HomeMy WebLinkAbout06-511 Adopt Purchasing Policy
CITY OF MERIDIAN
RESOLUTION NO. tlð- ;;/1
BY THE CITY COUNCIL:
BIRD, BORTON, ROUNTREE, WARDLE
A RESOLUTION ADOPTING THE PURCHASING POLICY FOR THE
CITY OF MERIDIAN; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, on April 11, 2006, the City Council of the City of Meridian received
a staff report regarding the revised City of Meridian Purchasing Policy; and
WHEREAS, after receiving said report, the City Council directed that the City of
Meridian Purchasing Policy be brought forward in Resolution fonn to revise and update
the Purchasing Policy for the City of Meridian.
NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COUNCIL OF THE CITY OF MERIDIAN, IDAHO:
Section 1. That the revised City of Meridian Purchasing Policy be adopted, a
copy of which is attached to this Resolution and incorporated herein by this reference.
Section 2. That this Resolution shall be in full force and effect immediately upon
its adoption and approval.
ADOPTED by the City Council of City of Meridian, Idaho this 18~day of
+/' / , 2006. *'
APPROVED by the Mayor of the City of Meridian, Idaho, this 19 -day of
/J¡a.ril , 2006.
APPROVED:
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Resolution for City of Meridian Purchasing Policy
Page 1 of 1
/
CITY OF MERIDIAN
PURCHASING POLICY
Adopted:
4-18-(/6
Resolution:
6lG -5/1
Purpose:
Commodities and services purchased in the public sector represent a
direct cost to the taxpayer. Every purchase that City employees make is
subject to public scrutiny. Competition and best value are the central
principles of public procurement. The rules and regulations in this policy
were developed to encourage competitive solicitation for sound value,
guard against favoritism and profiteering and promote the interest of
local economies by providing equal opportunities to compete for
government business.
References: See Attachment A
PURCHASING POLICY
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Table of Contents
Definitions ............................................................................................................. 3
Purchasing Ethics and Vendor Relationships....................................................... 3
Purchasing Authority......... ................................ .............. ...................................... 4
Semi-Formal Bidding ............................................................................................6
Formal Bidding......................................................................................................8
Request for Proposal..........................................................................................12
Determination of Need to Contract...................................................................... 13
Leases (City as Lessee) """""""""""""""""""""""""""""""""""""""""", 13
Risk Management and Insurance Requirements ................................................ 14
Exceptions to Competitive Bidding...................................................................... 14
Payment Process................................................................................................16
Surplus Property .................................................................................................18
Attachment "A" ....................................................................................................20
PURCHASING POLICY
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I. DEFINITIONS
A. Public Purchasing: The purchasing or procurement of an item or a service that
meets the need of the City, at the best price, from the most responsive and
responsible vendor.
B. Idaho Code (I.C.): This policy refers to several Idaho Statutes. See Appendix A
for a list of all statutes that impact public purchasing.
C. Public Works Construction: Public works construction does not pertain only to
those projects undertaken by the Public Works Department. Statute and this
policy cover any construction, repair or reconstruction of any public work
(including, but not limited to, buildings, pipelines, irrigation, drainage facilities,
curbing, and numerous "specialty construction" types of work). See I.C. §54-1901
for further definition and types of work subject to the requirements of this policy.
D. Bid Documents: A set of documents, made available to bidders that may include
an invitation to bid, instructions to bidders, bid form, general conditions,
supplemental general conditions, special provisions, technical specifications,
drawings, or other information necessary to adequately convey the
characteristics of the item or service being sought.
II. PURCHASING ETHICS AND VENDOR RELATIONSHIPS
Every City employee has a personal responsibility to conduct government business
in an ethical manner and assure the integrity of the City purchasing and procurement
processes. Department managers are responsible for adherence to
City and State purchasing rules and regulations.
A. Prohibitions
The City has adopted the following state statutes in regard to purchasing
prohibitions:
1. I.C. §67-5726 - Conflict of interest regarding the holding of contracts or
selling to the City property or supplies by City employees.
2. I.C. §67-5726 - Prohibition regarding the influencing or conspiring to
influence public purchasing decisions and contract awards. Attempts at
influence may include kickbacks and bribes, peddling or payment of a fee,
back door selling, hard-sell tactics, fraternization, or offering gifts to avoid
following published procedures or gain advantages.
