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H0743aa.................................................by LOCAL GOVERNMENT
CITIES AND COUNTIES - PURCHASING - Amends existing law to provide a
procedure for city and county purchases for contracts which do not exceed
one year if there is only one source for the purchase of the property.
02/17 House intro - 1st rdg - to printing
02/18 Rpt prt - to Loc Gov
02/27 Rpt out - to Gen Ord
03/04 Rpt out amen - to engros
03/05 Rpt engros - 1st rdg - to 2nd rdg as amen
03/06 2nd rdg - to 3rd rdg as amen
03/11 3rd rdg as amen - PASSED - 68-0-2
AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Bivens,
Black(15), Black(23), Boe, Bruneel, Callister, Campbell, Chase,
Clark, Crane, Cuddy, Deal, Denney, Ellsworth, Field(13), Field(20),
Gagner, Geddes, Gould, Hadley, Hansen, Henbest, Hornbeck, Jaquet,
Jones(9), Jones(22), Jones(20), Judd, Kempton, Kendell, Kjellander,
Kunz, Lake, Linford, Loertscher, Mader, Marley, McKague, Meyer,
Miller, Mortensen, Newcomb, Pischner, Pomeroy, Reynolds, Richman,
Ridinger, Robison, Sali, Schaefer, Stevenson, Stoicheff, Stone,
Stubbs, Taylor, Tilman, Tippets, Trail, Watson, Wheeler, Wood,
Zimmermann, Mr Speaker
NAYS -- None
Absent and excused -- Crow, Kellogg,
Floor Sponsor - Stone
Title apvd - to Senate
03/12 Senate intro - 1st rdg as amen - to Loc Gov
03/18 Rpt out - rec d/p - to 2nd rdg as amen
03/19 2nd rdg - to 3rd rdg as amen
03/20 3rd rdg as amen - PASSED - 33-0-2
AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
Crow, Darrington, Deide, Dunklin, Frasure, Geddes, Hansen, Hawkins,
Ingram, Ipsen, Keough, King, Lee, McLaughlin, Noh, Parry, Richardson,
Riggs, Risch, Sandy, Schroeder, Sorensen, Stennett, Sweeney, Thorne,
Wheeler, Whitworth
NAYS--None
Absent and excused--Danielson, Twiggs
Floor Sponsor - Geddes
Title apvd - to House
03/23 To enrol - rpt enrol - Sp signed
03/24 Pres signed - to Governor
03/25 Governor signed
Session Law Chapter 397
Effective: 07/01/98
H0743|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fourth Legislature Second Regular Session - 1998IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 743, As Amended BY LOCAL GOVERNMENT COMMITTEE 1 AN ACT 2 RELATING TO CITY AND COUNTY PURCHASING PROCEDURES; AMENDING SECTION 31-4003, 3 IDAHO CODE, TO AUTHORIZE COUNTY COMMISSIONERS TO PROCURE PROPERTY THROUGH 4 A STREAMLINED PROCEDURE WHEN THERE IS ONLY ONE SOURCE FOR PROCUREMENT OF 5 SUCH PROPERTY; AND AMENDING SECTION 50-341, IDAHO CODE, TO AUTHORIZE CIT- 6 IES TO PROCURE PROPERTY THROUGH A STREAMLINED PROCEDURE WHEN THERE IS ONLY 7 ONE SOURCE FOR THE PURCHASE OF SUCH PROPERTY AND TO MAKE A TECHNICAL COR- 8 RECTION. 9 Be It Enacted by the Legislature of the State of Idaho: 10 SECTION 1. That Section 31-4003, Idaho Code, be, and the same is hereby 11 amended to read as follows: 12 31-4003. EXPENDITURES FOR WHICH BIDS REQUIRED. (1) Unless 13 otherwise provided in this chapter, when the expenditure contemplated exceeds 14 five thousand dollars ($5,000), but not twenty-five thousand dollars 15 ($25,000), the county shall obtain price or cost quotations from at least 16 three (3) responsible vendors in the business of supplying such goods or ser- 17 vices. To enhance small business bidding opportunities, the county shall seek 18 a minimum of three (3) price quotations from registered vendors having a sig- 19 nificant Idaho economic presence as defined in section 67-2349, Idaho Code. If 20 the county finds that it is impractical or impossible to obtain three (3) quo- 21 tations for the proposed transaction, the county may acquire the property in 22 any manner the county deems best. The county shall then procure the goods or 23 services from the responsible vendor quoting the lowest price. When the expen- 24 diture contemplated exceeds twenty-five thousand dollars ($25,000), it shall 25 be contracted for and let to the lowest responsible bidder. Where both the 26 bids and quality of property offered are the same, preference shall be given 27 to the property of local and domestic production and manufacture or from bid- 28 ders having a significant Idaho economic presence as defined in section 29 67-2349, Idaho Code. 30 (2) Upon resolution by the board of county commissioners that there 31 is only one (1) vendor as a source of procurement and the procurement involves 32 a contract which does not exceed one (1) year, then notice of a sole source 33 procurement shall be published in a newspaper of general circulation printed 34 or published in the county or having general circulation in the county, at 35 least ten (10) working days prior to the award of the contract. For purposes 36 of this section, only one (1) vendor shall refer to situations where there is 37 only one (1) source reasonably available, and shall include, but is not lim- 38 ited to: 39 (a) Where the compatibility of equipment, components, accessories, com- 40 puter software, replacement parts or service is the paramount consider- 41 ation; 42 (b) Where a sole supplier's item is needed for trial use or testing; 43 (c) Purchase of mass-produced movies, videos, books or other copyrighted 2 1 materials; 2 (d) Purchase of property for which it is determined there is no func- 3 tional equivalent; 4 (e) Purchase of public utility services; 5 (f) Purchase of products, merchandise or trademarked goods for resale at 6 a county facility; or 7 (g) Where competitive solicitation is impractical, disadvantageous or 8 unreasonable under the circumstances. 