Resolution - 2018 - 18-05 - Purchasing Policy - 03/13/2018RESOLUTION NO. 18-05
A RESOLUTION OF THE CITY OF EAGLE, IDAHO, ADOPTING AN UPDATED
PURCHASING POLICY; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City Council recognizes that efficient and cost-effective procurement of
goods, services and public works construction is an important aspect of local government
operations; and
WHEREAS, the City Council desires to endeavor to buy goods, services and public works
construction by way of a public accountable process that respects the shared goals of economy and
quality, as contemplated by Idaho Code §§67-2801 et seq.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF
THE CITY OF EAGLE, IDAHO as follows:
Section 1: That the City of Eagle hereby adopts an updated Purchasing Policy, which
policy is attached hereto as Exhibit A and incorporated herein by reference as if set forth in full.
Section 2: That this resolution shall be in full force and effect immediately upon its
adoption and approval.
ADOPTED by the Eagle City Council, Eagle, Idaho, this / 3 Di -day of March, 2018.
APPROVED:
Stan Ridgeway, Mayor
ATTEST:
V.. 842A -r-01111—)
Sharon K. Bergmann
City Clerk/Treasurer
RESOLUTION No. 18-05
PAGE 1
EXHIBIT "A"
CITY OF EAGLE
PURCHASING POLICY
The purpose of this policy is to establish goals and clarify the procedures for purchasing supplies, materials, and
services by the City of Eagle and its employees. This policy does not create any enforceable rights or causes of actions
in third parties. The provisions of this policy are subordinate to the purchasing requirements of any grant requirements
or federal, state or city laws governing purchasing. City staff is at risk of disciplinary action for unauthorized departure
from these guidelines.
Policy Goals
The City's purchasing and contracting goals are to:
1) Guarantee purchases of the City comply with State and Federal law.
2) Clarify purchasing procedures and ensure requirements are consistently followed by all City departments and
employees.
3) Save money by encouraging competition for good value.
4) Enhance public confidence and prevent fraud.
5) Promote the local business climate by providing equal opportunities to compete for businesses located within
the City.
6) Ensure purchasing decisions set high ethical standards, guard against favoritism and promote the fair and
equitable treatment of all persons who deal with the City's purchasing system.
Purchasing Ethics
A. All City of Eagle employees and elected officials responsible for purchasing goods or services shall:
1) Follow the rules and regulations of the City of Eagle and the laws of the State of Idaho.
2) Avoid activities that would compromise or give the perception of compromising the best interest of the City.
3) Reduce the potential for any charges of preferential treatment by actively promoting the concept of
competition.
4) Act as good custodians of public money by obtaining maximum benefit for funds spent.
5) Never solicit or accept money, loans, credits or prejudicial discounts, gifts or entertainment, favors, or
services from present or potential suppliers which might influence or appear to influence purchasing
decisions.
6) This rule does not apply to trivial benefits not to exceed a value of $50 (per year) incidental to personal,
professional or business contacts and involving no substantial risk of undermining official impartiality. These
contacts should be disclosed to the employee's immediate supervisor.
B. All City of Eagle elected officials and employees responsible for obtaining goods or services are reminded of the
following state laws regarding ethics in purchasing:
1) No officer or employee shall influence or attempt to influence the award of a contract to a particular vendor,
or to deprive or attempt to deprive any vendor of an acquisition contract. This includes attempting to
circumvent the competitive process by splitting purchases, creating false emergencies, etc. (Idaho Code §67-
9230(3))
RESOLUTION No. 18-05
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2) No officer or employee shall conspire with a vendor or its agent, and no vendor or its agent shall conspire
with an officer or employee, to influence or attempt to influence the award of a contract. (Idaho Code §67-
9230(4))
3) No public servant having any discretionary function to perform in connection with contracts, purchases,
payments, claim or other pecuniary transactions of the government shall solicit, accept or agree to accept any
pecuniary benefit from any person known to be interested in or likely to become interested in any such
contract, purchase, payment, claim or transaction. (Idaho Code §18-1356(2))
4) A public servant commits a misdemeanor if he solicits, accepts or agrees to accept compensation for advice
or other assistance in preparing or promoting a bill, contract, claim, or other transaction or proposal as to
which he knows that he has or is likely to have an official discretion to exercise. (Idaho Code §18-1357(1))
5) No public servant shall use public funds or property to obtain a pecuniary benefit for himself. (Idaho Code
§ 18-1359(1)(a))
6) City Officers must not have an interest in any contract made by them in their official capacity, or by anybody
or board of which they are a member. (Idaho Code §74-501)
NOTE: Pursuant to Idaho Code §74-503(1), a city officer will not be deemed to be interested in a contract,
within the meaning of Idaho Code §74-501, if: (i) he/she has only a remote interest in the contract; (ii) the
fact and extent of such interest is disclosed to the Mayor, City Council or department head and noted in the
official minutes or similar records prior to the formation of the contract; and (iii) thereafter the City Council
authorizes, approves, or ratifies the contract in good faith by a vote of its membership sufficient for the
purpose without counting the vote of the officer having the remote interest. A "remote interest" means:
(a) That of a nonsalaried officer of a non-profit corporation; or
(b) That of an employee or agent of a contracting party where the compensation of such
employee or agent consists entirely of fixed wages or salary; or
(c) That of a landlord or tenant of a contracting party; or
(d) That of a holder of less than one percent (1%) of the shares of a corporation or cooperative
which is a contracting party.
7) City Officers must not be purchasers at any sale nor vendors at any purchase made by them in their official
capacity. (Idaho Code §74-503)
Purchase Management
Vendor Relationships: Developing and maintaining good relationships with our suppliers is important. To the
highest extent possible, business ethics, professional courtesy, timeliness, and competence should be practiced in all
transactions. To the extent allowed by the Idaho Public Records Act and other applicable state and federal law, City
staff should adhere to and protect the supplier's business and legal rights to confidentiality for trade secrets, purchase
quotes and bids, and other proprietary information.
Tax Exempt Status: The City of Eagle is exempt from Federal, State and Local taxes. An exemption statement is
available from the City Clerk's Office and can be furnished to any of the City's suppliers upon request.
Budget Reauirements: Any purchase or expenditure must be included within the current year's budget and
appropriation ordinance, except for emergency expenses authorized by Idaho Code and approved by the Mayor and
Council.
Purchasing Deadlines: All payments are typically submitted for approval by the City Council at regularly scheduled
meetings on the second and fourth Tuesdays of every month. Department Heads or their designees must provide final
invoices and receipts to the City Clerk's Office the week prior to the Council meeting where payment is approved.
To promote timely payment of vendors, Department Heads or their designees should process bills for payment as
RESOLUTION No. 18-05
PAGE3
quickly as possible. Ideally, approved and signed invoices and receipts should be turned into the City Clerk's Office
on a daily basis as they are received, not held, and turned in all at once.
Review of Purchases: To assure adequate cross-check and internal control, Department Heads shall review each
invoice and receipt as they are processed to verify compliance with Department Budgets, state statutes, City policies
and the City's annual appropriation ordinance.
Whenever possible, local vendors are to be used for services and supplies. When quality, cost and service are
comparable, Department Heads should strive to rotate business between local vendors. After a purchase is made,
employees shall immediately provide the receipt and/or invoice to their supervisor.
Department Heads will approve, sign, and clearly mark all invoices, receipts, purchase orders, etc. with the appropriate
information to identify the vendor, the address, what is being purchased and the account number prior to submitting
the same to the City Clerk's Office for payment. Invoices, receipts, purchase orders, etc. that have not been approved
and signed by the Department Head will not be processed for payment and will be returned to the Department Head.
