RESOLUTIOKNO. 12-5-1 MODIFYING

RESOLUTIOKNO.
12-5-1
MODIFYING ESTABLISHED PURCHASING PROCEDLms
WHEREAS, Kaysville City has es-tablished purchasing procedures and desires to modify said
procedures and adopt the procedures by Resolution.
BE IT RESOLVED BY THE KAYSVILLE CITY COUNCIL:
The City Council hereby adopts modified Kaysville City Purchasing Procedures, attached hereto as
Exhibit A - Kaysville City Purchasing Procedures.
APPROVED A.'\ffi ADOPTED this 1st day of May, 2012.
Steve A. Hiatt
Mayor
ATTEST:
City Recorder
KAYSVILLE CITY
PURCHASIKGPROCEDURES
ESTABLISHED PROVISIONS
Pursuant to Utah Code Annotated Sectionl0-6-1 22 and other pertinent provisions of the State of
Utah, there is hereby adopted and established a procurement system (purchasing procedure) for
Kaysville City which shall be based on the following:
Section A.
Definitions
Unless the context requires otherwise, the ter:ns used in the Purchasing Procedures, or the rules
and regulations adopted pursuant to the Purchasing Procedures shall have me folloViing
meanings:- - - - ·- --- - - - - - - --I.
"Services" - the fu.111ishing o: labor, time, or effort by a contractor, not involving the
delivery o: a specific end product other than reports which are merely incidental to the
required performance. This term does not include employment agreements or
professional services.
2.
"Professio:ial Services" - includes but is :.ot li.niJ~ed to professional services for a:iditing,
banking, insurance, engineering, architectural services and other forms of consulting.
3.
"Suonlies. Materials. and Eauinment" - the specific end product(s) identified in a
Purchase Requisition, or specification prepared oy the City.
4.
"Resoonsive Bid"- an offer, submitted by a Responsible Bidder to furnish SU?phes,
material, equipme::it or services in confor::nity with the specificatio::i, delivery terms and
conditions and other requirements included in the invitation for bids.
5.
Responsible Bidder" - a bidder who submits a responsive bid; who has furnished, when
requested, information and data to provide that his financial resources, production or
service facilities, service reputation ar.d experience are adequate, for the contractual
services or work on which he bids; and who has not violated or attempted to violate any
provisions of the Purchasing Procedures.
6.
"Local Bidder" - a firm or individual who regularly maintaDS a place of business and
tra'lsacts business in, or maintains an inventOI)' of merchandise for sale in, or is licensed
by, or pays business :axes to, Kaysville City.
7.
"Estimates of Requfrements" - forecasts of future requirements of supplies, equipment, or
contract_uaI· services submitted by City Departments upon request of the City Manager or
his designee.
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8.
"Purchase Requisition" - standard forms used by depanmems providing detailed
informatfon as to quantity, description, price, supplier and signature authorization for
purchases. These are also knov.n as purchase orders.
9.
"Adequate Appropriation Balance" - sufficient fund balance which must exist in the lice
item appropriation of the account against which the purchase is to be charged.
10.
"Public Pronertv" - any item of real or personal property owned by the City.
11.
"Department Head" - The person who administers a department of the City or his
designee specified in writing. This also includes the City Manage!'.
12.
"Surolus Propertv" - Any item of personal properry or parcel of real property O\v:1ed by
the City that has been declared surplus by the City Council.
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Section B.
Administration
The City Manager or his designee, as the Purchasing Agent, shall administer the Purchasing
System. The City Manager shall perfomi the duties and tave powers conce:ning procurement as
fo!lows:
1.
Adm:nister and maintain the procurement syster.:i as provided herein, and in accordance
with any rules and regulations established by the City.
2.
Recommend to the City Council fro:n :ime to time such new or revised procureme:it lllles
and regulatio:is as are desirable and iI: conformance with other statu:ory requirements.
3.
!nterpret tbe provisio:is of these procedw-es and appbcable statutes.