3. I.C. §67-5726 - Circumventing Purchasing Authorization - Prohibits efforts by
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employees to obtain products or services by avoiding the competitive process
by splitting purchases, creating false emergency situations and non-use of
City-wide contracts.
B. Code of Ethics
All City of Meridian employees responsible for procuring goods or services shall:
1. Follow the rules and regulations of the City of Meridian and the laws of the
state of Idaho.
2. Avoid activities that would compromise or give the perception of
compromising the best interests of the City.
3. Reduce the potential for any charges of preferential treatment by actively
promoting the concept of competition.
4. Act as good custodians of public money by obtaining maximum benefit for
funds spent.
5. Never solicit or accept money, loans, credits or prejudicial discounts, gifts or
entertainment material in nature (generally exceeding $50), favors or services
from your present or potential suppliers, which might influence or appear to
influence purchasing decisions.
C. Vendor Relationships
Developing and maintaining good relationships with our suppliers is important.
Maintain and practice, to the highest degree possible, business ethics,
professional courtesy, and competence in all transactions. Adhere to and protect
the supplier's business and legal rights to confidentiality for trade secrets, and
other proprietary information.
III. PURCHASING AUTHORITY
Each Department Director or designee within the City shall have the authority to
acquire goods or services in accordance with the following guidelines.
A. Goods and Services.
1. Purchases Up To $1,000
Each Department Director or designee can make purchases up to $1,000 at
their discretion without competitive bidding as long as the expenditure is
within their appropriated budget.
2. Purchases From $1,000 to $5,000
Such purchases can be made with the approval of the Department Director
and must be accompanied by a signed purchase order. The approval should
take place when the purchase order is issued, before any obligation has been
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incurred. If the item is already on contract or an open purchase order, a
purchase order is not required but the initial contract purchase order should
be referenced on the invoice.
3. Purchases More Than $5,000 and Less Than $25,000
Such purchases can be made with the approval of the Department Director
and must be accompanied by a signed purchase order. The approval should
take place when the purchase order is issued, before any obligation has been
incurred. If the item is already on contract or an open purchase order, a
purchase order is not required but the initial contract purchase order should
be referenced on the invoice. Each Department's City Council Liaison must
sign all purchase orders in this range.
4. Purchases More Than $25,000 and Less Than $50,000
These purchases require semi-formal, written bids in accordance with I.C. 67-
2806(1). Also required is the issuance of a purchase order. Each
Department's City Council Liaison must sign all purchase orders in this range.
See Section IV. See I.C. 67-2803 for exclusions.
5. Purchases $50,000 or Greater
Expenditures at this level must go through a formal bid process in
compliance with I.C. 67-2806(2). See Section V. See I.C. 67-2803 for
exclusions.
6. Specialized Repair More than $25,000 and Less than $50,000
Repair of specialized equipment that is NOT considered a "public work" as
defined by statute may utilize semi-formal bidding. Examples of repair work
that may qualify under this provision include supply well pumps, heavy rolling
stock, previously sole-sourced process equipment and specialty wastewater
equipment. Examples of repair work that would not qualify under this
provision are passenger vehicles, office buildings, pipelines, and irrigation
facilities. The Department Director must secure approval from their
department liaison prior to proceeding with semi-formal bidding under this
provision.
B.
Public Works Construction
1. Projects Up To $25,000
Contracts that are less than twenty-five thousand dollars ($25,000) may not
have to be semi- or formally bid, provided such contracts or purchases are
guided by the best interests of the City.
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2. Projects From $25,000 To $100,000
Contracts require semi-forming bidding. See Section IV.
3. Projects Greater Than $100,000
Contracts require formal bidding. See Section V.
4. Public Works Licensure
Statute requires that all public works contractors hold a valid and work-specific
public works license from the State of Idaho where the cumulative value of the work
to be completed exceeds $10,000. The City also encourages the use of licensed
public works contractors for projects under this statutory limit.
IV. SEMI-FORMAL BIDDING
A. Minimum Requirements. At least three bids must be obtained if possible and at
least three of those must be from vendors with a significant Idaho presence (if
possible). There is no maximum number of bids. Semi-formal bidding must
comply with LC. 67-2806(1).
