SB 5525 - DIGEST

(SEE ALSO PROPOSED 1ST SUB)

     Provides that competitive bidding procedures may be waived by the governing body of the municipality for purchases in which the purchase price may be best established by direct negotiation, and:  (1) The purchases are clearly and legitimately limited to a single source of supply;

     (2) the purchases involve special facilities or market conditions; or

     3) the municipality is purchasing insurance or bonds.

     Authorizes the governing body of a municipality to designate by resolution a person or persons who shall declare that an emergency situation exists for the purpose of waiving competitive bidding requirements and awarding all necessary contracts for purchases of goods and services on behalf of the municipality to address the emergency situation.

     Provides that, for emergency purchases of goods and services of less than fifty thousand dollars, the governing body or its designee shall contact at least three vendors to the extent practicable under the circumstances and provide them with a scope of work.

     Provides that, beginning on July 1, 1999, and on July 1st of each succeeding odd-numbered year, the dollar limits specified in this section shall be adjusted as follows:  The office of financial management shall calculate such limits by adjusting the previous biennium's limits by the appropriate federal inflationary index reflecting the rate of inflation for the previous biennium.