City Council

MANISTEE CITY COUNCIL WORK SESSION AGENDA Tuesday, January 10, 2017 - 7:00 p.m. - Council Chambers, City Hall I. Call to Order. II. Work Session Items. a.) PUBLIC COMMENTS ON WORK SESSION RELATED ITEMS. b.) STRATEGIC PLAN UPDATE. – Tamara Buswinka, Alliance for Economic Success. c.) DISCUSSION ON PURCHASING POLICY. – Thad Taylor, City Manager. d.) DISCUSSION ON HISTORIC DISTRICT COMMISSION. – Thad Taylor, City Manager. e.) OTHER. III. Adjourn. TNT:cl ATTACHMENTS: 1. Strategic Plan Updates 2. Purchasing Policy CITY OF MANISTEE STRATEGIC PLAN 2017 THROUGH 2018-2019 Our Vision....................................................................................................................................................................4 Our Mission ................................................................................................................................................................4 Our Values...................................................................................................................................................................4 1. Economic Development and Jobs .................................................................................................................... 10 GOAL 1.1: MANISTEE COUNTY ECONOMIC DEVELOPMENT STRATEGY ............................................................. 10 GOAL 1.2 INDUSTRIAL PARK ................................................................................................................................ 10 GOAL 1.3 TRANSPORTATION OF GOODS............................................................................................................. 10 GOAL1.4 LINKING TRAINING AND JOBS ............................................................................................................ 11 GOAL1.5 DOWNTOWN REVITALIZATION .......................................................................................................... 11 GOAL 1.6 REDEVELOPMENT READY .................................................................................................................. 11 City Infrastructure and Facilities .............................................................................................................................. 12 GOAL 2.1 CITY OWNED ASSETS ......................................................................................................................... 12 GOAL 2.2 RAMSDELL THEATRE .......................................................................................................................... 12 GOAL 2.3 INFRASTRUCTURE DEVELOPMENT/PROPERTY ACQUISITION ........................................................ 12 GOAL 2.4 TECHNOLOGY ...................................................................................................................................... 12 GOAL 2.5 ENERGY EFFICIENCIES ........................................................................................................................ 12 GOAL 2.6 STREETS ............................................................................................................................................... 13 GOAL 2.7 SAFETY AT PUBLIC FACILITIES .............................................................................................................. 13 City Beaches, Parks and Recreation Areas ............................................................................................................... 14 GOAL 3.1 CLEANLINESS AND UNIVERSAL ACCESSIBILITY ................................................................................ 14 Goal 3.2 BOATING FACILITIES ........................................................................................................................... 14 Goal 3.3 PARK FACILITIES AND AMENITIES ...................................................................................................... 14 GOAL 3.4 CITY RECREATION PLAN ..................................................................................................................... 14 Financial Stability andContinuous Improvement .................................................................................................... 16 GOAL 4.1 FINANCIAL STABILITY ......................................................................................................................... 16 GOAL 4.2 SERVICE EFFICACY ................................................................................................................................ 16 Intergovernmental Relationships ............................................................................................................................ 17 GOAL 5.1 COLLABORATION ................................................................................................................................ 17 Housing, Homelessness and Senior Citizens ............................................................................................................ 