City of Maryville

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Chapter 150 Procurement Policy

SECTION 150.010:   GENERALLY

This manual establishes the rules, procedures and forms for the purchase of supplies and services for the City of Maryville, Missouri.  (R.O. 2008 §150.010; Ord. No. 7006 §1, 4-28-08)

SECTION 150.020:   RESPONSIBILITY FOR PURCHASING

This responsibility for purchasing resides with the City Manager and department heads.  The Finance Director and City Clerk are authorized to approve the purchase of supplies routinely used in the conduct of City business in the absence of the City Manager.  (R.O. 2008 §150.020; Ord. No. 7006 §1, 4-28-08)

SECTION 150.030:   PROCUREMENT

All matters pertaining to the procurement of supplies and services for the City shall be channeled through the various department heads, Finance Director and to the City Manager.  (R.O. 2008 §150.030; Ord. No. 7006 §1, 4-28-08)

SECTION 150.040:   FINANCE DIRECTOR -- DUTIES AND FUNCTIONS

The Finance Director shall be responsible for the following duties and functions with assistance provided by the City Clerk as necessary:

      1.   To purchase or contract for purchases of all current supplies and contractual services needed by the City.

      2.   To procure for the City the highest quality in supplies and contractual services commensurate with requirements at least expense to the City.

      3.   Encourage uniform bidding and endeavor to obtain as full and open competition as possible on all purchases and sales.

      4.   Keep informed of current developments in the field of purchasing, prices, market conditions and new products and secure for the City the benefits of research done in the field of purchasing by other governmental jurisdictions, national technical societies, trade associations having national recognition and by private business and organizations.

      5.   Prescribe and maintain such forms as are reasonable and necessary upon approval of the City Manager.

      6.   The Finance Director shall advise and assist the City Manager in formulation of policies and procedures in connection with the purchasing activities of the City.  (R.O. 2008 §150.040; Ord. No. 7006 §1, 4-28-08)

SECTION 150.050:   ETHICAL PRACTICE

All officers and employees of the City shall keep themselves free of any real or implied obligation by refusing to accept entertainment, gifts or services offered by or on behalf of suppliers or contractors currently or potentially serving the City.  (R.O. 2008 §150.050; Ord. No. 7006 §1, 4-28-08)

SECTION 150.060:   DEPARTMENT HEAD -- RESPONSIBILITIES

The department head is responsible for the following:

      1.   To purchase the best valued materials/services for the purpose intended.

      2.   To practice economy in the use of materials.

      3.   To maintain equipment in a serviceable condition.

      4.   To plan future purchases to provide ample time to secure favorable prices.

      5.   To insure compliance by employees with purchasing regulations and procedures.

      6.   To advise the Finance Director of supplies and services required for operations.

      7.   To combine like purchases and/or vendors within the same purchase order form as possible.  (R.O. 2008 §150.060; Ord. No. 7006 §1, 4-28-08)

SECTION 150.070:   PURCHASE OF COMMODITIES COSTING $1,000.00 OR LESS FROM LOCAL VENDORS

A.  Authority.  Department heads are authorized to purchase items that cost one thousand dollars ($1,000.00) or less without prior City Manager approval.  Department heads are expected to investigate the local market and select the item best suited to their needs by both quality and price.

B.  Invoice Necessary.  A copy of the purchase order or invoice signed by the department head will be delivered to the Finance Director as soon as possible after the purchase is made.  The department head shall insure that the invoice is to the City of Maryville and reflects the correct department and account code for which the purchase is made.  All employees are to insure that the vendor provides a legible and complete description of the item purchased on the invoice with identifying City purchase order number if such system is in place.  All invoices must be legibly signed by a representative of the City upon receipt of the item(s).

C.  Responsibility.  The department head will be responsible for the correct completion of items on the purchase order.  The department head shall sign all purchase orders for his/her department.  (R.O. 2008 §150.070; Ord. No. 7006 §1, 4-28-08)

SECTION 150.080:   PURCHASE OF COMMODITIES IN EXCESS OF $1,000.00

A.  Approval Required.  The City Manager's approval must be secured for all purchases in excess of one thousand dollars ($1,000.00).  Requests for purchases will be submitted by the department head to the Finance Director on a purchase order form.  An explanatory memorandum may be requested by the City Manager.  The approval of the City Manager will be secured on the purchase order form if such document is in place prior to ordering. 

