Chapter 3.36 — PURCHASING AND CONTRACTING

The provisions of this chapter are adopted pursuant to the Exeter City Charter.

A.

The city administrator shall have control of the city purchasing and contracting system, and may delegate such authority as is permitted by this code, resolutions, and rules and regulations promulgated in conformance therewith.

B.

The finance director is designated as the purchasing officer and shall have such duties as set out herein.

(Ord. 579 §2(part), 1999)

The duties and responsibilities of the purchasing officer shall be:

A.

Purchase or contract for all supplies, equipment and contractual personal services, excluding professional services, needed by all city departments or agencies which derive financial support wholly or in part from the city, in accordance with purchasing procedures as prescribed by this chapter and the city council, relevant administrative regulations and such rules and regulations as the purchasing officer shall adopt, subject to city administrator approval;

B.

Negotiate and recommend execution of contracts for the purchase of supplies and equipment and for the contracting for services from the lowest responsible bidder;

C.

Act to procure for the city acceptable quality of supplies, equipment and services at the least expense to the city;

D.

Discourage uniform bidding by purveyors and induce full competition on all purchases and for all contracts;

E.

Adopt administrative regulations, subject to prior approval of the city administrator, including revisions and amendments thereto, governing the purchase of goods and the contracting for services or supplies and equipment for the city;

F.

Keep informed of current developments in the field of purchasing and contracting, prices, costs, market conditions, new products and new contractual situations prevailing in the industries which might be supplying goods or services to the city;

G.

Prescribe, design and issue forms needed for the operation of the procedures and requirements set out in this chapter, and such other applicable rules and regulations as may seem necessary to fulfill the requirements of this chapter;

H.

Regulate the transfer of surplus property between departments as needed, or sell or otherwise dispose of surplus property when designated as such by the department heads or city administrator, subject to city council approval;

I.

Maintain a bidders list, vendors and contractors catalog file, and such other records as might be used in modern procurement;

J.

Assure insofar as is possible that every bidder complies with all applicable city, state and federal health, employee, safety, and occupational laws and regulations;

K.

Such other matters as shall be required to fulfill the requirements and procedures of this chapter, the City Charter and requirements of the city council and the city administrator.

(Ord. 579 §2(part), 1999)

Generally, the purchasing procedures of the city shall consist of the following:

A.

Determination of requirements by the purchasing officer in consultation with the requesting department head;

B.

The negotiation of or processing of appropriate procurement actions;

C.

Referral of bids to using departments or agencies for analysis and recommendations;

D.

Award of purchase order or contract to the lowest responsible bidder, when required;

E.

Approval of invoices for payment.

(Ord. 579 §2(part), 1999)

As needed, the purchasing officer, in conjunction with using departments or agencies, shall develop standard specifications for repetitively procured items and services.

A.

Every specification shall be prepared to assure the broadest possible bidder participation, consistent with the needs of the using agency.

B.

Alternative specification provisions for any particular bid invitation may be established with concurrence of the purchasing officer and the using department or agency.

(Ord. 579 §2(part), 1999)

Annually, as part of the city budget, city staff shall provide data and the city council shall adopt new dollar limits affecting sections of this chapter in which dollar limits are set out.

A.

Such dollar limits for purchases of goods and supplies shall be adjusted by the same percentage as the Municipal Price Index (MPS) as determined by city and county magazine shall have changed during the prior calendar year, either upward or downward.

B.

Such dollar limits for construction and equipment purchases and contracts shall be adjusted by the same percentage as the McGraw Hill Index of Construction Prices shall have changed during the prior calendar year, either upward or downward.

(Ord. 579 §2(part), 1999)

A.

Insofar as is legally permissible, bidders and suppliers who have a business located within the city and pay a business license tax to the city, shall be provided preference in the award of bids by the city.

B.

In addition, insofar as is legally possible. bidders which agree to employ persons to work on the specific project for which a bid is being submitted and/or which employ persons living within the city limits of the city, shall be provided additional preference in the award of bids by the city.

(Ord. 579 §2(part), 1999)

All purchases and contracts in excess of ten thousand dollars, except for emergency purchases, shall require city council approval.

