any such emergency situation, the
purchasing agent shall assure that the terms of purchase
are as competitive and favorable to the city as practicable
under the circumstances.
E. When a bid/quote is submitted by a local vendor,
and the bid/quote is not the lowest bid/quote received by
the city, a preference may be granted to local providers of
products and services if the following conditions are met:
1. "Local vendor" is defined as a licensed
business or individual whose business is located within
Grand County or within a twenty mile radius of Moab city
limits;
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2. Requests for local's preference must be
submitted to the purchasing agent in writing prior to the
purchase and are subject to approval. Requests for local's
preference for purchases not exceeding nine thousand nine
hundred ninety-nine dollars and ninety-nine cents will be
approved or denied by the purchasing agent. Purchases in
excess of ten thousand dollars will be approved or denied
by the city council;
3. The total amount of the local's preference
cannot exceed more than five percent of the lowest
competitive bid/price received;
4. The total amount of the local's preference
cannot exceed twenty-five thousand dollars for a given
project/product;
5. The granting of a local's preference is
subject to the budget constraints of the specified project
or product.
F. State of Utah Contract. If a state contract is
in place for the item or service that the department is
purchasing then there is no need to solicit bids or
quotations. The department should use state contracts when
available and when they meet pricing and service
requirements. However, it is the option of the department
head as to whether or not to use a state contract. This
exception must be approved by the purchasing agent prior to
the purchase being made or negotiated. If the department
decides not to use the state contract the appropriate
bid/proposal process described above must be followed.
G. Procurements by procedures other than as
specified in this chapter shall be allowed only upon good
cause shown, and by approval of the city council. (Ord.
06-09, 2006: Ord. 05-04 (part), 2005)
2.28.050 Purchasing procedure --Certification and approval
of bills.
The purchasing agent shall receive all bills for
supplies, materials and labor furnished upon order issued
by him and shall certify to their correctness as to price,
extension and totals. S/he shall present the same to the
heads of the departments receiving such supplies, materials
or labor for certification and approval, and when so
certified and approved, the bills shall be presented to the
city council for approval and shall then be paid as other
bills of the city. (Prior code § 2-54)
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2.28.060 Responsibility for supplies and equipment.
The purchasing agent shall be responsible for the care
of all stock purchased by him, and shall issue the same
upon requisition approved in writing by the heads of the
several departments, or by such employees as may be
designated in writing by the heads of departments. S/he
shall charge to the departments the supplies so furnished
at their cost price, and shall render monthly statements to
the heads of the departments of the amount charged to the
respective departments. S/he shall also present to the
city recorder monthly statements showing the total cost of
supplies furnished to each department from stock on hand,
and the amount thus stated when certified to be correct by
the heads of the several departments shall be charged to
funds appropriated for the use of such department. All
books, blanks and forms pertaining to the accounting system
of the city shall be submitted to the city recorder and
approved by him before being purchased by the purchasing
agent; and the purchasing agent shall from time to time,
submit to the city council requisitions and estimates for
supplies necessary to be carried in stock for use of the
several departments of the city. (Prior code § 2-55)
2.28.070 Records to be kept.
The purchasing agent shall keep books of record of all
purchases made by his department, and of all contracts let
under the provisions of this chapter. (Prior code § 2-56)
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