HomeMy WebLinkAboutItem #08 Second Reading of Ordinance Proposing Amending Chapter 21, Purchasing Policy11111kRo %/�
Ocoee
florida
AGENDA ITEM COVER SHEET
Meeting Date
November 1, 2016
Item # 8
Reviewed By:
Contact Name: Joyce Tolbert Department Director: -Waad a, H
Contact Number: 1516 City Manager:
Subject: Ordinance Amending Chapter 21 Purchasing Policy--- 2ndReadhTg & Public Hearing
Background Summary:
The First Reading of this Ordinance was held on October 18, 2016.
Staff recognizes that enhancements and revisions to the existing Purchasing Ordinance are
periodically necessary to streamline the procurement of commodities, construction, and contractual
services for the City. The recommended changes address some of these issues and the increase in
cost of items.
The major revisions contained in this ordinance are:
1) The approval levels for purchases have been increased for department directors and the
City Manager. There have been approximately seven (7) bids and/or piggyback approvals
this year by the City Commission between $25,000 and $50,000.
2) The method of solicitation for each level has been revised.
3) Amends definitions.
4) Amends exemptions, including the addition of the Construction Management method of
solicitation for construction projects. (Proposed by the City Attorney)
5) Establishes procedures for procurements funded by Federal Grants.
6) Establishes violations for failure to comply with the City's Purchasing Policy, (some as
required by Federal Regulations).
7) Establishes bid protest procedures.
Procedures have been reviewed and will be updated to reflect the changes in this Ordinance once
adopted.
Issue:
Should the City Commission 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:
1. Ordinance Amending Chapter 21 Purchasing Code (redlined copy provided at 1St reading)
2. Procurement Thresholds of other local Government Agencies
Financial Impact:
None
Type of Item: (please mark with an 'Y)
Public Hearing
For Clerk's Dept Use:
X Ordinance First Reading
Consent Agenda
Ordinance Second Reading
X Public Hearing
Resolution
Regular Agenda
Commission Approval
Discussion & Direction
X Original Document/Contract Attached for Execution by City Clerk
Original Document/Contract Held by Department for Execution
Reviewed by City Attorney
Reviewed by Finance Dept.
Reviewed by ( )
N/A
N/A
N/A
ORDINANCE NO. 200-5
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 SING c UNCTIO T; AMENDING AND
RESTATING AUTHORITY; AMENDING THE MINIMUM
STA NDARDPROCUREMENT THRESHOLDS; AMENDING AND
RESTATING EXEE-PT -10NS TC) MINIMUM
STDSEXCEPTIONS TO PROCUREMENT THRESHOLDS;
AMENDING AND RESTATING THE PROVISION OF EMERGENCY
PURCHASES; AMENDING AND RESTATING PURCHASING
PROCEDURES AND PRACTICES; AMENDING AND RESTATING
EXEMPTIONS; ESTABLISHING BID PROTEST PROCEDURES:
PROVIDING FOR SEVERABILITY; PROVIDING FOR
CODIFICATION; PROVIDING AN EFFECTIVE DATE.
BE IT ENACTED BY THE CITY COMMISSION OF THE CITY OF OCOEE,
FLORIDA AS FOLLOWS:
SECTION ONE. Authori . The City Commission of the City of Ocoee has the authority to
adopt this Ordinance 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.
SECTION TWO. Amended and Restated City Purchasing Policv. 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. "-Fovmal-Invitation to Bid (ITB)" •° ""
refers to the formal solicitation of two or more competitive
sealed bidsqualiAed
bidders o~ 09 ~O~S_: The ITB is used when the Citv is capable of specifically
defining the scope of work for which a commodity, contractual service, or
construction service is required or when the City is capable of establishing precise
specifications defining the actual commodity, group of commodities, material, or
equipment required.
C_"Contractor" or "Vendor" means a party who contracts to sell commodities,
construction services, or contractual services to the City.
D. "Construction Services" means the provision of services rendered by individuals
and firms to provide labor and materials for the construction, renovation, repair,
modification, or demolition of any public infrastructure, building, portion of a
building, earthwork, roads, utilities. park, parking lot, public works or other
improvement to real property, in a manner consistent with the construction
industry licensure and procurement laws of the State of Florida.
C—. E. "Contract' means a written agreement or purchase order between the City and
a vendor detailing the legal responsibilities of both parties in the offer and
acceptance of a specific act, usually for the procurement of goods, services. or
construction for money or other considerations.
