7-1A-1: Objectives Of Purchasing System
7-1A-2: Duties Of City Manager
7-1A-3: Purchasing Procedures Designated
7-1A-4: Competitive Bidding; Purchasing Committee
7-1A-5: Purchase Orders
7-1A-6: Change Orders
7-1A-7: Receiving Reports; Partial Report
7-1A-8: Invoices
7-1A-9: Exceptions To Purchasing Procedures
7-1A-10: Disposal Of Surplus And Obsolete Property
7-1A-11: Disposal Of Items In Custody Of Police
   The objectives of the city purchasing system shall be as follows:
   A.   To procure materials, supplies, equipment and services other than professional, at the lowest cost consistent with the quality and service rendered;
   B.   To establish clearly the responsibility for the purchasing function in the office of the city manager;
   C.   To exercise positive financial control over purchases;
   D.   To provide an efficient means for procurement of materials, supplies or equipment which avoids duplication and overstocking; and
   E.   To establish and maintain standards of quality in materials, supplies, equipment and services, other than professional, based on suitability for use. (2000 Code § 7-101)
   A.   Generally: The city manager shall have the responsibility for the following:
      1.   Establishing specifications of the equipment, materials, supplies or services to be purchased. The city manager shall consult with the various departments concerned, but the determination of the quality of the goods to be purchased shall rest with the city manager.
      2.   Signing all contracts for services other than professional which may be necessary for any of the city departments or agencies.
      3.   Assuring scheduled buying for items which are used on a volume basis by the city. Departments shall comply with schedules distributed so that the city manager can consolidate many departmental requests for common use items into one large purchase.
   B.   Contracts Between Vendors And City: All contacts between the city and the vendors' representatives shall be through the city manager. Departments which correspond directly with a vendor on a technical matter concerning items to be purchased shall forward copies to the city manager. (2000 Code § 7-102)
   The procedures in sections through 7-1A-8 of this article are prescribed for obtaining materials, supplies, equipment or services other than professional for the city. (2000 Code § 7-103)
   A.   Bidding Required; Exceptions: All items purchased shall be subject to competitive bidding except those exempted by the city council. (2000 Code § 7-104)
   B.   Solicitation Of Formal Bids: The city manager shall solicit bids on all purchases costing more than five thousand dollars ($5,000.00). Items costing more than ten thousand dollars ($10,000.00) shall require the submission of written, sealed formal bids by the vendor. Telephone bids may be obtained for items costing less than ten thousand dollars ($10,000.00). Whenever feasible, at least three (3) bids shall be solicited on each item subject to formal bidding. The city manager shall have the authority to approve purchases not to exceed ten thousand dollars ($10,000.00). (Ord. 1172, 1-13-2015)
   C.   Nonconforming Bids: Bids not complying with the delivery terms and conditions and the specifications will not be considered eligible.
   D.   Authority To Reject Bids: The city manager may reject any or all bids if he determines that acceptance of the bids would not be in the best interests of the city.
   E.   Time And Place Of Opening Formal Bids: All formal bids will be opened at the time and place specified on the inquiry form and read in public. All bidders or interested parties may attend the bid opening. A tabulation of all bids received shall be available for the inspection of any interested party.
   F.   Awarding Of Bids; Factors Involved: The city manager shall make the award to the lowest and best bid. In determining the lowest and best bid, the city manager shall consider other factors beside price. These factors shall include, but not be limited to: the trade-in value of specific makes of equipment as opposed to another; the life expectancy of the items to be purchased; the maintenance costs of varying models of vehicles and equipment; the experience and reputation of the bidder and manufacturer and any previous business dealings which the bidder has had with the city; and the quality and adaptability of the supplies or contractual services which are bid to the particular use required.
   G.   Additional Purchases After Bid Acceptance: The city manager may, for ninety (90) days following the bid date, purchase additional quantities of materials, supplies or equipment for which he has previously established the lowest and best bid, by referring to the particular bid and confirming the existing price with the vendor.