9 SECTION 2. That Section 50-341, Idaho Code, be, and the same is hereby 10 amended to read as follows: 11 50-341. COMPETITIVE BIDDING -- APPLICATION OF LAW. A. The following pro- 12 visions relative to competitive bidding apply to all cities of the state of 13 Idaho, but shall be subject to the provisions of any specific statute pertain- 14 ing to the letting of any contract, purchase or acquisition of any commodity 15 or thing by soliciting and receiving competitive bids therefor, and shall not 16 be construed as modifying or amending the provisions of any statute, nor pre- 17 venting the city from doing any work by its own employees. 18 B. The word "expenditure" shall mean the granting of a contract, exclu- 19 sive franchise or authority to another by the city, and every manner and means 20 whereby the city disburses funds or obligates itself to disburse funds; pro- 21 vided, however, that "expenditure" does not include disbursement of funds to 22 any city employee, official, agent, or for the performance of personal ser- 23 vices to the city, or for the acquisition of personal property through a con- 24 tract that has been competitively bid by the state of Idaho, one of its subdi- 25 visions or an agency of the federal government. 26 C. When the expenditure contemplated exceeds five thousand dollars 27 ($5,000) but not twenty-five thousand dollars ($25,000), the city shall obtain 28 price or cost quotations from at least three (3) responsible vendors in the 29 business of supplying such goods or services. To enhance small business bid- 30 ding opportunities, the city shall seek a minimum of three (3) price quota- 31 tions from registered vendors having a significant Idaho economic presence as 32 defined in section 67-2349, Idaho Code. If the city finds that it is impracti- 33 cal or impossible to obtain three (3) quotations for the proposed transaction, 34 the city may acquire the property in any manner the city deems best. The city 35 shall then procure the goods or services from the responsible vendor quoting 36 the lowest price. When the expenditure contemplated exceeds twenty-five thou- 37 sand dollars ($25,000) the expenditure shall be contracted for and let to the 38 lowest responsible bidder. Where both the bids and quality of property offered 39 are the same, preference shall be given to property of local and domestic pro- 40 duction and manufacture or from bidders having a significant Idaho economic 41 presence as defined in section 67-2349, Idaho Code. 42 D. The notice inviting bids shall set a date and place for the opening of 43 bids. The first publication of the notice shall be at least two (2) weeks 44 before the date of opening the bids. Notice shall be published at least twice, 45 not less than one (1) week apart, in the official newspaper of the city. The 46 notice shall succinctly set forth the project to be done. Any of the following 47 documents shall be made available, upon reasonable deposit, to any interested 48 bidder: bid form, bidder's instructions, contract documents, general and spe- 49 cial instructions, drawings and specifications. 50 E. All bids shall be presented or otherwise delivered under sealed cover 51 to the city clerk, or other bonded agent of the city designated by the city 52 council to receive specific bids, with a concise statement marked on the out- 53 side generally identifying the expenditure to which the bid pertains. If the 3 1 city deems it is in the city's best interest it may require the vendor to pro- 2 vide bid security in one (1) of the following forms: 3 a. Cash; 4 b. Cashier's check made payable to the city; 5 c. A certified check made payable to the city; 6 d. A bidder's bond executed by a qualified surety company, made payable 7 to the city. 8 F. The security, if required by the city, shall be an amount equal to at 9 least fiveper centpercent (5%) of the amount bid. 10 If required, a bid shall not be considered unless one (1) of the forms of 11 bidder's security is inclosed with it, and unless the bid is submitted in a 12 form which substantially complies with the form provided by the city. 13 G. Any bid received by the city may not be withdrawn after the time set 14 in the notice for opening of bids. All bids received must be opened at the 15 time and place set in the notice inviting bids, and no person