HomeMy WebLinkAboutCouncil Workshop Minutes 05.08.2018MINUTES
COUNCIL WORKSHOP
MAY 8, 2018 6:30 P.M.
COUNCIL CHAMBERS
A Council Workshop was held in the Council Chambers and called to order by Mayor Tom Nelson at
6:30 p.m. on May 8, 2018.
Emelie Eaton _x Heidi Sparks
x Bruce McGee x Richard Herr
_ Scot Stokes x Iry Wilke
x Richard Klose x Bill Mountsier
OTHERS PRESENT: Matt Wheeler, Maintenance Superintendent
Kurt Markegard, Public Works Director
Rick Musson, Chief of Police
Nancy Schmidt, Library Director
Public Input
Karl Dan Koch, 320 Colorado Avenue, spoke regarding the handicap parking located near the Sports
Complex. Requested the City explore the option of angled parking within the handicap parking lot.
Mayor Nelson stated he would follow up on this issue and report back to Council.
General Items
There were none.
Executive Review
• Poppy Proclamation
The poppy tradition started after World War 1. Poppy's are symbolic of the bloodshed during the war.
The American Legion Axillary distributes poppies the Friday before Memorial Day, this year this day
will be May 25th. The poppies are funded by donations.
• Resolution — A resolution of intent to adopt an official Schedule of Fees and Charges for
the City of Laurel, repealing all previous resolutions that set fees or charges that conflict
with the schedule attached hereto upon its effective date.
Council requested the copy that shows the changes made to the document; their packets included the
copy that showed what the final document would look like. This item was moved to later in the
meeting to accommodate the printing of that version of the document.
Mayor Nelson gave a brief overview of what the Schedule of Fees and Charges is used for and why
the City goes through this process on a regular basis.
• Resolution — A resolution of the City Council authorizing the Mayor to sign an addendum
to the existing Mutual Aid Agreement for firefighting agencies throughout Yellowstone
County.
Council Workshop Minutes of May 8, 2018
This is a Mutual Aid Agreement for all firefighting agencies within Yellowstone County to assist one
another in the event of an emergency. There were no changes made from what the City signed last
year.
It was questioned if this document states how Laurel will assist Park City; it was questioned if there is
a separate document stating how Park City will assist Laurel.
Mayor Nelson clarified that this question is for the following resolution discussing the Mutual Aid
Agreement between Laurel and Park City. The resolution being discussed is in regards to Yellowstone
County only. Mayor Nelson stated that he was unsure and look into that further.
• Resolution — A resolution of intent to adopt an official Schedule of Fees and charges for
the City of Laurel repealing all previous resolutions that set fees or charges that conflict
with the schedule attached hereto upon its effective date. (Continued)
Upon the distribution of the copy that showed all changes made to the document, discussion
continued from the previous agenda item. Council took a brief moment to look over the document.
The document with proposed changes is attached to these minutes.
It was questioned why the camping fees for Riverside Park were left in the document. It was also
questioned if these fees remained in the Schedule of Fees and Charges because the Riverside Park
Master Plan does call for camping to resume in the Park.
Correct, once construction begins on the campground the Park Board will look at those fees to ensure
that the fees are appropriate. At this time the fee is for future use.
It was questioned if the fee listed for the Advanced EMT class was correct.
The fee is correct. Due to the confusing nature of how track changes are made to the document, it was
not clear that the current fee is $1,200. The Administrative Assistant clarified to the Mayor that the
current fee is $1,200 and the proposed fee is $1,500.
It was questioned if our Ambulance carries the drug used to reverse an opioid overdose (Narcan).
Yes, the Ambulance does carry Narcan (Naloxone). It is listed on the Schedule of Fees and Charges.
It was questioned if the City's Police Officers carry Narcan.
Chief Musson, stated that currently, the City's Police Officers are not carrying Narcan on them. There
is a grant program and training program through AMR. Chief Musson is working on this program for
the City's Police Officers.
It was questioned if pool fees are listed on the Schedule of Fees and Charges.
Those fees are not listed in the Schedule of Fees and Charges. Those fees were removed and are done
separately.
• Resolution — A resolution of the City Council authorizing the Mayor to sign a mutual aid
agreement for fire protection between the City of Laurel and the Park City Fire District.
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Council Workshop Minutes of May 8, 2018
This is the same agreement the City signed last year.
It was questioned why the City doesn't have mutual aid agreements with towns such as Joliet.
Mayor Nelson stated he would look into this and report back to Council.
a Council Issues:
o Update on 2011 Yellowstone River flooding event
As reported to Council a few weeks ago, there were some flow issues with the new intake. Using a
backwash technique they were able to clear some of the screens. However, the rivers turbidities
increased, and the flow decreased again. A company was brought in to use a camera to look inside the
intake and were unable to see inside the lines. The operators will try using a backwash with water to
try and clear the screens out. With the river being higher than normal it is not possible to see the
intake through the turbidities.
The required survey of the wetlands has been completed. They will meet with the Army Corps of
Engineering in June to discuss if the City took away or added wetlands.
It was questioned what the plan is to remove the rock weir.
The City received an extension until September 2018 to remove the weir. The City will need to wait
until the water is low to safely have the weir removed.
o Purchasing Policy Discussion
Council Member McGee read the attached statement to Council.
Mayor Nelson invited Department Heads to speak to Council regarding the obstacles they have
encountered prior to the current purchasing policy. Council Packets included a copy of each of the
City Attorney's clarification emails, the current Purchase and Procurement Policy, and a copy of the
City of Billings Purchasing Procedures. All of which are attached to these minutes.
Police Chief Musson spoke regarding how his department is run. He reiterated that his department
does not use multiple purchase orders to circumvent the system. Through the years Department Heads
have seen many different limits set to their spending. He about spoke the difficulties he as a
Department Head has run into with the various spending caps. Each year Department Heads submit
their budgets to the Mayor and Council for approval. Each year Department Heads are expected to
keep their Department's on budget. By reducing the Department Heads spending limit, it would
require access to an authorized signer on a consistent basis. Chief Musson over the course of his
career has seen spending cap as low as $100 and as high as $5,000. He feels the current spending cap
of $1,000 is fair and should not limit his ability to do his job.
Kurt Markegard, Public Works Director, spoke regarding the difficulties of getting approval which a
lower spending cap. The Chief Administrative Officer helped streamline this process. He gave an
example of a pressurized sewer leak on East Main. There was difficulty in getting a small service
contract processed with staff out at training. East Main is a State highway and needed to be opened in
a timely manner. Changing the purchasing policy could lengthen the time needed to obtain approval
and cause further issues. He gave further examples such as a tire repair or purchasing water meters in
a larger quantity such as those purchased for the 12-plex on 8`" Avenue. He reassured Council that his
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Council Workshop Minutes of May 8, 2018
department is mindful of the bottom dollar, as an example when there is a water main break his
department works to remedy the issue as soon as possible so as not to cause additional damage to the
streets, curbs or gutters. While he agreed the current spending caps are fair, he also agreed there is
always room for improvement.
Nancy Schmidt, Library Director, spoke regarding the process she goes through to spend funds.
Unlike other departments, she takes both her budget and expenditures to the Library Board. Reducing
the Department Head spending limit would significantly increase the approval time for Library
purchases. She spoke to the obstacles she would face as a Department Head if the spending cap was
reduced. She understood Council's need to review expenditures but requested that Council not tie
their hands in the process.
Council Member McGee clarified his earlier statement. There have been two abuses that have become
evident, one being multiple purchase orders and the second being not getting prior approval before
spending over the allotted spending cap. He does not want to take away the spending ability of the
Department Heads or hinder their ability to run the day to day operation of the City. The issue arose
from the email handed out by the Mayor from the City Attorney. There are a few items that need to be
clarified in the Purchase and Procurement Policy. The first area of clarification is that there should be
no double Purchase Orders (PO). (A double PO is when expenditure is split between two PO's to
make each be below the spending cap and therefore not require additional approval as per the
Purchase and Procurement Policy.) The second area of clarification is procurement over $5,000 needs
advanced planning. The third area of clarification is the spending cap of $5,000, this is a large
spending cap and could be discussed further. All known loopholes should be closed and appropriate
clarifications made. He reiterated that Council should be able to repeal and replace the current
Purchasing and Procurement Policy as not to affect the day to day of the City.
Council Member Eaton gave background on how this issue came about. There was a charge under
$1,000 that Budget/Finance Committee questioned what the purchase was about. The current Mayor
sat on Budget/Finance Committee during the previous term. On occasion, there were questions
regarding what purchase was, and there were no issues. On one occasion, in recent years, had
Budget/Finance Committee held a claim from the Consent Agenda for further information. On this
occasion, there was an objection to the fact that the Budget/Finance Committee was questioning a
purchase. The Mayor felt that the Budget/Finance Committee was questioning his authority to grant a
purchase. She clarified that Budget/Finance Committee was not questioning his authority to grant the
purchase, but rather asking for clarification on why this purchase was made. After two memos from
the City Attorney, Budget/Finance Committee's resolve was to bring any questions to full Council,
separate claims from the Consent Agenda and discuss under the agenda item "Separate of Consent
Agenda." Once this became an issue, the thought of rewriting the Purchase and Procurement Policy
was brought forward to Council to have further discussion. She questioned the checks and balances on
items approved by the Mayor.
Mayor Nelson served on Budget/Finance Committee for four years, there were no changes until
recently. He had explained why he had authorized the purchase of a dress uniform for the Fire Chief
in Budget/Finance Committee. Budget/Finance Committee were told the Fire Chief already had a
dress uniform, the Clerk/Treasurer brought this to their attention. Mayor Nelson stated that was false.
There has been issues with the Fire Department spending in the past, such as the double PO
mentioned earlier. He stated that the previous CAO was instrumental in hiring the current
Clerk/Treasurer, which is the Mayor's charge. He stated that there are many things that have gone on
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Council Workshop Minutes of May 8, 2018
that were not right. The Budget/Finance Committee was advised that they should rescind the Fire
Departments spending authority. There was a memo stating all Fire Department spending needed to
go through Budget/Finance. Mayor Nelson stated he did not agree, but felt he had no recourse in
voicing his objections. He felt that the matter should have been dealt with by the previous Mayor and
not by Budget/Finance Committee. Budget/Finance cannot restrict the spending authority passed via
the Purchasing and Procurement Policy. He stated this is illegal. Mayor Nelson spoke with the City
Attorney regarding the restrictions placed on the Fire Department. The City Attorney wrote an
opinion on how Budget/Finance should conduct themselves. Mayor Nelson did request all
Department Heads to reduce their budgets by ten percent for the next Fiscal Year. He clarified that he
is the supervisor for all Department Heads, and will be sending out an email stated PO's for the same
product within the same week will not be allowed. He was off put that what they were instructed to do
in Budget/Finance was illegal. The City needs to be operating within the scope of the City Charter,
LMC, and legally. Budget/Finance Committee is responsible for purchases from $5,000 to $80,000.