Idaho Code Section LC. 67-2349 defines significant Idaho presence as follows:
"For the purposes of this section, any bidder domiciled outside the boundaries of
the state of Idaho may be considered as an Idaho domiciled bidder, provided that
there exists for a period of one (1) year preceding the date of the bid a significant
Idaho economic presence as defined herein.
Significant Idaho presence shall consist of the following:
1. That the bidder maintain in Idaho fully staffed offices, or fully staffed sales
offices or divisions, or fully staffed sales outlets, or manufacturing facilities, or
warehouse or other necessary related property; and
2. If a corporation be registered and licensed to do business in the state of Idaho
with the office of the secretary of state."
B. Format. The request for bid must be written. It must be documented with the
date, company name and person providing the bid and be signed by the City
employee obtaining the bid. At least three (3) days must be allowed, unless an
emergency situation exists, for a written response. Allow one (1) business day
after deadline for receiving bids for objections.
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C. Splitting of Requirements. Acquisition requirements shall not be divided to avoid
compliance with bidding statutes, rules, or policies. I.C. 59-1026 provides for a
$5,000 civil penalty to an entity for willfully and knowingly "splitting" or separating
purchases to avoid bid statutes.
D. Award of Bid. The award shall be made to the bidder offering the lowest
acceptable bid. If a bid is not acceptable, retain written explanation of the reason.
This provides support documentation in the event of challenge by an
unsuccessful bidder. If the lowest bid is not acceptable, all bids must be rejected.
Awards may be made in any of the following ways. (Documentation
demonstrating the semi-formal bid process was followed must be forwarded to
the Finance Department with the first request for payment.)
1. Lowest Cost. Generally, awards are made to the lowest cost responsible
bidder. Responsible bidder is defined as the vendor whose bid conforms
in all material respects to the request for bid and reflects the lowest
acquisition price. Comparisons of costs should include all costs, including
such items as delivery costs, setup charges, removal charges, labor
charges, and any additional materials required, and other elements
described in the bid.
2. Best Value or Weighted Cost. To determine best value a weighted
analysis may be used. In a weighted analysis, cost is only one factor in
determining the award. Other factors may include evaluation of
specifications, comparative performance examinations, vendor references,
product usability, flexibility, maintenance, company resources, previous
experience, etc. To assure a fair determination of award, identified factors
are weighted according to importance in the overall purchasing decision.
Relative scores are assigned to each factor, including price, to determine
the lowest acquisition cost. All identified factors to be used in awarding
the bid must be contained in the written Request for Bid.
3. Life-Cycle Costing. Awards may also be made to bidders offering the
lowest life cycle cost. Life-cycle costing means the total cost of an item for
its entire life span. It includes initial purchase price, operating supplies,
maintenance, repairs, salvage value, and disposal costs.
E. Tax Commission Requirements.
1. Within thirty (30) calendar days after Council awards a contract to a public
works contractor, the Finance Department shall notify the state tax
commission that the contract has been awarded and shall provide to the
state tax commission the name and address of the prime contractor. See
I.C. §54-1904A.
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2. If material or equipment is purchased or supplied by the City of Meridian,
who is exempt from sales and use taxes, for subsequent use or
installation by a public works contractor, then the use by the contractor is
subject to use tax. For example, if a contractor has a public works
contract to build a structure using materials owned and supplied by the
City, the contractor is the consumer of the materials and is subject to a
use tax on their value. This tax falls directly upon the contractor and not
the owner of the property. See Idaho Administrative Rules 35.01.02.12
V. FORMAL BIDDING
Formal bidding is generally used for construction projects, tangible property and in
instances where the purchaser knows what they want and the goal is to obtain the
best price. Requests for proposals are generally used for services and in cases
where the need is known but the solution is not (examples: consulting engineers,
architects, project manager, planning consultants). Formal bidding must comply with
I.C. §67-2806(2). Bidding must follow the following applicable steps:
A. Develop Specification. The term "specification" refers to a description of the
characteristics or a commodity or service required. It is the explicit requirement
furnished with a solicitation upon which a purchase order or contract is to be
based. Specifications are written not to restrict bidding but to encourage open
competition. The goal is invite maximum reasonable competition. See Section X
for allowable exceptions to formal bidding.
