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HomeMy WebLinkAboutRESOLUTION NO. 2024-25RESOLUTION NO. 2024-25 A RESOLUTION TO APPROVE THE PURCHASING POLICY WHEREAS, the City of Fairfax, Iowa has a purchasing policy; and WHEREAS, some revisions are being proposed to the purchasing policy. NOW, THEREFORE, BE IT RESOLVED, by the Ciry Counci] of the City of Fairfax, Fairfax, Iowa, that they adopt the attached revised purchasing policy; and BE IT FURTHER RESOLVED, by the Fairfax City Council of the City of Fairfax, Iowa, that the Mayor and City Clerk are hereby directed to certify this resolution of approval. Passed and approved this 9th day of April, 2024. AYES: Nui��e, Daly, Wozniak, Volk, and Wainwright NAYS: None �'��-- �.� Jo Ann Beer, Mayor ATTEST: 1 /, �` � L �. C nthia K. Stimson, City Clerk/Treasurer ��:; ; CITY OF FAIRFAX PURCHASING POLICY As Revised 04-09-2024 The City of Fairfax needs to purchase items required to conduct the City's business. It is the intent to buy inaterials, supplies, and services of high quality at a reasonable cost. All pw�chasing actions by the City should be faii-, impartial, and free fi-om impropl�iety or the appeaiance of impropiiety. All qualified buyers and sellers shall lzave access to compete for City business, and no reasonable offer shall be arbitrarily excluded. 2. According the Iowa Code, Chapter 73.1, preference will be given to products and provisions grown and produced within the State of Iowa. Fairfax based companies will also be given preference for services; products; and provisions delivered, grown, and produced within Fairfax. 3. All purchases of, and contracts for, supplies and contractual seivices, for an estimated cost of $10,000 or more, except as specifically provided herein, shall be based whenever possible on competitive bids. Utilization of any State or Federal bid contracts satisfies the competitive bidding requirements. The City may consider life cycle costing analysis, and may give weight to the value of standard facilities and equipment, in selecting a vendor. Exceptions to the competitive sealed bidding requirements include: items valued under $10,000, professional services, and emergency purchases. Professional services shall be those services provided by a person with an advanced/specialized degree, such as a CPA, lawyer, architect, engineer, actuary, or in some cases a highly specialized consultant. Any project or purchase that is above the competitive bid or quote thresholds as set by the State of Iowa shall follow all applicable 1aws. 4. Under Iowa Law, the City of Fairfax is exempt from tax in the case of sales of articles purchased for the City's exclusive use. The City is not exempt from hotel/motel taxes. 5. A W-9 is required from any non-incoiporated vendor. 6. Role of the City Council: The City Council sets the annual budget for all City of Fairfax operations. The City Council gives foi-inal approval to any City policy. The City Council gives pay authoi�ization by approving the monthly claims list. The City Council must authorize the City of Faii-fax to enter into any contract. This could be a contract to purchase goods or services. If a contract is approved, any expenses under the contract provisions do not require purchase orders. The City Council must approve any pul-chase or project thar is above the competitive bid or quote thresholds as set by the State of Iowa. 7. Role of the Libraiy Board of Trustees: Although the City Council sets the total budget amount for the Failfax Public Library, the Library Board of Trustees has the right to determine how to spend that budget amount. The Library Board must approve all library expenditures. Those approved expenditures are then placed the on City Council's claims list for publication. The City Council does not have the legal right to disapprove payment for an expense the Library Board of Trustees has approved, unless it is found to exceed the library's budget or violate any law. 8. Role of the Mayor: The Mayor has the ability to make needed purchases for budgetary purposes, following all City of Fairfax policies. The Mayor is the supervisor for all employees. As such, the mayor has the ability to authorize employees to make needed purchases for budgetary purposes, following all City of Fairfax policies. 9. Role of Department Heads: The Building Administrator, the City ClerklTreasurer, the Parks and Recreation Director, the Fire Chief, the Library Director, the Public Works Supervisor, and the Water/Sewer Supervisor are all considered department heads for the City of Fairfax. The departrnent head inay autllorize or make purchases under $2,000.00 after detern�ining need, verifying available budget and cash, and determirling which general ledger line will be charged. All supporting paperwork available fi-om the purchase shall be turned into Fairfax City Hall and marked with infol-mation so the staff can process payment. The de�partment must approve personal funds Reimburseinent Forms fi-om tlleir employees. The department head completes and submits Purchase Orders as outlined in this policy. lO.Purchase Orders: The following is a chart to show what is required at each level of total costs. Total cost includes shipping/handling fees and transportation surcharges. $2,001 -$2,999 Purchase Order required before purchase $3,000 —$4,999 Three verbal quotes submitted with a PO before purchase $5,000 -$9,999 Three written quotes submitted with a PO before purchase $10,000+ Competitive bids apploved by City Council before purchase The department head prepares a Fairfax Purchase Order for purchases over $2,000.00. The purchase order shall identify the vendor, item, estimated cost, shipping address, the department's line-item account which will be used to pay for the item, and any other needed information. Any supporting paperwork, such has bids, shall be submitted to the City Clerk/Treasurer