A. Open Market Procedures: All purchases, over five thousand dollars ($5,000.00), shall be made in compliance with open market procedures. Evidence of compliance with open market procedures must be maintained by the department making the purchase. Purchases below the open market procedures threshold may be made without competitive price quotations if the price is reasonable. Effort should always be made to obtain the best value for the product or services purchased.
B. Purchase Orders: All services, contracts, supplies, materials, and equipment of a value of more than ten thousand dollars ($10,000.00) shall be purchased with the authority of a written purchase order. Written documentation of compliance with open market procedures must accompany all purchase orders. Purchases that by their nature are made without a purchase order include travel reimbursements, training, airline reservations, hotel reservations, membership fees, maintenance contracts, and other written agreements. Other contracts or similar purchases may be exempted from the purchase order requirement with the authorization of the mayor and purchasing agent.
C. Annual Purchase Orders: Annual purchase orders may be established for standard goods and services ordered periodically by one or more departments throughout a fiscal year. Annual purchase orders are established by the purchasing agent at the beginning of a fiscal year and are valid for all purchases made during that fiscal year. Such items as pipe, fencing material, gravel, concrete, etc., are applicable. An annual purchase order may be established for a specific vendor and is only good for those specific items listed on the purchase order.
D. Formal Competitive Bidding: If the purchase price exceeds one hundred thousand dollars ($100,000.00), formal competitive bidding procedures shall be used unless such purchases are made for an inventory warehouse. Inventory warehouse purchases can be made using open market procedures. The purchasing agent shall call for competitive bids by giving reasonable notice of the city's intent to receive sealed bids, describing therein the requested property or services needed, and the place where bid blanks and specifications may be obtained as well as the place, date and time when bids will be received and/or opened. In the case of CMGC, formal bidding procedures may be performed by the selected contractor under the direction of the purchasing agent.
1. Publication Of Notice: Unless otherwise required by state law, bids may be invited by one or more of the following: a single publication in a local newspaper, by mailing invitations to interested qualified bidders, electronic notification (facsimile or e-mail) to interested vendors, posting of the bid or proposal package on the city website, or posting of the bid or proposal package on an online procurement notification system selected by the purchasing agent. A minimum of three (3) bidders, where applicable, will be solicited. Bids are accepted in a manner determined by the purchasing agent.
2. Firm Bids: All bids submitted to the city shall be open for acceptance for a period of ten (10) days following bid openings.
3. Rejection Of Bids: The city may reject without cause any or all bids and may readvertise for bids pursuant to the procedure described in this chapter.
4. Payment And Performance Bonds: Before entering into a contract the purchasing agent may require a one hundred percent (100%) payment and performance bond from the successful bidder. The bond must be furnished to the city purchasing division upon awarding of a contract. A payment and performance bond shall be required on public works construction projects.
5. Bid Bonds: The purchasing agent may require as a condition of bidding a bid bond or a cashier's check in lieu thereof in the amount of five percent (5%) of the amount bid. A bid bond may be required on public works construction projects. Note: The security mentioned above may be submitted in the form of a bond, certified or cashier's check or other security satisfactory to the city.
E. Award Of Bids: Except as otherwise provided in this chapter the city shall accept the bid of the lowest responsible bidder.
F. Award To Other Than Low Bidder: 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 department head and submitted to the purchasing agent and filed with the other papers relating to the transaction.
G. Noncompliant Purchases: Purchases that are not in compliance with the purchasing system must be documented in writing. The documentation must include the reason for the noncompliance and must be signed by the department head, and the mayor. Failure to follow the purchasing system may result in disciplinary action.
H. Bidder Eligibility: Bidders who are involved in a pending claim or litigation or have threatened same against the city may be disqualified from doing business with the city when determined to be in the best interest of the city. This disqualification may apply to a bidder or a subcontractor or supplier of the bidder.
(Ord. 23-34, 2023: Ord. 14-28, 2014)