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HomeMy WebLinkAboutVI (A) Resolution No. 96-19, adopting the Purchasing Manual AGENDA 7-16-96 "CENTER OF GOOD LIVING -PRIDE OF WEST ORANGE" Item VI A Ocoee S.SCOTT VANDERGRIF O� r/y. COMMISSIONERS 1RUSTY JOHNSON CITY OF OCOEE SCOTTANDE SON a 150 N.LAKESHORE DRIVE SCOTT A.GLASS OCOEE,FLORIDA 34761-2258 e JIM GLEASON V yf �? (407)656-2322 CITY MANAGER e4. CITY 0000�` ELLIS SHAPIRO MEMORANDUM TO: The Honorable Mayor and Boar of City Commissioners FROM: Mark W. Brace, CPPB, Buyer DATE: 09 July, 1996 RE: ADOPTION OF RESOLUTION NO. 96-19 The attached Resolution NO. 96-19 is for the purpose of adopting a Purchasing Manual (also attached) . This manual follows very closely with proposed Ordinance No. 96-10, the adoption of which is also scheduled for this July 16th's City Commission Meeting. Like the Ordinance, the manual was a culmination of other manuals currently being used by both local and state agencies as well as following most of our current practices and procedures. This manual will be the guideline for all City Departments to utilize for the proper procedures for procurement of commodities and contractual services through the Purchasing Division. ACTION REQUESTED The Mayor and Board of City Commissioners adopt Resolution NO. 96- 19, adopting a Purchasing Manual, and that the Mayor and City Clerk execute all necessary documents relating to this adoption. RESOLUTION NO. 96- 19 A RESOLUTION OF THE CITY OF OCOEE, FLORIDA, ADOPTING A PURCHASING MANUAL; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Commission of the City of Ocoee desires to provide for the most current purchasing policies and regulations for the employees of the City; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF OCOEE, FLORIDA, AS FOLLOWS: SECTION ONE. Short Title and Authority. A. This Resolution shall be known and may be cited as the "CITY OF OCOEE PURCHASING MANUAL RESOLUTION. " B. The City Commission of the City of Ocoee has the authority to adopt this Resolution pursuant to Article VIII of the Constitution of the State of Florida and Chapter 166, Florida Statutes, and Section C-8E of the Charter of the City of Ocoee, and Ordinance No. 96- io adopted July , 1996. SECTION TWO. The City Commission of the City of Ocoee hereby adopts the City of Ocoee Purchasing Manual as set forth in Exhibit "A" attached hereto and by this reference made a part hereof. SECTION THREE. CONFLICTS. All resolutions, parts of resolutions, or acts of the City Commission of the City of Ocoee and all policies and procedures of the City whether implemented by the City Commission, the City Manager or City staff which are in conflict with this Resolution and the City of Ocoee Purchasing Manual adopted by this Resolution are hereby repealed and rescinded. Further, in the event of any conflict between the City of Ocoee Purchasing Manual and the Florida Statutes, the provisions of the Florida Statutes shall control. SECTION FOUR. Severability. If any section, subsection, sentence, clause, phrase, or portion of this Resolution 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. Effective Date. This Resolution shall become effective immediately upon passage and adoption. PASSED AND ADOPTED THIS DAY OF , 1996: APPROVED: Attest: City of Ocoee, Florida Jean Grafton, City Clerk S. Scott Vandergrift, Mayor FOR USE AND RELIANCE ONLY APPROVED BY THE OCOEE CITY BY THE CITY OF OCOEE COMMISSION AT THE ABOVE APPROVED AS FORM AND REFERENCED MEETING UNDER LEGALITY THIS AGENDA ITEM NO. DAY OF , 1996. FOLEY & LARDNER BY: CITY ATTORNEY CITY OF OCOEE , FLORIDA PURCHASING MANUAL Ocoee o>1 . N , 0 r„,A, it .. 4.• ,. ., a. Clo c�. 2C� ylF4, OF G000 CITY OF OCOEE, FLORIDA PURCHASING MANUAL TABLE OF CONTENTS PAGE SECTION 1 CITY OF OCOEE PURCHASING ORDINANCE 1 SECTION 2 PURCHASING POLICY 2 SECTION 3 PURCHASE REQUISITION 3 SECTION 4 PURCHASE ORDER 6 SECTION 5 BLANKET PURCHASE ORDER 11 SECTION 6 PARTIAL PAYMENTS - PURCHASE ORDER 12 SECTION 7 PETTY PURCHASE ORDER 13 SECTION 8 PETTY CASH 15 SECTION 9 EMERGENCY PURCHASE 17 SECTION 10 BID/REQUEST FOR PROPOSAL PROCESS 18 SECTION 11 QUOTATIONS 20 SECTION 12 CONTRACTS 21 SECTION 13 RECEIVING GOODS OR SERVICES 22 SECTION 14 FIXED ASSETS 24 SECTION 15 VENDORS 25 THIS SECTION RESERVED FOR ORDINANCE NO. 96-10 (PROPOSED ADOPTION DATE, JULY 16TH, 1996) ORDINANCE IS INTENDED TO BE INCLUDED IN MANUAL SECTION 2 PURCHASING POLICY This purchasing procedure is designed to establish an orderly, uniform method of purchasing commodities and contractual services. As public servants, we are committed to purchase commodities and contractual services at the least possible costs without compromising the necessary quality to do the appropriate job. We strive to maintain strong and enduring relationships with vendors of proven ability and desire to meet our needs . To accomplish this, our purchasing activities will be conducted so that vendors will value our business and make every effort to furnish our requirements on the basis of quality, service and price. This purchasing manual is written as a guide to proper purchasing methods and shall be considered the adopted policy of the City. A strong knowledge of this manual will result in the efficient acquisition of commodities and contractual services by those responsible for this important function. 