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HomeMy WebLinkAbout1291_001TO: Michael E. Janonis, Village Manager FROM: David C. Jepson, Finance Director DATE: August 1, 1994 SUBJE Purchasing Policies and Procedures Manual lot 0 oil t. SAA W 91 IW lb A,,* Fro -I -tire Ile Village" s Purch 9 Manual points out that municipal purchasing policies and procedures are governed by both state laws and local ordinances. Ile purposes of these laws and regulations are to 0 me conserve tax dollars from waste and to protect the puDne from fi-audulent pmdces. Laws and 0 regulations can h-"— to achieve these Lyoals, but we believe a hither standard is required: public CIP W__ war purchasing must be recognized as a public trust and must be conducted in a manner which leads to public confidence in the integrity of the VW*age's procuremeM� proceduresO C1 Ile Purchasing Manual contains spemne poli es procedures and examples dW can be used by all 'I'MI Village Departments. 11e, documents practice by the Village with the exception of duw arms that conWn proposed changes dW would need to be approved, by the Village Board. Ile duw recommended changes are: increase the amount from $4,000 to $ 10,000 for purchases from one vendor for a particulu item or like items that must be accomplished through a formal bidding process. 2, Eliminate formal bidding requirements by the Village when the Village has entered into a joint purch 9 contract with another entity which has conducted competitive bidding, I Authorim the disposal of goods with a value of $100 or less on an infomal sale basis rather than a formal bid p throughrocess. Michael E. Janonis Page 2, P urchasing Policies and Procedures Manual tiff 11 a 0 1 SO Alf- A.0 I V-3 fell PURCHASING POLICIES AND PROCEDURES PURCHASING POLICE AND PROCEDURES INTRODUCTION Unlike the independence with which a business in the private sector can develop purchasing pot icies and procedures, the Village of Mount Prospect is governed by both state laws and local ordinances. Many of these laws and regulations have been enacted with the intention of conserving tax dollars from waste and protecting the public from fraudulent practices. Laws and regulations can help to achieve these goals, but we believe a higher standard is required: public purchasing must be recognized, as a- public trust. The purchasing policies and procedures of the Village of Mount Prospect have been developed with this standard as the highest priority. They not only are in accordance with the requirements of Illinois State Statutes and the Village Code, but they also have been formulated in a manner which is intended to lead to public confidence in the integrity of the Village's procurement procedures. The Village of Mount Prospect has adopted the provision of Illinois Statutes commonly called the "Budget Officer Law" whereby, an annual budget is adopted in lieu of an appropriation ordinance. The annual budget includes all Village operating units and is made up of line -items, for each object of expenditure. When adopted by the Mayor and Board of Trustees, the budget becomes the legal authorization to expend resources for providing Village services. Accordingly, all Village expenditures must be specifically authorized in the approved budget or in a subsequent amendment. The goal of the Village's purchasing program is to obtain the best quality goods and services at the lowest possible price. The purpose of this manual is to establish guidelines to achieve this goal within the philosophy stated above. We believe the procedures contained in this manual will assist each Department Director in obtaining necessary goods and materials in a manner that is consistent with the highest, standards of public service. Prepared By Finance Department July 1994 VILLAGE PROSPECT PURCHAMNG- POLICIES PROCEDURES TABLE Purchasing Policies .••• 0*A4of000.,••••.•••.r. 1 Purchasing Procedures Purchasing Items Over $10,000 • ■ ■ r . ■ • . 2 Purchasing Items From $1,000 to $1000 2 Emergency Purchases .•••••. •• 3 Purchases Under$ 1,.••.•••.;••••, 3 Professional Service Contracts •.,..•••,••..•r• 3 Purchase Agreements••. 4•0.0••9•u• 4 Blank et Purchase Orders••.•. •r.• 0•40•040r0 4 Issuance of Purchase Orders • • • • r . . • • . S Accounts Payable Procedures 6 Cash Reimbursement and Advances Petty Cash ••••r.•r•■r• S Conference/Seminar Advances . • • • . • Fined Assets Acquisition of Fixed Assets•■ra•••r 10 ,r■ Disposal of Assets.����r������•�•�����••�� �•. IB 10 m APP r 41,endix I Ile Bidding Process � � � � � .• r • �• �� � � • �, �, � 11 Instructions to Bidders r • • • • r • • • • • • r • • r r • • • • • • • • • r • ■ • • • • • • • • • r 12 al Employment Opportunity Clause y r • • 14 Bid Recommendation -StandardBidFormat•■•. 15 Appendix 2 Sales Tax Exemption Letter , .. a , • • • . r ■ . r • . • •, . . 17 App end ix 3 Conference/Seminar Attendance Request . • • • • • 18 EmployeeExpense Report ...■■,■•r•• lit o•.•••.• 19 Appendix Budget Transfers •....••.,..•.•..Y PP g 20 Appendix 5 Village Code - Purchasing Provisions � � • � • • � � � � � • � • � • * � � � r r � � � PP g g 21 ra) 1 Public purchas'W'g is a public trust., All putchasm''g by the Village will be, in a=rdance, with,the, Village Code, and Ill ,s CoMpiled, Statutes. �/Ulage employees, are expected to conduct, themselves in a manner which will lead topublic confidence W* the,,integrifty of the Village's procurement procedures. 2. The Village of Mount Prospect utilizes a decentralized purchasing process. Purchasing activities (speclification preparation,, bid,,revi�ews,,te,liep,hon,,e quotation solicitation, and requisition preparation) are the responsibility, of the using department, must, be conducted within procedures established by the Finance Department, All purchasing, -,related activities shW I be monitored by the Finance Department to ensure that all, purchasiprocedures, ng h ave been, IbIlowedS, v, to! be made with the authorization ofthe, Dep 3 Alt -purchases, are , artment Director and, processed, through the, Finance Department. Approval for purchases, under, $1,000 shall beprovided by the Finance Director and, for purchases in excess of $1,000 by the Finance DireMr and the Village Manager. Payment fbr all expenditures shall be subject to final approval by the Board of Trustees. 4. Whenever practical, all purchases are to be based upon competitive bids or quotations in order to obtain the highest quality service, commodity, or material, at the lowest possible cost. A minimum of three bids or quotations shall be sought whenever possible. 54 With the exception of professional services, all purchases in excess of $10,000 must generally be the result of a formal bidding process with award of the bid being made by the Village Board. However, there are circumstances where waiver of formal bidding may be recomunended. The Village Manager must approve the recommendation and the Village Board must authorize waiving the formal bidding procedures. 