HomeMy WebLinkAboutOrdinance 6882113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Ordinance: 6882
File Number: 2025-684
AN ORDINANCE TO INCREASE THE COMPETITIVE BIDDING THRESHOLD TO S40,000.00 BY
AMENDING § 34.23 OF THE FAYETTEVILLE CODE OF ORDINANCES
WHEREAS, Act 435 of 2021 amended Arkansas state procurement law concerning competitive bidding and
purchasing procedures and allowed municipalities to increase bidding thresholds up to $35,000.00 for goods and
services; and
WHEREAS, on November 2, 2021, City Council passed Ordinance 6502 that modified the competitive bidding
threshold for purchases and contracts for goods and services from $20,000.00 to $35,000.00; and
WHEREAS, Ark. Code Ann. § 14-58-303(b) authorizes an annual adjustment to the bidding threshold to reflect the
percentage increase in the Consumer Price Index; and
WHEREAS, the percentage increase and corresponding updated amounts are provided by the Arkansas Department of
Finance and Administration (DFA) who determined on January 1, 2025 the percentage increase to be 22.63%, thereby
adjusting the bidding threshold to $42,921.00 for cities and counties in Arkansas; and
WHEREAS, staff recommends approval of an increase of the bidding threshold to $40,000.00 because it will help
streamline operations, increase staff efficiency, and speed up processing time for end -user departments and divisions to
procure goods and services.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE,
ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby repeals the title of § 34.23 and enacts a
replacement title 'Purchases and Contracts for Goods and Services Not in Excess of $40, 000.00."
Section 2: That the City Council of the City of Fayetteville, Arkansas hereby repeals the first sentence of § 34.23(C)
and enacts a replacement as follows: "Contracts for goods and services not in excess of $40,000.00 shall be made by
the Mayor."
Section 3: That the City Council of the City of Fayetteville, Arkansas hereby replaces $35,000.00 in the last sentence of
§ 34.23(C) with $40,000.00.
Section 4: That the City Council of the City of Fayetteville, Arkansas hereby amends § 34.23(E) by changing
"Purchasing Manager" to "Purchasing/Procurement Director."
Page 1
Ordinance: 6882
File Number: 2025-684
PASSED and APPROVED on June 3, 2025
Approved:
Molly Rawn, Mayor
Attest:
oa�RK / TR
Kara Paxton, City Clerk Treasurer
This publication was paid for by the City Clerk -Treasurer of the City of Fayetteville, Arkansas.
Amount Paid: $ 183.92
Page 2
CITY OF
FAYETTEVILLE
ARKANSAS
MEETING OF JUNE 3, 2025
CITY COUNCIL MEMO
2025-684
TO: Mayor Rawn and City Council
THRU: Steven Dotson, Chief Financial Officer
FROM: Amanda Beilfuss, Procurement Director
SUBJECT: An Ordinance to increase competitive bidding thresholds in Section 34.23 of the City
Code
RECOMMENDATION:
Approving an Ordinance to amend §34.23 Purchases and Contracts for Goods and Services Not in Excess of
$35,000, increasing the competitive bidding threshold to $40,000.00 including additional modifications.
BACKGROUND:
Act 435 of the Regular Session, 2021 was approved by the Arkansas Legislature on March 24, 2021, without
an emergency clause, to amend Arkansas state procurement law concerning competitive bidding and
purchasing procedures for both counties and municipalities. This Act allows municipalities to increase bidding
thresholds up to $35,000.00 for goods and services.
Procurement thresholds were last amended on November 2, 2021 with Ordinance 6502 which modified the
limit of purchases and contracts from $20,000.00 to $35,000.00 and enacted the limit for public improvements
to $50,000.00.
Act 435 of the Regular Session, 2021 also includes a clause beginning January 1, 2025, and on each January
1 at subsequent five-year intervals, the amounts under this subdivision shall be adjusted to reflect the
percentage increase in the Consumer Price Index for all urban consumers or its successor, as published by the
United States Department of Labor for the five (5) years immediately preceding the percentage increase, and
rounded to the nearest whole.
The percentage increase and corresponding updated amounts are provided by the Arkansas Department of
Finance and Administration (DFA). For January 1, 2025 the DFA determined the percentage increase to be
22.63%, adjusting the threshold level to $42,921.00 for cities and counties in Arkansas.
DISCUSSION:
To ensure all City Departments maintain compliance with the adjusted threshold, the City's Procurement
Division recommends raising the limit to an even $40,000.00.
This Ordinance includes revisions to §34.23 in the following manner:
(1) §34.23 Purchases and Contracts for Goods and Services Not in Excess of $35,000
a. Increase the threshold to $40,000.00 (up from the current $35,000.00 limit)
b. Modifying the threshold to allow the Mayor to duly authorize a representative to execute contracts
not in excess of $40,000.00 and approve change orders up to the contingency amount, if any, as set forth in
Mailing address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
any approved contract, even though such a contingency amount may exceed $40,000.00.
Approval of the increased procurement thresholds will help streamline operations, increase staff efficiency, and
speed up processing time for end -user departments and divisions to procure goods and services.
BUDGET/STAFF IMPACT:
Funds will be spent within the approved budget from City Council.
ATTACHMENTS: 3. Staff Review Form, 4. Modification Summary for 34.23, 5. DFA Adjustment Notice, 6.
Act435, Amend Law Concerning Competitive Bidding and Purch Procedures, 7. Ordinance 6502
Mailing address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
City of Fayetteville, Arkansas 113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Legislation Text
File #: 2025-684
AN ORDINANCE TO INCREASE THE COMPETITIVE BIDDING THRESHOLD TO
$40,000.00 BY AMENDING § 34.23 OF THE FAYETTEVILLE CODE OF ORDINANCES
WHEREAS, Act 435 of 2021 amended Arkansas state procurement law concerning competitive
bidding and purchasing procedures and allowed municipalities to increase bidding thresholds up to
$35,000.00 for goods and services; and
WHEREAS, on November 2, 2021, City Council passed Ordinance 6502 that modified the competitive
bidding threshold for purchases and contracts for goods and services from $20,000.00 to $35,000.00;
and
WHEREAS, Ark. Code Ann. § 14-58-303(b) authorizes an annual adjustment to the bidding threshold
to reflect the percentage increase in the Consumer Price Index; and
WHEREAS, the percentage increase and corresponding updated amounts are provided by the Arkansas
Department of Finance and Administration (DFA) who determined on January 1, 2025 the percentage
increase to be 22.63%, thereby adjusting the bidding threshold to $42,921.00 for cities and counties in
Arkansas; and
WHEREAS, staff recommends approval of an increase of the bidding threshold to $40,000.00 because
it will help streamline operations, increase staff efficiency, and speed up processing time for end -user
departments and divisions to procure goods and services.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby repeals the title of § 34.23
and enacts a replacement title 'Purchases and Contracts for Goods and Services Not in Excess of
$40, 000.00."
Section 2: That the City Council of the City of Fayetteville, Arkansas hereby repeals the first sentence of
§ 34.23(C) and enacts a replacement as follows: "Contracts for goods and services not in excess of
$40,000.00 shall be made by the Mayor."
Section 3: That the City Council of the City of Fayetteville, Arkansas hereby replaces $35,000.00 in the
last sentence of § 34.23(C) with $40,000.00.
Section 4: That the City Council of the City of Fayetteville, Arkansas hereby amends § 34.23(E) by
Page 1
Ordinance: 6882
File Number: 2025-684
changing "Purchasing Manager" to "Purchasing/Procurement Director."
Page 2
Amanda Beilfuss
Submitted By
City of Fayetteville Staff Review Form
2025-684
Item ID
6/3/2025
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
5/15/2025 PURCHASING (160)
Submitted Date Division / Department
Action Recommendation:
Approving an Ordinance to amend §34.23 Purchases and Contracts for Goods and Services Not in Excess of
$35,000, increasing the Procurement threshold to $40,000.00, including additional modifications.
Account Number
Project Number
Budgeted Item? No
Does item have a direct cost? No
Is a Budget Adjustment attached? No
Purchase Order Number:
Change Order Number:
Original Contract Number:
Comments:
Budget Impact:
Fund
Project Title
Total Amended Budget
$ -
Expenses (Actual+Encum)
$ -
Available Budget
Item Cost
$ -
Budget Adjustment
$ -
Remaining Budget
V20221130
Previous Ordinance or Resolution # Ordinance 6502
Approval Date:
City of Fayetteville, Arkansas
Procurement Division
Modification Summary for 34.23
34.23 - Purchases And Contracts for Goods and Services Not In Excess Of $35,000.00
(A) All such purchases for goods and services not in excess of $35,000 GO 40 000.00 shall be made
by the Mayor, or the Mayor's duly authorized representative, after the securing and recording of
quotation bids therefor; provided quotation bids need not be secured for purchases under
$5,000.00.