2 SECTION 3 PURCHASE REQUISITION Definition - a method of informing the Buyer, City Manager and Finance Department of a departmental need to procure commodities or contractual services . Policy - must be filled out for all requests to purchase commodities and contractual services over $50 . 00 . Authorized User - the department director or designated representatives as listed in writing to the Finance Department . Procedure - the department director shall receive pre-numbered requisitions from the Buyer. The department director shall fill out a purchase requisition for the purchase of all commodities and contractual services over $50 . 00 . The completed requisition shall be approved by the department director and submitted to the Finance Department for applicability and budgetary review. After approval by the Finance Department, it shall be sent to the Buyer, who shall complete a purchase order. General Comment - the requisition and its mandatory use guarantees the citizens the most complete review of a pending purchase prior to the expenditure of public funds . The department director should anticipate a completion time of five (5) days to generate the purchase order; therefore, pre-planning is imperative . 3 PURCHASE REQUISITION FORM WHITE COPY - sent to Finance to verify funds availability then to Buyer for review and completion of a purchase order. YELLOW COPY - retained by the requesting department . (1) Department requesting the purchase - should include the division, if applicable. (2) If the requesting department has a suggested supplier - place # here - if quotes are required and the requesting department has these quotes, said quotes and any other information as to why a suggested supplier is requested should accompany the requisition. Copy of staff report shall accompany requisition if Commission action was taken. (3 ) Advise which location the commodity or contractual service shall be used. (4) Description of the purpose of this purchase. (5) The appropriate budgetary account number or numbers to be charged. If more than one account number, should be listed with each line item description on #12 . #5 should then say, "SEE BELOW. " (6) Authorized Finance signature advising that funds are available to the requesting department for this purchase . (7) The date these commodities or contractual services are required by the requesting department . (8) A complete explanation why the requesting department needs to procure the listed commodities or contractual services (must be completed) . (9) This section reserved for Finance or Purchasing. (10) The number of items listed on that particular line description. (11) The type of unit requested such as each, dozen, pound, ton, yard, etc . (12) The accurate and complete description of the commodities or contractual service requested on that line item. Shipping costs, if known, should be listed separately. (13 ) Price Per type of unit listed under #11 . (14) Cost of line item described multiplying quantity times unit 4 price. (15) Total of all estimated costs listed on the requisition. (16) Advise method of delivery, if any, needed and any special instructions including address of location delivery is to be made. (17) Date on which the requisition was filled out . (18) Signed by the authorized departmental representative. 5 CITY OF OCOEE 6081 REQUISITION TO THE PURCHASING DEPT. ADMINISTRATIVE SERVICES CHARGE ACCOUNT NUMBER PLEASE ORDER FOR DEPT. D it SUGGESTED SUPPLIER dINANCE SIGN OFF: 0 BE USED AT LOCATION -0 BE USED FOR PURPOSE G DATE NEED BY:©_ JUSTIFICATION (MUSTBECOMPLETED) c) COMMENTS: , , QUANTITY/UNIT ITEM DESCRIPTION UNIT PRICE ESTIMATED COST Z: I \tfltfl ( SA►MI�L1.= owcy > PLEASE CHECK ONE ✓ DATE _CCATION SIGNED .ILL PICK UP 5-1 SECTION 4 PURCHASE ORDER Definition - The Purchase Order is a pre-numbered document that officially notifies the requesting department and the selected vendor that a particular commodity or contractual service has been authorized for purchase and states to the vendor terms of said purchase. The Purchase Order is a valid document only when authorized by the City Manager (Purchasing Agent) , or the City Manager' s designated representative. Policy - The Purchase Order is the legal document authorizing the purchase of, and subsequent payment, for materials, supplies, equipment, construction, repairs, and contractual services . The Purchase Order notifies the vendor what quantity and unit price shall be accepted, where the products are to be delivered and any other specific requirement expected. Purchase Orders must be carefully worded and accurately prepared to minimize errors and possibility for misunderstanding. This document also alerts the requesting department that the commodities or contractual services have been authorized and purchased and advises the Finance Department to expect a bill to be paid for these commodities or contractual services when the contract stipulations are finally met . Anytime a requisition is completed and processed, a Purchase Order will follow. 