All competitive bids or quotations received shall be recorded and maintained in the office of the City Manager for a minimum of two years after audit. When requisitions are required, the competitive bids or quotations received shall be listed upon that document prior to the issuance of the purchase order.
(A) Preference to local dealers. In the purchasing of supplies, materials, equipment and services for the city's requirements, preference shall be given those dealers having stores or warehouses within the city; price, quality, delivery and service being equal.
(B) Federal excise tax. The city is exempt from the payment of excise taxes imposed by the federal government, and suppliers should be requested to deduct the amount of the taxes from their bids, quotations and invoices.
(C) Standardization requirements. Important economies can be effected through standardizing supplies and materials that can be purchased in large amounts. Thus, department heads should adopt as standards the minimum number of quantities, sizes and varieties of commodities consistent with successful operation. Where practical, materials and supplies should be purchased on the basis of requirements for a six-month period.
(D) Inspection of deliveries. No invoices for supplies, materials or equipment shall be accepted for payment until the supplies, materials and the like have been received and inspected by the department head.
(E) Correspondence with suppliers. Copies of any correspondence with suppliers concerning prices, adjustments and defective merchandise shall be forwarded to the Finance Department. All invoices, bills of lading, delivery tickets and other papers pertaining to purchases shall be sent to the Finance Department.
(F) Claims. The City Manager shall prosecute all claims for shortages, breakages or other complaints against either shipper or carrier in connection with shipments.
(G) Public inspection of records. The City Clerk's office and Finance Department shall keep a complete record of all quotations, bids and purchase orders. The records shall be open to public inspection.
(H) Prohibition of contracts with municipal officers. State laws governing doing business with officers of the city are:
(1) T.C.A. § 6-54-107, Interest of officer in municipal contracts prohibited.
(a) No person holding office under any municipal corporation shall, during the time for which he or she was elected or appointed, be capable of contracting with the corporation for the performance of any work which is to be paid for out of the treasury. Nor shall the person be capable of holding or having any other direct interest in a contract.
DIRECT INTEREST means any contract with any business in which the official is the sole proprietor, a partner, or the person having the controlling interest. CONTROLLING INTEREST shall include the individual with the ownership or control of the largest number of outstanding shares owned by any single individual or corporation.
(b) No officer in a municipality shall be indirectly interested in any contract to which the municipality is a party unless the officer publicly acknowledges his or her interest and excuses himself or herself from any of his or her duties which include the consideration of, voting on or overseeing the particular contract.
INDIRECTLY INTERESTED means any contract in which the officer is interested but not directly so, but includes contracts where the officer is directly interested, but is the sole supplier of goods or services in a municipality.
(2) T.C.A. § 12-4-101, Personal interest of officers prohibited.
(a) It shall not be lawful for any officer, committee member, director or other person whose duty it is to vote for, let out, overlook or in any manner to superintend any work or any contract in which any municipal corporation, county, state, development districts, utility districts, human resource agencies and other political subdivisions created by statute shall or may be interested, to be directly interested in any contract.
DIRECTLY INTERESTED means any contract with the official himself or herself or with any business in which the official is the sole proprietor, a partner or the person having the controlling interest. CONTROLLING INTEREST shall include the individual with the ownership or control of the largest number of outstanding shares owned by any single individual or corporation.
(b) It shall not be lawful for any officer, committee member, director or other person whose duty it is to vote for, let out, overlook or in any manner to superintend any work or any contract in which any municipal corporation, county, state, development districts, utility districts, human resource agencies and other political subdivisions created by statute shall or may be interested, to be indirectly interested in any such contract unless the officer publicly acknowledges his or her interest.
INDIRECTLY INTERESTED means any contract in which the officer is interested, but not directly so, but includes contracts where the officer is directly interested, but is the sole supplier of goods or services in a municipality or county.
(I) Designee. When a position such as City Manager, Finance Director, City Clerk or department head is mentioned herein, their assistants or designees are included as if they also were written thereafter; provided that, persons holding these positions have designated others to carry out the duties.