(B) Cost -share agreements with developers or governmental entities for the improvement of city
infrastructure are expressly exempt from the requirements of this section. The City Council shall
signify its approval of cost -share agreements by resolution.
(C) Contracts for goods and services not in excess of $35,AA0:A0-$40,000.00 shall be made and
entered into by the Mayor. The Mayor, or the Mayor's designee, shall have the authority to
approve contract change orders up to the contingency amount, if any, as set forth in any
approved contract even though such contingency amount may exceed $35,000-.GG40 000.00.
(D) The hiring or engagement of professional services shall be conducted according to a professional
hiring policy approved by the City Council.
(E) Sole Source Provider. Multiple quotation bids shall not be required if the PurchasingZ
ManagerProcurement Director approves the Sole Source Justification form signed by the
requesting division head for an item that is uniquely compatible with existing equipment or has
unique and essential design or performance features. Pursuant to Ark. Code Ann. § 14-58-
104(21), a written proclamation from the Mayor shall be filed with the City Clerk -Treasurer
setting forth the basis for the single source procurement.
(F) Exempt Goods and Services. Goods and services recognized as exempt from competitive bidding
under Arkansas law shall not require a Sole Source Justification, quotations, or competitive
bidding.
(G) Waiver of the Requirement for Bids. The City Council, by ordinance, may waive the requirements
of this section for competitive bids or quotes in exceptional situations where this procedure is
deemed not feasible or practical.
STATE OF ARKANSAS
Department of Finance
and Administration
December 31, 2024
In accordance with the provisions of Ark. Code Ann. §14-22-102(c)(1)-(2), §14-22-
104(b)(1)-(2), and §14-58-303(b)(3)(A)-(B), the Department of Finance and
Administration has determined the percentage increase by which the purchase
threshold level for cities and counties is adjusted beginning January 1, 2025 to be
22.63%. The level of $35,000 in the following code sections shall be adjusted to
$42,921.
A.C.A. 14-22-102(a) and (b)
A.C.A. 14-22-104(a)
A.C.A. 14-58-303(b)(1)(A)
A.C.A. 14-58-303(b)(2)(A)(i)
Level prior Level effective
to 1 /1 /2025
1 /1 /2025
$35,000
$42,921
$35,000
$42,921
$35,000
$42,921
$35,000
$42,921
The percentage increase is determined based on the Consumer Price Index for All
Urban Consumers as published by the United States Department of Labor for the five
years immediately preceding the percentage increase. The percentage increase and
the corresponding updated amounts shall be provided to each county, city of the first
class, and Arkansas Legislative Audit.
Please contact the Department of Finance and Administration at (501) 682-5339 for
additional information.
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Stricken language would be deleted from and underlined language would be added to present law.
Act 435 of the Regular Session
State of Arkansas
93rd General Assembly A Bill
Regular Session, 2021 SENATE BILL 456
By: Senator G. Stubblefield
By: Representative L. Fite
For An Act To Be Entitled
AN ACT TO AMEND THE LAW CONCERNING COMPETITIVE
BIDDING AND PURCHASING PROCEDURES FOR COUNTIES AND
MUNICIPALITIES; AND FOR OTHER PURPOSES.
Subtitle
TO AMEND THE LAW CONCERNING COMPETITIVE
BIDDING AND PURCHASING PROCEDURES FOR
COUNTIES AND MUNICIPALITIES.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
22 SECTION 1. Arkansas Code § 14-22-102 is amended to read as follows:
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14-22-102. Applicability.
(a) It is unlawful for any a county official to make any purehas-es a
purchase with county funds in excess of twenty thousand dollars ($20 nnn+
thirty-five thousand dollars ($35,000), unless the method of purchasing
prescribed 4:n under this chapter is followed.
(b) This chapter awl does not apply to any purehases a purchase
under twenty thousand dollars ($20 nnn+ thirty-five thousand dollars
($35,000) or to the purchase of commodities set {^�in under § 14-22-106.
(c)(1) Beginning January 1, 2025, and on each January 1 at subsequent
five-year intervals, the amounts under subsections (a) and (b) of this
section shall be adjusted to reflect the percentage increase in the Consumer
Price Index for All Urban Consumers or its successor, as Dublished by the
United States Department of Labor for the five (5) vears immediate
preceding the percentage increase, and rounded to the nearest whole number.
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SB456
1 (2) Following a percentage increase under subdivision (c)(1) of
2 this section, the Department of Finance and Administration shall provide each
3 county and Arkansas Legislative Audit with the percentage increase and the
4 corresponding updated amounts under this section.
5
6
SECTION 2.
Arkansas Code §
14-22-104 is amended to read as follows:
7
14-22-104.
Purchases permitted.
8
All purehases
of eemmedities
(a) A purchase of a commodity made by any
9
a county purchasing official with
county funds, except those specifically
10
exempted by this
chapter, shall be
made as follows:
11
(1)
Formal bidding shall
is required in each instance in
12 which the estimated purchase price
13 dollars ($2-0,000) equals or exceeds thirty-five thousand dollars ($35,000);
14 (2) Open An open market ryes purchase may be made of a"
15 eemmedities where a commodity if the purchase price is less than twenty
16 thousand dollars ($20 000) thirty-five thousand dollars ($35,000); and
17 (3) Ne A purchasing official shall not parcel or split any items
18 of commodities or estimates with the intent or purpose to change the
19 classification or to enable the purchase to be made under a less restrictive
20 procedure.
21 (b)(1) Beginning January 1, 2025, and on each January 1 at subsequent
22 five-year intervals, the amount under subsection (a) of this section shall be
23 adjusted to reflect the percentage increase in the Consumer Price Index for
24 All Urban Consumers or its successor, as published by the United States
25 Department of Labor for the five (5) years immediately preceding the
26 percentage increase, and rounded to the nearest whole number.
27 (2) Following a percentage increase under subdivision (b)(1) of
28 this section, the Department of Finance and Administration shall provide each
29 county and Arkansas Legislative Audit with the percentage increase and the
30 corresponding updated amounts under this section.
31
32 SECTION 3. Arkansas Code § 14-22-106(17), concerning county commodity
33 purchases exempted from bid solicitation, is amended to read as follows:
34 (17)(A) New motor vehicles purchased from a licensed automobile
35 dealership located in Arkansas for an amount not to exceed the fleet price
36 awarded by the Office of State Procurement and in effect at the time the
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SB456
1 county submits the purchase order for the same make and model motor vehicle-,
2 which may include additional options that were available for bid and
3 purchased under state contract at the state bid option price.
4 (B) The purchase amount for a new motor vehicle may
5 include additional options after -market equipment that was not available
6 under the state contract up to v hun-dred ($600) one thousand two
7 hundred dollars ($1,200) over the fleet price awarded;
8
9 SECTION 4. Arkansas Code § 14-58-104 is amended to read as follows:
10 14-58-104. Specific purchases and contracts — Commodities.
11 {a} The meal governing body of a city of the first class, city of
12 the second class, or an incorporated town may purchase the following
13 commodities without soliciting bids:
14 (1) Motor fuels, oil, asphalt, asphalt oil, and natural gas,; and
15 ( ) New motor vehi-elesiren.- amotor vehi-ele dealer lieensed
16 under the Arkansas Motor Vehiele Commission Aet, § 23 112 101 et seq., if the
17 motor vehiele is purehased for an amount not to exeeed the fleet priee
18 awarded by the Offiee of State Proeurement and in effeet at the time t
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munieipal
body of a eity of the first elass, eity of the see
governing
20
town the for the
elass, or an ineorporated
submits purehase order same make
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and �—motor
vehicle. Perishable foodstuffs for immediate use;
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(2)
Unprocessed feed for livestock and poultry;
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(3)
Advanced emergency medical services provided by a nonprofit
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corporation and
proprietary medicines if specifically requested by a
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professional employee;
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(4)
Books, manuals, periodicals, films, and copyrighted
27
educational aids
for use in libraries and other informational material for
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institutional purposes;
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(5)
Scientific equipment and parts;
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(6)
Replacement parts and labor for repairs of machinery and
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equipment;
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(7)
Commodities available only from the United States
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Government;
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(8)(A)
Any commodities needed in instances in which an
35
unforeseen and unavoidable
emergencv has arisen in which human life. health.
