07-13-2021 City Council Study Session Packet
City of Grand Island
Tuesday, July 13, 2021
Study Session Agenda
City Council:
Jason Conley
Michelle Fitzke
Bethany Guzinski
Chuck Haase
Maggie Mendoza
Vaughn Minton
Mitchell Nickerson
Mike Paulick
Justin Scott
Mark Stelk
Mayor:
Roger G. Steele
City Administrator:
Jerry Janulewicz
City Clerk:
RaNae Edwards
7:00 PM
Council Chambers - City Hall
100 East 1st Street, Grand Island, NE 68801
Grand Island Study Session - 7/13/2021 Page 1 / 19
City of Grand Island Tuesday, July 13, 2021
Call to Order
This is an open meeting of the Grand Island City Council. The City of Grand Island abides by the Open
Meetings Act in conducting business. A copy of the Open Meetings Act is displayed in the back of this room
as required by state law.
The City Council may vote to go into Closed Session on any agenda item as allowed by state law.
Invocation
Pledge of Allegiance
Roll Call
A - SUBMITTAL OF REQUESTS FOR FUTURE ITEMS
Individuals who have appropriate items for City Council consideration should complete the Request for
Future Agenda Items form located at the Information Booth. If the issue can be handled administratively
without Council action, notification will be provided. If the item is scheduled for a meeting or study
session, notification of the date will be given.
B - RESERVE TIME TO SPEAK ON AGENDA ITEMS
This is an opportunity for individuals wishing to provide input on any of tonight's agenda items to reserve
time to speak. Please come forward, state your name and address, and the Agenda topic on which you will
be speaking.
Grand Island Study Session - 7/13/2021 Page 2 / 19
City of Grand Island
Tuesday, July 13, 2021
Study Session
Item -1
Discussion Regarding Changes to Chapter 27 of the Grand Island
City Code Relative to Procurement
Staff Contact: Stacy Nonhof, Interim City Attorney
Grand Island Study Session - 7/13/2021 Page 3 / 19
Council Agenda Memo
From:Stacy R. Nonhof, Interim City Attorney
Meeting:July 13, 2021
Subject:Amend City Code Chapter 27 Purchasing
Presenter(s):Stacy R. Nonhof, Interim City Attorney
Background
Periodically it is a good idea to review City Code sections to make sure that they reflect
the state of the law and purchasing power in today’s world. The changes proposed to
Chapter 27 regarding purchasing are the result of review by the City Attorney’s Office
and the Finance Department. Once a draft document was created, all department directors
were given the chance to propose any changes or updates to Chapter 27.
Discussion
The purpose of this ordinance is to update Chapter 27 of the Grand Island City Code and
bring it into compliance with State Statute. Some of the major changes to Chapter 27 are:
27-4 – The bidder claiming confidential or proprietary information must provide
an explanation of that claim when making the claim.
27-7 – It updates the minimum amount of a contract that requires Council
approval to $30,000.00 and is in compliance with the amount set in state
purchasing statutes.
27-8 – Competitive Sealed Bidding will now need to be advertised for 15 days
instead of 7. This will be the same duration as Requests for Proposals and
Qualifications.
27-11 – Small Purchases will now be allowed up to the amount of $10,000.00
without a requirement for quotations. Currently, the amount for goods is
$2,500.00 and the amount for work requiring labor is $7,500.00 – this change
makes it a uniform amount across the board without the distinction of labor being
involved or not. Quotes will be required for purchases between $10,000 but equal
to or less than $30,000.00. Anything over $30,000 will require a public letting
that is approved by Council. Municipal electric utility enlargements or
improvements will require three quotes between the amounts of $10,000 and
$120,000. This amount is set by State Statute.
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27-12 – Sole Source Procurement is updated to only be a valid sole source for a
period of ten years. After ten years, the department will be required to re-solicit
bids and present another Sole Source designation to the Council.
27-13 – Emergency Procurements has been updated to reflect the language of
State Statute.
27-32 – Performance and Payment Bonds – the amount has been updated to
reflect the amount triggering the requirement under State Statute to contracts in
the amount of $10,000 or more for the erecting, furnishing, or repairing of any
public building, bridge, roadway, or other public structure or improvement.
27-34 – Fiscal Responsibility has been changed to reflect a more realistic number
requiring prior Council approval for a contract modification, change order, or
contract price adjustment from $300 to an amount of five percent or more than the
original contract amount.
27-62 Business Travel has been removed to make a requirement for a travel
policy manual that will be subject to approval by the Finance Director and City
Administrator. All travel will be in compliance with that manual.
Alternatives
It appears that the Council has the following alternatives concerning the issue at hand.
The Council may:
1.Move to approve
2.Refer the issue to a Committee
3.Postpone the issue to future date
4.Take no action on the issue
Recommendation
City Administration recommends that the Council approve Ordinance No. 9831.
Sample Motion
Move to approve Ordinance No. 9831.
