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HomeMy WebLinkAboutItem 12 Ordinance Amending Chapter 21 Purchasing Code AGENDA ITEM COVER SHEET Meeting Date: 8/16/05 Item # it Contact Name: Contact Number: Wanda Horton 1520 Reviewed By: .r I /VI Department Director: .. ~~ City Manager: __ Subject: Ordinance Amending Chapter 21 Purchasing Policy Background Summary: Staff recognizes that enhancements and revisions to the existing purchasing ordinance are periodically necessary to streamline the procurement of commodities and contractual services for the City. The recommended changes address these issues and the increase in cost of items. Issue: Amend Chapter 21 (Purchasing Policy) of the Code of Ordinances. Recommendations Staff recommends adoption of this Ordinance to amend Chapter 21 Purchasing Policy and authorize execution thereof by the Mayor and City Clerk. Attachments: Ordinance Amending Chapter 21 Purchasing Code Financial Impact: None Type of Item: o Public Hearing ~ Ordinance First Reading o Ordinance First Reading o Resolution o Commission Approval o Discussion & Direction For Clerk's Dept Use: o Consent Agenda o Public Hearing o Regular Agenda [gl Original Document/Contract Attached for Execution by City Clerk o Original Document/Contract Held by Department for Execution Reviewed by City Attorney Reviewed by Finance Dept. Reviewed by ( ) D N/A D N/A D N/A Commissioners Dannv Howell. District 1 Scott Anderson. District 2 Rusty Johnson. District 3 Nancy J. Parker. District 4 Mayor S. Scott Vanderg-rift City Manag-er Robert Frank STAFF REPORT TO: The Honorable Mayor and City Commissioners FROM: Wanda Horton, Finance Director DATE: August 9,2005 RE: Ordinance Amending Chapter 21 Purchasing Policy ISSUE Amend Chapter 21 (Purchasing Policy) of the Code of Ordinances. BACKGROUNDIDISCUSSION Staff recognizes that enhancements and reVlSlons to the existing purchasing ordinance are periodically necessary to streamline the procurement of commodities and contractual services for the City. The recommended changes address these issues and the increase in cost of items. ~he major revisions contained in this ordinance are: 1) The approval levels for purchases have been increased for department directors and the City Manager. 2) The number of quotes for each level has been revised. 3) Amends definitions. 4) Amends exemptions. 5) Clarifies some procedures. Procedures have been reviewed and will be updated to reflect the changes in this ordinance once adopted. In the past five years, there have been at least thirty bids and piggyback approvals or rejections by the City Commission between $15,000 and $25,000. SECTION 2 ORDINANCE NO. 2005- AN ORDINANCE OF THE CITY OF OCOEE, FLORIDA, AMENDING AND RESTATING CHAPTER 21 OF THE CODE OF ORDINANCES OF THE CITY OF OCOEE REGARDING THE CITY'S PURCHASING POLICY; AMENDING AND RESTATING DEFINITIONS; ESTABLISHING A PURCHASING FUNCTION; RESTATING AUTHORITY; AMENDING THE MINIMUM STANDARDS; AMENDING AND REST A TING EXCEPTIONS TO MINIMUM STANDARDS; AMENDING AND RESTATING THE PROVISION OF EMERGENCY PURCHASES; AMENDING AND RESTATING PURCHASING PROCEDURES AND PRACTICES; AMENDING AND RESTATING EXEMPTIONS; PROVIDING FOR SEVERABILITY; PROVIDING FOR CODIFICATION; PROVIDING AN EFFECTIVE DATE. '.YIIEREAS, the City Cefflffli33iefl of the City ofOeoee desir<:s to Ilfflefld Chllpter 21 of I the Code ofOf{liflllflees Bfthe City BfOeBee (the City's Plirehllsiflg Poliey). NOW, THEREFORE, BE IT ENACTED BY THE CITY COMMISSION OF THE CITY OF OCOEE, FLORIDA AS FOLLOWS: SECTION ONE. Authority. The City Commission of the City of Ocoee has the authority to adopt this Ordinance pursuant to Article VlIl of the Constitution of the State of Florida and Chapter 166, Florida Statutes, and Section C-8E of the Charter of the City ofOcoee. SECTION TWO. Amended and Restated City Purehasine Poliev. Chapter 21 of the Code of Ordinances of the City of Ocoee, Florida, is hereby amended to read as follows (with deletions stricken and additions underlined): CHAPTER 21 PURCHASING POLICY SECTION 21.1 Definitions. A. "Commodity" means any of the various