1678ORDINANCE NO. 1678 (#28 - 2021)
AN ORDINANCE AMENDING THE CITY OF JACKSONVILLE PURCHASING MANUAL
FOR GUIDANCE AND USE BY THE CITY OF JACKSONVILLE EMPLOYEES;
DECLARING AN EMERGENCY; AND, FOR OTHER PURPOSES.
WHEREAS, Officials of the City of Jacksonville, Arkansas have determined a need to update
the current Purchasing Manual; and
WHEREAS, the adoption of the attached Purchasing Manual for the City of Jacksonville
will serve as a guideline and direction for City of Jacksonville employees.
BE IT ORDAINED AND ENACTED BY THE CITY COUNCIL OF THE CITY OF
JACKSONVILLE, ARKANSAS, THAT:
SECTION ONE: The City of Jacksonville Purchasing Manual, as attached hereto and as
made a part hereof, is hereby approved in its entirety for the promotion of effective and efficient use
of purchasing policies and procedures for City employees.
SECTION TWO: Any Ordinance or Resolution or parts thereof in conflict herewith are
-- hereby repealed to the extent of such conflict.
SECTION THREE: The need for a Purchasing Manual is necessary to insure compliance
with appropriate laws and provisions. Therefore, an emergency is hereby declared to exist, and this
Ordinance shall be in full force and effect from and after its date of passage.
ATTEST:
APPROVED AND ADOPTED THIS 18TH DAY OF NOVEMBER, 2021.
CITY OF JACKSONVILLE, ARKANSAS
BOB JOHNSON, MAYOR
CITY CLERK
ORDINANCE NO. 1678 (928 - 2021)
Page Two
APPROVED AS TO FORM:
i
X'--
STEPHAME MEDMAN, CITY ATTORNEY
CITY OF JACKSONVILLE, ARKANSAS
PURCHASING MANUAL
Revised 2021
Codified under JMC 3.08.004
TONJA GILBERT
PURCHASING SPECIALIST
982-6641
DEBBIE JERNIGAN
ACCOUNTS PAYABLE SPECIALIST
982-4502
OFFICE FAX 985-9768
CHERYL ERKEL— FINANCE DIRECTOR
LAURA COLLIE —ASST. FINANCE DIRECTOR
Table of Contents
I. INTRODUCTION......................................................................................................................1
A. PURPOSE OF THE MANUAL.............................................................................................................. 1
B. OBJECTIVES OF THE FINANCE DEPARTMENT AND THIS MANUAL .................................................... 1
C. RESPONSIBILITIES - FINANCE DEPARTMENT.................................................................................... 1
D. RESPONSIBILITIES -CITY DEPARTMENTS.........................................................................................2
E. PURCHASING POLICY........................................................................................................................ 3
II. PURCHASING PROCEDURES............................................................................................................ 4
A. PURCHASE REQUISTION...................................................................................................................4
B. PURCHASE ORDERS..........................................................................................................................4
C. BLANKET PURCHASE ORDERS........................................................................................................... 4
D. ENCUMBRANCE OF FUNDS....................................................................................................................4
E. TRAVEL.............................................................................................................................................4
F. RECEIPT AND INSPECTION................................................................................................................5
G. INVOICES.......................................................................................................................................... 5
H. PETTY CASH PURCHASES..................................................................................................................6
I. PAYMENTS........................................................................................................................................7
III. BIDDING PROCEDURES.................................................................................................................... 8
A. COMPETITIVE BIDS........................................................................................................................... 8
B. COMPETITIVE BIDS BY TELEPHONE..................................................................................................8
C. WRITTEN INFORMAL BIDS................................................................................................................ 8
D. FORMAL BIDS................................................................................................................................... 8
E. BID PROCESSING.............................................................................................................................. 9
F. BIDDING EXCEPTIONS, EXEMPTIONS, AND MODIFICATIONS........................................................... 9
G. EMERGENCY PURCHASES............................................................................................................... 11
H. SPLIT PURCHASE - PROHIBITED...................................................................................................... 12
IV. GENERAL FIXED ASSETS.......................................................................................................................13
A. ACQUISITION..................................................................................................................................13
B. TRANSFERS............................................................................................................................................13
C. DISPOSALS......................................................................................................................................13
D. INVENTORY..................................................................................................................................... 13
V. ETHICS............................................................................................................................................14
A. GENERAL ETHICAL STANDARDS...................................................................................................... 14
B. EMPLOYEE CONFLICT OF INTEREST................................................................................................ 14
C. GRATUITIES AND KICKBACKS.......................................................................................................... 14
D. CONFIDENTIAL INFORMATION............................................................................................................14
MUNICIPAL CODE ON PURCHASING PROCESSES....................................................................................... 15
CHARTOF ACCOUNTS................................................................................................................................. 22
PRICEQUOTATION SHEET.......................................................................................................................... 27
BS&A PURCHASE ORDER QUICK GUIDE..................................................................................................... 28
I. INTRODUCTION
A. PURPOSE OF THE MANUAL
The intent and purpose of this Manual is to establish operational
policies for the City's Purchasing System to assure the Community
that the goods and services required to support the operation of
City government are procured in a manner consistent with City
Ordinances, Administrative Directives, and Arkansas Code
Annotated and to assure the Community that the procurement
system of the City is committed to fair and equal opportunity with
integrity and openness. The Personnel in the Finance Department
are prepared to answer questions that may arise from any existing
problems or clarify any information contained in this Manual. If we
may be of assistance to you, please do not hesitate to call us at
501-982-6641.
B. OBJECTIVES OF THE FINANCE DEPARTMENT AND THIS MANUAL
• To clearly establish that the responsibility for purchasing is the
responsibility of all employees with the assistance of the Finance
Department.
• The timely procurement of all supplies, materials, equipment,
contractual labor and services, as specified by City Ordinance and
this Manual, at the most appropriate cost and best quality
consistent with the goods and services required.
• To exercise positive financial accountability in the expenditure of
City funds.
• To ensure the fair and equitable treatment of all persons who deal
with the purchasing system of the City.
• To ensure that all parties involved in the negotiation, performance
or administration of City contracts act in good faith.
