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FY2022-20 Amending Title 3 Revenue And Finance, Chapter 3.30 Contract, Purchase, Sale, And Transfer Procedures Section 3.30.030 Open Market Procedures1 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 37 38 39 40 41 42 43 44 Introduced by: Borough Assembly Drafted by: Assembly Member Williams Introduced on: 05/19/2022 Public Hearing Date:06/02/2022 Amended: 06/02/2022 Adopted on: 06/02/2022 KODIAK ISLAND BOROUGH ORDINANCE NO. FY2022-20 AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH AMENDING TITLE 3 REVENUE AND FINANCE, CHAPTER 3.30 CONTRACT, PURCHASE, SALE, AND TRANSFER PROCEDURES SECTION 3.30.030 OPEN MARKET PROCEDURES WHEREAS, KIBC 3.30.020 Limitation on Manager's Authority states the manager may not make an acquisition, sale, transfer, or contract authorized by KIBC 3.30.010 if the value of the property, service, or contract exceeds a $25,000 without first obtaining assembly approval with the exception of utility bills, which may be paid without assembly approval; and WHEREAS, KIBC 3.30.030(b) Open Market Procedures states market purchases, sales, and contracts for over $500.00 shall, whenever possible, be based on at least two quotes and shall be awarded to the lowest responsible bidder, or in the case of a sale, the highest responsible bidder, except a local preference shall be allowed for purchases of $15,000 or less if that bid does not exceed the lowest responsible bid by more than ten percent; and WHEREAS, there is a gap between the manager's purchasing authority cap in KIBC 3.30.020 at $25,000 and the dollar amount that the local preference shall be allowed for in KIBC 3.30.030(b) at $15,000; and WHEREAS, it is in alignment with KIBC 3.30.060 Local Preference, to give the Manager authority to, at his/her discretion, direct an award of a contract for the purchase of personal property or services after competitive bidding to a responsible bidder who maintains a business office or store within the borough from which the property or service would be provided, if that bid does not exceed the lowest responsible bid by more than ten percent for the totality of his/her purchasing authority cap. NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH that: Section 1: This ordinance is of a general and permanent nature and shall become a part of the Kodiak Island Borough Code of Ordinances. Section 2: Title 3 Revenue and Finance, Chapter 3.30 Contract, Purchase, Sale and Transfer Procedures Section 3.30.030 Open Market Procedures is hereby amended to read as follows: Kodiak Island Borough, Alaska Ordinance No. FY2022-20 Page 1 of 2 45 46 47 48 49 50 51 52 53 154 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 3.30.030 Open Market Procedures A. Purchases, sales, or contracts authorized by KIBC 3.30.010 having an estimated value less than $25,000 shall be made in the open market without newspaper advertisement. B. Market purchases, sales, and contracts for over $500.00 shall, whenever possible, be based on at least two quotes and shall be awarded to the lowest responsible bidder, or in the case of a sale, to the highest responsible bidder, except a local preference for purchasing shall be allowed for purchases of $45,000 L25,000 or less if that bid does not exceed the lowest responsible bid by more than 10 percent. C. The manager, or authorized designee, may solicit oral or written bids for open market purchases or sales, and shall maintain a record of all bids received. D. The sale of all surplus, obsolete, or unusable personal property shall be advertised by electronic means or in a newspaper of general circulation in the borough unless authorized to the contrary by the assembly. E. The purchase of utilities is exempt from this section. Effective Date: This ordinance takes effect upon adoption. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS SECOND DAY OF JUNE, 2022. KODIAK ISLAND BOROUGH William Roberti, Mayor VOTES: Ayes: Griffin, Smiley, Smith, Absent: Williams Turner, Arndt, Delgado Kodiak Island Borough, Alaska EST: A: RA-�- - (1,-' Nova M. Javier, Interim ,Borough Clerk Ordinance No. FY2022-20 Page 2 of 2