Full City Council is responsible for any purchase above $80,000. Budget/Finance Committee felt they
had the ability to pull any claim for any dollar amount, the Mayor disagreed and asked for
clarification. The Mayor agreed that the policy does need tweaking to sure up all found loopholes.
However, he does not agree that spending caps should be adjusted. The Mayor apologies if he had
offended anyone in the way he went about clarifying this issue. He stated he did have issues with
what Budget/Finance Committee had been told, and to find out that it was not only incorrect but
illegal caused great concern. The Mayor does seek the legal advice of our City Attorney, and tries to
minimize the risk of being sued. The Mayor stated that when the next CAO is hired they will work
closely with the Mayor and will not look like it did before. The Mayor spoke to the various tasks that
are on his plate and what he is doing to be proactive on various issues.
Council Member McGee read a portion of the City Attorney's clarification memos; both memos are
attached to these minutes. He does not understand why asking for simple changes to the Purchasing
and Procurement Policy are beyond the Councils authority. He spoke to the fact that trusting others to
adhere to the policy when there are known loopholes is an issue. He spoke to Council being held
responsible for the warrants against the City, but Budget/Finance not having the ability to say or
doing anything about those under $5,000. He stated he would continue to bring this topic forward
until a satisfactory solution was brought forward.
Mayor Nelson stated that this topic will be on the next Council Workshop Agenda and that the Mayor
would ensure the City Attorney would be present. He reiterated that Budget/Finance Committee has
not changed, but that they were told they could do anything and that is not true.
Council Member Eaton questioned if the purpose of the Budget/Finance Committee is for checks and
balances and to review expenditures of the City.
Mayor Nelson responded yes, that he had known about all the expenses of the City as he signs each
check. He listed all the purchase requisitions that Budget/Finance had approved this calendar year. He
spoke regarding not knowing where to go when he did not agree with what Budget/Finance was being
told. In hindsight, he should have asked for Council discussion on the topic.
Matt Wheeler, Maintenance Superintendent, spoke to being unaware that only Department Heads
could sign PO's. Public Works Department has a large volume of PO's every week, and he signs
them.
Council Workshop Minutes of May 8, 2018
Mayor Nelson reiterated that he has requested Department Heads reduce their budgets by 10% for this
next Fiscal Year. He reiterated that he is trying to save money where he is able to.
Other Items
None.
Review of Draft Council Agenda for May 15, 2018
There were no changes.
Attendance at the May 15, 2018, Council Meeting
All will be in attendance at next week's meeting.
Announcements
It was requested for Council to discuss at the next Council Workshop West Railroad, and the use of
urban funds to replace it.
Cemetery Board will meet on May 22nd at 5:00 p.m. in Council Chambers.
Council Member Sparks encouraged Council to close known loopholes in the Purchasing and
Procurement Policy. She reiterated that it is not about the ability to trust the Department Heads, but
rather make sure the loopholes are closed, so someone does not have the ability to abuse the system.
The Council field trip to the Water plant is scheduled for May 22nd at 6 p.m. meet at City Hall.
There will be a delay in this meetings minutes, as the Administrative Assistant has been in training
most of this week and will be out of the office next week.
Recognition of Employees
• Cynthia Caswell 3 years on May 11th WWTP
• Andrew Arneson 1 year on May 22nd Public Works
• Karen Courtney 1 year on May 22nd Public Works
The council workshop adjourned at 7:37 p.m.
Respectfully submitted,
Brittney norma
Administrati ssistant
NOTE: This meeting is open to the public. This meeting is for information and discussion of the Council for the
listed workshop agenda items.
n
20186• Schedule of Fees and Charges
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Resolution No. R16 -47M -
Page 1 of 10
CITY OF LAUREL
SCHEDULE OF FEES AND CHARGES
As OF TUESDAY, JUNE 512018 2, 2016/ RESOLUTION NO. R18- 642,
Administrative. Citv Attornev and Court Fees and Charles (except Libra
ReturnedCheck................................................................................................................................$30.00
Document Photocopying
First3 pages.......................................................................................................................... No Charge
Copies in excess of 3 pages - per page...................................................................................... $0.25
Research City Records (Per Hour).....................................................................................................$30.00
Video Tape or DVD Copy............................................................................................... First Copy $25.00
...........................................................................................................
Each Additional Copy $5.00
Dog License Fees and Renewals before April 1 (must be renewed each year)
SpayedFemale/Neutered Male................................................................................................$10.00
Un -spayed Female/Un-neutered Male......................................................................................$15.00
DogImpound Fee.............................................................................................................................$25.00
Dog License Renewals after April 1
DogBoarding Fee - Per Day.............................................................................................................$10.00
SpayedFemale/Neutered Male................................................................................................$20.00
FingerPrinting - 1 card.....................................................................................................................$10.00
Un -spayed Female/Un-neutered...............................................................................................$30.00
FingerPrinting - 2 cards...................................................................................................................$15.00
Dog Kennel before April 1 (must be renewed each year)
Non-Commercial....................................................................................................................
$50.00
Commercial............................................................................................................................$75.00
Business License
General....................................................................................................................................
$75.00
Beer and/or Wine License......................................................................................................$200.00
ThreeApartments....................................................................................................................$30.00
FourApartments......................................................................................................................$40.00
Five or more Apartments.........................................................................................................$75.00
PawnShop............................................................................................................................$100.00
Utilities.................................................................................................................................$300.00
Amusement Machines..............................................................................................................$50.00
LiveMusic..............................................................................................................................$50.00
Junk.........................................................................................................................................
$50.00
LiquorLicense.......................................................................................................................$406.00
Franchises.............................................................................................................................$300.00
Sexually Oriented Business....................................................................................................$500.00
Police Department Fees and Charges
Case Report Copy - One Page Report................................................................................................ $5.00
Case Report Copy - Two or More Pages...........................................................................................$25.00
Vehicle Accident Report Copy...........................................................................................................
$5.00
Video Tape or DVD Copy...............................................................................................
First Copy $25.00
...........................................................................................................
Each Additional Copy $5.00
AudioTape Copy..............................................................................................................................$25.00
VehicleImpound - Per Day..............................................................................................................$25.00
DogImpound Fee.............................................................................................................................$25.00
DogBoarding Fee - Per Day.............................................................................................................$10.00
FingerPrinting - 1 card.....................................................................................................................$10.00
FingerPrinting - 2 cards...................................................................................................................$15.00
Fire Department Fees and Charges
Incident Report (NFIRS Copy)..........................................................................................................$30.00
Photograph Copies Color (35mm) Prints Cost of Processing + $25.00
Photograph Copies - Enlargements.................................................................. Cost of Processing + $25.00
20186 Schedule of Fees and Charges
nein on,6/0 /2018
Resolution No. R1612 -
Page 2 of 10
Photograph Copies - Digital (Copy of Disk)......................................................................................$35.00
Fire Suppression Fees Charged to Non -Residents or for Code or Ordinance Violations
BasicBase Rate..............................................................................................................................$900.00
Base Rate for First Hour of Response for working fires, rescue operations, hazmat or
largescale incidents............................................................................................................$1,100.00
Base Rate for Service Assist Calls or Minor Calls.............................................................$700.00
Foreach Fireman.....................................................................................................................$20.00/hour
Base Rate for Assist and Investigate.......................................................................................$200.00/hour
$12044.00
Rates for Additional Hours after the First Hour of Any Response
(Time calculated from time of response to return to service.)
EKGSupplies..........................................................................................................................$50.00
Engine#1..............................................................................................................................$250.00
WaitTime...............................................................................................................................$45.00
Engine#2..............................................................................................................................$250.00
ExtraAttendant........................................................................................................................$45.00
Engine94..............................................................................................................................$200.00
DOATransport ......................................................................................................................$150.00
Sguad5..................................................................................................................................
$250.00
Tender#1................................................................................................................................$75.00
Tender#2................................................................................................................................$75.00
Support#1...............................................................................................................................$75.00
Command1...........................................................................................................................$100.00
Command2...........................................................................................................................$100.00
$20.00
Brush#1................................................................................................................................$100.00
SpinalImmobilization..............................................................................................................$50.00
Brush#2................................................................................................................................
$100.00
Brush#3................................................................................................................................
$100.00
Brush#5................................................................................................................................
Engine 2071
$100.00
$1 Q Q. 04
....................
Business inspection within jurisdiction - marketing fireworks, firecrackers and other pyrotechnics
$200.00
False Fire Alarms (per year)
First........................................................................................................................................Free
Second................................................................................................................................... $100.00
Third..................................................................................................................................... $200.00
Fourth+................................................................................................................................ $300.00
Fire Extinguisher Training
10 Students............................................................................................................................$150.00
-Additional per student.......................................................................................................$15.00
Ambulance Service Fees
ParamedicBase Rate............................................................................................................
$1.200854.00
BasicBase Rate..............................................................................................................................$900.00
Mileage with Patient (per mile).......................................................................................................$173.00
Other Charges
TreatOnly...........................................................................................................................
$8073.00
BasicLS Disposable Supplies.............................................................................................
$12044.00
ParamedicAL-S-Disposable Supplies....................................................................................$1730.00
13 5 Defibrillates Supplies..................................................
$1:75.00
A69 -Defibrillator Supplies................................................................................................... $200.00
EKGSupplies..........................................................................................................................$50.00
WaitTime...............................................................................................................................$45.00
ExtraAttendant........................................................................................................................$45.00
DOATransport ......................................................................................................................$150.00
Stand -By Rate (per Hour)....................................................................................................$8073.00
Nebulizer.................................................................................................................................$20.00
Decontamination of Ambulance...............................................................................................$70.00
IVSupplies..............................................................................................................................$50.00
Glucometer..............................................................................................................................