Checklist for Specifications:
1. Specifications should be clear and accurate, yet simple. They should not be
so specific that a loophole eliminates competition and allows a vendor to take
advantage of the purchaser.
2. Specifications should be as flexible as possible. Inflexible specifications
defeat the competitive bid process.
3. Specifications must be written so it is easy to check that the product or
service meets the specification.
4. Specifications should be reasonable.
5. Specification should be as fair as possible and allow for competitive bidding
by several bidders.
B. Procedure for Bid Solicitation
1. Notice. The notice inviting bids must set the date and place for the bid
opening. The first publication shall be at LEAST two (2) weeks before the
date of the bid opening. A longer time period might be preferable. Notice
must be published at least twice, not less than one (1) week apart, in the
official newspaper of the City. The bid opening must be at least one (1) week
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after the second notice publication. The notice should succinctly set forth the
project to be done.
Bid notice information must be forwarded to the City Clerk at least one full
week before the first public notice is to appear. The Public Works Department
is responsible for publishing that department's bid notices.
The notice must list the location of for obtaining Bid Documents as well as the
name of the project manager.
The City may require a deposit or charge for bid documents.
2. Pre-Bid Conference. Pre-bid conferences may be held to explain the item or
project requirements. They should be announced to all prospective bidders
known to have received an Invitation to Bid. The conference should be held
long enough after the Invitation to Bid has been issued to allow bidders to
become familiar with the project but long enough before the bid date to allow
consideration of the conference results in bid preparation.
Nothing in the pre-bid conference can change the Invitation to Bid or Bid
Documents unless a change is made by written addendum. If a transcript is
made, it shall be a public record.
A pre-bid conference is an excellent way to receive bidder input prior to a bid
opening. Bidders have the opportunity to point out inconsistencies in
specifications or provide suggestions on technical specifications that may
benefit the City.
C. Addenda to Bid Documents
1. Addenda Format. Addenda to bid documents shall be identified as such and
shall ask that the bidder acknowledge receipt of all addenda issued. The
addendum shall reference the portions of the Invitation for Bid it amends.
2. Addenda Distribution. Addenda shall be sent to all prospective bidders
known to have received the invitation to bid. The City Clerk or Project
Manager shall notify all prospective bidders by fax or mail.
3. Addenda Timelines. Addenda shall be distributed within a reasonable time to
allow prospective bidders the opportunity to adjust bid preparation. If the date
and time previously set for the bid opening do not accommodate such
preparation the bid opening time must be increased and once again all
prospective bidders notified by the City Clerk or Project Manager. A bid
opening time should be documented in the addendum.
D. Bid Opening and Evaluation
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1. All bids must be received in the City Clerk's office by the date and time
specified in the Invitation to Bid.
2. All bids must be signed.
3. No bid received by the City may be withdrawn after the time set in the notice
for the opening.
4. The project manager prepares the bid tabulation sheet before the bid
opening.
5. The City Clerk publicly opens the bids at the time and place stated in the
public notice. No person is denied the right to be present at the opening of
bids. The first items read are the signature and the bid security information.
If this information is not available the bid is void and cannot be considered.
6. The City Clerk hands the bids to the Project Manager for review. The Project
Manager:
a. Checks that bid security is included, if required.
b. Checks that acknowledgement of addenda is included.
c. Reference HVAC/Mechanical/Electrical subs if required.
d. Fills out and totals bid schedule.
e. Reads responsive bid amount out loud.
f. States who the apparent low bid is.
g. States that all bids will be evaluated for arithmetic correctness and other
items as deemed appropriate.
h. Announces the date that a recommendation of award will be presented to
the City Council.
7. Bid results are available in the City Clerk's Office to all interested parties.
8. If the lowest responsible bid is less than or equal to $25,000 Council action is
not required. (The Mayor must sign all City contracts)
9. If two or more bids are the same, the City Council may accept the one it
chooses. If no bids are received the Council may make the expenditure
without further compliance with this section.