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Approved as to Form¤ ___________
July 9, 2021 ¤ City Attorney
ORDINANCE NO. 9831
An ordinance to amend Chapter 27 of Grand Island City Code; to amend Sections 27-3
thru 27-5, 27-7 thru 27-13, 27-32, 27-34, 27-35, and 27-60 thru 27-64; to clarify and/or make
general corrections to various code sections, to repeal any ordinance or parts of ordinances in
conflict herewith; and to provide for publication and the effective date of this ordinance.
BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF
GRAND ISLAND, NEBRASKA:
SECTION 1. Sections 27-3 thru 27-5, 27-7 thru 27-13, 27-32, 27-34, 27-35, and
27-60 thru 27-64 of the Grand Island City Code is hereby amended to read as follows:
§27-3. Definitions
Architect, Engineer and Land Surveying Services. Those professional services within the
scope of the practice of architecture, professional engineering, or land surveying, as defined by
the laws of the State of Nebraska.
Blind Trust. An independently managed trust in which the employee-beneficiary has no
management rights and in which the employee beneficiary is not given notice of alterations in, or
other dispositions of, the property subject to the trust.
Brand Name or Equal Specification. A specification limited to one or more items by
manufacturers' names or catalogue numbers to describe the standard of quality, performance, and
other salient characteristics needed to meet City requirements, and which provides for the
submission of equivalent products.
Brand Name Specification. A specification limited to one or more items by
manufacturers' names or catalogue numbers.
Business. Any corporation, partnership, individual, sole proprietorship, joint stock
company, joint venture, or any other private legal entity.
Change Order. A written order signed and issued by the purchasing agent, directing the
contractor to make changes which the "Changes" clause of the contract authorizes the purchasing
agent to order without the consent of the contractor. Any written alteration in specifications,
delivery point, rate of delivery, period of performance, price, quantity, or other provisions of any
contract accomplished by mutual action of the parties to the contract.
Contract Modification (bilateral change). Any written alteration in specifications,
delivery point, rate of delivery, period of performance, price, quantity, or other provisions of any
contract accomplished by mutual action of the parties to the contract. A written order signed and
issued by the purchasing agent, directing the contractor to make changes which the "Changes"
clause of the contract authorizes the purchasing agent to order without the consent of the
contractor.
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ORDINANCE NO. 9831 (Cont.)
2
Confidential Information. Any information which is available to an employee only
because of the employee's status as an employee of the City and is not a matter of public
knowledge or available to the public on request.
Construction. The process of building, altering, repairing, improving, or demolishing any
public structure or building, or other public improvements of any kind to any public real
property. It does not include the routine operation, routine repair, or routine maintenance of
existing structures, buildings, or real property.
Contract. All types of City agreements, regardless of what they may be called, for the
procurement of supplies, services, or construction.
Contractor. Any person having a contract with the City or a using agency thereof.
Cost Analysis. The evaluation of cost data for the purpose of arriving at costs actually
incurred or estimates of costs to be incurred, prices to be paid, and costs to be reimbursed.
Cost Data. Factual information concerning the cost of labor, material, overhead, and
other cost elements which are expected to be incurred or which have been actually incurred by
the contractor in performing the contract.
Cost-Reimbursement Contract. A contract under which a contractor is reimbursed for
costs which are allowable and allocable in accordance with the contract terms and the provisions
of this chapter, and a fee or profit, if any.
Direct or Indirect Participation. Involvement through decision, approval, disapproval,
recommendation, preparation of any part of a purchase request, influencing the content of any
specification or procurement standard, rendering of advice, investigation, auditing, or in any
other advisory capacity.
Disadvantaged Business. A small business which is owned or controlled by a majority of
persons, not limited to members of minority groups, who have been deprived of the opportunity
to develop and maintain a competitive position in the economy because of social disadvantages.
Employee. An individual drawing a salary or wages from the City, whether elected or not;
any noncompensated individual performing personal services for the City, or any department,
agency, commission, council, board, or any other entity established by the executive or
legislative branch of the City; and any noncompensated individual serving as an elected official
of the City.
Financial Interest. (a) Ownership of any interest or involvement in any relationship from
which, or as a result of which, a person within the past year has received, or is presently or in the
future entitled to receive, more than $100 per year, or its equivalent; (b) ownership of 1% of any
property or business; or (c) holding a position in a business such as officer, director, trustee,
partner, employee, or the like, or holding any position of management.
Gratuity. A payment, loan, subscription, advance, deposit of money, service, or anything
of more than nominal value, present or promised, unless consideration of substantially equal or
greater value is received.
Immediate Family. A spouse, children, parents, brothers, and sisters.
Invitation for Bids. All documents, whether attached or incorporated by reference,
utilized for soliciting sealed bids.
Person. Any business, individual, union, committee, club, other organization, or group of
individuals.
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ORDINANCE NO. 9831 (Cont.)
3
Price Analysis. The evaluation of price data, without analysis of the separate cost
components and profit as in cost analysis, which may assist in arriving at prices to be paid and
costs to be reimbursed.