18 GOAL 6.1 HOUSING ............................................................................................................................................. 18 GOAL 6.2 BLIGHT ................................................................................................................................................. 18 City of Manistee Strategic Plan 2017-2018 through 2018-2019 Draft as of 12/14/16 2 We hope that all community interests will review this updated Strategic Plan, offer your suggestions and ideas on how our community can be improved, and unify with us in fulfilling the vision of making Manistee the City that is a safe and positive community to live, work, and play. Sincerely, The City of Manistee City Council 2017 James Smith, Mayor ____________________________________ Roger Zielinski, Mayor Pro-Tem _______________________________ Lynda Beaton, Councilmember _____________________________ Chip Goodspeed, Councilmember ___________________________ Erin Pontiac, Councilmember ______________________________ Mark Wittlieff, Councilmember ______________________________ Dale Cooper, Councilmember _____________________________ City of Manistee Strategic Plan 2017-2018 through 2018-2019 Draft as of 12/14/16 3 OUR VISION Our vision reflects how we want the City to be recognized by its residents, businesses and visitors: "Manistee is a safe and positive community to live, work, and play.” OUR MISSION Our Strategic Mission defines what we must do to achieve our vision. "To continue to encourage a rich heritage of successes in industry and business while continuing to enhance our vibrant residential character.” OUR PURPOSE The purpose of City Council reflects how we will lead to attain the vision and strategic mission: "To protect the health, safety, and welfare of citizens in order that all may prosper, enjoy, and partake in a vibrant waterfront community that many will be proud to call home.” OUR VALUES A set of values guide decisions involving governance of the City:  Fairness  Transparency  Integrity, honesty and the highest ethical standards  Commitment to the community  Tolerance  Accessibility and Approachability  Respect  Listening  Responsiveness  Leadership  Trust  Responsibility  Universal Access for People of all Abilities City of Manistee Strategic Plan 2017-2018 through 2018-2019 Draft as of 12/14/16 4 WHO WE SERVE AND IMPACT City Council and City government serve and impact a diverse group of individuals, groups, governments and organizations, including:  City residents  County Residents  Youth  Senior Citizens  Individuals  Civic organizations  City government  All City Employees  Businesses and Industry  The Alliance for Economic Success  Manufacturer's Council  The Little River Band of Ottawa Indians  The Manistee Downtown Development Authority  Township, State and Federal Governments  Neighboring Communities  West Shore Medical Center  Tourists  Businesses  Seasonal Residents  Schools  West Shore Community  Nonprofit organizations  Manistee Blacker Airport  Individuals, businesses and groups considering the City of Manistee as a place to live, work, or simply enjoy City of Manistee Strategic Plan 2017-2018 through 2018-2019 Draft as of 12/14/16 5 ACCOMPLISHMENTS While a complete listing of the numerous strategic goals achieved and/or incorporated as ongoing functions of City Government may be found in the yearly “City of Manistee Highlights” booklet that is available, examples of work done to implement the Strategic Plan include the following:  SG#2 SAW Grant funds total $1,905,000 with a local match of $147,500 and will cover the preparation of a wastewater asset management plan and a storm water asset management plan. Accomplishments in 2016 include scanning all infrastructure drawings and plans (3,000+ documents); cleaned and televised sewer mains. Lots of data being gathered, will need to look at data storage and applicable programs.  SG#5 Continued to work cooperatively with MDNR / U.S. Forest Service to protect nesting sites of endangered Piping Plovers north of Fifth Avenue Beach.  SG#3, #5 Adopted 2016-2021 Park & Recreation Plan through a county-wide recreation planning process. The plan was endorsed by both the Parks Commission and the Planning Commission. A public hearing was held in January.  Approved the employment of Tyler Leppanen to the position of DDA Director.  Councilmember Lynda Beaton taking steps to reenergize the volunteer Blossom Boulevard Committee.  SG#1 Edgewater/River Parc Place II LLC – Special use permit for Planned Unit Development for 18 residential units with two tenant commercial spaces utilizing existing structure at 80 Washington Street.  SG#1 Rose Pomeroy Locke, 259 Fifth Street – Special use permit for mixed use for greenhouse/nursery/retail business/eating & drinking establishment, and community garden to reopen the former flower shop.  SG#1 Retirement Living Management of Manistee LLC/Green Acres, 1835 Twelfth Street – Amended existing Planned Unit Development for a Retirement Village from 80 units (four building/20 units each) to 77 units (two buildings/32 units each and cottages – seven buildings/13 units. Construction has begun on the 12 unit expansion on the current building.  