Department Heads should be familiar with purchases of goods and services by their staff before said purchases are
made. Department Heads should closely review invoices prior to signing and approving the expenditure. If a
Department Head questions an employee's expenditure, steps should be taken to immediately resolve the problem to
the supervisor's satisfaction because primary responsibility for the correctness of the expenditure rests with the
Department Head who sisns the invoice. Department Heads are not to "rubber stamp" invoices without knowledge
and authorization of the purchase.
Petty Cash: The Clerk's office manages a Petty Cash fund and the staff in the Clerk's Office will distribute funds
upon request if funds are available. This fund is for small emergency purchases and postage only. Detailed receipts
for use of petty cash are to be approved and signed by the appropriate Department Head. Individuals are not to "HELP
THEMSELVES" to Petty Cash funds. Violation of this rule may lead to disciplinary action up to and including
termination and/or prosecution.
Credit Accounts
To improve efficiency and offer convenience within a controlled environment, purchasing via an authorized City
Credit Account is allowed. These accounts are tax exempt and are to be used for City purchases ONLY.
Contractors are not allowed to use a City credit account for materials or other purposes.
City employees are not allowed to charge items for their personal use with the intent of reimbursing the City for the
purchase or to open lines of credit or apply for and receive charge cards as individuals. Such accounts will be canceled
and any unauthorized use of City credit accounts will be considered cause for disciplinary action up to and including
termination and/or prosecution.
Only regular City full time employees and part time employees that have been designated by a Department Head are
permitted to use credit accounts, and then only with the authorization of the Department Head. The Library Director
may designate part time Library staff to use Library Credit Cards for travel purposes.
There are three categories of credit accounts:
1) Credit Cards: The City maintains bank credit cards, which can be checked out from the City Clerk's Office.
When using the credit card, receipts showing the detailed nature of the purchase should be immediately
turned over to the Department Head for approval and signature, and the Department Head will then provide
said receipt to the City Clerk's Office for reconciling of the account statement. A department's charging
privileges will be suspended if all itemized receipts are not approved and signed by the Department Head
when turned in to the City Clerk's Office.
2) Fuel Cards: The City maintains a limited number of fuel credit cards for use with the City's authorized
vendor. Fuel cards should only be used by regular City employees during working hours in equipment owned
by the City. Employees must obtain a receipt for all fuel purchased. Receipts shall be signed by the employee
RESOLUTION No. 18-05
PAGE 4
and turned in to their Department Head for approval and signature. Using a City fuel card for a personal
vehicle is cause for disciplinary action, possible dismissal, and/or prosecution.
3) Vendor Credit Accounts: In store charge accounts with vendors are to be set up by the Clerk's Office at
the request of Department Heads and only with prior approval from the Mayor. Department Heads will use
the following criteria:
a. Inquire whether an account already exists for the City of Eagle, Idaho. If not: Inform the vendor of
the City's tax exempt status. If a form is required by the vendor, contact the City Clerk's Office and
one will be provided by mail or fax.
b. Inform vendor that invoices are paid after Council approval on the 2nd and 4d' Tuesdays of each
month.
c. Absolutely no account should be opened in a department name, with the exception of the Public
Library, whose purchasing falls under a specific section of the Idaho State Code.
d. All vendors should be directed to use ONLY the City Hall address for billing or the Public Library
address if applicable.
e. Other than the Library, whose billings must be approved by an independent board prior to approval
by the Council, all Departments will use "City of Eagle" for an account name, rather than an
individual Department name:
City of Eagle
City Clerks' Office
P.O. Box 1510
Eagle, ID 83616
e. The shipping address should be the City's address.
Purchasing Guidelines
The City of Eagle requires competitive bidding on all purchases even though such bidding process may not be required
by statute. Informal bids and/or quotes are required on all purchases to ensure the City is getting the best possible
value.
Mayoral approval is required prior to expenditures for all capital projects, equipment, or unusual maintenance and
repairs.
Responsibilities of Department Heads:
It is the Department Head's responsibility to monitor their department's revenues and expenditures on the monthly
Financial Reports sent out by the Clerk's Office. All purchases must be within the Department's appropriated budget.
Each Department Head or designee within the City will have the authority to purchase in accordance with the
following guidelines:
Purchases up to $500: Purchases up to $500 can be made at the discretion of the Department Head if: (1) the
expenditure is within their appropriated budget; and (2) all efforts have been made to ensure that appropriate bids or
quotes are gathered.
Purchases between $500 and $5.000: All equipment purchases between $500 and $5,000 must be accompanied by
a signed Fixed Asset Tracking Form showing all identifying information and approval by the Department Head. Said
Fixed Asset Tracking Form shall be submitted to the City Clerk's Office for asset tracking. Employees are not to
purchase equipment over $500 without the signed approval of the Department Head prior to purchase.
RESOLUTION No. 18-05
PAGE5
Purchases between $500 and $49.999: To provide for the best value, quotes must be obtained from more than one
vendor for the purpose of comparison. These purchases must be accompanied by a Fixed Asset Tracking Form
available from the City Clerk's Office. Mayoral approval is required prior to expenditures for all capital projects,
equipment, or unusual maintenance and repairs. Said Fixed Asset Tracking Form shall be submitted to the City Clerk's
Office for asset tracking.
Formal and Informal Bids for Purchases over S50.000: All purchases in this category require approval of the
Mayor and City Council and also must comply with Idaho Code §§67-2801, et seq. There are various provisions and
exceptions regarding bids for services not otherwise excluded, equipment and public works construction projects in
this category. It is the Department Head's responsibility to review the appropriate Idaho Code sections prior to
requesting a purchase exceeding this threshold. As a starting point, Department Heads should refer to the following
guidelines attached to this Purchasing Policy: (i) Procuring Services or Personal Property; (ii) Public Works
Construction Procurement; and (iii) Emergency and Sole Source Expenditures. Details regarding the purchase shall
be provided to the City Clerk's Office in the form of a Fixed Asset Tracking Form for asset tracking.
Department Heads shall:
• Make no attempt to split projects or equipment purchases in order to avoid the formal or
informal bid requirements. This is a violation of Idaho law subject to a fine up to $1,000.
• Provide accurate and complete information on items requested and prepare requisitions and
invoices in a timely manner.
• Manage expenditures and monitor revenues in order to prevent a negative balance in the
overall department budget.
• Guarantee that all expenditures comply with Idaho Code §67-2801 et seq.
• Provide a report to the Mayor listing planned improvements or projects which fall under
the category of repair and maintenance that are expected to have a completion cost of more
than $1,000.
• Advise the Mayor of budgeted projects prior to performing major upgrades to existing
buildings and/or property.
• Advise the Mayor in writing of any unbudgeted projects, including the cost and funding
source, prior to working on such projects.
• Obtain approval by the Mayor of projects and equipment purchases of over $2,500, keeping
in mind that sufficient lead time is needed to obtain quotations or bids, determine best
vendor, obtain Council approval and issue orders or contracts with reasonable lead time for
delivery and payment and to eliminate avoidable emergencies.
• Furnish the City Clerk's Office with complete inventory information regarding purchases
of equipment, furniture and fixtures with a value of over $500 for fixed asset tracking.
• Recommend to the Council for approval any gift of equipment with a value of more than
$500 and furnish the City Clerk's Office with details for inventory purposes.
• Inspect or supervise the inspection of delivered supplies, services, equipment and
construction, determining the acceptableness of their quality, quantity and conformance
with specifications.
Gifts and Disposal of Land and Equipment: The Mayor will make a recommendation to the Council for approval
of a gift of land and will furnish the City Clerk's Office with details for asset management purposes. The Mayor will
make a recommendation to the Council for approval to dispose of land or equipment with a value of more than $500
and furnish the City Clerk's Office with details regarding that disposal.
