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Home My WebLink AboutO-96-10ORDINANCE NO. 0-96-10 AN ORDINANCE OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, ESTABLISHING AND PROVIDING FOR A CENTRALIZED PROCUREMENT SYSTEM FOR THE ACQUISITION OF GOODS AND SERVICES FOR THE CiTY OF SEBASTIAN; ESTABLISHING A PURCHASING AND BIDDING POLICY; PROVIDING FOR SEALED COMPETITIVE BIDDING ON PROCUREMENT IN EXCESS OF $5,000.00; PROVIDING FOR OTHER METHODS OF COMPETITIVE BIDDING ON PURCHASES UNDER $5,000.00; PROVIDING EXCEPTIONS; PROVIDING FOR THE LIMITS AND DELEGATION OF PURCHASING AUTHORITY; PROVIDING FOR THE ESTABLISHMENT OF ADMINISTRATIVE GUIDELINES FOR PURCHASING PROCEDURES KNOWN AS THE "PURCHASING MANUAL"; PROVIDING FOR THE REPEAL OF CERTAIN ORDINANCES, RESOLUTIONS; PROVIDING FOR SEVERABILITY; PROVIDING FOR THE INCLUSION OF THIS ORDINANCE IN CITY OF SEBASTIAN CODE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City Council of the City of. Sebastian desires to establish and provide for a Centralized Procurement System for the acquisition of goods and services. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SEBASTIAN, THAT: SECTION 1. POLICY STATEMENT: (a) process. Whenever practical, public procurement will ascribe to a competitive bid Ethical requirements coupled with the necessity to maximize the City's use of public funds dictate the use of a competitive bid system; to that end this Ordinance is dedicated. SECTION 2. PURPOSE: (a) City policy and Florida Statute Chapter 287 requires that fair and open competition be the basis of all public procurement. The creation of competition increases the probability of the City receiving an accurate and fair price while reducing the appearance and oppommity for favoritism thus inspiring public confidence; to that end this Ordinance is dedicated. (b) To establish a centralized procurement system under the management supervision of the City Manager applicable, to the Assistant to the who may delegate such authority as deemed City Manager/Purchasing Agent, or others, to facilitate the day to day operations of the Purchasing System. SECTION 3. Sec. 2-91. CENTRAL PROCUREMENT SYSTEM: There is hereby established a Central Procurement System which shall 2 function in the City Manager's Office through the Assistant to the City Manager/Purchasing Agent, and deemed appropriate and budgeted by the City Manager and approved by City Council. All procurements for goods and services for the City, except those goods and services excluded from the application of this Ordinance, shall be effected through the Central Procurement system. EXEMPTIONS: This Ordinance shall not apply to: 1. Purchases between the Council and non-profit organizations, other governments, or other public entities, and intragovemment services. 2. Purchases of dues and memberships in trade or professional books (maps, organizations, subscriptions for periodicals, pamphlets and similar material), advertising works of art for public display, medically related professional services, employee benefit related purchases, room or board for clients or employees, water, sewer, electrical, cable television, telephone or other utility services, postage for meter machines, personnel services, shows, displays, or cultural events sponsored by the City. 3. Purchases made from petty cash accounts. 4. Contracts for attorney services and other legal services shall be secured by negotiation by the City Attorney as approved by the City Council. 5. Appraisers and expert witnesses for condemnation matters and similar services shall be negotiated as directed by City Council. Purchase of real property. 7. Procurement of goods and services as part of the process of apprehending persons suspected of violating the law and towing services. 8. Purchase or procurement of other personal or professional services unless Florida Statute requires purchase or procurement in accordance with a procedure established by Statute. COOPERATIVE PURCHASING: 1. Joint Bid: The Purchasing Agent shall have the authority, subject to approval of the City Manager, to cooperate with other local governments or other public entities, in the development and use of mutually cooperative procurement contracts or master 4 agreements. Such contracts or agreements, irrespective of the sponsoring entity, as they pertain to the City, shall be awarded through procedures substantially equivalent to the requirements of this Ordinance and therefore shall not require Council approval if under $5,000. All purchases over $5,000.00 shall require Council approval. Piggyback: The Purchasing Agent shall have the authority, subject to approval of the City Manager, to utilize contracts or master agreements of State, Federal or other local governments or other public entities to procure goods and services, if the vending contractor extends the terms and conditions of the contract or agreement to the City of Sebastian and the contract or agreement has been awarded through procedures substantially equivalent to the requirements of this Ordinance and therefore shall not require Council approval if under $5,000.00. All purchases over $5,000.00 shall require Council