Knowledgebase-Ordinance Pertaining to the Maximum Amount for Purchases Without Public Advertisement and Competitive Bidding


Information Product

Title:Ordinance Pertaining to the Maximum Amount for Purchases Without Public Advertisement and Competitive Bidding
Summary:MTAS was asked for assistance in amending a purchasing ordinance to increase bid amounts.
Original Author:Norris, Margaret
Co-Author:
Product Create Date:09/18/2006
Last Reviewed on::03/26/2010
Subject:Purchasing--Laws and regulations--Municipal ordinances; Purchasing--Municipal ordinances; Purchasing--Bids proposals and specifications
Type:Ordinance
Original Document: Ordinance Pertaining to the Maximum Amount for Purchases Without Public Advertisement and Competitive Bidding.pdf

Reference Documents:

Text of Document: ORDINANCE NUMBER ________
AN ORDINANCE TO AMEND TITLE 5, CHAPTER 5
OF THE LaFOLLETTE CITY CODE
PERTAINING TO THE MAXIMUM AMOUNT
FOR PURCHASES WITHOUT
PUBLIC ADVERTISEMENT AND
COMPETITIVE BIDDING

WHEREAS, the City of LaFollette is subject to the provisions of the Municipal Purchasing Law of l983; and

WHEREAS, this law has been amended by Chapter No. 269, Public Acts of 1999, and Chapter No 610, Public Acts of 2006, permitting municipalities to increase the dollar amount of purchases requiring public advertisement and competitive bidding; and

WHEREAS, the City Council has determined that it is in the best interest of the City of LaFollette to increase said amount.


NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LaFOLLETTE that:

Section 1. Section 5-504 of the LaFollette city code book is hereby repealed and replaced with the following:

Public advertisement and competitive bidding shall be required for the purchase of all goods and services exceeding an amount of ten thousand dollars ($10,000) except for those purchases specifically exempted from advertisement and bidding by the Municipal Purchasing Act of l983.

Section 2. Section 5-506 of the LaFollette city code book is hereby repealed and replaced with the following:

Purchases on all goods and services that cost between $4,000 and $10,000 shall be made by competitive bidding and shall be awarded to the lowest responsible bidder, except for those purchases specifically exempted from advertisement and bidding by the Municipal Purchasing Act of l983. A written record shall be required and be available for inspection showing that competitive bids were obtained by one or more of the following methods:
(1) Direct mail request to prospective bidders;
(2) Telephone;
(3) Public notice posted on the bulletin board in the municipal building.
(4) Email.

Section 3. Section 5-507 of the LaFollette city code book is hereby repealed and replaced with the following:

Public advertisement and competitive bidding shall not be required for the purchase of goods and services up to $4,000. The purchasing agent is expected to obtain the best prices and services available for purchases and contracts of $4,000 or less.

Section 4. This ordinance shall take effect from and after its final passage, provided that at least fifteen (15) days have passed after the first passage, the public welfare requiring it.


Passed on first reading: ________________________

Passed on second reading: ________________________


________________________________ ______________________________
Signed: Mayor Attest: City Recorder

Please remember that this ordinance was drafted based upon the drafting requirements and authority granted to a particular city or town in its charter and in general law. These drafting requirements and the authority exercised in this ordinance might not apply to your city or town.

Please confer with your city attorney or an MTAS legal consultant, or both, before using this ordinance as a model.