6. The Village of Mount Prospect may allow purchases through the use of negotiated contracts. A negotiated contract will generally utilize the Request -For -Proposal (RFP) method, wherein proposals are solicited from suppliers for goods or services. After RFPs have been evaluated, the Dep', rtment Director shall recommend the offer deemed most advantageous in terms of developed I criteria and forward it to the Village Manager for concurrence and to the Village Board for final approval if necessary. 7. The Village of Mount Prospect will attempt to purchase services, commodities, or materials from vendors 0 0 located in Mount Prospect whenever possible, if these vendors are competitive m price quality. 8. It shall be the policy of the Village to participate in joint purchasing cooperatives such as the Northwest Municipal Conference joint purchasing program and the State of Illinois program to the extent such programs provide an economic advantage to the Village. rovi 9. In order to avoid a conflict of interest., it is the express policy of the Village of Mount Prospect that no or o VicioMy''g"fts, or gratuities at any, time of the it employee ffial r their inate mmedamily At I all accep i year from any person, firm, or corporation wh "I"ch may, influ ence, them,'in the, d ischarge of their duties o'r could be reasonably inferred that such acceptance would influence them in the discharge of their duties. T, _T Ms lulb DEN i ft N a 0 -a 0 .11 1 - Dill t Village policy requires that all purchases made from one vendor Iten.10MIA10a il fora particular item or like types of items exceeding a cost of $10,000 must be accomplished. through formal bidding procedures or by a bid waiver approved by the Village Manag, a and authorized by the Village Board of trustees, The -splitting of a purchase into two or more purchase requisitions for the purpose of avoiding the bidding process is an express violation of Village policy. . I a. Formal bidding procedures shall include advertising, seeking the greatest number of qualified bidders, and controlling and opening sealed bids from vendors. These procedures shall include development of specifications, advertisement of a Bid Notice in a local newspaper, andOPening of bids at the specific time and place designated by the Bid Notice. Bid recommendations shall be reviewed by the Village Manager and forwarded to the Board Trustees for approval. The bid recommendation shall include a sun=— h a list of all vendors of the bid results along with contacted for bids, all qualified bids and the reasons for non -bids. A listing of procedures to be followed in the bid process can be found. in Appendix 1. b. In certain circumstances, a using Department Director may believe that the best interests of the Village would be 91, served by a purchase from one particular vendor despite the aaraount of the purchase being in excess of $10,000. In this instance, a Request for Bid Waiver must include adequate justification and be forwarded to the Village Manager. After review and concurrence, the Request for Bid Waiver shall be forwarded to the Board of Trustees for final approval. C. Competitive bidding shall not be required when the Village exercises the option of purchasing with the State of Illinois or other governmental unit or when the Village, pursuant to its home rule powers, enters into a joint purchasing contract for materials, supplies or equipment with another entity which has .conducted competitive bidding. 2 Purchases in this.category do not require 4P 0 apyniv of the Finance Director the prior approval of the Village Board of Trustees, however, the R — - 0 Village M er is required. Although fb M# bng procedures are not required, formal quotation procedures must be followed. a. Requests for purchases in excess of $1,000, but less than $10,000 are to be forwarded to the Finance Director through a purchase order with a suggestW, vendor. Every effort should be taken to secure at least threequotations before deciding on a suggested vendor. These quotations may be written or verbal. Verbal quotations must be properly documented with the name of the vendor, contact person, total cost, and per unit cost, where applicable. b. In the event that a Department Director believes that a purchase under $ 10,,000 but over $1,000 should be made from one certain vendor rather than through quotations., the director shall submit a purchase order and justification for the recommendation to the Finance Director., which states the reasons for the certain vendor preference. The Finance Director shall review the request of the department director and will determine if other vendors should be contacted. If the Finance Director believes that additional qualified vendors would provide additional quotes, the Finance Director shall recommend to the Department Director that additional quotes- be sought. a. If an emergency condition exists, and a purchase of over $10,000 must be made to remedy the emergency condition, the Manager using Department Director may make such purchase if expressly authorized by the Village or his designee. The Department Director must report the purchase to the Village Manager by memorandum as expeditiously as possible relating the full facts concerning the emergency and the costs incurred. The Village Mier will submit a report detailing the emergency to the Village Board for ratification of the emergency expenditure at the next regular Board meeting. An emergency situation shall exist when a threatened termination of essential services occurs due to mechanical failure, or when dangerous conditions develop, or any condition which may vitally impact the safety, health, and welfare the public. I "I b. Emergency purchases under $ 10,000, but over $1,000, shall be handled during normral working hours by verbal communication with the Village Manager detailing the emergency and the necessary purchase. When purchases are required after normal working hours, verbal concurrence must be obtained by the using department from the Village Manager at the earliest possible time on the next working day.' WormAl purchasing involves the purchase of items used in day-to-day activities. These purchases do not include items budgeted under Capital Outlay, and are limited to those items priced under $1,000. Whenever possible, the Village strongly encourages the obtaining of three (3) written or verbal price quotations for items purchased under informal procedures. Infopurchasing should be made through the vendor who offers the best quality product at the lowest price. Depaurtment Directors may allow subordinates to ice purchases under informal purchasing procedures. However, Dep i III I i 1 1-,& Directors must approve and take responsibility for all purchase orders prepared by their employees under these procedures. Purchase Orders must be signed by the Department Director and sent to the Finance Director for review. I molmi I M41 Certain professional service contracts and agreements may be accomplished through requests for proposals (RFP"s) which are considered by the Village to be those which, by