4.
~egotiate and recommend exec'Jtion o: contrac:s for the purchase of improveme::ts,
supplies, materials, equipment, services and professional services.
5.
Seek to obtain as full and open competition as reasonably possible on all purchases of the
City.
6.
Keep informed o: current develo?.:nents in the field o: procurement, including but not
limited to market conditions and new products.
7.
Prescribe and maintain such forms as are reasonably necessary for the operation of these
purchasing procedures and other rules and regt:latior:s o:tlle City.
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8.
Supervise the inspection of and accounting for all supplies and equipmen: anong
departments as needed.
9.
Supervise and maintain a Bidders' List, Vendors' Catalog file and such other records as
are needed for the efficient operation of the procurement system.
Section C.
Acqu isition of Supplies, M aterials and Equ ipm ent
1.
Purchases or contracts for purchases of supplies, materials, or equipment where the
amount to be paid by the City is less than $50,000 must be approved by the City Manager
or his designee in accordance witl: established procedures.
2.
Purchases or contracts for purchase of supplies, materials or equip:nent costing the Ci'}·
$50,000 or more must be approved by the City Council.
3.
Open I!!arket p~ocedure s as set forth i ~ Sec~on D-2 may be used for purchases or
comracts for purchase of supplies, materials, or equipme:it costir.g the Clty less tha:i
$50,000. Notwithstanding the foregoing, the City Yfanager may require any purchase for
supplies, materials or equipment to be bid formally if, in his determination, such actions
would be in the best interests of the City.
4.
Formal bidding, as set fortl: in Section D-1 will be used for purchases or contracts for the
purchase of supplies, materials, or equipment whe:-e the cost to the City is $50,000 or
nore except as identified in C-5.
5.
For Class C roadway construction and maintenance as defined in Utal: Code§ 72-6-109,
shall meet the bidding requirer::ems 25 se: fo:tl:. as well as the procedures prescribed
}'ierein.
Section D.
Comp etitive Bidding R equirem ents
Except as hereinafter provided, purchases of supplies, equipment and the letting of contracts
shall follow one of the follo"ving procedures:
1.
Formal Contract Procedure
Except as otherwise provided herein, purchases of supplies, equipment or contractual
services of an estimated value of $50,000 or more shall be written by contract with the
lowest responsible bidder pursuant 10 the procedure hereinafter prescribed.
a.
Notice InvitinQ: Bids - Notices inviting bids shall include a general description of
the improvements, supplies, materiaJ.s, and equipment or services to be acquired,
shall s;:ate w!iere plans and spec:fications and other information may be secured,
and shall state the time and place for opening bids. Notices inviting bids shall be
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published in a newspaper of general circulation and also posted on a public
website.
2.
b.
Bid Ooening 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 notice inviting bids. A written
description of all bids received shall be available for public inspection during
regular business hou:-s for a period of not less than thirty (30) days after the bid
opening.
c.
Reiection of Bids - The City Council reserves the right to rejec: any and all bids
for any reason. All notices calling for bids should so state. If all bids are rejected
and the City Council decides to make the improvement o:- acqui!e the supplies,
materials, equipoent or services, it shall advertise anew in the same manner
provided herein, no bid shall be received that is not satisfactory, the Ci:y Council
may proceed to negotiate or make the improvemc;'.nt or acquisition or e:iter such
other agreements 2.5 it deems necessary or desirable.
d.
Aw:>rd of Contracts - Except as otl:erwise provided hereil:, it is the inte:ition of
the City Council to award the contract to the lowest responsive bidder.
e.
Tie Bids - If two o:- more bids received are for the same total amount or unit price,
quality and service being equal, and if the public interest will not permit the delay
or re-advertising for bids, the City Council shall accept the lowest bid oade by
a::id after negotiation with the tie bidders after the time of the bid opening.
f.