approval. Offers Lower: The Purchasing Agem shall have the authority, subject to approval of the City Manager, to procure goods and 5 services, if the purchase is with a person, fa-m, organization, or corporation whose offer to sell to the City is at sale price for that commodity equal to or lower than the existing Piggyback price for the same or equal commodity being sought and therefore shall not require Council approval if under $5,000.00. All purchases over $5,000.00 shall require Council approval. SOLE SOURCE: A contract may be awarded for goods or services without competitive bids when the City Manager or his designee determines in writing that there is only one source for the required item. Approval shall be in accordance with the dollar threshold established by this Ordinance. EMERGENCY PURCHASE: Where City Council or City Manager finds it to be in the best interest of the City, they may declare the existence of an emergency procurement condition and based thereon, the Purchasing Agent may suspend any or all provisions of this Ordinance and authorize an emergency purchase.The City Manager shall have approval authority up to $20,000.00. All emergency purchases over $5000.00 shall be reported to council as soon as practical. 6 As used in this Section, the term "emergency" means a sudden \lllexpected turn of events that causes: 1. An inllllediate danger to the public health or safety; 2. An inllllediate danger ofloss of public or private property; 3. An interruption in the delivery of an essential governmental seTVlce; or 4. An interruption in the normal function and operation of any City department that would result in a work stoppage or other substantial monetary loss. F. AUTHORITY OF PURCHASING AGENT: Unless otherwise provided for in this Ordinance, the procurement of all goods and services shall be \lllder the supervision of the City Manager as designated to the Purchasing Agent. The Purchasing Agent shall: 1. Procure or supervise the procurement of all goods and services where authorized by the City Manager except as otherwise provided for herein. 2. Coordinate the requirements of various departments and invite widespread competition in the procurement process in the 7 Ho Jo 10. Perform other related duties as may be assigned by the City Manager. DELEGATION OF AUTHORITY: Subject to the approval of the City Manager, the Purchasing Agent may delegate his authority in whole or in part to designees within the City. PURCHASING MANUAL: The City Manager shall adopt and amend as circumstances require, a City of ("Purchasing Manual") which shall Sebastian Purchasing Manual govern the City policies and procedures in procuring goods and services. 1. The guidelines for the procurement of goods and services contained in the Purchasing Manual shall be consistent with the procedures established under this Ordinance. PROHIBITION AGAINST SUBDIVISION: No contract or purchase shall be purposely subdivided to circumvent any requirements of this Ordinance. NOT TO EXCEED BUDGET APPROPRIATIONS: No purchase or contract shall be made in excess of the amounts allocated fi.om the general fund for the general classification of expenditures in the budget for the 9 o o fulfillment of those requirements. Acquire at the best possible price, consistent with the specified quality and suitability, the goods and services necessary for proper and efficient operations of the City of Sebastian. Maintain centralized focal point where all purchases, except as exempted herein, will be effected through, including the pertinent data files of the purchasing activities of the City. Ensure fair, equitable, and uniform treatment of all person (s) who deal with the procurement system of the City. Ensure that specifications are developed to permit competition among businesses whenever practicable. Sign duly issued Purchase Orders. May question the quality, quantity and kind of items asked for and may conduct adjustment negotiations in order that the best interest of the City may be served. Consult with the City Attorney and establish contract clauses appropriate to meet standard needs and special needs as it pertains to contracts for supplies, services and construction. 8 then current budget year. No expense of a special fund shall exceed the mount of money available to that fund. EVALUATION CRITERIA: Except as otherwise exempted in this Ordinance, all purchases and or contracts shall be awarded based on the following criteria but not limited to: 1. The lowest responsive and responsible vendor/bidder 2. The lowest price 3. The ability, capacity and skill to perform or provide within the time specifications and without delays 4. The character, integrity, reputation, experience and efficiency of the vendor/bidder 5. Previous experience with the vendor/bidder 6. The financial strength of the vendor/bidder 7. The suitability of the goods or services being offered; making sure that the life expectancy is taken into consideration. 