SG#4 Advanced Life Support / Transport continues to be a well-received program and has generated revenues exceeding one million dollars, minus the expenditures that were incurred by the Fire Department to provide this level of service.  SG#2 Continued Roadsoft and Paser updates in 2016. Worked on prioritized list following the Asset Management Plan guidelines.  Still water 13 units Old Hotel Chippewa Site.  Road: Mill and Fill $140,000.00  Redevelopment Ready Community Certification  Brewery City of Manistee Strategic Plan 2017-2018 through 2018-2019 Draft as of 12/14/16 6 ISSUES AND OPPORTUNITIES In updating their Strategic Plan, Council devoted time to identifying issues and opportunities that should be addressed in the Strategic Plan, including: ISSUES  Lack of a sustainable budget.  Maintaining and improving the sewer system  Not only the repair and constant maintenance of streets but also the gap differential between State and local funding to “keep pace” with repair and funding of improvements.  The City owned assets of the Ramsdell Theater and City Marina to become more operationally self- funded.  Lack of a maintenance plan for assets such as the Ramsdell Theatre and the City Marina.  Evaluation of assets, like the Ramsdell Theatre and the City Marina, to determine if they truly provide value to the citizens of the City of Manistee  How to attract people to the City of Manistee to utilize assets  Understanding the trends in marina use so that decisions may be made to ensure an increasing utilization of the facility  Continued use and maintenance of property that the City does not own  Maxed out millage rate leaving the community no room for additional funding for necessary needs  Lack of succession planning for key departments personnel leaving the City administrative functions vulnerable to the loss of well trained employees.  Need to assess health care costs and retirement plans to determine if they are viable, sustainable, and meeting the needs of the employees.  Deer management process needs evaluation  Filing the industrial park  Understanding the issues and problems facing Century Terrace specifically as it relates to the affect the issues and problems have on the senior citizens who live there  Possibly need a new fire truck  Lack of an understanding of the housing needs of the community.  Lack of an understanding of why residents, businesses and industry leave the community. OPPORTUNITIES:  Taking advantage of the Redevelopment Ready Communities designation  Benzie County and Manistee County collaboration  Implementation of the Manistee County manufacturing strategy  Follow up/Implementation of the Ramsdell Study  Re-marketing of the industrial park properties  Utilizing the Riverwalk as an economic development catalyst  Evaluate the way public safety services are delivered  To restructure the layout of the budget in a manner that is easier to understand City of Manistee Strategic Plan 2017-2018 through 2018-2019 Draft as of 12/14/16 7  Taking the time to learn about leading practices of other communities  Possibly sharing services and strategically partnering in order to get things done City of Manistee Strategic Plan 2017-2018 through 2018-2019 Draft as of 12/14/16 8 THREE YEAR STRATEGIC GOALS City Council has six areas of focus for their strategic goals: 1. Economic Development and Jobs 2. City Infrastructure 3. Beaches, Parks and Recreational Areas 4. Financial Stability and Continuous Improvement 5. Intergovernmental Relationships 6. Housing, Homelessness & Senior Citizens Council uses the following criteria to identify where strategic goals should be modified: • Are the strategic goals accomplished or still relevant and reflective of strategic priorities? • Are the strategic goals reflective of true strategic goals or more tactical, day-to- day functions? • Do the strategic goals reflect evolving needs and priorities of the community? Following are Council's Strategic goals for this Strategic Plan update. City of Manistee Strategic Plan 2017-2018 through 2018-2019 Draft as of 12/14/16 9 1. ECONOMIC DEVELOPMENT AND JOBS GOAL 1.1: MANISTEE COUNTY ECONOMIC DEVELOPMENT STRATEGY To provide leadership for completing a comprehensive Manistee County Economic Development Strategy, coordinated by the Alliance for Economic Success (AES), that identifies and recognizes the roles and relationships of all entities involved with retaining, expanding and attracting businesses and jobs, including marketing, promotion, and maintaining updated resources for businesses and developers. STRATEGIES 1.1.1 COUNTY STRATEGIC PLAN: Work with the Manistee County Board of Commissioners to integrate the goal of developing a comprehensive Manistee County Economic Development Strategy into their strategic plan. GOAL 1.2 INDUSTRIAL PARK To achieve 100 percent occupancy in the industrial park and other industrial properties. STRATEGIES 1.2.1 SET: Support the Stronger Economies Together (SET) process, utilizing the recommendations that are derived from this data driven planning process. 