Performance Bonds - Befo:-e e:uering a contrac:, the City Council shall have
authority to require performance and payment bonds to be provided in such
amounts 2s it shall find reasonably necessary to protect the best inte:-ests of the
City and as required by law. Tne :orm and anount of said bonds shall be
described in the notice inviting bids.
Ooen Marke~ Procedure
Any purchase or acquisitio.:i of supplies, mate.:'.al, equipment, imp:-ove:nents, or services
of an estima~ed value of less thm $50,000 may be made without calling for formal bids.
All purchase requests over $5,000 require a solicitation of bids; requests with an
estiC'lated amount over $25,000 shall be noticed on the City website for at least one week.
These purchases or acquisitions shall be made pursuant to the procedure hereinafter
prescribed and wi::hout observing the procedu:-e prescribed in Sec:ion I l:ereo:.
a.
Minimum Number of Bids - Wherever possible, open market purchases shali be
based. on at least three price qeotations and shall be av»arded to the lowest
responsible bidder.
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3.
b.
Solicitation of Bids - Price quotations shall be provided m writing from
prospe~tive vendors.
c.
Use of Local Bidders - Departments will make every effon to use KaysvilleBusinesses and obtain non-formal bids or price quotations from Local Bidders.
At least one of the three price quotations will be requested from a Local Bidder if
available.
d.
Budizetarv Consideratio:ls -all pu:chases must conform to the annual budget and
there must be an adequate balance in the appropriation for the item or service to
be procured. A.ny substa11:ia1 deviation from the annual budget or any
appropria'ion thereunder shall be approved by the City Council.
Acquisition of Services
a.
Contracts foI.' _services cos!i:ig the Gity less tlian $_25;000 annually must be
approved and authorized by the City Manager or his designee.
b.
Contracts for services costing the City $25,000 or more annually must be
approved by the City Cou:icil.
c.
Acquisition procedures, as set forth in Section D-1 and D-2 will be used for all
con:racts :or services with the exceptio:::i of co:nracts for arcbtectural,
engineering, legal, computer programming, auditing, accounting and financial
advisory ~ervices or other professional or technical se:-vices. These types of
service contracts shall be negotiated for on the basis of demonstrated competence
and qualifica:ion and at fair anc reasonable prices. The City Council shall :eview
and approve any proposed contract with the Independent Auditor and shall review
the Independent Auditor's te:ins of engagement each year prio:- to the a:rnu?J
audit.
d.
The City Manager may requi:-e ar:!y acquisi:ions of services to be bid formally :£,
in his determination, such actions would be in the best interests of the City.
Section E.
1.
Exemp tions to Competitive Bidding Requirement
Contracts - Co:i:racts, wtich by their na:ure are not well suited to award by competitive
bidding, shall not be subject to the competitive bidding requirements of the Purchasing
Procedures. These co:itra~cs include, but are not lir::ited to the following: contracts for
:terns or services which may be purchased only from a single source; contracts for
additions to and repair anc maintenance of eq:iipment already owned by the City which
:nay be mo:-e ef5;ient1y added to, repaired or maintained by a certain person or firm; or
contracts for equipment which, by reason of the training of the personnel or an inve:i:ory
of replacement parts is compa:ible wi~h the existing equipment owned by the City.
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2.
Auction. Closeout Bankruotcv Sales - If the City Manager detennines that budgeted
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 City Council at a regular or
special meeting concurs fo such determination and makes a finding that a purchase at any
such auction or sale will be made at a cost be:ow the market cost in the community, a
contract ~ay be let, or the purchase made, without complying ¥:ith the competitive
bidding requirements of the Purchasing Procedures.
3.
Exchang:es of Suoplies. Ma:erials. or Eguioment - Exchanges of supplies, materials, or
equipment between the City and any other public agency or private party which are :iot
by sale o:- auction shall -be by mutual agreement of the respective public age:lcies or
private parties. Exchanges involving private parties require contractual approval of the
City Council.
Section F.
