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- Nephi City amends city purchasing ordinance and adopts updated purchasing policy
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By Myrna Trauntvein
Times-News Correspondent
Nephi City has amended the city purchasing ordinance and adopted an updated purchasing policy.
Council members agreed to strike one section of the administrative code of the city and, in its place, adopt the following: "The city administrator shall be the purchasing agent for the city. The city administrator may delegate some or all of the duties of the purchasing agent to other, responsible employees and will inform the governing body of such delegation. Purchasing activities of Nephi City are governed by a purchasing policy separately adopted by the governing body."
The new paragraph was adopted and became effective immediately.
Kasey Wright, city attorney, prepared the documents for the county to consider.
McKnight, as in current policy, remains the purchasing agent for the city.
The council agreed to amend the purchasing ordinance and also considered a written purchasing policy which is a new document.
"The purchasing policy will now be in a separate document," said Randy McKnight, city administrator.
The purchasing policy is designed to ensure fair and equitable treatment of all those who conduct business with the city and is to provide for the greatest possible economy in the city's procurement activities.
There are, as is the case in most purchasing ordinances, some exemptions. The policy will not prevent the city from complying with terms and conditions of any grant, gift or bequest and allow the city to comply with applicable federal law and regulations.
The purchase of library books, tapes, films, publications, periodicals and subscriptions are exempt but there will be a good-faith effort to purchase at competitive prices.
There is a list of definitions. One of those is "lowest responsible bidder" which means a person or firm who has the capability in all respects to perform fully the contract requirements and who has the integrity and reliability which will assure good-faith performance.
The ordinance also outlines the source selection and contract formation of purchases not requiring sealed bids.
"Purchases costing less that $1,000 in total shall not require any formal bid procedure," said McKnight.
The city will still seek the best price.
Purchases costing more than $1,000 but less than $5,000 total require telephone or written bids or quotations.
Purchases made through the cooperative purchasing contracts administered by the State Division of Purchasing are also exempt from the bidding process.
"Purchases made from a single-source provider are exempt if the purchasing agent determines that a service or product is reasonably available only from a single supplier or contractor," said McKnight.
Also exempt are supplies that can be purchased at public auctions, close-out sales, bankruptcy sales or etc. if it is determined that the item can be purchased below the market cost. This can even be done using the internet and used supplies can be purchased at a price advantage for the city.
Exchanges of supplies between the city and any other public agency will be by mutual agreement of the agencies involved and city employees can be used to complete city projects.
If a contractor has been hired by a person or entity other than the city and there is an established price for the type of work but the city can save on mobilization costs, then a contract may be negotiated.
If another governmental entity has, after a competitive bid process, contracted to purchase supplies from a particular vendor within the preceding 180 days, and the quoted price is the lowest available, the same supplier at the same price may be used.
"Purchases required during an emergency, i.e., an imminent threat to the public's health, welfare or safety, do not need competitive bid," said McKnight.
However, as much competition as practical should be obtained and purchases should be limited to the resolution of the emergency.
Contracts should be awarded by competitive sealed bidding, and invitation to bid will be issued with the pertinent information needed, any procurement by contract in excess of $10,000 requires a legal notice in a local newspaper, bids must be opened publicly in the presence of one or more witnesses, the amount of the bid and the bidder must be recorded and be open to public inspection.
Bids are to be unconditionally accepted except as authorized in the policy.
"An invitation for bids, a request for proposals, or other solicitation may be canceled, or any or all bids or proposals may be rejected, in whole or in part, as may be specified in the solicitation when it is in the best interests of Nephi City," said McKnight.
When the purchasing agency determines in writing that the use of competitive sealed bidding is either not practicable or not advantageous to the city, the contract may be entered into by competitive sealed proposals. These are most appropriately used for professional-service-type contracts.
The policy also considers the determination of the non-responsibility of the bidder and the fact that the cost-plus-a-percentage-of-cost contracts are prohibited.
The specifications, and appeals and ethics in public contracting are also discussed and planned for in the policy. |