1.2.2 MANUFACTURING STRATEGY: Support the Manufacturing Strategy with time, effort and financial support in implementing the recommendations that are developed. 1.2.3 ENTER/EXIT SURVEY FOR PERMIT APPLICANTS: Develop an enter/exit survey for all applicants applying for permits from the City to determine areas of excellence and weaknesses to the development review/approval process. 1.2.4 “PACKAGING” THE INDUSTRIAL PARK: Work to properly “package” the industrial park in order to attract a targeted audience. 1.2.5 SURVEY EXISTING INDUSTRIAL PARK OCCUPANTS: In an effort to retain and help grow existing industrial park businesses, facilitate a discussion with the existing tenants to ask what the City could do, within their limits, to help them be successful. 1.2.6 NEW INDUSTRIAL PARK OCCUPANTS: Add a minimum of one industrial park occupant a year. GOAL 1.3 TRANSPORTATION OF GOODS To collaborate with the AES and others to ensure that the Manistee harbor, port, channel, rail, and related infrastructure are maintained and developed to enable full and safe commercial navigation and land transportation of goods in order to support the retention, expansion and attraction of industry, business and jobs to the city, county and region. City of Manistee Strategic Plan 2017-2018 through 2018-2019 Draft as of 12/14/16 10  STRATEGIES 1.3.1. PORT STRATEGY: Work cooperatively with the AES, and other municipalities around Manistee Lake, to develop a Port Strategy which would map out deep water port assets, including industrial zoned property and assess options for managing these assets and ensuring their accessibility, including researching the creation of the Port Authority. 1.3.2 RAIL RELOCATION: Support the idea of relocating the rail system. 1.3.3 RAIL INFRASTRUCTURE NEEDS: Assess the infrastructure need and demands of rail infrastructure in order to understand how to maintain a functioning rail system. GOAL1.4 LINKING TRAINING AND JOBS To engage the AES and the Chamber of Commerce to continue to work with local businesses and industry to identify training and education needs and then to work with the K-12 schools and other educational institutions to address those needs. GOAL1.5 DOWNTOWN REVITALIZATION To focus on the revitalization of downtown, with a strong desire to have good communication, transparency, and delivery of tools where appropriate to support the Downtown Development Authority, the Chamber, and the Alliance for Economic Success, to achieve an energized, thriving downtown and community. STRATEGIES 1.5.1 SUPPORT OF PLANS/IDEAS: Support plans and new ideas to deliver small businesses and housing services in order to bring people to Manistee's downtown. 1.5.2 SUPPORT OF COLLABORATION: Support the coordination of all parties involved in economic development to achieve successes; especially the regulatory entities (Historic District Board, Planning Commission). 1.5.3 SUPPORT THE TIF RENEWAL: Support the Tax Increment Financing, or TIF, renewal by working with the DDA to achieve an integrated approach to collectively achieve revitalization. GOAL 1.6 REDEVELOPMENT READY Support the implementation and participation in the Michigan Economic Development Corporation (MEDC) Redevelopment Ready Communities program. STRATEGIES 1.6.1 IMPLEMENTATION: Implement the Redevelopment Ready Communities opportunities. City of Manistee Strategic Plan 2017-2018 through 2018-2019 Draft as of 12/14/16 11 CITY INFRASTRUCTURE AND FACILITIES GOAL 2.1 CITY OWNED ASSETS To evaluate, develop, and oversee an asset management plan for restoration, preservation and maintenance of City owned assets. STRATEGIES 2.1.1 BUILDING ASSET MANAGEMENT PLAN: Complete a Building Asset Management Plan schedule. GOAL 2.2 RAMSDELL THEATRE Ensure the long term operation and sustainability of the Ramsdell Theatre. STRATEGIES 2.2.1 MANAGEMENT EVALUATION Evaluate the management of the Ramsdell Theatre through the Ramsdell Theatre Board’s quarterly reports and presentations to Council indicate that they are financially self-sufficient. GOAL 2.3 INFRASTRUCTURE DEVELOPMENT/PROPERTY ACQUISITION To explore and develop public/private partnerships to provide and develop infrastructure and acquire property at target areas within the City limits to facilitate and promote redevelopment and economic activity. GOAL 2.4 TECHNOLOGY To continue to identify, invest and use appropriate technology city-wide to improve the efficiency, effectiveness and competitiveness of City operations and services. STRATEGIES 2.4.1 ELECTRONIC PAYMENTS: Investigate the incorporation of electronic payments for services where appropriate. 