Pricing Data. Factual information concerning prices for items substantially similar to
those being procured. Prices in this definition refer to offered or proposed selling prices,
historical selling prices and current selling prices. The definition refers to data relevant to both
prime and subcontract prices.
Procurement. The buying, purchasing, renting, leasing, or otherwise acquiring of any
supplies, services, or construction. It also includes all functions that pertain to the obtaining of
any supply, service, or construction, including description of requirements, selection, and
solicitation of sources, preparation and award of contract, and all phases of contract
administration.
Public Agency. A public entity subject to or created by the City.
Qualified Products List. An approved list of supplies, services, or construction items
described by model or catalogue numbers, which, prior to competitive solicitation, the City has
determined will meet the applicable specification requirements.
Request for Proposals. A document, whether attached or incorporated by reference,
utilized for soliciting proposals.
Responsible Bidder or Offeror. A person who has the capability in all respects to perform
fully the contract requirements, and the tenacity, perseverance, experience, integrity, reliability,
capacity, facilities, equipment, and credit which will assure good faith performance.
Responsive Bidder. A person who has submitted a bid which conforms in all material
respects to the requirements set forth in the invitation for bids.
Services. The furnishing of labor, time, or effort by a contractor, not involving the
delivery of a specific end product other than reports which are merely incidental to the required
performance. The term shall not include employment agreements or collective bargaining
agreements.
Small Business. A United States business which is independently owned and which is not
dominant in its field of operation or an affiliate or subsidiary of a business dominant in its field
of operation.
Specification. Any description of the physical or functional characteristics or of the
nature of a supply, service, or construction item. It may include a description of a requirement
for inspecting, testing, or preparing a supply, service, or construction item for delivery.
Supplies. All property, including but not limited to equipment, materials, printing,
insurance, and leases of real property, excluding land or a permanent interest in land.
Using Agency. Any department, commission, board, or public agency requiring supplies,
services, or construction procured pursuant to this chapter.
§27-4. Public Access To Information
Procurement information shall be a public record to the extent provided in Neb. R.R.S.
§84-712 to §84-712.09, as amended, and shall be available to the public as provided in such
statutes. Any material marked as confidential, proprietary and/or as a trade secret will only be
withheld pursuant to these statutes if the bidder includes an explanation of why this information
should be withheld.
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ORDINANCE NO. 9831 (Cont.)
4
§27-5. Purchasing Agent
There is hereby created an Office of the Purchasing Agent, headed by the Chief
Purchasing Agent. The Chief Purchasing Agent shall be a person with demonstrated executive
and organizational ability with knowledge of public procurement law and contracts.
The City Attorney, or their designee, shall perform the duties of Purchasing Agent during
any period that such office shall be vacant. The Purchasing Agent may establish rules and
procedures regarding purchases, purchase orders and use of City credit cards.
§27-7. Delegation To Other Officials
With the approval of the City Council and the Mayor, the Purchasing Agent may delegate
authority to purchase certain supplies, services, or construction items to other City officials, if
such delegation is deemed necessary for the effective procurement of those items. Procurement
authority with respect to certain supplies, services, or construction may be delegated to other
City officials by the Mayor with the approval of the City Council, when such delegation is
deemed necessary for the effective procurement of these supplies, services, or construction.
Procurement authority with respect to purchases of materials, supplies, equipment, services and
professional services under §27-11 is delegated to the department directors. City Council
approval shall be required for all contracts for the purchase of materials, supplies, equipment,
services and professional services of more than $30,000.00.
§27-8. Competitive Sealed Bidding
Conditions for Use. All contracts of the City shall be awarded by competitive sealed
bidding Except as otherwise provided in §27-9 (Competitive Sealed Proposals), §27-10
(Designated Professional Services), §27-11 (Small Purchases), §27-12 (Sole Source
Procurement), §27-13 (Emergency Procurements), and §27-35 (Architects, Engineers,
Surveyors) of this chapter, all contracts of the City shall be awarded by competitive sealed
bidding.
Invitation for Bids. An invitation for bids shall be issued and shall include specifications,
and all contractual terms and conditions applicable to the procurement. Invitations for bids on
public works contracts shall require a statement of compliance with fair labor standards as
required by Neb. R.R.S. 73-102.
Public Notice. Adequate Public notice of the invitation for bids shall be given a
reasonable time, not less than seven (7) fifteen (15) calendar days prior to the date set forth
therein for the opening of bids. Such notice must be posted on the City’s website under the
Business tab, specifically the bids and request for proposals sections. Such notice may shall also
include publication in a newspaper of general circulation a reasonable time no less than fifteen
(15) calendar days prior to bid opening. The public notice shall state the place, date, and time of
bid opening.
Bid Opening. Bids shall be opened publicly in the presence of one or more witnesses at
the time and place designated in the invitation for bids. The amount of each bid, and such other
relevant information as the purchasing agent deems appropriate, together with the name of each
bidder shall be recorded; the record and each bid shall be open to public inspection in accordance
with §27-4 (Public Access to Information).