I- F. "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.
l -G. "Emergency 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 are endangered, or
when it is necessary to maintain or restore vital services, to address non-
compliance with Florida Statutes or other regulatory laws and permits, or
situations which may cause a major adverse financial impact to the City should
immediate action not be taken.
H. "Government Contracts" includes contracts by 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, of which the City is extended the same
terms and conditions, including price, of the contract.
1. "Procurement' means purchasing, renting, leasing, or otherwise acquiring any
supplies. services, or construction, includes all functions that pertain to the
acquisition of such items, including description of requirements, selection and
solicitation of sources, preparation and award of contract, and all phases of
contract administration.
F-4. "Professional Services" means those services rendered by members of a
recognized profession, supplied by a licensed or certified person, the performance
of which is typically governed by State and Federal laws or professional practice
standards.
6-K. "Purchasing Manual" means 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.
4- "Gair-d-2 is A IfisaWasser-eard issued to designated empleyees
I -L. "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.
M. "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 Requisition.
J -N. "Purchasing Card" means a Visa or Mastercard issued to designated
employees to be used in compliance with this ghapter and the Cit _ s_�'urchasing
Card Policies and Procedures.
O. "Quotation" or "Quote" is an informal written or verbal price proposal for a
commodity or contractual service as stated by the vendor to be used to determine
the correct price for purchase.
P. "Request for Proposals" (RFP) refers to the formal solicitation of two or more
competitive sealed proposals. The RFP is used when the City cannot specifically
define the scope of work for which the contractual service, commodity. or
construction is required. The City is requesting, that a qualified respondent
propose a commodity, contractual service, construction. material, orequipment to
meet the specifications of the solicitation document. Each (RFP) requires a
selection committee to score the evaluation criteria. which includes price.
K�
1=_Q. "Request for Qualifications" (-``RFQJ-' refers to the formal solicitation of
qualification statements for the procurement of professional services and other
services requesting, qualifications of firms only,
and does not consider price in the ranking of firms. Each RF
requires a selection committee to score the evaluation criteria.
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
the central procurement officer of the City.
SECTION 21.3 Authority
Subject to compliance with this Chapter and the City's Purchasing Manual, the
Purchasing Agent or designee is hereby granted authority to purchase or contract
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numbering
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numbering
for all commodities and contractual services required by the City or other agencies
under cooperative purchasing agreements.
SECTION 21.4 Procurement Thresholds
Pursuant to Section 166.241(2). Florida Statutes. the adopted budget must regulate
expenditures of the municipality. and an officer of a municipal government may
not expend or contract for expenditures in any fiscal year except pursuant to the
adopted budget. 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. and construction services shall be
processed and approved in accordance with the following Fainifflum
standardsprocurementthresholds:
Level Value of
tieing
Authority to
Purehas2Dollar
Meeharisrn_
Approve
Threshold
Method of
Solicitation
Level One Individual Item and/or
One Verbal Quote
Department
Total Purchase less
City's Purchasing Card
Director or
than
should be used when
Designee
S 1-,099:00 5.000.00
possible.
Level Two Individual Item and/or
Two Verbal Written
Department
Total Purchase
Quotes
Director or
S 1,000.0055.000.00
Designee
and over and less than
(Requires City
X999 99$10.000.00
Commission
approval for
capital items if
amount exceeds
budgeted amount
or has been
changed from
original budget)
Level Three Individual Item and/or Three Written Quotes Purchasing
Total Purchase Agent
53;000:00$10.000.00
and over and less than
S 13;900:90$2 .000.00
Level Four Individual Item and/or
Total Purchase
S 1-5:000 0$25.000.00
and over and less than
X000:00$50.000.00
(Requires City
Commission
approval for
capital items if
amount exceeds
budgeted
amount or has
been changed
from original
budget)
F,.--....' `nvitatie City Manager
-Bi d- AY Request for (Requires award
Prop Three Written or rejection by
Quote s the City
Commission if
the purchase
exceedsthe
original
budgeted dollar
amount, or has
been changed
from original
budget)
Level Five Individual Item And/or Formal lavitation to City
Total Purchase Bid OF RegUeSt for Commission
$25,000:90$50,000.00 Prop Solicitation
and over
SECTION 21.5 Exceptions to Procurement Thresholds
When it is determined to be in the best interest of the City, the
standardsprocurement thresholds contained in Section 21.4 above may be waived
on a case-by-case basis. The authority to waive the frrinimum
standardsprocurement thresholds is as follows:
A. The Purchasing Agent may waive the minimum standards for any commodity
or contractual service which is less than S 15;9000$25,000.00 in value. In
such case, the Purchasing Agent shall attach a written explanation for waiver
to the purchase order.