supplies, materials, goods, merchandise, equipment, and other personal property. B. "Competitive 8ellled Bids Formal Invitation to Bid (lTB)" or "Competitive Formal Request for Proposal (RFP)"8ellled Pf6pe31l1s" refers to the reeeipt efurocedure for soliciting two or more comoetitive sealed bids or proposals submitted by responsive, responsible, and qualified bidders or offerors. C. "Contractor" or "Vendor" means a flersOfI party who contracts to sell commodities or contractual services to the City. D. "Contractual Services" means only those services rendered by individuals and firms who are independent contractors, and such services may include, but are not limited to, evaluations; consultations; maintenance; accounting; security; management systems; management consultants; educational training programs; research and development studies or reports on the findings of consultants engaged thereunder; and professional, technical, and social services. E. "Emer2encv Purchase" means those purchases occurring when certain conditions might adversely affect the life, health, safety. and welfare of City employees or its citizens, or when City property or equipment arc endangered. or when it is necessary to maintain or restore vital services. to address nrn- compliance with Florida Statutes or other regulatory laws and permits. or situations which may cause a maior adverse financial impact to the City should immediate action not be taken. F. "Government Contracts" includes contracts bv other governmental agencies to include any political subdivision of the State of Florida or the United States. Special Districts, or special co-operative contracts provided such contracts are the result of a competitive bidding process. G. "Purchasing Manual" mcans the .....ritten poliey go...eming plirehasing as atleflted by resellJtien of the City Cemmissienfficans the written purchasing procedures and practices which may be promulgated from time to time by the City Manager to implement and adhere to this Chapter. H. _"Purcha~ing Procedures and Practiccs" means the proeedlifcs, flraetiecs, rulcs, regulatiens, er ether administrative prenelincements which may be premlilgated frem time te time by the City Manager te implement and adhere tothe Purchasing Mantial and this Chal3ter."Purchasin2 Card" is a Visa/Mastercard issued to designated employees to be used in compliance with this Chapter and the Purchasing Card Policies and Procedures. I. "Purchase Requisition" is a request for a PO to be issued and is required for all items that cannot be purchased using the City's Purchasing Card. J. "Purchase Order" (PO) is a signed. numbered document authorizing an employee to purchase goods or services. PO's are the result of the authorized Purchase RCQuisition. K. "Ouolation" or "Ouote" is an informal written or verbal price proposal for a commodity or contractual service as stated by the yendor to be used 10 determine the corrcct price for purchase. L. Request for Oualifications "RFO" refers to the procurement of professional services. when requesting statements of qualifications only. and does not consider price in the ranking of firms. SECTION 21.2 Establishing Purchasing Function There is hereby established a Purchasing Function within the Finance Department of the City. The Purchasing Agent shall be a budgeted position and shall serve as 006.184944006, +<l4944 ji,s 2 - the central procurement officer orcHy MlInager er Ris/her lIesignee mllY servc liS the PlIrcRlISing J\gentthe City.~ SECTION 21.3 Authority Subject to compliance with this Chapter, and the Purchasing Manual IInd the PlIfehllSing Procedllres IIlill Pmetiee3, the Purchasing Agent or designee is hereby granted authority to purchase or contract for all commodities and contractual services required by the City or other agencies under cooperative purchasing agreements. as IIpprevell by the City Commissien lIndcr cooperative pllfchllSing agreements. SECTION 21.4 Minimum Standards Unless otherwise provided by Florida Law or other provisions of the Code or waived as provided in this Chapter, all purchases by the City of commodities and contractual services shall be