E. Council Action For Formal Bid Decisions
1. City Council Agenda. Staff recommendations are placed on the Consent
agenda. If the item is controversial or reflects policy that has not been
addressed it can be added to the Council agenda for discussion. Council
may also pull Consent items and ask for discussion with staff. At their
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discretion staff may choose to not place the item on the consent agenda and
may present the contract to the Council as a regular agenda item.
2. City Council Action. The City Council may:
a. Accept staff recommendation.
b. Approve an alternate bid in accordance with state statute and City policy
c. Defer action and request more information.
d. Reject all bids and re-advertise.
e. After rejecting bids the City Council may, after finding it to be a fact, pass
a resolution declaring that the purpose of the expenditure can be realized
more economically by day labor, or the materials or supplies furnished at a
lower price in the open market. Upon adoption of the resolution, it may
fulfill the purpose of the expenditure in the manner stated without further
compliance with competitive bidding requirements.
f. If no bids are received the City may make the expenditure without further
compliance with competitive bidding; requirements. This includes buying
the material and supplies and/or having City employees do the work.
g. The Project Manager shall notify the successful bidder of the award of the
bid.
F. Mistakes in Bids. Reference Idaho Code §54-1904 (8 - E) for specific reasons
for (and ramifications of) withdrawing a bid.
G. Additional Requirements for Public Works Construction.
1. Public works contractors have additional requirements for construction
projects:
a. Must be bondable for performance and payment;
b. Must have a valid Public Works license through the State of Idaho;
c. Must have class of license specific to dollar value of project;
d. Must satisfy additional insurance requirements as stated in the project
specifications or bid documents;
e. Hold certain specialty license, as required by State of Idaho.
H. Tax Commission Requirements.
1. Within thirty (30) calendar days after Council awards a contract to a public
works contractor, the Finance Department shall notify the state tax
commission that the contract has been awarded and shall provide to the state
tax commission the name and address of the prime contractor. See LC. 54-
1904A.
2. If material or equipment is purchased or supplied by the City of Meridian, who
is exempt from sales and use taxes, for subsequent use or installation by a
public works contractor, then the use by the contractor is subject to use tax.
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For example, if a contractor has a public works contract to build a structure
using materials owned and supplied by the City, the contractor is the
consumer of the materials and is subject to a use tax on their value. This tax
falls directly upon the contractor and not the owner of the property. See
Idaho Administrative Rules 35.01.02.12
IV. REQUEST FOR PROPOSAL
A. Purpose. A request for proposal is generally utilized in the acquisition of services
or complex purchases. A RFP describes a problem or need in general terms and
seeks a written response including pricing information, which describes the
solution or means of providing the property requested by the request for
Proposal. Price might be an evaluation criterion for proposals, but will not
necessarily be the predominant basis for contract award.
B. Specific Statutory Requirements. Specific criteria are applicable to professional
service contracts with design professionals (engineers, architects and landscape
architects), construction managers, and professional land surveyors. These
criteria are described in Idaho Code §67 -2320 State Government and State
Affairs, Chapter 23, Miscellaneous Provisions, Professional Service Contracts
With Design Professionals, Construction Managers And Professional Land
Surveyors.
C. Procedure. To choose between a request for proposal or competitive formal or
semi-formal bidding, consider the following factors:
1. Whether the relative skills, expertise, or technical capability of the offers will
have to be evaluated.
2. Whether the cost is secondary to the characteristics of the property or service
sought, as in a work of art.
3. Whether the conditions of the service, property or delivery conditions are
unable to be sufficiently described in the Invitation to Bid.
4. Whether the acquisition is for highly complex or technical property of services
and evaluation of the vendor's approach, management capabilities,
innovation, or other technical factors are secondary to cost.
D. Problem Statement. The RFP is written so that potential offerers understand the
problem they are being asked to address or service they are to provide. Any
limits or conditions that apply must be included. The RFP must state in general
terms all of the evaluation factors and their relative importance, including price.
E. Evaluation of Proposals. The evaluation must be based on the evaluation factors
set forth in the RFP. Numerical rating systems are generally used but are not
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required. Factors not specified in the Request for Proposal shall not be
considered in evaluating offers or determining award of contract.
F. Award.
1. A written determination shall be made explaining how the award was found to
be most advantageous for the agency based on the evaluation criterion set
forth in the Request for Proposal.
