(A) Formal bid procedures: Formal bids are published by the City Clerk with direct assistance from the using departments, as approved by the City Manager, in the preparation of technical specifications, plans, bid documents and drawings where required. The following steps are to be followed:
(1) The using department forwards appropriate memorandum and supporting documentation, including technical specifications, to the City Clerk. General terms and conditions, special instructions, and other bid package inserts are to be compiled by the using department with oversight by the City Manager.
(2) The final bid invitation is disbursed by the City Clerk. The City Clerk shall also advertise for bids and oversee the distribution of the bid package provided by the requisitioning department.
(3) Formal bids will be received and opened publicly at the specified date, time, and place set forth in the bid documents by the City Clerk and then tabulated on forms and submitted to the City Manager.
(4) All bids received and tabulated will be forwarded to the using department for review. The using department then prepares a written memorandum to the City Clerk containing their recommendations for award to the lowest and best responsible bidder meeting the city's specifications.
(5) Kentucky preference laws. KRS 45A.494 states that "prior to a contract being awarded to the lowest responsible and responsive bidder on a contract by a public agency, a resident bidder of the Commonwealth shall be given a preference against a nonresident bidder registered in any state that gives or requires a preference to bidders from that state. The preference shall be equal to the preference given or required by the state of the nonresident bidders."
(6) Local preference. The Model Procurement Code is supplemented to authorize a local preference in bidding as set out below when approved, listed on the bid document as authorized by a city commission. In an event the Board of Commissioners wishes to apply the local preference the bid document shall state "Local Preference shall apply" in the bid document and advertised as such.
(a) Definitions.
LOCAL BUSINESS ENTITY. Any person, corporation, limited liability company, partnership or other business entity complying with the following:
1. The business entity must be registered to do business in the city and have an established physical place of business within the city limits of the city; and
2. The location of the business must be properly zoned and shall not be a post office address; and
3. The business entity must not have any delinquent property taxes, net profit fees or occupational withholdings owed to the city or have any outstanding liens or fines due to the city; and
4. The business entity must have paid property taxes, net profit fees or employee withholdings to the city during the previous fiscal year in a total amount not less than five thousand dollars ($5,000.00).
(b) Certification of local business entity status. It shall be the responsibility of the local business entity to claim that status in writing at the time any bid is submitted. No preference shall be granted if city staff is unable to confirm the local business entity status.
(c) Applicability of the local preference. The local preference shall only be applicable to bids solicited and accepted by the city where the bid award amount is forty thousand dollars ($40,000) or greater.
(d) The local preference shall not be applicable to bids accepted by the city that:
1. Involve federal funds or other funds that prohibit the use of local preferences; or
2. Emergency purchases; or
3. Bids in which a preference has already been applied pursuant to any Commonwealth of Kentucky bidding regulations.
(e) Local preference.
1. The city may grant to a local business entities, who are a responsive and responsible bidder for applicable bids, a local bidding preference of up to ten percent (10%) of the local business entity’s bid, not to exceed five thousand dollars ($5,000.00) per item, over the amount of the lowest responsible bidder. In situations in which the bid is an evaluated bid, any local business entity qualifying for the local bidding preference shall be granted three (3) points to its total evaluation score due to a shorter delivery time, local service work and/or faster response time as long as the cost portion of its bid does not exceed up to ten percent (10%) of the cost portion of the lowest evaluated bid, not to exceed five thousand dollars ($5,000.00). The preference percentage shall be determined by the City Commission at the time the bid solicitation and bid specifications are authorized, approved and advertised.
2. If all aspects of a responsible bid from a local business entity are equal to the responsible bid from a non-local business entity, the local business entity may be preferred as decided by the City Commission. The local bidding preference is available only if the bid is awarded to the local business entity at the local address.
3. The local preference may be waived upon written justification and recommendation of the City Manager and approval of the City Commission.
(f) When the City Clerk receives the written memorandum, a full review of the award recommendations will be made for compliance with these policies and procedures; the City Clerk will resolve any award problems with the using department and secure appropriate authorization with the approval of the City Manager.
(g) The City Clerk reserves the right to reject any and all bids and to waive any informalities and minor irregularities in the bids with the City Manager’s approval. The City Manager may establish conditions under which incomplete bids may be considered if it is determined that such waiver is in the best interest of the city. Bids may be withdrawn only pursuant to the terms of the Model Procurement Code.
(B) Any and all other written policies and procedures that are inconsistent with this Manual are hereby amended to reflect the appropriate changes approved herein.
(Ord. 0-2013-08, passed 4-8-13; Am. Ord. O-2018-17, passed 8-27-18; Am. Ord. O-2020-10, passed 8-24-20; Am. Ord. O-2023-11, passed 6-26-23)