Use of Purchase Requisitions
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The City shall employ the use o: a purchase requisition:
1.
When any nate:fal, supply, equipment or service cos:ing S5,000 or more and the fo:-mal
contract procedure will not be followed; and
2.
When a pu:-chase requisition or purchase order is requested or required by a vendo:-.
Section G.
Interlocal A~e ements Autboriz i n ~ Contracts for Co mm odities or Services
The City shall have the power to enter into join~ purchase agreemen:s with any or all other public
age.:icies withi~ the Sta:e for the purc~ase o: any comnodity o:- service wherein it is determined
by the City Council to be in the best interest of the City.
Section H.
Disposal of Su rplus Proper tv or Leave of Public P roper tv
All disposals of public property of the City shall be mace, as nearly as possible, under the same
conditions and limitatio:is as required by the Purchasing Procedures in the purchase of public
property.
Section I.
Prohibitions
1.
Conflicts o: Interest - No member of the City Council or City employee may have an
undisclosed pecuniary interest, as per State law, directly or indirectly in any contract
entered into by the City. A violatior. of this p::-ovision shall be cause for rem:wa! or o:her
disciplinary ac:io.J.
2.
Collusion Among Bidders - Any agreement or collusion a'!long bidde:-s or prospective
bidders in restraint of competition by, an agreement to bid a fixed price, or otherwise,
shall render any such bids void.
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J.
Ethics - It is the intent of the City Council that procurement by Kaysville City :comply in
all respects v.~th the requirements of the law of the State of Utah relating to ethics and
employees' ·dealings with the City. Therefore, to the exte!lt applicable, the Utah
Municipal Officers' and Employees' Ethics .Act, lJtah Code A..nnotated Section 10-31301, et seq. .-., and the Ut~ P~blic Employees Ethics Act, Utah Code Annotated Section
67-16-1, et seq., are adopted herein by this reference.
Section J.
Purchases for Personal Use or Benefit
Any purchase of supplies or equipmen: by the City for the personal use of any official or
employee of the City is prohibited. Ar.y person who violates this requirement will be subject to
disciplinary action by the City.
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~I
~~
~-1!:1
I~ille
City
Purchasi11g
Ucp:uhuent U cad
Determines N <:ccl
Procedures
$0 to $5,000
1·
Or n Mar lc:ct Procedure
(D :partmcnt He::ids shall make
CV ry effo1 Lto obtain goods au<.1
services at lowest costs- whenever
>ssiblc p\1rchases sbonld be
1ased on price quotations)
Reviews .for bud net
comolinncc
I
Open M arkc l Proc·Nlure
lid s :u ul awnnl ('d to
siblc b id der
u rch ase llcq11 csl
!
___
$25,000
$50,000 &Up
F ormal Contract Pr ocednr e
- Reviewed by Cily Mana ger /Designcc
- Determine need to go lo fomrnl contract procedure
- Assess budget coostrnint s
r n rch usc h n
Jowc
"Vcb sitc
gt
.
~I
$5,000 to $50,000
I
I
1. Appxoval of Specifications
2. Adve1tising/Notice Inviting Bids
3. Bid Opening Procedures
- Opened iu public nt d~signated place
4 . Acceptnnce/ Rejection lbfllids
Council reserves i-ight to reject any
and nil bids
5. Pei fo1 mnnce And l'nynient Douds
-
.
Council Awarrls Contrnct
Service Contracts ovc:r
S25,000 approved by Council
Order Acccpf cd
(Review & inspection made and invoices coded by
requesting deportment)
Exception s:
Emergency Expenditures
- One Sou1ct Supply
- Prnfcssional Services (auditing,
l nvoi ccs Processed
Clnims List Reviewed by Council
insurance, legal, engineering,
architectural, etc.)
- Purchase of cq11ipmcnt in excess of
$50,000 may be exempt from founal
contract proccd1ncs, li owever formal
bidding i s requi1 ed.
Checks rrcpared , _
Updated Aplil 2012