(Ord. 579 §2(part), 1999)

The city administrator may delegate in writing to the department heads, purchasing officer or other city officer as he/she shall determine, the authority to make purchases and to contract for items and services involving less than twenty-five thousand dollars. Such delegated authority shall be exercised as set out in this section, and shall be subject to other applicable provisions of this chapter.

A.

Purchases under this section shall be made whenever possible after receipt of three or more quotations and awarded based upon price, quality, availability and any and all other relevant factors.

B.

Either verbal or written quotations shall be received from prospective vendors or contractors, and notations made thereof in every case involving any purchase or contract of amount greater than five thousand dollars.

C.

Written quotations shall be solicited and received from prospective vendors or contractors and made a part of the file for each specific proposed acquisition of goods or services involving amounts greater than five thousand one dollars up to and including twenty-five thousand dollars.

(Ord. 579 §2(part), 1999)

All purchases and contracts involving amounts between twenty-five thousand one dollar and seventy-four thousand nine hundred ninety-nine dollars shall be purchased and contracted for only under the

procedures set out in this chapter.

A.

Award of all contracts and purchases made pursuant to the procedures of this section shall be made to the lowest responsible bidder or vendor meeting specifications, except as specifically otherwise authorized by this chapter.

B.

Written quotations shall be secured in all cases from at least three prospective and qualified vendors or contractors, and such quotations shall be made a part of the file of each purchase made or contract awarded under this section. Such file shall be maintained for three years after award of the contract or purchase order.

(Ord. 579 §2(part), 1999)

The procedure set out in this section shall be utilized for all purchases or contracts involving amounts of seventy-five thousand dollars or more.

A.

Award of all contracts and purchases made pursuant to the procedures of this section shall be made to the lowest responsible bidder meeting specifications, except as specifically otherwise authorized by this chapter.

B.

Written specifications and plans, if appropriate, shall be prepared for all purchases proposed to be made and contracts proposed to be awarded under this section. Such specifications and plans, together with the deadline for and place to file sealed bids with the city, and other requirements, shall be circulated to publications appropriate to the subject of the call for bids, posted at City Hall, and advertised in a legally adjudicated newspaper in geographic areas appropriate to reaching prospective bidders.

C.

Such notices and advertisements shall be designed to cause full public notification of all calls for sealed bids by providing at least ten days' written notice to prospective bidders prior to the proposed deadline for the receipt of sealed bids.

D.

Sealed bids shall be accompanied by a bid bond or cashiers check in the amount set by the city administrator and failure to include such bid bond or cashiers check with any bid shall be disqualifying.

E.

Sealed bids shall be received and opened by the city official designated by the bid call, at the place and time specified in said bid call.

F.

A written analysis shall be made of all sealed bids received under the procedures of this section, and shall contain information relative to all bidders, including a written recommendation by the affected department head and the city administrator as to which bidder is recommended to be the lowest responsible bidder.

G.

All bid calls shall contain the statement that the city council may reject any and all bids for any good or service and may cancel any call for bids at any time in the process.

(Ord. 579 §2(part), 1999)

The acquisition of copyrighted and patented items, specialized or professional services, and services for which there is no reasonable alternative which is of equal or better quality or nature, shall be made by following the procedures set out in this section.

A.

The purchase order or contract award for such professional or specialized services or materials shall have a copy of a statement attached thereto by both the vendor or contractor and the city administrator stating the reasons and the specific copyright or patent circumstances which have given rise to the invoking of this exception to the competitive acquisition processes set out in this chapter. The original of such statement shall be filed with the city clerk.

B.

The selection of a provider of professional or specialized services involves a qualitative judgment in addition to quantitative and dollar amount issues. According such selections shall not be made exclusively or primarily based upon price.

C.

When this exception to the competitive purchasing and contracting procedures set out in this chapter is utilized, a written finding shall be filed with the contract and the city clerk regarding the reason for such noncompetitive acquisition and, further, the process utilized in the selection of contractors to be interviewed, the interview process used, those firms contacted and interviewed, and the results of such interviews, cumulatively which shall have resulted in the decision to award the contract to the firm to which the contract was subsequently awarded.

D.