36 or public property is in jeopard
3 3/2/2021 1:53:20 PM KLL044
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1 (B) An emergency purchase under subdivision (8)(A) of this
2 section shall not be approved unless a statement in writing is attached to
3 the purchase order describing the emergency necessitating the purchase of the
4 commodity without competitive bidding;
5 (9) Utility services, purchased at wholesale or the rates for
6 which are subject to regulation by a state agency or a federal regulatory
7 agency;
8 (10) Sand, gravel, soil, lumber, used pipe, or used steel;
9 (11)(A) Used or secondhand motor vehicles, machinery, or
10 equipment.
11 (B) A used or secondhand motor vehicle that has been under
12 lease to a municipality and has fewer than five thousand (5,000) miles of use
13 shall not be purchased except upon competitive bids as provided in this
14 chapter;
15 (12) Machinery, equipment, facilities, or other personal
16 property purchased or acquired for or in connection with the securing and
17 developing of industry under the Municipalities and Counties Industrial
18 Development Revenue Bond Law, § 14-164-201 et seq., or any other provision of
19 law pertaining to the securing and developing of industry;
20 (13) Registered livestock to be used for breeding purposes;
21 (14) Motor fuels, oil, asphalt, asphalt oil, and natural gas;
22 (15) Motor vehicles, equipment, machinery, material, or supplies
23 offered for sale at public auction or through a process requiring sealed
24 bids;
25 (16) All goods and services that are regularly provided to state
26 agencies and municipal government by the Division of Correction's various
27 penal industries;
28 (17)(A) New motor vehicles purchased from a licensed automobile
29 dealership located in Arkansas for an amount not to exceed the fleet price
30 awarded by the Office of State Procurement and in effect at the time the
31 municipality submits the purchase order for the same make and model motor
32 vehicle.
33 (B) The purchase amount for a new motor vehicle may
34 include additional options up to six hundred dollars ($600) over the fleet
35 price awarded;
36 (18) Renewal or extension of the term of an existing contract;
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1 (19) Purchase of insurance for municipal employees, including
2 without limitation health insurance, workers' compensation insurance, life
3 insurance, risk management services, or dental insurance;
4 (20) Goods or services if the governing body has approved by
5 resolution the purchase of goods or services through competitive bidding or
6 procurement procedures used by:
7 (A) The United States Government or one (1) of its
8 agencies;
9 (B) Another state; or
10 (C) An association of governments or governmental
11 agencies, including associations of governments or governmental agencies
12 below the state level; and
13 (21)(A) Goods or services available only from a single source.
14 (B) A purchase under this subdivision (21) shall be
15 supported with:
16 (i) Documentation concerning the exclusivity of the
17 single source; and
18 (ii) A written proclamation from the chief executive
19 filed with the clerk or recorder that sets forth the basis for the single
20 source procurement.
21 (b) The munieipal governing body of a city of the first elass, city e-f
22 the seeend elass, or an ineerporated town may ren or extend the term of an
23 existing Eentraet without selieiting bids.
24
25 SECTION 5. Arkansas Code § 14-58-303(b), concerning municipal
26 purchases and contracts, is amended to read as follows:
27
(b)(1)(A) Except as provided under § 14-58-104, the munieipal
28
governing body of any
city of the first class shall provide
by ordinance the
29
procedure for making
all purchases which that do not exceed
the sum of twenty
30
thousand dollars ($20
000) thirty-five thousand dollars ($35,000).
31
(B)
Except as provided under § 14-58-104,
the mom'
32
governing body of any
city of the second class or incorporated
town may
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provide by ordinance
the procedure for making all purchases.
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(2)(A)(i)
Except as provided under § 14-58-104,
in a city of the
35
first class where in
which the amount of expenditure for any
purpose or
36
contract exceeds the
sum of twenty thousand dolls ($20 nnn+
thirty-five
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SB456
1 thousand dollars ($35,000), the mayor or the mayor's authorized
2 representative shall invite competitive bidding on the purpose or contract by
3 legal advertisement in any local newspaper.
4 (ii) Bids received pursuant to the advertisement
5 shall be opened and read on the date set for receiving the bids in the
6 presence of the mayor or the mayor's authorized representative.
7 (iii) The mayor or the mayor's authorized
8 representative shall have has exclusive power to award the bid to the lowest
9 responsible bidder, but and may reject any and all bids received.
10 (B) The governing body by ogee resolution may waive
11 the requirements of competitive bidding in exceptional situations where this
12 procedure is deemed not feasible or practical or as provided under § 14-58-
13 104.
14 (C) Cities of the first class, cities of the second class,
15 and incorporated towns may accept competitive bids in the following forms:
16 (i) Written; or
17 (ii) Electronic media.
18 (3)(A) Beginning January 1, 2025, and on each January 1 at
19 subsequent five-vear intervals, the amounts under this subdivision shall be
20 adiusted to reflect the Dercentaze increase in the Consumer Price Index for
21
All Urban Consumers or its successor,
as published by
the United States
22
Department of Labor for the five (5)
years immediately
preceding the
23
percentage increase, and rounded to
the nearest whole
number.
24
25
(B) Following a percentage increase
(c)(1) of this section, the Department of Finance and
under subdivision
Administration shall
26
Drovide each citv of the first class
and Arkansas Legislative
Audit with the
27 Dercentaae increase and the corresDondina uDdated amounts under this section.
28
29 SECTION 6. Arkansas Code § 14-58-304 is amended to read as follows:
30 14-58-304. Purchase of insurance.
31 The- Except as provided under § 14-58-104, the purchase of all types of
32 insurance by cities of the first class, cities of the second class, or
33 incorporated towns shall be is governed by the provisions of § 14-58-303.
34
35 SECTION 7. Arkansas Code § 14-58-305(a), concerning municipal payment
36 of claims, is amended to read as follows:
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SB456
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(a) In a city of the first class, city of the second class, or
incorporated town, the mayor or his duly authorized representative may
approve or disapprove for payment out of funds previously appropriated for
that purpose disapprove, any bills, debts, orTiab liti-esas
legal claims asserted or brought against the city or town.
SECTION 8. Arkansas Code § 14-58-303 is amended to read as follows:
14-58-308. Bonds of officers and employees.
(a) All officers and employees of a city of the first class, city of
the second class, or incorporated town handling financial matters for the
city or town shall furnish a fidelity bond in such amount, on such form, and
with such security as may be approved by the municipal governing body.
(b) The premiums on these bonds shall be paid by the city or town.
APPROVED: 3/24/21
7 3/2/2021 1:53:20 PM KLL044
OF FPYETTF.
L
v
9RK ANSnS
113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Ordinance: 6502
File Number: 2021-0805
AMEND §34.23 PURCHASES AND CONTRACTS NOT IN EXCESS OF $20,000.00:
AN ORDINANCE TO AMEND §34.23 PURCHASES AND CONTRACTS NOT IN EXCESS
OF S20,000.00 TO INCREASE THE COMPETITIVE BIDDING THRESHOLD FOR GOODS
AND SERVICES TO $35.000.00 AND TO ENACT §34 24 CONTRACTS FOR PUBLIC
IMPROVEMENTS NOT IN EXCESS OF $50,000.00
WHEREAS, Act 435 of 2021 amended the statutory competitive bidding threshold in Ark. Code
Ann. § 14-58-303(b) for goods and services from $20,000.00 to $35,000.00, and
WHEREAS. Act 440 of 2021 amended the statutory competitive bidding threshold in Ark. Code
Ann. § 22-9-203 for public improvement contracts from $35,000.00 to $50,000.00.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section l: That the City Council of the City of Fayetteville, Arkansas hereby repeals §34.23 of the
Fayetteville Code and replaces it with a new §34.23 as shown below:
"§34.23 Purchases and contracts not in excess of$35,000.00.
(A) All such purchases not in excess of $35.000.00 shall be made by the Mayor, or the Mayor's duly
authorized representative. after the securing and recording of quotation bids therefor: provided
quotation bids need not be secured for purchases under $5,000.00.
(B) Cost -share agreements with developers or governmental entities for the improvement of city
infrastructure are expressly exempt from the requirements of this section. The City Council shall
signify its approval of cost -share agreements by resolution.
Page 1 Primed on 1113121
Ordinance: 6502
File Number.' 2021-0805
(C) Contracts not in excess of $35,000.00 shall be made and entered into by the Mayor. The Mayor,
or the Mayor's designee. shall have the authority to approve contract change orders up to the
contingency amount. if any. as set forth in any approved contract even though such contingency
amount may exceed $35.000.00.
(D) The hiring or engagement of professional services shall be conducted according to a professional
hiring policy approved by the City Council.