8. The availability of parts, repairs and service and warranty 9. Tie bids will be decided by drawing lots. Local vendors shall be chosen for award, under "a tie" situation, only if all other things I0 Mo are equal. COMPETITIVE BID CRITERIA: Any request for the purchase of materials, equipment and supplies unless otherwise exempt under this Ordinance is subject to competitive bid procedures as follows: 1. Up to $250 - Two or more verbal quotes where practical - No Purchase Order required. Department Heads authorized to purchase goods and services as directed by the City Manager. 2. $251 - $2,000 - Three or more verbal quotes - Purchase Order is required. 3. $2001- $5,000 - Three or more written quotes. Purchase Order is required. 4. Over $5,000 - Formal written sealed bids - Purchase Order is required. APPROVAL OF SERVICE AND PURCHASE AGREEMENTS: Except for emergency purchases provided for herein the following Agreements shall be submitted to City Council for approval: Lease Agreements Lease Purchase Agreements - In Excess of $5,000 11 No Funding Agreements Construction Contracts - In Excess of $5,000 Professional Service Contracts - In Excess of $5,000 Grant Agreements The City Manager or his designee is authorized to execute all agreements and contracts. FORMAL LEASE AGREEMENTS & CONTRACTS: All Lease Agreements, or formal contracts shall be approved as to form and legal sufficiency by the City Attorney. WAIVER OF BIDDING PROCEDURES: City Council may waive or modify the bidding procedure for good cause. PROFESSIONAL SERVICES: Professional services of architects, engineers or registered land surveyors and mapping shall be obtained following the procedures specified in Section 287.055 F.S. FORBIDDEN USE: Procurement System shall not be utilized by City employees, agents or elected officials for personal use. DOLLAR THRESHOLD: The following shall be the approving 12 authority for all purchases except as otherwise stated in this Ordinance. $ Up to $ 1,000.00 - The Purchasing Agent shall be the approving authority. $ 1,001.00 - $ 5,000.00 - The City Manager or designee shall be the approving authority. Over - $5,000.00 - The City Council shall be the approving authority. PUBLIC WORKS: Public Works contracts, as defined in Section 180.24 F.S. shall be bid in accordance with that Section. EXTERNAL GRANTS: The City of Sebastian shall take advantage of funds made available to municipalities (grants) by governments, govemment agencies (state, federal) and other sources, for implementing projects for the public good. The City Manager or designee shall administer all phases of the grant. Note: In any situation where compliance with this Code will place the City in conflict with the State or Federal law or the terms of any grant, the City shall comply with such Federal or State law, grant requirements, or authorized regulations which are mandatory and which are either not reflected in this code or are contrary to provisions of this Code. 13 SECTION 4. A. Sec. 2.92 COMPETITIVE SEALED BID (OVER $5,000.00): Cost in excess of $5,000.00 shall be upon invitation for bids unless otherwise exempted by this Ordinance. A notice of Invitation to Bid shall be published at least once in a newspaper of general circulation in :the:'ci~' as follows: 1. Construction Projects projected to cost more than $200,000 shall be advertised at. least twenty-one (21) calendar days excluding the day of the ad, prior to published bid opening and at least 30 calendar days if more than $500,000 and in either case at least five (5) calendar days prior to any scheduled prebid conference. 2. All other advertising shall be at least fourteen (14) calendar days excluding the day of the ad prior to established bid opening. The newspaper notice of the invitation to bid shall include a brief general description of the goods or services, a statement informing bidders of Section 287.133 F.S. (A) Public Entity Crime, and location where bid documents and specifications are available, and specify date, time and location at which bids will be opened. 14 CONTRACT RENEWAL: The City Manager or his designee shall have the authority, subject to approval of the City Council, to renew any contract which was awarded through the competitive bid process and approved by City Council, providing said contract contains a provision for renewal and the Contractor/Vendor has performed and lived up to the terms and conditions of said contract, and is worthy of renewal. The renewal contract shall be consistent in every way with the terms and conditions of the original contract and the City reserves all rights contained therein. CORRECTION, CANCELLATION & WITHDRAWAL: 1. Bidders may be asked to provide further information after bid opening to determine the responsibility of vendor. 