2.4.2 BROADBAND: Continue to support County wide efforts to bring the last mile of broadband to Manistee County while also working to improve high speed internet within the City in order to meet future demand and needs. GOAL 2.5 ENERGY EFFICIENCIES To encourage and support the use of energy efficient technologies and construction methods in order to promote conservation and sustainability by example and consider "green" in any decision process. City of Manistee Strategic Plan 2017-2018 through 2018-2019 Draft as of 12/14/16 12  STRATEGIES 2.5.1 OPPORTUNITY EVALUATION: Continue to evaluate and implement energy efficiencies in order to achieve cost savings at City facilities. 2.5.2 ENERGY EFFICIENTY PLAN EVALUTION: Re-evaluate the City Energy Efficiency Plan to understand what has been accomplished, how effective it has been, and opportunities to do better. GOAL 2.6 STREETS To have quality streets that are well maintained by a sustainable funding source. STRATEGIES 2.6.1 FUNDING: Develop a long term funding mechanism for the maintenance of streets that not only keeps pace with street upgrades but also identifies incremental steps towards achieving long term goals. 2.6.2 EVALUATION: Update the Pavement Surface Evaluation and Rating (PASER) study. 2.6.3 MAINTENANCE/REPAIR/UPGRADE: Develop a street maintenance, repair, and upgrade schedule that not only keeps pace with street upgrades but also identifies incremental steps towards achieving long term goals. GOAL 2.7 SAFETY AT PUBLIC FACILITIES Ensure that our public buildings are secure and safe. STRATEGIES 2.7.1 PROTOCALS: Evaluate the current safety protocols. 2.7.2 POLICIES/PROCEDURES: Assess City safety policies and procedures. 2.7.3 LEADING PRACTICES: Assess techniques and leading practice in safety measures for public facilities. City of Manistee Strategic Plan 2017-2018 through 2018-2019 Draft as of 12/14/16 13 CITY BEACHES, PARKS AND RECREATION AREAS GOAL 3.1 CLEANLINESS AND UNIVERSAL ACCESSIBILITY To have the cleanest Lake Michigan public beaches and parks in Michigan with universal access to all people of all abilities. STRATEGIES 3.1.2 PARKS MAINTENANCE MANAGEMENT PLAN: Develop a Parks Maintenance Management Plan which prioritizes parks and boat launches based on usage and seasonality, including a cost analysis for maintenance options in-house versus out sourced. 3.1.3 ENFORCEMENT/SAFETY: Maintain signage and foot patrols to ensure compliance and enforcement with laws and ordinances governing City beaches and provide necessary safety devices on both Lake Michigan beaches which may include the use of cameras. GOAL 3.2 BOATING FACILITIES To have the best boating facilities on Lake Michigan's shoreline. STRATEGIES 3.2.1 BOAT LAUNCHES: Develop a maintenance plan for ensuring that the boat launches are maintained. 3.2.2 EXPLORE THE SHORES: Work cooperatively with the Explore the Shores county-wide initiative. 3.2.3 PAY TO BOAT: Evaluate our our fee based boating programs in order to understand how to make them more effective. GOAL 3.3 PARK FACILITIES AND AMENITIES To have the best facilities and amenities at our parks. STRATEGIES 3.3.1 BUDGETED PRIORITIZATION: Develop and implement a Parks Asset Management Plan, as well as utilizing the City Capital Improvement Plan, to prioritize needs and recommendations for the annual budget for upgrades for parks. 3.3.2 TENNIS COURTS: Explore opportunities to upgrade the tennis courts at Sands Park. 3.3.3 BEACH PARKING LOTS: As part of the Capital Improvement Planning process, evaluate the beach parks parking lots to understand the needs for improvements. 3.3.4 FOOD SERVICE: Ensure that the City has a reliable vendor for food service for both 1st Street and 5th Avenue beaches. GOAL 3.4 CITY RECREATION PLAN Support the implementation of the City Recreation Plan. City of Manistee Strategic Plan 2017-2018 through 2018-2019 Draft as of 12/14/16 14 3.4.1.CITY PARKS COMMISSON: Continue to support the City Parks Commission in their efforts to implement the City Recreation Plan based on using public and private partnerships to establish amenities and attractions that enhance recreational opportunities on beaches, parks, recreation areas. 3.4.2 REVIEW AND UPDATE: Support the City Parks Commissions role, including their partnership with the County Planning Department, in their efforts to continuously review and update the Recreation Plan in order to meet the needs of the Community. City of Manistee Strategic Plan 2017-2018 through 2018-2019 Draft as of 12/14/16 15 FINANCIAL STABILITY AND CONTINUOUS IMPROVEMENT GOAL 4.1 FINANCIAL STABILITY Continue to seek ways to achieve long term financial stability. STRATEGIES 4.1.1 FORECASTING: Request that each City department forecast financial needs to develop a conceptual 3 year outgoing budget to aide in the forecasting our future financial outlook. 4.1.2 OIL AND GAS REVENUE: Keep a watchful eye, in partnership with the Oil and Gas Board, on the ever-changing fiscal climate of the oil and gas leases. 