processed and approved in accordance with the following minimum standards: Level Value of Purchase Pricing Mechanism Authority to Approve Level One Individual Item ever $219.99 IInllless than $1,500.00 and/or Total Purchase ever $219.99I1nll I ess than $1.000.0~ G:OO ~ne Verbal Quotes Department Director or Designee 006.18494400&. .ffi4944J;05 3 Level Two Level Three Individual Item Two Verbal Ouotes and!or Total Purchase $1.000.00 and over and less than $2.500.00 Ifldiviallal Three Written Quotes ltemlndividual Item and! or Total Purchase twef- $ 1,499.99$2500 .00 and over and less than $ I 5,000.00 aml/ar Telal Ptlfeh&'3e aver $5,000.00 and I ess than $ I 5,000.00 Department Director or Designee Purchasing Agent (ReQuires City Cemmission approval for capital items if amount exceeds budgeted amount or has been changed from original budget)Gity- Maflager _ Designee Level Four Individual Item Formal Invitation to Gity- and/or Total Bid or Request for CommissiellCity Purchase twef- Proposal Manager $I4,999.99~ (Requires award 000.00 and over or reiection by and less than the City $25,000.00 Commission if the purchase exceeds the original budgeted dollar amount, or has been changed from original budget) Level Five Individual Item Fonnal Invitation to City 006. 184944llG&, .ffi4944J1,5 4 And/or Total Purchase $25.000.00 and over Bid Or Request for Proposal Commission SECTION 21.5 Exceptions to Minimum Standards When it is determined to be in the best interest of the City, the minImum standards contained in Section 2 1.4 above may be waived on a case-by-case basis. The authority to waive the minimum standards is as follows: A. The City Maf!agerPurchasing Agent may waive the minimum standards for any commodity or contractual service which is less than $15,000.00 in value. In such case, the City Maf!agerPurchasing Agent shall file-attach a written explanation for waiver witft-to the purchase order.PlIrchflSif!g L',gellt ar desigllee llllless the P\lrchflSillg Agellt is the City Mallager, if! whieh ease the writtef! explallatioll shall be filed with the Fillallee Direetar 6f Buyer. &.-8. The City Manager may waive the minimum 5tandards for any commodity or contractual service which is over $15.000.00 and less than $25.000.00 in value. In such case. the City Manager or designee shall file a written explanation for waiver with the Purchasing Agent. ~ The City Commission may wai..e the minimum standards for any commodity or contractual service in excess of $25.000.0Q; SECTION 21.6 Emergency Purchases A. The Department Director mav make Emergency plIrehflSesPurchases. which affect the health, welfare, ar safety efthe Pllblie may be maae with appreval authorization of the City Manager. in accordance with emergency purchasing procedures set forth in the Purchasing Manual. A summarv report of all emergency purchases shall be submitted to the Citv Manager on a monthly basis. &~ -Emergency purchases of $ I 5,000.00$25.000.00 or more will require that the City Maf!agefCity Manager or the Department Director, ill writillg, premptly inform the City Commission regarding the purchase and the nature of the emergency~. by submitting a report. of all such emergency purchases at the next regularly scheduled City Commission meeting following the emergenCY. 006.18494400&, W4944J!,s 5 SECTION 21.7 Procedures and Practices A. The City Manager is hereby directed to establish a system, or amend the existing system, of uniform procurement procedures and practices to implement this Chapter, and the PuriJh~ing Manual. Additions, deletions, or Ilffiendments to these purehasing preeetlures afui practiees shall be at the sele diseretien ef the City Maflllger. The purchasing procedures. as established by the City Manager aboye. are detailed as part of the Purchasing Manual. L The adoption of a fpurchasing MaflUal Policy shall be made by Resellitien City Ordinance. of the City Commission. C. According to the City Charter. the Mayor and City Clerk shall execute all contracts. As set forth in Section 21.4, the purchase of commodities and contractual services with a yalue less than $15,000.00$25.000.00 do not