C. RESPONSIBILITIES OF THE FINANCE DEPARTMENT
• Assure compliance with Federal, State, and City laws and
regulations pertaining to acquisition of supplies, equipment, and
services.
• Promote an understanding of sound purchasing policies and
procedures throughout all Departments of the City.
• Provide aid and assistance to all Departments in purchasing
matters.
• Maintain up-to-date vendor files.
• Advertise and evaluate bids and maintain bid files.
• Determine compliance with purchasing regulations.
• Approve Purchase Orders.
• Audit invoices received to assure prices and account numbers are
correct.
• Compliance with and enforcement of the procedures outlined in this
manual.
• Generation and maintenance of all files necessary to evidence
compliance with City purchasing requirements.
• Property Disposal through public auction or other authorized
measures.
D. RESPONSIBILITIES OF CITY DEPARTMENTS
• Provide sufficiently defined information on items to be purchased
and assist in the preparation of specifications.
• Prepare Purchase Requisitions through BS&A Purchase Order
module.
• Plan purchases to eliminate avoidable emergencies.
• Provide complete receiving information including sales receipts to
the Finance Department.
• Submit invoices immediately to the Finance Department for
payment, making sure the correct General Ledger Number and
Purchase Order number is written on the face of the invoice. The
invoice must be signed with an "ok to pay" before submitting to the
Finance Department. Prices must be checked by the Department to
verify they are correct.
• Notify the Finance Department of Surplus Property.
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E. PURCHASING POLICY
To maintain integrity in its relationship with the public, it is the policy
of the Finance Department and all City employees not to accept any
gifts or gratuities that contain value from any vendor and to comply
with all applicable provisions of local, state, and federal law. All
purchases will be made by the City without regard to race, color,
creed, national origin, or sex and in accordance with this manual.
The Finance Department exists to obtain needed goods and
services utilized by the City Departments at the best available price.
The criteria for awarding any bid, contract, or individual commodity
to any vendor shall include, but are not limited to, the following:
price, quality of item bid vs. that requested, delivery time, past
performance by the vendor; and, the vendor's ability to service or
support its product.
In accordance with City of Jacksonville Municipal Code 3.08.004,
the Finance Department along with all City employees will follow
the City of Jacksonville Purchasing Manual.
II. PURCHASING PROCEDURES
The Budget provides a guideline for each Department to use in making
purchases.
A. PURCHASE REQUISITION
A Purchase Requisition must be submitted through BS&A Purchase
Order module prior to making a purchase. Care should be
exercised to indicate the proper General Ledger number for
charging the item against the department's budget.
B. PURCHASE ORDERS
The Finance Department approves and issues all purchase orders.
C. BLANKET PURCHASE ORDERS
Blanket Purchase Orders can be used for recurring monthly
expenditures from the same vendor. The total estimated cost of the
items can be obtained by referencing past requisitions and
purchases. Each purchase will be subtracted from the blanket
purchase order until the encumbrance has been expensed. If
additional purchases need to be made, a new requisition must be
submitted.
D. ENCUMBRANCE OF FUNDS
All requisitions and following purchase orders issued call for
encumbering the necessary funds for completion of the order from
the proper account(s). This is primarily an accounting procedure,
that is automatically generated through the BS&A Accounting
System. However, it is essential that all Department Directors be
continually aware of the correct balance of unencumbered funds in
their Department budgets and realize the effects of expenditures
and encumbrances on their budgets and the appropriate line
items/funds.
E. TRAVEL
Department Directors must approve all requests for official travel
prior to the Employee's departure. The City's Travel Policy
(P:\POLICY MANUAL\Policy Manual Revisions 9-12-12 pdf)
establishes the rules governing the eligibility for payment of
expenses incurred by the Employee. These rules provide for the
payment of travel funds to employees and for the reimbursement of
out-of-pocket expenses.
Hotel reservations can be made using the City credit card. The
hotel authorization form should be faxed to the Finance
Department. The Finance Department will complete the credit card
information and fax it back to the Hotel. The traveling employee will
need to submit a requisition using the City's currently approved
Bank Card Services as the vendor and list the Hotel name in the
description.
F. RECEIPT AND INSPECTION
Upon receipt of delivery, the receiving department should check
delivery against the invoice. The delivery receipt should be signed
and dated by the Employee receiving the merchandise and
forwarded to the Finance Department. Deviations in quantity,
description, or condition of commodities should be noted on the
invoice.
If the materials delivered are not in conformity with the required
specifications or for other reasons, are not acceptable to the using
department, they shall notify the Finance Department of the
reasons for withholding acceptance. The using Department shall
notify the vendor that the delivery has been rejected and that a
satisfactory replacement of a supplementary delivery must take
place before payment can be processed.
Adequate inspection of deliveries is an important but frequently
neglected part of the purchasing procedure. Such inspection of
deliveries saves the City from losses due to errors or deliberate
attempts to defraud.
G. INVOICES
An invoice is the vendor's statement of its charges to the City for
items/services provided. Invoices are normally based on
information from Purchase Orders and must contain substantially
the same information. Invoices should be mailed to the Finance
Department. In some cases, however, the invoices may be
delivered with the items at the receiving point. In this case, the
using Department must forward it to the Finance Department.
Please note that packing slips are not considered invoices.
• Invoices received by the using Department must be scanned into
the using Department's purchasing folder found on the public drive.
The PO number must be written on the invoice and signed with an
"ok to pay".
♦Definition of "ok to pay" — types of documents telling the
Purchase Department to pay an invoice are: shipping/delivery
tickets, receipts, confirmations, receiving document, completion
document form, or an electronic signature on the invoice. An
email should only be used if no documentation is available.
• Invoices received by the Finance Department will be scanned into
the Invoice and Statement folder located on the public drive.
H. PETTY CASH PURCHASES
Department Directors should inform the Finance Director of their
need for Petty Cash. Once approved by the Finance Director,
such a request is presented to City Council for approval. The
custodian, as designated by the Department Director is responsible
for the fund. The custodian is to be aware of the proper
procedures for maintaining the fund and will be held responsible
for any and all discrepancies, misuse, or violation of the fund. The
custodian and the Department Director shall approve each
voucher. If a custodian is to be replaced, the Finance Department
is to be notified. Access to the money must be restricted to the
custodian and the Department Director. Routine purchases of
items of less than Twenty Dollars ($20.00) may be made from
petty cash without contacting the Finance Department.