RESOLUTION No. 18-05
PAGE 6
Professional Services
Revak/Maintenance & Professional Consultins Services
Competitive bidding is not required for professional services provided to the City. Examples of services would be
repair and maintenance services or various types of professional consulting. Even though bidding is not required,
purchases of services must be in the Department's budget, and included within the annual appropriation ordinance.
1) A contract may be established as the result of a bid or a Request for Proposals (RFP). (See Request for
Proposals section of this document.) In agreements where a vendor is performing a specific service defined
by the City that will exceed $10,000, a written contract is required.
2) The City Attorney must review all contracts for legal adequacy.
3) The Mayor must review all contracts prior to placement on the Council agenda.
4) All contracts must be placed on the City Council agenda for review and approval.
5) All contracts must be signed by the Mayor with the City Clerk attesting to the Mayor's signature.
6) The original signed contract will be retained by the City Clerk's Office and scanned into Laserfiche, the
City's Records Repository. Copies of all signed contracts will be available upon request from the City
Clerk's Office. The City Clerk's office will forward a signed copy to accounts payable for payment
verification.
7) The City Attorney must review any decision to terminate a contract due to failure to perform. After
notification of the Mayor and City Council, the City Attorney will perform the steps necessary to legally
terminate the contract.
8) On projects for which the professional service contract is expected to exceed $25,000 for design professionals
including architects, engineers, landscape architects, land surveyors, and construction managers, the
requirements of Idaho Code §67-2320 must be followed. These requirements are set forth in the attached
guideline, Professional Service Contracts: Design Professionals, Construction Managers, and Professional
Land Surveyors.
Publication of Personal Service Contracts over $10.000: All taxing entities within the State of Idaho shall publish
within fifteen (15) days of entering into any Personal Service Contract over $10,000, the parties, the amount, and a
one (1) sentence purpose statement of all such personal service contracts with an annual payment over ten thousand
dollars ($10,000). (Idaho Code §59-514) The City Clerk's office can assist you with this publication requirement.
Reauest for Pronosals
In accordance with Idaho Code §67-2806A, the City may on occasion use a Request for Proposals (RFP) as the
preferred method in the acquisition of services or complex purchases. An RFP describes a problem or need in general
terms and seeks a written response including pricing information, which describes the solution or means of providing
the property requested by the RFP. Price might be one evaluation criteria for proposals, but will not necessarily be
the predominant basis for contract award.
The RFP is written so that potential respondents understand the problem they are being asked to address. Any limits
or conditions that apply must be included. The RFP must state in general terms all of the evaluation factors and their
relative importance, including price.
The evaluation must be based on the evaluation factors as set forth in the RFP. Numerical rating systems are frequently
used and strongly recommended but are not required. Factors not specified in the RFP shall not be considered in
evaluating offers or determining award of contract.
RESOLUTION No. 18-05
PAGE 7
If only one proposal is received in the response to a RFP, the City, as it deems appropriate, may make an award, reject
the proposal, or if time permits, re -solicit for the purpose of obtaining additional proposals.
Exclusions for City purchasing
Specific exclusions from purchasing requirements established in Idaho Code are described in Idaho Code §67-2803:
• The acquisition of personal property when the procurement duplicates the price and
substance of a contract for like goods or services that has been competitively bid by the
State of Idaho, one (1) of its political subdivisions, or an agency of the Federal Government.
Departments upon approval by the Mayor may "piggy -back" on other Federal, City or County if the pricing
is consistent with the original bid and the bid process followed complies with state statutes. All bid
documentation must accompany the request and payment voucher.
• A contract for goods or services that has been competitively bid by the State of Idaho. The
Division of Purchasing contract information is located at:
httD://www2.state.id.us/adm/nurchasine1agvinfo.htm. If local businesses cannot meet
purchasing needs, City employees upon approval by the Mayor, are strongly urged to use
State of Idaho contracts. State contracts are developed to include price, delivery, reporting
capability and other beneficial services. They meet the important competitive bidding
criteria and save the time and effort the employee spends shopping around.
• Contracts or purchases wherein expenditures are less that fifty thousand ($50,000),
provided such contracts or purchases shall be in the best interest of the City and approved
by the City Council.
• Procurement of personal or professional services to be performed by an independent
contractor for the City.
• Use of Correctional Industries: The City can purchase Idaho Correctional Industries
furniture and other goods or services without competitive bidding. The City may also
utilize Idaho Department of Correction labor crews without competitive bidding.
Joint Purchasing Agreements
The City may enter into joint purchasing agreements with the State of Idaho or other political
subdivisions. The City may also participate in joint purchasing agreements through a joint
purchase program established by any not-for-profit association of political subdivisions. Personal
property procured pursuant to such joint purchase agreements shall be acquired in accordance with
the provisions of Idaho Code §67-2801 et seq., provided such authority does not preclude or limit
political subdivision from entering into purchase agreements as otherwise provided by statute.
The City may also participate in a program established by any not-for-profit association of which
they become a member to assist such political subdivisions in bidding and negotiating joint
purchase contracts and discount purchase agreements. Participation in any such program does not
obligate the City to purchase goods or services through the program or through an agreement
negotiated by the program administrator or its board. The City shall only be obligated to pay for
goods or services where the City has approved the purchase. Any not-for-profit association
operating such a procurement program shall cause an independent, certified audit of the program
to be performed annually. The audit shall be made available to the City Council upon request and
a copy shall be made available for public inspection.
RESOLUTION No. 18-05
PAGE 8
Donations
The Department Head will obtain approval from the Mayor and/or Council prior to acceptance of all donations of land
and any donation of equipment or services including those that may require expenditures of City funds for installation,
maintenance, etc.
The Department Head will complete a Fixed Asset Tracking Form for all donations, notify the Mayor in the month in
which the donation is provided, and provide the form to the City Clerk for possible addition to the City's insurance
list and asset tracking.
Surplus Property
When the economic or useful life of property owned by the City is less than the cost of maintenance, transportation,
storage or other requirements, that property may be deemed "surplus property."
Surplus property will be disposed of in the manner that maximizes the value received by the City of Eagle in
accordance with following guidelines:
1) All employees of the City, including their spouses, dependents, or any person acting on the
employee's behalf, are prohibited from acquiring surplus property from the City unless the property
is acquired through a competitive bidding process, such as an auction or sealed bid.
2) When property is of nominal value having a value of zero or less than what it would cost to dispose
of or repair the property, the items may be donated to a charitable organization that qualifies under
Section 501-C and 501-C(19) of the Internal Revenue Service or to any state or local government,
or the item may be disposed of at a local refuse site or be removed by an outside party willing to
pay for its removal.
3) Property of less than $1,000 in value may be sold or transferred to another state or local government
without public advertisement or competitive bid; or sold at public auction conducted by a licensed
auctioneer; or sold to the highest bidder in response to notice of public sale advertised for at least
one week in a newspaper of general publication.
4) Property of greater than $1,000 in value can be sold at public auction conducted by a licensed
auctioneer; or sold to the highest bidder in response to notice of public sale advertised for at least
one week in a newspaper of general publication; or, with the approval of the Mayor and City
Council, may be donated to 501-C(3) and 501-C(19) charitable organizations or transferred to a
state or local government.
Risk Manasement and Insurance Requirements
The City Clerk's Office serves as the City's Risk Manager. Department Heads shall ensure Certificates of
Insurance for Contracts they oversee are provided to the City Clerk's Office to be scanned into Laserfiche, the
City's Records Repository and that insurance requirements are met for their projects. This includes Public Works
licensing for all Public Works Contractors.
The City Clerk's Office and or designee will maintain the necessary documentation in Laserfiche, the City's
Records Repository, and will have said records available for audit upon request.