their nature, are not adapted to award by competitive bidding. These arrangements may include but are not limited to contracts for services of individuals possessing a high degree of professional skill where the ability of the individual plays an important part. RFP's may also be used for contracts or agreements for specialized maintenance or repair services, and contracts or agreements for data processing services. These contracts, agreements, or services may be entered into without formal bidding with the approval of the Village Manager for amounts up to $10,000. The Board of Trustees must specifically approve any contract in excess of $10,000. P A Purchase Agreement is an agreement between the Village and a local vendor for the purchase of frequently 0 are fbr office supplies., used, operational supplies tca, are not nomally stockW by the Vl4p. Examples hardware electrical, or painting supplies,, automotive parts and equipmentl etc.'' Such agreements, are used when the Village anticipates (1) picking up items locally or (2) purchasing items that must be delivered within 24 hours,due to immediate needs. 17hese agreements, which may be initiated by the Department Directors, are nomally for a tem of one (1) yea:r, and are to be used fbr purchases of amounts only up to a pre- determined, dollar limit. Purchase orders shall be issued on a monthly basis fbr all goods received during I the month. PMe process fbr authorizing payment for goods received under a Purchase Agreement is as follows: 1. The vendor will give the purchaser a copy of the invoice or a receipt at the time of purchase or delivery. 2. The purchaser will record on, the ttivoice/receiptthe dautte, account, number,, department, jand purpme for the e iture. Tbe, p er shall sign the in"I"ce/recei,ptand then, kmard the receipt tothe Department Director for review, approval and signature. 10 3. All approved -invoices/receipts are then forwarded to the Accounts Payable Clerk in the Finance Department. 4. The vendor shall furnish a monthly statement and a copy of the invoice to the Finance Dep— 1 - - ent, 5. The Finance Department will match the invoices received from the vendor with the invoice/receipts forwarded by the using departments, summ the accounts to be charged, deduct discounts, and process the payment. 6. If an individual purchase exceeds the pre -determined dollar amount, the Purchase Agreement may not be used and the using department must prepare a Purchase Order, The above itemized procedure may be used only for vendors for whom a'Purchase Agreement has been dif issued. The advantages of the use of these agreements are the el49 46P ation of numerous purchase orders for small amounts and a reduction of processing time and costs. Department Directors shall accept full responsibility for the proper use of these agreements within the guidelines established from time to time by the Finance Director and Village Manager. 11 A Blanket Purchase Order is a term contact, usually let 'throuh, the public bidding process and usuall1m, 9 established fbr a period of one (1) year, whereb y the vendor Shall su, I" ified items, or matenials at pp Y Spec set price. BI et Purchase Orders are used in procuring frequently used items and materials where th r quantities used are known or can be fitirly accurately estimated. I I The process for a Blanket Purchase Order is as follows: 1. A purchase order for the period of the contract showing all unit prices and the approved quantities shall be issued upon award of the contract. 2. The using department will order direct from the vendor as required. C 3. Upon receipt of the materials, the receiver will record the date, account number, department, and quantity of the materials received. The receiver shall sign in the space provided and then forward the shipping receipt to the Department Director for review, approval and signature. 4. The, shipping receipt is then forwarded to the Accounts Payable Clerk in the Finance Department. k 5. The vendor shall furnish a monthly statement and a copy of the invoice to the finance Department. 6. The Finance Department will match the invoices received from the vendor with the shipping receipts forwarded by the using departments, summarize the accounts to be charged,, deduct discounts, and process the payment., I The above procedures may be used only for vendors to whom a Blanket Purchase Order has been issued. Ile advantages of the use of these agreements are the elimination of numerous, repetitive purchase orders and a reduction of processing time and costs. Department Directors shall accept full responsibility for the proper use of these agreements within the guidelines established by the Finance Director and the Village Manager. The Finance Department shall supply each using department with periodic updates of Purchase Agreements and Blanket Purchase Orders. It is the responsibility of each department to maintain their file in a current UE 1L .11 status. 1AW Purchase orders shall be p'Fep ared by each Village department for purchases of all materials, supplies, equipment and services,, with the exception of utilities and insurance reimbursements. A purchase order should be prepared and forwarded to the Finance Department prior to a commitment to purchase or immediately after authorization by the Village Board. In the event of emergency purchases or where goods or services have been received, the purchase order should be marked "Confirmation.* 1. Blocks of pre -numbered purchase orders are distributed to each deparannedunt. It is the Department Director's responsibility to ensure that his/her assigned block is safeguarded__4W__in- the possibility of cn- Toss. The blocks of numbers are recorded on a log by the Accounts Payable Clerk, Z. The Department Director shall forward each completed purchase order to the Finance Department. Fund availability is checked and is signed by the Finance Director and/or the Village Manager. The signed purchase order is returned to the Department Director for distribution after separation of the Finance Department copies. 3. The purchase order, is entered into the encumbrance ledger by the Accounts Payable Clerk and filed until the goods or services have been received. 4. After the goods or services have been received, the Accounts Payable Clerk will verify the quantity ordered and received and the unit price authorized, and process for payment. 5. Any spoiled or voided purchase orders are to be returned to the Finance Department. ;d VILLAGE OF MOUNT PRO$PEC 0 A. Payment Cvcl Invoices approved for payment are processed for payment twice a month. The normal schedule for processing these invoices calls for them to be in the hands of the Accounts Payable Clerk by noon on the Tuesday of the Week before the Village Board meeting. All invoices received after this date will be processed for the .