2. If only one proposal is received in response to a Request for Proposal, the
City, as it deems appropriate, may make an award, reject the proposal, or if
time permits, re-solicit for the purpose of obtaining additional proposals.
VII. DETERMINATION OF NEED TO CONTRACT
A. A contract may be established as the result of a bid or a RFP. Agreements
where someone is performing a service defined by the City that will exceed
$5,000 generally require a written contract.
B. The Mayor must approve contracts for $50,000 or less.
C. All contracts exceeding $50,000 shall be placed on the City Council consent
agenda. If the Council requires discussion they can be pulled from the consent
agenda and discussed. Staff may also request such contract not be placed on
the consent agenda.
D. The City Attorney must review all contracts for legal adequacy.
E. All contracts must be signed by the Mayor, with City Clerk attestation to Mayor's
signature.
F. The original signed copy of every contract must be retained in a central file in the
City Clerk's office. The City Clerk shall forward a signed copy to the Finance
Department for payment verifications.
G. The City Attorney should be consulted on any decision made to declare a breach
of contract due to failure to perform.
XIII. LEASES Cit as Lessee
A. The City may enter into lease agreements. If practical, the City is encouraged to
use the competitive bidding process. Market conditions and the urgency of the
City's needs are factors to be considered in determining whether to use a
competitive bidding process.
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B. All leases exceeding $25,000 will be placed on the City Council consent agenda.
If the Council requires discussion they can be pulled from the consent agenda
and discussed.
C. The City Attorney must review all lease agreements for legal adequacy.
D. The Mayor must sign all lease agreements and City Clerk attest to Mayor's
signature.
E. The original signed copy of every lease agreement must be retained in a central
file in the City Clerk's office. The City Clerk will forward a copy to the Finance
Department for payment verifications.
* Leases of City-owned property shall be governed by the provisions of I.C. §50-
1409
XIII. RISK MANAGEMENT AND INSURANCE REQUIREMENTS
A. Public Works Department Projects. The Public Works Department is responsible
for ensuring that all insurance requirements are met for their projects. Public
Works will maintain necessary documentation in their offices and have available
for audit upon request.
B. Non Public Works Department Projects. Project Managers for all other City
contracts that require insurance will be responsible for obtaining proof of
insurance and having the documents available for audit upon request.
C. Worker's Compensation Insurance. Providers of services to the City may be
required to file a certificate of Workers Compensation Insurance. Each
department is responsible for ensuring a copy of the certificate is filed with the
contract if appropriate. Contact the City Treasurer to determine if the certificate
is necessary.
X. EXCEPTIONS TO COMPETITIVE BIDDING
A. Cooperative Bidding
The Department may use the established state, federal, city, or county contracts
to make purchases. The Division of Purchasing contract information is located
at:
httD;/ /www2.state.id.us/adm/Durchasina/aovinfo.htm
In accordance with I.C. §67-2803(1) and §67-2807(1), departments may also
piggyback on other city or county bids within six months of the original bid award
if the pricing is consistent the original bid and the bid process followed I.C. Title
67. All bid documentation must accompany the purchase order.
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City employees are strongly urged to use State of Idaho
contracts.
State contracts are developed to include price, delivery, reporting capability and
other beneficial services. They meet the important competitive bidding criteria
and save the time and effort the employee spends shopping around.
B. Emergency Purchasing
Per LC. §67-2808(1), any sum may be expended by the City in the event of an
emergency such as "extraordinary fire, flood, storm, epidemic or other disaster,
of it is necessary to do emergency work to prepare for national or local defense
or to safeguard life, health, or property."
The Mayor must declare the emergency and provide expenditure approval. Such
contracts may not be for a period that exceeds one year.
C. Sole Source Purchasing - Purchases under $50,000
Per LC. §67-2808(2), competitive bidding requirements may be waived if the
there is only one vendor for the goods or services to be acquired: Sole source
acquisitions must be approved by the department's liaison prior to purchase.
Examples of sole source purchases:
. Where the compatibility of equipment, components, accessories, computer
software, replacement parts, or service is the paramount consideration
. Where a sole supplier's item is needed for trial use or testing
. Purchase of video's, books, or other copyrighted materials
. Purchase of property for which it is determined there is no functional
equivalent
. Purchases of public utility services
D. Professional or Consultant Services - Contracts Less Than $50,000
Professional service contracts less than $50,000 may be entered into without
formal bidding or a request for proposal. Professional service contracts
require review by the City of Meridian Attorney for legal adequacy and also
require the Mayor's signature.