B. The City Manager may waive the minimum standards for any commodity or
contractual service which is over S15,00t .00$25,000.00 and less than
$25? 00 AA$50,000.00 in value. In such case, the City Manager or designee
shall file a written explanation for waiver with the Purchasing Agent.
C. The City Commission may waive the minimum standards for any commodity
or contractual service in excess of $23,00�.W$50.000.00.
SECTION 21.6 Emergency Purchases
A. The Department Director may make Emergency Purchases in accordance to ------ Formatted: Indent: Left: 0.25^
the Authority to Approve provisions of the Procurement Thresholds set forth
in Section 21.4, ::it.". ,., ,,..ization of the City Man -e- and in accordance
with emergency purchasing procedures set forth in the Purchasing Manual. A
summary report of all emergency purchases shall be submitted to the City
Manager on a monthly basis.
B. Emergency purchases of X3,00 ):W 50 000.00 or more will require that the
City Manager or the Department Director 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.
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. The purchasing procedures, as established by the City
Manager above, are detailed as part of the Purchasing Manual.
B. The adoption of a Purchasing Policy shall be made by City Ordinance.
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 value less than $25,00 W0$50.000.00 do not
require City Commission approval. If a contract is required in connection with
such a purchase, then following compliance with Section 21.4, Minimum
StalllaF&Procurement Thresholds, the Mayor and City Clerk shall execute all
such contracts.
D. Violations: The following actions shall be considered Procurement Violations:
Purchases made that are not in compliance with the Procurement Thresholds
stated at Section 21.4. splitting a purchase or purchases to circumvent the
Procurement Thresholds provided herein; purchases made from merchants that
create a Conflict of Interest as this term is defined herein, (including but not
limited to authorizing purchases from a company where the employee or the
emploveCs relative has a financial interest); purchases from companies that
are not City vendors; inadequate record keeping relating to purchases; and/or
failure to properly document purchases.
EE. Conflict of Interest for City Officers and Employees engaged in the
selection, award. and administration of City contracts, including contracts
supported by a State or Federal award or funding. shall be governed by City
Charter Chapter C-56. Personal Financial Interest; Section 3.01. Policy of the
City; Section 4.01, Conflict of Interest, City Personnel Rules and Regulations;
and Part III. Chapter 112. Florida Statutes, the Code of Ethics for Public
Officers and Employees.
B:F_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 ung --procurement
privileges and other disciplinary actions, up to and including termination, as
detailed in the Personnel Rules and Regulations(PRR).
G. Federal Grants: ALL procurements by Federal Grant recipients and
subrecipients shall comply with the provisions of 2 C.F.R. Section 200.317 — 326.
All procurement transactions shall be conducted in a manner providing full and
open competition consistent with the standards of 2 C.F.R. Section 200.317 — 326.
In the event of a conflict between the City's Purchasing Policy, codified at
Chanter 21 of the City's Code of Ordinances, and Federal Code. the more
restrictive rule shall prevail.
SECTION 21.8 Exemptions
A. The following commodities and contractual services shall ROt be PFE)OUFL-d
subjeet to are excluded from the competitive requirements of
Section 21.4; however. the "Authority to Approve" provision of Section 21.4
is applicable to such procurements:
(1) APPRAISAL SERVICES
(2) CATERING/FOOD
(3) COLLECTIVE BARGAINING AGREEMENTS
(4) DUES
(5) EMPLOYEE SCREENING SERVICES INCLUDING MEDICAL
(6) ENTERTAINMENT
(7) FINANCIAL SERVICES
(8) FREELANCE SERVICES
(9) LAND PURCHASES
(10) LEGAL ADVERTISING
(11) LEGAL SERVICES
(12) POSTAGE/SHIPPING
(13) TEMPORARY EMPLOYMENT CONTRACTS
(14) TRAVEL/TRAINING
(15) UTILITIES
(16) VETERINARIAN SERVICES
B. Construction Management (to the extent authorized by Section 255.103,
Florida Statutes), Pfatessienal architectural, engineering, landscape
architectural, or surveying and mapping services shall be procured in
accordance with the requirements of Florida's Consultant's Competitive
Negotiation Act (CCNA) as set forth in Section 287.055, Florida Statutes, and
shall net be subjeet to the requirements of this Chapte are excluded from the
competitive requirements of Section 21.4. Seetien 287.0-55 is .hoFt titled the
<:G..nsultants' Competitive Negotiation A et" /GGN A \
C. Professional Auditing Services shall be procured in accordance with the
requirements of Section 218.391, Florida Statutes, and are excluded from the
competitive requirements of Section 21.
