HANNIBAL FREE PUBLIC LIBRARY

PROCUREMENT & DISPOSITION POLICY

Adopted by the Library Board of Trustees & Effective:  October 11, 2010

Amended:  December 10, 2012, February 11, 2013

 

The Library Board of Trustees is authorized through Missouri State Statutes to have exclusive control of the expenditure for the Library.  Because Hannibal Free Public Library is a political subdivision, the Library’s Procurement & Disposition Policy mirrors whenever practical the requirements set forth in the City of Hannibal’s Charter and Code of Ordinances.  The policy, below, governs Hannibal Free Public Library’s purchasing and disposition practices. 

 

This policy ensures that Hannibal Free Public Library seeks the best value when making purchase decisions.  “Best value” includes the optimal balance of quality, performance, timely delivery, service, and cost throughout the lifecycle of a given asset.  This policy also ensures that the Library’s procurement practices are performed in a consistent, objective, accountable, transparent, and fair process.  Additionally, this policy ensures that the process will be effective and efficient. 

 

This Policy does not cover personnel, utilities, or MIRMA expenditures.  It does not cover assessment expenses, county collection, or other expenses established by State Statute.  It currently does not cover the annual auditor’s fee because the Library is included in the City’s audit, and the cost is apportioned.  It covers procurement of all other goods and services by the Hannibal Free Public Library Board of Trustees, the Library Director, and employees of Hannibal Free Public Library on behalf of the Library.

 

SALES TAX EXEMPTION

 

The Library has a sales tax exemption from the State of Missouri, the City has a sales tax exemption from the State of Illinois, and the Library can obtain sales tax exemption or reimbursement from other states as needed.  This policy dictates that sales tax exemptions will be utilized to the extent allowed by law when purchases are made and/or services are obtained.  In most instances, exemptions will be used in conjunction with the purchases and the sales taxes never paid.  In other situations, reimbursements for sales taxes paid will be sought after the purchases are made.  

 

RESPONSIBILITIES

 

The Library Director is responsible for performing and/or supervising staff performance of the following activities associated with procurement of goods and services for the Library:

 

 

Hannibal Free Public Library employees will comply with this policy, processes and corresponding procedures to ensure that employees who are responsible for the requisitioning and purchasing of goods and/or services are accountable for and competent in their decisions and actions.

 

Regardless of their cost, the Library Board must approve agreements, contracts, leases, lease/purchase documents, and similar arrangements, which legally obligate the Library to expenditures beyond a single budget year.  The Library Board also must approve any acquisition of real estate.

The Library will favor local businesses when practical.

The Library will comply and will require that vendors and contractors comply with all City licensing and bonding requirements, as well as requirements of the Library’s and City’s insurance provider and the State of Missouri for building repair and construction projects.

There may be limited situations where the Library requires particular goods or services for which there is no substantial equivalent and which are available from only one source. Non-competitive purchases may also be used to procure goods or services when it is determined that competitive bidding is not feasible or not advantageous to the Library.  In making this determination, the Library Director must document the reason for the decision.

 


COMPETITIVE BID THRESHOLDS

 

Library Director is authorized to make purchases up to the competitive bid threshold amounts and/or from State or City bid lists without first obtaining Library Board approval provided the purchase is consistent with the budget.  Purchases above the bid limit amounts require Board approval, which may be delegated to one of the Library Board’s committees or officers, or to the Library Director.  The bid limit amounts typically increase by the Cost of Living and are revised by the Library Board periodically.

 

Emergencies arising from an accident or other unforeseen occurrence or condition are exceptions to this policy.  The circumstance affects the Library building, Library property, or the life, health, safety or property of the Library’s staff or patrons, and the situation requires immediate action.  The Library Director is authorized to act in the instance of an emergency and to seek approval from the Library Board after the fact.  The Library Director may choose to consult with the Board President or another officer, and/or an emergency meeting of the Library Board or one or more of its committees may be called, as outlined in the By-Laws.