Consultant Services. Work rendered by either independent individuals or firms
who possess specialized knowledge, experience, and expertise including but not
limited to such areas as management, personnel, finance, accounting, planning
and data processing. The consultant's work will be performed according to the
consultant's methods without being subject to the control of the City.
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Professional Services. Work rendered by an independent contractor who has a
professional knowledge of some department of learning or science. This
includes but is not limited to accounting and auditing, legal, education,
engineering, architecture, and research.
Special conditions exist for professional service contracts/agreements with
design professionals (engineers, architects and landscape architects),
construction managers, and professional land surveyors. See I. C. §67 -2320
E. Use of Correctional Industries
The City can purchase Correctional Industry furniture and other goods or
services without competitive bidding. The City may also utilize Idaho Department
of Correction labor crews without competitive bidding.
F. Procurement of an interest in real property. I.C. §67-2803(5).
G. Procurement of insurance. I.C. §67-2803(6).
XII. PAYMENT PROCESSING
A. Access Purchase Order System. This system was designed to bring uniformity
to the City's purchase orders and to give Departments their actual budget
balance at any given time. To maintain accuracy it is important that all purchases
be entered into the system, regardless of amount. Purchases under the
purchase order requirement dollar limit may be entered in the system without
generating an actual purchase order. This system is not linked to the City's
accounting system so the balance in the purchase order system must be
balanced to the accounting system financial reports on a monthly basis.
B. Purchase Order Requirements.
1. The purpose of a purchase order is to obtain and document approval to
purchase BEFORE the purchase is made. The purchase order should be
completely filled out prior to approval.
2. All fields on the purchase order should be filled out:
a. Bill To: City Hall address
b. Ship To: Purchaser's Location
c. Complete vendor name and address
d. Item description, account coding and price
e. Reason for purchase
3. There is a cost associated with generating purchase orders. Recognizing that
the City does not require purchase orders for purchases under $1,000 items
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on an existing contract (reference original purchase order number on invoice),
or utility charges.
C. Invoice Routing. All invoices will be processed and paid by the City's Finance
Department. All vendors should be directed to use one address, the City Hall
address:
City of Meridian
Attn Accounts Payable
33 East Idaho
Meridian, Idaho 83642
D. Invoice Processing. Central accounts payable will open mail and distribute
invoices to the correct departments. Statements will be retained and reviewed in
Accounts Payable.
1. All receiving documents must be initialed and dated and included with the
payment invoice.
2. Upon receipt of invoice, departments will match receiving documents,
purchase orders if appropriate, bid documents if appropriate, to invoices.
3. Each invoice will be stamped with a stamp that provides Accounts Payable
with the information necessary to enter the invoice in the accounting system.
This information includes Account number or numbers, Purpose of Purchase,
and Approval Signature
4. Completed invoices should be sent back to the City Hall Accounts Payable
office as soon as necessary documents are assembled. All invoices for the
month MUST be received in Accounts Payable by the 5th of the following
month.
5. Purchase orders or either the department head or the City Council liaison
must sign invoices before they are sent to Finance.
6. Accounts Payable will batch department payment requests and generate and
mail vendor payments. Invoice is paid the 10th of the month following the date
of the invoice.
7. Review of Purchases. The accounting department will review invoices for
compliance with City and statutory rules and regulations. However the
primary responsibility for the propriety of the expenditure rests with the
Department Director who signed the invoice.
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E. Opening Credit Accounts
For purposes of good internal control the use of store lines of credit shall be
discouraged. The decision to open a line of credit is the responsibility of the
Finance Director. City employees are not authorized to open lines of credit and
apply for and receive charge cards. Such accounts shall be canceled.
XIII. SURPLUS PROPERTY
A. Definition of Surplus Property. Personal property owed by the City where the
cost of maintenance, transportation, storage, or other costs exceed the economic
or useful life of the property.