Section 218.391 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 City of Ocoee,
Florida, and are excluded from the competitive requirements of Section
21 4-sh ll met do ..ubjeet to the _ ent,. of this Chapte Chapter 4 is titled
"Design-Build Contracts".
E. Group Insurance for Employees and Public Officers shall be procured in
accordance with the requirements of Section 112.08, Florida Statutes, and are
excluded from the competitive requirements of Section 21.4shalll fet be
Chapter 112.08 is short-titled
"Group insurance for public officers, employees, and certain volunteers;
physical examinations."
SECTION 21.9 Bid Protest Procedures
All Bid Protests shall be submitted to the Purchasing Agent in the following manner:
1. A Bidder shall file a written bid protest under this Article or be barred any relief:
oral protests shall not be acknowledged.
2. A bid protest shall be limited to the following grounds: (a) issues arising from the
procurement provisions of the Project Manual, its addenda, and other bidding
documents; and/or (b) applicable federal, state. or local law. No bid protest may be
based upon questions concerning the design documents (drawings and specifications).
The Bidder shall clarify all questions concerning the design documents of the project
prior to submitting its bid.
3. The content of the bid protest shall fully state the factual and legal grounds for the
protest and the legal basis for the relief requested.
4. The bid protest shall be filed with the Purchasing Agent not later than five (5)
calendar days after the posting of the notice of intent to award or recommendation of
Formatted: Indent: Left: 0.56"
award by staff, whichever is earlier.
5. The Purchasing Agent, on behalf of the City, shall make a determination of the ------ Formatted: Indent: Left: 0.69^
merits of the protest not later than five (5) business days after receipt of the protest. If
the City denies the protest, the City may proceed with award of the contract unless
enjoined by order of a court of competent jurisdiction.
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 -lettered 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 -lettered 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.
SECTION FIVE. Effective Date. This Ordinance shall become effective upon passage and
adoption.
PASSED AND ADOPTED this day of , 201685.
APPROVED:
ATTEST: CITY OF OCOEE, FLORIDA
Bet".beFFgMelanie Sibbitt, City Clerk
Mayor
FOR USE AND RELIANCE ONLY
BY THE CITY OF OCOEE,
APPROVED AS TO FORM AND
LEGALITY, THIS day
of ,201605
Rusty Johnson,
ADVERTISED , 201605
READ FIRST TIME
,201605
READ SECOND TIME AND ADOPTED
,201605
UNDER AGENDA ITEM NO.
HUFFIELD LOWMAN & WILSON P.A._ ___
BY
Scott A. Cookson. City AttornevCITY A TTOR-1 KY
10
Formatted: Font: Bold
Procurement Thresholds 2016
One
Verbal/Written
Quote
Two Verbal/Written
Quotes
Three
Verbal/Written
Quotes
Three Written
Quotes
Formal
Solicitation
Formal Solicitation
10,000- <$25,000
Ocoee Proposed
Up to $5,000
$5,000 - <$10,000
(written quotes)
$25,000-<$50,000
n/a
$50,000
City Commission
Ocoee Current
Up to $1,000
$1000-<$5,000
n/a
$5,000-<$15,000
$15,000-<$25,000
$25,000
Annro
_...._..:
City Commission
$2,500.01 to
$9,999.99
$10,000-
$50,000 to
Winter Park
n/a
up to $2,500
(2 written quotes)
$49,999.99
$74,999.99
over $75,000
Aparoval
Purchasing Mar
Citv Manager
City Commission
Oviedo
n/a
n/a
$1,000-$10,000
$10,000 - $35,000
$35,000
$35,000
Purchasing &
Purchasing &
up to $49,999
>$50,000
Appro-,1l
City Mgr
City M. r
City Manager
Cifv Council
Altamonte Springs
under $1,000
n/a
$1,000-$7,500
$7,500-$25,000
n/a
$25,000 and over
Gay Nigr
Casselberry
up to $999.00
$1,000 - $1,999
n/a
$2,000 - $14,1000
n/a
$15,000 and over
Purchasing
Purchasing
Purchasing, City Mgr. &