6 PURCHASE ORDER PROCEDURE Procedure - Upon approval by the Purchasing Agent, the Purchase Order is initiated for distribution and use as follows : STEP I: Green copy is sent directly to the vendor, initiating the purchase. The white copy is retained by the Buyer/Purchasing Department for filing by vendor and number. Yellow copy is sent to the Finance Department advising them of the encumbrance in the requesting department' s budget . The using department receives the goldenrod copy, which is the receipt of goods, and places same in file. STEP 2 : When vendor fulfills order shown on green copy, commodities or contractual services are received by the requesting department along with a bill of lading or packing slip . The vendor sends an invoice requiring payment by the Finance Department . Invoices are required for all payments . STEP 3 : The department that receives the commodities or contractual services and is satisfied with same, signs the goldenrod copy (receipt of goods) , authorizing payment to vendor and returns it to the Finance Department. (See section on Final and Partial Payments . ) Occasionally, a Purchase Order is written for an estimated amount and charges exceed the amount of the Purchase Order. The department director must attach a memo of explanation to the Receiat of Goods (Goldenrod cony of the Purchase Order) when the charges exceed the written amount . The City Manager or designee will review the charges for reasonableness . If approved, the purchase may continue. If denied, the purchase order shall be canceled. Cancellation - A Purchase Order may be canceled after issuance for the following reasons : A. Item unavailable - Buyer writes VOID across Purchase Order after receiving a notification from vendor indicating item unavailable . Vendor shall be notified by certified letter. 3 . Item no longer needed - Requesting department director documents that commodities or contractual services are no longer needed. Buyer writes VOID across Purchase Order; copy of voided Purchase Order sent back to department director by Buyer. Vendor shall be notified by certified letter of cancellation. C. Failure of vendor to comely_ - the Buyer shall inform vendor by certified letter of deficiencies and City' s intention to void Purchase Order. Vendor will be given a specific time frame by which to correct any problems . If criterion is not met, Purchase Order is voided and marked as such to liquidate the budgetary encumbrance and sent to the Finance Department . D. Denial of the Purchase Order by the City Manager or designated representative. 8 PURCHASE ORDER FORM (1) Name and remittance address of vendor - important to fill out information correctly and in its entirety. (2) Date Purchase Order filled out . (3) If the purchase is authorized as a result of a City bid or the bid of another governmental unit, the appropriate bid number should be placed here. (4) The address where purchased commodities are to be delivered or where contractual services are to be performed. Make sure address is in its entirety and correct . Special delivery instructions can be placed in this section. (5) This instruction is important for the selected vendors to follow. All invoices for purchase orders should be senc directly to Accounts Payable. (6) The number of items to be purchased. (7) The type of unit to be purchased such as each, dozen, pound, ton, yard, etc. (8) A concise description of the commodities to be purchased or contractual service to be performed including, but not limited to, model number, color, function, special equipment to be included, etc . (9) Price per type of unit described in #7 . (10) The total is the quantity times the unit price of item to be purchased. (11) Total of all money to be expended in this purchase. (12) Person or persons to notify at the City if terms and conditions of Purchase Order are questioned or cannot be met . (13 ) The departmental budgetary account number that funds for the purchase are to be taken from. If there is more than one account number, write "Charge as Follows : " and place account numbers at bottom of description space . (14) Approval by City Manager (Purchasing Agent) of the City or designated representative, authorizing the purchase of the commodities or contractual service (s) . (15) Signature of the City employee who receives the delivery of the commodities or contractual service described on the Purchase Order. 9 (16) The date the commodities or contractual services were received by the City. (17) The department who requested the goods or services on the Purchase Order. (18) The department director who authorizes the payment of the Purchase Order when completed. 