      1.   Blanket purchase orders and price agreements.  Blanket purchase orders and price agreements which shall be approved by the City Manager are used in long-term situations.  The blanket purchase order or price agreement remains open for one (1) fiscal year to purchase the products or services specified on an "as needed" basis and awarded using a purchasing manner corresponding with the dollar amount.  It shall not be necessary to obtain competitive sealed bids or comparative prices for products covered under price agreements.

B.  City Council Approval.  City Council approval is required for any purchase in excess of five thousand dollars ($5,000.00).  Otherwise, the City Manager may approve purchases in excess of one thousand dollars ($1,000.00) up to five thousand dollars ($5,000.00).  (R.O. 2008 §150.080; Ord. No. 7006 §1, 4-28-08)

SECTION 150.090:   FORMAL VENDOR SELECTION METHODS

A.  Request For Quotation.  Normally, requests for quotations will be obtained in writing from vendors on a form supplied by the Finance Director.  The request for quotation form will show the following information:

      1.   Time and date quotations to be received.

      2.   Quantity and description of item desired.

      3.   Delivery point and date desired.

If time is an element or conditions merit, upon the approval of the City Manager, quotations may be solicited by telephone.  Telephone quotations shall be recorded on the appropriate form showing date, vendors called, names of persons submitting quotations, unit prices, terms and signature of person soliciting the quotes.  Quotations from three (3) vendors are usually sufficient to establish competition.  Written confirmation of all telephone proposals is required.  Failure to confirm the unit price may cause the proposal to be rejected.

B.  Formal Bid Procedure.  Formal bidding will be used for the purchase of major items or service.  Each prospective bidder will be furnished an invitation to bid, specifications and a bid proposal form.  The invitation to bid shall contain all information pertaining to terms of sale and delivery, deadline for submission of bid and place and time where bids will be publicly opened and read aloud.  Specifications for the desired quality and performance characteristics of an item or service shall serve as the basis for competitive bidding.  All bids must be submitted on the bid proposal form provided by the City.

C.  Where, When And How To Bid.  Advertisements for bids shall be placed in at least two (2)  newspapers of general circulation most likely to reach prospective bidders, may be advertised in at least two (2) weekly minority newspapers, may be provided through an electronic medium available to the general public and shall be provided on the City of Maryville website.  All advertisements shall be published no less than five (5) days before bids for such purchases are to be opened.  Additionally, the request for quotation shall be posted inside City Hall.  When deemed more advantageous, other methods of advertisement, including notice to minority business purchase councils, may be adopted by the City Council.  Bids from prospective suppliers may be delivered to the City Clerk by mail or other reasonable method generally available to the public.  It shall be the supplier's duty to insure that supplier's bid is delivered in such a way as to reach the City Clerk before the time set for opening bids.  The contract shall be awarded and let to the lowest and best bidder with the exception of Subsection (I), when applicable.  The City Council shall have the right to reject any or all bids and advertise for new bids or purchase the required supplies on the open market if they can be so purchased at a better price.

D.  Quotation Or Bid Summary.  Upon the return of the bid proposals or requests for quotations from the vendors, the department head will summarize the prices offered on a bid or quotation summary sheet and recommend to the City Manager, upon consultation with the Finance Director, the vendor to be chosen.

E.   Purchase Order.  The purchase order form will be used for all purchases.  One (1) copy will be forwarded to the vendor, if requested.  One (1) copy will be retained in the office of origin.  The original copy will be filed in the finance office.

F.   Transportation Charges.  All orders to suppliers will specify that transportation charges be prepaid by the supplier to point of delivery.

G.  Limits On Competitive Bids/Proposals. 

      1.   Competitive proposals/bids will be required on all those items that cost up to five thousand dollars ($5,000.00).  Proposals may be informal telephone quotations as directed by the department head.  Those items that cost more than five thousand dollars ($5,000.00) shall require formal bid procedures unless otherwise directed by the City Manager.  Written confirmation of price(s) shall be required as directed by the City Manager.  Proposals and competitive bid requirements may be waived, upon City Manager approval, if the items can only be acquired from a single firm, an inventory item protected by patents or proprietary interests, or if time is an element to be considered.

