Item 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
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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
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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
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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.
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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
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-(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.
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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
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