-next Village Board meeting. A memo listing the closing dates with their corresponding Village Board meeting dates is prepared annually and distributed to all departments. After invoices are processed for payment, the Accounts Payable Approval Report is prepared and presented to the Village Board for its approval. Accounts payable checks are released only after -formal approval by the Village Board'. UW1 I Full Shipment - Generally, vendors ship 100% of a purchase order. When the goods or services are received,, the' 0 AV Department Director or Usiner designee shall indicate on the receiving copy of the purchase order -that the purchase order has been filled. This receiving copy shall be forwarded to the Accounts Payable Clerk and serve as the authorization to process payment for the goods or services. It is the responsibility of each department to ensure that the goods or services received meet the specifications of the purchase order. 2. Partial Shipment - When an invoice for a partial shipment is received,, the receiving dep - AN may request that a partial payment be made. The Depa—z DW %wictr must indicate on a copy of the receiving copy of the purchase order that the-. I *%* WERS, is a partial shipment. Ile Accounts Payable Clerk shall attach a photocopy of the originaa purchase order to the invoice and process as M* #1 above In g sure to record the partial payment on the original purchase order. 1% 014"BA All original invoices must be delivered to the Accounts Payable Clerk in the Finance Department. The I Accounts Payable Clerk matches invoices and the corresponding receiving copy of the purchase order along invoice, 'With, the accounts payablecopy of the purchase order. The Accounts Payable Clerk inspects the 10 ition L49 extendingthe unit pnce against thenuMber of units,checkm*g the add, of the extensions and, deduct " IS any discounts. Because the 'Village, Board must, approve all payments before; they, are released, it � I sometimes difficult topay the invoice within the allowable discount period. For this reason, it is the practice of the Village of Mount Prospect to take all discounts regardless of timing. If the invoice contains an error, the Accounts Payable Clerk shall make any corrections on the original invoice, make a copy of the corrections and include the copy with the payment to the vendor. One of the 0 most common errors is the inclusion of sales tau on the invoice. If the invoice includes sales tax, an exemption letter should be included with the payment to the vendor. See Appendix 2. :If the unit price on the invoice is not the same as on the purchase order, the Accounts Payable Clerk shall contact the appropriate department for clarification and reconciliation. once a purchase order establishing unitP rices has been approved, it cannot be changed without the approval of the Finance Director. Do Rgh =,' QL!Q 1. After the village Board has approved the Payment Report, the checks are released on the next business day fallowing the village Board meeting. 2. occasionally, it is necessary to release a check before Board approval. only approval by the Finance Director shall cause the check to be released. '"These checks shall be kept to an absolute minimum and shall be included on the next accounts payable approval listing. E. m �p o r Upon release of .accounts payable checks, all backup information including requisitions, purchase orders, invoices and receiving advices are stapled together with the file copy of the check and filed alphabetically by vendor in the Finance Department. ky I 1 4 11633 1 X4W I 101 "1 4 t -i DIM M I - A. P= Cgh Petty cash may be used for three types of expenditures: 1. Minor, non -repetitive purchases for amounts less than $25.00. Petty cash may not be used for payment of personal services. 2. Out-of-pocket expenses for authorized meetings in an amount not to enc;eed $25.00 per person, with a limit of $50.00 perp cash slip. 3. s Emergency purchases in am amount not to exceed $100.00. To qualify as an emergency purchase to be paid with petty cash, the purchase transaction must be outside the Scope of normal, business practices; i.e. supplies needed on a Saturday or Sunday and from a vendor with whom the Village does not have an open account. To obtain reimbursement from petty cash funds, an employee must complete the petty cash form by listing the date, amount of the purchase, purpose of the expenditure, and the account number to be charged. 'The petty cash form must be signed on the line provided and delivered with the appropriate receipts to the Department Director or his/her authorized designee. Petty cash fimds are maintained the Finance Department, Village Manager's Office, Public Works Department, Fire Department, the Police Department. .1 Afterapproval by the Department Director, the petty cash form should then be presented to the petty cash custodian for payment. Each Department Director who maintains a petty cash fund shall prepare a purchase order for reimbursement of the, petty cash fund. The reimbursement shall list each expenditure and the account to be charged and be presented to the Accounts Payable Clerk at lent three (3) days prior to the expected reimbursement date. Petty cash funds are available to all departments for facilitating the, uma of Village business. However, these monies may not be used to avoid or circumvent the purchasing procedures of the Village. This form is to be used in lieu of a purchase order for authorized tr 0 4 g or travel expenditures. Employm- desiri'ng or, assigned to attend professional conferences/seminars must submit a enm' th ession,, or in tune to take Conference/Semmar Requuest-Form at least one month prior to the op g oU e, s advanta e of any pre4egistration savings. Tberequest shall be inwriting and, should elude the conference ,9 p 'ded schedule, registration information and estimated costs. For all employees except Department provided Directors, the Conference/Seminar Request Form must be signed by the employee and by an authorized Department representative. Department Directors must submit his/her Conference/Seminar form to the Village Manager for authorization. A Conference/Seminar Request Form is attached as Appendix 3. Reimbursement for conference costs shall be as follows: 1. Reimbursement for overnight conference costs shall include actual registration fee; least expensive double room at the conference hotel; round-trip transportation (current mileage allowance for private vehicle or air coach fare arranged through a Village -approved travel agency, whichever is less); current per them meal allowance (less meals provided) and miscellaneous expenditures up to a maximum of ten percent of total; i.e., taxi, porter and job-related publications. 2. Reimbursement for attendance at a conference in which the employee returns home each evening, shall be on the same basis as item I above except that the meal allowance shall be the actual cost of meals purchased rather than a per them allowance. 3. Expenses for overnight seminarstraining, sessions which an employee is required to attend,,, shall be compensated on the same basis as item I above except for per them meal expenses, 'The per them meal allowance shall be that amount recommended by the traainiU. school, or if no amount is recommended, the Village's current allowance. 