   H.   Purchasing Committee: The city manager, director of finance and city attorney shall comprise the city purchasing committee. This committee shall meet on call of the city manager and will resolve contested bids or bids where the city manager is unable to determine which is the lowest and best bid. (2000 Code § 7-104)
   A.   Vendor Authorization: The purchase order is the vendor's authorization to ship the equipment, materials or supplies as specified thereon. It constitutes the contract between the city and the vendor. (2000 Code § 7-105)
   B.   Preparation Of Purchase Orders; Form: All purchase orders shall be prepared in the office of the city manager. The city manager shall submit all purchase orders and contracts prior to the time the commitment is made, to the city clerk, who shall, if there be an unencumbered balance in the appropriation made for that purpose, so certify in such form as provided by the city manager; provided, in instances where it is impossible to ascertain the exact amount of expenditures to be made at the time of recording the encumbrance, an estimated amount may be used and the encumbrance made in the like manner as set forth above. Provided, no purchase order or contract shall be valid unless signed and approved by the city manager and certified as above set forth by the city clerk. The city clerk shall retain and file one copy of the purchase order. (2000 Code § 7-105; amd. Ord. 1079, 4-8-2008, eff. 5-8-2008)
   C.   Submitting Invoice; Council Approval: After satisfactory delivery of the merchandise or completion of the contract, the supplier shall deliver an invoice. Such invoice shall state the supplier's name and address and must be sufficiently itemized to clearly describe each item purchased, its unit price, where applicable, the number or volume of each item purchased, total price, the total of the purchase, and the date of the purchase. The appropriate municipal officer shall attach the itemized invoice, together with delivery tickets, freight tickets, or other supporting information, to the original of the purchase order and, after approving and signing the original copy of the purchase order, shall submit the invoices, the purchase order, and other supporting data for consideration for payment by the city council. The city council shall approve such invoices for payment in the amount the board determines just and correct.
   D.   Items Not Requiring Council Approval: Notwithstanding the foregoing, prior approval by the city council will not be required for the following:
      1.   Gross payroll, within appropriations set by the city council;
      2.   Payroll withholding and other benefits, within appropriations set by the city council;
      3.   Contractual payments when the contract has been approved by the city council; and
      4.   Utility service payments.
   E.   Consent Agenda For Invoice Approval: All invoices, other than those listed herein, shall be approved prior to payment by the city council, through approval in the consent agenda of a departmental claims list. (2000 Code § 7-105)
   The change order is used to change, correct or cancel any order. Change orders will be prepared in the office of the city manager, using a standard purchase order form, but will not be used to purchase items which were not contemplated in the original bid inquiries. (2000 Code § 7-106)
   A.   Procedure Concerning Receiving Report: The receiving report is a copy of the purchase order which informs the city manager that items listed on the purchase order have been received and are of the specified quantity and quality. The using department will inspect materials upon their receipt, and the receiving report will be signed by the department head and forwarded promptly to the city manager. Any variation in quantity shall be noted on the receiving copy of the purchase order. If the materials delivered are not in conformity with the specifications or for other reasons are not acceptable to the using department, they shall notify the city manager of the reasons for withholding acceptance. The city manager will notify the vendor that his delivery has been rejected and will order him to make a satisfactory replacement or a supplementary delivery.
   B.   Partial Report: A partial receiving report is a form which will inform the city clerk that part of the items listed on the purchase order have been received. The processing of this form will allow partial payments which are necessary to obtain certain cash discounts. (2000 Code § 7-107)
   A.   Statement Of Charges: An invoice is the vendor's statement of his charges against the city for materials or services rendered. Invoices are based on purchase orders and must contain substantially the same information.
   B.   Verification: Upon receipt of the invoice by the office of the city clerk, it will be checked against the purchase order and the receiving report. After this verification, the city clerk will sign the invoice indicating approval and forward it to the department of finance for payment. (2000 Code § 7-108)
   The following subsections are the only allowable exceptions to the city purchasing procedures: (2000 Code § 7-109)
   A.   Emergency Purchases:
      1.   In emergency situations, the department heads may authorize the purchase of necessary items if, to the best of their knowledge, the account to be charged has a sufficient unencumbered balance for the amount of the purchase. These purchases may be made directly from the vendor without a purchase order. "Emergency situations" shall be defined as situations in which operation of the department would be seriously hampered, or when the protection and preservation of public properties would not be possible, by submitting a requisition in the usual manner.
