3.25.050 Scope.
A. Superior or More Suitable Products. Whenever the requisitioning department head or his or her designated representative finds in a signed memorandum, a copy of which shall be sent to the purchasing agent and the city manager, that a particular product significantly surpasses competing products in terms of quality, serviceability or longevity, or that such a product is better suited to the needs of the city in order to lower costs of inventory, to maintain compatibility with city equipment or currently adopted and authorized procedures, or because doing so will lower the costs of service or procurement, such a product may be purchased notwithstanding the fact that a competing product could be procured at a lower cost or rate.
B. State or Federal Purchasing Prices. The city need not solicit competitive bids or proposals when making procurement through cooperative purchasing contracts administered by the State Division of Purchasing, or an agency of the federal government, the benefits of which are also available to the city.
C. Cooperative Procurement. The city may join with other units of federal, state, or local government, or with special districts, school districts, and such other similar agencies or political subdivisions as the city council may by resolution direct, in purchasing goods and services. In such cases, the city is encouraged to follow a competitive bidding process or request for proposals in such a manner as would follow if the city were procuring the good or service in question. Notwithstanding the foregoing, purchases shall be made in accordance with state law, such as Section 10-7-20, Utah Code Annotated 1953, regarding contracts for new public improvements construction costs where the estimated cost exceeds $25,000.
D. General Policy. The following general policies shall apply to all purchases. The chart below further describes the purchasing policy.
1. All city purchases for goods and services and contracts for goods and services shall be subject to these rules.
2. No contract or purchase shall be so arranged, fragmented, or divided with the purpose or intent to circumvent these rules.
3. City departments shall not engage in any manner of barter or trade when procuring goods and services from entities both public and private.
4. No purchase shall be contracted for, or made, unless sufficient funds have been budgeted in the year in which funds have been appropriated.
5. All purchases or orders for goods or services must be made by employees of the city.
6. All reasonable attempts shall be made to obtain at least three written quotations on all purchases of capital assets and services in excess of $10,000.
7. When it is advantageous to the city, annual contracts for services and supplies regularly purchased should be initiated.
8. All purchases and contracts must be approved by the manager or their designee unless otherwise specified in these rules.
9. The following items require city council approval unless otherwise exempted in these following rules:
a. All contracts (as defined) over $30,000.
b. All contracts and purchases awarded through the formal bidding process.
c. Any item over $10,000 that is not anticipated in the current budget.
d. Accumulated “change orders” which would overall increase a previously approved contract by:
i. The lesser of 20 percent or $20,000 for contracts of $200,000 or less.
ii. More than 10 percent for contracts over $200,000.
10. Acquisition of the following items must be awarded through the formal bidding process:
a. All contracts for building improvements over the amount specified by state code, specifically:
i. For the year 2003, $40,000.
ii. For each year after 2003, the amount of the bid limit for the previous year, plus an amount calculated by multiplying the amount of the bid limit for the previous year by the lesser of three percent or the actual percent change in the CPI during the previous calendar year.
b. All contracts for public works projects over the amount specified by state code, specifically:
i. For the year 2003, $125,000.
ii. For each year after 2003, the amount of the bid limit for the previous year, plus an amount calculated by multiplying the amount of the bid limit for the previous year by the lesser of three percent or the actual percent change in the CPI during the previous calendar year.
|
Purchase Order |
3 Quotes Required |
Formal Bid Process |
Council Approval Required |
Authorized to Sign Contracts or Purchase Orders |
|
|---|---|---|---|---|---|
|
Materials, Supplies, and Services |
$1,000 and up |
$10,000 and up |
No |
No |
City manager |
|
Capital Assets |
$5,000 and up |
$10,000 and up |
No |
$30,000 and up |
City manager up to $30,000. Mayor over $30,000 |
|
Contracts for Professional Services |
N/A |
$10,000 and up |
No |
$30,000 and up |
City manager up to $30,000. Mayor over $30,000 |
|
Contracts for Public Improvements (Minor) |
N/A |
Yes |
No |
$30,000 and up |
City manager up to $30,000. Mayor over $30,000 |
|
Contracts for Public Improvements (Major) |
N/A |
No |
Yes |
Yes |
Mayor |
|
Accumulated Change Orders (Contracts under $200,000) |
N/A |
N/A |
N/A |
Lesser of 20% of original contract amount or $20,000 |
Department head up to 20% or $20,000. Mayor over 20% or $20,000 |
|
Accumulated Change Orders (Contracts over $200,000) |
N/A |
N/A |
N/A |
More than 10% of original contract amount |
Department head up to 10%. Mayor over 10% |
E. Prudence and good judgment shall always be used when making any purchase(s). Purchase(s) that are greater than $100.00 shall always require the approval of a supervisor prior to making such purchase(s). [Ord. 06-18-2013A § 2].