The following regulations will apply to all petty cash funds:
• No personal checks are to be cashed.
• Reimbursement is to be made only to personnel authorized by the
department head. It shall be the responsibility of the using
department to properly code or classify the item or expenditure.
Authorization for the custodian to replenish the fund shall be
processed using a Purchase Order.
• No reimbursement is to be made for items over Twenty Dollars
($20.00) without prior approval by the Department Director. The
Department Director may authorize up to Fifty Dollars ($50.00).
• Items incidental to travel (such as transportation, gasoline, and
registration fees) are not reimbursable through petty cash and
should be reported on the Travel Expense Report.
• All petty cash funds will be subject to audit at unannounced times
by a designated representative of the Finance Director.
Custodians of petty cash funds shall requisition for replenishment of
the fund when needed. A requisition will be submitted as the means
for requesting replenishment of petty cash funds. The Finance
Department will charge the appropriate expenditure accounts for
the various departments, thus reflecting expenditures made through
petty cash funds.
The Finance Director may establish such additional rules and
regulations regarding petty cash funds as deemed necessary.
I. PAYMENTS
The Finance Department makes every effort to have a 7 day turn-
around for all City obligations.
III. BIDDING PROCEDURES
The City strives to use only vendors who have adequate financial strength, high
ethical standards, and a record of adhering to specifications, maintaining
shipping promises, and giving a full measure of service. New vendors will be
given due consideration as multiple sources of supply are necessary to insure
availability of commodities and services. All purchases will be made in strict
conformance to ACA 14-58-301 et. seq., JMC 3.08 and other applicable
provisions of local, state and federal law.
A. COMPETITIVE BIDS
Purchases not exceeding Five Thousand Dollars ($5,000.00) may
be made without advertising or soliciting competitive bids. If it is
in the City's best interest, quotes do not have to be obtained from
more than one (1) vendor. It is, however, always encouraged that
comparative quotes be taken.
B. COMPETITIVE BIDS BY TELEPHONE
Purchases between $5,000.00 and $15,000.00 may be made after
taking bids from at least two (2) potential vendors able to provide
the item being purchased. A Price Quotation Sheet must be
completed and submitted to the Finance Department. The bid
quotes must be entered into BS&A in the Purchase Order Module
before a purchase order is issued.
C. WRITTEN INFORMAL BIDS
Written quotes (two or more) are required on all purchases
exceeding Fifteen Thousand Dollars ($15,000.00) and less than
Thirty-five Thousand Dollars ($35,000.00) Informal written bids do
not require advertising nor a public bid opening shall not be
required. The written bids must be submitted to the Finance
Department, and the bid quotes must be entered into BS&A in the
Purchase Order Module before a purchase order is issued.
D. FORMAL BIDS
Formal Bids are required on purchases in excess of Thirty-five
Thousand Dollars ($35,000.00) and must be formally advertised
One (1) time no less than Two (2) weeks prior to the bid opening.
Information contained in the advertisement should include:
• A detailed description of the commodity or service desired.
• Notification that only sealed bids shall be evaluated.
• Bonding requirements, if any.
• Time, date, and place of bid opening.
Bid specifications must be submitted to the Finance Department
along with a vendor list. The Finance Department will set a date
for the bid opening, assign a bid number, contact the newspapers
to meet advertising requirements and prepare vendor bid
packets. Final approval is required by the City Council per
Municipal Code 3.08.040.
E. BID PROCESSING
• Sealed bids will be received at any time during normal working
hours prior to the specific time and date as advertised. Each bid
will be time and date stamped as received. The bids will be publicly
opened and read at the time designated for the bid opening.
Bids will be rejected if received after the time and date set for the
opening. These bids will be time and date stamped and returned to
the vendor unopened in a separate envelope with a letter notifying
the vendor of the reasons for rejection.
• A Five Percent (5%) preference will be given to Arkansas based
vendors who, in accordance with ACA 19-11-259 so qualify.
F. BIDDING EXCEPTIONS, EXEMPTIONS, AND MODIFICATIONS
In the event 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 may, at their discretion, attempt to negotiate an award
with the apparent responsible low bidder. However, the
negotiated amount must be within Twenty-five Percent (25%) of
the amount appropriated by the City for the project.
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; the alternates shall: be deductive; and, the
alternates shall be set forth in the Bidder's submitted bid packet
plans and specifications in numerical order.
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.
After making the deductions, if the cost of the project is less than
Twenty -Five Percent (25%) above the amount appropriated for
the project, then and only in that event may City officials
negotiate an award with the low bidder so determined.
Whenever it is obvious from examination of the bid document that
it was the intent of the bidder to submit a responsible bid but the
bidder made an error (such as but not limited to transposition of
numbers), City officials have the authority to relieve the bidder
from responsibility under his bid and may reject the erroneous
bid.
For all bid projects, City officials shall have designated and derived
that; the City has the funds available to cover the costs associated
with the project as bid; and, the City has allocated those funds
available for payment of the cost associated with the project.
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 bid documents contain statements encouraging
participation of small, minority, and women's business enterprises.
The following are exempted from the bidding requirements:
• Purchasing through state contracts, the AHTD bids of record,
and/or from vendors who meet exactly the terms and
conditions of a current state contract as authorized under State
law and Jacksonville Municipal Code.
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• Repairs to equipment. Replacement of complete assemblies is not
included in the exemption.
• Purchases of equipment from any governmental jurisdiction in this
state or any adjoining state.
• Governmentally owned equipment purchased at public auction.
• Raw (unprocessed) fill material.
• Sole source items.
• Emergency purchases. (see below)
• Purchases of training materials. (Note: Training equipment is not
included in this exemption.)
• Purchases of unmarked vehicles and high-tech equipment to be
used by narcotics agents in covert activities.