Workers' Comnensation: Providers of services to the City are required to file a Certificate of Workers
Compensation Insurance. Each department is responsible for ensuring a copy of the Certificate is filed with the
contract if appropriate.
RESOLUTION No. 18-05
PAGE 9
Liability Insurance and Bondine: Contractors with the City are required to have liability insurance coverage and
may be required to be bonded.
Leases
The City may enter into lease agreements. Regardless of the financing method, the City must use the applicable
competitive bidding process based on the cost of the item being leased.
1) The City Attorney must review all lease agreements for legal adequacy.
2) All lease agreements must be placed on the City Council agenda for their review and approval.
3) The Mayor must sign all lease agreements and the City Clerk shall attest to the Mayor's signature.
4) All lease agreements must contain a non -appropriations clause indicating the City Council cannot obligate
funds beyond the current fiscal year and also include an opt out clause which allows the City to terminate the
lease agreement.
5) No leased equipment should be in the City's possession until the lease agreement has been approved by the
City Council and signed by the Mayor and attested by the City Clerk.
6) A signed copy of every lease agreement shall be retained by the City Clerk's Office and scanned into
Laserfiche the City's Records Repository. Copies of all signed lease agreements will be available upon
request to the City Clerk' Office. The City Clerk's Office will forward a signed copy to accounts payable
for payment verification.
7) Equipment purchased through a lease agreement is added to the IT Department's inventory during the budget
year in which it is received, regardless of when the first lease payment is made and the IT Department is to
be advised of such purchases.
8) If the lease payment meets or exceeds the guidelines for purchases, the same rules and laws applicable to
purchases are also applicable to lease payments.
Eauiament Rental Procurement Policy
It is the policy of the City to provide standards for equipment rental and to establish a consistent method of procuring
rental equipment on an interim basis due to peak/seasonal needs or special circumstances and it is also the City's
policy to prohibit the borrowing of equipment for City use.
Rental Equipment: Department Heads must approve the rental of equipment prior to such rental.
The cost of the equipment rental must be in the Department's budget.
The following steps are to be followed when it is determined that additional equipment is need to be rented:
• The type of equipment needed for a specific project must be requested in writing.
Include the name of the project, the type of equipment, how long the equipment will be
needed, the names of staff who will be operating the equipment and their experience in
the operation of said equipment and the total cost of the equipment rental.
• The Department Head will approve the rental of said equipment.
Upon completion of the use of the rental equipment, all parts must be accounted for and the equipment is to be cleaned
in preparation for return. The Department Head or designee will be responsible for the return or pick-up of the rental
equipment. Upon pick up or delivery of the equipment the Department Head and/or designee must sign all documents
and copies are to be retained for City records.
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PAGE 10
Borrowing Eauinment: The City's policy STRICKLY PROHIBITS any City employee from borrowing equipment
from individuals or companies for City use. Violation of this policy is cause for disciplinary action up to and including
termination.
END OF PURCHSING POLICY
Emergency and Sole Source Expenditures
Idaho Code §67-2808
Emergency Expenditures
The City may declare that an emergency exists and that the public interest and necessity demand the immediate
expenditure of public money if:
• There is a great public calamity, such as an extraordinary fire, flood, storm, epidemic or
other disaster.
• It is necessary to do emergency work to prepare for the national or local defense.
• It is necessary to do emergency work to safeguard life, health or property.
Upon making the declaration of emergency, any sum required in the emergency may be expended without compliance
with formal bidding procedures. The City Council must pass a Resolution declaring a local disaster emergency. This
Resolution would authorize the expenditure of public funds.
On very rare occasions emergency purchases may be made by a Department Head with the Mayor's approval and the
check for payment will be approved at the next regularly scheduled Council meeting. This purchase must be of
immediate necessity, the most cost effective option and in the City's best interest. If these conditions exist, the
purchase is allowed only if the funds are available in the department budget, legal requirements are met and prior to
the purchase the Mayor has approved said purchase in writing, verbally or by e-mail.
Sole Source Expenditures
The City may declare that there is only one (1) vendor if there is only one (1) vendor for the public works construction,
services or personal property to be acquired. Only one (1) vendor shall refer to situations where there is only one (1)
source reasonably available and shall include, but not be limited to, the following situations:
• Where public works construction, services or personal property is required to respond to a
life-threatening situation or a situation which is immediately detrimental to the public
welfare or property.
• Where the compatibility of equipment, components, accessories, computer software,
replacement parts or service is the paramount consideration.
• Where a sole supplier's item is needed for trial use or testing.
• The purchase of mass-produced movies, videos, books or other copyrighted materials.
• The purchase of public works construction, services or personal property for which it is
determined there is no functional equivalent.
• The purchase of public utility services.
• The purchase of products, merchandises or trademarked goods for resale at the City.
• Where competitive solicitation is impractical, disadvantageous or unreasonable under the
circumstances.
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PAGE 11
Upon making the declaration that there is only one (1) vendor for public works construction, services or personal
property notice of a sole source procurement shall be published in the official newspaper of the political subdivision
at least fourteen (14) calendar days prior to the award of the contract.
If the public works construction, services or personal property is required for a life-threatening situation or a situation
that is immediately detrimental to the public welfare or property a notice is not required to be published.
END OF EMERGENCY AND SOLE SOURCE PROCUREMENT
Procuring Services or Personal Property
Idaho Code 467-2806
When procuring services or personal property, City staff shall use the following procedures, except
in those cases where the City has determined that the use of a Request for Proposals method is
preferable due to the nature of the services or personal property sought to be procured.
A. Purchases Between $50.000 and $100.000. When the City contemplates an expenditure to
purchase or lease personal property or to procure services valued at or in excess of fifty
thousand dollars ($50,000) but not to exceed one hundred thousand dollars ($100,000), the
following procurement procedures apply:
1. The solicitation for bids shall be supplied to no fewer than three (3) vendors by written
means, either by electronic or physical delivery.
2. The solicitation shall describe the personal property or services to be purchased or leased
in sufficient detail to allow a vendor to understand what the City seeks to procure.
3. The solicitation shall describe the method or means to submit a bid, the date and time by
which a bid proposal must be received City Clerk, and provide a reasonable time to
respond. Such time shall not be less than three (3) business days unless it is an emergency.
4. Written objections to specifications or bid procedures must be received by the City Clerk
at least one (1) business day before the date and time upon which bids are to be received.
5. The bids shall be compiled and submitted to the City Council which shall approve the
responsive bid proposing the lowest procurement price or reject all bids and publish notice
for bids, as before.
6. If the City finds that it is impractical or impossible to obtain three (3) bids for the proposed
procurement, the City may acquire the property in any manner the City deems best from a
qualified vendor quoting the lowest price.
7. When fewer than three (3) bids are considered, a description of the efforts undertaken to
procure at least three (3) bids shall be documented and such documentation shall be
maintained for at least six (6) months after such procurement is made.
8. If two (2) or more bids are the same and the lower responsive bids, the City may accept the
bid it chooses.
B. Purchases Over $100,000. When the City contemplates an expenditure to purchase or lease
personal property or to procure services valued in excess of one hundred thousand dollars
($100,000), the following procurement procedures apply:
RESOLUTION No. 18-05
PAGE 12
1. The purchase or lease shall be made pursuant to an open competitive sealed bid process
with the procurement to be made from the qualified bidder submitting the lowest bid price
complying with bidding procedures and meeting the specifications for the goods and/or
services sought to be procured.
2. The request for bids shall set a date, time and place for the opening of bids. Two (2) notices
soliciting bids shall be published in the official newspaper of the City. The first (1) notice
shall be published at least two (2) weeks before the date for the opening bids, with the
second (2) notice to be published in the succeeding weeks at least seven (7) days before
the date that bids are scheduled to be opened.
