HomeMy WebLinkAboutOrdinance 6502113 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 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.
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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 Soitrc•e 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: ��,%!I��K f 7,,, or,
•
FAME 117DVILLE �-
Kara Paxton, City Clerk Treasurer ;
��.� ' y'Qfr • PS� ��
,ON„�,,,,,,
Page 2 Printed on 1113121
City of Fayetteville, Arkansas 113 West Mountain Street
Fayetteville, AR 72701
(479)575-8323
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:
Original Contract Number:
Comments:
Approval Date:
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
Stricken language would be deleted from and underlined language would be added to present law.
Act 435 of the Regular Session
1 State of Arkansas
2 93rd General Assembly A Bill
3 Regular Session, 2021 SENATE BILL 456
4
5 By: Senator G. Stubblefield
6 By: Representative L. Fite
7
8 For An Act To Be Entitled
9 AN ACT TO AMEND THE LAW CONCERNING COMPETITIVE
10 BIDDING AND PURCHASING PROCEDURES FOR COUNTIES AND
11 MUNICIPALITIES; AND FOR OTHER PURPOSES.
12
13
14 Subtitle
15 TO AMEND THE LAW CONCERNING COMPETITIVE
16 BIDDING AND PURCHASING PROCEDURES FOR
17 COUNTIES AND MUNICIPALITIES.
18
19
20 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
21
22 SECTION 1. Arkansas Code § 14-22-102 is amended to read as follows:
23 14-22-102. Applicability.
24 (a) It is unlawful for any a county official to make any purehases a
25 purchase with county funds in excess of twenty '-heus—And-'^" ^r^ ($20 nnn+
26 thirty-five thousand dollars ($35,000), unless the method of purchasing
27 prescribed in under this chapter is followed.
28 (b) This chapter shall does not apply to any purchases a purchase
29 under twenty '-heus^^-' a^" ^r^ ($20 nnn4 thirty-five thousand dollars
30 ($35,000) or to the purchase of commodities set €e rtli is under § 14-22-106.
31 (c)(1) Beginning January 1, 2025, and on each January 1 at subsequent
32 five-year intervals, the amounts under subsections (a) and (b) of this
33 section shall be adjusted to reflect the percentage increase in the Consumer
34 Price Index for All Urban Consumers or its successor, as published by the
35 United States Department of Labor for the five (5) years immediately
36 preceding the percentage increase, and rounded to the nearest whole number.
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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 purehases of eemmodities (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 pmrchases purchase may be made of any
15 eommodities 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) Na 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 Dercentaae 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 Dercentage 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;
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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€eels, 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 vehicle ispureh-ased for an amount not to eiceeed the fleet priee
'awarded by the Of€Lee of State Preeurement and in of€eet at the —time —thz
body f ty f the first elass, eity of the seeend
cTi cixxieipaxgoverning ooa�ox a exc�ox �
elassf
or an ineorporated town submits the purehase order for the same make
and model motorvehiele. 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.
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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 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 Dublic 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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1 (19) Purchase
2 without limitation health
of insurance for municipal employees, including
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-munielpal generning bedy e€ a elty of the i s elass, city e-f
22
23 existing eentraet wit-h-e-ut sellelting-blds
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 ml
28 governing body of any city of the first class shall provide by ordinance the
29 procedure for making all purchases whit-k that do not exceed the sum of twenty
30 #-:hnm^^-'a dollars ($20 000) thirty-five thousand dollars ($35,000).
31 (B) Except as provided under § 14-58-104, the munleipal
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 }heus-And a^1-1 ( $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 shell 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 DercentaQe 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 T-he 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 is governed by the rovisiees 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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(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
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Stricken language would be deleted from and underlined language would be added to present law.
Act 440 of the Regular Session
State of Arkansas As Engrossed: S3111121
93rd General Assembly A Bill
Regular Session, 2021 SENATE BILL 305
By: Senators Caldwell, Irvin
By: Representative Holcomb
For An Act To Be Entitled
AN ACT TO AMEND THE AWARD PROCEDURE FOR PUBLIC
IMPROVEMENT CONTRACTS; AND FOR OTHER PURPOSES.
Subtitle
TO AMEND THE AWARD PROCEDURE FOR PUBLIC
IMPROVEMENT CONTRACTS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
SECTION 1. Arkansas Code § 22-9-101(b)(1), concerning the requirement
for observation by registered professionals on public property contracts, is
amended to read as follows:
(1) For an engineering project does not exceed twenty five
'-:hemA^^a dollars 'c' 0) fifty thousand dollars ($50,000); or
SECTION 2. Arkansas Code § 22-9-201(c), concerning the award of
contracts on public property, the applicability of §§ 22-9-202 — 2-9-204, and
emergency contracting procedures, is amended to add an additional subdivision
to read as follows:
(6) An emergency contract made under emergency contracting
procedures under this section shall not be authorized by a county or
municipality unless:
(A) The emergency contract is to address an unforeseen and
unavoidable emergencv in which human life, health, or Dublic DroDerty is in
eopardy; and
B) A written statement is attached to the emer
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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 fi theusand dell rs ($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
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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 t4s^..^^^a dell rs ($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 thous -Ana 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:
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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
NORRIWEST ARKAIW
Democrat ifi0azette
P.O. WAX IE01. Fp.YET'T1:VILLK. i%. 727C.2. 47?•44_ PGO • F..AX 4?9.69 P18 \'lllYf.MY SDti COW
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
9 A - 5,Vx_
Brittany Smith
Subscribed and sworn to before me
This S� day of jU O/ , 2021.
Cathy Wiles
Benton COUNTY
TARY PUBLIC - ARKANSAS
COommission Expires 02-20-2024
No, 123971'18
Notary Public J
My Commission Expires: !L�
**NOTE** Please do not pay from Affidavit
Invoice will be sent.
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 S20,000.00 to S35,000.00, 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 S35,000.00 shall be made
by the Mayor, or the Mayors duly
authorized representative, after the
securing and recording of quotation
bids therefor, provided quotation bids
need not be secured for purchases
under S5,00o.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
Mayors designee, shall have the
authority to approve contract flange
orders up to the contingency amount,
irony, as set forth in any approved
contract even though such
contingency amount may exceed
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 Purt:iasing 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. "§3424 Contracts for Public
Improvements Not In Excess of
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
1I=021
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
(D) The hiring or engagement ! I I