G. EMERGENCY PURCHASES
Emergency purchase situations must be authorized by City Council
based on the decision that delay incurred by following purchasing
requirements would be detrimental to the best interests of the City.
The Department Director must, submit for approval an Ordinance
including the vendor's name and a specific request for payment and
an exact or maximum amount to be expended. M inutes of the City
Council meeting will record approval for an emergency purchase.
All efforts should be made by the individual offices and departments
to anticipate all Department needs, allowing sufficient time to follow
the proper and most cost-effective method of purchasing.
NOTE: LACK OF PLANNING DOES NOT CONSTITUTE AN
EMERGENCY
I1
H. SPLIT PURCHASE — PROHIBITED
It is expressly forbidden by law to parcel or split a purchase with the
intent of circumventing more competitive bidding requirements.
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IV. GENERAL FIXED ASSETS
An inventory of all City owned real and tangible property shall be established and
maintained current by the Finance Department.
A. ACQUISITION
When an equipment item is purchased that meets the definition of a
fixed asset if: the an estimated useful life of Two (2) years or more;
the item must be identifiable as an individual unit; AND have the
item has a unit cost of One Hundred Dollars ($100.00) or more. If
the item meets those qualifications, it is assigned a City property
identification number and entered into the BS&A Fixed Asset
module.
B. TRANSFERS
When an equipment item is to be transferred from one Department
to another, an email from the transferring Department Director
should be sent to the Finance Department. The inventory list will
be updated and the information recorded in the Fixed Asset
module.
C. DISPOSALS
When an equipment item is ready for disposal an Auction Template
must be completed and submitted to the Finance Department. The
Finance Department will submit the information to GovDeals or other
authorized providers for auction.
D. INVENTORY
All Departments will conduct an annual physical inventory in the
Fourth Quarter (4th) of each year. An inventory list will be sent to
each Director for inventory verification. Once annotated and
certified, the list is to be returned to the Finance Department where
changes must be entered into the BS&A Fixed Asset module.
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V. ETHICS
A. GENERAL ETHICAL STANDARDS
The citizens depend on us to protect public funds and property that
is entrusted to our care. We have an obligation to use proper
accounting and control measures to avoid financial loss, to
reinforce expectations of our officials and employees and to avoid
violations of the law.
B. EMPLOYEE CONFLICT OF INTEREST
Employees will not have any financial interest in any contract with
the City, unless properly disclosed and authorized.
C. GRATUITIES AND KICKBACKS
It is a breach of ethical standards for any person to
offer, give, or agree to give any employee or former employee, or
for any employee or former employee to solicit, demand, accept, or
agree to accept from another person, a gratuity or any offer of
employment in connection with any decision, approval, disapproval,
recommendation, preparation of any part of a contract requirement,
specification, or purchase request, influencing the content of any
specification or procurement standard, rendering of advice,
investigation, auditing, or in any other advisory capacity in any
proceeding or application, request for ruling, determination, claim,
or controversy, or other particular matter, pertaining to any
requirement, contract, subcontract, or any solicitation or proposal
associated with his/her position with the City.
• It is a breach of ethical standards for any payment, gratuity, or offer
of employment to be made by or on behalf of a contractor or
subcontractor under a contract to the City, prime contractor, or
higher tier subcontractor, or any person associated therewith, as an
inducement for the award of a subcontract or order.
D. CONFIDENTIAL INFORMATION
It is a breach of ethical standards for any employee or former
employee knowingly to use confidential information for actual or
anticipated personal gain, or for the actual or anticipated personal
gain of any other person.
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REVENUE AND FINANCE
Chapter 3.08
PURCHASING PROCEDURE
Sections:
3.08.001
Non -Discriminatory Policy
3.08.002
Gifts
3.08.003
Purchase Authority
3.08.004
Purchasing Manual and Ordinances
3.08.005
Mayor and Alderman allowed to do business with the City
3.08.010
Expenditures up to Five Thousand Dollars ($5,000.00)
3.08.020
Expenditures above Five Thousand Dollars ($5,000.00)
but below Ten Thousand Dollars ($10,000.00)
3.08.025
Expenditure above five thousand but below ten thousand
dollars - Sealed Quotations
3.08.030
Expenditures above Ten Thousand Dollars
($10,000.00) but below Twenty Thousand Dollars
($20,000.00)
3.08.040
Expenditures exceeding Twenty Thousand Dollars
($20,000.00)
3.08.041
Exceptions, Exemptions, and Modifications
3.08.042
Payment Approval
3.08.043
Preference
3.08.050
Procedure - Supplies, Materials or Equipment
3.08.060
State Purchasing Contract
3.08.070
Reverse Internet Option for purchase of goods
3.08.080
Property Disposal
3.08.081
Sale and lease of property
3.8.1 Non -Discriminatory Policy
All requests for prices and/or services and all purchases shall be made
by the City without regard to race, color, creed, national origin,
age or sex and in accordance with the Policy Manual of the City of
Jacksonville. (Ord. 1016, (part) , 1993)
3.8.2 Gifts
Acceptance of gifts at any time, other than advertising novelties, shall
be prohibited . No city personnel shall become obligated to any vendor and
must not conclude any city transaction from which they may personally
benefit directly or indirectly.
( Ord . 1016, (part) , 1993)
3.8.3 Purchase Authority
All pu r chases shall be accomplished in compliance with Arkansas Code Annot
ated 14-58-301 ET. seq. (Ord. 1016, (part) , 1993; Ord. 1.337, Sec. 1, 2008 )
15
REVENUE .AND FINANCE PURCHASING PROCEDUR
3.8.4 Purchasing Manual and Ordinances
All departments and officials of the City of Jacksonville shall abid
by and follow the City of Jacksonville Purchasing Manual. Al
regulations and procedures mandated by said Manual shall remain i
full force and effect unless otherwise specifically modified o
superseded.