$20.00
PluseOx..................................................................................................................................$20.00
SpinalImmobilization..............................................................................................................$50.00
20186- Schedule of Fees and Charges
n� ink iron, 6/05/2018
Resolution No. R16 -1 -28 -
Page 3 of 10
Splinting..................................................................................................................................$25.00
Supraglottic Airway (BVM/King)............................................................................................$75.00
SuctionKit..............................................................................................................................$15.00
IntraosseousKit (IO).............................................................................................................$200.00
WoundCare............................................................................................................................$20.00
Pelvic Splint (any size)..........................................................................................................$100.00
BurnKit..................................................................................................................................$50.00
Medication Charges
AlbuterolNeb 5mg..................................................................................................................$15.00
Aspirin..................................................................................................................................$1910.00
BenadrylTab 25mg.................................................................................................................$15.00
D5WSolution......................................................................................................................$204-S.00
D10W Solution per 1000 ml....................................................................................................$25.00
D50WSolution........................................................................................................................$25.00
Epinephrine Injector Adult.....................................................................................................$300.00
Epinephrine Iniector Pediatric................................................................................................$400.00
Epl+inephrine 1 mg/ml.............................................................................................................$30.00
Glucagon1 mg................................................................................................................. $400359.00
OralGlucose 30g................................................................................................................. $15.00
Morphine Sulfate per 10 mg.....................................................................................................$30.00
Narcan (Naloxone) per 2 mg..................................................................................................$559.00
NSSolution 500cc...................................................................................................................$30.00
NSSolution 1000cc.................................................................................................................$60.00
NitroTab.................................................................................................................................$20.00
Oxygen....................................................................................................................................$80.00
HumidifiedOxygen.................................................................................................................$90.00
Ondansetron (Zolfran) Injectible per 4 mg...............................................................................$15.00
Ondansetron (Zolfran) oral per 4 ing......................................................................................... $2.00
-Solu-Medrol 125 mg...............................................................................................................$20.00
Thiamine200 mg.....................................................................................................................$25.00
Nitrous Oxide Administration................................................................................................$350.00
Diphenhydramine Injectable 50 mg..........................................................................................$10.00
Impratropium Bromide Inhalant 2.5 ml..................................................................................... $5.00
Solu-Cortef 100 mg.................................................................................................................Q$+7n5.00
Pull Ox
420.n00
.............................................................. ..................................................................
Spinal..................................................................................................................$50.00
Splinting
...................$2T00
............. __................................................................................................................................ W .
inti-aesseeussKit (10)$150 nn
�C—are............................................................................................................................$20 nn
HumidifiedOxygen .................................................................................................................$90 nn
EMT Class (plus the cost of books and testing)...............................................................................$550.00
Advanced EMT Class (plus the cost of books and testing).......................................................... $1,5200.00
Water Rates & Charges
See current resolution (Resolution No. RI I-110).
Raw (untreated) Water: Base rate as per meter size, plus $0.40/1000 gallons.
System Development Fees (Based on Line Size):
3/ Inch................................................................................................................................ $1,500.00
1 Inch................................................................................................................................. $2,685.00
1'/ Inch.............................................................................................................................. $4,170.00
20186- Schedule of Fees and Charges
1606/05/2018
Resolution No. R16 -1 -M -
Page 4 of 10
1'/z Inch..............................................................................................................................$6,000.00
2 Inch............................................................................................................................... $10,710.00
3 Inch............................................................................................................................... $24,000.00
4 Inch............................................................................................................................... $42,855.00
Connections to the water system with meters larger than 4 inches or when the unique usage characteristics of a large
water user may require, the City will determine the system development fee at that time if the City can provide the
service as requested.
Curb Box Repair Insurance Fee: $1.00/month per water account.
Utilitv Hook -Up Fees:
Water Tapping — Two Inches or Less..............................................................................................$200.00
Water Tapping — Greater Than Two Inches................................................................................. Fee x 1.25
Labor/Operator Rate Per Hour...........................................................................................................$40.00
HeavyEquipment Rate Per Hour.......................................................................................................$75.00
Other Fees for Repairs. etc.:
Frozen or Damaged Meter ............................................... Replacement meter or meter parts cost plus 25%
Plus the Labor/Operator Rate Per Hour.................................................................................$40.00
OR overtime hourly rate if called out after hours...................................................................$90.00
Hydrant meter rental............................................................................. $476.00/month prorated plus the total usage
Utilitv Billing Fees and Deposits:
New Accounts or Re -Establishing an Account...................................................................................$25.00
Restoring Service to a Delinquent Account........................................................................................$50.00
Deposit for New Meter Accounts, No Service in Previous Year .......................................................$150.00
Charge for check returned by bank as unpaid.....................................................................................$30.00
Wastewater Rates & Charges
See current resolution (Resolution No. RI I-110).
Septic dump fee ..................................... $40.00/minimum up to 1,000 gallons plus $0.04/gallon thereafter;
(Resolution No. R15-96)............................................................................. $40.00 cleanup fee for spillage
Svstem Development Fees
System Development Fees (Based on Line Size) — Sewer
Residential
Eachhousing unit..............................................................................................................$1,000.00
Duplex = 2 units; Triplex = 3 units; Four-plex = 4 units; Etc.
Commercial - Based on water meter size; Includes Subdivisions for Rent or Lease
3/ Inch................................................................................................................................
$1,000.00
1 Inch.................................................................................................................................
$1,790.00
1'/ Inch..............................................................................................................................$2,780.00
1 %z Inch..............................................................................................................................
$4,000.00
2 Inch.................................................................................................................................
$7,140.00
3 Inch...............................................................................................................................
$16,000.00
4 Inch...............................................................................................................................
$28,570.00
Connections to the wastewater system with water meters larger than 4 inches or when the unique usage
characteristics of a large water user may require, the City will determine the system development fee at that time if
the City can provide the service as requested.
20186- Schedule of Fees and Charges
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Resolution No. R16 -148 -
Page 5 of 10
Solid Waste Fees and Charles
See current resolution (Resolution No. R14-34).
(Resolution No. R15-101)
(4) Multiple Containers. Non-residential users who use multiple containers shall be assigned a volume of
use variable for each container used.
Roll Off Container Set / Reset................................................................................................... $30.00
RollOff Container Haul.......................................................................................................... $150.00
Roll Off Container Cost per Ton........................................................Current City of Billings' landfill rates
Replacement Waste Container (due to negligence)........................................................... Cost x $1.50
AllTires....................................................................................................................................... $5.00/tire
Container Site Waste - Business and Non -City Residents and/or City Residents that do not use City Solid
Waste Services
Minimum.......................................................................................................................... $5.00
PerCubic Yard................................................................................................................ $10.00
Non -Residential Garbage Disposal Rate Schedule
See current resolution.
Park and Recreation Fees and Charges
ShelterReservation...........................................................................................................................$40.00
SpecialEvents in Parks.....................................................................................................................$50.00/one day
........................................................................................................................................... $75.00/two days
YouthSports in Parks.............................................................................................................No Charge
Riverside Park Camping Fees
With water and electricity................................................................................................... $20.00 per night
Withno water..................................................................................................................... $15.00 per night
Tentcamping...................................................................................................................... $12.00 per night
Library
PhotocopyFees (per page)................................................................................................................. $0.10
Printer Fees
Blackand White (per page)....................................................................................................... Q$0.10
Geier(pr- on � li-im-e ei inlc iused`..........................................................UP �M0v
Lost or Damaged Book .............................................. Cost- 3
Library Cards for Non -Residents
For Three Months (Minimum)..................................................................................No Charge$5-.04
PerYear................................................................................................................. No Charge$$24.04
Interlibrary Loan Postage (per item)................................................................................................... $2.00 After 3
Community Room
Use during library hours................................................................................................................ $3.00/hour
Use after hours (per hour or any portion of an hour).................................................................$30.00
Refundable Cleaning Deposit...................................................................................................$30.00
Library Card Replacement Fee (per Card).......................................................................................... $2.00
FaxFees (per page)............................................................................................................................ $0.25 Send
................................................................................................................................................. $0.10 Receive
Cemetery Fees
(Please Note: Cemetery caretaker must be present at all interments.)
(Please Note: Burials are not permitted on Sundays, holidays or Saturday afternoons.)
City Residents
FullGrave.............................................................................................................................$350.00
20186 -Schedule of Fees and Charges
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Resolution No. R164 -$-
Page 6 of 10
BabyGrave..........................................................................................................................
$200.00
Non -Residents
FullGrave.............................................................................................................................$500.00
BabyGrave..........................................................................................................................
$250.00
Opening and Closing
FullGrave.............................................................................................................................$280.00
Full Grave on Saturday mornings...........................................................................................$380.00
BabyGrave..........................................................................................................................
$200.00
Baby Grave on Saturday mornings........................................................................................
$250.00
Cremation........................................................................................................... ...................
$150.00
Cremation on Saturday inornings...........................................................................................$200.00
Two Cremations on single plot..............................................................................................$225.00
Two Cremations on single plot on Saturdays........................................................................$
300.00
Set Cremation Urn at existing Headstones.........................................................................................$10.00
Private Sale of any plot (transfer processing fee)...............................................................................$25.00
Disinterment fee for a full burial.....................................................................................................$300.00
Disinterment fee for cremains..........................................................................................................$225.00
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Resolution No. R16 -1 -M -
Page 7 of 10
Planning Pees
ZoneChange...................................................................................................................... $1,100.00 + $25.00/acre
Site Plan Review Fee
Residential............................................................................................................................. $ 55.00
Commercial.......................................................................................................................... $325.00
All Zone Change Applications resubmitted within 1 year
of a withdrawal request made after the legal advertising............................................................ $550.00
Conditional Use Application (Residential)...................................................................................... $550.00
Conditional Use Application (Commercial)................................................................................. $1,100.00
SpecialReview.............................................................................................................................. $325.00
All Special Review Applications resubmitted within one year
of a withdrawal request made after the legal advertising
............................................................ $550.00
Annexation into the City of Laurel (80 acres or less)..............................................................
$300.00 + $25.00/acre
Annexation into the City of Laurel (81 acres or more)............................................................
$300.00 + $35.00/acre
HorneOccupations..........................................................................................................................
$ 75.00
Planned Unit Development (PUD) Concept Plan............................................................................
$550.00
Planned Unit Development (PUD) Preliminary Plan............................................................
$1,100.00 + $25.00/unit
Planned Unit Development (PUD) Final Plan.................................................................................
$550.00
TemporaryUse Permit...................................................................................................................
$325.00
Vacationof Street or Alley.............................................................................................................
$110.00
VarianceCommercial...................................................................................................................
$1,100.00
VarianceResidential.......................................................................................................................$500.00
All Variance Applications resubmitted within one year
of a withdrawal request made after the legal advertising
.............................................................$500.00
Subdivision Application Fees
Pre-Application..............................................................................
Preliminary Plat
Major Subdivision.................................................................
Minor Subdivision.................................................................
Final Plat (Major or Minor)......................................................................
Corrections or Vacations or Recorded Final Subdivision
Plats or Supporting Documents......................................................
Corrections or Adjustments to Plats, Conditions, and
Supporting Documents after Preliminary Plat Approval:
Minor Adjustments................................................................
