ORDINANCE 96-05

AN ORDINANCE TO AMEND ORDINANCE 95-06, THE CODE OF ORDINANCES OF THE TOWN OF SHALIMAR WITH THE PURPOSE TO UPDATE TO CURRENT STATUS AMOUNTS OF PURCHASING LIMITATIONS THAT WILL BETTER ALLOW THE TOWN TO FUNCTION TIMELY AND ECONOMICALLY.

WHEREAS, the Shalimar Town Commission considers the current Article V, Finance, to be cumbersome and costly in transacting daily business for the Town; and

WHEREAS, the Shalimar Town Commission, in an effort to streamline the financial transactions to save time and cost, think the best way to accomplish this is by increasing purchasing limits without additional Commission approval; and

WHEREAS, to accomplish this in an expeditious and reasonable manner, hereby agree that amending said Section of the Code to read as follows:

NOW THEREFORE, THE SHALIMAR TOWN COMMISSION HEREBY ADOPTS THE RECOMMENDED AMENDMENTS TO CHAPTER 2, ARTICLE V. FINANCE OF THE CODE OF ORDINANCES OF THE TOWN OF SHALIMAR.

Section 1: DIVISION 2. PURCHASES AND CONTRACTS

Section 2-172. Purchasing Limitations.

(a) A department head is hereby allowed to authorize purchases up to $99.99 (change to $200.00.)

(b) The Town Commissioner designated commissioner for oversight jurisdiction as provided in section 2-37, is hereby allowed to authorize purchases and sign purchases up to $499.99 (change to $1,000.00).

(c) All purchases of $500 (change to $1,000.00) and up to $1499.99 (change to $3,000.00) shall require approval by the Town Commission.

(d) All purchases of $1,500 (change to $3,000.00) and above shall be purchased through the competitive bidding process.

Section 2:

Section 2-173. Purchase Orders.

All purchases of $100.00 (change to $200.00) or over shall be made by purchase orders. Purchase orders shall be maintained by the town clerk for all expenditures of $100.00 (change to $200.00) or over. The town clerk shall maintain the purchase orders in a book.

Section 2-174. Approval of purchase orders.

(a) Purchase orders for $100.00 (change to $200.00) to $499.99 (change to $1000.00) shall be signed by the Town Commissioner who has been given jurisdiction of the subject area designated in section 2-37.

(b) If the person responsible for the purchases as designated in subsection (a) of this section is not reasonably available to approve a purchase order for purchases of $100.00 (change to $200.00) to $499.99 (change to $1,000.00), such purchase order may be approved by any one of the following persons who shall be selected in priority according to the order in which they appear below.

(1) The Mayor.

(2) The finance commissioner.

(3) Any other member of the Town Commission.

Section 3.

Sec. 2-175. Unauthorized purchase.

Except as provided in this division, it shall be unlawful for any town officer or other person to order any materials or supplies or make any contracts for materials or supplies for $100.00 (change to $200.00) or over other than by a purchase order signed by the town commissioner who has jurisdiction as designated in section 2-174. The town shall not be bound by any purchase, or purchase order or contract made contrary to the provisions of this division. Additionally, the town shall not be bound by the purchases if the buyer exceeds the scope of his purchasing authority.

Section 4.

Sec. 2-176. Buyer's duties. (Remains the same).

Section 5.

Sec. 2-177. Issuance of order upon determination of sufficient funds. (Remains the same).

Section 6.

Sec 2-178. Petty cash expenditures: reimbursement. (Remains the same).

Section 7.

Sec 2-179. Competitive bid procedure.

(a) When required. All supplies and equipment and contractual services, except as otherwise provided in this division, when the estimated cost thereof shall exceed $1,500.00 (change to $3,000.00), shall be purchased by a formal written contract and/or purchase order from the lowest and best responsible bidder, after due notice inviting proposals. However, the town commission shall have the authority to waive execution of a formal contract in cases where it deems it advisable to do so.

(b) Personal property. All sales of personal property, except trade-in personal property, which has become obsolete and unusable, when estimated value shall exceed $1,500.00 (change to $3,000.00), shall be accomplished by formal contract to the highest responsible bidder after due notice inviting proposals.

