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1337 ORDINANCE NO. 1337 ( #4 - 08) AN ORDINANCE MODIFYING JACKSONVILLE MUNICIPAL CODE if 3.08 ET SEQ. SO AS TO MODIFY PURCHASING AND SALE REQUIREMENTS OF THE CITY OF JACKSONVILLE; AND, FOR OTHER PURPOSES. WHEREAS, the City of Jacksonville, though authorized to do so by State statute since 2005, has delayed implementation of increased purchasing and sale requirements; and, WHEREAS, recent purchases and circumstances lead the Mayor and Department officials to recognize the benefit of modifying the City's purchasing limitations and sale requirements to insure more efficient and effective use of tax dollars, City assets, and employee services and time. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF JACKSONVILLE, ARKANSAS, THAT: SECTION ONE: Jacksonville Municipal Code 3.08. shall be modified to reflect the following amendments, changes, deletions, and modifications: 3.08.003 Purchase Authority All purchases shall be accomplished in compliance with ACA § 1458 -301 et. seq. 3.08.004 Purchasing Manual and Ordinances All departments and officials of the City of Jacksonville shall abide by and follow the City of Jacksonville Purchasing Manual. All regulations and procedures mandated by said Manual shall remain in full force and effect unless otherwise specifically modified or superseded herein. 3.08.010 Expenditures UD To Five Thousand Dollars ($5,000.00) All expenditures or purchases on behalf of the City for the acquisition or purchase of apparatus, equipment, labor, services, or supplies shall be made by the Mayor or his duly authorized representative(s) without the necessity of obtaining bids or quotations for those expenditures or purchases not exceeding Five Thousand Dollars ($5,000.00). 3.08.020 Expenditures above Five Thousand Dollars ($5.000.001 but below Ten Thousand Dollars (510,000.00) All expenditures or purchases on behalf of the City for the acquisition or purchase of apparatus, equipment, labor, services, or supplies shall be made by the Mayor or his duly authorized representative(s) shall be made after obtaining verbal or written bids or quotations for those expenditures or purchases above Five Thousand Dollars ($5,000.00) but not exceeding Ten Thousand Dollars ($10,000.00). All expenditures or purchases made by or through the State Bidding Program shall be exempted from these provisions as more specifically outlined in JMC § 3.08.060 et. al. 3.08.030 Expenditures above Ten Thousand Dollars ($10.000,00) but below Twenty Thousand Dollars ($20,000.00) All expenditures or purchases on behalf of the City for the acquisition or purchase of apparatus, equipment, labor, services, or supplies shall be made by the Mayor or his duly authorized representative(s) shall be made after obtaining written bids or quotations (in any applicable medium) for those expenditures or purchases above Ten Thousand Dollars ($10,000.00) but not exceeding Twenty Thousand Dollars ($20,000.00). All expenditures or purchases made by or through the State Bidding Program shall be exempted from these provisions as more specifically outlined in JMC § 3.08.060 et. al. ORDINANCE NO. 1337 ( #4 — 08) Page Two 3.08.040 Expenditures exceeding Twenty Thousand Dollars ($20,000.001 Where the amount of expenditure or purchase for the acquisition or purchase of apparatus, equipment, labor, services, or supplies exceeds the sum of Twenty Thousand Dollars ($20,000.00), the Mayor or his duly authorized representative shall invite competitive bids thereon by legal advertisement in any local newspaper with a minimum of one (1) publication. Bids received pursuant to the advertisement shall be opened and read on the date set for receiving the bids in the presence of the Mayor or his duly authorized representative. The acquisition, purchase, or contract shall be awarded to the lowest responsive and responsible bidder, provided that the Mayor, his duly authorized representative, and /or the City Council may reject any and all bids received. All expenditures or purchases made by or through the State Bidding Program shall be exempted from these provisions as more specifically outlined in JMC § 3.08.060 et. al. 3.08.041 Exceptions, Exemptions, and Modifications (1) In the event that all bids submitted for a project exceed the amount appropriated for the award of the contract, and if bidding on alternates was not required by the plans and specifications, City officials shall have the authority to negotiate an award with the apparent responsible low bidder, but only if the