      2.   It is the policy of the City of Maryville to purchase products manufactured, assembled or produced in the United States rather than products manufactured, assembled or produced elsewhere if the quality and price are comparable.

      3.   All proposals and bids received shall either (a) be attached to the purchase order as proof of procedure, or (b) be retained in a designated bid file for future reference.

H.  Special Procurement Requirements.  The City shall comply with any special procurement requirements mandated by Federal, State, County or other granting or funding authorities, provided such requirements achieve the minimum standards established by this policy and other applicable Sections of the City Charter and Code of Ordinances, which will include cost and price analysis for every United States Department of Transportation procurement, including contract modifications.

I.    Local Purchasing Preference Policy.

      1.   If a local bidder is within five (5%) percent of the lowest bid from an out of town bidder on a construction or other formally bid project from $0.00 - $4,999.99, two (2%) percent on such project(s) from $5,000.00 up to $999,999.99, and within one percent on such project(s) from $1,000,000.00 up to $5,000,000.00, then the local bidder will be awarded the bid unless otherwise provided in this section.

      2.   The local purchasing preference policy shall not apply in the following instances:

a. When purchases and/or contracts are funded in whole or in part by federal funds;
b. When purchases are more than $5,000,000.00;
c. When purchases are not required to be formally bid, such as sole source procurements, emergency procurements and any other such procurements as defined in the city procurement policy or the city emergency management policy;
d. When professional services are procured through the issuance of requests for qualifications and/or requests for proposals, including design-build contracts; or,
e. When such preference is in conflict with any applicable state or federal laws, rules or regulations.

      3.    The local purchasing preference policy shall not apply to private construction projects financed with public assistance, including, but not limited to, tax increment financing, Chapter 100 bonds, Chapter 353 redevelopment projects and enterprise zone redevelopment.

      4.   “Local” is defined as a business operating within the corporate limits of the City of Maryville, with the majority of its primary business operations, including, but not necessarily limited to, production, operation, purchasing, billing, marketing, management, administration and ownership, occurring within the city limits.
“Local” shall not include the following:

a. Those businesses with only a local Maryville post office box; or
b. Those businesses with a sales presence in the city, but no physical business location within the city limits; or
c. Home based businesses that merely take orders for products shipped from out-of town to their customers.  Exceptions will be considered on a case-by-case basis when a written request is submitted to the City Manager.

      5.   Notwithstanding the foregoing, the local bidder must otherwise meet all qualifications and procurement policy requirements of the city, including, but not limited to, the “best bid” requirements, in order to be awarded a bid under this section.  (R.O. 2008 §150.090; Ord. No. 7006 §1, 4-28-08; Ord. No. 7292 §1, 01-10-11)

SECTION 150.100:   PURCHASE OF REPAIR PARTS AND SUPPLIES

Parts and supplies for the repair and maintenance of automotive and mechanical equipment maintained by the central garage will be purchased by the mechanic, subject to approval by his/her department head.

      1.   Local purchases.  The shop foreman will purchase necessary parts and supplies for repair of equipment through the above listed purchase order procedures.

      2.   Shop tools and major supplies.  The purchase of shop tools and major supplies costing in excess of five hundred dollars ($500.00) will be approved by the department head established in these regulations.

      3.   Major repairs.  If equipment will require major repair or rebuilding to return it to service, the shop foreman will obtain estimates to repair or rebuild and then obtain a recommendation for the department head as to the advisability of repairing when replacement or other disposition may be more economical.  The department head will advise the City Manager of his/her recommendation.  All repairs costing in excess of one thousand dollars ($1,000.00) shall have prior City Manager approval.  (R.O. 2008 §150.100; Ord. No. 7006 §1, 4-28-08)

SECTION 150.110:   CONTRACTUAL SERVICES

To obtain contractual services for the maintenance, repair, alteration, remodeling or construction of equipment, furnishings, building and structures, the department head will submit a memorandum to the City Manager.  The memorandum will contain information required to evaluate the need and urgency of the work to be performed by persons not employed by the City and to provide administrative control for contractual services.  Upon satisfactory completion of the work, the department head will certify his/her acceptance of the work on the file copy of the purchase order and return it to the finance office for payment upon receipt of an invoice from the contractor.