Bid Acceptance and Bid Evaluation. Bids shall be unconditionally accepted without
alteration or correction, except as authorized in this chapter. Bids shall be evaluated based on the
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ORDINANCE NO. 9831 (Cont.)
5
requirements set forth in the invitation for bids, which may include criteria to determine
acceptability such as inspection, testing, quality, workmanship, delivery, and suitability for a
particular purpose. Those criteria that will affect the bid price and be considered in evaluation for
award shall be objectively measurable, such as discounts, transportation costs, and total or life
cycle costs. The invitation for bids shall set forth the evaluation criteria to be used. No criteria
may be used in bid evaluation that are not set forth in the invitation for bids.
Correction or Withdrawal of Bids; Cancellation of Awards. Correction or withdrawal of
inadvertently erroneous bids before or after bid opening, or cancellation of awards or contracts
based on such bid mistakes, may be permitted where appropriate. Mistakes discovered before bid
opening may be modified or withdrawn by written or telegraphic notice received in the office
designated in the invitation for bids prior to the time set for bid opening. After bid opening,
corrections in bids shall be permitted only to the extent that the bidder can show by clear and
convincing evidence that a mistake of a nonjudgmental character was made, the nature of the
mistake, and the bid price actually intended. After bid opening, no changes in bid prices or other
provisions of bids prejudicial to the interest of the City or fair competition shall be permitted. In
lieu of bid correction, a low bidder alleging a material mistake of fact may be permitted to
withdraw its bid if:
(A) The mistake is clearly evident on the face of the bid document but the intended correct
bid is not similarly evident; or
(B) The bidder submits evidence which clearly and convincingly demonstrates that a
mistake was made. All decisions to permit the correction or withdrawal of bids, or to cancel
awards or contracts based on bid mistakes, shall be supported by a written determination
made by the purchasing agent.
Award. The contract shall be awarded with reasonable promptness by appropriate written
notice to the lowest responsible and responsive bidder whose bid meets the requirements and
criteria set forth in the invitation for bids, subject to the requirements of Neb. R.R.S. 73-101.01
for resident bidder preference. In the event the low responsive and responsible bid for a
construction project exceeds available funds as certified by the city treasurer, and such bid does
not exceed such funds by more than five percent, the purchasing agent is authorized, when time
or economic considerations preclude resolicitation of work of a reduced scope, to negotiate an
adjustment of the bid price with the low responsive and responsible bidder, in order to bring the
bid within the amount of available funds. Negotiated adjustments shall be based upon
eliminating independent deductive items specified in the invitation for bids or upon adjustments
to unit prices or project prices.
Multi-Step Sealed Bidding. When it is considered impractical to prepare initially a
purchase description to support an award based on price, an invitation for bids may be issued
requesting the submission of unpriced offers to be followed by an invitation for bids limited to
those bidders whose offers have been determined to be technically acceptable under the criteria
set forth in the first solicitation.
Local Bidder Preference. In case of tied low bids, all other things being equal, preference
shall be given in the following order:
(A) To those bidders who manufacture their products within the limits of the City of Grand
Island;
(B) To those bidders who manufacture their products within the limits of the County of Hall;
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ORDINANCE NO. 9831 (Cont.)
6
(C) To those bidders who package, process, or through some other substantial operation
have employees and facilities for these purposes in the City of Grand Island;
(D) To those bidders who package, process, or through some other substantial operation
have employees and facilities for these purposes in the County of Hall;
(E) To those bidders who maintain a bona fide business office in the City of Grand Island,
whose products may be made outside the confines of the County of Hall;
(F) To those bidders who maintain a bona fide business office in the County of Hall, whose
products may be made outside of the confines of the County of Hall;
(G) To those bidders whose commodities are manufactured, mined, produced, or grown
within the State of Nebraska, and to all firms, corporations, or individuals doing business as
Nebraska firms, corporations, or individuals when quality is equal or better and delivered
price is the same or less than the other bids received;
(H) To those bidders whose commodities are manufactured, mined, produced, or grown
within the United States of America, and to all firms, corporations, or individuals doing
business as firms registered in states other than Nebraska, when quality is equal or better and
delivered price is the same or less than the other bids received.
§27-9. Competitive Sealed Proposals
Conditions for Use. When the purchasing agent determines in writing that the use of
competitive sealed bidding is either not practicable or not advantageous to the City, a contract
may be entered into by use of the competitive sealed proposals method.
Request for Proposals. Proposals shall be solicited through a request for proposals.
Public Notice. Adequate Public notice of the request for proposals shall be given in the
same manner as provided in §27-8 (Competitive Sealed Bidding); provided, the minimum time
shall be fifteen (15) calendar days.
Receipt of Proposals. No proposals shall be handled so as to permit disclosure of the
identity of any offeror or the contents of any proposal during the process of negotiation including
meetings and interviews with any of the offerors. The register of proposals containing the name
and address of the offerors shall be open for public inspection. All proposals shall be open for
public inspection after the award of the contract.
Evaluation Factors. The request for proposals shall state the relative importance of price
and other evaluation factors.