low bid is within Twenty-five percent (25 %) of the amount appropriated by the City for the project. (2) If the plans and specifications for the project require bids on alternates in addition to a base bid, there shall be no more than three (3) alternates and the alternates shall: (A) Be deductive; and, (B) Be set forth in the plans and specifications in numerical order. (3) If all bids submitted exceed the amount appropriated for the award of the contract, City officials may determine the apparent responsible low bidder by deducting the alternatives in numerical order. (4) After making the deductions, if the cost of the project is Tess than Twenty- five percent (25 %) above the amount appropriated for the project, then and only in that event may City officials negotiate a ward with the low bidder so determined. (5) Whenever it is obvious from examination of the bid document that it was the intent of the bidder to submit a responsible bid and the bid, if accepted, would create a serious financial loss to the bidder because of error such as transposition of figures, City Officials have the authority to relieve the bidder from responsibility under his bond and may reject this bid. (6) For all bid projects, City officials shall have designated and derived that; (a) the City Has the funds available to cover the costs associated with the project as bid; and, (b) have allocated those funds available for payment of the cost associated with this project. (7) No contract providing for the making of major repairs, alterations, for the erection of buildings or other structures, or for making other permanent improvements with costs exceeding Seventy-five Thousand Dollars ($75,000.00) shall be entered into by the City unless the bidding documents contain statements which encourage the participation of small, minority, and women's business enterprises. No bidding will be required for contract providing major alterations, repairs, for the erection of buildings or other structures, or for making permanent improvements to City property when all estimated costs of work required does not exceed the sum of Twenty Thousand Dollars ($20,000.00). 000007 ORDINANCE NO. 1337 ( #4 — 08) Page Three 3.08.042 Payment Approval The Mayor or his duly authorized representative may approve for payment out of any funds previously appropriated for that purpose or disapprove any bills, debts, or liabilities asserted as claims against the City, when funds on hand are adequate to pay such bills, debts or liabilities. The payment or disapproval of any bills, debts or liabilities not covered by a previous appropriation shall require confirmation of the governing body. 3.08.043 Preference In awarding bids and /or purchase orders, a Five Percent (5 %) preference will be given to vendors who, in accordance with ACA §19 -11 -259 as amended, so qualify. 3.08.050 Procedure - Supplies, Materials, or Equipment The Mayor or his duly authorized representative may sell or exchange any municipal supplies, materials, or equipment without competitive bidding if such supplies, materials or equipment have a value of less than Four Thousand Dollars ($4,000.00). The Mayor or his designated representative shall certify in writing that, in his opinion, the fair market value of such item or lot (to be disposed of in one unit) is less than Four Thousand Dollars ($4,000.00), and said item or lot may be sold by the Mayor or his designated representative without competitive bidding. No municipal supplies, materials, or equipment shall be sold without receiving competitive bids if said item's value thereof exceeds the sum of Four Thousand Dollars ($4,000.00). 3.08.080 Property Disposal Surplus personal property shall be disposed of in accordance with this Chapter and State law after that property has been declared surplus by the appropriate Department Head and written approval of such declaration by the Mayor or the Aldermen. Methods of disposal can include but are not limited to: Open bids; Sealed bids; or, Public auction. Disposal method shall be advertised in compliance with the terms of this Chapter and State law. SECTION TWO: All Ordinances or parts of Ordinances in conflict herewith are hereby repealed to the extent of such conflict. SECTION THREE: This Ordinance shall take effect immediately upon passage and publication, as provided by and subject to the requirements of applicable law. APPROVED AND ADOPTED THIS I DAY OF MAY, 2008. CITY OF JACKSONVILLE, ARKANSAS TOMMY SWAN, MAYOR ATTEST: SUSAN JA ITT, C CLERK .. oR ROBE "T E. BA BJ ORNEY