(E) Sole Source Provider. Multiple quotation bids shall not be required if the Purchasing Manager
approves the Sole Source Justification form signed by the requesting division head for an item that
is uniquely compatible with existing equipment or has unique and essential design or performance
features. Pursuant to Ark. Code Ann. § 14-58-104(21), a written proclamation from the Mayor
shall be filed with the City Clerk -Treasurer setting forth the basis for the single source
procurement.
(F) Exempt Goods and Services. Goods and services recognized as exempt from competitive
bidding under Arkansas law shall not require a Sole Source Justification, quotations. or
competitive bidding.
(G) Waiver of the Requirement for Bids. The City Council. by ordinance, may waive the
requirements of this section for competitive bids or quotes in exceptional situations where this
procedure is deemed not feasible or practical."
Section 2: That the City Council of the City of Fayetteville, Arkansas hereby enacts a new §34.24
Contracts for Public Improvements Not In Excess of $50,000.00 as shown below:
"§34 24 Contracts for Public Improvements Not In Excess of $50,000.00
All contracts not in excess of $50.000.00 for the making of major repairs or alterations.. for the
erection of buildings or other structures, or for making other permanent improvements shall be made
by the Mayor, or the Mayor's duly authorized representative, after the securing and recording of
quotation bids therefor."
PASSED and APPROVED on 11/2/2021
Attest: l�,,ta j��K /1���P.-,
FAYEnE'VILLE . :;o
Kara Paxton, City Clerk TreasurCr ,9 ;
Page 2 Printed on 1113121
City of Fayetteville, Arkansas 113 West Mountain Street
Fayetteville, AR 72701
(479)575-8323
u
Text File
File Number: 2021-0805
Agenda Date: 11/2/2021 Version: 1 Status: Passed
In Control: City Council Meetinq File Type: Ordinance
Agenda Number: CA
AMEND §34.23 PURCHASES AND CONTRACTS NOT IN EXCESS OF $20,000.00:
AN ORDINANCE TO AMEND §34.23 PURCHASES AND CONTRACTS NOT IN EXCESS OF
$20,000.00 TO INCREASE THE COMPETITIVE BIDDING THRESHOLD FOR GOODS AND
SERVICES TO $35,000.00 AND TO ENACT §34.24 CONTRACTS FOR PUBLIC
IMPROVEMENTS NOT IN EXCESS OF $50,000.00
WHEREAS, Act 435 of 2021 amended the statutory competitive bidding threshold in Ark. Code Ann. §
14-58-303(b) for goods and services from $20,000.00 to $35,000.00; and
WHEREAS, Act 440 of 2021 amended the statutory competitive bidding threshold in Ark. Code Ann. §
22-9-203 for public improvement contracts from $35,000.00 to $50,000.00.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby repeals §34.23 of the Fayetteville
Code and replaces it with a new §34.23 as shown below:
"§34.23 Purchases and contracts not in excess of $35,000.00.
(A) All such purchases not in excess of $35,000.00 shall be made by the Mayor, or the Mayor's duly
authorized representative, after the securing and recording of quotation bids therefor; provided quotation
bids need not be secured for purchases under $5,000.00.
(B) Cost -share agreements with developers or governmental entities for the improvement of city infrastructure
are expressly exempt from the requirements of this section. The City Council shall signify its approval of
cost -share agreements by resolution.
(C) Contracts not in excess of $35,000.00 shall be made and entered into by the Mayor. The Mayor, or the
Mayor's designee, shall have the authority to approve contract change orders up to the contingency
amount, if any, as set forth in any approved contract even though such contingency amount may exceed
$35,000.00.
(D) The hiring or engagement of professional services shall be conducted according to a professional hiring
policy approved by the City Council.
(E) Sole Source Provider. Multiple quotation bids shall not be required if the Purchasing Manager approves
City of Fayetteville, Arkansas Page 1 Printed on 111312021
File Number: 2021-0805
the Sole Source Justification form signed by the requesting division head for an item that is uniquely
compatible with existing equipment or has unique and essential design or performance features. Pursuant
to Ark. Code Ann. § 14-58-104(21), a written proclamation from the Mayor shall be filed with the City
Clerk -Treasurer setting forth the basis for the single source procurement.
(F) Exempt Goods and Services. Goods and services recognized as exempt from competitive bidding under
Arkansas law shall not require a Sole Source Justification, quotations, or competitive bidding.
(G) Waiver of the Requirement for Bids. The City Council, by ordinance, may waive the requirements of this
section for competitive bids or quotes in exceptional situations where this procedure is deemed not feasible
or practical."
Section 2: That the City Council of the City of Fayetteville, Arkansas hereby enacts a new §34.24 Contracts
for Public Improvements Not In Excess of $50,000.00 as shown below:
"§34.24 Contracts for Public Improvements Not In Excess of $50,000.00
All contracts not in excess of $50,000.00 for the making of major repairs or alterations, for the erection of
buildings or other structures, or for making other permanent improvements shall be made by the Mayor, or the
Mayor's duly authorized representative, after the securing and recording of quotation bids therefor."
City of Fayetteville, Arkansas Page 2 Printed on 111312021
Andrea Foren
Submitted By
City of Fayetteville Staff Review Form
2021-0805
Legistar File ID
11/2/2021
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
10/15/2021 PURCHASING (160)
Submitted Date Division / Department
Action Recommendation:
Approving an Ordinance to (1) amend §34.23 Purchases and Contracts for Goods and Services Not In Excess of
$20,000, increasing the threshold to $35,000.00 including additional modifications and (2) create §34.24 Contracts
for Public Improvements Not in Excess of $50,000.00.
Account Number
Project Number
Budgeted Item? No
Does item have a cost? No
Budget Adjustment Attached? No
Budget Impact:
Current Budget
Funds Obligated
Current Balance
Item Cost
Budget Adjustment
Remaining Budget
Fund
Project Title
V20210527
Purchase Order Number: Previous Ordinance or Resolution # Ordinance 4722
Change Order Number: Approval Date:
Original Contract Number:
Comments:
CITY OF
FAYETTEVILLE
ARKANSAS
MEETING OF NOVEMBER 02, 2021
TO: Mayor and City Council
THRU: Paul A. Becker, Chief Financial Officer
FROM: Andrea Foren, Purchasing Manager
DATE: Friday, October 15, 2021
CITY COUNCIL MEMO
SUBJECT: An Ordinance to amend 32.23 and create 34.24 to increase Procurement
thresholds
RECOMMENDATION:
Approving an Ordinance to (1) amend §34.23 Purchases and Contracts for Goods and Services
Not In Excess of $20,000, increasing the threshold to $35,000.00 including additional
modifications and (2) create §34.24 Contracts for Public Improvements Not in Excess of
$50, 000.00.
BACKGROUND:
Act 435 of the Regular Session, 2021 was approved by the Arkansas Legislature on March 24,
2021, without an emergency clause, to amend Arkansas state procurement law concerning
competitive bidding and purchasing procedures for both counties and municipalities. This Act
allows municipalities to increase bidding thresholds up to $35,000.00 for goods and services.
Act 440 of the Regular Session, 2021 was approved by the Arkansas Legislature on March 24,
20201, without an emergency clause, to amend the award procedure for public improvement
contracts; and for other purposes. This Act enables municipalities to increase the bidding
threshold to $50,000.00 for construction contracts or "public improvement contracts" as defined
state law.
Procurement thresholds were last amended on July 19, 2005 with Ordinance 4722 which modified
the limit from $10,000.00 to $20,000.00. Procurement thresholds have not increased in over 16
years.
Act 435 also included a clause to review and adjust purchasing procedure thresholds every five
years, beginning with January 1, 2025 according to the Consumer Price Index (CPI) for All Urban
Consumers. The Purchasing Division will monitor this allowable increase and bring amendment
requests back to the City Council, as reasonably necessary, after January 1, 2025.
Mailing Address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
DISCUSSION:
This Ordinance includes revisions to §34.23 and creation of §34.24 in the following manner:
(1) §34.23 Purchases and Contracts for Goods and Services Not In Excess of $20, 000
a. Increase the threshold to $35,000.00 (up from the current $20,000.00 limit)
b. Increase the quotation limit to $5,000 (up from the current $1,000.00 limit)
c. Adding language to allow the Mayor to duly authorize a representative to execute
contracts not in excess of $35,000.00 and approve change orders up to the
contingency amount, if any, as set forth in any approved contract even though such
contingency amount may exceed $35,000.00
d. Exempting items from quotes, competitive bids, or Sole Source Justification on
purchases exempt from soliciting bids under A.C.A. § 19-11-203.