Discussion with Responsible Offerors and Revisions to Proposals. As provided in the
request for proposals, discussions may be conducted with responsible offerors who submit
proposals determined to be reasonably susceptible of being selected for award for the purpose of
clarification to assure full understanding of, and conformance to, the solicitation requirements.
Offerors shall be accorded fair and equal treatment with respect to any opportunity for discussion
and revision of proposals and such revisions may be permitted after submissions and prior to
award for the purpose of obtaining best and final offers. In conducting discussion, there shall be
no disclosure of the identity of competing offerors or of any information derived from proposals
submitted by competing offerors.
Award. Award shall be made to the responsible offeror whose proposal is determined in
writing to be the most advantageous to the City, taking into consideration price and the
evaluation factors set forth in the request for proposals. No other factors or criteria shall be used
in the evaluation. The contract file shall contain the basis on which the award is made.
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ORDINANCE NO. 9831 (Cont.)
7
§27-10. Designated Professional Services
Authority. For the purpose of procuring the services of accountants, clergy, physicians,
lawyers, or dentists, as defined by the laws of the State of Nebraska, any using agency requiring
such services may procure them on its own behalf, in accordance with the selection procedures
specified in this section. A using agency procuring such services shall consult with the
purchasing agent. No contract for the services of legal counsel may be awarded without the
approval of the city council.
Selection Procedure:
(A) Conditions for Use. Except as provided under §27-12 (Sole Source Procurement) or
§27-13 (Emergency Procurements), the professional services designated in this section shall be
procured in accordance with this section.
(B) Statement of Qualifications. Persons engaged in providing the designated types of
professional services may submit statements of qualifications and expressions of interest in
providing such professional services. A using agency using such professional services may
specify a uniform format for statements of qualifications. Persons may amend these statements at
any time by filing a new statement.
(C) Public Announcement and Form of Request for Proposals. Adequate public notice of
the need for such services shall be given by the using agency requiring the services through a
request for proposals. Public notice of the request for proposals shall be given in the same
manner as provided in §27-8 (Competitive Sealed Bidding). Such notice may include publication
in a newspaper of general circulation not less than seven (7) days prior to the final date for
receipt of proposals. The request for proposals shall describe the services required, list the types
of information and data required of each offeror, and state the relative importance of particular
qualifications.
(D) Discussions. The head of a using agency procuring the required professional services
or a designee of such officer may conduct discussions with any offeror who has submitted a
proposal to determine such offeror's qualifications for further consideration. Discussions shall
not disclose any information derived from proposals submitted by other offerors.
(E) Award. Award shall be made to the offeror determined in writing by the head of the
using agency procuring the required professional services or a designee of such officer to be best
qualified based on the evaluation factors set forth in the request for proposals, and negotiation of
compensation determined to be fair and reasonable. If compensation cannot be agreed upon with
the best qualified offeror, then negotiations will be formally terminated with the selected offeror.
If proposals were submitted by one or more other offerors determined to be qualified,
negotiations may be conducted with such other offeror or offerors, in the order of their respective
qualification ranking, and the contract may be awarded to the offeror then ranked best qualified
if the amount of compensation is determined to be fair and reasonable.
§27-11. Small Purchases
General. The Purchasing Agent shall adopt operational procedures for making small
purchases of materials, supplies, equipment, services or labor in the amount of $10,000 or less.
Such operational procedures shall provide for obtaining adequate and reasonable competition for
the supply, service, or construction being purchased. Purchases shall not be artificially divided
so as to constitute a purchase by quotation or general purchase under this section.
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ORDINANCE NO. 9831 (Cont.)
8
General. Any contract not exceeding $20,000, or in the case of utility power plant fuel
contracts, any contract not exceeding $40,000, or for the purchase of equipment used for such
enlargement or improvement of the electric system, any contract not exceeding $40,000, may be
made in accordance with the purchase by quotation and small purchase procedures authorized in
this section. Contract requirements shall not be artificially divided so as to constitute a purchase
by quotation or a small purchase under this section.
Public Works General Improvement Projects. In any contract not exceeding $20,000 for
enlargement or general improvements, such as water extensions, sewers, public heating systems,
bridges, work on streets, or any other work or improvement when the cost of such enlargement
or improvement is assessed to the property, no less than three businesses shall be solicited to
submit quotations. Award shall be made to the business offering the lowest acceptable
quotation. The names of businesses submitting quotations, and the date and amount of each
quotation shall be recorded and maintained as a public record.
Utility Power Plant Fuel Contracts. In all purchases of utility power plant fuel not
exceeding $40,000 per contract, no less than three businesses shall be solicited to submit
quotations. Award shall be made to the business offering the lowest acceptable quotation. The
names of businesses submitting quotations and the date and amount of each quotation shall be
recorded and maintained as a public record.
Municipal Electric Utility Enlargement or Improvement. In any contract by the
municipal electric utility for the enlargement or improvement of the electric system or for the
purchase of equipment used for such enlargement or improvement, when said contract does not
exceed $40120,000, no less than three businesses shall be solicited to submit quotations. Award
shall be made to the business offering the lowest acceptable quotation. The names of businesses
submitting quotations and the date and amount of each quotation shall be recorded and
maintained as a public record.