      1.   Service contracts or maintenance agreements.  All service contracts or maintenance agreements will be approved by the City Council and/or City Manager.  The City Clerk and Finance Director will maintain a record of service agreements and dates when such services start and terminate.  Prior to the termination date, the City Manager will coordinate with the department head to determine if the service should be renewed.

      2.   Use of commercial or maintenance agreements.  City-owned equipment shall not be repaired in commercial facilities without advance approval of the department head.  Conditions which permit the use of commercial facilities are when the work is beyond the capability of the mechanic or when emergency repairs are required that cannot be performed expediently by maintenance personnel.  The department head will secure the advance approval of the City Manager on those items that exceed one thousand dollars ($1,000.00).  Normal purchasing procedures will be followed in obtaining this type of service.

      3.   Modifications to equipment, buildings and structures.  Any modifications to buildings and structures of the City must be approved by the City Manager.

      4.   Rental of equipment.  Rental of equipment or accessories for equipment will receive approval of the City Manager.  Request for rental of equipment will be made to the City Manager by memorandum.  Rental approvals will be set out by contract or lease agreement.  (R.O. 2008 §150.110; Ord. No. 7006 §1, 4-28-08)

SECTION 150.120:   EMERGENCY PURCHASES

When an immediate need exists to prevent the disruption of operations by unforeseen causes, supplies or services may be obtained without prior approval.  Only the minimum supplies or services necessary to alleviate the emergency shall be purchased.  Emergency purchases must be reported to the City Manager as soon as possible after they occur with an explanation of the nature of the emergency.

      1.   Administrative requirements for emergency purchases.  The department head will, at the time of purchase, secure from the vendor a sales ticket or invoice for the material or services.  The words "emergency purchase" must be indicated thereon.  The invoice will be forwarded to the City Manager as soon as possible.  (R.O. 2008 §150.120; Ord. No. 7006 §1, 4-28-08)

SECTION 150.130:   STANDARD ITEMS

Like items utilized by the various departments of the City will be purchased centrally.  The City Clerk will periodically prepare a list of standard items and furnish it to the department heads.  The list of standard items will serve as a guide to department heads in ordering standard items.  Items appearing on the list of standard items may not be purchased separately by departments.  Standard items will be issued from the various storage rooms.  Issues of standard items will be made by the use of a requisition form.  The issuing person will complete the requisition form.  (R.O. 2008 §150.130; Ord. No. 7006 §1, 4-28-08)

SECTION 150.140:   PURCHASING DEPARTMENT RECORDS

The following records shall be maintained:

      1.   Catalog file.  The file shall be maintained by the department head according to products and its purpose is to assist in the location of information concerning products and source of supply.

      2.   Purchase order file.  Purchase orders shall be filed according to numbers.

      3.   Specification file.  All specifications shall be filed in the finance office.  Specifications will be developed and written by the department head with the assistance of the using departments.

      4.   Invoices.  Invoices for the purchase of materials or services will be checked for prices and receipt of material or services and forwarded to the finance office for preparation of an expenditure voucher and payment.  (R.O. 2008 §150.140; Ord. No. 7006 §1, 4-28-08)

SECTION 150.150:   LEASE-PURCHASE AGREEMENTS

No equipment or accessory will be obtained on a lease-purchase agreement without the express approval of the City Council.  (R.O. 2008 §150.150; Ord. No. 7006 §1, 4-28-08)

SECTION 150.160:   BUYING EQUIPMENT ON INSTALLMENT PAYMENTS

No equipment or accessory will be purchased on an installment payment plan without the express approval of the City Council.  (R.O. 2008 §150.160; Ord. No. 7006 §1, 4-28-08)

SECTION 150.170:   ACCEPTING EQUIPMENT ON TRIAL

No equipment or accessory will be accepted or used by a department to test its suitability without the approval of the City Manager.  (R.O. 2008 §150.170; Ord. No. 7006 §1, 4-28-08)

SECTION 150.180:   PETTY CASH PROCEDURES

The City Manager may establish a Petty Cash Fund where such a fund is deemed advantageous and expedient in the routine purchase of items costing less than thirty dollars ($30.00).  The City Clerk shall be the custodian of the Petty Cash Fund.  The size of the Petty Cash Fund shall be controlled by the City Manager based upon the amount of use of the fund.  Sound purchasing procedures will govern purchases made from the Petty Cash Fund.