(c) Procedure. (Remains the same).

(1) (Remains the same).

(2) (Remains the same).

(3) (Remains the same).

(4) (Remains the same).

(d) Bid deposits. (Remains the same).

(e) Procedural requirements for submission and acceptance of bids. (Remains the same).

(1) (Remains the same).

(2) (Remains the same).

(3) (Remains the same).

(f) Rejection of bids and negotiation. (Remains the same).

(1) (Remains the same).

(2) (Remains the same).

(3) (Remains the same).

(g) Award of contract. All contracts of $1,500.00 (change to $3,000.00) or more shall be awarded by the town commission to the lowest and best bidder. In determining the lowest and best bidder, in addition to price, there shall be considered the following:

(1) (Remains the same)

(2) (Remains the same)

(3) (Remains the same)

(4) (Remains the same)

(5) (Remains the same)

(6) (Remains the same)

(7) (Remains the same)

(8) (Remains the same)

(9) (Remains the same)

(10) (Remains the same)

(11) (Remains the same)

(12) (Remains the same)

(13) (Remains the same)

(h) Award to other than low bidder. (Remains same)

(i) Tie bids. All tie bids of $1,500.00 (change to $3,000.00) or more shall be awarded by the town commission.

Section 8.

Sec. 2-180. Open market contracts.

(a) Authorized. All purchases of supplies and contractual services of a total estimated value of more than $99.99 (change to $200.00) and less than $1,500.00 (change to $3,000.00), and all sales of personal property which have become obsolete and unusable, of less than the estimated value of $1,500.00 (change to $3,000.00) may be made in the open market without newspaper advertisement and without observing the procedure prescribed by this division for formal purchasing or sales procedures. Whenever open market procedures are used, the buyer shall observe the general provisions of section 2-176 to secure the best item for the amount spent.

(b) Minimum number of bids.(Remains the same).

(c) Invitation of bids. (Remains the same).

(1) (Remains the same)

(2) (Remains the same)

(3) (Remains the same).

(d) Oral bids. All oral bids in excess of $100.00 (change to $200.00) shall, whenever possible, be confirmed in writing. The buyer shall keep a record of all open market bids submitted in competition thereon, and such records shall be open to public inspection.

Section 9.

Section 2-181 Emergency purchases.

(a) By mayor. In case of an apparent emergency which required immediate purchase of supplies or contractual service, the mayor shall be empowered to authorize the buyer to secure by open market procedure as set forth in Section 2-180, at the lowest obtainable price, any supplies or contractual services not exceeding $1,500.00 (change to $3,000.00). The mayor has the authority to act in the case of any emergency that might affect the health, safety, and welfare of the town. Such action shall be reported at the next regular meeting to the town commission.

(b) Emergency procedures. (Remains the same).

Section 10.

Sec 2-182. Standardization, cooperative purchasing and governmental contracts. (Remains the same).

(a) (Remains the same).

(b) Formal contract procedures shall not apply to established state contracts, or federal general services administration contracts. Purchases in any amount may be made against those contracts, provided they are in the best interest of the town and so long as the expenditure is either authorized by the town commission or is a budget expenditure, less than $1,500.00 (change to $3,000.00).

Section 11.

Sec 2-183. General provisions applicable to all contracts. (Remains the same).

Section 12.

Sec 2-184. Inspection of supplies and services before payment. (Remains the same).

Section 13.

Sec. 2-185. Checking invoices. (Remains the same).

Section 14.

Sec. 2-186 - 2-190. Reserved

DIVISION 3. FEES

Sec. 2-191. Administrative cost and attorney fees.

(a) Definitions. (Remains the same).

(b) Special or private interest action cost. (Remains the same).

(c) Action contingent upon payment of costs. (Remains the same).

Sec. 2-192 Right to assess engineering costs, legal fees and other costs. (Remains the same).

Section 15. This Ordinance shall pertain to and take precedence over any other Ordinance of the Code of Ordinances of the Town of Shalimar wherein said subjects and amounts are enumerated.

Section 16. This Ordinance shall become effective upon adoption by the Shalimar Town Commission.

Date of First Reading: January 9, 1996

Date of Second Reading and Adoption: February 13, 1996