Purchases by Quotation. Insofar as it is practical for materials, supplies, equipment and
services or labor purchases in excess of $2,500 10,000 but equal to or less than $30,000, and
services and services/materials purchases in excess of $7,510,000, no less than three (3)
businesses shall be solicited to submit quotations. For contracts by the municipal electric utility
for the enlargement or improvement of the electric system or for the purchase of equipment used
for such enlargement or improvement, the amount for three (3) quotes shall be between $10,000
and $120,000. Award shall be made to the business offering the lowest acceptable quotation.
The names of the businesses submitting quotations, and the date and amount of each quotation,
shall be recorded and maintained as a public record. Purchase requirements shall not be
artificially divided so as to constitute a purchase by quotation or general purchase under this
section.
Small Purchases. The purchasing agent shall adopt operational procedures for making
small purchases of materials, supplies and equipment, in an amount of $2,500 or less, and for
making purchases of services and labor, including materials in an amount of $7,50010,000 or
less. Such operational procedures shall provide for obtaining adequate and reasonable
competition for the supply, service, or construction being purchased. Further, such operational
procedures shall require the preparation and maintenance of written records adequate to
document the competition obtained, properly account for the funds expended, and facilitate an
audit of the small purchase made.
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ORDINANCE NO. 9831 (Cont.)
9
§27-12. Sole Source Procurement
A contract may be awarded without competition when after advertising for bids the city
council determines that there is only one source for the required supply, service, or construction.
The purchasing agent shall conduct negotiations, as appropriate, as to price, delivery, and terms.
A record of sole source procurements shall be maintained as a public record and shall list each
contractor's name, the amount and type of each contract, a listing of the items procured under
each contract, and the identification number of each contract file. Such sole source designation
shall only be valid for ten (10) years. After ten (10) years, the using department shall resolicit
bids for said item(s).
§27-13. Emergency Procurements
Notwithstanding any of the provisions of this chapter, the city council may as authorized
by State Statutes make or authorize the Purchasing Agent or others to make emergency
procurements of supplies, services, or construction when there exists a threat from infectious or
contagious diseases, destructive windstorms, floods, snow, war, or an exigency or pressing
necessity or unforeseen need calling for immediate action or remedy to prevent a serious loss of,
or serious injury or damage to life, public health, welfare, or safety, endangering property, or
cause disruption of public utility services; provided, that such emergency procurements shall be
made with such competition as is practicable under the circumstances. A written determination
of the basis for the emergency and for the selection of the particular contractor shall be included
in the contract file. As soon as practicable, a record of each emergency procurement shall be
made and shall set forth the contractor's name, the amount and type of the contract, a listing of
the items procured under the contract, and the identification number of the contract file. A copy
of the contract and department justification of the emergency shall be provided to the Purchasing
Agent within three (3) business days after the contract approval. A copy of the justification shall
be kept with the contract in the contract file.
§27-32. Performance And Payment Bonds
When Required; Amounts. When a construction contract is awarded in excess of
$2510,000, for the erecting, furnishing, or repairing of any public building, bridge, roadway, or
other public structure or improvement, the following bonds or security shall be delivered to the
City and shall become binding on the parties upon the execution of the contract:
(A) A performance bond satisfactory to the City, executed by a surety company authorized
to do business in the State of Nebraska or otherwise secured in a manner satisfactory to the
City, in an amount equal to 100% of the price specified in the contract; and
(B) A payment bond satisfactory to the City, executed by a surety company authorized to do
business in the State of Nebraska or otherwise secured in a manner satisfactory to the City,
for the protection of all persons supplying labor and material to the contractor or its
subcontractors for the performance of the work provided for in the contract. The bond shall
be in an amount equal to 100% of the price specified in the contract.
Reduction of Bond Amounts. After ten (10) days written notice to the Mayor and City
Council, the purchasing agent is authorized to reduce the amount of performance and payment
bonds to 50% of the contract price for each bond when a written determination is made that it is
in the best interests of the City to do so.
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ORDINANCE NO. 9831 (Cont.)
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Authority to Require Additional Bonds. Nothing in this section shall be construed to limit
the authority of the City to require a performance bond or other security in addition to those
bonds, or in circumstances other than specified in this section.
Suits on Payment Bonds; Right to Institute. Unless otherwise authorized by law, any
person who has furnished labor or material to the contractor or subcontractors for the work
provided in the contract, for which a payment bond is furnished under this section, and who has
not been paid in full within 90 days from the date on which that person performed the last of the
labor or supplied the material, shall have the right to sue on the payment bond for any amount
unpaid at the time the suit is instituted and to prosecute the action for the amount due that person.
However, any person having a contract with a subcontractor of the contractor, but no express or
implied contract with the contractor furnishing the payment bond, shall have a right of action
upon the payment bond upon giving written notice to the contractor within 90 days from the date
on which that person performed the last of the labor or supplied the material. That person shall
state in the notice the amount claimed and the name of the party to whom the material was
supplied or for whom the labor was performed. The notice shall be served personally or by
registered or certified mail, postage prepaid, in an envelope addressed to the contractor at any
place the contractor maintains an office or conducts business.