3. The notice shall succinctly describe the personal property and/or service to be procured.
4. Copies of specifications, bid forms, bidder's instructions, contract documents, and general
and special instructions shall be made available upon request by any interested bidder.
5. Written objections to specifications or bid procedures must be received by the City Clerk
at least three (3) business days before the date and time upon which bids are scheduled to
be opened.
6. If the City deems it is in the City's best interest, it may require the bidder to provide bid
security in an amount equal to at least five percent (5%) of the amount bid.
7. If required, a bid shall not be considered unless one (1) of the forms of bidder's security is
enclosed with it, and unless the bid is submitted in a form which substantially complies
with the form provided by the City.
8. The City may require that the bid security be in one of the following forms:
a. Cash
b. A cashier's check made payable to the City.
c. A certified check made payable to the City.
d. A bidder's bond executed by a qualified surety company, made payable to the City.
9. Any bid received by the City may not be withdrawn after the time set in the notice for
opening of bids.
10. When sealed bids have been received, they shall be opened in public at a designated place
and time, thereafter complied and submitted to the City Council for award or, if a designee
is authorized, for approval of the award.
11. If the successful bidder fails to execute the contract, the amount of his bidder's security
may be forfeited to the City at the sole discretion of the City and the proceeds may be
deposited in a designated fund out of which reasonable expenses for procuring substitute
performance are paid.
12. The City may, on the refusal or failure of the successful bidder to execute the contract:
a. Award the contract to the next lowest bidder;
b. The City may reject all bids presented and re -bid;
c. The City may pass a resolution declaring that the subject goods and services can be
procured more economically on the open market.
d. If two (2) or more bids are the same and the lowest responsive bids, the City may
accept the one it chooses.
RESOLUTION No. 18-05
PAGE 13
13. The City in its discretion may preauthorize the purchase of used equipment at a public
auction and such purchase need not comply with statutory competitive bidding
requirements (See Idaho Code §67-2803(18)).
14. If the City chooses to award a bid contract to a bidder other than the apparent low bidder,
the City shall declare its reason/reasons on the record and shall communicate such
reason/reasons in writing to all who have submitted a bid.
a. If any bidder objects to such award, the bidder shall respond in writing to the notice
within seven (7) calendar days of the date of the notice, setting forth such response
the express reason/reasons that the award of the City is in error.
15. The City shall stay performance of any procurement until after addressing the contentions
raised by the objecting bidder.
16. The City shall review its decision and determine whether to affirm its prior award, modify
the award, or choose to re -bid, setting forth its reason/reasons therefor.
17. After completion of the review process, the City may proceed as it deems to be in the public
interest.
END OF PROCURING SERVICES OR PERSONAL PROPERTY
Professional Service Contracts:
Design Professionals. Construction Managers. and Professional Land Surveyors
Idaho Code 567-2320
The City may enter into these types of contracts without formal bidding. However, the City shall make selections for
professional engineering, architectural, landscape architecture, construction management and professional land
surveying services on the basis of qualifications and demonstrated competence and shall negotiate contracts or
agreements for such services on the basis of demonstrated competence and qualifications for the type of services
required at fair and reasonable prices.
Professional service contracts require review by the City Attorney for legal adequacy, approval by the City Council
and the Mayor's signature. If over $10,000 annually these contracts must be published in accordance with Idaho Code
§59-514.
Contracts or asreements less than $25.000:
The City may establish its own guidelines for selection based on demonstrated competence and qualifications to
perform the type of services required, followed by negotiation of the fee at a price determined by the City to be fair
and reasonable after considering the estimated value, the scope, the complexity and the nature of the services.
Contracts or asreement exceedins $25.000:
When the professional service contract or agreement is anticipated to exceed the total sum of $25,000, a public notice
shall be published in the same manner as required for bidding of public works construction projects (two notices, the
first of which is published at least two weeks before the date for opening bids, and the second published in the
succeeding week at least seven days before the date bids are scheduled to be opened).
The minimum guidelines to be followed in securing contracts or agreements for which the professional service fee is
anticipated to exceed the total sum of twenty-five thousand dollars ($25,000), excluding professional services
contracts or agreements previously awarded for an associated or phased project, and the expenditure is otherwise
exempt from the bidding process, include:
a. Encourage persons or firms to submit statements of qualifications;
b. Establish the criteria and procedures used for the selection of qualified persons or firms;
RESOLUTION No. 18-05
PAGE 14
c. Select the persons or firms whom the City determines to be the best qualified to provide
the required services and ranked in order of preference;
d. Negotiate the contract or agreement which should be reasonable and fair to the City
after considering the estimated value, the scope, the complexity and the nature of the
services;
e. If the City is unable to negotiate a satisfactory contract or agreement, formally
terminate negotiations and undertake negotiations with the next highest ranked person
or firm;
f. If the City is unable to negotiate a satisfactory contract or agreement with any of the
selected persons or firms, continue with the selection and negotiation process.
The City may limit its selection from a list of three (3) persons or firms selected and preapproved for consideration by
the City. In establishing a preapproved list, the City shall publish notice in the same manner as required for bidding
of public works construction projects.
The City may request information concerning a person's or firm's rates, overhead and multipliers, if any, provided
such information will not be used by the City for the purpose of ranking firms submitting bids in order of preference.
When the City has previously awarded a professional services contract to a person or firm for an associated or phased
project the City may, at its discretion, negotiate an extended or new professional services contract with that person or
firm.
END OF PROFESSIONAL SERVICES CONTRACT
Public Works Construction Procurement
Idaho Code 467-2805
The City Council will comply with all public works construction requirements of Idaho law
relating to the construction, alteration or repair of any buildings and improvements owned by the
City. This Public Works Construction Procurement guideline should be used by City staff in
conjunction with the City's Purchasing Policy.
Public Works Licensure
For any construction, alteration, improvement or repair involving any single project involving any
number of trades or crafts with an estimated cost of less than fifty thousand dollars ($50,000), a
public works contractors' license is not required. For projects equal to or greater than fifty
thousand dollars ($50,000), the successful bidder must hold a valid public works contractors'
license as required by Idaho law. If a portion or all of the funding for the public works project is
federal funding, the City's notice of solicitation of bids will not require that the bidder hold a valid
public works license at the time of submission of the bid. However, any successful bidder must
hold such license at the time of award and execution of a resulting contract.
Except as otherwise provided herein or by federal law, the successful bidder selected to complete
construction, repair, or renovation of City facilities must hold a valid public works license and
must agree to comply with the following guidelines as provided in Idaho Code §§44-1001 et seq.:
RESOLUTION No. 18-05
PAGE 15
1. The contractor or person in charge of public works construction must employ 95% bona
fide Idaho residents as employees except for sole source procurements authorized by Idaho
Code §67-2808(2).
2. Alternatively, if the total number of persons employed on the contract is fifty (50) or less,
the contractor or person in charge must employ 90% bona fide Idaho residents, provided
the contractor gives preference to the employment of bona fide Idaho residents in the
performance of such work.
3. For purposes of the guidelines in this section, "bona fide resident of Idaho" means that the
person has resided in Idaho for not less than one (1) year immediately prior to employment
on the project.
4. In contracts involving the expenditure of federal aid funds the preference for bona fide
Idaho residents will not be enforced in such a manner as to conflict with or be contrary to
federal law prescribing a labor preference to honorably discharged soldiers, sailors, and
marines, prohibiting as unlawful any other preference or discrimination among citizens of
the United States.
5. An employee who is not a citizen of the United States, or has not declared an intention to
become such, or is not eligible to become a citizen shall not be employed upon any public
works construction project of the district.
6. Whenever applicable provisions of Idaho law require a public works contractor's license
to bid upon a public construction project, the requirement will be deemed waived whenever
a federal law prohibits requiring licensure as a precondition for submitting a bid.