4. Exp enses,for all other seminarsltraining smions which an employee is required to attend, I be reimbursed on the basis of customary and necessary costs as approved by the Department Director, 5. Reimbursement for any costs not identified in items 1, 2, 3 or 4 above or for any amounts in excess of the allowable amounts provided must be approved by the De pax tr - ---- Director and the Village Manager. "I Conference/Seminar advances may be obtained through the Finance Department by submission of an approved request form at least two weeks prior to the date of departure. An advance is permitted up to the maximum allowable reimbursement of estimated costs. 1 9. A detailed accounting of the money spent at each conference shall be submitted to the Finance Department within one week after the employee's return from. the conference. The accounting shall be made on an Employee Expense Report Form and shall include receipts for all rei conference costs except per them expenses. In the absence of an actual receipt, a statement identifying the reasons for a specific expense and information such as date, time, place and names must be included. If a balance is due the employee, the completed Employee Expense Report form will serve as the author ion to process the balance due. Any refund due the Village shall accompany the completed form and a receipt shall be issued to the employee. An Employer Expense Report Form is included in Appendix 3. Fixed Assets are by definition those goods having a life in excess of three years a cost in excess of $500. !bey are acquired W, the same manner as otherpurcbases in this manual, T'he Village -does conduct a fixed asset, valuation periodica Itly ft mventoU and, insumance, purpow., In order to beof use to 'the Village,,this periodic evaluation needs to be updated annually for new purchases 11 for any retirement o assets outgrowing their useful lives. I The AcCOUntsPayable, Clerk shall record the appropriate inf regarding new fixed assets and, trade-� wh k !The Accounts Pa*te Cler, shall, then, transferthe data, on, en Processmg the invoicm torPayMente invoice to input fbrms provided by the asset appraiser including the assigned asset identification number At the end of the ye;w, all co -intlation sheets are to be forwarded to the fixed asset appraiser to be enter and a new report generated including the new acquisitionsi I XT I � MI J 2 All departments are required to submit reports annually to the Finance Director listing Village -owned supplies, materials and equipment which are no longer used or which are obsolete or worn out and may be disposed of. The Finance Director, with the approval of the Village Manager, may transfer such items to other departments having need for them, or sell or trade such items on new supplies, materials, or equipment. Any one item determined to be of less than $ 100 in value may be sold on an inform basis by the Finance Director with the approval of the Village Manager. Such sales may be made to any party other than a Village employee or may be held for sale at public auction. When the value of materials to be sold exceeds $100, the sale is to be advertised in a local newspaper at least 10 days before the date of sale and sold by sealed bid or at public auction. Sealed bids shall be opened publicly. Award of sales by sealed bid under $10,000 may be made by the Village Manager as soon after the bid opening as feasible. Award of sale in excess of $10,000 shall be by the Mayor and Board of Trustees. Bona fide bidders may be required to include a certified check or cashiers check as specified in the bid advertisement. Such deposits shall be returned to un uccessful bidders immediately following an 'w award of sale. Any items sold at public auction shall be subject to the terms and conditions determined at I the time of the auction. The Village will furnbqh, to the successful bidder a bill of sale, or in the case of automotive vehicles, a certificate of tide. All sales shall be without guarantee, as -is condition, and final. Sale items not removed from the premises of the Village within 10 days after award of sale shall become the property of the Village and eligible for resale or other disposition by the Village. A Appendix I In the event that a formal bid letting is required, the following process must be adhered to: 01 The requesting department prepares the specifications for the item to be bid along with any other documents needed to complete the bid invitation package.The bid invitation package shall include the Instructions to Bidders and the Equal Employment Opportunity Clause required by the Illinois Fair Employment Cownission that are included on the following pages. Memo information concerning the intended bid item, the date of publication, date of opening and account number to be charged shall be forwarded to the Village Manager and the Finance Director. 2. The Department Director shall deter a bid opening date. The bid open ng date must be at least ten (10) days after the published notification date, with forty-five (45) days as the maxirnuxn time. The Department Director shall be responsible for placing a legal notice concerning the bid in a local newspaper of general circulation at least ten (10) days prior to the bid opening. 3. Ile Department Director shall send bid invitations to all known responsible vendors on the bidder's list for the particular item as well as to any other prospective bidders. In the case where the bid package may be costly to reproduce,, the Village may assess a charge for the bid package. A copy of the bid documents shall be forwarded to the Finance Director. 4. All formal bid openings are to be conducted by the Village Manager, or his designee, on the scheduled bid opening date and time. The Depa nent Director should attend the bid opening. (Bids received by fax are not acceptable), 1. 5. Upon opening and reading the bids, the Department Director shall prepare a bid tabulation, and review the bids. The Department Director shall then forward his recommendation to the Village Manager for concurrence. 6. Upon concurrence of the bid recommendation by the Village Manager, the bid award recommendation shall be placed on the agenda of the next scheduled meding of the Village Board of Trustees for their consideration., 1 7. Following the awarding of a bid by the Village Board, the Dep4l rtment Director shall prepare and send a letter to the successful bidder notifying the bidder of the Village Board's approval of a bid. Letters should also be sent to the unsuccessful bidders informing them of the decision of the Village Board. The Department Director shall then prepare a purchase order and send it along with a copy of the award letter to the Finance Director. 