Major Adjustments
Major Subdivisions affecting:
6 to 40 lots...............................................................
41 to 2001ots
............................. $550.00 + $25.00/Lot
.......................... $1,375.00 + $50.00/Lot
............................. $600.00 + $50.00/Lot
............................. $550.00 + $25.00/Lot
..................................... $220.00
................................ $220.00
............................... $1,100.00
............................................................................................. $3,300.00
Over200 lots............................................................................................. $4,400.00
MinorSubdivisions.................................................................................................... $440.00
ExemptSubdivision....................................................................................................................... $200.00
All Appeals Same as Application Fee
Zoning Map Amendment................................................................................................... $1,100.00 + $25.00/acre
StaffResearch...................................................................................................................................$35.00/hour
Cash in Lieu of Parking spaces except in the Central Business District .........................................$1,000.00
OutdoorSeating.................................................................................................................................$75.00
FloodplainPermit..............................................................................................................................$50.00
Review of Buildings for Lease or Rent............................................................................................$200.00
Subdivision for Rent or Lease Preliminary Plan............................................................................$1,375.00
Subdivision for Rent or Lease Final Plan.........................................................................................$550.00
ZoninizCompliance Fee....................................................................................................................$50.00
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20186 Schedule of Fees and Charges
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Resolution No. R16 28 -
Page 9 of 10
Building Permit Fees
BuildingPermits........................................................................................................................See Appendix A
FencePermits..................................................................................................................................$50.00
Plumbing Pefmita
Base Rate(Exeeptfer ReplaeementoWater Heate ` $20.00
€aeh Numbing ictur-e............................................................................................................. W7.00
Water- erviee Demestie of Ceffimerc 1................................................................................. $7.00
-:ding- of Tfailer- Far -k oew................................................................................................ $11.00
Stafm Dr-ains and St,ffli Dr- age............................................................................................. $7.00
Water-tet........................................................................................................ $7.00
industrial Water- D,-.. Tfeat., ente .- vent, el,,.ling its tay and
EKeepting-kiteheiitype gea— .-teree tees ; ture traps............................................................ $7.00
histallatieii alto-atienf of A,..t�.
...... ...... .. .............b ........., . i,...........,..................................................................................
tanks, ,
the installest: e f unp-ateeted ph I— l,: . 4 , t,, oa eluding
f
neeess
e-te Foureaek)........................................................................................................... $7.00
Fiveor- Mer-e(eaek)......................................................................................................... $2.00
GasP-TI-Mig System ef A-fie-tef-e-iffir eutlets(per— outlet`................................................................ $7.00
Gas posy stem ef firee;—mere eudets (per outlet`............................................................... $2.00
�4edieal gaa prparss3`Jtei i seri gine-te��inlets�eudetazeaEh`. -5 .00
AclRitieflli Me -al is pipinets/e>ttlets -Eeac................................................................... $5 .00
PlanReview................................................................................................... 35% of Building Permit Fee
DemolitionPermits...........................................................................................................................$45.00
Portableand Banner Sign Permit.......................................................................................................$45.00
Re-Inspection.................................................................................................................................... $45.00
MovingPermit..................................................................................................................................$25.00
Mobile Home Inspection (Blocking permit includes two meter inspections) ......................................$50.00
Mobile Home Water Meter Inspection..................................................................... $25.00 per additional inspection
Permit to Work in the Right -of -Way – Gravel Surface.......................................................................$25.00
Permit to Work in the Right -of -Way – Paved Surface........................................................................$45.00
Encroachment Permit (per Year).......................................................................................................$50.00
Approach, Sidewalk, Curb, and Gutter............................................................................................ $55.00
ResidentialRoofing Permit...............................................................................................................$50.00
Commercial Roofing Permit.......................................................................................... See Appendix A
SignPermit................................................................................................................... See Appendix A
20186- Schedule of Fees and Charges
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Resolution No. R164M-
Page 10 of 10
APPENDIX A: BUILDING PERMIT FEES
Building Permit Fees are determined by the Total Valuation of the project. For new construction and additions the total
valuation is determined by the most recent square foot construction costs as published in the Building Safety Journal. For
remodel projects, the total valuation is based on the documented project cost.
Total Project Cost Permit Total Project Cost Permit
From To Fee From To Fee
$1-------- $500 -------- $24
$501-------- $600 --------
$27
$601--------$700 --------
$30
$701 --------$800 --------
$33
$801-------- $900 --------
$36
$901------$1,000 --------
$39
$1,001------$1,100 --------
$42
$1,101------$1,200 --------
$45
$1,201 ------ $1, 300 --------
$48
$1,301------$1,400 --------
$51
$1,401------$1,500 --------
$54
$1,501------$1,600 --------
$57
$1,601------$1,700 --------
$60
$1,701------$1,800 -------- $63
$1,801------$1,900--------- $66
$1,901------$2,000--------- $69
$2,001------$3,000 --------- $83
$3,001------$4,000--------- $97
$4,001------$5,000 -------- $111
$5,001------$6,000 -------- $125
$6,001------$7,000 -------- $139
$7,001------$8,000 -------- $153
$8,001------$9,000 -------- $167
$9,001---- $10,000 -------- $181
$10,001---- $11,000 -------- $195
$11,001---- $12,000 -------- $209
$12,001---- $13,000 -------- $223
$13,001---- $14,000 -------- $237
$14,001---- $15,000 -------- $251
$15,001---- $16,000 -------- $265
$16,001---- $17,000 -------- $279
$17,001---- $1.8,000 -------- $293
$18,001---- $19,000 -------- $307
$19,001---- $20,000-------- $321
$20,001---- $21,000 -------- $335
$21,001---- $22,000--------
$349
$22,001---- $23,000 --------
$363
$23,001---- $24,000--------$377
$24,001---- $25,000-------- $391
$25,001---- $26,000-------- $401
$26,001---- $27,000-------- $411
$27,001---- $28,000-------- $422
$28,001---- $29,000-------- $432
$29,001---- $30,000-------- $442
$30,001---- $31,000------ $452
$31,001---- $32,000-------- $462
$32,001---- $33,000-------- $472
$33,001---- $34,000-------- $482
$34,001---- $35,000-------- $492
$35,001---- $36,000-------- $502
$36,001---- $37,000-------- $512
$37,001---- $38,000-------- $523
$38,001---- $39,000-------- $533
$39,001---- $40,000-------- $543
$40,001---- $41,000-------- $553
$41,001---- $42,000-------- $563
$42,001---- $43,000-------- $573
$43,001---- $44,000-------- $583
$44,001---- $45,000-------- $593
$45,001---- $46,000-------- $603
$46,001---- $47,000-------- $613
$47,001---- $48,000-------- $623
$48,001---- $49,000-------- $633
$49,001---- $50,000-------- $643
$50,001---- $51,000-------- $651
$51,001---- $52,000-------- $658
$52,001---- $53,000-------- $665
$53,001---- $54,000-------- $672
$54,001---- $55,000-------- $679
$55,001---- $56,000-------- $686
$56,001---- $57,000-------- $693
$57,001---- $58,000-------- $700
$58,001---- $59,000-------- $707
$59,001---- $60,000-------- $714
$60,001---- $61,000-------- $721
$61,001---- $62,000-------- $728
Total Project Cost Permit
From To Fee
$62,001_----$63,000 --------$735
$63,001 ----$64,000 --------$742
$64,001 ----$65,000 --------$749
$65,001 ----$66,000 --------$756
$66,001 ----$67,000 --------$763
$67,001 ----$68,000 --------$770
$68,001'----$69,000 --------$777
$69,001 ----$70,000 --------$784
$70,001 ----$71,000 --------$791
$71,001 ----$72,000 --------$798
$72,001 ----$73,000 --------$805
$73,001 ----$74,000 --------$812
$74,001 ----$75,000 --------$819
$75,001 ----$76,000 --------$826
$76,001 ----$77,000 -------- $833
$77,001 ----$78,000 --------$840
$78,001 ----$79,000 --------$847
$79,001 ----$80,000 --------$854
$80,001 ----$81,000 --------$861
$81,001 ----$82,000 --------$868
$82,001 ----$83,000 --------$875
$83,001 ----$84,000 --------$882
$84,001 ----$85,000 --------$889
$85,001 ----$86,000 --------$896
$86,001 ----$87,000 --------$903
$87,001 ----$88,000 --------$910
$88,001 ----$89,000 --------$917
$89,001 ----$90,000 --------$924
$90,001 ----$91,000 --------$931
$91,001 ----$92,000 --------$938
$92,001 ----$93,000 --------$945
$93,001 ----$94,000 --------$952
$94,001 ----$95,000 --------$959
$95,001 ----$96,000 --------$966
$96,001 ----$97,000 --------$973
$97,001 ----$98,000 --------$980
$98,001 ----$99,000 --------$987
$99,001 -- $100,000 --------$994
Building Permit Fees for projects with total values of $100,001 to $500,000 are $994 for the first $100,000 plus
$5.60 for each additional $1,000 or fraction thereof up to and including $500,000. Building Permit Fees for project
with total values of $500,001 to $1,000,000 are $3,233.75 for the first $500,000 plus $4.75 for each additional
$1,000 or fraction thereof up to and including $1,000,000. Building Permit Fees for projects with total values of
$1,000,001 or more are $5,608.75 for the first $1,000,000 plus $3.15 for each additional $1,000 or fraction thereof.
I want to preface my remarks with no one I believe does not appreciate all of the city's
hard working people more than me. I think I make that known any chance I have. And
that this is not a personal matter, it is a budget and finance matter that draws heavily on
our citizens and our staff.
A brief working diagram of how finance works for the city as it has been explained to
me and I as understand it
Budgets are established and department heads oversee the purchases up to $1,000 for the
day to day operations of the city.
Purchases of 1000- a buck less of $5,000 are supposed to be approved by a Dept. Head
and the CAO or Mayor who may be acting in the role of CAO. And the belief was that
these would be planned purchase's, within budgeted amounts.
From $5,000- 80K purchases had to be budgeted prior to the expenditure and follow the
guidelines of the Purchase and Procurement Policy PPP that I introduced to city council
on Aug. 20, 2013.
The present PPP is a broken and failed policy that is in need of rapid replacement! I will
explain why this is later. And I am asking that other council members join me in
demanding it's replacement?
Historically it has been the work of the Budget and Finance committee to review claims
that was the opinion of the Chair of B&F on April 14 when in the chair of B&Fin an
email to the city clerk mentioned the importance of every one B&F to have a working
understanding of the sums we vote and approve and send on the whole council for final
approval because they trust the work we do. This has been up until recently the work of
B&F. And appears on the rarely questioned consent agenda at Council Meetings.