The criteria utilized for this exception to the competitive process of this chapter shall include a requirement for specialized abilities and knowledge in addition to quality and the price. This process shall not be utilized

without the prior written approval of the city administrator.

E.

"Professional services" means work performed by specially trained and experienced persons, firms or corporations rendering professional services and advise such as accounting, auditing, financial advisory, securities underwriting, legal, medical, engineering, architectural, environmental, economic, real estate, insurance, appraisal, lobbying, public relations, ordinance codification and publication, or similar such highly specialized services.

(Ord. 579 §2(part), 1999)

The city council may reject all bids for the purchase of supplies, materials, services and contract construction and, by subsequent four-fifths vote of the council, may proceed to contract to have such work done or supplies, materials and services acquired directly in the open market, without further observance of the provisions of this chapter.

(Ord. 579 §2(part), 1999)

All supplies, equipment, construction and services for federally-assisted grant or loan programs shall be procured in accordance with "Attachment O" of "OMB Circular No. A102," contained in the "Standards Governing State and Local Grantee Procurement," or any successor documents.

(Ord. 579 §2(part), 1999)

A.

Without complying with other sections of this chapter, the purchasing officer may participate in, sponsor, conduct or administer a cooperative purchasing agreement for the procurement of any supplies, equipment, service or construction with one or more public procurement units, in accordance with an agreement entered into between the participants.

B.

Such cooperative purchasing may include, but is not limited to, joint or multiparty contracts between public procurement units, and open-ended state public procurement contracts which are made available to the city.

C.

If it is determined to be in the best interest of the city, the purchasing officer may, with approval from the city council where council approval would have otherwise been required for said purchase, utilize "piggy- back" procurement and utilize another public agency's contract or agreement to obtain more advantageous prices and terms that can be otherwise obtained on the open market. The city may piggyback onto or join

into an existing written purchase contract, or enter into purchase contracts for supplies or services, the pricing and terms of which have been previously established by another public agency, when the existing contract was obtained within the last forty-eight months through a competitive bidding process prepared and awarded by another public local, state or federal government agency. The contract with the city shall be for a term equal to the remaining term of the existing contract, including any contractually allowed extensions, provided that there is at least one year left in that term. If there is less than one year left in the term the city may utilize the other public agency's contract or agreement and approve the use of the contract price and terms for a longer period, provided the city council makes written findings supporting the utilization.

(Ord. 579 §2(part), 1999; Ord. No. 691, §1, 1-14-2020)

The provisions of this chapter may be waived when the following circumstances exist:

A.

During emergencies which have been declared by a four-fifths vote of the city council, or by order of the Governor or President, which emergency shall encompass the city and/or its services.

B.

An emergency determined by the city administrator and the purchasing officer if:

There is a great public calamity; or

There is immediate need to prepare for national or local defense; or

There is breakdown in machinery, equipment or essential service which requires immediate purchase of supplies and equipment to protect public health, welfare or safety; or

An essential departmental operation affecting the public health, welfare or safety would be greatly hampered if the prescribed purchase would cause an undue delay in procurement of the needed item or service.

C.

A statement of the nature of the declared emergency shall be attached to each purchase order issued pursuant to the provisions of this section.

D.

The purchasing officer is authorized to make emergency purchases for all supplies, equipment and services which cost ten thousand dollars or less; the city administrator is authorized to make such purchases which cost one hundred thousand dollars or less, but the city council shall authorize any purchases in amount exceeding one hundred thousand dollars.

(Ord. 579 §2(part), 1999)

Selected commodities with recurring high usage rates may be stocked and issued from central stores under the direction and control of the purchasing officer.

A.

The purchasing officer shall examine usage rates for various commodities and, in coordination with using department, expend or reduce the quantities and types of items in such central stores.

B.

Central stores items shall be replenished as needed from the purchasing revolving account through regular purchasing procedures.

C.

Inventory levels of commodities on hand in central stores shall be determined by the purchasing officer, based on economic and demand factors.

D.

Detailed instructions for ordering and accounting.

E.

The purchasing officer shall have authority to sign bills of sale and any other papers or documents for and on behalf of the city evidencing transfer of title of the property.

F.