4.1.3 BUDGET STRUCTURE: Explore and evaluate the way in which the budget is structured and formatted to ensure that it is easily understandable and effective in communicating the City’s financial story. GOAL 4.2 SERVICE EFFICACY To have an ongoing process to assess and ensure the efficiency and effectiveness of City services, programs and operations, including review of best practices from other communities and the assessment and expansion, if needed, of the City's "City, Village and Township Revenue Sharing (CVPRS) "dashboard" as a tool for measuring meaningful progress. 4.2.1 BENEFITS: Evaluate all City related benefits to understand if they are sustainable and competitive. City of Manistee Strategic Plan 2017-2018 through 2018-2019 Draft as of 12/14/16 16 INTERGOVERNMENTAL RELATIONSHIPS GOAL 5.1 COLLABORATION To collaborate with other units of government in order to seek commonalities and ways to solve problems by working together. STRATEGIES 5.1.1 INTERGOVERNMENTAL RELATIONSHIPS: Explore and carry out collaborative meetings with our neighboring counties and cities in order to build relationships. 5.1.2 SERVICE SHARING: Continue to explore intergovernmental service sharing opportunities. 5.1.3 COUNTY WIDE DISCUSSIONS: Ask AES to facilitate a county wide discussion about common community goals and to seek ways to achieve successes. 5.1.4 REACHING OUT: City Council members will engage in a grass roots effort to reach out to form relationships with members of other communities. City of Manistee Strategic Plan 2017-2018 through 2018-2019 Draft as of 12/14/16 17 HOUSING, HOMELESSNESS AND SENIOR CITIZENS GOAL 6.1 HOUSING To have a wide variety of housing choices for all members of our community located in quality and safe neighborhoods, apartments, and condominium complexes. STRATEGIES 6.1.1 MANISTEE HOUSING COMMISSION: To work cooperatively with the Manistee Housing Commission supporting their efforts to address low to moderate housing needs, homelessness as well as other projects to assist them in providing needed services for City and area residents. 6.1.2 HOUSING STRATEGY: Support the development of a data driven housing strategy for both Manistee County and the City of Manistee. 6.1.3 HOMELESSNESS: Continue to support County wide efforts to address homelessness. 6.1.4 CENTURY TERRACE: Actively work with the Century Terrace community, which includes residents and management, to understand the issues facing the community and determine what actions may be taken to address them. GOAL 6.2 BLIGHT Eliminate blight so that our community is the type of place people want to live, work, or play. STRATEGIES 6.2.1 ORDINANCE ENFORCEMENT: Work cooperatively with the City police, Blight Officer, City Attorney and other code enforcement departments to proactively identify and address blighted properties with the intent on bringing each property into compliance with ordinance and neighborhood standards. City of Manistee Strategic Plan 2017-2018 through 2018-2019 Draft as of 12/14/16 18  For More Information about the City of Manistee, go to www.manisteemi.gov The update of the Strategic Plan was facilitated with the assistance of the Alliance for Economic Success, a 501 (c) (3) organization that has the primary role for economic development of Manistee County. City of Manistee Strategic Plan 2017-2018 through 2018-2019 Draft as of 12/14/16 19  PURCHASING POLICY Adopted: Mar. 16, 1994 Amended: Aug. 15, 1995; Oct. 21, 1997; July 17, 2007; Aug. 19, 2008; Feb. 21, 2012, Jan. 15, 2013 PURPOSE: It is the general intent and purpose of this policy to assure that purchasing of goods and services for the City results in the most economical and\or advantageous procurement in accordance with sound purchasing principles. All purchases, regardless of size, shall be covered by this principle. It is also the intent of this policy that the City will attempt to purchase goods and services from businesses located within the City limits when the price, quality, service and other relevant factors relating to the goods and services are comparable with out- of-town businesses. I. Budgetary Control All purchases must be in accord with approved budgetary allocations and policies. II. Interpretation of Policy Provisions It is recognized that on occasion, there may be a question as to the application of this policy to a particular purchasing situation or circumstance. In these cases, the affected Department Director shall consult with the City Manager or designee to determine the appropriate course of action. III. Internal Purchasing Procedures The City Manager and Finance Director shall establish the necessary practices and procedures to ensure that the general intent and specific provisions of this policy are adhered to. IV. Purchasing Practices and Methodologies This policy recognizes the need to use a variety of purchasing techniques in order to obtain the product or service that is in the best interest of the City. Depending on the situation, one or more of the following techniques may be used: a. A General Purpose Purchase (GPP) is a purchase arising in the normal course of day to day City operations. These purchases should be evaluated based on the price, quality, service, and other relevant factors. If the relevant purchasing threshold is met, quotes