10 PURCHASE ORDER CITY OF OCOEE 150 N. LAKESHORE DRIVE No. 9 3 5 5 OCOEE. FLORIDA 34761-2258 (407) 656-2322 VENDOR:(NOT TRANSFERABLE) SALES TAX EXEMP. #58-11-094593-54C 17-im Date: Bid Number, n L -SHIP (� INVOICE 6) _O `�' TO CITY OF OCOEE ACCOUNTING DEPARTMENT 150 N.Lakeshore Drive Ocoee,FL 34761-2258 I.O.B. Destination To Be Delivered Terms: Req: Dept. QUANTITY UNIT DESCRIPTION UNIT PRICE TOTAL �1 �) �Q�• C% 10 ) VOID S�4M1'LL OA/ ':OTIFY • ACCOUNT NO. L.2 This Purchase Order subject to the Terms and Conditions as stated on the reverse side. CITY OF OCOEE -4E CITY OF OCOEE IS AN EQUAL OPPORTUNITY EMPLOYER By ,4TA-FCRMS 1.800.447.3676 0C29939 VENDOR PURCHASING AGENT Received by Approved for payment Department Date Received I ❑anamnonr i-1 r4 • GENERAL The condition of this order must not be changed by vendor. If order is not acceptable, return to the City of Ocoee Purchasing Department. Failure to deliver or to comply with any of the terms and conditions according to this Purchase Order or any contract that so generated this Purchase Order may disqualify the vendor from receiving future orders. QUALITY All materials or services furnished on this order must be as specified, and subject to City inspection and approval within a reasonable time after delivery at destination. Variations in materials or services from those specified in this order must not be made without written authority from the Purchasing Agent. Material rejected will be returned at the vendor's risk and expense. QUANTITY/PRICE The quantity of materials ordered or the price specified must not be exceeded without written authority being first obtained from the Purchasing Agent. INDEMNITY AND INSURANCE The vendor agrees to indemnify and hold harmless the City of Ocoee, including its officers, agents and employees, from all claims, damages, losses and expenses, including reasonable attorneys fees. brought or incurred on account of injuries or damages sustained by any party due to the operations of or goods sold by the vendor under this contract. The vendor further agrees to provide workers' compensation for all employees, and to maintain such general and auto liability insurance as is deemed necessary by the City for the particular circumstances and operations of the vendor. The vendor further agrees to provide the City with Certificates of Insurance, indicating the amount of coverage in force, upon request. PACKING Packaces must be plainly marked with shipper's name and Purcnase Order Number: charges are not ailowea for boxing or crating unless previously agreed upon in writing. DELIVERY All materials must be shipped F.O.B. Destination. The City will pay no freight or express charges, except by previous agreement. !f specific purchase is negotiated on the basis of F.O.B. shipping point. VENDOR IS TO PREPAY SHIPPING CHARGES AND ADO TO INVOICE. Delivery must actually be effected within the time stated on Purchase Order, failing which, the City reserves the right to cancel this order and purchase elsewnere. Deliveries shall be made between 8:00 A.M. and 5:00 P.M. Monday through Friday unless other- wise stated. In case of default by the vendor, the City of Ocoee may procure the articles or service covered by this order from other sources and hold the vendor responsible for any excess expense occasioned thereby. MATERIAL SAFETY DATA SHEET The vendor agrees to furnish the City of Ocoee with a current Material Safety Data Sheet (MSDS) on or before delivery of each and every hazardous chemical or substance purchased which is classified as toxic under Florida Statute 442. Appropriate labels and MSDSs shall be provided for all shipments. OSHA REQUIREMENT The vendor or contractor hereby guarantees the City of Ocoee that ail material, supplies and equipment as listed on the Purchase Order meet the requirements, specifications and standards as provided for under the Federal Occupations Safety and Health Act of 1970, as from time to time amended and in force at the date hereof. BACKSIDE CF VENDOR'S COPY OF PURCHASE ORDER 10-2 SECTION 5 BLANKET PURCHASE ORDER Definition - A Purchase Order written to a particular vendor with a monetary limit and time frame for all types of commodities and contractual services to the City. Neither individual orders nor total orders per Purchase Order are to exceed a total of $5, 000 . 00 . Authorized User - Requesting department directors or designee. Application - Blanket Purchase Orders are due for renewal one (1) week prior to the expiration date. Procedure - The Blanket Purchase Order is used in the following manner: A. At least one week prior to expiration, requisitions are forwarded by the requesting department to the Finance Department for applicability and availability of funds and then to Buyer for review and processing. 3 . After the Finance Department reviews the requisition for budget encumbrance, a Purchase Order is typed. Once the Purchasing Agent has authorized the Purchase Order, it is distributed in the same manner as any other Purchase Order, except that the goldenrod copy goes to the Finance Department and a photocopy of the purchase order is sent to the requesting department . C. Payments on Blanket Purchase Orders are made bv_ the department director approving each invoice for commodities or contractual services including a description of the project charged and submitting same to the Finance Department for payment . General Comments - Blanket Purchase Orders are used to ensure uninterrupted service by the City. Purchases made by Blanket Purchase Orders should be day-to-day purchases and not special projects . Do not split purchases under this system to circumvent the $5, 000 . 