7. Nothing in this policy prohibits the City from performing construction or repair work on
its own facilities using its own employees.
Written Plans and Specifications
The City Council or its designee will make written plans and specifications of work to be
performed or materials to be furnished on any public works construction project of the City, which
plans and specifications will state, among other things pertinent to the work to be performed or
materials furnished, the number, size, kind and quality of materials and service required for such
contract. The plans and specifications will not specify or provide for the use of a specific brand
or mark, or any patented apparatus or appliances when other materials are available for such
purpose and when such requirements would prevent competitive bidding on the part of dealers or
contractors in other articles or materials of equivalent value, utility or merit. All plans and
specifications will be made available to all interested and prospective bidders, provided that the
board may require prospective bidders to make a reasonable deposit for such plans and
specifications.
Design -Build Construction
The City may use the design -build method of construction in contracts for the construction, repair
or improvement of City buildings. For purposes of this guideline, a design -build contract is a
contract between the City and contractor or other party in which the contractor agrees to both
design and build a structure or other item specified in the contract.
RESOLUTION NO. 18-05
PAGE 16
The City will use the following criteria in determining when to use the design -build method of
construction:
1. Project suitability for design -build method contracting regarding time constraints, costs
and quality factors;
2. The availability, capability and experience of potential design -build firms;
3. The City's ability to manage design -build projects, including employing experienced
personnel or outside consultants; and
4. Other criteria the City deems relevant and states in writing in its determination to use
design -build contract procedures.
Any design -build firm, regardless of its organizational structure, must comply with all
requirements of Idaho Code §§54-1201 et seq., relating to licensing of engineers and surveyors,
and Idaho Code §§54-1901 et seq., relating to public works contractor licensing. Any Idaho
professional engineering licenses required shall be obtained prior to submittal of a design -build
firm's proposal. The design -build firm shall also obtain any required Idaho public works licenses
prior to submittal of a proposal, unless the project involves federal funds. If the project involves
federal funds, then the design -build firm must obtain any required Idaho public works licenses
prior to contract award.
Subcontractors to be Listed on Bid of General Contractor
In all bids submitted for the construction, alteration or repair of City buildings and improvements
which construction requires plumbing, HVAC work or electrical work, the general contractor is
required to include in his bid the name(s) and address(es) of the subcontractors who will
subcontract the plumbing, HVAC work and electrical work under the general contract.
In the event the general contract intends to self -perform the plumbing, HVAC work or electrical
work, the general contractor must be properly licensed by the state of Idaho to perform such work.
The general contractor must demonstrate compliance with this requirement by listing the valid
contractor's license number for the plumbing, HVAC or electrical work to be self -performed by
the general contractor on the bid form.
At the time subcontractors are named in accordance with this section, they must possess the
appropriate licenses or certificates of competency issued by the state of Idaho covering the
contractor work classification in which each respective subcontractor is named, except in cases
where the project is financed in whole or in part by federal aid funds. In such cases, the
subcontractor must possess the appropriate license or certificate at or prior to the award and
execution of the contract.
The general contractor may not name any subcontractor in his bid unless he has received
communication from the subcontractor by telephone, mail, facsimile, electronically or in person.
In the event the general contractor who secures the contract cannot finalize the terms of the
agreement between him and a named subcontractor for any reason other than cost, the general
contractor shall name another subcontractor by written notification within ten (10) days of being
RESOLUTION No. 18-05
PAGE 17
awarded the contract. The general contractor shall disclose to the City the cost for the work to be
performed by substitute contractor. If the amount of the substitute subcontractor's bid is less than
the original subcontractor's bid, the reduction in cost shall be passed through to the benefit of the
City.
Failure to name subcontractors or list the valid contractor's license number for plumbing, HVAC
or electrical work being self -performed by the general contractor shall render any bid submitted
by a general contractor unresponsive and void.
Public Works Agreements — Payment of Wages
Except as provided in this section or as required by federal or state law, the City will not require
that a contractor, subcontractor, material supplier or carrier engaged in the construction, alteration,
equipping, furnishing, maintenance, repair or improvement of public works to pay its employees
a (i) predetermined amount of wages or wage rate; or (ii) a type, amount or rate of employee
benefits. The foregoing requirement will not apply when federal law requires the payment of
prevailing or minimum wages to persons working on projects funded in whole or in part by federal
funds (e.g. Davis -Bacon Act wages). In addition, the City will ensure that neither it nor any
construction manager acting on its behalf will:
1. In its bid documents, specifications, project agreements or other controlling documents for
a public works construction contract, require or prohibit bidders, offerors, contractors,
subcontractors, or material suppliers to enter into or adhere to prehire agreements, project
labor agreements, collective bargaining agreement or any other agreement with one (1) or
more labor organizations on the same or other related construction projects; or
2. Discriminate against, or treat differently, bidders, offerors, contractors, subcontractors or
material suppliers for becoming or refusing to become ore remain signatories or otherwise
to adhere to agreements with one (1) or more labor organizations on the same or other
related construction projects.
Nothing in this section will prohibit bidders, offerors, contractors, subcontractors or material
suppliers from voluntarily entering into agreements described in subparagraph 1 above.
The requirements of this section do not prohibit or interfere with the rights of employers or other
parties to enter into agreements or engage in any other activity protected by the National Labor
Relations Act, 29 U.S.C. §151 et seq.
Public Works Construction Under $50,000; Lack of Available Licensed Contractors
For any single contemplated public works construction project with an estimated total cost of less
than fifty thousand dollars ($50,000), where the City determines that there may be a lack of
available licensed contractors, the City may publish a notice of intent to solicit bids in the
newspaper of general circulation in the City, concurrently sending such notice to the public works
contractors license board, soliciting statements of interest from licensed public works contractors
to determine whether one or more licensed contractors is interested in submitting a bid.
RESOLUTION NO. 18-05
PAGE 18
Such notice will describe the project in sufficient detail to allow an experienced public works
contractor to understand the construction project, the method(s) authorized for submitting bids
(electronic or physical delivery), and the date and time by which a bid proposal must be received
by the City Clerk. The solicitation must provide a reasonable time to respond to the solicitation,
provided that, except in the event of an emergency, such time shall not be less than three (3)
business days. If no licensed public works contractor submits a statement of interest, the City may
purchase public works construction from other than a licensed public works contractor by using
the same procurement procedures otherwise specified herein.
Public Works Construction Between $50,000 and $200,000
When the City contemplates public works construction valued in excess of fifty thousand dollars
($50,000) but not to exceed two hundred thousand dollars ($200,000), the following procedures
will be used:
Solicitation for Bids
The solicitation for bids for the public works construction to be performed will be supplied to no
fewer than three (3) owner -designated licensed public works contractors by written means, either
by electronic or physical delivery. The solicitation will describe the construction work to be
completed in sufficient detail to allow an experienced public works contractor to understand the
construction project the City seeks to build, the method(s) authorized for submitting bids
(electronic or physical delivery), and the date and time by which a bid proposal must be received
by the City Clerk, and shall provide a reasonable time to respond to the solicitation, provided that,
except in the event of an emergency, such time shall not be less than three (3) business days.
Obiections
The City Clerk must receive written objections to specifications or bid procedures at least one (1)
business day before the date and time upon which bids are scheduled to be received. The City
Clerk or designee will respond to any such objection in writing and communicate its response to
all prospective bidders, adjusting bidding timeframes if necessary. Any objection not submitted
within the time required by this section will be deemed a waiver of any rights to raise such an
objection thereafter.