It has become apparent from an email dated April 13, 2018 by the City Attorney to the
mayor and handed out to B&F committee members on April 24 that what the B&F is not
to be trusted with review, or especially halting questionable warrants against the city.
The message I took away was that the members of B&F as well as the council do not
have the where with all to consider or even have knowledge of what spending is taking
place, therefore either unknowingly or unwittingly delegated our authority but not our
responsibility for how public funds are spend! Even the email points out that the City
Council retains the complete authority to approve claims, which would imply not
approve claims as well. Apparently a the legislative body of this city can held
accountable for the spending habits of other but cannot raise an objection.
It has become apparent to me that some different methods have been used to get around
spending city funds by using multiple purchase orders, flying under the $4,999 for each
order because the present PPP or not gaining approval for purchases even in advance of
over a 1000 up to the $4999. Neither of which was ever the spirit of the PPP.
The valuable checks and balances needed by council have been stripped from the very
ones who have been traditionally the gate keepers. There appears to be a double
standard when the Mayor was a sitting member of B& F and now that he is the mayor?
The new Mayor has given assurances that the multiple PO's will not be a future
problem, but since even as a member of B&F in past or knowing if the present mayor
will have a short or longer tenure as Mayor and since no elected office holder is in office
forever... all make me want to suggest that we make the needed changes now rather
than later when this might be ever be considered again as a way to get around the PP..
I also think the spending allowance by the Mayor and a Dept. Head with only those
spending allowed to make the justification is to large an amount, personally I would like
to see that reduced.
Therefore, and we have been told that work on a new PPP is in the works, I am
requesting Council discuss, and consider repeal and replacement of the PPP as soon as
possible so as to not disrupt service to citizens.
I would like to see the actual work of the Budget and Finance committee to be what it is
supposed to be watch on behalf of the whole council the Budget and Finances of the
city. With supporting documentation provided to the whole council since MCA Section 7
-64301 requires by law that the city council has ultimately the responsibility for where
tax payer money goes.
The present PPP has permitted abuse, I DO NOT think fraud, but abuse! Which
ultimately could lead to fraud if gone unchecked should council not do it's job.
It is my sincere desire to make changes that improve the quality of all life in the City of
Laurel, not policy that only benefits a few, but taxpayers who get the most from every
dollar spent by the city and employees who need those dollars to do their jobs.
Dear Mayor Nelson:
In response to your request I am providing you an opinion regarding the authority of the Budget and
Finance Committee. 1 reviewed the City Charter, Montana Code Annotated ("MCA"), and the Laurel
Municipal Code ("LMC"). Please be advised there is nothing in the City's Charter or the MCA regarding a
City Budget and Finance Committee. However, pursuant to City Ordinance, the Budget and Finance
Committee constitutes one of four standing committees, LMC Section 2.08.240. There is no further
mention of the Budget and Finance Committee or standing committees in the LMC. Thus there is no
description of the authority of standing committees and specifically the Budget and Finance
Committee. As a consequence, I asked City Staff to search the City Resolutions to determine or define
the Budget and Finance Committee's authority, and after an exhaustive search, the only Resolutions
addressing the Budget and Finance Committee's Authority are the resolutions adopting and modifying
the City's Purchasing Policy. Therefore, my opinion is simple. The Budget and Finance Committee has
only the authority defined within the City's Purchasing Policy which was adopted by the City
Council. The Budget and Finance Committee has no further authority or power. Thus, your inquiry
whether the Committee has authority to restrict the spending authority of employees or department
heads must be answered by reviewing the Purchasing Policy. The short answer is no. The Budget and
Finance Committee has no authority to restrict the purchasing authority of any employee or department
head. The Committee's power is to review and approve purchases valued over $5000 but less than
$80,000. The Committee has no further authority.
As background, the Purchasing Policy was created during Mayor Ken Olson's tenure. Prior to Mayor
Olson, all claims or warrants had to be approved by the City Council pursuant to MCA Section 7-6-
4301. The Mayor, Staff and Council realized there was substantial delay when small purchases were
required for the City to operate since the purchases had to wait for city council approval at the next
regular meeting after going through a council workshop. Therefore, the Council considered delegating
some approval authority to the Mayor. Since Laurel had never utilized a delegation of authority, the
Council delegated only $5000 of expenditure authority to the Mayor. In short, the Mayor was
authorized to spend $5000 without any council authorization. Seeing that the delay was not resolved
for amounts over $5000, the City Council EMPOWERED the Budget and Finance Committee by
delegating their authority to approve expenditures for items over $5000 and less than $50,000. The
$50,000 limit was subsequently raised after the Montana law changed the mandatory bidding
requirements from $50k to $80k. In simple terms, the City Council, through the Purchasing Policy, has
delegated its authority to spend up to $5000 to the Mayor. Further, the City Council has delegated its
authority to spend funds that exceed $5000 but are less than $80,000 to the Budget and Finance
Committee so long as the expenditure is budgeted. Anything over $80,000 must comply with
competitive bidding statutes and be approved the City Council.
In regard to employees/department heads, the Mayor and CAO are in charge of the City's administrative
duties, including the supervision of employees and department heads. If a department head is violating
the purchasing policy, then the Mayor or CAO would be the positions authorized to address the
department head's action or inaction through disciplinary proceedings. The Budget and Finance
Committee's previous action to remove a department head's purchases was likely an improper action,
however it was never challenged by the department head, mayor or CAO at the time so an opinion
regarding the action was never issued. At this point, the City's expenditures and purchases are defined
by the Purchasing Policy. Ultimately the City Council retains the complete authority to approve
claims. Therefore, in my opinion, if a proposed purchase is denied by the Budget and Finance
Committee, the purchase could be brought to the entire City Council for consideration and if approved
would trump the Budget and Finance Committee's decision.
1 hope this addresses the issues you are having Mayor Nelson. If you need further analysis or
clarification, please advise.
Sincerely,
SO4W S. 1201i�
Sam S. Painter
Thompson Painter Law P.C.
Professional Center @ 32nd
176 South 32nd Street West, Suite 4
Billings, MT 59102-6867
Telephone: (406) 294-4230
Facsimile: (406) 294-4235
Mayor, in response to your question, the City (Employees, Mayor, Council) must comply with the
Purchasing Policy that was adopted by the City Council. As I recall, there is no authority under the policy
for the Budget and Finance Committee to "reject" or deny a claim. Again, the Committee function has
been to review claims prior to submission to the entire Council. The Committee process has been to
review and approve claims, which are then sent to the entire Council for approval as part of the Consent
Agenda. If a claim or warrant is denied by the Committee, my advice would be to pull it from the
Consent Agenda and place before the entire Council. The entire Council approves/denies the City's
Claims pursuant to Montana law.
In reality, the Purchasing Policy constitutes a delegation of the City Council's authority to approve
warrants/claims against the City. For example, the City Council of Missoula delgates $1,000,000 of their
authority to the Mayor. The Mayor reviews and approves the warrant/claim and it is paid so long as it is
at or below $1,000,000. The City Council in Laurel delegated authority to the Mayor to approve
warrants/claims for up to $5000. There is no Budget/Finance Committee review or
consideration. However, for warrants/claims between $5000-$80,000, the City Council delegated
authority for the Budget and Finance Committee to review and approve. Anything in excess of $80,000
must have the entire Council's Approval, pursuant to the Policy.
I hope I am addressing the issue directly? If not, perhaps you can call and frame the issue for me.
Best regards,
SO4W S. PaiAA�
Sam S. Painter
Thompson Painter Law P.C.
Professional Center @ 32nd
176 South 32nd Street West, Suite 4
Billings, MT 59102-6867
Telephone: (406) 294-4230
Facsimile: (406) 294-4235
1 611100-81"
01 11-1-a 110111ula 36 1 W# SUI)IR [W18111 'AN IV 101WNW4039 W-1111194 pip
WHEREAS, the City adopted its Purchase and Procurement Policy through Resolution 805-
U 4 on December 6, 2005 and revised the Policy on December 6, 2008 through Resolution No. R08-
128 and revised the Policy again on November 15, 2011 through Resolution No. R1 1-115; and
WHEREAS, Staff reviewed the existing Purchase and Procurement Policy (Policy) and
determined further amendments are necessary to remain current with changes in Montana law and to
clarify and streamline the process for the entire Staff, and
WHEREAS, Staff prepared the proposed Policy for the City Council's consideration and the
attached Policy contains all of the recommended amendments to the existing Policy;
WHEREAS, the proposed amendments have been reviewed and approved by the City Attorney
as in compliance with existing City Ordinance and Montana law.
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Laurel, Montana,
that the attached amended and proposed Purchase and Procurement Policy is hereby adopted by the
City Council.
Introduced at a regular meeting of the City Council on August 20, 2013, by Council Member
McGee
PASSED and ADOPTED by the City Council of the City of Laurel, Montana, this 20th day of
August, 2013.
APPROVED by the Mayor this 20'h day of August, 2013.
CITY O LAUREL
�&nneth E. Olson, Jr.1y.00"
ATTEST: t-tj �-Ljc
- t/ -,j
Shirley Ewan, Cler]&Treasurer
*ro3as to
t fon
-'Sam S. Painter,- Civil City Att4fiey
R13-55 Amend Purchase.Pr6curement Policy
The City of Laurel is empowered to enter into, execute and effectuate contracts in accordance with §7-
5-4301, MCA.
The City of Laurel is entrusted with public monies and is dedicated to the stewardship of expending the
public's funds in a lawful, reasonable and prudent manner. The City shall consider the lowest possible cost of
the goods or service needed, the timeliness of delivery, and the quality of the product when making the
purchase. Whenever possible, goods shall be inspected prior to payment being made. To standardize the
purchasing process, the City of Laurel hereby adopts the following "Purchase and Procurement Policy" in order
to effectuate Title 3, Chapter 3.08 of the Laurel Municipal Code in order to provide a lawful, equitable and
defensible guideline for purchases and procurement by the City to ensure they are in the best interest of the City
of Laurel.
Contracts and products over $80,000
1. The City shall utilize competitive and advertised bidding for any proposed purchase or project
(Project) that constitutes a:
a. Purchase of automobiles, equipment, appliances, materials or supplies that will cost over
$80,000.
b. Construction, repair or maintenance projects that will cost in excess of $80,000.
c. It is illegal to circumvent the competitive bidding process by dividing a contract into
smaller segments to avoid the bidding process.
d. For projects $80,000 or over, the department head will consult with the CAO /Mayor with a
plan and a cost estimate.
e. The department head or city staff will prepare an advertisement with the assistance of the
engineer or professional, if applicable. The CAO will approve the advertisement. The
Council Secretary or Clerk/Treasurer will submit the advertisement for publication. If some
other entity, approved by the City, submits the advertisement to the media or posts the ad,
then a copy will be forwarded to the Council Secretary and Clerk/Treasurer.
