(A) Small purchases are hereby authorized for the procurement of necessary supplies, services, or construction when the cost or quality is such that any possible savings of public funds would not justify the time and expense necessary to follow the procedures under KRS 45A.365 (competitive sealed bidding).
(1) Purchasing requirements shall not be fragmented or artificially divided to avoid use of other source selection methods. Categories of supplies, services, or construction, reasonably anticipated to be required during a fiscal year shall be considered to be one procurement for the purpose of small purchase procedures. The contract may be for any period of time that will provide the most-beneficial market price to the city, provided no time period shall be fixed for the sole purpose of avoiding the requirements of competitive sealed bidding. In determining whether supplies, services, or construction are normally supplied as a unit, the test is not whether such supplies, services or construction are furnished by a particular vendor, but rather whether supplies, services, or construction are closely related in their function and use.
(2) Only those employees of the city who have been recommended by the Mayor (see § 33.25(B)) and a approved by the Council shall be authorized to make small purchases.
(3) Small purchases for construction services costing $1500 or less, and $500 or less for other purposes, may be made from any available source of supply without obtaining quotations. Small purchases in excess of the above limits, but less than $7500, may be made only after informally obtaining three or more price quotations from responsible sources.
(4) KRS 45A.345 through KRS 45A.455 shall apply to all small purchases and are incorporated herewith for specific notice to small purchasing agents, vendors and the general public.
(B) Definitions of terms used in KRS 45A.445 to 45A.460. As used in KRS 45A.445 to 45A.460, the following terms shall have the meanings given, unless the context indicates otherwise:
(1) CONSPICUOUSLY. Written in such special or distinctive format, print, or manner that a reasonable person against whom it is to operate ought to have noticed it.
(2) CONFIDENTIAL INFORMATION. Any information which is available to an employee only because of his status as an employee of the local public agency and it is not a matter of public knowledge or available to the public on request.
(3) DEBARMENT. The disqualification of a person to receive incitations for bids or requests for proposals or the award of a contract by the local public agency for a specified period of time.
(4) FINANCIAL INTEREST.
(a) Ownership os any interest or involvement in any relationship from which, or as a result of which, a person has, within the past three years, received or is presently or in the future entitled to receive more than $1,000 per year, or its equivalent; or
(b) Ownership of more than 10% interest in any business; or
(c) Holding a position in a business such as an officer, director, trustee, partner, employee, or the like, or holding any position of management.
(5) GRATUITY. A payment, loan, subscription, advance, deposit of money, services, or anything of more than $50 in value, present or promised, unless consideration of substantially equal or greater value is received.
(6) IMMEDIATE FAMILY. A spouse, children, grandchildren, parents, grandparents, brothers, sisters, and such other relatives as designated by the local public agency.
(7) OFFICIAL RESPONSIBILITY. Direct administrative or operating authority, whether intermediate or final, either exercisable alone or with others, wither personally or through subordinates, to approve, disapprove, or otherwise direct local public agency actions.
(8) SUSPENSION. The disqualification of any person to receive invitations for bids or requests for proposals or to be awarded a contract by a local public agency for a temporary period, pending the completion of an investigation and any legal proceedings that may ensue.
(C) Statement of public policy.
(1) Public employment is a public trust.
(2) It is the policy and purpose of KRS 45A.345 to 45A.460 to promote and balance the object of protecting government integrity and o$ facilitating the recruitment and retention of personnel needed by local public agencies by prescribing essential restrictions against conflict of interest without creating unnecessary barriers to public service and by facilitating development of fair and competitive access to local public agency purchasing by responsible contractors.
(3) Employees must discharge their duties and responsibilities fairly and impartially. They should also maintain a standard of conduct that will inspire public confidence in the integrity of the government of all local public agencies.
(4) The following letter shall be included in all invitations to bids, noncompetitive negotiations as far as price quotes or quotations of discounts is concerned.
Dear Sirs:
The following is in accordance with KRS 45A.455:
1. It shall be a breach of ethical standards for any employee with procurement authority to participate directly in any proceeding or application; request for ruling or other determination; claim or controversy; or other particular matter pertaining to any contract or subcontract and any solicitations or proposal therefor, in which to his knowledge:
a. He, or any member of his immediate family has a financial interest therein; or
b. A business or organization in which he or any member of his immediate family has a financial interest as an officer, director, trustee, partner, or employee, is a party; or
c. Any other person, business or organization with whom he or any member of his immediate family is negotiating or has an arrangement concerning prospective employment is a party. Direct or indirect participation shall include but not be limited to involvement through decision approval, disapproval, recommendation, preparation of any part of a purchase request, influencing the content of any specification or purchase standard, rendering of advice, investigation, auditing, or in any other advisory capacity.
2. Is shall be a breach of ethical standards for any person to offer, give or agree to give any employee or former employee, or for any employee or former employee to solicit, demand, accept, or agree to accept from another person, a gratuity or an offer of employment, in connection with any decision, approval, disapproval, recommendation, preparation of any part of a purchase request, influencing the content of any specification or purchase standard, rendering of advice, investigation, auditing or in any other advisory capacity in any proceeding or application, request for ruling or other determination, claim or controversy, or other particular matter, pertaining to any contract or subcontract in any solicitation or proposal therefor.
3. It is a breach of ethical standards for any payment, gratuity or offer of employment to be made by or on behalf of a subcontractor under a contract to the prime contractor or higher tier subcontractor or any person associated therewith, as an inducement for the award of a subcontract or order.
4. The prohibition against conflicts of interest and gratuities and kickbacks shall be conspicuously set forth in every local public agency written contract and solicitation therefor.
5. It shall be a breach of ethical standards for any public employee or former employee knowingly to use confidential information for his actual or anticipated personal gain, or the actual or anticipated personal gain of any other person.
The City of Warsaw and its purchasing officers are in accordance with and abide by this section of the Model Procurement Code.
Sincerely,
Mayor
City of Warsaw
(Ord., passed 3-3-80)