Approval
Director
Administrator
Administrator
City Commission
Kissimmee
up to $1,000
n/a
$1,000410,000
$10,000 - $25,000
$25,000.00
over $50,000
City Manager
City Commission
Procurement Thresholds 2016
One
Verbal/Written
Quote
Two Verbal/Written
Quotes
Three
Verbal/Written
Quotes
Three Written
Quotes
Formal
Solicitation
Formal Solicitation
$10,000-< 25,000
Ocoee Proposed
Up to $5,000
$5,000 - <$10,000
(written quotes)
$25,000 - <$50,000
n/a
$50,000
ty Manage
ity Commission
Ocoee Current
Up to $1,000
$1.000-<$5,000
n/a
$5,000-<15,000
$15,000-<$25,000
$25,000
City Commission
$.00 - $2,500 no
Winter Garden
quote required
n/a
$2,501 - $10,000
$10,001 - $24,999
$25,000-$50,000
over $50,000
City Mgr
w/Notification to
Approval
City ManagE:
City Commission
City Commission
up to $1,000 no
Apopka
quote req
n/a
$1,001- $2,500
$2,500 - $25,000
n/a
over $25,000
Director &
Approval
Director
Director
City Council
up to $1,000
quote not
<$75,000
Maitland
required
n/a
$1,000-< $25,000
more than $25,000
(3 written quotes)
over $75,000
Approval
City Manager
City Manager
City Council
City Council
less than $1,000
no quote
$1,000-$4,999
Clermont
required
n/a
(3 written quotes)
$5,000-$9,999
$10,000-$49,999
over $50,000
Purci,..,.,;
Annrnval
Supervisor
!7epartment Director
Director
City Manager
City Council
Procurement Thresholds 2016
One
Verbal/Written
Quote
Two Verbal/Written
Quotes
Three
Verbal/Written
Quotes
Three Written
Quotes
Formal
Solicitation
Formal Solicitation
10,000-< 25,000
Ocoee Proposed
Up to $5,000
$5,000 - <$10,000
(written quotes)
$25,000-<$50,000
n/a
$50,000
Approval
Purchasing Agent
City Manager
City Commission
Ocoee Current
Up to $1,000
$1,000 - <$5,000
n/a
$5,000-< $15,000
$15,000-<$25,000
$25,000
ruicirasin(
vity Manager
City Commission
$5,000-$10,000
$50,001-$75,000
Orlando
$1,000-$5000
(2 written quotes)
$10,000-$20,000
$20,001 -$50,000
up to $100,000
$100,001
-hief Procurement and
Approval
Purchasing Dept
Purchasing Dept
Purchasing Dept
Chief Procurement
City Council
Eustis
up to $2,000
n/a
$2,000-10,000
$10,000450,000
n/a
over $50,000
Approvai
Longwood
less than $500
n/a
$501-$5,000
$5,001-$35,000
n/a
>$35,000
I;ity Commi
St Cloud
n/a
n/a
$3,000-$7,500
$7,501 -$25,000
$25,000-$50,000
$50,000
Approval
Director
�urchasing Dept
City Manager
Citv Council
Sanford
up to $2,499.99
n/a
$2,500-$9,999.99
$10,000-$24,999.99
$25,000-$49,999.99
over $50,000
,Uoteb iol ionila
Solicitation
'urchasing Mgr &
"Urchasing Mgr 8,
Dire.
City Mgr
City Mgr
;ity Commission
ORDINANCE NO.2016-
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; AMENDING
AND RESTATING AUTHORITY; AMENDING THE PROCUREMENT
THRESHOLDS; AMENDING AND RESTATING EXCEPTIONS TO
PROCUREMENT THRESHOLDS; AMENDING AND RESTATING THE
PROVISION OF EMERGENCY PURCHASES; AMENDING AND
RESTATING PURCHASING PROCEDURES AND PRACTICES;
AMENDING AND RESTATING EXEMPTIONS; ESTABLISHING BID
PROTEST PROCEDURES; PROVIDING FOR SEVERABILITY;
PROVIDING FOR CODIFICATION; PROVIDING AN EFFECTIVE
DATE.
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 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.
SECTION TWO. Amended and Restated City Purchasing Policy. 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. "Invitation to Bid" (ITB) refers to the formal solicitation of two or more
competitive sealed bids. The ITB is used when the City is capable of specifically
defining the scope of work for which a commodity, contractual service, or
construction service is required or when the City is capable of establishing precise
specifications defining the actual commodity, group of commodities, material, or
equipment required.
C. "Contractor" or "Vendor" means a party who contracts to sell commodities,
construction services, or contractual services to the City.