Contract Award
When written bids have been received, by either physical or electronic delivery, they will be
submitted to the City Council or a designee of the City Council shall present the lowest responsive
bid to the City Council for approval or, if authorized, approve the bid. The City Council or its
designee shall approve the responsive bid proposing the lowest procurement price or reject all bids
and publish notice for bids, as before.
If the City Council finds that it is impractical or impossible to obtain three (3) bids for the proposed
public works project, it may acquire the work in any manner it deems best from a qualified public
works contractor quoting the lowest price. When fewer than three (3) bids are considered, the City
Council will document the efforts undertaken to procure at least three (3) bids, and such
documentation shall be maintained for at least six (6) months after the decision is made. If two
RESOLUTION NO. 18-05
PAGE 19
(2) or more price quotations offered by different licensed public works contractors are identical
and constitute the lowest responsive bids, the board may accept the one it chooses.
Public Works Construction in Excess of $200,000
When the City contemplates public works, construction valued in excess of two hundred thousand
dollars ($200,000), the City Council will engage in a competitive sealed bid process and contract
with the qualified public works contractor submitting the lowest bid price complying with bidding
procedures and meeting any prequalifications established by the bid documents. The City Council
may elect to solicit competitive bids for public works construction with or without requiring
prequalifications, following the procedures outlined below.
Solicitine Bids without Preaualification Requirements (Cate2ory Al
The City Council will consider bids submitted from any licensed public works contractor desiring
to bid upon a public works project. In awarding a contract, the City Council may only consider
the amount bid, bidder compliance with administrative requirements of the bidding process, and
whether the bidder holds the requisite license, and shall award the bid to the qualified bidder
submitting the lowest responsive bid.
Notice
The request for bids shall set a date and place for the public opening of bids. Two (2)
notices soliciting bids shall be published in the official newspaper of the district. The first
notice shall be published at least two (2) weeks before the date for opening bids, with the
second notice to be published in the succeeding week at least seven (7) days before the date
that bids are scheduled to be opened. The notice will succinctly describe the project to be
constructed. Copies of specifications, bid forms, bidder's instructions, contract documents,
and general and special instructions will be made available upon request and payment of a
reasonable plan copy fee by any interested bidder.
Obiections
The City Clerk must receive written objections to specifications or bid procedures at least
three (3) business days before the date and time the bids are scheduled to be opened. The
City Clerk or City Council designee supervising the bidding process will respond to any
objection(s) in writing and communicate such response to all prospective bidders, adjusting
bidding timeframes if necessary. Any objection not submitted within the time required by
this section will be deemed a waiver of any rights to raise such objection thereafter.
Submission of Bids
All bids must be presented or otherwise delivered under sealed cover to the City Clerk or
City Council designee designated by the information provided to bidders by the City
Council with a concise statement marked on the outside generally identifying the project
to which the bid pertains.
Bid Security
If the City Council deems it is in the City's best interest, it may require bidders to provide
bid security in an amount equal to at least five percent (5%) of the amount bid. If required,
RESOLUTION No. 18-05
PAGE 20
a bid will not be considered unless one (1) of the forms of bidder's security is enclosed
with it. The City Council may require that the bid security be in one of the following forms:
1. Cash;
2. A cashier's check payable to the City of Eagle;
3. A certified check payable to the City of Eagle; or
4. A bidder's bond executed by a qualified surety company, payable to the City of
Eagle.
Contract Award
Sealed bids will be opened in public at the date, time, and place specified in the notice,
thereafter to be compiled and submitted to the City Council for award, or if a designee is
authorized, for approval of the award. Any bid received by the City Council may not be
withdrawn after the time set in the notice for opening of bids.
In its discretion, the City Council may reject all bids and re -bid, or may, after finding it to
be a fact, pass a resolution declaring that the project can be performed more economically
by purchasing goods and services on the open market. If two (2) or more bids are the same
and both constitute the lowest responsive bids, the City Council may accept the one it
prefers. If no bids are received, the City Council may procure the construction goods and
services without further competitive bidding procedures.
If the City Council chooses to award the contract to a bidder other than the apparent low
bidder, the City Council will declare its reason(s) on the record and communicate such
reason(s) in writing to all who have submitted a competing bid.
Failure to Execute the Contract
If the successful bidder fails to execute the contract, the amount of his bidder's security
may be forfeited to the City at the sole discretion of the City Council and, thereafter, the
proceeds may be deposited in a designated fund out of which the reasonable expenses for
procuring substitute performance are paid.
The City Council may, on the refusal or failure of the successful bidder to execute the
contract, award the contract to the qualified bidder submitting the next lowest responsive
bid. If the City Council awards the contract to the next lowest qualified bidder, the amount
of the lowest qualified bidder's security may be applied by the City Council to the
difference between the lowest responsive bid and the next lowest responsive bid, and the
surplus, if any, shall be returned to the lowest bidder if cash or check is used, or to the
surety on the bidder's bond if a bond is used, less reasonable administrative costs not to
exceed twenty-five percent (25%) of the amount of the bidder's security.
Objection to Contract Award
If any participating bidder objects to the award of a contract, such bidder must submit a
written response to the City's notice within seven (7) calendar days of the date of
RESOLUTION No. 18-05
PAGE 21
transmittal of the notice, setting forth in such response the express reason(s) that the award
decision of the City Council is in error. Thereafter, staying performance of any
procurement until after addressing the contentions raised by the objecting bidder, the City
Council will review its decision and determine whether to affirm or modify the award, or
re -bid the contract, setting forth its reason(s) therefore. After completion of the review
process, the City Council may proceed as it deems to be in the public interest. Any
objection or appeal not submitted within the time required by this section will be deemed
a waiver of any rights to raise such objection or appeal thereafter.
Soliciting Bids with Prequalification Requirements (Category B)
The City Council may require that contractors "prequalify" prior to entering into competitive
bidding for a public works project. Prequalification standards may be established by the City
Council to consider the following issues: demonstrated technical competence, experience
constructing similar facilities, prior experience with the district, available nonfinancial resources,
equipment and personnel as they relate to the project, and overall performance history based upon
a contractor's entire body of work. Any licensed contractors desiring to be prequalified to bid on
a project must submit a written response to the City Council's request for qualifications. The City
Council will then accept bids only from prequalified contractors.
Notice
The City Council will provide notice of the prequalification stage by publishing two (2)
notices soliciting prequalification statements in the newspaper with general circulation in
the City. The first notice must be published at least two (2) weeks before the date for
opening prequalification statements, with the second notice to be published in the
succeeding week at least seven (7) days before the date that bids are scheduled to be
opened. The notice will succinctly describe the project to be constructed, the standards for
evaluating the qualifications of prospective bidders, and the date and time by which
qualification statements must be received.
Obiection to Preaualification Procedures
The City Clerk must receive written objections to prequalification procedures at least three
(3) business days before the date and time of which prequalification statements are due.
The City Clerk or the City Council designee supervising the bidding process will respond
to any such objections in writing and communicate its response to the objector and all other
contractors seeking to prequalify, adjusting bidding timeframes if necessary. Any
objection to prequalification procedures not submitted within the time required by this
section will be deemed a waiver of any rights to raise such objection thereafter.
Selection of Prequalified Contractors
After a review of qualification submittals, the City Council may select licensed contractors
that meet the prequalification standards. If any licensed contractor submits a statement of
qualifications but is not selected as a qualified bidder, the City Council will supply a written
statement of the reason(s) why the contractor failed to meet prequalification standards.