(2) §34.24 Contracts for Public Improvements Not in Excess of $50, 000.00
a. Creates section 34.24 reading
"All contracts not in excess of $50, 000.00 for the making of major repairs or
alterations, for the erection of buildings or other structures, or for making other
permanent improvements shall be made by the Mayor, or the Mayor's duly
authorized representative, after the securing and recording of quotation bids
therefor. "
Approval of the procurement thresholds will help streamline operations, increase staff efficiency
and speed up processing time for end user departments and divisions to procure goods and
services.
This increase in threshold mirrors, other large cities in Arkansas, such as Little Rock, which has
the same thresholds being requested. The City of Springdale and Bentonville have recently
passed similar ordinances.
BUDGET/STAFF IMPACT:
Funds will be spent within approved budget from City Council.
Attachments:
City of Fayetteville, Purchasing Division, Modification Summary for 34.23 and 34.24
Act 435
Act 440
City of Fayetteville, Arkansas
Purchasing Division
Modification Summary for 34.23 and 34.24
34.23 Purchases and Contracts for Goods and Services Not In Excess Of $35,000.00
(A) All such purchases not in excess of $35,000.00 shall be made by the Mayor, or the Mayor's duly authorized
representative, after the securing and recording of quotation bids therefor; provided quotation bids need
not be secured for purchases under $5,000.00.
(B) Cost -share agreements with developers or governmental entities for the improvement of city infrastructure
are expressly exempt from the requirements of this section. The City Council shall signify its approval of cost -
share agreements by resolution.
(C) Contracts not in excess of $35,000.00 shall be made and entered into by the Mayor. The Mayor, or the
Mayor's designee shall have the authority to approve contract change orders up to the contingency amount,
if any, as set forth in any approved contract even though such contingency amount may exceed $35,000.00.
(D) The hiring or engagement of professional services shall be conducted according to a professional hiring policy
approved by the City Council.
(E) Sole Source Provider. Multiple quotation bids shall not be required if the Purchasing Manager approves the
Sole Source Justification form signed by the requesting division head for an item that is uniquely compatible
with existing equipment or has unique and essential design or performance features. Pursuant to Ark. Code
Ann. § 14-58-104(21), a written proclamation from the Mayor shall be filed with the City Clerk -Treasurer
setting forth the basis for the single source procurement.
(F) Exempt Goods and Services. Goods and services recognized as exempt from competitive bidding under
Arkansas law shall not require a Sole Source Justification, quotations, or competitive bidding.
(G) Waiver of the Requirement for Bids. The City Council, by ordinance, may waive the requirements of this
section for competitive bids or quotes in exceptional situations where this procedure is deemed not feasible
or practical.
34.24 Contracts for Public Improvements Not in Excess of $50,000.00
All contracts not in excess of $50,000.00 for the making of major repairs or alterations, for the erection of buildings
or other structures, or for making other permanent improvements shall be made by the Mayor, or the Mayor's
designee, after the securing and recording of quotation bids therefor.
Page 1 of 1
Last Updated Friday, October 15, 2021
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Stricken language would be deleted from and underlined language would be added to present law.
Act 435 of the Regular Session
State of Arkansas
93rd General Assembly A Bill
Regular Session, 2021 SENATE BILL 456
By: Senator G. Stubblefield
By: Representative L. Fite
For An Act To Be Entitled
AN ACT TO AMEND THE LAW CONCERNING COMPETITIVE
BIDDING AND PURCHASING PROCEDURES FOR COUNTIES AND
MUNICIPALITIES; AND FOR OTHER PURPOSES.
Subtitle
TO AMEND THE LAW CONCERNING COMPETITIVE
BIDDING AND PURCHASING PROCEDURES FOR
COUNTIES AND MUNICIPALITIES.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
SECTION 1. Arkansas Code § 14-22-102 is amended to read as follows:
14-22-102. Applicability.
(a) It is unlawful for any a county official to make any purehases a
purchase with county funds in excess of twenty . heu-s-And -'^" ^r^ ($20 nnn�
thirty-five thousand dollars ($35,000), unless the method of purchasing
prescribed 441 under this chapter is followed.
(b) This chapter shall does not apply to any purehases a purchase
under twenty *heus-And ($20 nnn+ thirty-five thousand dollars
($35,000) or to the purchase of commodities set €girth in under § 14-22-106.
(c)(1) Beginning January 1, 2025, and on each January 1 at subsequent
five-year intervals, the amounts under subsections (a) and (b) of this
section shall be adjusted to reflect the percentage increase in the Consumer
Price Index for All Urban Consumers or its successor, as published by the
United States Department of Labor for the five (5) vears immediatelv
receding the percentage increase, and rounded to the nearest whole number.
3/2/2021 1:53:20 PM KLL044
SB456
1
2
(2) Following a percentage
this section, the Department of Finance
increase under subdivision (c)(1) of
and Administration shall provide each
3
county and Arkansas Legislative Audit with the percentage
increase and the
4
corresponding updated amounts under this
section.
5
6
SECTION 2. Arkansas Code § 14-22-104
is amended
to read as follows:
7
14-22-104. Purchases permitted.
8
All pureh-ases of eemmedities (a)
A purchase of a
commodity made by any
9
a county purchasing official with county
funds, except
those specifically
10
exempted by this chapter, shall be made
as follows:
11
(1) Formal bidding shall be
is required in
each instance in
12 which the estimated purchase price
13 dollars ($20,000) equals or exceeds thirty-five thousand dollars ($35,000);
14 (2) Open An open market P hales purchase may be made of any
15 eemmedities where a commodity if the purchase price is less than twenty
16 thousand dollars ($20 000) thirty-five thousand dollars ($35,000); and
17 (3) N-s A purchasing official shall not parcel or split any items
18 of commodities or estimates with the intent or purpose to change the
19 classification or to enable the purchase to be made under a less restrictive
20 procedure.
21 (b)(1) Beginning January 1, 2025, and on each January 1 at subsequent
22 five-year intervals, the amount under subsection (a) of this section shall be
23 adiusted to reflect the percentage increase in the Consumer Price Index for
24 All Urban Consumers or its successor, as published by the United States
25 Department of Labor for the five (5) years immediately preceding the
26 percentage increase, and rounded to the nearest whole number.
27 (2) Following a percentage increase under subdivision (b)(1) of
28 this section, the Department of Finance and Administration shall provide each
29 county and Arkansas Legislative Audit with the percentage increase and the
30 corresponding updated amounts under this section.
31
32 SECTION 3. Arkansas Code § 14-22-106(17), concerning county commodity
33 purchases exempted from bid solicitation, is amended to read as follows:
34 (17)(A) New motor vehicles purchased from a licensed automobile
35 dealership located in Arkansas for an amount not to exceed the fleet price
36 awarded by the Office of State Procurement and in effect at the time the
2 3/2/2021 1:53:20 PM KLL044
SB456
1 county submits the purchase order for the same make and model motor vehicle,
2 which may include additional options that were available for bid and
3 purchased under state contract at the state bid option price.
4 (B) The purchase amount for a new motor vehicle may
5 include additional options after -market equipment that was not available
6 under the state contract up to six hundred dell r^ ($600) one thousand two
7 hundred dollars ($1,200) over the fleet price awarded;
8
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SECTION 4. Arkansas Code § 14-58-104 is amended to read as follows:
14-58-104. Specific purchases and contracts — Commodities.
+a-} The muni-eipal governing body of a city of the first class, city of
the second class, or an incorporated town may purchase the following
commodities without soliciting bids:
(1) Motor feels, ail, asphalt, asphalt ail, and natural gas; a
(2) New motor vehieles from motor vehicle dealer lieensed
under the Arkansas Motor Vehiele Commission Aet, § 23 112 101 et seq., if the
motor vehiele ispureh-aseh for an not to exceed the fleet p iee
'awarded by the—Offiee of State Preeurement and in effeet at the —time it�ic
body f ty f the first elass, eity of the seeend
ciiaxziciFaxgoverning ooa�ox a cxc�ox �
elassf
or an ineorporated town submits the purehase order for the same make
at}d m-o el e e vehicle. Perishable foodstuffs for immediate use;
(2) Unprocessed feed for livestock and poultry;
(3) Advanced emergency medical services provided by a nonprofit
corporation and proprietary medicines if specifically requested by a
professional employee;
(4) Books, manuals, periodicals, films, and copyrighted
educational aids for use in libraries and other informational material for
institutional purposes;
(5) Scientific equipment and parts;
(6) Replacement parts and labor for repairs of machinery and
equipment;
7) Commodities available onlv from the United States
Government;
(8)(A) Any commodities needed in instances in which an
unforeseen and unavoidable emergencv has arisen in which human life. health
or public property is in jeopardy.
