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2004-02 Amendment Title 3 Exceptions to Bidding RequirementsKODIAK ISLAND BOROUGH ORDINANCE NO. 2004 -02 Introduced by: Manager Carlson Requested by: Manager Carlson Drafted by: Finance Director Introduced: 03/04/2004 Public Hearing: 03/18/2004 Postponed: 03/18/2004 Postponed: 03/25/2004 Adopted: 04/15/2004 AN ORDINANCE OF THE KODIAK ISLAND BOROUGH ASSEMBLY AMENDING KODIAK ISLAND BOROUGH CODE OF ORDINANCES TITLE 3 REVENUE AND FINANCE CHAPTER 3.01 FISCAL POLICY SECTION 3.01.030 DEBT POLICIES CHAPTER 3.12 APPROPRIATION AND LEVY SECTION 3.12.010 ORDINANCE ENACTMENT — APPROPRIATION FORM CHAPTER 3.16 CONTRACT, PURCHASE, SALE, AND TRANSFER PROCEDURES SECTION 3.16.020 LIMITATION ON MANAGER'S AUTHORITY SECTION 3.16.030 OPEN MARKET PROCEDURES SECTION 3.16.040 ADVERTISING FOR BIDS SECTION 3.16.070 EXCEPTIONS TO BIDDING REQUIREMENTS WHEREAS, national standards for debt service established limits of ten percent for net debt service as a percentage of the market value of taxable property and 20 percent as the maximum ratio of debt service expenditures to governmental fund expenditures. WHEREAS, Section 3.12.010 does not follow Generally Accepted Accounting Procedures (GAAP); and WHEREAS, Section 3.12.010 deals with such items as budgeting the school district superintendent's salary and other school district salaries and line items; and WHEREAS, deleting Section 3.12.010(A -C) would not diminish the Borough's ability to budget and track both revenues and expenditures; and WHEREAS, due to inflation, the manager's authority to purchase goods and services is continually being eroded; and WHEREAS, it is not cost effective to solicit bids for items that cost less than $500; 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, Chapter 3.01, Section 3.01.030 is hereby amended as follows: Title 3 REVENUE AND FINANCE Chapter 3.01 FISCAL POLICY Sections: 3.01.010 Purpose. 3.01.020 Operating budget policies. 3.01.030 Debt policies. 3.01.040 Revenue policies. 3.01.050 Investment policies. 3.01.060 Accounting, auditing, and financial reporting policies. 3.01.070 Capital budget policies. 3.01.080 Reserve policies. Kodiak Island Borough, Alaska Ordinance No. 2004 -02 Page 1 of 5 3.01.030 Debt policies. The borough will not fund current operations from the proceeds of borrowed funds. The borough will confine long -term borrowing to funding of capital improvements or Projects that cannot be financed from current revenues. When the borough finances capital projects by issuing bonds, it will repay the debt within a period not to exceed the expected useful life of the project so constructed. Target debt ratios will be annually calculated and included in the review of financial trends. Net debt as a percentage of the estimated market value of taxable property should not exceechrro five (25) percent. The ratio of debt service expenditures as a percent of governmental fund expenditures should not exceed fifteen twenty (-1-520) percent. The borough recognizes the importance of underlying and overlapping debt in analyzing financial condition. The borough will regularly analyze indebtedness including underlying and overlapping debt. The borough will maintain good communications about its financial condition with bond and credit institutions. The borough will follow a policy of full disclosure in every annual financial statement and bond official statement. The borough will avoid borrowing on tax anticipation and maintain an adequate fund balance. SECTION 3: Title 3, Chapter 3.12, Section 3.12.010 is hereby amended as follows: Title 3 REVENUE AND FINANCE Chapter 3.12 APPROPRIATION AND LEVY Sections: 3.12.010 Ordinance enactment form. 3.12.020 Tax levy form. 3.12.025 Maximum allowable tax revenues. 3.12.030 Acceptance and appropriation of grant funds. 3.12.010 Ordinance enactmen . The assembly shall enact an appropriation and tax levy ordinance appropriating funds for the expenses and liabilities of the borough each year and levying a tax to defray all expenses and liabilities of the borough for the purposes as specified against all taxable property in the borough each year., Salary of borough manager $ salary of borough secretary i ce equ postage an stationery Expenses of general and Premiums of official bonds assesso pository of accoun p Publishing legal notices (b) Assessment and collection of taxes Salary of borough assessor $ Travel and per diem of Kodiak Island Borough, Alaska Ordinance No. 2004 -02 Page 2 of 5 Miscellaneous supplies ge aria mailin Sections: �elar of teachers Salary of principals salar of superinte salar of maintenai g p er g epnone g lea TOTAL e ayment of interest a princip auc currently Purchase of books and TOTAL $ Appropriated for the foregoing expenses of education from the tax for Appropriated from the tax for ral corporate purposes ppropriatea from sp TOTAL Section 4: Title 3, Chapter 3.16, Sections 3.16.020, 3.16.030, 3.16.040, and 3.16.070 are hereby amended as follows: Title 3 REVENUE AND FINANCE Chapter 3.16 CONTRACT, PURCHASE, SALE, AND TRANSFER PROCEDURES 3.16.010 Contract, purchase, sale, and transfer procedures. 3.16.020 Limitation on manager's authority. 3.16.030 Open market procedures. 3.16.040 Advertising for bids. 3.16.050 Processing of bids. 3.16.060 Local preference. 3.16.070 Exceptions to bidding requirements. 3.16.080 Lowest responsible bidder. 3.16.090 Requirements mandatory. Kodiak Island Borough, Alaska Ordinance No. 2004 -02 Page 3 of 5 3.16.100 Change orders -- Manager authority. 3.16.105 Circumvention of bidding requirements prohibited. 3.16.110 Competitive sealed proposals -- Negotiated procurement. 