may be required, as specified in Section V(b). ================================================================================ City of Manistee 1 City Council Policy CP-13 b. A Request for Qualifications (RFQ) is a technique where service providers are solicited to provide detailed information about them. The purpose of the RFQ is to evaluate various service providers and determine which one(s) can best meet the City’s needs. Following a RFQ process, the City would typically either negotiate a contract or solicit a Request for Proposal. If after evaluating the RFQ, more than one Vendor is determined to have substantially equivalent qualifications, then an RFP shall be issued to choose between the identified Vendors. c. A Request for Proposal (RFP) is a technique where the City is interested in procuring a good or service, but has not developed detailed specifications for the item. This would be typically used in a situation where the City is procuring a professional service, has limited expertise in an area, is considering new technology or has already narrowed the list of prospective vendors. d. A Request for Bids (RFB) is a technique whereby the City develops detailed specifications for a particular good or service and solicits sealed bids from vendors. Department Directors shall prepare plans and specifications which identify the goods or services desired in sufficient detail to permit the receipt of competitive bids. Notice of the availability of the bid documents shall be published in the official publication (as established in the City Council Guidelines) as a box ad in the classified section at least three times. In addition, copies of the bidding documents shall be mailed or sent electronically to a reasonable number of known vendors who provide this good or service. Sealed bids will be accepted until the date and time specified in the bid documents. Bids will then be publicly opened and read in the presence of at least two City officials; one of whom shall be either the City Manager or the City Clerk, or designee. A record of all bids received shall be kept by the City Clerk with the paid invoice. e. A State Bid item (SB) is any good or service that has been specified and competitively bid by the State of Michigan through MI Deal or other similar programs. A GPP or GPP with quotes is considered a “standard purchasing practice.” An RFQ, RFP, RFB or SB is considered an “extended purchasing practice.” All RFQ’s, RFP’s and RFB’s shall be reviewed by the City Manager or designee and provided to the City Clerk prior to circulation. All bid openings shall be scheduled with the Clerk’s office in conjunction with preparing the bid documents. When purchasing goods or services, the employee shall ensure the vendor is aware of the City’s tax exempt status. V. Purchasing Thresholds a. Purchasing Goods or Services. $2,000 or Less. Department Directors and their designees are authorized to purchase goods and services with a value of $2,000 ================================================================================ City of Manistee 2 City Council Policy CP-13 or less exercising sound judgment in the best interest of the City. Such purchases will generally be made in the local market area. b. Purchasing Goods or Services $2,001 to $7,500. Department Directors are authorized to purchase goods or services with a value between $2,001 and $7,500 based on quotes received from known vendors. At least three quotes must be solicited unless fewer known vendors supply the required goods or services. The quote deemed most advantageous to the City, considering price, quality, service, and other relevant factors will be accepted. While written quotes are generally required, it is recognized that verbal or telephone quotes are sometimes necessary. In that event, the verbal or telephone quotes shall be recorded in writing. All quotes received, whether written or recorded verbal, will be submitted to the Clerk’s office and filed with the paid invoice. c. Purchasing Goods or Services More Than $7,500. Any acquisition anticipated by the City with an estimated value of $7,500 or more shall be subject to an extended purchasing practice, unless otherwise addressed in this policy. The City Manager shall determine the preferred extended purchasing practice in consultation with the affected Department Director. d. Goods and services being procured shall not be broken down into separate purchases to circumvent the intent of V(a) through V(c) above. VI. Awarding of Bids and Contracts The City Manager shall award all purchases, bids and contracts with a value of $7,501 to $25,000. City Council shall award all purchases, bids and contracts which exceed $25,000; and all Vendor of Record Agreements regardless of value. The City reserves the right to accept any or all quotes or bids and/or waive any irregularity or defect if deemed to be in the best interest of the City. VII. Emergency Purchases In case of an emergency which requires the immediate purchase of supplies or contractual