HomeMy WebLinkAboutORDINANCE 0872-19830
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lotmient ed I►y s Adm i rwO I -sit rots
I I Y (IF Kf NA I
ORDINANCE N.I. 872-03
AN 01101 NANCF: W_ I IIF COUNC I I_ (If I HF: C I 1 Y (If' KU NA I , At_ V;KA,
AMU NOING KMC 7.15.050(is)( 1 ) INCHFA!)ING 1HF F XFMNIION F II(IM 1111-
COMHFII IIVF HInnlNG F►ROCfS5 FOR PURCIIAW 5 I(I $6, WIO.
WHEftFAS, the City of Kenn Municrpal Corte vurront I provI(fell for
fill exempt lon from the compotitivo bidding procear► when purchooin(l
nupplloo, materials), equipment, or contractual oorviceo whree
coot Moon flat oxcood $ 3, 500 111 a a f r)(I I e t ranear, t i on, and
WHEREAS, the City sidminfet rat ion bollevea that thin exempt ton
ohould apply to hi(lhor vnlu(.o of purchaaou bsyeauoos
1) ►ignlfieant coat afivtnge are not Iikely to he achieved
by biddintt purchanou of $3, 501 to $6, 500,
2) Adminiat rat No t Ime In proparat son of bid apeclfscat loll()
in approximately the name for all valuoa of purchanon, and
the coot in t ime In Inno l ikely to reu(rlt in if corroupondsnri
bonofit for purcho(soa under $6,500,
3) Proapoet ivo bld(foro moat devote t Imo to reupond to bid
opocilIcationa, and they are nometimeu reluctant to (ia no
for purchanoo up to $6, y00, arid
NOW, THERE FORE, RE I T ORDAINED BY 11IE COIINCIL OF 11117 CITY Of'
KFNAI, Al.ASKA, that s
Goetion 1s That KMC 7.15.0511(a)(I) be amended an follawns
(a)(1) oupplion I moterlala, equipment, or vontraciursl
norvIcoo whoop coat doeo not exceed $6,500 ($3,5OOJ In if
ninglo t ranaact 3ors;
PARSED HY THE COUNCIL OF THE CITY OF LAIA94�A, I.hio 6th day
of .7uly, 1903.
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Flrat fitjadJnt}s ()fine 1'3, 1yti3
"►(ycond Fteadin►Is July 6, 19113
F f'fucf i va not e s Mill fin 1 6, 19113
ham.
CITY OF KENAI
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MEMO TO: City Manager
PROM: Charl.en A. Buo,in
SUBJECT: Bidding Requirement - City Purchases
DACE: May 19, 1983
Several Department Reads have expressed that they believe
the bidding limit of $3,500 that in now in effect is too low.
That is, a higher figure should be not that would allow the
City to purchase more Items without asking for formal bids.
Generally, I think their arguments have much merit. We
have to request sealed bids on items (or repairs or services)
that cost as little as $3,501, 'Chin often results in little
more than wasted tirne and additional paperwork. I believe
there are many cases where Lite bidding process at those low
price levels does not provide any better prices than simple
negotiation.
i contacted four other cities, and found that our policy
was the most restrictive with regard to the bidding
requirement. Of the three cities I contacted that are about
the same sine as Kenai, only one has formal bidding
requirements for non -capital project purchases (at a 05,000
level). Tito other two have no requirements in their city
codes. One of those cities does bid in many canon anyway an
e "standard procedure", the other doesn't bid, even on such
items as road graders and fire engines.
Anchorage was thn 4th city I called, and they bid on items
costing over $25,000.
I suggest that we amend KMC 7.15.050 (a) (1) to change the
$3,500 figure to $10,000. I have nettled on this amuunt as a
jsuggested figure because it would basically draw the line at
cars anti pickups and equipment of a similar value. It seems
to me that at the 010,000 level 0!" begin to fine the valuable
equipment being purchased, where competitive bidding is W rn
likely to result In a significant anvings.