2. The Bid Advertisement will be placed twice in a local newspaper or other- publication, with the second
publication not less than 5 days prior to the City's bid opening.
• At a minimum, the City's advertisement shall contain the date the bid closes, the time and place of
the bid opening, and an address and telephone number of the City representative who may be
contacted for further information on the process.
3. At the conclusion of Bid Opening, Staff shall present its recommendations and the lowest responsible
bid to the City Council.
• Council shall award the contract to the lowest responsible bidder, if it is in the best interest of the
City.
• The City retains the right to reject or re -advertise for any bid advertised.
• Projects will not commence until a contract is approved by the City Council.
4. Contracts for professional, technical, engineering, and legal services are exempt; however, all such
contracts must be approved by Resolution of the City Council and executed by the Mayor/CAO.
5. The City Council hereby delegates its authority to the Mayor/CAO to approve and execute any written
necessary aiteratim modification or changeorder so long as the cost of the changes does not exceed the
City of Laurel Purchase and Procurement Policy
Adopted 12/06/2005 — Resolution No. R05-114; Revised & Adopted 12/06/2008 — Resolution No. R08-128;
Revised & Adopted I I/15/2011 — Resolution No. RI 1-115; Revised & Adopted 08/20/2013 — Resolution No. R13-55
contingency budget approved by the City Council for the Project. The changes will be reported to the
City Council.
6. The City shall not pay a contractor for extra work caused by an alteration, modification or change order
unless the Mayor's/CAO's approval is obtained, or if necessary, a City Council Resolution is passed and
an agreement signed (5).
Contracts and Products Valued at $3,000 and under $80,000
1. All purchases must be budgeted for prior to the expenditure. In cases of emergency, the department
head will contact the CAO for emergent purchases.
2. All purchases must be reviewed and approved by the Budget/Finance Committee prior to ordering. The
requested purchase will be submitted on a purchase requisition form. After review by the Committee,
the Clerk/Treasurer will inform the department head to proceed.
• If a purchase or service is $5,000 or over and less than $80,000, at least 2 quotes must
be attached to the requisition with a note from the department head as to why they
prefer the chosen product or service. This section does not apply to essential recurring
operational supplies and services.
Staff will choose the best alternative for the City.
Should this requisition be for a small service contract, the department head will consult
the CAO/Mayor and with their approval consult with the City Attorney for a Small
Service Contract that will be presented to the Council for approval.
All purchases in this category will have the department head, CAO and Budget/Finance
signatures on the purchase requisition.
Purchases of $1,000 to $4,999
1- Purchases of $1,000 to $4,999 require the following two signatures on the purchase order.
• Signature of the Department Head.
• Signature of the CAO/Mayor.
Purchases under $1,000
1. All purchases under $1,000 require two signatures on the purchase order or invoice.
• Signature of Employee making purchase.
• Signature of Department Head.
Exemptions from Bidding or Advertising for Emer mey- Contracts
1. The provisions requiring advertisement for bids shall not apply upon the happening of any
emergency natural or manmade emergency.
2. An emergency must be declared by the City Council/Mayor or CAO for this to apply.
Employees shall, at all times, keep the best interest of the City in mind and make every attempt to get
the best quality with the best price when purchasing for the City.
City of Laurel Purchase and Procurement Policy
Adopted 12/06/2005 — Resolution No. R05-114; Revised & Adopted 12/06/2008 — Resolution No. R08-128;
Revised & Adopted 11/15/2011— Resolution No. RI 1-115; Revised & Adopted 08/20/2013 — Resolution No. R13-55
CITY OF BILLINGS
PURCHASING
PROCEDURES
July 2017
All forms, template documents, etc. are located on the Server
at Wt-w3kVkall users\Purchasing
City of Billings Purchasing Procedures
Page 1 of 24
July 2017
A. ROLES OF PURCHASING 4
A.1 DEPARTMENTAL STAFF....................................................................................................................4
A.2 THE PURCHASING AGENT.................................................................................................................4
B. PURCHASING PROCEDURES
C1
B.1 PROCEDURES......................................................................................................................................6
B.2 PERFORMANCE, PAYMENT AND/OR LABOR AND MATERIALS BONDS.................................7
B.3 INSURANCE..........................................................................................................................................7
B.4 INVITATION FOR BID (IFB) PROCESS..............................................................................................8
B.5 REQUEST FOR PROPOSAL (RFP) PROCESS...............................................................................11
B.6 LEGAL ADVERTISEMENT REQUIREMENTS.................................................................................12
B.7 SOLE SOURCE PROCUREMENT.....................................................................................................13
C. PURCHASING METHODS 14
CAPETTY CASH.......................................................................................................................................14
C.2 PURCHASING CARDS......................................................................................................................14
C.3 PURCHASE ORDERS........................................................................................................................14
C. 4 ENCUMBRANCES..............................................................................................................................14
C.5 BLANKET PURCHASE ORDERS.....................................................................................................14
C.6 VOUCHER PAYMENTS/RECURRING PURCHASES.....................................................................15
D. SPECIAL PURCHASING DETAILS AND INFORMATION 15
D.1 PREVAILING WAGE RATES.............................................................................................................15
D.2 STATE GROSS RECEIPTS TAX.......................................................................................................16
City of Billings Purchasing Procedures July 2017
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BIG SKY
D.3 APPRAISALS.......................................................................................................................................16
DA USED EQUIPMENT PROCUREMENT..............................................................................................16
D.5 USED VEHICLE PURCHASES..........................................................................................................16
D.6 OTHER USED EQUIPMENT PURCHASES......................................................................................17
D.7. EMERGENCY PURCHASES..............................................................................................................17
D.8 TRIAL BASIS PURCHASING.............................................................................................................18
D.9 SURPLUS PROPERTY PROCUREMENT........................................................................................18
D.10 SURPLUS PROPERTY DISPOSAL...................................................................................................18
E. DELEGATIONS OF AUTHORITY - APPROVALS 20
E.1 APPROVALS OF INVOICES AND PURCHASE ORDERS.............................................................20
F. SUPPLIER AGREEMENT/CONTRACT PROCESS
20
F.3 CONTRACTS.......................................................................................................................................21
F.3.1 COUNCIL APPROVED CONTRACTS...............................................................................................21
F.3.2 NON -COUNCIL APPROVED CONTRACTS.....................................................................................21
G. SIGNING AUTHORITY - CHANGE ORDERS & AMENDMENTS 22
H. QUICK REFERENCE CHART
23
All forms, template documents, etc. are located on the Server at k\lt-w3k071all userslPurchasing
City of Billings Purchasing Procedures
Page 3 of 24
July 2017
A.1 DEPARTMENTAL STAFF is responsible for drafting specifications with
assistance from the Purchasing Agent, for all items where the City is required to
provide an opportunity for competition, including construction and professional
services.
A.2 THE PURCHASING AGENT is responsible for the review and proper
processing of all procurement acquisitions made by the City. Additionally, the
Purchasing Agent will:
A.2.1 As needed, purchase or assist in the purchases of all materials,
supplies and services needed by any user department;
A.2.2 Discourage uniform bidding (prearranged bid rigging) and endeavor
to obtain as full and open competition as possible on all purchases
and sales;
A.2.3 Continually appraise developments in the field of purchasing:
prices, market conditions and new products to utilize the benefits of
research done in the field of purchasing by other governmental
jurisdictions, national technical societies and trade associations
having national recognition and by private businesses and
organizations;
A.2.4 Standardize and achieve volume procurement using collective
buying, City warehousing, lead purchaser or other concepts, which
produce the lowest price possible to the City for the quality of goods
or services required;
A.2.5 Prescribe and maintain such forms as he/she shall find reasonable
and necessary;
A.2.6 Explore possibilities of buying in bulk so as to take full advantage of
discounts;
A.2.7 Join with other governmental units and agencies in cooperative
purchasing plans when the best interests of the City would be
served;
City of Billings Purchasing Procedures July 2017
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The State of Montana maintains a list of term contracts in which a
source or sources of supply are established for a specific period of
time at a predetermined price. City staff may utilize any of the term
contracts listed by the State of Montana agencies as a cooperative
purchaser. The list is maintained at
http://svc.mt.gov/qsd/apps/termcontractdefault.aspx. City staff may
utilize term contracts listed by the State without further competition.
A.2.8 Advise and assist the Finance Director and Administrative Services
in the formulations and recommendations of policies and
procedures in connection with the purchasing activities of the City;
A.2.9 Manage and maintain the Purchasing Card program;
A.2.10 Assist departments and divisions in the coordination, solicitation
and award of all quotes, bids, RFPs and otherwise;
A.2.11 Maintain a list of all vendors who have expressed an interest in
selling to the City of Billings. It will be the responsibility of the
departmental author to assure all interested parties will be
contacted;
A.2.12 Review purchase orders and invoices for compliance with the City
of Billings Purchasing Policy and Procedures;
A.2.13 Perform such other duties as may be required by the Finance
Director.
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July 2017
B.1 PROCEDURES: the following procedures outline the Purchasing Process and
define the involvement of Purchasing.
13.1.1 Purchases of $99.99 and under, the preferred method is petty cash
or purchasing card, but invoices may be processed, if necessary.
B.1.2 Purchases of $100 to $4,999.99 do not require price quotes or bids
and the Purchasing Agent need not be involved. These purchases
may be made through:
■ Purchasing Card (up to $2,500)
■ Purchase Order or Invoice
13.1.3 Purchases from $5,000 to $49,999.99 requires three (3) written
quotes. The lowest responsible bidder will be selected. Depending
on the complexity of the project or quote requested, the Purchasing
Agent may be involved. The responsible department shall
complete and sign a Quote Form, which subsequently will be
attached to the contract, invoice or Purchase Order. Catalog prices
are acceptable when local vendors cannot be found.
NOTE: The lowest quote does not have to be accepted if it is
documented that a specific supplier in the past has been a poor
performer or has provided sub -standard goods. Documentation
must be presented to and reviewed by the Purchasing Agent and
Legal Department to determine whether or not a supplier will be
excluded from competition. The City Administrator must approve
this stated special circumstance upon signing of the contract.
B.1.4 Purchases for architectural, engineering and land survey services,
as well as miscellaneous professional and consultant services, for
$19,999.99 and above require a Request for Proposal (RFP), the
involvement of the Purchasing Agent is optional and legal
advertising is mandatory. A selection committee is also required.