services, the City Manager or designee shall be empowered to purchase on the open market, under the most advantageous arrangement, any necessary contractual services or supplies. Emergencies are generally, but not exclusively, limited to those situations that threaten the health, welfare, safety and well-being of the community. A full report of the circumstances of an emergency purchase shall be provided to the City Manager and the Finance Director or designee to be filed with the paid invoice. Purchases over $25,000 shall be reported back to City Council. VIII. Vendors of Record It is recognized that it can be advantageous to the City to enter into long-term, negotiated agreements with vendors to supply goods and services. The City Manager shall recommend to Council which goods or services should be procured in this fashion. A Vendor of Record (VOR) shall be chosen through an extended purchasing practice, ================================================================================ City of Manistee 3 City Council Policy CP-13 such as RFQ or RFP. All VOR agreements shall be reviewed by the City Attorney prior to consideration by Council. The VOR agreement shall specifically identify what goods and services will be provided, the length of the contract and when the City may go outside of the VOR agreement for these goods and services. IX. Exceptions to Purchasing Thresholds The following items and situations are exempt from the specific guidelines established under the purchasing thresholds. However, all exempt purchases are expected to comply with the general intent of the policy:  Emergency purchases  Purchases of goods & services as specified under a Vendor of Record agreement  Utilities, including but not limited to, electricity, gas, phone, water, internet  Insurance renewals  Change orders, additions or extensions to existing contracts where the City Manager determines that such action is reasonably necessary to meet the intent of the contract to be performed, and the amount is within 10% of project or up to $50,000, whichever is less.  Vendor specific software or hardware maintenance agreements and additional modules on existing software  Systems, including but not limited to items such as phones, water meters, AV equipment, election equipment, which have been previously selected can be added to, upgraded or repaired  Goods or services only available through one known vendor may be exempt from this policy, upon consultation with the City Manager  Intergovernmental contracts  Gasoline & diesel fuel X. Federal Funds and Compliance with 40 CFR Part 31, “Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments The City on occasion receives Federal Grants, either directly or as a pass thru. 40CFR 31.36 addresses procurement standards and requires that the City follow these standards. Required standards not addressed elsewhere in the policy are incorporated below: a. An employee, officer or agent shall not engage in the award, selection and/or administration of a contract if the employee, any of the employee's family members or partners, or an organization which employs or is about to employ any of these persons, has a financial or other interest in the organization selected for the contract. ================================================================================ City of Manistee 4 City Council Policy CP-13 b. An employee, officer or agent shall not solicit or accept gratuities, favors, or anything of monetary value from a contractor. c. Violation of (a) or (b) above will result in disciplinary action as determined by the City Manager. d. In a situation where procurements have the option of lease rather than purchase, the following shall be considered and documented:  The annual cost of ownership and use.  The residual value after purchase is complete. e. Records shall be maintained to document significant decisions and the history of the procurement, including the rationale for the procurement method used, basis for the contract type used, reasons for contractor selection or rejection and basis for the established price or cost. f. Price and/or cost analysis shall be completed and documented in the procurement files in connection with every procurement action. g. All contracts shall contain specific provisions where they apply including:  Notice of awarding agency requirements and regulations regarding reporting;  Access by the grantee, sub-grantee, federal grantor agency, Comptroller General of the United States, or any authorized representatives to any books, documents, or records pertinent to that specific contract;  Retention of all the required records for three years after final payment and all pending matters are closed XI. Applicability of Purchasing Policy to Other City Entities This policy shall be applicable to the City of Manistee Brownfield Redevelopment Authority and Ramsdell Governing Authority. ================================================================================ City of Manistee 5 City Council Policy CP-13