      1.   No personal checks are to be cashed.

      2.   Reimbursement is to be made only to personnel authorized by the department head.  It shall be the responsibility of the department head to properly code or classify the item or expenditure with receipt and his/her written approval shall be taken as proper authorization for the custodian of the fund to charge his/her department when replenishing the fund.

      3.   Reimbursement is not to be made until an invoice marked "paid", a valid receipt or certificate of expenditure is received by the fund custodian.

      4.   No reimbursement is to be made for items over thirty dollars ($30.00) (no limit on freight payments), where it appears that purchasing regulations or procedures are being evaded.

      5.   The Petty Cash Fund shall be replenished monthly.  The replenishment amount will be the total of "paid" invoices, valid receipts and certificate of expenditures presented.  The Accounting Clerk will encumber the appropriate expenditure accounts of the various funds monthly reflecting expenditures made through the Petty Cash Fund.  (R.O. 2008 §150.180; Ord. No. 7006 §1, 4-28-08)

SECTION 150.190:   FOLLOW-UP AND EXPENDITURES

The department head is responsible for follow-up and expediting purchases.  The purchase order should state when delivery is wanted.  Date and method of follow-up will depend on the nature of the order and the promised delivery date.  (R.O. 2008 §150.190; Ord. No. 7006 §1, 4-28-08)

SECTION 150.200:   RECEIPT OF SUPPLIES OR SERVICES

Department heads are responsible for the correct accounting classification of all purchases.  When it has been ascertained that all items of a purchase order have been received, the department head shall enter the receiving date upon the copy of the purchase order and forward along with all invoices, etc., to the finance office.  No payment may be made to a vendor until this receipt is forwarded to the finance office.  (R.O. 2008 §150.200; Ord. No. 7006 §1, 4-28-08)

SECTION 150.210:   SURPLUS AND OBSOLETE MATERIAL

A.  Methods Of Disposition.  Surplus, worn-out or obsolete material and equipment belonging to the City may be disposed of in the following ways:

      1.   By transferring to other City departments.

      2.   By returning to the manufacturer or supplier.

      3.   By trading in on new equipment.

      4.   By advertising for sale.

      5.   By selling as scrap.

      6.   Junking--If any material is junked or lost, it shall be reported to the City Manager by memorandum.

B.  How To Report Property.  Each department shall report its surplus or obsolete stock, equipment or materials by memo to the City Manager.

C.  How Disposition Is Made.  If surplus equipment is sold, it will be coordinated by the Finance Director in conformance with competitive conditions including newspaper advertising, sealed bids or public sale.  Final acceptance of the sale and sale conditions will be given by the City Manager.  If material is sold as scrap, competitive quotes or sealed bids will be solicited.  (R.O. 2008 §150.210; Ord. No. 7006 §1, 4-28-08)

SECTION 150.220:   CHANGE ORDER TO CONTRACTS

The City Manager is authorized to approve contract change orders up to five thousand dollars ($5,000.00).  However, each approval will be reported to the City Council at the next scheduled meeting for Council confirmation.  (R.O. 2008 §150.220; Ord. No. 7006 §1, 4-28-08)

SECTION 150.230:   SAFETY TRAINING REQUIREMENTS

A.  The project approved by this Chapter is subject to the requirements of Section 292.675, RSMo., which requires its on-site employees to complete a ten (10) hour course in construction safety and health approved by the Occupational Safety and Health Administration (OSHA) or a similar program approved by the Missouri Department of Labor and Industrial Relations which is at least as stringent as an approved OSHA program.  The training must be completed within sixty (60) days of the date work on the project commences.  On-site employees found on the worksite without documentation of the required training shall have twenty (20) days to produce such documentation.

B.  The request for bids for this project shall specify the requirements of Section 292.675, RSMo.

C.  The contract awarded for this project shall specify the requirements of Section 292.675, RSMo., and shall include a notice of the penalties for contractor's failure to comply with that Statute.  (Ord. No. 7135 §1, 8-10-09)