11 App=Wix I I I 1XI V IR'" V a 0 t 11 Bids to be entitled to consideration must be made in accordance with the following instructions:,, reject any or all bids, or, any part thereof, or to accept L The Village of Mount Prospect reserves the right to re any bid or any part thereof, or to waive any information in any bid deemed to be in the best interest of the Village. 2. No bid may be withdrawn after the scheduled closing time for receipt of 'bids for at least. thirty (30) days. 3. Bids must be signed by an authorized official of the organization submitting the bid, and the name of the official and his tide typed below the signature. 4. The parts and materials bid must be of current date (latest model) and meet specifications. This provision excludes surplus, re -manufactured and used products except as an alternate bid or as specifically adentaified in a cover letter attached to the bid documents. 1 5. All equipment and material bid shall be in accordance with all applicable Federal, State and local laws, rules and regulations in effect at the time of bid. 6. Bids will be considered on equipment or material complying substantially with the specifications, provided each deviation is stated and the substitution is described, including technical data when applicable, in a letter attached to the bid. The Village of Mount Prospect reserves the right to determine whether such substitutions or deviations are within the intent of the specifications and will reasonably meet the service requirements of the using department. Brand names which may be mentioned in the specifications do not indicate a preference and are used only as a reference to the type and quality of materials or equipment desired. 70 The brand name and/or manufacturer of each item proposed must be clearly stated. Guarantee and/or warranty information must be included with this bid. 8. Unless otherwise specified, materials and equipment purchased will be inspected by the receiving department to determine whether such items meet the requirements contained in the bid specifications. When deemed necessary, samples of supplies or materials will be taken at random from goods received for submission to 0 a co lal laboratory, or, other appropriate inspection agency, far ysis and test as to whether the material conforms in all respects to the specifications. In cases where the commercial laboratory report indicates that the material does not meet the specifications, the expense of analysis is to be borne by the successful bidder and the order or balance thereof may be cancelled without penalty or premium to the Village. 9. Unless otherwise indicated, the bid price is to be FOB Mount Prospect, Illinois, with delivery as indicated on the purchase order. 10. All of the Municipal, County, and State of Illinois Sales Taxes and Federal Excise Taxes that are NOT applicable to sales made to the Village of Mount Prospect must be excluded from bid prices. 12 11. Prices shall be stated in units when applicable and quotation made on each item separately. In case of conflict, unit price shall govern. 12. Bidders must be sure to specify any terms which they wish to offer in the space provided. Cash discounts will be deducted from the base bid M- determining the low Bidder. 13. Time of delivery is a part of the consideration and must be stated in definite terms where indicated on the bid sheet. If delivery or performance is not made within the specified time, the Village of Mount Prospect reserves the right to cancel the order or any portion thereof without penalty or premium .to the Village. 14. T'he'Village, of''Mount Prospect, reservesthe, right to requ,tre the successful Bidder to fiumish a perf6rmance bond. If called for in the specificatw"ns',, saidbond shall be furnished, within seventy4vo (72) hours after notification of award in an amount not to exceed one hundred percent (100%) of the net bid price. 0 15. If required in the specifications, each Bidder must submit with his bid a certified check or bid bond in an amount up to ten percent (10%) of the total base bid, payable to the Village of Mount Prospect as a guarantee that the successful bidder will supply material and/or services as specified. The proceeds of any bid guarantee shall become the property of the Village if the successful Bidder within 30 days after opening of bids, withdraws his bid or if on notice of award refuses or is unable to comply with contract requirements. 16. In case of default by the Bidder, the Village of Mount Prospect may procure the, articles or services from other sources and may deduct from unpaid balance due the Bidder,, or may collect against the bond or surety for excess costs so paid, and the prices paid by the Village shall be considered the prevailing market price at the time such. purchase is made. 17. The Bidder shall hold the Village of Mount Prospect, its officers, agents and employees, harmless from liability of any nature or kind on account of use of any copyrighted or uncopyrighted composition, trade secrets, secret process, proprietary rights, patented or unpatented invention, article or appliance fin-nished or used under the bid specifications. a, 1 18. Successful Bidder is specifically denied the right of using m any form or medium the name of the Village' 0 of Mount Prospect for any advertising, promotion or reference unless express written permission is granted by the Village. 19. Successful Bidder agrees to comply with all laws, rules and regulations pertaining to Public Contracts including those adopted by the Illinois Fair Employment Practices Comnauission and Village 'of Mount Prospect (see attached). 20. Bidders will be required to comply with all applicable laws including those relating to the employment of labor and the payment of local prevailing wage rates. 21. The opaque envelope containing bid shall be marked plainly, "SEALED BID* - With MATERIAL OR SERVICE DESCRIPTION, bid call number, date and time of closing written thereon. 13 AppeMIX I EQUAL EMPLOYMENT OPPORTUNITY CLAUSE required by the Illinois Fair Employment Practices Commission as a material term of all public 41, contracts: REQUAL EMPLA)YMENT OPPORTUN`lTY8 In the event of 'the contractor's noncompliance with any provision of this Equal Employment Opportunity Clause, the Illinois Fair loyment Practices Act of the Fair Employment Practices Commission's Rules and Regulations for 'Public Contracts, the contractor may be declared nonraponsiible and therefore ineligible for future contractus or subcontracts with the State of Illinois or any of its political subdivisions or municipal corporations and the contract may be cancelled or avoided in whole or in pan, and such other sanctions or penalties may be imposed or remedies invoked as provided by statute or regulation. During the performance of this contract, the contractor agrees as follows: I That it will not diSCrMoina against any employee or applicant for employment because of race, color, religion, sex, national origin or ancestry; and further that it will examine all job xasificationsto determine if minority persons or women am underutilized and will take affirmative action to rectify any such underutilizationo 2. That, if it hires additional employees in order to perform this contract, or any portion hereof, it will determine the availability (in accordance with the Commission's, Rules and Regulations for Public Contracts) of minorities and women in the area(s) from which it may reasonably recruit and it will hire for each job classification for which employees are hired in such a way that minorities and won= are not underutilized. 