 

Purchases from vendors included in State, City, or similar Bid Lists do not require re-bidding.  The State of Missouri solicits bids for goods and services.  The Missouri State Library, MOREnet, AMIGOS, and other library cooperatives use similar procedures. The Missouri State Agency for Surplus Property makes surplus state property available.  The City also solicits bids for goods and services.  The Library Director may utilize bids lists from these and similar agencies without re-bidding or prior approval of the Library Board provided the purchase is consistent with the budget.

 

Goods and Services to $500 do not require quotations, but quotations may be obtained at the Library Director’s discretion. 

 

Goods and Services from $500 to the Bid Threshold amounts, below, typically require quotations from three or more reliable firms or individuals.  At the Library Director’s discretion, these quotes may be provided by the vendor in writing or verbally, or they may be obtained through research in sales catalogs, on the Internet, etc.  The quotes and the purchase decision must be documented.  When three quotes cannot be obtained, the attempt to obtain them must be documented.

 

Personal & Real Property, including library, office, and building supplies, computer hardware and software, furniture and equipment, construction and building materials, real estate, etc.  The purchase of used equipment from private vendor requires an accurate estimate of the market value of the item to be purchased and the actual amount to be paid by the Library.  Competitive Bid Threshold:  $5,000 

 

Library Materials, while personal property, are considered separately under this policy.  Library materials include but are not limited to books, magazines, audio-visual materials, databases, consortia participation to share collection resources, and participation in commercial lease plans for collection resources.  Their selection, and purchase or lease is at the Library Director’s sole discretion as long as it is consistent with the budget.  This policy directs that Library Materials be generally purchased from vendors offering volume discounts or vendors offering a State contract, but it also acknowledges that certain materials are available only from the publisher or a sole jobber at little or no discount.  This policy dictates that the Library Director is responsible for seeking and/or supervising staff in seeking the best discount available from book jobbers and other vendors.  Further, it requires the Library Director to report to the Board on larger purchase decisions.

 

Repairs on equipment, the building, and/or the property.  Competitive Bid Threshold: $15,000 

 

Construction, including actual construction, heavy equipment installation, etc.  Competitive Bid Threshold:  $30,000 

 

Service Contracts, including telecommunications, information technology, financial, strategic management, building cleaning, HVAC maintenance, landscaping, snow plowing/removal, security, true leases, etc.  The Library Board reviews Service Contracts annually at budget time and decides which contracts need to be re-let in the upcoming year.  Competitive Bid Threshold:  $10,000  annually 

 

Professional Services require specialized or technical skills, expertise or knowledge, the exercise of professional judgment, or a high degree or creativity.  When seeking the services of engineers, architects, land surveyors, attorneys, insurance agents, and similar professionals, competitive bidding procedures are not used. 

 

COMPETITIVE BIDDING PROCEDURES

 

The Library Board reserves the right to waive its competitive bidding procedures in situations where it deems a different procurement procedure to be in the Library’s best interest.  Approval of the waiver must be made in open session at a regularly scheduled Library Board meeting unless there is an emergency, as defined above.

 

When it is estimated that a purchase or project will reach the competitive bidding thresholds described above, one advertisement in the local newspaper inviting competitive bidding.  Invitations to selected vendors may also be issued. The advertisement and invitations will include a deadline for submitting the bid.  The deadline for submitting the bid will be a minimum of 10 days after the second advertisement is run.

 

Bids may be submitted through the mail, by fax, email, or they may be hand-delivered, as specified by the Director in the bid documents.  Bids received in sealed envelopes will not be opened until the bid opening.  Those not in a sealed envelope will be kept as confidentially as possible until the bid opening.  Bids received after the bid deadline will not be considered. 

 

The Library Board will determine the date of the bid opening.  It may be at a regularly scheduled or called meeting of the full Board or one of its committees, or the Board may decide to delegate the responsibility to the Director and a designated Board member as a witness, or to the Director and a Library staff member as a witness.  The bid opening is an open meeting and so noticed.

 

Before the contract is awarded, the Library Board must select a vendor or service provider.  Selection may be done at a regular or called meeting, or it may be delegated to one of the Library Board’s Committees or to the Library Director.  The Library Board must also designate one of its members or the Library Director to sign the contract. 