D. "Construction Services" means the provision of services rendered by individuals
and firms to provide labor and materials for the construction, renovation, repair,
modification, or demolition of any public infrastructure, building, portion of a
building, earthwork, roads, utilities, park, parking lot, public works or other
improvement to real property, in a manner consistent with the construction
industry licensure and procurement laws of the State of Florida.
E. "Contract" means a written agreement or purchase order between the City and a
vendor detailing the legal responsibilities of both parties in the offer and
acceptance of a specific act, usually for the procurement of goods, services, or
construction for money or other considerations.
F. "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.
G. "Emergency 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 are endangered, or
when it is necessary to maintain or restore vital services, to address non-
compliance with Florida Statutes or other regulatory laws and permits, or
situations which may cause a major adverse financial impact to the City should
immediate action not be taken.
H. "Government Contracts" includes contracts by 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, of which the City is extended the same
terms and conditions, including price, of the contract.
I. "Procurement" means purchasing, renting, leasing, or otherwise acquiring any
supplies, services, or construction; includes all functions that pertain to the
acquisition of such items, including description of requirements, selection and
solicitation of sources, preparation and award of contract, and all phases of
contract administration.
J. "Professional Services" means those services rendered by members of a
recognized profession, supplied by a licensed or certified person, the performance
of which is typically governed by State and Federal laws or professional practice
standards.
K. "Purchasing Manual" means 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.
2
L. "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.
M. "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 Requisition.
N. "Purchasing Card" means a Visa or Mastercard issued to designated employees
to be used in compliance with this Chapter and the City's Purchasing Card
Policies and Procedures.
O. "Quotation" or "Quote" is an informal written or verbal price proposal for a
commodity or contractual service as stated by the vendor to be used to determine
the correct price for purchase.
P. "Request for Proposals" (RFP) refers to the formal solicitation of two or more
competitive sealed proposals. The RFP is used when the City cannot specifically
define the scope of work for which the contractual service, commodity, or
construction is required. The City is requesting that a qualified respondent
propose a commodity, contractual service, construction, material, or equipment to
meet the specifications of the solicitation document. Each RFP requires a
selection committee to score the evaluation criteria, which includes price.
Q. "Request for Qualifications" (RFQ) refers to the formal solicitation of
qualification statements for the procurement of professional services and other
services requesting qualifications of firms only, and does not consider price in the
ranking of firms. Each RFQ requires a selection committee to score the evaluation
criteria.
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
the central procurement officer of the City.
SECTION 21.3 Authority
Subject to compliance with this Chapter and the City's Purchasing Manual, 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.
SECTION 21.4 Procurement Thresholds
Pursuant to Section 166.241(2), Florida Statutes, the adopted budget must regulate
expenditures of the municipality, and an officer of a municipal government may
not expend or contract for expenditures in any fiscal year except pursuant to the
3
adopted budget. 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, contractual services, and construction services shall be processed
and approved in accordance with the following procurement thresholds:
Level Dollar Threshold
Method of
Authority to
Agent
Solicitation
Approve
Level One Individual Item and/or
One Verbal Quote,
Department
Total Purchase less
City's Purchasing Card
Director or
than $5,000.00
should be used when
Designee
budgeted
possible.
amount or has
Level Two Individual Item and/or
Two Written Quotes
Department
Total Purchase
Director or
$5,000.00 and over
Designee
and less than
(Requires City
$10,000.00
Commission
approval for
capital items if
amount exceeds
budgeted amount
or has been
changed from
original budget)
Level Three Individual Item and/or Three Written Quotes
Purchasing
Total Purchase
Agent
$10,000.00 and over
(Requires City
and less than
Commission
$25,000.00
approval for
capital items if
amount exceeds
budgeted
amount or has
been changed
from original
budget)
4
0
Level Four Individual Item and/or Three Written Quotes
City Manager
Total Purchase
(Requires award
$25,000.00 and over
or rejection by
and less than
the City
$50,000.00
Commission if
the purchase
exceeds the
original
budgeted dollar
amount, or has
been changed
from original
budget)
Level Five Individual Item And/or Formal Solicitation
City
Total Purchase
Commission
$50,000.00 and over
SECTION 21.5 Exceptions to Procurement Thresholds
When it is determined to be in the best interest of the City, the procurement
thresholds contained in Section 21.4 above may be waived on a case-by-case
basis. The authority to waive the procurement thresholds is as follows:
A. The Purchasing Agent may waive the minimum standards for any commodity
or contractual service which is less than $25,000.00 in value. In such case, the
Purchasing Agent shall attach a written explanation for waiver to the purchase
order.