shall be denied 16 the right to be present at the opening of bids. 17 H. If the successful bidder fails to execute the contract, the amount of 18 his bidder's security shall be forfeited to the city and the proceeds shall be 19 deposited in the fund out of which the expenses of preparation and printing of 20 the plans and specifications, estimates of costs and publication of notice are 21 paid. 22 I. The city may, on refusal or failure of the successful bidder to exe- 23 cute the contract, award it to the next lowest responsible bidder. If the city 24 council awards the contract to the next lowest responsible bidder, the amount 25 of the lowest responsible bidder's security shall be applied by the city to 26 the difference between the lowest responsible bid and the next lowest respon- 27 sible bid, and the surplus, if any, shall be returned to the lowest bidder if 28 cash or check is used, or to the surety on the bidder's bond if a bond is 29 used. 30 J. In its discretion, the city council may reject any bids presented and 31 readvertise. If two (2) or more bids are the same and the lowest responsible 32 bids, the city council may accept the one it chooses. If no bids are received, 33 the council may make the expenditure without further compliance with this sec- 34 tion. 35 K. After rejecting bids, the city council may, after finding it to be a 36 fact, pass a resolution declaring that the thing sought to be accomplished by 37 the expenditure can be performed more economically by day labor, or the mate- 38 rials or supplies furnished at a lower price in the open market. Upon adoption 39 of the resolution, it may have the thing sought to be accomplished done in the 40 manner stated without further compliance with this section. 41 L. If there is a great public calamity, as an extraordinary fire, flood, 42 storm, epidemic or other disaster, or if it is necessary to do emergency work 43 to prepare for national or local defense, or if it is necessary 44 to do emergency work to safeguard life, health or property, or for con- 45 tracts which do not exceed one (1) year if there is only one (1) vendor for 46 the property to be acquired, the mayor or city manager may declare that 47 an emergency exists and that the public interest and necessity demand the 48 immediate expenditure of public money to safeguard life, health or 49 property , or declare that there is only one (1) vendor for the property 50 . Upon making the declaration of emergency , any sum 51 required in the emergency may be expended without compliance with this sec- 52 tion. Upon declaration of only one (1) vendor, unless the property is 53 required for a life-threatening situation or a situation that is immediately 54 detrimental to the public welfare or property, notice of a sole source pro- 55 curement shall be published in the official newspaper of the city at least ten 4 1 (10) working days prior to the award of the contract. For purposes of this 2 section, only one (1) vendor shall refer to situations where there is only one 3 (1) source reasonably available, and shall include, but is not limited to: 4 a. Property required to respond to a life-threatening situation or a 5 situation which is immediately detrimental to the public welfare or prop- 6 erty; 7 b. Where the compatibility of equipment, components, accessories, com- 8 puter software, replacement parts or service is the paramount consider- 9 ation; 10 c. Where a sole supplier's item is needed for trial use or testing; 11 d. Purchase of mass-produced movies, videos, books or other copyrighted 12 materials; 13 e. Purchase of property for which it is determined there is no functional 14 equivalent; 15 f. Purchase of public utility services; 16 g. Purchase of products, merchandise or trademarked goods for resale at a 17 city facility; or 18 h. Where competitive solicitation is impractical, disadvantageous or 19 unreasonable under the circumstances. 20 M. In its discretion, the city council may purchase equipment at a public 21 auction, if the council has made a finding that such equipment may be pur- 22 chased at a lower price.
STATEMENT OF PURPOSE
RS 08044C1
This legislation would allow cities to use a
streamlined purchasing process when goods to be purchased are
sold only by one vendor, or for contracts which do not exceed
one (1) year if there is only one vendor for the property be
acquired. Under this process the city must publish notice of
its intent to purchase from a single vendor. Unless someone
objects to the proposed purchase, other bids do not need to be
solicited, thus making the process quicker, simpler and less
costly. The State of Idaho currently has the same sole source
purchasing authority which this legislation would grant to
cities.
FISCAL NOTE
There is no fiscal impact on state funds. There could be
a modest savings to cities.
CONTACT:
Ken McClure
388-1200
STATEMENT OF PURPOSE/FISCAL NOTE
H 743