      2.   For emergency purchases necessary during normal working hours, the department will notify the city clerk, who will give verbal approval of the transaction and furnish advice as to the best source for the item in question. The city clerk will also furnish the department with a purchase order number for the items to be purchased. This number will be stated to the vendor as evidence that the purchase has been approved by the city and for reference on the vendor's invoice to the city.
      3.   If an emergency occurs at times other than normal working hours, the using department may purchase directly the commodities needed.
      4.   At the time of the purchase, the department will secure from the vendor a sales ticket or invoice for the material. A requisition will be made out in the usual manner, except that it will be noted as "an emergency purchase". If a purchase order number has been assigned, this number will be referenced on the requisition. The nature of the emergency shall be given on the requisition or on an accompanying letter, if necessary. After review by the city clerk, a purchase order will be issued to the vendor. The vendor's copy of the purchase order will be marked, "Confirming. Do Not Reorder".
      5.   Emergency purchase orders, because they are usually more expensive, should be held to an absolute minimum and are not to be used to avoid competitive bidding. (2000 Code § 7-110)
   B.   Price Agreement Purchases:
      1.   The city manager or his designated representative will consolidate requests for materials, equipment, supplies or services which are needed by the city on an ongoing basis, for the purpose of obtaining bids on one large order. This will allow the city to capitalize on lower market costs for goods and services and further eliminate unnecessary warehousing, as the supplies may be obtained from the selected vendor at a specified price as they are needed. A price and delivery inquiry will be sent to the vendors, which will state an estimate of the probable needs for the commodity by the city over a certain specified time. (2000 Code § 7-111; amd. Ord. 1079, 4-8-2008, eff. 5-8-2008)
      2.   Upon the determination of the lowest and best bidder, the city clerk will inform the vendor selected of the city's acceptance of his terms. A contract will then be effected between the city and the vendor for the length of time specified in the bid inquiry.
      3.   Delivery is not to be made by the vendor until he receives a valid purchase order. (2000 Code § 7-111)
   C.   Public Auction Sales: Upon authorization by the city manager, the city may purchase items at public auction when he determines that a substantial savings may be realized over the current market price. The invoice for the sale will be attached to a "request for payment" form and forwarded to the finance department for prompt payment. (2000 Code § 7-112)
   Occasionally, a department may have materials or equipment which are surplus to their needs or which may have become obsolete. Surplus city property, other than real estate, which is to be sold, will be advertised for bids by the city manager. Property of value less than two thousand five hundred dollars ($2,500.00) may be sold by the city manager. Property of value in excess of two thousand five hundred dollars ($2,500.00) will be disposed of as directed by council action. (Ord. 1003, 12-13-2005)
   A.   Authority To Sell: The chief of police is authorized and directed, in accordance with applicable law, to sell goods or other personal property which has been confiscated or acquired in any manner by such department in the performance of its police duties, if such goods or property have remained in the possession of such police department for a period of at least ninety (90) days.
   B.   Time And Place Of Sale; Notice: The sale authorized herein shall be held whenever, in the judgment of the chief of police, there is sufficient amount of property to justify such a sale. Such sale shall be held in the police station of the city. Such sale shall be at public auction and notice thereof shall be given by the publication in a newspaper of general circulation in the city not less than ten (10) days prior to the date of the sale. Such notice shall specify the date and place of sale and refer generally to property to be sold which may be examined prior to the sale by prospective purchasers.
   C.   Disposition Of Funds: The proceeds of sales authorized and held under the provisions of this section shall be paid into the hands of the city clerk and become a part of the general funds of the city. (2000 Code § 7-114)
7-1B-1: Water And Sewer Fund Created
7-1B-2: Deposit Of Funds
7-1B-3: Annual Audit
   In accordance with section 1-3 of the city charter, a water and sewer fund is created and established. (2000 Code § 7-131)
   All revenues and expenditures which are pertaining to and which are proper for the municipal water and sewer utilities will be separated from all other funds and accounts of the city and maintained and deposited in a special water and sewer fund or account, to be deposited and expended as all other funds of the city, all as provided by law pertaining thereto. (2000 Code § 7-132)
   At the time of the annual audit of the general accounts of the city, the funds of the water and sewer fund are to be audited and examined and the results of the audit and examination are to be included in and become a part of the annual audit report of the city. (2000 Code § 7-133)