Suits on Payment Bonds; Where and When Brought. Unless otherwise authorized by law,
every suit instituted upon a payment bond shall be brought in a court of competent jurisdiction
for the county or district in which the construction contract was to be performed.
§27-34. Fiscal Responsibility
Every contract modification, change order, or contract price adjustment under a
construction contract with the City in excess of $300in an amount less than five percent (5%) of
the original contract amount may be approved by the department director and Purchasing Agent.
Every contract modification, change order, or contract price adjustment in an amount of five
percent (5%) or more than the original contract amount is shall be subject to prior written
certification by the head of the department responsible for the project or the contract, or other
official responsible for monitoring and reporting upon the status of the costs of the total project
budget or contract budget, as to the effect of the contract modification, change order, or
adjustment in contract price on the total project budget or the total contract budget. In the event
that the certification discloses a resulting increase in the total project budget and/or the total
contract budget, the purchasing agent shall not execute or make such contract modification,
change order, or adjustment in contract price unless sufficient funds have been appropriated
therefor, or the scope of the project or contract is adjusted so as to permit the degree of
completion that is feasible within the total project budget and/or total contract budget as it
existed prior to the contract modification, change order, or adjustment in contract price under
consideration; provided, however, that with respect to the validity, as to the contractor, of any
executed contract modification, change order, or adjustment in contract price which the
contractor has reasonably relied upon, it shall be presumed that there has been compliance with
the provisions of this section.
Not withstanding the above, every contract modification, change order, or contract price
adjustment in excess of $10,000 more than 5% of the contract price shall require prior approval
of the City Council unless the delay necessitated by such prior approval would: endanger public
health, welfare, or safety; endanger property; cause or prolong disruption of public utility
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ORDINANCE NO. 9831 (Cont.)
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service, or result in increased costs to the City. If prior council approval is not obtained, such
approval shall be requested within thirty (30) days of approval by the department director.
§27-35. Architects; Engineers; Surveyors
Public Announcement. It is the policy of the City to announce publicly all requirements
for architects, engineers, and land surveying services and to negotiate such contracts on the basis
of demonstrated competence and qualifications at fair and reasonable prices. In the procurement
of architect, engineer, and land surveying services, the purchasing agent shall request firms to
submit a statement of qualifications and performance data.
Selection Process. A selection committee shall be appointed by the director of the
department requesting such services. composed of the purchasing agent, the director of public
works and the head of a using agency in need of the architect, engineer, or land surveying
services The selection committee shall conduct discussions with no less than three firms
regarding the proposed contract and the relative utility of alternative methods of approach for
furnishing the required services and shall select from among them no less than three of the firms
deemed most qualified to provide the required services. The selection shall be made in order of
preference, based on criteria established and published by the selection committee.
Negotiation. The purchasing agent shall negotiate a contract with the firm considered to
be the most qualified for architect, engineer, or land surveying services at compensation which
the purchasing agent determines in writing to be fair and reasonable to the City. In making this
decision, the purchasing agent shall take into account the estimated value, the scope, the
complexity, and the professional nature of the services to be rendered. Should the purchasing
agent be unable to negotiate a satisfactory contract with the firm considered to be the most
qualified at a price the purchasing agent determines to be fair and reasonable to the City,
negotiations with that firm shall be formally terminated. The purchasing agent shall then
undertake negotiations with the second most qualified firm. Failing accord with the second most
qualified firm, the purchasing agent shall formally terminate negotiations. The purchasing agent
shall then undertake negotiations with the third most qualified firm. Should the purchasing agent
be unable to negotiate a contract at a fair and reasonable price with any of the selected firms, the
selection committee shall select additional firms in order of their competence and qualifications,
and the purchasing agent shall continue negotiations in accordance with this section until an
agreement is reached.
§27-60. Authorized Expenditures
The mayor and city council shall be authorized to approve the expenditure of funds in
accordance with the Local Government Miscellaneous Expenditure Act, subject to the following:
(A) Authorized expenses may include:
(i) Registration costs, tuition costs, fees, or charges;
(ii) Mileage at the then current rate allowed by Neb. R.R.S. §81-1176, or actual travel
expense if travel is by commercial or charter means. When travel mode is optional, the lower
of the reimbursable cost is authorized; and
(iii) Meals and incidental (M&I) expense at the then current rate of the applicable federal
(GSA) per diem for M&I when searching for the specific Primary Destination; and
(iv) When travel is a partial day as defined in the City’s Travel Policy Manual, the federal
per diem rate for meals will apply at the rate of 20% for breakfast, 30% for lunch and 50%
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ORDINANCE NO. 9831 (Cont.)