(Ord. 115, 1961; Ord. 444, 1977; Ord. 542, 1979; Ord. 855, 1987; Ord. 989
1993; Ord. 1016, 1993; Ord.. 1337, Sec. 1, 2008 )
3.08.005 Mayor and Alderman allowed to do business with the City
The Mayor and Alderman may conduct business with the City as authorize
by Act 485 of 1981. (Ord. 647, Sec. 1 (part) , 1981)
3.08.010 Expenditures Up to Five Thousand Dollars ($5,000.00)
All expenditures or purchases on behalf of the City for the acquisitio.
or purchase of apparatus, equipment, labor, services, or supplie
shall be made by the Mayor or his duly authorized representative (s
without the necessity of obtaining bids or quotation for those
expenditures or purchases not exceeding Five Thousand Dollars ($5,00,
.00). (Ord. 1337, Sec. 1, 2008)
3.08.020 Expenditures above Five Thousand Dollars ($5,000.00) bu
below Fifteen Thousand Dollars k$15,000.00)
All expenditures or purchases on behalf of the City for th
acquisition or purchase of apparatus, equipment, labor, services, o
supplies shall be made by the Mayor or his duly authorize
representative (s) shall be made after obtaining verbal or writte
bids or quotations for those expenditures or purchases above Fiv
Thousand Dollars ($5,000.00) but not exceeding Fifteen Thousan
Dollars ($15,000.00). All expenditures or purchases made by or throug
the State Bidding Program shall be exempted from these provision
as more specifically outlined in JMC § 3.08.060 et. al.
(Ord. 1337, Sec. 1, 2 0 0 8 ; Ord.1677, Sec.1, 2021)
3.08.025 Expenditures above Five Thousand Dollars but below
Fifteen Thousand Dollars - Sealed quotations
All purchases for the City of supplies, apparatus, equipment purpose:
where the expenditure therefore is in excess of five thousand dollar;
($5,000.00) but less than fifteen thousand dollars ($15,000.00) shall bE
made by the Mayor, or his duly authorized representative, after the
securing of sealed quotations.
(Ord. 542, Sec. 1, 1979; Ord. 781, 1986; Ord. 855, 1987; Ord. 1016, 1993;
Ord. 1025, 1994; Ord. 1047 (part), 1995; Ord. 1677, 2021)
3.08.030 Expenditures above Fifteen Thousand Dollars
($15,000.00) but below Thirty -Five Thousand Dollars
($35,000.00)
All expenditures or purchases on behalf of the City for the
acquisition or purchase of apparatus, equipment, labor, services, oz
16
REVENUE AND FINANCE PURCHASING
supplies shall be made by the Mayor or his duly authorize
representative (s) shall be made after obtaining written bids o
quotations (in any applicable medium) for those expenditures o
purchases above Fifteen Thousand Dollars ($15,000.00) but no
exceeding Thirty -Five Thousand Dollars ($35,000.00) Al
expenditures or purchases made by or through the State Biddin
Program shall be exempted from these provisions as more specificall
outlined in JMC
§ 3.08.060 et. al. (Ord. 542, Sec. 1, 1979; Ord. 855, 1987; Ord
1016, 1993; Ord. 1025, 1994; Ord 1047, 1995; Ord. 1337, Sec. 1
2008; Ord. 1677, 2021)
3.8.40 Expenditures exceeding Thirty -Five Thousand Dollars ($35,000.021
Where the amount of expenditure or purchase for the acquisition or
purchase of apparatus, equipment, labor, services, or supplies excee s
the sum of Thirty -Five Thousand Dollars ($35,000.00), the Mayor or hi
duly authorized representative shall invite competitive bids thereonby
legal advertisement in any local newspaper with a minimum of one (1
publication. Bids received pursuant to the advertisement shall e
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 authorize
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 fromthese provisions as more
specifically outlined in JMC § 3.08.060 et. • al.
(Ord. 1337, Sec. 1, 2008; Ord. 1677, 2021)
3.8.41 Exceptions, Exemption, and Modifications
(1)In the event that. all bids submitted for a project exceed th
amount appropriated for the award of the contract, and if biddin
on alternates was not required by the plans and specifications
City officials shall have the authority to negotiate an awar
with the apparent responsible low bidder, but only if the low bi
is within Twenty-five percent (25%) of the amount appropriated b
the City for the project.
(2) If the plans and specifications for the project require bids o
alternates in addition to a base bid, there shall be no more tha
three (3) alternates and the alternates shall: (A) Be deductive
and, (B) Be set forth in the plans and specifications i
numerical order.
(3) If all bids submitted exceed the amount appropriated for th
award of the contract, City officials may determine the apparen
responsible low bidder by deducting the alternatives in numerica
order.
(4) After making the deductions, if the cost of the project is les
than Twenty-five percent (250) above the amount appropriated fo
the project, then and only in that event may City official
negotiate a ward with the low bidder so determined.
17
REVENUE AND FINANCE
PURCHASING PROCEDURE
(5) Whenever it is obvious from examination of the bid document the
it was the intent of the bidder to submit a responsible bid ar
the bid, if accepted, would create a serious financial loss t
the bidder because of error such as transposition of figureE
City Officials have the authority to relieve the bidder frc
responsibility under his bond and may reject this bid.
(6) For all bid projects, City officials shall have designated an
derived that; (a) the City Has the funds available to cover th
costs associated with the project as bid; and, (b) have allocate
those funds available for payment of the cost associated wit
this project.
(7)No contract providing for the making of major repairs, alterations
for the erection of buildings or other structures, or for makin
other permanent improvements with costs exceeding Seventy-fiv
Thousand Dollars ($75,000.00) shall be entered into by the Cit
unless the bidding documents contain statements which encourag
the participation of small, minority, and women's busines
enterprises.
No bidding will be required for contracts providing majo
alterations, repairs, for the erection of buildings or othe.
structures, or for making permanent improvements to City propert
when all estimated costs of work required does not exceed the sum o:
Thirty -Five Thousand Dollars ($35,000.00).
(Ord. 1161, 2001; Ord. 1337, Sec. 1, 2008; Ord. 1677, 2021)
3.08.042 Payment Approval
The Mayor or his duly authorized representative may approve fo_
payment out of any funds previously appropriated for that purpose o.
disapprove any bills, debts, or liabilities asserted as claims agains-
the City, when funds on hand are adequate to pay such bills, debts o:
liabilities. The payment or disapproval of any bills, debts of
liabilities not covered by a previous appropriation shall requir(
confirmation of the governing body.