3. That, in all solicitations or advenisements for employees placed by it or on its behalf, it will staw that all applicants will be afforded equal opportunity without diScruinination because of race, color, religion, sex, national origin or ancestry. 4. That it will send to each labor organization or representative of workers with which it has or is bound by a code ctive basrgaining or other agreement or understanding, a, notice advising such labor organization or representative of the mtractmir"soblipfionau the Minois Fair Employment Pmetices Act and the Commission's Rules and Regulations for Public —M& If any such udw 013002 or representative fails or refit to cooperate with the contractor in its efforts to comply with such Act and Rules and Regulations. the contractor will promptly so notify the Illinois Fair Employment Practices Commission and the contracting agency and will recruit employees from other sources when necessary to fulfill its obligations thereunder. A, 5. That it will submit reports ,pas required by the Illinois Fair loyment Practices Commission's Rules and Regulations for Public Contracts, furnish all relevant information as may from time to tinse be re- qu m__ - W__ by the Comm's =ia or the arnatrecting agency, and in all respects comply with the Illinois Fair Emcployment Practices Act and the Commission's Rules and Regulations for Public Contracts. 6. That it will permit access to all relevant books, records, accounts and work sites by personnel of the confronting agency and the Illinois Fair Employment Practices Commission for purposes of investigation to ascertain compliance with the Illinois Fair EmploymentPractices Act and the Commission's Rules and Regulations for Public Contracts. I "is 7. That it will include verbatim or by reference the provisions of owavass I through 7 of this clause in every performance subcontract an defined in Section 2.10(b) of the Commission's Rules and for Public Contracts so the such provisions will be binding A I I - A hs 1 0 5 0 6 and 7 in every supply subcontract upon every such subcontractor; and that it will also so include the provisions - %Pns of P - _ IL as defined in Section 2.10(s) of the Commission's Rules and Regulations for Public Conhvas so that such provisions will be binding upon every such subcontractor, in the same manner as with other provisions of this contract, the contractor will be liable for compli with applicable provisions of this clause by all its subcontractors; and further it will promptly notify the contracting agency and the Illinois Fair Employment Practices Commission in the event any subcontractor fags or rchwes to comply therewith. In addition, no contractior, will utilize any subcontractor declared by the Commission to be nonresponsibleand therefore ineligible for contracts or osbconhuftwith the State of Illinois or any of its political subdivisions or municipal corporations. With respect to the, two typm of subcontracts referred to under paragraph 7 of the Equal Employment Opportunity Clause d*vc, following is an excerpt of Section 2 of the FEPC's Rules and Regulations for Public Contracts: -ling, written or otherwise betwom a contractor and OSection 2.10. The term 'Subcontract" mews any agreement, arrangement or understanding, any person (in which the parties do not stand in the relationship of an employee and an employm): a. for the furnishing of supplies or services or for the use of red or perwaal property, including lease arrangements,, which in whole or in part, is utilized in the performance of any one or more contacts; or b. under which any portion of the contractor's obligation under one or more contracts is performed, undertaken or maimed." 14 Is Appendix I VILLAGE OF MOUNT PROSPECT BID RECOMMENDATION -- STANDARD MEMO FORMAT TO: Village- Manager FROM: Department Director DATE: SUBJECT: XYZ Program Bid Results ,nfg m, On June 15, 1994, at 10:00. am sealed bids were received for the XYZ Program. At this time, the sealed bids were publicly opened and read aloud. The XYZ Program involves the purchase of specific equipment to be used to improve Village property located in the downtown district. Ten contractors received invitational bids and advertising was placed in the local newspaper. a mm'mn A a o'f-B'J"k.Bg&ei T11ree contractors submitted bids: ABC Improvements, Village Builders, and Community Supplies. It was determined that of the seven contractors who did not submit bids, four could not meet the deadline and three were unable to provide the goods and services being requested. Bid tabulations are as follows: Bidder Eauln=, Village Builders $7,845.00 ABC Improvements 9A30*00, Community Supplies Eli KIM I recommend award of the contrad to Village Builders m an amount not to exceed $7,845.00. Village Builders has successfully performed work fbr us in the past. Plus, they have provided several satisfied municipal references for sirmflar work. Bludeet-AL11h.9r tn There is $10,000.00 allocated in this year's budget on page 175 in account number 01 -001 -00 -Ml for the XYZ Project. � 1 15 BED RECONMENDATION - STANDARD MIEMO FORMAT 1. When a memo is from an individual other than a department director, a director's recommendation is required. A signature line would read as follows: I concur with the above recommendation Name of Director 2. If an unusual number of contractors declines to bid, an explanation, if Imown, should be included. 3. For more complicated bids, a detailed table should be attached. 4. If the recommendation is not for the lowest bidder, an explanation must be provided. 