3 3/2/2021 1:53:20 PM KLL044
SB456
1 (B) An emergency purchase under subdivision (8)(A) of this
2 section shall not be approved unless a statement in writing is attached to
3 the purchase order describing the emergencv necessitating the purchase of the
4 commodity without competitive biddin
5
(9) Utility services, purchased at wholesale or the rates for
6
which are
subject to regulation by a state agency or a federal regulatory
7
agency;
8
(10) Sand, gravel, soil, lumber, used pipe, or used steel;
9
(11)(A) Used or secondhand motor vehicles, machinery, or
10
equipment.
11
(B) A used or secondhand motor vehicle that has been under
12
lease to a municipality and has fewer than five thousand (5,000) miles of use
13
shall not
be purchased except upon competitive bids as provided in this
14
chapter;
15
(12) Machinery, equipment, facilities, or other personal
16
property purchased
or acquired for or in connection with the securing and
17
developing
of industry under the Municipalities and Counties Industrial
18
Development Revenue Bond Law, § 14-164-201 et seq., or any other provision of
19
law pertaining to the securing and developing of industry;
20
(13) Registered livestock to be used for breeding purposes;
21
(14) Motor fuels, oil, asphalt, asphalt oil, and natural gas;
22
(15) Motor vehicles, equipment, machinery, material, or supplies
23
offered for sale at public auction or through a process reauirinQ sealed
24 bids;
25 (16) All goods and services that are regularly provided to state
26 agencies and municipal government by the Division of Correction's various
27 penal industries;
28 (17)(A) New motor vehicles purchased from a licensed automobile
29 dealership located in Arkansas for an amount not to exceed the fleet price
30 awarded by the Office of State Procurement and in effect at the time the
31 municipality submits the purchase order for the same make and model motor
32 vehicle.
33 (B) The purchase amount for a new motor vehicle may
34 include additional options up to six hundred dollars ($600) over the fleet
35 price awarded;
36 (18) Renewal or extension of the term of an existing contract:
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SB456
1 (19) Purchase of insurance for municipal employees, including
2 without limitation health insurance, workers' compensation insurance, life
3 insurance, risk management services, or dental insurance;
4 (20) Goods or services if the governing body has approved by
5 resolution the purchase of goods or services through competitive bidding or
6 procurement procedures used by:
7 (A) The United States Government or one (1) of its
8 agencies;
9 (B) Another state; or
10 (C) An association of governments or governmental
11 agencies, including associations of governments or governmental agencies
12 below the state level; and
13 (21)(A) Goods or services available only from a single source.
14 (B) A purchase under this subdivision (21) shall be
15 supported with:
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23
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i) Documentation concerning the exclusivity of the
single source; and
(ii) A written proclamation from the chief executive
filed with the clerk or recorder that sets forth the basis for the single
source procurement.
existing-eentraet wither se14-elting bidsr.
25 SECTION 5. Arkansas Code § 14-58-303(b), concerning municipal
26 purchases and contracts, is amended to read as follows:
27 (b)(1)(A) Except as provided under § 14-58-104, the Via-
28 governing body of any city of the first class shall provide by ordinance the
29 procedure for making all purchases whiek that do not exceed the sum of twenty
30 thousand dollars ($20 000) thirty-five thousand dollars ($35,000).
31 (B) Except as provided under § 14-58-104, the munielpal
32 governing body of any city of the second class or incorporated town may
33 provide by ordinance the procedure for making all purchases.
34 (2)(A)(i) Except as provided under § 14-58-104, in a city of the
35 first class where in which the amount of expenditure for any purpose or
36 contract exceeds the sum of twenty theu-s^^a a^-l-1 ($20 00-0 thirty-five
5 3/2/2021 1:53:20 PM KLL044
SB456
1 thousand dollars ($35,000), the mayor or the mayor's authorized
2 representative shall invite competitive bidding on the purpose or contract by
3 legal advertisement in any local newspaper.
4 (ii) Bids received pursuant to the advertisement
5 shall be opened and read on the date set for receiving the bids in the
6 presence of the mayor or the mayor's authorized representative.
7 (iii) The mayor or the mayor's authorized
8 representative shall have has exclusive power to award the bid to the lowest
9 responsible bidder, but and may reject any and all bids received.
10 (B) The governing body by ogee resolution may waive
11 the requirements of competitive bidding in exceptional situations where this
12 procedure is deemed not feasible or practical or as provided under § 14-58-
13 104.
14 (C) Cities of the first class, cities of the second class,
15 and incorporated towns may accept competitive bids in the following forms:
16 (i) Written; or
17 (ii) Electronic media.
18 (3)(A) Beginning January 1, 2025, and on each January 1 at
19 subsequent five-year intervals, the amounts under this subdivision shall be
20 adjusted to reflect the percentage increase in the Consumer Price Index for
21 All Urban Consumers or its successor, as published by the United States
22 Department of Labor for the five (5) years immediately preceding the
23 nercentaQe increase. and rounded to the nearest whole number.
24 (B) Following a percentage increase under subdivision
25 (c)(1) of this section, the Department of Finance and Administration shall
26 provide each city of the first class and Arkansas Legislative Audit with the
27 percentage increase and the corresponding updated amounts under this section.
28
29 SECTION 6. Arkansas Code § 14-58-304 is amended to read as follows:
30 14-58-304. Purchase of insurance.
31 The Except as provided under § 14-58-104, the purchase of all types of
32 insurance by cities of the first class, cities of the second class, or
33 incorporated towns shall be is governed by the provisions of § 14-58-303.
34
35 SECTION 7. Arkansas Code § 14-58-305(a), concerning municipal payment
36 of claims, is amended to read as follows:
6 3/2/2021 1:53:20 PM KLL044
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(a) In a city of the first class, city of the second class, or
incorporated town, the mayor or his duly authorized representative may
approve or disapprove for payment out of funds previously appropriated for
that purpose r disapprove any bills, debts, orliabilities —asserted —as-
legal claims asserted or brought against the city or town.
SECTION 8. Arkansas Code § 14-58-303 is amended to read as follows:
14-58-308. Bonds of officers and employees.
(a) All officers and employees of a city of the first class, city of
the second class, or incorporated town handling financial matters for the
city or town shall furnish a fidelity bond in such amount, on such form, and
with such security as may be approved by the municipal governing body.
(b) The premiums on these bonds shall be paid by the city or town.
APPROVED: 3/24/21
7 3/2/2021 1:53:20 PM KLL044
Stricken language would be deleted from and underlined language would be added to present law.
Act 440 of the Regular Session
1 State of Arkansas As Engrossed: S3111121
2 93rd General Assembly A Bill
3 Regular Session, 2021 SENATE BILL 305
4
5 By: Senators Caldwell, Irvin
6 By: Representative Holcomb
7
8 For An Act To Be Entitled
9 AN ACT TO AMEND THE AWARD PROCEDURE FOR PUBLIC
10 IMPROVEMENT CONTRACTS; AND FOR OTHER PURPOSES.
11
12
13 Subtitle
14 TO AMEND THE AWARD PROCEDURE FOR PUBLIC
15 IMPROVEMENT CONTRACTS.
16
17
18 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
19
20 SECTION 1. Arkansas Code § 22-9-101(b)(1), concerning the requirement
21 for observation by registered professionals on public property contracts, is
22 amended to read as follows:
23 (1) For an engineering project does not exceed twenty e
24 '-:hemA^^a dollars ($25, 00) fifty thousand dollars ($50,000); or
mi
26 SECTION 2. Arkansas Code § 22-9-201(c), concerning the award of
27 contracts on public property, the applicability of §§ 22-9-202 — 2-9-204, and
28 emergency contracting procedures, is amended to add an additional subdivision
29 to read as follows:
30 (6) An emergency contract made under emergency contracting
31 procedures under this section shall not be authorized by a county or
32 municipality unless:
33 (A) The emergency contract is to address an unforeseen and
34 unavoidable emergency in which human life, health, or public property is in
35 jeopardy; and
36 (B) A written statement is attached to the emergencv
As Engrossed: S3/11/21
SB305
1 contract that describes the emergency necessitating the emergency contract
2 being entered into without compliance under § 22-9-203.
3
4 SECTION 3. Arkansas Code § 22-9-202(b)(2)(C), concerning the statutory
5 construction of sections regarding the award of public works contracts, is
6 amended to read as follows:
7 (C) Construction work from one (1) or more separate
8 contractors under separate contract or invoice so that the work is not
9 included in calculating the bid requirement threshold of thirty five thousand
10 dollars ($35 000) fifty thousand dollars ($50,000).