B. Disposal. Surplus property will be disposed of in the manner that maximizes the
value received by the City of Meridian in accordance with the following
guidelines:
All employees of the City, including their spouses, dependents, or any person
acting on the employee 's beha/~ are prohibited from acquiring surplus property
form the City UNLESS the property is acquired through a competitive bid
process, such as an auction or sealed bid.
C. Guidelines. The following guidelines determine the method used to dispose of
property.
1. Nominal Value:
a. Item has a value of zero or less than what it would cost to dispose of the
property.
b. Dispose of item by donating to charitable organization that qualifies under
Section 501(c) and 501(c)(19) of the Internal Revenue Service or to any
state or local government pursuant to I.C §50-1405 or:
c. Dispose of item at local refuse site or have it removed by outside party
willing to pay for removal.
2. Less Than $1,000 Value
a. Sell or transfer to another state or local government pursuant to LC. 50-
1405 without public advertisement or competitive bid or:
b. Sell at public auction conducted by a licensed auctioneer or:
c. Sell to the highest bidder in response to notice of public sale advertised for
at least one week in a newspaper of general circulation.
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3. Greater Than $1,000 Value
a. Sell at public auction conducted by a licensed auctioneer or:
b. Sell after receipt of sealed bids to the highest responsible bidder after
notice of public sale.
D. Exceptions. With approval from the City Council and the Mayor items of greater
than nominal value may be donated to 501(c)(3) and 501(c) (19) charitable
organization or to the state or other local governments pursuant to LC. §50-1405.
E. Procedures for Disposal.
1. To dispose of an item a Property Disposal Authorization Request must be
completed. See Attachment 8, Property Disposal Authorization Request.
2. Once the form is complete it should be routed as follows:
a. Signature (and date) of Department Director.
b. Send to Finance Department.
completeness, sign, and date.
Accounting will review the form for
c. Accounting will route to Mayor for approval, Mayor will sign and date and
return to accounting.
d. Accounting will return the Property Disposal Authorization Form to the
requesting Department so they can proceed with disposal. A copy of the
form will be maintained in Accounting.
e. Once the property is disposed of the Department will note on the form the
final disposition of the property and forward to Accounting with asset
change form.
f. It is the responsibility of each Department to document actual final
disposal of the property. Failure to do so will be noted on the monthly
property disposal report prepared for the Mayor and Council.
g. Accounting will update the fixed asset system and remove the item.
Accounting will retain the documentation for audit purposes.
h. Once a month accounting will prepare a report for the Council
summarizing the month's disposal requests and actions. The Council
President will initial the report indicating that it has been reviewed.
H. SURPLUS REAL PROPERTY
Follow requirements of LC. Title 50, Chapter 14.
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Attachment "A"
Idaho Statutes Regarding Purchasing, Contracting and Procurement
Public Works Contractor Licensure Requirements
I.C. §54-1903 (i)
Exemptions to Public Works Contractor Licensure
I.C. §54-1903 (i) & (k)
Public Works Construction Bidding
I.C. §67-2803 (2) & (3)
Public Procurement of Goods and Services Bidding
I.C. §67-2803 (2)
I.C. §67-2805 (2) & (3)
Purchasing By Political Subdivisions
I.C. Title 67, Chapter 28
Exemptions to Public Procurement of Goods and Services Bidding
I.C. §67-2803 (1) through (7)
I.C. §67-2806
I.C. §67-2808 (1)
Joint Purchasing Program
I.C. §67-2807 (1)
Penalties - Political Subdivisions/Public Officials
I.C. §54-1914 (2)
I.C. §54-1920 (2)
I.C. §59-1026
Penalties - Contractors
I.C. §54-1914 (1)
I.C. §54-1920 (1) & (3)
Related Statutes
I.C. Title 54, Chapter 19: PUBLIC WORKS CONTRACTORS
I.C. §67-2309: WRITTEN PLANS AND SPECIFICATIONS FOR WORK TO BE MADE BY
OFFICIALS - AVAILABILITY
I.C. §67-2320: PROFESSIONAL SERVICE CONTRACTS WITH DESIGN
PROFESSIONALS, CONSTRUCTION MANAGERS AND PROFESSIONAL LAND
SURVEYORS
I.C. Title 50, Chapter 14: DISPOSAL OF SURPLUS REAL PROPERTY
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