Prior to disposing of any obsolete or surplus personal property having an apparent market value in excess of twenty-five thousand dollars the purchasing officer shall inform the city council of the nature of the personal property proposed for disposition and the price offered and shall obtain the council's approval for such disposition.

(Ord. 579 §2(part), 1999)

Purchase of supplies and equipment and the award of public works contracts shall be made in accordance with prescribed administrative regulations governing the preparation and issuance of purchase orders. Except as otherwise prescribed in this chapter, the administrative regulations governing purchasing and

contracting shall establish responsibilities for the signing and processing of purchase orders, and no exceptions may be made unless specifically provided for in said regulations.

(Ord. 579 §2(part), 1999)

Each using department or agency shall submit at least annually to the purchasing officer, or more often if required, in the form and manner he shall prescribe, reports describing all supplies, equipment, materials, fixtures and other personal property of the city in the custody of the department or agency which personal property has become obsolete or unserviceable.

A.

Subject to the provisions of subsection F of this section, the purchasing officer is authorized from time to time, to sell or to exchange any and all such surplus or unserviceable equipment, materials, fixtures and other personal property of the city, including trade-in value if such property is to be replaced.

B.

The purchasing officer may sell for the best price obtainable in the open market or, when he deems it advisable, to the highest bidder at public sale, or he may exchange such surplus property for credit on other property.

C.

In the event the purchasing officer determines that any such obsolete or surplus property has no salvage value, he may dispose of it as he deems advisable.

D.

All sales of such surplus or obsolete personal property shall be for cash or certified check or money order payable to the city.

E.

The purchasing officer shall have authority to sign bills of sale and any other papers or documents for and on behalf of the city evidencing transfer of title of the property.

F.

Prior to disposing of any obsolete or surplus personal property having an apparent market value in excess of twenty-five thousand dollars the purchasing officer shall inform the city council of the nature of the personal property proposed for disposition and the price offered and shall obtain the council's approval for such disposition.

(Ord. 579 §2(part), 1999)

At the direction of the city council, the city administrator shall determine which public works projects may be performed by city forces, or what portions of any public works project which is to be bid to be performed by contract will be performed by city forces and thus excluded from such bid process.

A.

Such determination shall be made by the city administrator after consultations with the appropriate city department head, and shall take into consideration the skills and abilities, wage and benefit rates, and time availability of the specific city employees who would be involved in such specific public work project.

B.

Reasons for the decision made by the city administrator shall be filed with the bid documents should such project be performed in part by city forces, and in the construction files for the project should such public works project be performed in whole by city forces.

(Ord. 579 §2(part), 1999)

Nothing in this chapter shall be construed to require the contracting out of the care, repair or maintenance of streets, city-owned utilities or properties.

(Ord. 579 §2(part), 1999)

Changes in the general method or policy of purchasing and contracting by the city, and the operation of central stores, shall be made only by amending this chapter; provided that changes affecting only the details or forms used in the administration of these provisions concerning purchasing, contracting and central stores may be initiated by the purchasing officer or city administrator as administrative revision to the pertinent procedural regulations.

(Ord. 579 §2(part), 1999)

"Lowest responsible bidder" as used in this chapter means the lowest bidder whose offer best responds in quality, fitness and capacity to the requirements of the proposed work or usage, as specified in determining the lowest responsible bidder, the following shall be considered, in addition to price:

A.

The quality of supplies offered;

B.

The ability, capacity and skill of the bidder to perform the contract or to provide the supplies or services required;

C.

Whether the bidder can perform the contract or provide the supplies or services promptly, or within the time specified, without delay or interference;

D.

The sufficiency of the bidder's financial resources and the effect thereof on his ability to perform the contract or to provide the supplies or service;

E.

The character, integrity, reputation, judgment, experience, and efficiency of the bidder;

F.

The quality of the bidder's performance on previous orders or contracts for the city;

G.

Litigation by the bidder on previous orders or contracts with the city;

H.

Previous and existing compliance by the bidder with local laws and ordinances relating to the subject of the purchase or contract;

I.

The ability of the bidder to provide future maintenance and service where such maintenance and service is essential.

(Ord. 579 §2(part), 1999)