00 limit . The Blanket Purchase Order system is not designed to circumvent the proper purchase order system. Each Blanket Purchase Order shall have a monetary limit and time frame set by the administration for the fiscal year. 11 SECTION 6 PARTIAL PAYMENTS - PURCHASE ORDER Definition - Authorization to pay vendors part of their balance due for commodities and contractual services because of partial shipment, back orders, terms of contracts, etc. Authorized User - Department director or designee. Application - This method is used when the terms of the agreement with a vendor require partial payments, when orders are substantial and some items are back ordered, when the department director determines the vendor has delivered enough of the stipulated commodities or contractual services to warrant partial payment and has written request from the vendor for same and/or Blanket Purchase Orders on a timely basis . NO payment will be made without an invoice. Procedure - Invoice must be approved by Department Director and clearly marked "Partial" next to the Purchase Order number. General Comments - The use of partial payments must be governed by good purchasing practices . Although this method of payment should be used as a methcd of promoting good payment practices to our vendors, and in assisting the Finance Department in the clearance of accounts cavable, if used improperly can promote an attitude of slow delivery on the behalf cf the vendor. 12 SECTION 7 PETTY PURCHASE ORDER Definition - A method of purchasing incidental items on a day-to- day basis where a vendor will accept a purchase order and the costs total $50 . 00 or less . Purchases from catalogs shall be prohibited from using this method. Authorized User - Any employee of the City who is authorized to do so in writing by their department director. The department director shall forward a list of authorized persons to the Finance Director and City Manager. Procedure - Petty purchase orders are to be pre-numbered and obtained from the Buyer, and submitted to the Finance Department for applicability and availability of funds . The department director shall fill out the petty purchase order. The departmental employee shall take the completed petty purchase order to the designated vendor and purchase the items listed. The employee shall show their identification to the vendor and shall give the vendor their copy of the petty purchase order. The employee shall submit the remaining copies of the petty purchase order to the department director for distribution along with the original invoice . The department director shall submit all paperwork to the Buyer for encumbrance . General Comments - The petty purchase order system is designed to assist the departments in completing day-to-day tasks . This form is net designed to by-pass the purchase order or blanket purchase order systems . Its careful use is required. 13 PETTY PURCHASE ORDER FORM GREEN COPY - to vendor. GOLDENROD COPY - to Buyer along with the receipt to process for finance for payment . BLUE COPY - to Buyer along with receipt for filing. (1) Date petty purchase filled out - should be used the same date filled out . (2) Vendor description should include full legal name and the correct address of store or location to be visited. (3) The name of the department to make the purchase . Should also include the division of the department if applicable . (4) Quantity should be accurately designated to include each, dozen, gallons, yards, pounds, tons, etc. (5) The description should accurately depict the commodities to be purchased and should be filled out prior to authorization signature . (6) Price should be listed in accordance with quantity described in (7) Amount should be the total of quantity times unit price . (8) The total added amounts of all items listed for purchase . (9) An accurate description of how the department shall use the materials purchased. (10) The signature of the department director or designated representative who authorized the purchase . (11) The signature of the City employee who purchased and received the commodities . (12) The department director or designated representative reviewing the completed purchase and approved all documents prior to dispersal to Buyer. (13 ) The appropriate departmental budgetary account number used to purchase the listed goods and authorization by signature of the Finance Department that funds are available . id OATA•FORMS RESOURCES.INC.(4071 666-9742 92247 NOT VALID FOR MORE THAN $50.00 - - VENDOR'S COPY CITY OF OCOEE Petty Purchase Order 150 N. LAKESHORE DRIVE OCOEE.FLORIDA 34761 No. P 14462 DATE VENDOR ( 1. DEPARTMENT INVOICE IN DUPLICATE MUST BE GIVEN BEARER AT TIME OF PURCHASE EXEMPT FROM FEDERAL EXCISE TAX&STATE SALES TAX SALES TAX EXEMP. I#58-1 1-094593-54C QUANTITY DESCRIPTION UNIT AMOUNT PRICE a G C) i C 59#? LL oN L y ABOVE MATERIALS TO BE USED FOR: lJ ACCOUNT NO. AUTHORIZED BY 63 RECEIVED BY f1' A ROVED BY THE CITY OF OCOEE IS AN EQUAL OPPORTUNITY EMPLOYER 14-1 SECTION 8 PETTY CASH Definition - A method of purchasing incidental items on a day-to- day basis where a vendor will not accept petty purchase orders and the costs total less than $50 . 00 . Authorized User - Any department director or designee. The using department director shall fill out and authorize the petty cash voucher. Procedure - The Finance Department shall be the sole source of cash funding. When a petty cash purchase is deemed to be necessary, the Finance Director or designated representative shall authorize the City employee to make the purchase by approving the petty cash voucher not to exceed $50 . 