11
12 SECTION 4. Arkansas Code § 22-9-202(c), concerning the statutory
13 construction of sections regarding the award of public works contracts, is
14 amended to read as follows:
15 (c) This section and §§ 22-9-203 and 22-9-204 do not amend or repeal
16 any law that requires the publication of notice in those instances in which
17 the estimated amount of the cost of the proposed improvements within the
18 scope of the contract is more than thirty -five thousand dollars ($35,000)
19 fifty thousand dollars ($50,000).
20
21 SECTION 5. Arkansas Code § 22-9-203(a), concerning the award procedure
22 for public improvements, is amended to read as follows:
23 (a) Except as provided under § 14-58-105, a contract providing for the
24 making of major repairs or alterations, for the erection of buildings or
25 other structures, or for making other permanent improvements shall not be
26 entered into by the state or an agency of the state or by a county,
27 municipality, school district, or other local taxing unit with any contractor
28 in instances in which all estimated costs of the work exceed the sum of
29 thirty five thous -And doll, ($35 000) fifty thousand dollars ($50,000)
30 unless:
31 (1) The state or any agency of the state shall have first
32 published notice of its intention to receive bids one (1) time each week for
33 not less than two (2) consecutive weeks for projects more than the amount of
34 fifty thousand dollars ($50,000) and published notice of its intention to
35 receive bids one (1) time each week for not less than one (1) week for
36 projects more than the quote bid limit, as provided under the minimum
2 03-11-2021 09:46:26 MLD007
As Engrossed: S3/11/21
SB305
1 standards and criteria of the Building Authority Division, but less than or
2 equal to fifty thousand dollars ($50,000) in a newspaper of general
3 circulation published in the county in which the proposed improvements are to
4 be made or in a trade journal reaching the construction industry; and
5 (2)(A) The county, municipality, school district, or other local
6 taxing unit shall have first published notice of its intention to receive
7 bids one (1) time each week for not less than two (2) consecutive weeks in a
8 newspaper of general circulation published in the county in which the
9 proposed improvements are to be made.
10 (B) In addition to the publication of notice required
11 under subdivision (a)(2)(A) of this section, the county, municipality, school
12 district, or other local taxing unit:
13 (i) May also publish notice in a trade journal
14 reaching the construction industry; and
15 (ii) If the county, municipality, school district,
16 or other local taxing unit is accepting electronically submitted bids, shall
17 also post notice on the website of a vendor selected under the Fair Notice
18 and Efficiency in Public Works Act, § 22-9-901 et seq.
19
20 SECTION 6. Arkansas Code § 22-9-203(c)(2)(A)(ii) and (iii), concerning
21 public improvement award procedures and requirements, are amended to read as
22 follows:
23 (ii) Every bid submitted on public construction
24 contracts for the state or any agency or department of the state is void
25 unless accompanied by a cashier's check drawn upon a bank or trust company
26 doing business in this state or by a corporate bid bond, except for projects
27 under thirty€i tlaeusand dollars ($35 000) fifty thousand dollars
28 ($50,000).
29 (iii) A bid bond is not required for public
30 construction contracts for the state or any agency or department of the state
31 under or equal to thirty €i +hous-A a dollars ($35 000) fifty thousand
32 dollars ($50,000).
33
34 SECTION 7. Arkansas Code § 22-9-209(a)(1), concerning advertising
35 contracts for the renovation of historic sites, is amended to read as
36 follows:
3 03-11-2021 09:46:26 MLD007
As Engrossed: S3/11/21
SB305
1
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(a)(1) A contract for the altering, repairing, or renovation of a
recognized historic site or structure owned by the state or with title vested
in the name of a state agency or of another taxing authority in which the
estimated cost of the work equals or exceeds the sum of thirty—five thousand
dollars ($35 000) fifty thousand dollars ($50,000) shall not be entered into
between the state agency or taxing authority and any contractor unless the
state agency or taxing authority has first published notice of intention to
receive bids for improvements one (1) time each week for not less than two
(2) consecutive weeks in a newspaper of general circulation published in the
county in which the proposed improvements are to be made.
Is/Caldwell
APPROVED: 3/24/21
4 03-11-2021 09:46:26 MLD007
NORTHWEST ARKAwms
Democrat is C azette
PC), 9CX 1607. FAY_FE,ILLC•. AP. 727C,2.470.J,t'-1 70:, , FAx: 4??•65rP1d 7 r1rN1tiADG - u
AFFIDAVIT OF PUBLICATION
I, Brittany Smith, do solemnly swear that I am the Accounting Legal Clerk of the Northwest Arkansas
Democrat -Gazette, a daily newspaper printed and published in said County, State of Arkansas; that I was so
related to this publication at and during the publication of the annexed legal advertisement
the matter of. Notice pending in the Court, in said County, and at the dates of
the several publications of said advertisement stated below,
and that during said periods and at said dates, said newspaper
was printed and had a bona fide circulation in said County;
that said newspaper kad been regularly printed and published
in said County, and had a bona fide circulation therein for the
period of one month before the date of the first publication of
said advertisement; and that said advertisement was published
in the regular daily issues of said newspaper as stated below.
City of Fayetteville
Ord 6502
Was inserted in the Regular Edition on:
November 7, 2021
Publication Charges: $259.92
L5�_ �r1n+y
Brittany Smith
Subscribed and sworn to before me
This g day of p�j �/ , 2021.
Cathy Wiles
Benton COUNTY
TARY PUBLIC — ARKANSAS
Coml-nission
Expires 02-20-2024
No, 1239J7118
Notary Public
My Commission Expires: z�
**NOTE** Please do not pay from Affidavit
Invoice will be sent.
Ordinance: 6502
File Number: 2021-0905
AMEND §34.23 PURCHASES AND
CONTRACTS NOT IN EXCESS OF
$20,000.00:
AN ORDINANCE TO AMEND
§34.23 PURCHASES AND
CONTRACTS NOT IN EXCESS OF
$20,000.00 TO INCREASE THE
COMPETITIVE BIDDING
THRESHOLD FOR GOODS AND
SERVICES TO $35,000.00 AND TO
ENACT §34.24 CONTRACTS FOR
PUBLIC IMPROVEMENTS NOT IN'.
EXCESS OF $50,000.00
WHEREAS, Act 435 of 2021
amended the statutory competitive
bidding threshold in Ark. Code Ann.
§ 14-58-303(b) for goods and services
from $20,000.00 to $35,000.00; and
WHEREAS, Act 440 of 2021
amended the statutory competitive
bidding threshold in Ark. Code Ann.
§ 22-9-203 for public improvement
contracts from $35 000.00 to
$50,000.00.
NOW, THEREFORE, BE IT
ORDAINED BY THE CITY
COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section I : That the City Council of
the City of Fayetteville, Arkansas
hereby repeals §34.23 ofthe
Fayetteville Code and replaces it with
a new §34.23 as shown below:
"§34.23 Purchases and contracts not
in excess of $35,000.00.
(A) All such purchases not in
excess of $35,000,00 shall be made
by the Mayor, or the Mayor's duly
authorized representative, after the
securing and recording of quotation
bids therefor, provided quotation bids
need not be secured for purchases
under $5,000.00.
(B) Cost -share agreements
with developers or governmental
entities for the improvement of city
infrastructure are expressly exempt
from the requirements of this section.
The City Council shall signify its
approval of cost -share agreements by
resolution-
(C) Contracts not in excess of
$35,000.00 shall be made and entered
into by the Mayor The Mayor, or the
Mayor's designee, shall have the
authority to approve contract change
orders up to the contingency amount,
if any, as set forth in any approved
contract even though such
contingency amount may exceed
$35,000.00.
(D) The hiring or engagement
of professional services shall be
conducted according to a professional
hiring policy approved by the City
(E) Sole Source Provider.
Multiple quotation bids shall not be
required if the Purchasing Manager
approves the Sole Source Justification
form signed by the requesting division
head for an item that is uniquely
compatible with existing equipment or
has unique and essential design or
performance features Pursuant to Ark.
Code Ann. § 14-58-104(2 1 ), a written
proclamation from the Mayor shall be
filed with the City Clerk -Treasurer
setting forth the basis for the single
source procurement
(F) Exempt Goods and
Services. Goods and services
recognized as exempt from
competitive bidding under Arkansas
law shall not require a Sole Source
Justification, quotations, or
competitive bidding.
(G) Waiver of the Requirement
for Bids. The City Council, by
ordinance, may waive the requirements
of this section for competitive bids or
quotes in exceptional situations where
this procedure is deemed not feasible
or practical."