2. Waiver of Technicality; Information shall not be considered after the bid opening if it has been specifically requested to be provided with the bid and becomes a matter of responsiveness. The bid shall be considered responsive only if it substantially conforms to the requirements of the Invitation to Bid. The City Council may waive any informality, technicality or irregularity on any bid. A minor or 15 o nonsubstantive lack of conformity may be considered a technicality or irregularity, which may be waived by City Council. Mathematical errors; Errors in extension mathematical calculations may be corrected. of unit prices or in In all cases of errors in mathematical computation, the unit price shall not be changed. Cancellation or postponement; Any time prior to the bid opening date and time, the Purchasing Agent may cancel or postpone the bid opening or cancel the Invitation for Bid in its entirety. Withdrawal; Prior to any published bid opening date and time, a bidder may withdraw his or her bid in writing. A fax is permitted for this purpose, provided that a confirming telecon is made. Amendments; Prior to any published bid opening date and time, a bidder may amend his or her bid provided that it is in writing, in a sealed envelope, and identified. Addenda and Change Orders; The City of Sebastian recognizes that changes in the scope of work or quantities necessary, especially in capital improvement projects, may occur in order to fulfill a need or complete a project. In recognition of the above, 16 the City hereby establishes a provision which shall accommodate such changes as follows: a. As used herein the definition of Addenda - Written or graphic instruments issued prior to the Bid Opening which clarify, correct or change the Bidding Documents or the Contract Documents. b. As used herein the definition of Change Order - A document which is signed by Contractor/Vendor and the City and authorizes an addition, deletion, or revision in the work, or an adjustment in the Contract Price or the Contract Time, issued on or after the effective date of the Agreement. c. The Purchasing Agent in conjunction with the Department Head involved shall prepare and process all Addenda and Change Orders. The City shall be solely responsible for issuing Addenda prior to the Bid Opening. Should the City issue an Addendum within five (5) working days of the advertised Bid Opening date, and the Addendum contain provisions which will materially and substantially alter the 17 prospective Contract/Vendor bid preparation time, the City shall provide a five (5) working day extension of the Bid Opening. d. Either the Contractor/Vendor or the City can initiate a Change Order. However, the Change Order must be mutually agreed to by the Contract/Vendor and City. The City Manager may approve changes up to 15% of the total Contract price. Changes in excess of 15% of the total contract price or any change in excess of $5,000 must have the prior approval of the City Council. e. Once the Change Order has been approved, properly recorded, and fully auditable, the Purchasing Agent shall notify the Contractor/Vendor of approval. A signed orignial Change Order shall be retained by the City and also sent to the Contract/Vendor. BID OPENING: Bids must be received at the place, date and time stipulated on the invitation, to be considered for award. Bids shall therein be opened publicly in the presence of the Purchasing Agent or designee 18 and other interested parties. The amount of each bid, together with the name of each bidder shall be read aloud and tabulated and open to public inspection per Chapter 119 F.S. AWARD OF BIDS OVER $5~000.00: 1. Contracts resulting from the competitive sealed bid process shall be awarded with reasonable promptness by the City Council by written notice to the lowest responsible and responsive bidder, unless the basis of award in the bid documents has explicitly established other criteria. As used in this Ordinance, the term "responsible and responsive bidder" means a bidder whose bid conforms in all material respects to the solicitation for bids, and who has demonstrated the capability to perform the contract requirements. 2. In the event the low responsive and responsible bid for a project exceed available funds, and such bid does not exceed such funds by more than 15%, the Purchasing Agent is authorized, when time or economic conditions preclude resolicitation of work of a reduced scope to, negotiate an adjustment of the bid price with the 19 low responsive and responsible bidder, in order to bring the bid within the amount of available funds. Any such negotiated adjustment shall be based only upon eliminating independent deductive items specified in the invitation for bids. The City retains the right to reject all bids should negotiations fail. REJECTION OF BIDS: in all cases of procurement brought before the City Council,' whether by bids, sealed proposals, competitive negotiations or otherwise, the City Council reserves the right to reject any and all bids, sealed proposals or negotiations, and cancel the bid as they may deem in the best interest of the City. The City Manager and Purchasing Agent shall have this same anthohty when it falls within the dollar threshold established by this Ordinance. More than one Bid from an individual, firm, partnership, corporation, or association under the same or different names, shall not be considered. Any or all proposals shall be rejected if there is reason to believe that collusion exists among the Bidders and no participants in such collusion shall be considered in future 20 proposals for the same work. BIDDERS IN DEFAULT TO CITY: The City Council may reject the bid of a Vendor/Bidder who is in default on the payment of City taxes, licenses, or