00 . The petty cash voucher shall be cashed by Finance for the amount indicated. The authorized employee shall make the purchase and return with the receipt and any change resulting from the purchase. The employee .making the purchase shall be totally responsible for all money obtained through petty cash. The petty cash slip must be signed by the employee receiving the money and making the purchase . All receipts and change must be turned into the Finance Department within two (2) working days . General Comments - the petty cash system is designed to acquire items such as tolls, parking fees and food. The petty cash system is not designed to bypass the purchase order process but rather to complement it . , 3 PETTY CASH SLIP (1) Date of transaction (2) Description of item or service (3) Amount of described item (4) Budgetary account number item to be charged to and Finance Department approval (5) Total of all purchases made using funds on this Petty Cash Slip (6) Person who received the petty cash funds (7) Person who approved the transaction RECEIVED OF PETTY.CASH No. GATE CI DESCRIPTION OF ITEM /SERVICE PURCHASED AMOUNT Li • VOID o CHARGE TO ACCOUNT Ei TOTAL -E:ENE:E" .PPgOVEO BY TCPS O"CRM�CC9 o. u5� 1 0 SECTION 9 EMERGENCY PURCHASES Definition - the procurement of a commodity or contractual service waiving all purchasing requirements when the public' s health and safety may be at jeopardy by the curtailing of an essential municipal service . Authorized User - any department director upon the authorization of the City Manager. Procedure - at any time a department director has determined that an emergency exists that requires an immediate procurement of a commodity or contractual service, they shall contact the City Manager to receive verbal approval of the purchase. On the next working day, the department director shall send a memorandum to the City Manager explaining in detail the emergency that existed, the description of the commodity or contractual service that was needed and the full cost of the good or service that was needed. Also attached to the memorandum shall be a purchase requisition appropriately filled out . The City Manager shall confirm the emergency purchase in writing and request the Buyer to fill cut a confirming purchase order for the commodity or contractual service . The distribution of the confirming purchase order shall be the same as any other purchase order and authorization to pay shall be the same as any purchase order. In the event that the emergency purchase was over $10 , 000 . 00 , the City Manager shall, in writing, promptly inform the City Commission regarding the purchase and the nature of the emergency. General Comment - emergency our`bases are usually extremely costly. - They are usually made in a hurry at top prices . Vendors generally charge a premium for commodities or contractual services required immediately. Unless absolutely necessary, emergency purchases should be avoided as much as possible . 17 SECTION 10 BID/REQUEST FOR PROPOSAL PROCESS Definition - At budget preparation, after review by the administration and City Commission, it is determined that commodities or contractual services which are anticipated to cost $10, 000 . 00 or more is necessary and is placed in the approved budget . Authorized User - all department directors may initiate the process to advertise for Bid or Request For Proposal ( "RFP" ) after placement in City budget by the City Commission. Policy - the Bid/RFP process is used to ensure a competitive situation with equality so that the citizens of the community are ensured the best possible price at the best possible quality on all major purchases . Procedure - the user department shall submit a requisition, and with the assistance of the Buyer, shall prepare the bid specifications . If staff is unable to prepare the specifications due to the level of expertise required, the City Manager shall be available to assist in coordinating specification preparation by an outside source . The Buyer will assemble most Bid/RFP packages for mailing to prospective bidders on the bidders ' list . The Buyer will coordinate advertisement with the City Clerk, and bid opening and award dates with the user department director. All bids/proposals will be received in the City Manager' s office and shall be marked with the date and time of receipt by the Buyer. The user department' s director or designee and the Buyer shall be present at all bid/proposal ccenings . Pursuant to Section 119 . 07 (3 ) m, Florida Statutes, sealed bids or proposals received by the City pursuant to invitations to bid or request for proposals are not subject to inspection, examination, or copying until such time as the City provides notice of a decision or intended decision or within 10 days after bid or proposal opening, whichever is earlier. The 10-day period does not include the date of the notice or opening. When the invitation to bid or request for proposal requires the bid or proposal to be placed in two separately sealed envelopes to be submitted simultaneously and not opened on the same date, the 10-day period begins the day after the opening of the second envelope . It shall be the responsibility of the Buyer and user department director to review all bids/proposals and to make sure of the vendor' s conformance to the bid/proposal requirements . The Buyer and user department director shall make a recommendation to the City Manager to award the bid/procosal . If a contract is not 18 warranted and all requirements have been met, a purchase order shall be issued. When the City receives no submittals for either a competitive sealed bid or proposal, the City Manager (Purchasing Agent) or designee shall either re-bid, cancel the proposed procurement, or proceed with procurement pursuant to Chapter 21.5 . of the City' s Purchasing Ordinance. 