(Ord. 542, 1979; Ord. 1337, Sec. 1, 2008)
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 X19
11-259 as amended, so qualify. (Ord. 1337, Sec. 1, 2008)
3.08.050 Procedure - Supplies, Materials or Equipment
The Mayor or his duly authorized representative may sell or exchang
any municipal supplies, materials, or equipment without competitiv
bidding if such supplies, materials or equipment have a value of les
than Four Thousand Dollars ($4,000.00). The Mayor or his designate
representative shall certify in writing that, in his opinion, the fai
market value of such item or lot (to be disposed of in one unit) i
less than Four Thousand Dollars ($4,000.00), and said item or lot ma
be sold by the Mayor or his designated representative withou
competitive bidding.
18
[a
EO
REVENUE AND FINANCE PURCHASING PRO
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)
(Ord. 542, 1979; Ord. 1337, Sec. 1, 2008)
3.08.060 Procedure - State Purchasing Contract
A. AUTHORIZATION: The City Council of the City of Jacksonville,
Arkansas, hereby request authority in the name of the City C f
Jacksonville to participate in the state contracts which the Department
of Finance and Administration, Office of State Purchasing, for t e
purchase of supplies, services equipment, and certain materials pursuar t
to he State Purchasing Laws and Amendment 54 to the Arkans s
Constitution. (Ord. 989, Sec. 1, 1993) 1
B. CONTRACTUAL TERMS: The Mayor of the City or his authorized age
is hereby authorized to agree in the name of the City of Jacksonvil
to be bound by all contract terms and conditions as the Department
Finance and Administration, Office of State Purchasing, prescribe
Such terms and conditions may include a reasonable fee to cover t
administrative cost, which the Department of Finance and Administrati
incurs as a result of the City of Jacksonville's participati
in a contract. Further, that the City of Jacksonville does here
agree to be bound by all such terms and conditions.
(Ord. 989, Sec. 2, 1993)
C. PAYMENT FOR VENDORS; The Mayor of the City or his authoriz
agent is hereby authorized to agree in the name of the City
Jacksonville to pay directly any vendor, under such state contract
which the City of Jacksonville may participate, for items receiv
pursuant to the contract, and that the City vendors form which th
receive said supplies, equipment, materials, and services.
(Jrd. 989, Sec. 3, 1993)
D. WAIVER OF COMPETITIVE BIDDING: Because of the economic saving
and minimal cost involved in purchasing through the State Purchasin
Contract Program, it is unfeasible and impractical to solicit bids fo
those supplies, materials, equipment, and services available throug
the State Purchasing Contract. As such, and by authority granted i
ACA 14-48-383, the City of Jacksonville authorized the Mayor, the Cit
Purchasing Agent, or their duly authorized agent, to purchase an
utilize those supplies, equipment, materials, and services availabl
under the State Purchasing Contract program which are deemed necessar
for the efficient and effective operation of the City of Jacksonvill
without requiring the necessity of competitive bidding on th
selection of those materials, equipment, supplies, and services. A
such, the competitive bidding process will have been done by th
State, and the City of Jacksonville shall avoid any unnecessar
duplication of effort and hereby waives competitive bidding on al
supplies, materials, equipment, and services obtained through th
Office of State Purchasing. (Ord. 989, Sec. 4, 1993)
19
t
f
AND FINANCE
PURCHASING PROCEDURE
3.08.070 Reverse Internet Auction Cption
Definitions
A. Reverse Internet auction means an Internet -based process ill
which bidders:
(1) Are given specifications for items and services being
sought for purchase by a municipality;
(2) Bid against themselves in order to lower the price of th
item or service to the lowest possible level; and
B. Reverse Internet auction vendor means an Internet -based entit
that hosts a reverse Internet auction.
Bidders shall be provided instructions and individually secure
passwords for access to the reverse Internet auction by the City o
the reverse Internet auction vendor. Any reverse Internet auctio
shall be held at a specified date and time. The bidding proces
shall be timed, and the time shall be part of the reverse Interne
auction specifications and instructions.
The reverse Internet auction and bidding process shall b
interactive, with each bidder able to make multiple bids during th
allotted time. Each bidder shall be continually signaled his or he
relative position in the bidding process in some manner.
Bidders shall remain anonymous and shall not have access to othe
bidders, bids, or bidding information so as to create any unfai
competitive advantage.
A reverse Internet auction as contemplated by this Code shall not b
used for purchases and contracts for construction projects an
materials.
A fee may be included as part of the bids received during th
reverse Internet auction and shall be paid by the winning bidder o
paid separately by the City.
The City Council or its designated representative shall have access
to real-time data including all bids, bidders, and bid amounts.
The City has the right to refuse any and all bids made during the
reverse Internet auction. The right to begin the reverse Internet
auction process anew is reserved if the City or its designated
representative determines it is in the best interest of the City to
do so.
All powers and duties assigned to the City in this Code are hereby
delegated and shall be executed by the Mayor or his authorized and
designated representative, except as otherwise determined by
separate motion or resolution approved by a majority vote of the
City Council.
20
REVENUE AND FINANCE PURCHASING
PROCEDURE CITY'S
INVESTMENT POLICY
3.8.80 Property disposal
Surplus personal property shall be disposed of in accordance with
this Chapter and State law after that property has been declared surpl
us by the appropriate Department Head and written approval of such decla
rat ion by the Mayor or the Aldermen Methods of disposal can include
but are not limited t o : Open bids; sea led bids; or, Public auction.
Disposal method shall be advertised in compliance with the terms of
this Chapter and State law .
(Ord. 1016, 1993) ( See Purchasing Manual, Sec. 11 p.5) (Ord . 1337, Sec
. 1, 2008)
3.8.81 Sale and Lease
The sale and lea se of rea 1 pr ope r t y (bu ildings and land ) sha 11 be in
accordance with the provisions stated in Arkansas Code Annotated 14-
54-302. (Ord. 1016; 1993) (See Purchasing Manual, Sec. II p.5)
21
Supplies and materials
Expenditures/expenses for materials, supplies and services which are
obtained by express or implied contract or materials, supplies and services
which are of such nature that they normally would be obtained by such a
contract. Also includes items of equipment not meeting the definition of a
fixed asset, such as small tools etc....