3.16.020 Limitation on manager's authority. The manager may not make an acquisition, sale, transfer, or contract authorized by section 3.16.010 of this chapter if the value of the property, service, or contract exceeds fifteen twenty -five thousand ( +25,000) dollars without first obtaining assembly approval with the exception of utility bills, which may be paid without assembly approval. 3.16.030 Open market procedures. A. Purchases, sales, or contracts authorized by section 3.16.010 of this chapter having an estimated value in excess of fifteen thousand (15,000) dollars but less than twenty -five thousand (25,000) dollars shall be made in the open market without newspaper advertisement. B. Market purchases, sales, and contracts for over five hundred (500) dollars shall, whenever possible, be based on at least two (2) competitive bids 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 not to exceed twenty (20) percent of the purchase price for purchases of fifteen thousand (15,000) dollars or less and not to exceed ten (10) percent of the purchase price for purchases of more than fifteen thousand (15,000) dollars but not more than twenty -five thousand (25,000) dollars. C. The manager, or authorized designee, may solicit either 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 in a newspaper of general circulation published within the borough unless authorized to the contrary by the assembly. E. The purchase of utilities is exempt from this section. 3.16.040 Advertising for bids. A. Purchases, sales, or contracts authorized by section 3.16.010 of this chapter having an estimated value of more than twenty -five thousand (25,000) dollars may be made only after a notice calling for bids is printed in a newspaper of general circulation published within the borough once a week for not less than three (3) consecutive weeks prior to the date of the bid opening. The notice shall contain a general description of the property, work, or service; state where the bid forms and specifications may be obtained; specify the place for submission of bids and the time by which they must be received. B. The purchase or contract shall be awarded to the lowest responsible bidder, or in the case of a sale to the highest responsible bidder. C. Utilities are exempt from this section. 3.16.070 Exceptions to bidding requirements. The requirements of this chapter relating to solicitation of competitive bids and award to the lowest responsible bidder shall not apply to: A. Contracts for professional or unique services; B. Contracts for property or services necessitated by an emergency, if the delays required for compliance with the bidding requirements would jeopardize the public health or welfare; C. Contracts for audit and insurance services that may be bid at three (3) up to five (5) year intervals; or D. Contracts with a municipality or other political subdivision to the extent authorized by statute with the assembly holding a public hearing on contracts exceeding one hundred thousand (100,000) dollars. E. Contracts for street improvements involving donated services and materials when the assembly has determined not to create an assessment district and has approved a project. The following steps shall be taken before a proposed contract is submitted to the assembly for approval: 1. an applicant shall first submit to the engineering and facilities department director a proposal that fully complies with chapters 4.45, 16.70, and 16.80 of this code along with a cost estimate that reasonably describes the value of the services and materials included in the proposal as well as the procedure for addressing any change orders; 2. after the engineering and facilities department director accepts the proposal, the applicant shall submit to the borough finance director proof of ability to comply with chapter 3.40 of this code; and 3. the proposal shall be referred to the applicable road service area board for review and recommendation to the assembly; and 4. after the borough finance director approves the proposed bonding and a recommendation has been received from any reviewing service area board, the assembly shall hold a public hearing with notice to affected property owners as follows: a. publication in a newspaper of general circulation in the borough at least once a week for two (2) consecutive weeks prior to the public hearing; b. mailing at least fifteen (15) days before the public hearing to all record owners of property with frontage on the street to be improved. "Record owners" means the person or persons listed as the owner Kodiak Island Borough, Alaska Ordinance No. 2004 -02 Page 4 of 5 of the property on the current property tax records of the assessor. The notice shall be mailed to the record owner at the address stated in the assessor's tax records; and c. every notice of a public hearing required by this section shall state the date, time, location, and purpose of the public hearing and shall describe the improvement. The notice shall also state that, if the assembly approves the proposal, no assessment district will be formed and the borough will not participate in the allocation or collection of costs among the respective property owners. 4. after the public hearing, the assembly may approve the project, with or without additional conditions. If the assembly approves the project, it shall authorize the manager to execute the contract. ATTEST: ADOPTED BY THE ASSEMBLY Of THE 1CODIAK ISLAND BOROUGH THIS FIFTEENTH DAY OF APRIL 2004 KODI K ISLAND BOROUGH / udith A. Nielsen, C C, Borough Clerk . "•rielle LeDoux, :orough M yor Kodiak Island Borough, Alaska Ordinance No. 2004 -02 Page 5 of 5