Loading...
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 SECTION TWO: Any Ordinance or Resolution or parts thereof in conflict herewith are -- hereby repealed to the extent of such conflict.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. 2 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. 10 • 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. 12 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. 13 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. 14 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 c Q LL J Q o L 75— ~ 0 > U U U O N O m O N c Q O N c 0-5 c m E, E� Q E� E X O 0 X O O O X O O X O O 0 U U U o Qo oQo oao oQo (u G LL L L 75— m > U U U U N O m O N c O N c 0-5 c m E, E� E� E X O 0 X O O O X O O X O O 0 U U U o Qo oQo oao oQo 75— m U U U U m E o 0 O 0 0 U U U 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