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July 2017
B.1.5 Purchases for any automobile, truck, other vehicle, road machinery,
other machinery, apparatus, appliances, equipment, materials or
supplies, or for construction, repair or maintenance in excess of
$49,999.99, requires a competitive, sealed bid process (State Law
MCA Title 7, Chapter 5). Purchasing Agent involvement is optional
and a legal advertisement is mandatory. There are two additional
guidelines that may apply to sealed bids:
B.2 PERFORMANCE, PAYMENT AND/OR LABOR AND MATERIALS
BONDS - The bidder may be required to furnish an approved Performance
Bond, Labor and Materials Bond, or Payment Bond in the amount of one hundred
percent (100%) of the contract amount., conditioned to the effect that the
contractor shall faithfully perform the terms and conditions of the contract and
shall indemnify the City from the negligent acts of the contractor, his or her
agents or servants in their performances of the terms and conditions of the
contract, and shall pay all proper claims of subcontractors and suppliers.
Construction contracts generally require additional bonds, but all other contracts
shall be discussed with the Purchasing Agent to determine if necessary.
B.3 INSURANCE - If the contract requires work to be completed for the City by
contractor, the City of Billings must require that the successful contractor
maintain in full force and effect a Workers' Compensation Insurance Policy on its
employees and Comprehensive General Liability Insurance Policy naming the
City of Billings as an additional insured in specified predetermined amounts, to
provide protection to the parties to the agreement. Automobile liability insurance
may also be required. The Purchasing Agent will advise the issuing department
regarding insurance needs.
NOTES:
• All insurance requirements and any additional bonds must be stated
in all advertisements so contractors may adjust their quote or bid
accordingly.
The City Administrator may, in writing, allow for lesser amounts of
insurance coverage or grant an exception.
City of Billings Purchasing Procedures
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July 2017
B.4 INVITATION FOR BID (IFB) PROCESS
B.4.1 According to State law, MCA Title 18, Chapter 4, an Invitation for
Bid must be issued and shall include a purchase description and
conditions applicable to the procurement.
As per State law, MCA Title 7, Chapter 5, sealed bids are used for
purchases for any automobile, truck, other vehicle, road machinery,
other machinery, apparatus, appliances, equipment, materials or
supplies, or for construction, repair or maintenance in excess of
$49,999.99.
The City will give adequate public notice of the Invitation for Bids in
a reasonable time before the date of the opening of the bid. A
legal advertisement (i.e. publication in newspaper) must appear two
(2) consecutive weeks prior to the bid opening.
NOTE: When Federal money is involved in the bid, then the legal
advertisement must appear for three (3) consecutive weeks prior to
the bid opening.
B.4.2 Sealed Bids are received in the office of the City Clerk and are
opened publicly at 2:00 PM on Tuesdays in the City Hall
Conference Room. A departmental representative and the
Purchasing Agent shall be present to record bids on a Bid
Tabulation Sheet. Each bidder and any member of the public has
the right to attend, and to examine and inspect all bids after they
are opened. The user department, with the assistance of the
Purchasing Agent and/or the Legal Department, if necessary, shall
evaluate and jointly agree on a recommendation of award.
City of Billings Purchasing Procedures
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July 2017
B.4.3 Each bid must include BID SECURITY equal to 10% of the bid amount,
which may be made via Certified Check, Cashier's Check, or Bid
Bond payable to the City. The bid security will be retained by the
City Clerk until the successful bidder enters into a contract with the
City. Unsuccessful bidders shall be entitled to the return of the
submitted security (other than a bid bond) after a formal award has
been made. A successful bidder, upon failure on his part to enter
into a contract within the time specified after notification of the bid
award, shall forfeit any surety deposited with the City of Billings.
B.4.4 The name of each bidder and amount of each bid and other
relevant information is recorded.
B.4.5 Bids are unconditionally accepted, except bids without bid security.
All other irregularities shall be examined after the bid opening with
assistance from the Legal Department.
B.4.6 If a bid award is made, it is with promptness by written notice to the
lowest bidder who has met all the requirements and specifications
set in the Invitation for Bid. Also, the bid award recommendation is
submitted for transmittal to the City Council for their approval. The
recommendation must include a list of all bidders, bid amounts and
an explanation.
B.4.7 Resection of Bid - All bids received in response to an advertisement
may be rejected. The Purchasing Agent, if involved in the bid, and
user department, together, may recommend rejection of all bids for
an item, group of items or the entire scope if such action is
determined to be necessary and in the best interests of the City. An
example of when such action would be appropriate is incomplete or
incorrect specifications.
B.4.8 A contract is executed upon an award of bid including the terms
and conditions and specifications set forth in the Invitation for Bid.
B.4.9 All bid materials will become the property of the Purchasing Agent,
for filing, future reference and maintenance for historical purposes
and updating as needed for new procurements.
City of Billings Purchasing Procedures July 2017
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B.4.10 In the event two (2) or more bidders offer identical bids, all factors
considered, new bids may be invited or award made by the drawing
of lots, witnessed by the Purchasing Agent and the applicable
bidders.
B.4.11 Any bidder protests of award recommendations and/or bid
specifications must be filed within seven (7) days of bid opening.
Upon receiving a written protest, the Purchasing Agent determines
if the protest has sufficient merit and if so, schedules an informal
hearing with the protesting bidder and the user department.
At this hearing, all parties discuss the basis of the protest and
attempt to resolve the dispute based on fact. If the protesting party
is not in agreement with the results of the informal hearing, they
may appeal to the City Administrator. Ultimately, final decisions rest
with the City Council.
B.4.12 An Invitation for Bid (IFB) shall include the following:
• Bid submission requirements
• Purchase description/scope of services
• Evaluation criteria
• Contract terms and conditions
• Non -collusion statement
• DBE Statement for Airport and MET Transit Departments
City of Billings Purchasing Procedures
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July 2017
B.5 REQUEST FOR PROPOSAL (RFP) PROCESS
13.5.1 According to State law, MCA Title 18, Chapter 8, Requests for
Proposals are utilized for most services (architects, engineering,
land surveying), especially professional consulting, and all complex
projects (i.e.; office supplies supplier consolidation, software
packages) over $19,999.99 and must be accompanied by a legal
advertisement.
B.5.2 The Purchasing Agent should be involved (or at least advise) in the
RFP creation and solicitation for professional services (except
engineering), facilities, and any other complex projects.
B.5.3 Staff will send out all RFPs, create a selection committee, receive
all RFP responses and distribute accordingly to the committee. An
RFP may be sent and received electronically, as long as a
Noncollusion Form is signed and sent back to staff prior to
receiving the proposal.
B.5.4 A Request for Proposals shall include the following
• Purchase description
• Scope of Work/Services
• Evaluation Criteria
• Contract Terms and Conditions
• Proposal submission requirements
• Non -collusion statement
• DBE statement for Airport and MET Transit Departments
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July 2017
B.6 LEGAL ADVERTISEMENT REQUIREMENTS
B.6.1 A legal advertisement is required for all Invitations for Bids and
Requests for Proposals.
B.6.2 The City Clerk coordinates ALL legal advertising for the City's
equipment purchases, service procurement and meeting notices.
B.6.3 Legal advertising is done on a weekly basis, with publication taking
place on Thursdays of each week.
B.6.4 Ad copy and specifications are due to the City Clerk by Noon on
Tuesday during the first week of publication.
B.6.5 Legal ads and specifications must also be submitted electronically
(email) to the City Clerk to facilitate website posting.
B.6.6 Legal ads generally must be published once per week for two
consecutive weeks, with at least SIX (6) days separating the
publications. This rule applies unless there is a specific
advertising/notice requirement unique to the circumstances. For
example, if the project or purchase will be utilizing Federal funds,
there may be specific advertising requirements over and above the
basic requirements named above.
B.6.7 Legal ads must contain the following information at a minimum:
• The name of the project
• Submittal information including:
o Bids: Deadline day, date, time and place for bid submittal
and day, date, time and place for bid opening.
o Requests for Proposals: deadline day, date and time for
proposal submittal.
• The name, physical address and phone number of a person to
contact for additional information.
City of Billings Purchasing Procedures
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July 2017
• Information on the day, date, time and place of a pre-bid
meeting (if one is being held) and whether attendance is
mandatory. (it is recommended that, if a pre-bid meeting is
held, attendance should be mandatory).
• The dates of publication.
• Standard bidding or RFP language as contained in the template
documents on the City's server.
B.6.8 The advertising and opening dates should be coordinated in
advance with the City Clerk's office.
B.7 SOLE SOURCE PROCUREMENT
13.7.1 State law, MCA Title 18, Chapter 4, states that a contract may be
awarded for a supply or service item without competition when
there is only one source for the supply or service item. This bidding
exception may only apply when the department head or designee
determines in writing that there is only one source for the required
supply or service item.
B.7.2 The Purchasing Agent must receive an explanation in writing
attached to the Purchase Order that only one practical source
exists.
13.7.3 Examples of sole source items:
• Patented items
• Copyrighted materials
• Secret processes
• Utilities - items for compatibility/standardization
• Specialized proprietary equipment
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July 2017
CA PETTY CASH
Some departments maintain a petty cash fund that is used for small dollar
amount purchases. An Administrative Order adopts the City of Billings Petty
Cash Policy.
C.2 PURCHASING CARDS
The Purchasing Agent manages the City's Purchasing Card Program.
Purchasing cards will be issued to departments that request them. The cards are
used much the same as a credit card and are assigned to a specific person with
a specific limit. The types of purchases are limited as well. The Purchasing Card
Policy is provided to each cardholder.
C.3 PURCHASE ORDERS
Purchase orders are commonly used to initiate the purchasing process and in
some circumstances to confirm an order already placed with a vendor. It
identifies the vendor, the purchasing department, price, quantity, and account
number to be charged.
C.4 ENCUMBRANCES
Also created by Purchase Orders. Encumbrance Payment Request Forms must
be used for order and encumbrance payment requests.
C.5 BLANKET PURCHASE ORDERS
For repetitive purchases of clerical supplies, repair parts, hardware, photo
service, printing and other similar items, blanket purchase orders are created for
a specified time (usually one month) to selected vendors.
City of Billings Purchasing Procedures July 2017
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Blanket Orders can be created by the Finance Department for the whole City or
Departments can create their own departmental Blanket purchase order. Upon
receiving the invoice, the designee should check the order for accuracy and
completeness before signing. Each department will enter their own invoice or
delivery slip against the blanket P.O.
For City Blanket Orders, all invoices for the month are received against the
blanket order by the 5th business day of the following month. The vendor
statement is balanced to the computer software and invoices. Accounts Payable
then makes authorization for payment. Before the current month's blanket order
expires, Accounts Payable sends the vendor a new Blanket Purchase Order as
well as the department designees.