5090 Supplies and Office Includes all supplies necessary for the operation of an office, e.g. toner,
Expense copy paper, blank diskettes, stationery, books used for office reference,
small office items such as staples, staplers, letter trays, etc., and standard
forms which do not require special printing services. This classification
includes small equipment purchases less than One Hundred Dollars
($100.00). This classification does not include postage or pre -stamped
envelopes.
5091 Public Education Public educational materials required to be tracked separately for reporting
Materials Expense purposes and is of an amount significant enough to be separated. This
classification is restricted to Police, Fire and Sanitation.
5092 Ambulance supplies Supplies required to equip emergency response ambulances with required
materials to handle medical emergencies. These also include medicines
and narcotics which are required to be strictly accounted for.
5095 Office Equipment This classification includes small tools and equipment purchases of at least
and Small Tools One Hundred Dollars ($100.00) but less than Five Hundred Dollars ($500.00)
with a useful life of Two (2) years or more.
5120 Vehicle Gas and Oil Vehicle gas and oil
5135 Tires & Tire Repair Tires and tire repair
5190 Janitorial Supplies Janitorial supplies used for office and building maintenance. This includes
soap, solvents, disinfectants, deodorizers, paper towels, etc.
5200 Uniforms Charges for uniforms, badges, belts, boots, hats, shoes, slickers, holsters,
handcuffs, gloves (excluding Sanitation's gloves which are classified as
supplies), laundry and repairs to clothing, etc.
22
Contractual Services
Contractual Services are contracts for personnel services not classified as
an employee, contractual agreements to perform construction, provide
utility services, repair buildings or equipment, or agreements to perform.
5030 Contract Services Contract Services includes charges for services performed by individuals
who work under contract or agreement such as janitorial contract,
secretarial allowances, and uniform volunteers.
5050 Electricity Charges for power, light, electrical heating. This includes service and
installation fees.
5060 Gas (Heating) Charges for heating fuels such as natural gas, propane, butane, etc. This
does not include vehicle fuel.
5070 Telephone Charges for monthly service, long distance fees, repair and installation
charges, disconnect fees, and other related fees associated with telephone,
cell phone, pagers, etc.
5110 Printing & Charges for advertising, posters, publication of public notices, ordinances,
Advertising bid invitations, and other such items. All services performed by an outside
vendor for printing, reproduction and binding or pamphlets, or other reading
material. This does not include advertising for tourism and promotions.
5130 Vehicle Repair and Repair and maintenance of vehicles and propelled machinery. This does not
Maintenance include Tire repair or vehicle gas and oil.
5140 Equipment Charges for temporary rental of equipment or machinery, delivery fees and
Rental/Repair charges related to their rental. This also includes charges for services and
/Maintenance materials required in repair and maintenance of all machinery and
equipment. This includes copier maintenance.
5150 Operating Operating Expenditures incurred in the operations of the city, such as bank
Expenditures charges, EDI expense, etc.
23
5160 Radio Repair and Radio Repair and Maintenance includes materials and service charges
Maintenance associated with the repairs and maintenance on the base and mobile radio
units.
5170 Jail Expense Inter -local contract agreement with Pulaski County for long-term housing
of prisoners.
5171 Prisoner Processing Expenditures related to operating short term holding of prisoners awaiting
and Meals transport to county facility. Includes meals, cost of processing etc.
5180 Postage Costs associated with mailing items such as stamps, pre -stamped
envelopes, meter refills, registered letter fees, express mail and other
mailing fees.
5210 Training Meetings Costs incurred while attending training, meetings, and seminars, such as
and Seminars books, tuition, registration, lodging, meals, and travel. This does not include
alcoholic beverages.
5230 Physicals Costs related to required Departmental physicals.
5250 Caninne Expense Canine food and care expenditures for Animal Shelter animals and Police K -
9s.
5260 Veterinary Expense Veterinary expenditures for An i m a I S helter animals, including
euthanizations, and veterinary expenditures for Police K -9s.
5270 Engineering and Engineering and Administrative Services
24
Administrative
Services
5271
Purchasing Agent
Purchasing Agent Services
Services
5272
Public Works
Public Works Director Services
Director Services
5280
Professional Dues
Professional Dues and membership fees associated with
Professional organizations that is not classified in another line item
description.
5281
C.A.P.D.D. Dues
Annual membership dues to the Central Arkansas Planning and
Development District.
5282
Metroplan Dues
Annual membership dues to Metroplan
5283
Defense Fund
Contingency fund for legal defense fees. As a member of the Arkansas
Deductible
Municipal Legal Defense Fund, representation is fee
a set per case.
24
5284 Municipal League Membership dues to the Arkansas Municipal League. Dues are on a per
Dues capita basis and are used to represent the City in a wide range of
governmental issues.
5290 Building Repair and Costs of materials and services required in the maintenance and repair of
Maintenance real property such as land, buildings, swimming pools, heating and air
conditioning, etc. If the item is attached to the building, then it is considered
building repair and maintenance. If the item is not attached to the building ,
then it is considered equipment repair and maintenance. This classification
also includes construction costs of less than One Thousand Dollars
($1000.00).
5291 Lot Maintenance Lot maintenance costs for properties not failing to meet Code
Expense maintenance requirements in a timely manner. Reimbursements are
treated as a reimbursement of expenditures.
5310 Election Expense Costs incurred for locally initiated elections.
5340 Building and Building and Vehicle Insurance Premiums.
Vehicle Insurance
5380 Legal Fees Legal fees incurred by the City Attorney's Office while representing the City.
5480 Elderly Activities Annual contract with Jacksonville Elderly Activities Program to provide
Contract meals and services to Jacksonville's elderly population.
5485 Chamber of Annual contract with Jacksonville Chamber of Commerce to promote
Commerce Contract Jacksonville to the public. Also includes industrial recruitment.
5488
CATA Services
Annual contract with Central Arkansas Transit Authority to provide limited
Contract
bus service between Jacksonville and Little Rock.