(J) Definitions. (Municipal Purchasing Law of 1983 as amended).
ARCHITECT OR ENGINEER REQUIRED. Plans, specifications and estimates for any public works project or improvement must be prepared by a registered architect or engineer as required by T.C.A. § 62-2-107.
CONTRACTUAL PURCHASES. The materials, supplies or services which are constantly needed for city operations will be taken on a formal bid and will be awarded by the City Council for a contract period determined to be in the best interest of the city. These purchases supersede bidding requirements, but not budgetary restraints, even if the purchases total over the bid threshold at one or several times throughout the year.
CUSTOMARILY PURCHASED. That which is regularly purchased under specific circumstances which would be considered reasonable and appropriate. (Example: After two consecutive years; then, not required after two consecutive years of not attaining the total amount of $2,500.)
DELINQUENT DELIVERY. Once the Finance Department has issued a purchase order, no follow-up work is done unless the using department advises the item has not been received. Upon this notification, the Finance Department will initiate action, either written or verbal as time allows, to investigate the delay. The using department will be advised of any further problems or a revised delivery date.
INSPECTION AND TESTING. When deemed necessary, the City Manager may cause to be inspected all deliveries of supplies, materials, equipment or contractual services to determine their performance with the specification set forth in an order or contract. The City Manager may require chemical and physical tests of materials submitted with bids and delivery samples, or after products have been delivered, to determine their quality in conformance with specifications. In the performance of the tests, the City Manager may make use of laboratory facilities of any outside laboratory.
ITEMS COVERED BY WARRANTY OR GUARANTEE. The city acquires many items which have a warranty or guarantee for a certain length of time, such as tires, batteries, water heaters, roofs and equipment. Before these items are repaired or replaced, the City Manager should be consulted to see if the item is covered by a warranty or guarantee. The City Manager shall maintain an active current file with complete information on the warranties or guarantees. All warranties must be remitted to the City Manager with the invoice indicating date of receipt.
LIKE ITEMS. Those items that are similar and may be purchased at the lowest common denominator, such as size, color and the like.
LOT. A single grouping of like items to be purchased at one time.
PERFORMANCE AND BID BONDS. Performance, payment and bid bonds may be required as may be deemed appropriate by the city charter, City Manager or the City Council.
PROPRIETARY PRODUCT. A brand-name product made and marketed by one having the exclusive right to manufacture and sell.
SALE OF SURPLUS PROPERTY.
(a) When a department head determines that there is surplus equipment or material within the department, he or she shall notify the City Manager in writing of any equipment or materials. The City Manager will determine the best method of disposal of those items with an estimated value of less than $5,000 and instruct the department head as to the disposal method. Following approval by the City Council, items with an estimated value of $5,000 or more shall be disposed of by one of the following methods:
1. As a trade-in on the purchase of new equipment;
2. Advertised and bids received by the rCity Manager;
3. Transferred from one department to another; or
4. Sold at public auction.
(b) If sold by sealed bid or at auction, the equipment or material shall be sold to the highest bidder.
(c) The Finance Officer shall be notified of any transfer or sales.
SIGNATURES. Contracts, applications for title, tax exemption certificates, agreements and contracts for utilities shall not be signed by any city employee unless authorized in writing by the City Manager or by action of the City Council.
SINGLE SOURCE OF SUPPLY. The availability of only one vendor for a product or service within a reasonable marketable distance of the city.
TRADE-INS. List of equipment to be used as trade-in shall accompany the request and specifications. The list includes the model, year, serial and city tag numbers and other pertinent data.
WITHIN THE LIMITS OF THE APPROVED BUDGET. Purchases must be held within appropriation limits in those funds requiring budgets either by law, regulation or policy.
(Ord. 1024, passed 5-7-2004; Ord. 1296, passed 4-12-2011; Ord. 1693, passed 3-14-2023)