19 SECTION 11 QUOTATIONS Definition - a written or verbal price for a commodity or contractual service used to determine the correct price for purchase. Authorized User - department director or Buyer. Procedure - when a purchase is estimated to be between $250 . 00 and $1, 000 . 00 , three (3) verbal quotes are required to be received in order to choose a vendor for the purchase . The quotes can be gathered by the using department director or Buyer and must be recorded on the requisition or attached to the requisition on a memorandum. When a purchase is estimated to be between $1, 000 . 00 and $10 , 000 . 00, three (3) written quotes must be gathered by the using department director or Buyer. Said written quotes shall be attached to the requisition prior to a purchase order being issued. The above procedure shall be waived upon review and approval by the Purchasing Agent or their designee when the following has occured: 1) "Sole source" procurements may be made upon approval of the City Maraaer when only one vendor is able to provide commodities or contractual services of adequate quality or quantity and meets the City' s requirements , or where compatibility with existing systems requires procurement from a single source; and/or 2) All requirements for competition shall be deemed satisfied and no further solicitation of bids cr quotes is necessary if procurement is made pursuant to purchase contracts of the City, any other Florida municipality, a Florida county, the State of Florida, the United States General Services Administration, or cooperative purchasing made un of any combination of the above, when such contracts are the result of a competitive bidding process . 20 SECTION 12 CONTRACTS Definition - a contract is a written agreement between the City and a vendor detailing the responsibilities of both parties in the provision of a commodity or contractual service. A contract shall be used in all instances where a commodity or contractual service costs $10, 000 . 00 or more and/or where the Purchasing Agent or designee determines that the terms and conditions are complex cr incremental or in any other way require a contract . No contract shall be entered into on behalf of the City unless authorized by the City Commission. Procedure - after the public opening of the bid/proposal and the subsequent review by staff, a contract shall be prepared detailing the specific terms and conditions of the purchase of the commodity or contractual service. The Buyer and user department director shall work with the city attorney to prepare the appropriate document . The contract shall be reviewed by the City Attorney and City Manager prior to submittal to the City Commission for approval . Upon the approval of the contract by the City Commission and the proper execution of the document, the contract shall be distributed as follows : (a) one copy to vendor; (b) original copy to City Clerk; (c) one copy to the Finance Department; and (d) one copy to the user department . State or Local Government Contracts - many items that may be bid will already be bid by another unit of government . Due to size and volume of the bid, the prices secured may be lower than quotes received by the City prior to bid. Since this may be the case Cuite often, the Buyer and user department director should review all pertinent contract prices current in force. If the prices are unequivocally lower for the same quality, the department director and Buyer in such case may recommend waiving the bid process and in such case the City Commission may award the bid awarded by any other Florida municipality, a Florida county, the State of Florida, the United States General Services Administration, or cooperative purchasing made up of any combination of the above, when such contracts are the result of a competitive bidding process . Incremental payments on a contract shall be paid in accordance with the terms of the contract, and shall be authorized by vendor invoices in conjunction with issued purchase orders, if applicable. 21 SECTION 13 RECEIVING GOODS OR SERVICES Definition - the method by which the City accepts goods or services and initiates payment for same to the vendor. Authorized User - all City employees authorized by their department directors to accept deliveries of commodities or contractual services . Policy - to ensure that the vendor has complied with all terms of the purchasing agreement prior to payment . Procedure - A. For receiving commodities in packages : 1 . Examine the package carefully to see if visible damage to the package is present . If visible damage is present, DO NOT OPEN the package and DO NOT ACCEPT DELIVERY. If already accepted for delivery, notify your department director so that arrangements can be made to return to vendor. 