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for supper. Departures must occur prior to 6:00 a.m. for breakfast and return must be after
8:00 p.m. for supper; and
(v)Lodging at a rate not exceeding the then current applicable federal per diem rate unless
lodging is at a location hosting the function in which case the actual lodging rate is allowed
but no additional transportation costs shall be paid for commuting during the lodging stay.
(B) Authorized expenditures shall not include expenditures for meals of city council members
provided while attending a public meeting of the city council unless such meeting is a joint
meeting with one or more other governing bodies.
(C) Authorized expenditures shall not include expenditures for any expenses incurred by a
spouse of an elected or appointed official, employee, or volunteer unless the spouse is also an
elected or appointed official, employee, or volunteer of the City.
§27-61. Beverages; Service Recognition
The expenditure of public funds is hereby authorized for the following purposes:
(A) Nonalcoholic beverages provided to individuals attending public meetings of the city
council.
(B) Nonalcoholic beverages and meals:
(i) Provided for any individuals while performing or immediately after performing relief,
assistance, or support activities in emergency situations, including but not limited to, tornado,
severe storm, fire or accident;
(ii) Provided for any volunteers during or immediately following their participation in any
activity approved by the city council, including but not limited to, mowing parks, picking up
litter, removing graffiti, or snow removal;
(iii) Provided at one recognition dinner each year held for elected and appointed officials,
employees, or volunteers. The maximum cost per person for such dinner shall be nineteen
dollars ($19.00). The annual recognition dinner may be held separately for employees of
each department or separately for volunteers, or any of them in combination.
(C) Upon retirement, plaques, certificates of achievement, or items of value (does not include
gift cards) may be awarded to elected or appointed officials, employees, or volunteers, including
persons serving on local government boards or commissions, subject to the following dollar limit
on value:
Volunteer Service $50.00
Board, Commission, Council Service $100.00
Award Ceremony/Farewell TributeParty $150.00
1 year employment 0.00 plus service pin
5 years employment 0.00 plus service pin/clip
10 years employment 50.00 plus service pin
15 years employment 75.00 plus service pin
20 years employment 100.00 plus service pin
25 years employment 125.00 plus service pin
30 years employment 150.00
35 or more years employment 175.00
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ORDINANCE NO. 9831 (Cont.)
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§27-62. Business Travel
The following procedures shall be used for business travel:
(A) Transportation Method
I. When travel is by air, advance ticketing by purchase order will be utilized whenever
possible to obtain the lowest available coach fare.
II. All refunds, travel coupons, and other promotions in connection with business travel
shall be returned to the City.
III. When ground travel is required, City vehicles shall be used whenever possible.
(B) Lodging
I. Reimbursement for non-commercial lodging is not permitted.
II. When personnel are accompanied by non-City personnel, only the costs attributed to
the City personnel are reimbursable.
(C) Expenses
I. The following expenses are reimbursable upon affidavit of expenditure and receipts
are not required: parking fees; taxi and bus fares; and highway tolls.
II. The following expenses are reimbursable upon submission of paid receipts:
(a) registration, tuition, and fees for official functions related to the travel;
(b) supplies or equipment required for travel or training;
(c) rental cars; and
(d) traveler's checks fees.
III. The following expenses are not reimbursable:
(a) entertainment, including television rentals;
(b) personal expenses, e.g. hygiene items, magazines;
(c) travel insurance; and
(d) alcoholic beverages.
(D) Travel Advances. Travel advances are not authorized, except under special circumstances
with written prior approval of the finance director. The use of credit cards and advance purchase
order payment of lodging and transportation expenses are encouraged.
(E) Expense Claims. Personnel on authorized travel must submit expense claims to the Finance
Department immediately upon return, but not later than four (4) work days after return to duty.
All receipts, unexpended City funds and funds due the City, shall be returned at that time. All
expenses (including prepaid expenses) shall be summarized and accounted for.
Travel for business shall be in accordance with the Travel Policy Manual as approved by
the City Administrator and Finance Director.
§27-63. Nebraska State Contract List
City departments are not required to advertise for bids nor request quotes when
purchasing items from the Nebraska State Contract list, as developed by the Nebraska
Department of Administrative Services Materials Division, as all statutory bidding requirements
have been met in approving this list.
§27-64. Cooperative Purchasing Agreements
City departments will be allowed to use local, state, national Cooperative Purchasing
Agreements, or cooperative purchase agreements with governmental entities whose procurement
policies and procedures meet or exceed those applicable to the City.
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ORDINANCE NO. 9831 (Cont.)
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The Chief Purchasing Agent shall review all agreements to determine that they meet
statutory bidding requirements before approval by the City Council.
The City Council shall approve all said agreements prior to use.
Use of approved Cooperative Purchasing will preclude the requirement of advertising for
bids or solicitation of quotes.
SECTION 2. Any ordinance or parts of ordinances in conflict herewith be, and
hereby are, repealed.
SECTION 3. This ordinance shall be in force and take effect from and after its
passage and publication, within fifteen days in one issue of the Grand Island Independent as
provided by law.
Enacted: ______________.
____________________________________
Roger G. Steele, Mayor
Attest:
______________________________
RaNae Edwards, City Clerk
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