along with the purchase order. The City Clerk/Treasurer will give the PO a unique number, verify the general ledger line for payment, budget availability, available cash, and if a PO is required for this purchase. The City Clerk/Treasurer will then submit the PO to the Mayor or President of the Library Board of Trustees for approval or denial and signature. After action, a copy of the PO shall be forwarded back to the department head. The following iten�s do not require a PO regardless of dollal- alnount: • Insured accident losses that have been reported to t11e City's insurance con�pany • EqUipment repairs that are unscheduled (ie: sudden powertrain failure). Staff should use known City vendors that routinely handle similar repairs. • Annually bid items for which the price is honored for the i-emainder of the year. A PO is not required for each subsequent purchase but the date of o1-iginal bid and/oi approval should be noted on subsequent invoices. (An example would be water department chemicals.) • Contractual costs that have already been approved by the City Council. � • Monthly expenses for the City of Fairfax utilities. • Routine deliveiy of supplies such as fuel. 11.If an employee makes a purchase with their personal funds, they may complete a Reimbursement Foi-m to request financial reimbursement. The department head must approve the reimbursement form. The date, vendor, reason for purchase, amount, and general ledger line item should be noted on a signed Reimbursement Form before turning it in to Fairfax City Hall. 12.This policy may be circumvented if a situation arises that meets any of the following emergency procurement conditions: 1. The situation threatens public health, welfare, or safety. 2. The department must act to preserve critical services or programs. 3. The need is a result of events or circumstances not reasonable foreseeable. In the event that any of these situations occur, purchases of emergency need items can be made without approvals required by this policy. At the conclusion of the situations, formal documentation will be required by staff participating in the event to outline the occui-rence and justify the expenditures made under the emetgency exemption. The documentation will be presented to City Council for review and approval after the fact. 13. The following is added as directed by FEMA: UNDER FEDERAL GRANTS For fedei-ally funded procurenlent actions, where federal requirements conflict with the City of Fairfax Pw-chasing Policy the federal requirement, 01- most resttictive requirement will be followed. The City of Fairfax must conduct procurements in a manner that prohibits the use of statutorily or administratively imposed state, local, or tribal geographical pt-eferences in the evaluation of bids or proposals. 200.319(b) METHODS OF PROCUREMENT Procurement under grants shall be made by one of the following methods, as described heiein: (a) small purchase procedu�-es; (b) sealed bids (formal advertising); (c) competitive proposals; (d) noncompetitive proposals. A. Micro-Purchase Procedures 200.320(a) i. The acquisition of supplies or services, the aggregate dollar amount of which does not exceed the micro-purchase threshold -$10,000 (200.67) ii. To the extent practicable, must distribute micro-purchases equitably among qualified suppliers iii. May be awarded without soliciting competitive quotations if the non-Federal entity considers the price to be reasonable B. Small Purchase Procedures 200.320(b) i. Are those relatively simple and informal procurement methods for securing se�vices, supplies, or other property that does not cost more than the simplified acquisition threshold - $250,000 (200.88). ii. Price or rate quotations are to be obtained from an "adequate number" of qualified sources C. Sealed Bidding (foi-mal advertising) 200.320(c) i. Lowest priced, responsive, responsible, bidder WINS ii. The preferred method for construction when sealed bidding is "feasible", which is when certain conditions are present iii. Bids must be solicited from an "adequate number of known suppliers", providing them sufficient response time before date for the opening of bids iv. Bids will be opened at the time and place prescribed in the invitation for bids v. Must publicly advertise the invitation for bids vi. Bids must be opened publicly vii. Other procedut-al requii-ements at 200.320(c) (2) D. Competitive Proposals 200320(d) i. Used when conditions are not appropriate for the use of sealed bids ii. The appropriate method when lnore than one source is expected to submit an offer and either a fixed-price or cost-rein�bursement type contract is awarded iii. Awards will be made to the responsible firm whose proposal is most advantageous to the pi-ogram, with p��ice and other factors considered iv. Requests for proposals mztst be publicized and identify all evaluation factors and their relative importance v. Proposals must be solicited fi-on1 an adequate number of qualified sources vi. Must have wi-itten method for conducting technical evaluations of the pioposals received and fo1- selection of the connact E. Noncompetitive Proposals 200.320(� � i. Piocurement through solicitation of a pl-oposal from only one source and may be used only when one or more of the following circumstances apply: a. One Source: the itetn is available only fi-om a single source b. Exigency/Emergency: an exigency or emergency will not permit a delay resulting from competitive solicitation c. Awarding Agency Approval: the Fedeial awarding agency or pass-through entity expressly authorizes noncompetitive proposals in response to a written request from the non-Federal entity d. Inadequate Competition: after the solicitation of a number of sources, competition is determined inadequate CONTRACTING WITH SMALL AND MINORITY BUSINESSES, WOMEN'S BUSINESS ENTERPRISES, AND LABOR SURPLUS AREA FIRMS (200.321) A. Assuring that small and minority businesses, and women's business enterprises are solicited whenever they are potential sources; B. Placing qualified small and minority businesses and women's business enterprises on solicitation lists; C. Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority businesses, and women's business enterprises; D. Establishing delivery schedules, where the requirement permits, which encourage participation by small and ininority businesses, and women's business entetprises; E. Using the services and assistance, as appropriate, of sucli organizations as the Small Business Administl-ation and the Minority Business Development Agency of the Department of Commerce; and F. Requiring the prime contractor, if subcontracts are to be let, to take the affirmative steps listed in paragraphs (a) through (e). CONTRACT PRICING (200.323) A. The cost plus a percentage of cost and percentage of construction cost method of contracting shall not be used. B. City of Fairfax shall perfornl some fornl of cost/price analysis for every procurement action, including contract n�odifications, amendments, or change orders. City of Fairfax shall make an independent estitnate prior to i�eceiving a bid or proposal. City of Fairfax shall negotiate profit as a separate element of the price for each contract in which there is no price competition and in all cases where cost analysis is perfonned. In determining a fair and reasonable profit, City of Fairfax must consider the complexity of the work to be performed, the risk bo�ne by the contractor, the contractor's investment, the amount of subcontracting, the quality of its record of past pezfo�-�nance and the industry profit rates in the surrounding geographical area. PROCURElVIENT RECORDS City of Fairfax shall maintain records sufficient to detail the significant history of a procurement, including the rationale for the method of procurement, selection of contract type, contractor selection oi- rejection, and the basis for the contract piice. (200.324) (a) City of Fairfax must make available, upon request of the Federal awarding agency or pass through entity, technical specifications on proposed procurements where the Federal awarding agency or pass-through entity believes such review is needed to ensure that the item or service specified is the one being proposed for acquisition. (b) City of Fairfax must make available upon request, for the Federal awarding agency or pass through entity pre-procurement review, procurement documents, such as requests for proposals or invitations for bids, or independent cost estimates, when: (1) City of Fairfax procurement procedures or operation fails to comply with the procurement standards in this part, (2) The procurement is expected to exceed the Simplified Acquisition Threshold and is to be awarded without competition or only one bid or offer is received in response to a solicitation; (3) The procurement, which is expected to exceed the Simplified Acquisition Threshold, specifies a"brand name" product; (4) The proposed contract is more than the Simplified Acquisition Threshold and is to be awarded to other than the apparent low bidder under a sealed bid procurement; or (5) A proposed contract modification changes the scope of a contract or increases the contract amount by more than the Simplified Acquisition Threshold. (c) City of Fairfax is exelnpt fi-om th� pre-procw-ement review in paragraph (b) of this section if the Federal awarding agency or pass-through entity determines that its pi�ocurement systems comply with the standards of this Pai�t. (1) City of Fairfax inay request that its procuT-enlent systeln be 1-eviewed by the Federal awarding agency or pass-thi-ough entity to determine whether its system meets these standards in order for its system to be certified. Generally, these reviews must occur where tl�ere is continuous high-dollar funding, and thiid pai-ty contracts are awarded on a regular basis; (2) City of Fairfax may self-cei�tify its procurement system. Such self certification must not limit the Federal awardirlg agency's right to survey the system. Under a self-certification procedure, the Federal awarding agency may rely on written assurances from City of Fairfax that it is complying with these standards. City of Fairfax must cite specific policies, procedures, reg�ulations, or standards as being in compliance with these requirements and have its system available for review. AWARDED CONTRACTS A. City of Fairfax will not award a contract to a party listed as debarred, suspended, or otherwise excluded in the System for Award Management (SAM). www.sam.gov (200.213) B. Contracts awarded shall contain the applicable contract provisions described in 2 CFR 200.36 And Appendix II to Part 200. C. City of Fairfax will maintain written standards of conduct covering conflicts of interest and must provide for disciplinazy action to be applied for violations of such standards as defined in 2 CFR 200.318 (c) (1). No officer, employee, or agent of the City of Fairfax shall participate in the selection, award, or administration of a contract supported by federal grant funds, if a conflict of interest, real or apparent, would be involved. Such a conflict would arise when: The employee, officer, or agent: Any member of his/hei- immediate family; His/her partner; or an organization which employs, or is about to employ any of the above; has a financial or other interest in the firm selected for award. City of Fairfax officers, employees, or agents shall neithel- solicit nor accept gratuities, favors, or anything of monetary value from contractors, potential contractors, or subcontractors. To the extent permitted by federal, state, or local law or regulations, violation of these standards may cause penalties, sanctions, or other disciplinary actions to be taken against the City of Fairfax's officei-s, employees, or agents.