B. The City Manager may waive the minimum standards for any commodity or
contractual service which is over $25,000.00 and less than $50,000.00 in
value. In such case, the City Manager or designee shall file a written
explanation for waiver with the Purchasing Agent.
C. The City Commission may waive the minimum standards for any commodity
or contractual service in excess of $50,000.00.
SECTION 21.6 Emergency Purchases
The Department Director may make Emergency Purchases in accordance to
the Authority to Approve provisions of the Procurement Thresholds set forth
in Section 21.4, and in accordance with emergency purchasing procedures set
forth in the Purchasing Manual. A summary report of all emergency purchases
shall be submitted to the City Manager on a monthly basis.
B. Emergency purchases of $50,000.00 or more will require that the City
Manager or the Department Director inform the City Commission regarding
5
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.
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. The purchasing procedures, as established by the City
Manager above, are detailed as part of the Purchasing Manual.
B. The adoption of a Purchasing Policy shall be made by City Ordinance.
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 value less than $50,000.00 do not require City
Commission approval. If a contract is required in connection with such a
purchase, then following compliance with Section 21.4, Procurement
Thresholds, the Mayor and City Clerk shall execute all such contracts.
D. Violations: The following actions shall be considered Procurement Violations:
Purchases made that are not in compliance with the Procurement Thresholds
stated at Section 21.4; splitting a purchase or purchases to circumvent the
Procurement Thresholds provided herein; purchases made from merchants that
create a Conflict of Interest as this term is defined herein, (including but not
limited to authorizing purchases from a company where the employee or the
employee's relative has a financial interest); purchases from companies that
are not City vendors; inadequate record keeping relating to purchases; and/or
failure to properly document purchases.
E. Conflict of Interest for City Officers and Employees engaged in the selection,
award, and administration of City contracts, including contracts supported by a
State or Federal award or funding, shall be governed by City Charter Chapter
C-56, Personal Financial Interest; Section 3.01, Policy of the City; Section
4.01, Conflict of Interest, City Personnel Rules and Regulations; and Part III,
Chapter 112, Florida Statutes, the Code of Ethics for Public Officers and
Employees.
F. 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 procurement privileges and other
disciplinary actions, up to and including termination, as detailed in the
Personnel Rules and Regulations.
G
G. Federal Grants: All procurements by Federal Grant recipients and sub -
recipients shall comply with the provisions of 2 C.F.R. Section 200.317 — 326. All
procurement transactions shall be conducted in a manner providing full and open
competition consistent with the standards of 2 C.F.R. Section 200.317 — 326.
In the event of a conflict between the City's Purchasing Policy, codified at
Chapter 21 of the City's Code of Ordinances, and Federal Code, the more
restrictive rule shall prevail.
SECTION 21.8 Exemptions
A. The following commodities and contractual services are excluded from the
competitive requirements of Section 21.4; however, the "Authority to
Approve" provision of Section 21.4 is applicable to such procurements:
(1) APPRAISAL SERVICES
(2) CATERING/FOOD
(3) COLLECTIVE BARGAINING AGREEMENTS
(4) DUES
(5) EMPLOYEE SCREENING SERVICES INCLUDING MEDICAL
(6) ENTERTAINMENT
(7) FINANCIAL SERVICES
(8) FREELANCE SERVICES
(9) LAND PURCHASES
(10) LEGAL ADVERTISING
(11) LEGAL SERVICES
(12) POSTAGE/SHIPPING
(13) TEMPORARY EMPLOYMENT CONTRACTS
(14) TRAVEL/TRAINING
(15) UTILITIES
(16) VETERINARIAN SERVICES
B. Construction Management (to the extent authorized by Section 255.103,
Florida Statutes), architectural, engineering, landscape architectural, or
surveying and mapping services shall be procured in accordance with the
requirements of Florida's Consultant's Competitive Negotiation Act (CCNA)
as set forth in Section 287.055, Florida Statutes, and are excluded from the
competitive requirements of Section 21.4.
C. Professional Auditing Services shall be procured in accordance with the
requirements of Section 218.391, Florida Statutes, and are excluded from the
competitive requirements of Section 21.4. Section 218.391 is short -titled
"Auditor Selection Procedures".
7
D. Professional Design -Build Construction Services shall be procured in
accordance with Chapter 4 of the Code of Ordinances of the City of Ocoee,
Florida, and are excluded from the competitive requirements of Section 21.4.
Chapter 4 is titled "Design -Build Contracts".
