A. As used in this section:
1. "Annual cumulative threshold" means the maximum total annual amount, established under subsection B1a of this section that the city may expend to obtain procurement items from the same source under this section.
2. "Individual procurement threshold" means the maximum amount, established under subsection B1b of this section, for which the city may purchase a procurement item under this section.
3. "Single procurement aggregate threshold" means the maximum total amount, established under subsection B1c of this section that the city may expend to obtain multiple procurement items from one source at one time under this section.
B. The city council may make rules governing small purchases, including:
1. Establishing expenditure thresholds including:
a. An annual cumulative threshold;
b. An individual procurement threshold; and
c. A single procurement aggregate threshold;
2. Establishing procurement requirements relating to the thresholds described in subsection B1 of this section; and
3. The use of electronic, telephone, or written quotes.
C. Expenditures made under this section by the city may not exceed the threshold, unless the mayor gives written authorization to exceed the threshold that includes the reasons for exceeding the threshold.
D. Except as otherwise expressly provided in this section, the city:
1. May not use the small purchase standard procurement process described in this section for ongoing, continuous, and regularly scheduled procurements that exceed the annual cumulative threshold; and
2. Shall make its ongoing, continuous, and regularly scheduled procurements that exceed the annual cumulative threshold through a contract awarded through another standard procurement process described in this chapter.
E. This section does not prohibit regularly scheduled payments for a procurement item obtained under another provision of this chapter.
F. It is unlawful for a person to intentionally or knowingly divide procurement into one or more smaller procurements with the intent to make procurement:
1. Qualify as a small purchase, if, before dividing the procurement, it would not have qualified as a small purchase; or
2. Meet a threshold established by rule if, before dividing the procurement, it would not have met the threshold.
G. A division of a procurement that is prohibited under subsection F of this section includes doing any of the following with the intent or knowledge described in subsection F of this section:
1. Making two (2) or more separate purchases;
2. Dividing an invoice or purchase order into two (2) or more invoices or purchase orders; or
3. Making smaller purchases over a period of time.
H. A person who violates subsection F of this section is subject to the criminal penalties described in section 63G-6a-408(8)(b), Utah code. (Ord. 2014-08, 8-5-2014)