 

Service contracts that run from year to year and are above the bid threshold will be re-let periodically, typically every three to five years, unless the Board determines that a longer contract is in order.

 

The Library Board’s Code of Ethics Policy applies to all procurement activities of the Library.

 

SELECTION OF VENDORS AND SERVICE PROVIDERS

 

The Hannibal Free Public Library Board of Trustees reserves the right to accept or reject any or all bids or combinations thereof, and to waive any minor irregularities, including without limitation, nonconforming, non-responsive, unbalanced or conditional Bids.  The Library Board further reserves the right to reject the Bid of any Bidder whom it finds, after reasonable inquiry and evaluation, to be non-responsible. The Library Board may also reject the Bid of any Bidder if the Library Board believes that it would not be in the best interest of the Library to make an award to that Bidder. The Library Board also reserves the right to waive all informalities not involving price, time, or changes in the Work.

Comparison of bids is a subjective process requiring evaluation of multiple factors including price, references, recommendations, and input from third parties. This process requires subjective assessment of bidders by the Trustees as to overall suitability of a bidder for a project, product, or service, including assessment of:

 


BUDGET

No procurement of goods or services shall be made when there is no appropriation for them.  The Library Director is authorized to transfer funds within materials accounts.  The Board typically authorizes the Library Director to transfer funds at the end of the year provided the bottom line is not overspent.   In all other situations, prior approval by the Library Board must be obtained before procurement is begun. 

Since "procurement is a function where the private and public sectors meet to conduct business," it is critical that all employees, trustees and officers "maintain high ethical standards of conduct and avoid situations where there is even the appearance of impropriety."  Hannibal Free Public Library requires notification of potential conflicts of interest of its employees, trustees and officers in procurement. Prohibited interests are avoided. In the event that a conflict or potential conflict of interest is identified, the Board of Trustees will review the situation and take action as appropriate.

The unintentional failure to comply fully shall not be grounds to void action taken or give rise to a cause of action against the Library of any trustee/officer or employee thereof.

 

Conflict of Interest No member of the Library Board or employee involved in the procurement of goods and services shall have any pecuniary interest either direct or indirect in any contract, tender, proposal, or quotation for the supply of such goods or services to the Library.

 

Gifts and Benefits Hannibal Free Public Library employees or Board members shall not accept gifts, hospitality or other benefits either directly or indirectly from any potential or existing supplier of goods and services.

DISPOSITION

Hannibal Free Public Library can dispose of items as warranted by their condition, functionality, or overall usefulness. Options for disposal include:

 

 

The Library's intent is to best match the items' usefulness and value to their method of disposal in a responsible, fair, and open manner. The Library Director shall determine and report to the Board the disposition of surplus items. 

AUTHORITY

This policy updates and replaces previous Hannibal Free Public Library policies concerning procurement and disposition. 

 

The Missouri Revised Statutes (RSMO}182.200.4 (2009) provides that “They [Municipal Library Boards] shall have the exclusive control of the expenditure of all moneys collected to the credit of the library fund, and of the construction of any library building, and of the supervision, care and custody of the grounds, rooms or buildings constructed, leased, or set apart for that purpose....“

 

The City of Hannibal’s Code of Ordinances, Sec. 2-353, describes the duties of the Hannibal Free Public Library Board as, “The library board shall have full, complete and exclusive charge and control of the free public library, including the building, grounds, furniture, equipment, books and all other property of the library that it may now have or hereafter acquire. It shall act as trustees for all trust funds heretofore or hereafter bequeathed or given to the library, and shall have the exclusive power of disposing of the income from such trust funds, in accordance with the trusts. They shall expend for the purposes of the library the proceeds of the library tax annually levied and collected by the city, and of such appropriations as may be made in the annual budget by the city council for library purposes, and of any state aid money coming to the library, as well as money taken in by the library in the course of its operations. All such funds except trust funds and the proceeds thereof shall be kept in the city depository by the city treasurer, and shall be paid out by him upon warrants duly issued by the library board….”