E. Group Insurance for Employees and Public Officers shall be procured in
accordance with the requirements of Section 112.08, Florida Statutes, and are
excluded from the competitive requirements of Section 21.4. Chapter 112.08
is short -titled "Group insurance for public officers, employees, and certain
volunteers; physical examinations."
SECTION 21.9 Bid Protest Procedures
All Bid Protests shall be submitted to the Purchasing Agent in the following manner:
1. A Bidder shall file a written bid protest under this Article or be barred any relief;
oral protests shall not be acknowledged.
2. A bid protest shall be limited to the following grounds: (a) issues arising from the
procurement provisions of the Project Manual, its addenda, and other bidding
documents; and/or (b) applicable federal, state, or local law. No bid protest may be
based upon questions concerning the design documents (drawings and specifications).
The Bidder shall clarify all questions concerning the design documents of the project
prior to submitting its bid.
3. The content of the bid protest shall fully state the factual and legal grounds for the
protest and the legal basis for the relief requested.
4. The bid protest shall be filed with the Purchasing Agent not later than five (5)
calendar days after the posting of the notice of intent to award or recommendation of
award by staff, whichever is earlier.
5. The Purchasing Agent, on behalf of the City, shall make a determination of the
merits of the protest not later than five (5) business days after receipt of the protest. If
the City denies the protest, the City may proceed with award of the contract unless
enjoined by order of a court of competent jurisdiction.
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.
8
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 -lettered 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 -lettered 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.
SECTION FIVE. Effective Date. This Ordinance shall become effective upon passage and
adoption.
PASSED AND ADOPTED this
ATTEST:
Melanie Sibbitt, City Clerk
FOR USE AND RELIANCE ONLY
BY THE CITY OF OCOEE,
APPROVED AS TO FORM AND
LEGALITY, THIS day
of , 2016
day of 32016.
SHUFFIELD, LOWMAN & WILSON, P.A.
M.
Scott A. Cookson, City Attorney
APPROVED:
CITY OF OCOEE, FLORIDA
Rusty Johnson, Mayor
ADVERTISED , 2016
READ FIRST TIME
, 2016
READ SECOND TIME AND ADOPTED
, 2016
UNDER AGENDA ITEM NO.
6
Procurement Thresholds 2016
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XV,
Procurement Thresholds 2016
Procurement Thresholds 2016
COPY OF ADVERTISEMENT
Date Published and Media Name
Thursday, October 20,2016 The West Orange Times 5C
Advertisement or Article •
FIRST INSERTION
CITY OF OCOEE
NOTICE OF PUBLIC HEARING
FOR AN AMENDMENT TO THE
CODE OF ORDINANCES
NOTICE IS HEREBY GIVEN,that on TUESDAY,NOVEMBER 1,2016 at 7:15
P.M.or as soon thereafter as practical,the CITY OF OCOEE CITY COMMIS-
SION will hold a PUBLIC HEARING at the City of Ocoee Commission Chambers,
150 North Lakeshore Drive,Ocoee,Florida,to consider the adoption of the follow-
ing Ordinance concerning the Purchasing Policy: •
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; AMEND-
ING AND RESTATING AUTHORITY;AMENDING THE PROCURE-
MENT THRESHOLDS;AMENDING AND RESTATING EXCEPTIONS
TO PROCUREMENT THRESHOLDS; AMENDING AND RESTAT-
ING THE PROVISION OF EMERGENCY PURCHASES;AMENDING
AND RESTATING PURCHASING PROCEDURES AND PRACTICES;
AMENDING AND RESTATING EXEMPTIONS;ESTABLISHING BID
PROTEST PROCEDURES; PROVIDING FOR SEVERABILITY; PRO-
VIDING FOR CODIFICATION;PROVIDING AN EFFECTIVE DATE.
Interested parties may appear at the public hearing and be heard with respect to the
proposed actions.
The City Commission may continue the public hearings to other dates and times,
as it deems necessary. Any interested party shall be advised of the dates,times,and
places of any continuation of these or continued public hearings.Any continuances
shall be announced during these hearings and no further notices regarding these
matters will be published.
You are advised that any person who desires to appeal any decision made at the
public bearings will need a record of the proceedings and for this purpose may need
to ensure that a verbatim record of the proceedings is made which includes the tes-
timony and evidence upon which the appeal is based.
Persons with disabilities needing assistance to participate in any of these proceed-
ings should contact the City Clerk's Office 48 hours in advance of the meeting at
407-905-3105.
October 20,2016 16-04948W