5490
Landfill Fees
Fees incurred by Sanitation Fund for dumping household waste and other
items considered non -recyclable trash.
5510
Communication
Communication leases including educational video training for uniformed
Leases
services and elevator music.
5530
Street/Traffic Lights
Street and traffic light utility expense.
5535
Street Signs and
Street signs and traffic light repair expense.
Traffic Light Repair
25
5542 Structural Razing costs for condemned structures, including associated costs.
Condemnations
5625 Drainage Projects Drainage project and drainage repair and maintenance expense.
5628 Beaver Control Annual beaver control contract. Relocation of animals and removal of
dams for flood control purposes.
5629 Remonumentation Costs associated with remonumenting Jacksonville, including surveying
costs, monument and installation costs, aerial photos and plats.
5630 Asphalt Sealing, Street maintenance including annual streets overlay program.
Repairs and
Striping
5633 Sidewalks,Curbs Sidewalks, curbs and gutters expense. Includes sidewalk
and Gutters expansion program.
5636 Mosquito Control Expenses for chemicals and materials to control mosquitos. Includes costs
for aerial spraying.
5637 Asbestos Cost of removing and tracking asbestos material from condemned housing
Abatement and recycling center.
5710 Crime Stoppers Crime Stoppers Program Payments
5715
Narcotics Buy
Buy money for undercover narcotics operations.
Money
5810
Depreciation
Depreciation expense for Enterprise Funds.
Expense
5835
Miscellaneous utility
Miscellaneous utility expense
expense
5836
Utility Expense for
Utility Expense for Senior Activities Center
Senior Activities
Center
5842
Landscaping and
Costs of maintaining and landscaping City property including ball fields and
Lawn Expense
parks.
5845
Building
Building Maintenance Utilities Telephones
Maintenance
Utilities Telephones
26
5846 Tourism and Tourism and promotion expense, including advertising, bill boards,
Promotion hosting, etc.
Capital Outlay
Capital outlay includes the purchase of all real property such as land,
buildings, and other improvements, and the purchase of items of personal
property which meet the definition of a fixed asset (capital equipment).
5500 Equipment Equipment (capital equipment) are defined as items of more or less
permanent personal property necessary to the operation of an enterprise.
Generally, it must have an estimated useful life of two years or more -
AND must be capable of being permanently identified as an individual unit,
A&Q_have a unit cost of Five Hundred Dollars ($500.00) or more.
5540 Construction Construction (capital construction) is defined more closely as land,
buildings, and other permanent real property items or improvements. This
would include such items as drainage ditches, remodeling of structures, or
other improvements including grub work, architectural renderings, and other
costs associated to create an identifiable unit. In addition. the cost of
creation must be at least One Thousand Dollars ($1,000.00). Activity not
meeting this definition would more clearly be identified as building repair and
27
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JACKSONVILLE BS&A PURCHASE
ORDER
QUICK GUIDE
October 2012
28
BS&A PURCHASE ORDER INSTRUCTIONS
Approval Process
1. The Requisition is created by each Department.
2. Once the Requisition is saved, the Requisition is then waiting approval from the
Department Head.
3. Once the Department Head approves the Requisition, it then goes to Finance
where the Requisition receives the final approval and is then created into a
Purchase Order.
Logging Into BS&A
1. Find the program Equalizer .Net Applications on your computer and double
click the icon.
2. Once the program opens, find the Purchase Order icon and double click it.
3. Log into it using the same user name and password used to log into your
computer.
4. Click login.
Creating a Requisition
1. Click on the Purchase Order Entry in the Application Views on the left hand
side.
2. Click Add at the top of the screen. This will allow you to add a new requisition.
3. The Req # at the top of the screen will automatically populate after the requisition
is saved. However, while completing the requisition information, the number will
say Next Available.
4. All fields highlighted in yellow are required fields and must be completed before
selecting save.
5. Click Options at the top right side of the screen. Select the option to be able to
search for Vendor Names. When an invalid code is used, you can type the
name of the vendor to find the correct vendor code.
6. Select a Vendor. Type in the Vendor Code or Vendor Name or click the
magnifier glass to search.
7. Click the Vendor Info button to verify the vendor address is correct.
8. Select the PO Type and choose Regular or Blanket.
29
9. Select the Ship To department.
10. Type in the Description.
11.Add notes for Accounts Payable using the Public Notes button. This will allow
you to type information to the Finance Department.
12. Select the appropriate Department.
13. Use the current date as the Post Date.
14. Pmt Terms should default to NET 30.
15. Select FOB Terms as Destination.
16. Type Best Way in the Ship Via.
17. Double click the bar labeled <double-click or begin typing here to add a new
row>
18. Enter the Quantity.
19. Select Each for your unit.
20. Enter the Item Description.
21. Enter the Unit Price. If the total of the Requisition is $5,000.00 or more,
complete the Bid tab BEFORE saving it.
22. Enter the GL Number.
23. Follow instructions 17 through 22 for each item that needs to be listed on
the Purchase Order.
24. Once the Requisition has been completed, click the Save button on the bottom of
the screen.
25. Once the Requisition has been approved by the Department Head and Finance,
the req user will receive an email with the Purchase Order number.
Bid/Quote Requirements
The Purchase Order module requires the user to complete the bid tab for purchases
totaling $5,000.00 or more. A minimum of two (2) bids must be entered. This must be
completed BEFORE saving the Requisition.
1. Click the 2. Bids tab to enter bidslquotes.
2. Double click the blue bar stating <double-click or begin typing here to add a
new row.>
3. Type in the Bidder Code or use the magnifying glass to look it up. The bidder
code will populate the Bidder Name.
4. Status should be either Sent or Received.
5. Date Sent will automatically populate with the current date.
6. Tab through Response Date and Acceptance Status and complete the
Amount.
30
7. Repeat these steps for each bid or quote. Note. If using a sole source provider,
use Bidder Code will be (SOLE as the second bid.
8. Click the Accept Bid button at the top right of the screen.
9. Once the bid has been accepted, the vendor will populate in the 1. Order Info
tab.
10. Verify that all information is correct on the 1. Order Info tab. Click the Save
button at the bottom of the screen.
31