§ 2-417. Commodities or contractual services not exceeding the threshold amount for Category Two (thirty five thousand dollars ($35,000.00)).  


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  • (a) Informal bidding. Informal competitive bidding will be required for the purchase of commodities and contractual services when the cost exceeds five hundred dollars ($500.00). A minimum of three (3) bids will be required as follows:

    (1) Verbal bids may be accepted for commodities or services which do not exceed two thousand five hundred dollars ($2,500.00).

    (2) Written bids will be required for purchases in excess of two thousand five hundred dollars ($2,500.00).

    (b) Award of bid. Awards shall be made to the qualified bidder with the lowest responsive bid. Preference shall be given to a local vendor when the bid is not more than five (5) percent higher than the low bid.

    (c) Documentation. All purchases will be documented and authorized on standard forms or vouchers provided by the finance department. The issuance of a purchase order will be required prior to the purchase of commodities when cost exceeds five hundred dollars ($500.00).

    (d) Authorization. Authorization for a purchase will be obtained prior to making the purchase as follows:

    (1) Department heads or their designees may authorize purchases which do not exceed five hundred dollars ($500.00).

    (2) The city manager or their designee must authorize all purchases which exceed five hundred dollars ($500.00) before the purchase is made.

    (3) The city commission must authorize all purchases which exceed the threshold amount in Category One (twenty thousand dollars ($20,000.00)) and all purchases made from unbudgeted fund balances.

    (e) Procurement card purchases. The city shall only be financially responsible for procurement card transactions for which the city commission has approved the procurement card vendor to provide such services for the city.

    (1) The city manager and/or finance director shall be the authorized agent(s) for obtaining procurement cards from a city commission approved procurement card contract vendor.

    (2) All procurement card purchases must follow the rules and procedures defined in the city commission approved purchasing card policy manual.

    (3) The city may use procurement cards for the purchase of commodities or contractual services under the following conditions:

    a. When the cost of commodities or contractual services does not exceed five hundred dollars ($500.00).

    b. When the cost of travel expenses does not exceed one thousand five hundred dollars ($1,500.00).

    c. When the cost of commodities or contractual service exceeds five hundred dollars ($500.00) or when the cost of travel expenses exceed one thousand five hundred dollars ($1,500.00), with prior written authorization of the city manager.

    (f) Exceptional purchases. When the purchase price of commodities or contractual services does not exceed the threshold amount for Category Two (thirty five thousand dollars ($35,000.00)), purchases may be excepted from the requirement of informal competitive bidding if the following conditions exist:

    (1) Emergency conditions. Purchases may be excepted from informal competitive bidding if the city manager determines that an immediate danger to the public health, safety or welfare or other substantial loss to the public requires emergency action.

    a. Emergency procurement shall be made with such competition as is practicable under the circumstances.

    b. A statement explaining the need for emergency procurement shall be furnished to the finance director with the voucher authorizing payment.

    (2) Single source. Commodities or contractual services available only from a single source may be excepted from the bid requirements if it is determined that such commodities and services are available only from a single source and such determination is documented in writing.

    a. No sole source purchase shall be made without the prior authorization of the city manager.

    b. A copy of the written determination of single source availability shall be furnished to the finance director with the voucher authorizing payment.

    (3) Consolidated purchasing. In accordance with section 2-403 or section 2-404, procurement of commodities and contractual services may be excepted from the informal competitive bid requirements of this section if the city is "piggy-backing" or consolidating its procurement with that of another agency or entity constituted for governmental purposes; provided that the commodities or contractual services to be procured have been subjected to competitive bidding by said other agency or entity and documentation of such competitive bidding is included in the official records of the city.

    (g) Encumbrance. No purchase shall be made until sufficient funds are encumbered by the finance department. The finance department shall not process an encumbrance when the remaining balance of budgeted funds in the applicable expenditure account is insufficient to make the purchase.

    (h) Administrative procedures. All agencies making purchases will comply with administrative procedures developed by the finance department.

    (i) Review of contract. Each contract for contractual services costing more than the threshold amount for Category One (twenty thousand dollars ($20,000.00)), shall be executed in a form of agreement provided by the city or shall receive legal review and approval as to form before the contract is executed. No contract shall be approved which does not include the minimum provisions required by section 2-406

    (j) Record retention. The original executed contract shall be forwarded to the city clerk for addition to the official records of the city and retention in accordance with the requirements of section 2-481

(Ord. No. 95-01, § 1, 2-21-95; Ord. No. 2000-16, § 1, 9-19-00; Ord. No. 2009-27, § 1, 11-3-09; Ord. No. 2011-32, § 1, 12-20-11; Ord. No. 2013-17, § 1, 11-5-13)