2 . If no visible damace is seen on the outside of package, look for packing slip either attached to outside of box or inside of box. Compare packing slip with purchase order as well as contents of package to determine whether all items listed are there and are in good condition. If items are not there or damaged, notify department director and make arrangements to ship back to vendor either in whole or part . If acceptable, authorize receipt and give to department director for initiation of payment by the Finance Department . 3 . Inspection of commodities should be done at time of receipt and payment authorization should be given to the Finance Department within two (2) working days . B . For receiving contractual services : 1 . Review acreement with vendor for contractual service to be performed prior to their arrival . Know what they are to do and check on the service person while they are there . Prior to acceptance of such contractual service, be satisfied that they have successfully completed the task. 2 . If you are satisfied that the contractual service has been performed satisfactorily, notify your department d; -- ~or so that initiation of payment can be made. 22 3 . Inspection of contractual services should be done at time of completion and payment authorization should be given to the Finance Department within two (2) working days. General Comments - Next to buying the wrong commodity or contractual service at the wrong quality or price, the second most costly mistake is accepting the wrong commodities or contractual service, or receiving less than you originally expected or agreed upon. 23 SECTION 14 FIRED ASSETS Definition - fixed assets are tangible property of significant value having a useful life that extends beyond one year. The fixed assets included in our accounting system are land, buildings, other improvements and equipment having a value of $500 . 00 or more. Certain items with a cost of less than $500 . 00 may be included where inventory control is deemed appropriate by management . Authorized User - the department director to whom the custody of property has been delegated is accountable for the property. Policy - proper fixed asset records are useful for budget preparation, allows for the best use of equipment among departments, provides necessary insurance records, and aids in determining when equipment has become worn-out and should be replaced. An effective property control program is also necessary to protect the City against losses and misplacement of valuable items . Application - procedures for the acquisition and recording of fixed assets should be followed when purchasing any item with a value of $500 . 00 or more and an estimated useful life longer than one year. Procedure - after the property item has been acquired, no matter the method of acquisition, the custodial department director will forward the required information to the Finance Department as well as the Risk Manager for insurance coverage . An identification tag will be forwarded to the custodial department director for affixing to the item along with a copy of the completed data input form for department files . The identification tag shall be placed in full view so that when an inventory is taken, the asset can be readily identified. The tag number will stay with the asset for the life of the property item. In the event the custodial department director desires to dispose of or transfer a fixed asset, the required information will be forwarded to the City Manager or City Commission for approval or disapproval and returned to the department director indicating such. Once approved by the City Manager or City Commission, the original form will be sent to the Finance Department where the primary record keeping of fixed assets will be maintained. An annual physical inventory will be conducted on all fixed assets . General Comments - the City has millions of dollars invested in fixed assets . The care and maintenance of these assets are the responsibility of every employee . The acquisition of new assets and the replacement of old assets is coordinated through the five- year Capital Improvement Program and Budget . 24 SECTION 15 VENDORS It is important to develop and maintain a relationship of mutuality and goodwill between the City and its suppliers . No contract that proves unsatisfactory to the vendor can be regarded as totally satisfactory to the City. The City should always make a vendor aware of purchasing and payment procedures prior to the issuance of a purchase order. The vendor should contact the Buyer if there is any question or problem with these procedures . Likewise, the user department should contact the Buyer if there is an unsatisfactory condition existing with a vendor. Vendor lists are continually updated and are available to the departments from the Buyer. The use of correct name and address of the vendor is the responsibility of the user department when filling out requisitions or petty purchase orders . If a vendor wishes to be included on a bidder' s list, a letter detailing the vendor' s product or service should be sent to the Buyer to keep on file; however, this does not relieve the vendor from contacting the City for each bid advertised. 25