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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. 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 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. 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 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; 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 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. 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 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; 4 3/2/2021 1:53:20 PM KLL044 SB456 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: 6 3/2/2021 1:53:20 PM KLL044 SB456 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 (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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 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 03-11-2021 09:46:26 MLD007 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 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 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 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: 3 03-11-2021 09:46:26 MLD007 As Engrossed: S3/11/21 SB305 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 (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