Section 2: That the City Council of the
City of Fayetteville, Arkansas hereby
enacts a new §34.24
Contracts for Public Improvements
Not In Excess of $50,000.00 as shown
below: "§34.24 Contracts for Public
Improvements Not In Excess of
$50,000.00
All contracts not in excess of
$50,000.00 for the making of major
repairs or alterations, for the erection
of buildings or other structures, or for
making other permanent improvements
shall be made by the Mayor, or the
Mayor's duly authorised
representative, after the securing and
recording of quotation bids therefor."
PASSED and APPROVED on
I I /RI2021
Approved:
Lionetd Jordan, Mayor
Kara Paxton, City Clerk Treasurer
Paid for by: The City Clerk -Treasurer
of the City of Fayetteville, Arkansas.
Amount paid: $259 92. 75486521
Nov 7, 2021
113 West Mountain Street
Fayetteville, AR 72701
(479)575-8323
Ordinance: 6502
File Number: 2021-0805
AMEND §34.23 PURCHASES AND CONTRACTS NOT IN EXCESS OF $20,000.00:
AN ORDINANCE TO AMEND §34.23 PURCHASES AND CONTRACTS NOT IN EXCESS
OF $20,000.00 TO INCREASE THE COMPETITIVE BIDDING THRESHOLD FOR GOODS
AND SERVICES TO $35,000.00 AND TO ENACT §34.24 CONTRACTS FOR PUBLIC
IMPROVEMENTS NOT IN EXCESS OF $50,000.00
WHEREAS, Act 435 of 2021 amended the statutory competitive bidding threshold in Ark. Code
Ann. § 14-58-303(b) for goods and services from $20,000.00 to $35,000.00; and
WHEREAS, Act 440 of 2021 amended the statutory competitive bidding threshold in Ark. Code
Ann. § 22-9-203 for public improvement contracts from $35,000.00 to $50,000.00.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby repeals §34.23 of the
Fayetteville Code and replaces it with a new §34.23 as shown below:
"§34.23 Purchases and contracts not in excess of $35,000.00.
(A) All such purchases not in excess of $35,000.00 shall be made by the Mayor, or the Mayor's duly
authorized representative, after the securing and recording of quotation bids therefor; provided
quotation bids need not be secured for purchases under $5,000.00.
(B) Cost -share agreements with developers or governmental entities for the improvement of city
infrastructure are expressly exempt from the requirements of this section. The City Council shall
signify its approval of cost -share agreements by resolution.
Page 1 Printed on 1113121
Ordinance: 6502
File Number: 2021-0805
(C) Contracts not in excess of $35,000.00 shall be made and entered into by the Mayor. The Mayor,
or the Mayor's designee, shall have the authority to approve contract change orders up to the
contingency amount, if any, as set forth in any approved contract even though such contingency
amount may exceed $35,000.00.
(D) The hiring or engagement of professional services shall be conducted according to a professional
hiring policy approved by the City Council.
(E) Sole Source Provider. Multiple quotation bids shall not be required if the Purchasing Manager
approves the Sole Source Justification form signed by the requesting division head for an item that
is uniquely compatible with existing equipment or has unique and essential design or performance
features. Pursuant to Ark. Code Ann. § 14-58-104(21), a written proclamation from the Mayor
shall be filed with the City Clerk -Treasurer setting forth the basis for the single source
procurement.
(F) Exempt Goods and Services. Goods and services recognized as exempt from competitive
bidding under Arkansas law shall not require a Sole Source Justification, quotations, or
competitive bidding.
(G) Waiver of the Requirement for Bids. The City Council, by ordinance, may waive the
requirements of this section for competitive bids or quotes in exceptional situations where this
procedure is deemed not feasible or practical."
Section 2: That the City Council of the City of Fayetteville, Arkansas hereby enacts a new §34.24
Contracts for Public Improvements Not In Excess of $50,000.00 as shown below:
"§34.24 Contracts for Public Improvements Not In Excess of $50,000.00
All contracts not in excess of $50,000.00 for the making of major repairs or alterations, for the
erection of buildings or other structures, or for making other permanent improvements shall be made
by the Mayor, or the Mayor's duly authorized representative, after the securing and recording of
quotation bids therefor."
PASSED and APPROVED on 11/2/2021
Approved:
Lioneld Jordan, Mayor
Page 2
Attest:
Kara Paxton, City Clerk Treasurer
Printed on 1113121
This publication was paid for by the City Clerk -Treasurer of the City of Fayetteville, Arkansas.
Amount paid: $ 259.92
Even v7 SS
N\AiAom
ividdm
Account #: NWCL5004205
Company: CITY OF FAYETTEVILLE-CLERKS OFFI
113 W MOUNTAIN
FAYETTEVILLE, AR 72701
Ad number #: 513430
PO #:
Matter of: ORD 6882
AFFIDAVIT • STATE OFARKANSAS
ECEIVE
1 06/10/2025 iD
CITY OF FAYETTEVIUx
CITY CLERK'S OFFICE
I, Maria Hernandez -Lopez , do solemnly swear that I am the Legal Clerk of the NWA Democrat Gazette, a daily
newspaper printed and published in WASHINGTONBENTON county, State of ARKANSAS; that I was so related to
this publication at and during the publication of the annexed legal advertisement in the matter of
ORD 6882
Pending in the court, in said County, and at the dates of the several publications of said advertisement stated below, and
that during said periods and at said dates, said newspaper was printed and had a bona fide circulation in said County,
that said newspaper had been regularly printed and published in said county, and had a bona fide circulation therein for
the period of one month before the date of the first publication of said advertisement; and that said advertisement was
published in the regular daily issues of said newspaper as stated below.
And that there is due or has been paid the NWA Democrat Gazette for publication the sum of $183.92.
(Includes $0.00 Affidavit Charge).
NWA Democrat Gazette 06108125, NWA nwaonline.com 06108125
74 � �Leg=1erk
State ofARKANSAS, County of Sebastian
Subscribed and sworn to before me on this 9th day of June, 2025
NOTARY PUBLIC
Ordinance: 6882
File Number: 2025-684
AN ORDINANCE TO INCREASE
THE COMPETITIVE BIDDING
THRESHOLD TO $40.000.00 BY
AMENDING § 34.23 OF THE
FAYETTEVILLE CODE OF ORDI-
NANCES
WHEREAS, Act 435 of 2021
amended Arkansas state pro-
curement law concerning com-
petitive bidding and purchasing
procedures and allowed munic-
ipalities to increase bidding
thresholds up to $35,000.00 for
goods and services; and
WHEREAS, on November 2,
2021, City Council passed Ordi-
nance 6502 that modified the
competitive bidding threshold
for purchases and contracts for
Cods and services from
0,000.00 to $35,000.00; and
WHEREAS, Ark. Code Ann. §
14-58-303(b) authorizes an an-
nual adjustment to the bidding
threshold to reflect the percent-
age increase in the Consumer
Price Index; and
WHEREAS, the percentage in-
crease and corresponding up-
dated amounts are provided by
the Arkansas Department of Fi-
nance and Administration (DFA)
who determined on January 1,
2025 the percentage Increase
to be 22.63%, thereby adjusting
the bidding threshold to
$42,921.00 for cities and coun-
ties in Arkansas; and
WHEREAS, staff recommends
approval of an increase of the
bidding threshold to $40,000.00
because it will help streamline
operations, increase staff effi-
ciency, and speed up processing
time for end -user departments
and divisions to procure goods
8nd services.
NOW, THEREFORE, BE IT OR-
DAINED BY THE CITY COUNCIL
OF THE CITY OF FAYETTEVILLE,
ARKANSAS:
Section 1: That the City Coun-
cil of the City of Fayetteville,
Arkansas hereby repeals the
title of § 34.23 and enacts a re-
placement title "Purchases and
Contracts for Goods and Serv-
ices Not in Excess of
$40,000.00."
Section 2: That the City Coun-
cil of the City of Fayetteville,
Arkansas hereby repeals the
first sentence of § 34.23(C) and
enacts a replacement as fol-
lows: "Contracts for goods and
services not in excess of
$40,000.00 shall be made by
the Mayor."
Section 3: That the City Coun-
cil of the City of Fayetteville,
Arkansas hereby replaces
$35.000.00 in the last sentence
of § 34.23(C) with $40,000.00.
Section 4: That the City Coun-
cil of the City of Fayetteville.
Arkansas hereby amends §
34.23E) by changing "Purchas-
ing Manager" to
"Purchasing/Procurement Di-
rector."
PASSED and APPROVED on
June 3, 2025
Approved:
Molly Rawn, Mayor
Attest:
Kara Paxton,
City Clerk Treasurer
This publication was paid for
by the City Clerk -Treasurer of
the City of Fayetteville,
Arkansas,
Amount Paid: $183.92
June 8, 2025 513430