RESOLUTION No. 18-05
PAGE 22
Appeal of Preaualification Determination
Any licensed contractor may appeal the determination that it does not meet the
prequalification standards. Such appeal must be submitted to the City Council within seven
(7) days after transmittal of the prequalification results. The City Council will conduct the
appeal by reviewing solely the written objection and accompanying documentation; the
City Council will not meet with the licensed contractor. If the City Council sustains its
prior decision, it will state its reason(s) for the record. The City Council's decision
concerning prequalification may be appealed to the public works contractors' license board
no more than fourteen (14) days following the City Council's decision on appeal, pursuant
to the procedures set forth in Idaho Code §67-2805(2)(b)(iv). The public works
contractors' license board then has thirty-five (35) days to decide any such appeal. Failure
to file a timely appeal of a prequalification determination will be deemed to constitute a
waiver of any rights to file an appeal thereafter.
The City Council will stay the bidding process during the pendency of the prequalification
appeal until the public works contractors' license board completes its review, but in no
instance more than forty-nine (49) days after the board issued its final decision regarding
the prequalification appeal. Any licensed public works contractor affected by a decision
on appeal by the public works contractors' license board may, within twenty-eight (28)
days of the final decision, seek judicial review as provided by Chapter 52, Title 67, Idaho
Code.
Following the conclusion of the prequalification administrative procedures, the bidding
stage shall proceed by the setting of a time, date, and place for the public opening of bids.
In circumstances involving prequalified prime contractors, a notice soliciting bids shall be
transmitted to prequalified bidders at least fourteen (14) days before the date of opening
the bids. In circumstances involving prequalified specialty or subordinate contractors,
notice shall be published in the official newspaper of the district twice, the first of which
will be published at least two (2) weeks before the date for opening bids, and the second
of which will be published in the succeeding week at least seven (7) days before the date
that bids are scheduled to be opened. The notice shall succinctly describe the project to be
constructed. Copies of specifications, bid forms, bidder's instructions, contract documents,
and general and special instructions shall be made available upon request and payment of
a reasonable plan copy fee by any prequalified bidder.
Obiections to Bid Specifications/Procedures
The City Clerk must receive written objections to specifications or bidding procedures at
least three (3) business days before the date and time upon which bids are scheduled to be
opened. The City Clerk or other designee will respond to any such objection in writing
and communicate such response to the objector and all other plan holders, adjusting
bidding timeframes if necessary. Any objection not submitted within the time required by
this section will be deemed a waiver of any rights to raise such objection thereafter.
RESOLUTION No. 18-05
PAGE 23
Delivery of Bids
All bids must be presented or otherwise delivered under sealed cover to the City Clerk or
other person designated by the instructions to bidders with a concise statement on the
outside identifying the project to which the bid pertains.
Bid Security
If the City Council deems it is in the City's best interest, it may require the bidder to provide
bid security in an amount equal to at least five percent (5%) of the amount bid. If required,
a bid will not be considered unless the bidder's security is enclosed with it. The City
Council may require that the bid security be in one of the following forms:
1. Cash;
2. Cashier's check, payable to the City of Eagle;
3. Certified check, payable to the City of Eagle; or
4. Bidder's bond executed by a qualified surety company, payable to the City of
Eagle.
Bid Opening
When sealed bids have been received, they shall be opened in public at a designated place
and time. The City Council's designee shall thereafter compile and submit the bids to the
City Council for award or, if authorized, approve the award. Any bid received by the City
may not be withdrawn after the date and time set in the notice for opening of bids. A bid
will not be considered if it is not submitted in a form that substantially complies with the
form provided by the City, and/or the bid security, if required, is not enclosed.
Failure to Execute Contract
If the successful bidder fails to execute the contract, the amount of his bidder's security
may be forfeited to the City at the sole discretion of the City Council and the proceeds
deposited in a designated fund to pay the expenses of obtaining substitute performance.
The City Council may, on the refusal or failure of the successful bidder to execute the
contract, award the contract to the qualified bidder submitting the next lowest responsive
bid. If the City Council awards the contract to the next lowest qualified bidder, the amount
of the lowest qualified bidder's security may be applied by the City Council to the
difference between the lowest responsive bid and the next lowest responsive bid, and the
surplus, if any, shall be returned to the lowest bidder if cash or check is used, or to the
surety on the bidder's bond if a bond is used, less reasonable administrative costs not to
exceed twenty-five percent (25%) of the amount of the bidder's security to the owner.
Awarding the Contract
In its discretion, the City Council may accept a bid, reject all bids presented and re -bid, or,
after finding it to be a fact, pass a resolution declaring that the project can be performed
more economically by purchasing goods and services on the open market. If identical bids
are received, the City Council may choose the bidder it prefers. If no bids are received, the
RESOLUTION NO. 18-05
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board may procure the goods or services without further competitive bidding procedures.
The City Council will send written notice of its decision regarding the award of the contract
to all contractors who submitted a bid.
If the City Council chooses to award a competitively bid contract involving public works
construction to a bidder other than the apparent low bidder, the City Council must declare
its reason(s) on the record and communicate such reason(s) in writing to all persons who
have submitted a competing bid.
Objections to Contract Award
Any participating bidder may object to the contract award by written response to the City
Council's notice of a contract award. Such response must be submitted to the City Clerk
within seven (7) calendar days of the date of transmittal of the notice, and set forth the
express reason(s) that form the objection to the award decision. The City Council will stay
performance of the public works construction until it has addressed the contentions raised
by the objecting bidder. The City Council will review its decision and determine whether
to affirm its prior award, modify the award, or choose to re -bid, setting forth its reason(s)
therefor in writing. After completion of the review process, the City Council may proceed
as it deems to be in the public interest. Any objection not submitted within the time set
forth in this section will be deemed a waiver of any rights to raise such objection thereafter.
Payment and Performance Bonds
Before any contract equal to or greater than fifty thousand ($50,000) for the construction, alteration
or repair of any building or improvement is executed, the person to whom such contract was
awarded shall furnish to the City bonds, as described in this section, that shall become binding
upon the execution of the contract. The person to whom the contract was awarded shall be
designated as "contractor." Each bond shall be executed by a surety company(ies) authorized to
do business in Idaho or, in lieu of providing such surety company performance and payment bonds,
the contractor may deposit a government obligation. A "government obligation" is a public debt
obligation of the United States government or the state of Idaho and an obligation whose principal
and interest is unconditionally guaranteed by the United States government or the state of Idaho.
All payment and performance bonds shall be filed with the board clerk or other designated agent
of the board. The following guidelines will apply to performance and payment bonds:
1. Performance Bonds. The City Council has discretion to set the amount of the
performance bond, but in no case will it be set at less than eighty-five percent (85%) of the contract
amount. The performance bond will be conditioned on the faithful performance of the contract in
accordance with the plans, specifications, and conditions thereof, and is issued solely for the
protection of the board.
2. Payment Bonds. The City Council has discretion to set the amount of the payment
bond, but in no case will it be set at less than eighty-five percent (85%) of the contract amount.
The payment bond is issued solely for the protection of persons supplying labor or materials, or
renting, leasing or otherwise supplying equipment to the contractor or his subcontractors in the
prosecution of the work provided for in such contract.
RESOLUTION No. 18-05
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Where the City Council requires a performance bond or payment bond in excess of fifty
percent (50%) of the total contract amount, it will not withhold from the contractor or subcontractor
any amount exceeding five percent (5%) of the total amount payable as retainage. The City
Council will release to the contractor any retainage for those portions of the project accepted it and
the contractor have accepted as complete within thirty (30) days after such acceptance. Pursuant
to Idaho Code §54-1926(3), contractors, contracting with subcontractors pursuant to contract work
with the City, shall not be authorized to withhold from the subcontractor(s) any amount exceeding
five percent (5%) of the total amount payable to the subcontractor(s) as retainage. The contractor
is further required to remit the retainage to the subcontractor(s) within thirty (30) days after
completion of the subcontract.
END OF PUBLIC WORKS CONSTRUCTION
END OF PURCHASING POLICY
RESOLUTION No. 18-05
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