10 5. If the amount of the bid exceeds the budget amount, the memo must outline that a limit will be imposed or whether there is a reason for exceeding a budgeted The undersigned hereby certifies that he is the Finance Director of the Village of Mount Prospect, a governmental unit of the State of Illinois, that he is authorized to execute this certificate that the article or articles specified m* purchase orders of this governmental unit are purchased from you for exclusive use of the said Village of Mount Prospect in connection with the operation of the said Village', of Mount Prospect. The Department of Revenue, State of Illinois, issued to the Village of Mount Prospect tax exemption identification number E2DJL-1475:M pursuant to letter dated January 1, 1990. It is understood that the exemption from tax in the case of sales of articles under this exemption certificate to a state, territory or political subdivision thereof, or the District of Columbia, is limited to the sale of articles purchased for their exclusive use, and it is, agreed that if articles purchased tax free under this exemptlion certificate, are used otherwise or are sold to employees or others, such fact will be reported by me to the manufacturer of the article or articles covered by this certificate. It is also understood that the fraudulent use of this certificate to secure exemption will subject the undersigned and all guilty parties to a fine of not more than: $10,000, or to imprisonment for not more than five years, or both, together with costs Of prosecution. Date 17 David C. Jepson, Finance Director I �4 MAYOR Ap ix 2 GERALD L FARLEY TRUSTEES GEORGE A. CLOWES TIMOTHY J. CORCORAN A RICHARD N. HENDRICKS PAUL WM. HOEFERT V111ages of Mount Prospect MICHAELE W,, SKOWRON IRVANA K. WILKS VILLA" MAMAM 100 South Emerson Street Mount Prospect, Illinois 60056 MICHAEL E. JANONIS VILLAGE CLERK CAROL A,, FIELDS Phone: 708 / 392-6000 Fax: 708 / 392-6022 TOO: 708 / 392-6064 The undersigned hereby certifies that he is the Finance Director of the Village of Mount Prospect, a governmental unit of the State of Illinois, that he is authorized to execute this certificate that the article or articles specified m* purchase orders of this governmental unit are purchased from you for exclusive use of the said Village of Mount Prospect in connection with the operation of the said Village', of Mount Prospect. The Department of Revenue, State of Illinois, issued to the Village of Mount Prospect tax exemption identification number E2DJL-1475:M pursuant to letter dated January 1, 1990. It is understood that the exemption from tax in the case of sales of articles under this exemption certificate to a state, territory or political subdivision thereof, or the District of Columbia, is limited to the sale of articles purchased for their exclusive use, and it is, agreed that if articles purchased tax free under this exemptlion certificate, are used otherwise or are sold to employees or others, such fact will be reported by me to the manufacturer of the article or articles covered by this certificate. It is also understood that the fraudulent use of this certificate to secure exemption will subject the undersigned and all guilty parties to a fine of not more than: $10,000, or to imprisonment for not more than five years, or both, together with costs Of prosecution. Date 17 David C. Jepson, Finance Director I .......... ......... Date Submitted By Authorized By 18 w",2/94 VILLAGE OF MOUNT PROSPECT AM=Wix 3 Conference/Seminar Attendance Request Employee & Department: Dates,of Conference: to Sponsoring Organization: Location: . ......... .. . ...... .... .................... Purpose: Estimated Cost Registration Fee: Lodging: Meal Expense (Per Diem): Bkfst @ $ 5.00 Lunch $10-00 Dinner @ $15,00 Meal Expense (Per Meal): Bkfst Lunch Dinner Transportation: Air Fare Private Car Miles at 29- Village Car Miscellaneous: Total Estimated Cost Advance Requested I .......... ......... Date Submitted By Authorized By 18 w",2/94 Employee & Department: Dates of Conference: Sponsoring Organization: Location: VILLAGE OF MOUNT PROSPECT Employee Expense Report Registration Fee: Lodging: Meal Expense (Per Diem): Bkfst @ $5.00 Lunch @ $10-00 Dinner @ $15.00 Meal Expense (Per Meal): Bkfst @ Lunch @ Dinner Transportation: Air Fare Private Car Miles at 29 0 Village Car Miscellaneous: Date Total Expense Advance Received Balance Due or <Refund> Submitted By Authorized By 19 sm M4 Appendix 4 VMLAGE OF MOUNT' PROSPECT BtMGLwr 11UNMRS Each' Department Director has the responsibility to maintain the level of spending in his/her department within the budget amounts established by the Village Board. However, if unforeseen but required needs result in expenditures .6 0 which will exceed the amounts rem g mb a particular budget account, the Department Director is required to submit a request for a Budget Transfer to the Village Mier. The Village Manager is authorized to wansfer budgeted amounts within a department or between depardments within a fund. However, any revisions that increase the total expenditures of any fund can only be accomplished .by a budget amendment approved by the Village Board. If an amount or amounts are to be transferred from one or more accounts to another account the Department Director must identify the accounts in the Budget Transfer request. If a budget amendment a required; justificlidon for the change requested must be provided, The budget transfer or amendment request must be approved by the Village Manager before the requested expenditure may be made,, 20 OR 4 - ARTICLE I Sec -A.103. Powers and Duties Appendix 5 H. To purchase all materials, supplies and equipment for ll are provided in the working budget; P Wed 'that he may negotiate and awaM contracts, fbr purchases of less than four thousand dollars rovt . I "ing, fbr bids, but 'for rch, ases of more than four thousand dollars ($4,000.00) without flM adverdsi 'PU I ($4,000.00) he shall only award a contract to the lowest qualified bidder pursuant to due advertisement for sealed bids in a newspaper published and having a general circulation within the. Village (which advertisement shall state that such contract shall be let to the lowest responsible bidder, that the right is reserved in the Village Board to reject all bids or waive bid technicalities and the place, time and date when sealed bids shall be opened; said date being not less than 7 days after publ ication of the advertisemeo,M rafter the successful bid proposal has been submitted to the Village Board for approvalS 1. Should such purchase be of an amount W excess of that provided in the working budget or should such low bidder fail to be the lowest responsible bidder, the VillageManager shall advise the Village Board of Trustees as to whether or not the contract offered is desirable or which of several contracts offered is most desirable for the Village. 2. In case of accidents or other circumstances creating an emergency, the Village Manager may award contracts, acquire services make purchases for the purpose of repairing domes caused by the said accident or meeting said public emergency; but he shall file promptly within fourteen (14) days with ccl the Village Board a certificate showing such emergency and the necessity of such action, together with an itemized account of all expenditures. (Ord. 3153, 10-20-81) 3. Nothing herein shall limit or prevent the Board of Trustees, upon its extraordinary vote as set forth in .0 10 subsection 2.20IC5 of this Code, from waiving the requirement of advertising for bids with respect to the purchase of materials, supplies and equipment or any work or other public iaAaprovement which is not to bepaid for W whole or in part by special assessment or special taxation, when in the opinion of said Trustees, there is a sole supplier, or a need for standardization of existing equipment, or the bidding procedure is impractical due to the nature of the equipment or work, the difficulty of developing specifications, or when time is of the essence. (Ord, 4549, 54-93) 21 0