C.6 VOUCHER PAYMENTS/RECURRING PURCHASES
Recurring purchases are those for periodically billed services and various other
types of payment as determined by the Finance Director.
Vouchers are also used for Jury for Municipal Court/jury witnesses fee
reimbursement, Municipal Court Witness Fee reimbursement, Petty Cash
reimbursement, refunds for one time vendors, accounts receivable refunds and
Public Works Utilities refunds, and Finance Petty Cash reimbursements.
The Finance Director or his designee verifies, reviews and approves the
documentation for the payment of vouchers.
D.1 PREVAILING WAGE RATES
As per State law, MCA Title 18, Chapter 2, for construction projects where the
cost will exceed $25,000, there must be a statement in the bid documents calling
for the contractor to pay the prevailing wage rate as established by the State of
Montana, as well as a statement and copy of wage rates included in the contract
documents.
City of Billings Purchasing Procedures July 2017
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D.2 STATE GROSS RECEIPTS TAX
One percent (1 %) contractors' tax must be deducted from all payments on
construction contracts totaling over $5,000 and paid to the State.
D.3 APPRAISALS
The City Council has adopted a policy resolution that establishes criteria for
appraisals when the City purchases land.
D.4 USED EQUIPMENT PROCUREMENT
All used equipment which would have a value, if new, of $5,000 or more must be
included in the Equipment Replacement Plan or Technology Replacement Plan,
or be specifically approved by the City Administrator.
D.5 USED VEHICLE PURCHASES
All purchase orders for used vehicles are substantiated by at least two (2) quotes
of other comparable vehicles to include mileage, condition, and auxiliary
equipment of each vehicle quoted.
The vehicle selected is inspected by a City mechanic at the Fleet Services
Division and approved by the Fleet Services Division. Airport and Public Works
Utilities are not required to obtain approval by the Fleet Services Division as they
have their own mechanics; they are required, however, to have either Fleet
Services Division mechanics or their own mechanics inspect and approve any
used vehicle before they purchase it.
The head of the department that is purchasing the used vehicle shall approve the
purchase order as to procedure and shall submit it, along with (a) the comparable
price quotes described above and (b) the Fleet Services Division or other city
mechanic approval, to the Finance Director and the City Administrator for
approval before commitment is made to the vendor to purchase the vehicle.
The Fleet Services Division will arrange for picking up the vehicle and processing
the title as the County Treasurer's Office will only accept the City Clerk's
signature on title applications.
City of Billings Purchasing Procedures July 2017
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The Purchasing Agent will send the application for title and registration receipt
made out in the name of "City of Billings," to the City Clerk. Information will be
provided as to the equipment number and new plates if needed, or if an old plate
is being transferred to the newly purchased vehicle. If there is a trade-in, the City
Clerk will sign off on the title and send it to the Fleet Services Division to transmit
it to the proper agency.
D.6 OTHER USED EQUIPMENT PURCHASES
In order to purchase a used item exceeding $1,500, it must be in excellent
condition and a good buy. In certain cases, there are no comparable used
equipment items which can be purchased (mowers, specialty equipment, fire
trucks, etc.). In these cases, the cost of a new piece of comparable equipment
will be obtained and qualified by the Fleet Services Division or departmental
maintenance people and will inspect the equipment and state in writing to the
Purchasing Agent why the City should purchase the equipment. When a
comparable item can be found, the price of these units should be shown and an
explanation given for the recommended purchase.
For clarity and definition, a qualified expert's opinion would be discounted by the
Purchasing Agent if, for example, the purchase order originator solicited an
opinion from the company who is selling the item.
D.7. EMERGENCY PURCHASES
Emergency authority is to be used "in cases of extreme and immediate necessity
where materials, services or equipment are needed for a situation where the
health, safety or welfare of the public is endangered or the City is exposed to
serious cost consequences if immediate corrective or preventive action is not
taken".
If an emergency does occur, the Purchasing Agent will provide support for
expediting and determining the best purchasing method.
All emergency purchase orders will be signed by the department head or
designee and will have a brief explanation of the emergency attached.
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July 2017
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Emergency purchases over $19,999.99 require the City Council by resolution to
declare the emergency and record it in the minutes of the council meeting. The
requirements for sealed bids can be waived, and the purchase made in the
fastest possible manner. (MCA Title 7, Chapter 5)
D.8 TRIAL BASIS PURCHASING
Often opportunities arise in the form of an offer to use and try materials and/or
products from 10 to 90 days before requiring the City to purchase.
These orders will be placed in the usual manner. Submit a purchase order to the
Finance Department and clearly indicate that it is on a term basis only. Place the
order accordingly and advise the user when the time has come to either
purchase or return the merchandise.
This will prevent the City from incurring obligation for payment if the order is not
returned in time, or if it is lost or damaged in the mail.
D.9 SURPLUS PROPERTY PROCUREMENT
In reference to MCA Title 18, Chapter 5, a Montana state agency is designated
for federal surplus property.
D.10 SURPLUS PROPERTY DISPOSAL
The Purchasing Agent is designated as Surplus Sales Officer. He/she is
responsible for disposing of all surplus personal property, and obsolete and scrap
material of any type that belongs to the City of Billings in a manner and on terms
that are in the best interest of the City, provided that the procedure and the terms
are in accordance with State statute and in compliance with existing City policies.
City of Billings Purchasing Procedures July 2017
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Surplus, worn-out or obsolete material and equipment may be disposed of in any
of the following ways:
■ By selling or donating to other City departments through surplus property.
■ By cannibalizing.
■ By trading in on new equipment.
■ By advertising for sale and selling at auction, or by advertising and
obtaining sealed bids and selling to the highest responsible bidder.
■ By selling as scrap or recycling.
■ Junking or recycling.
■ By special Council approval.
The Purchasing Agent, with the assistance of department representatives, shall
approve the disposal process of all surplus property. Approved disposal forms,
with appropriate documentation attached, shall be retained by the Purchasing
Agent for the City's official files.
All proceeds from the sale of these items will be deposited with the department
that last had possession of the items and copies of documentation filed with the
disposal form with the Purchasing Agent.
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July 2017
E.1 APPROVALS OF INVOICES AND PURCHASE ORDERS
Purchase Orders and Invoices must be approved, as follows, in the following
order:
$0-$1000
4 Department Designee 4 Purchasing Agent
$1,000 to $10,000
4 Department Designee -> Purchasing Agent 4 Finance Director
$10,000 and above
4 Department Designee -) Purchasing Agent 4 Finance Director ->City
Administrator
F.1 Generally, whether it is for goods or services, suppliers will be engaged
through a written document. This can either be a purchase order or
contract. Contracts are required for all goods over $10,000 and
services over $5,000.
F.2 Purchase Orders or Invoices - Purchase Orders and Invoices are created
by each respective City department and approved through the Delegation
of Signing Authority levels.
City of Billings Purchasing Procedures
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July 2017
F.3 CONTRACTS
Contracts include all documents including, for example, bid specifications
which create obligations on the part of the City of Billings and the
contracting party, insurance certificates, drawings, etc.
F.3.1 COUNCIL APPROVED CONTRACTS
Department representative must send a draft contract to the Legal
Department to review before having the contractor sign. The
contractor then signs the legally reviewed and approved two (2)
copies of the contract, and sends the contracts back to the
department representative. The department representative then
sends the contracts to the Legal Department for final review and
sign off. The Legal Department will send the contract to the City
Clerk for the Mayor to sign which is the final signature. The City
Clerk attests the Mayor's signature. The original copy of the
contract is retained by the City Clerk and the remaining signed
original contract is forwarded to the department representative to
send to the contractor. Use the Contract Routing Form for every
contract.
Signature Flow: Contractor (Supplier) 4 Legal 4 City Clerk/Mayor
F.3.2 NON -COUNCIL APPROVED CONTRACTS
Department representative must send a draft contract to the legal
department to review before having the contractor sign. The
contractor then signs the legally reviewed and approved two (2)
copies of the contract, signs and sends the contracts back to the
department representative. The department representative then
sends the contracts to the legal department for final review and
approval. The legal department will send the contract to the city
clerk for the city administrator to sign which is the final signature.
The original copy of the contract is then retained by the city clerk
and the remaining original signed contract is forwarded to the
department representative to send to the contractor. Use the
contract routing form for every contract.
Signature Flow: Contractor (Supplier) 4 Legal -City Clerk/City
Administrator
City of Billings Purchasing Procedures
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July 2017
Within ten (10) working days after the acceptance of a bid, the bidder and the city
shall make, execute and deliver to each other in duplicate a contract in
accordance with the bid; provided, that the parties to the contract may extend the
period for execution.
The city administrator is authorized to execute amendments or change orders to
all contracts executed by the mayor if the changes do not exceed his/her signing
authority, as designated by resolution.
Furthermore, the city administrator is authorized to execute amendments or
change orders to all contracts executed by the mayor if the changes are:
1) Within the scope of the project or purchase, provided that increases
in the scope of street improvement projects to add improvements
requested and paid for by adjacent property owners are
permissible;
2) Executed in writing; and,
3) The increase in contract amount does not exceed:
a. Ten (10) percent of the contract price; or,
b. Five hundred thousand dollars ($500,000.00); or,
c. The original budgeted contingency, whichever is less.
The total amount of all change orders or amendments on any given project will
be cumulatively combined. When any single amendment or change order
exceeds the limit under subsection (b), the proposed change must be presented
to the city council for approval. However, where the size of the contract makes it
probable that administrative change order authority will be quickly exhausted, the
city council may, upon recommendation of the city administrator, extend the
aggregate limits of subsection (b) in an amount set by council resolution for a
specific project.
City of Billings Purchasing Procedures July 2017
Page 22 of 24
BIG SkY
p (O
Amount
Petty
Purchasing
Purchase
Written
Sealed
RFP
Cash
Card
Order/Invoice
Quotes
Bids
$0-$99.99
X
*X
X
$100 - $2499.99
X
X
$2,500-
X
$4,999.99
$5,000-
X
$49,999.99
> $19,999.99
X
(architect, engineer
& land survey,
consultant,
professional
services)
> $49,999.99
X
(automobile,
trucks,
construction,
equipment,
materials)
BLANKET ORDERS — May be created for Fleet/Inventory purchases as well as
any other monthly repetitive purchases.
* Purchases for Fleet and Inventory may NOT be made on Purchasing Cards
City of Billings Purchasing Procedures
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July 2017
All forms, template documents, etc. are located on the Server
at 111t-w3k071all users\Purchasing
City of Billings Purchasing Procedures
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July 2017