require City Commission approyal. -If a contract is required in connection with such a purchase, then following ap('lfflYIlI ef a pureh~e ereefCompliance with Section 21.4. Minimum Standards, the Mayor and City Clerk shall execute all such contracts. and City Clerk shall execute all slIeh eontraets. D. Failure to comply with the Purchasing Ordinance or Purchasing Manual is a group I or group II offense as defined in the Personnel Rules and Regulations. and may result in removal of the employee's purchasing privileges and other disciplinarv actions as detailed in the Personnel Rules and Regulations (PRR). SECTION 21.8 Exemptions A. The following commodities and contractual services shall not be procured subject to this Chapter;, (I) APPRAISAL SERVICES (2) f.UDITING SERVICES (2) CATERING/FOOD t31 (3m COLLECTIVE BARGAINING AGREEMENTS (4) DUES (5) EMPLOYEE SCREENING SERVICES INCLUDING MEDICAL -(6) ENTERTAINMENT (7) FINANCIAL SERVICES (8) FREELANCE SERVICES (7) INSUR..\NCE (8) INSURf,NCE SERVICES (9) LAND PURCHASES (10) LEGAL ADVERTISING 006.18494400&. 41l4944J;,s 6 -(II) LEGAL SERVICES (12) POSTAGE/SHIPPING (13) TEMPORARY EMPLOYMENT CONTRACTS (I:li!) TRA VELrrRAINING (I~;) UTILITIES (16) VETERINARIAN SERVICES B. The (lffieurement af Professional architectural. engineering. landscape architectural. or surveving and mapping services (lr~fessianalllHB eBntflletllal serviees within the seB(le Bf the (lflletiee Bf arehiteeture, (lffifessiBnal engineering, lanBsea(le arehiteettlfe, and registeroo surveying anB ffia(l(ling shall be procured in accordance with the requirements of SectiBn Section 287.055, Florida Statutes, and shall not be subject to the requirements of this Chapter. -Section 287.055 is short-titled the "Consultants' Competitive Negotiation Act" (CCNA). C. Professional Auditing Services shall be procured in accordance with the requirements of Section 2 I 8.391. Florida Statutes. and shall not be subiect to the requirements of this Chapter. Section 2 I 8.391 is short-titled "Auditor Selection Procedures". D. Professional Design-Build Construction Services shall be procured in accordance with Chapter 4 of the Code of Ordinances of the Citv of Ocoee. Florida. and shall not be subiect to the requirements of this Chapter. Chapter 4 is titled "Design-Build Contracts". E. Group Insurance for Emplovees and Public Officers shall be procured in accordance with the requirements of Section 112.08. Florida Statutes. and shall not be subiect to the requirements of this Chapter. Chapter 112.08 is short-titled "Group insurance for public officers. emplovees. and certain volunteers; phvsical examinations." SECTION THREE. Severability. If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct, and independent provision and such holding shall not affect the validity of the remaining portion hereto. SECTION FOUR. Codification. It is the intention of the City Commission of the City that the provisions of this ordinance shall become and be made a part of the Code of Ordinances of the City; and that sections of this ordinance may be renumbered or re-Iettered and the word "ordinance" may be changed to "chapter," "section," "article," or such other appropriate word or phrase in order to accomplish such intentions; and regardless of whether such inclusion in the code is accomplished, sections of this ordinance may be renumbered or re-Iettered and the correction of typographical errors which do not affect the intent maybe authorized by the City Manager, without need of public hearing, by filing a corrected or re-codified copy of same with the City Clerk. 006.184944fl(l6, -Hl4944Ji-05 7 SECTION FIVE. Effective Date. This Ordinance shall become effective upon passage and adoption. PASSED AND ADOPTED this day of , 200~9. APPROVED: ATTEST: CITY OF OCOEE, FLORIDA Jean CraftoflBeth Eikenberry, City Clerk S. Scott Vandergrift, Mayor ADVERTISED READ FIRST TIME , 200~G , 200~G READ SECOND TIME AND ADOPTED , 200~G UNDER AGENDA ITEM NO. FOR USE AND RELIANCE ONLY BY THE CITY OF OCOEE, APPROVED AS TO FORM AND LEGALITY, THIS day of ,200~G FOLEY & LARDNER. LLP BY: CITY A TIORNEY 006.18494400& -Hl4944,ji,s 8