other monies due the City. The City Manager shall have this same authority with respect to bids for contracts under $5,000.00. FORMAL CONTRACT: A formal contract shall be used when periodic payments are made throughout a project, as is generally the case with construction work, or when a performance bond (if required) is used. The contract shall be approved by the City Attorney. The contract shall protect the City against, but not be limited to, additional costs caused by abandonment of the work and claims by third parties for non payment. When this protection is not required, the purchase order may be the sole contract document. PAYMENT AND PERFORMANCE BONDS: 1. Construction contracts under $100,000.00 or projects for Public Works where the contract is less than $100,000.00, shall be exempt from executing payment and performance bond unless the City Manager determines such bonds are in the public interest on a 21 o project. In such event the public notice inviting bids for the project ' shall specify the requirements for payment and performance bonds and the procedures in subsection (2) and (3) of this subsection shall apply. Construction contracts $100,000.00 or over; Payment bonds equal to 100% of the contract price and performance bonds equal to 100% of the contract price shall be provided by the successful bidder at the time of the execution of the contract. The notice inviting bids shall specify the requirement for payment and performance bonds. Bond Requirement; The bond shall be provided by a surety company authorized to do business in the State of Florida and approved by the City Manager. In lieu of a bond, the bidder or contractor may furnish as security in favor of the City a certified check, a cashiers check or an irrevocable letter of credit. The check or letter of credit shall be drawn on or issued by a bank authorized to do business in the State of Florida. The form of the check or letter of credit must be approved by the City Manager and 22 City Attorney. 4. Waiver of Bonds; The City Council_may waive the requirement for payment and performance bonds for construction projects over $100,000.00 in accordance with the provisions of Chapter 255 F.S. 5. Contract payment when no bond is required; Where there is no bond required on a'public construction project, the City shall withhold up to 15% of the total contract price until all terms of the contract have been fulfilled to the satisfaction of the City. BID BONDS: 1. Construction Contracts under $100,000.00 or projects for Public Works where the contract is less than $100,000 shall be exempt fxom executing bid bond unless the City Manager determines that such bonds are in the public interest on a project. In such event, the public notice inviting bids for the project, shall specify the requirement for a bid bond and the procedures in subsection (2) of this subsection shall apply. 2. Construction contracts $100,000.00 or over: Bid bonds equal to 5% of the bid amount shall be submitted with each bid unless the 23 public notice inviting bids specifies that a bid bond is not necessary. Unsuccessful bidders shall be entitled to remm of surety after the final award of bid. A successful bidders shall forfeit the amount of it's security upon failure on his part to execute a contract within ten (10) days after receipt of a proposed contract from the City unless the time for executing the contract is extended by the City Manager. 3. In lieu of a bond, the bidder or contractor may furnish as security in favor of the City, cash, a certified check, a cashier's check or irrevocable letter of credit. The check or letter of credit shall be drawn on or issued by a bank authorized to do bus/ness in the State of Florida. The form of the check or letter of credit must be approved by the City Manager and City Attomey. LEASE - PURCHASES: The City is authorized to enter into leases or lease purchase arrangements related to equipment, machinery or property needed for City purposes at a stipulated rent to be paid from City funds. The City may make all other contracts or arrangements necessary to carry out the lease-purchase for the City purpose.The City shall have 24 SECTION 5. the right to enter into lease-purchase arrangements with private parties or governmental agencies subject to the provisions of this ordinance. REPEAL OF CONFLICTING ORDINANCES AND RESOLUTIONS: Section 2-91 and 2-92 of the Code of Ordinances are specifically repealed by this Ordinance. All other Ordinances and Resolutions or parts thereof which are in conflict herewith are hereby repealed. SEVERABiLITY: If any provision of this Odinance is for any reason, held invalid or unconstitutional by any court of competent jurisdiction, such provisions shall be deemed a separate, distinct, and independent provision and such holding shall not affect the validity of the remaining provisions. INCLUSION: It is the intention of the City Council and it is hereby ordained that the provision of this Ordinance shall become and be made part of the Code of Ordinances, City of Sebastian, Florida, and the sections of this Ordinance may be renumbered to accomplish such intention. This Ordinance shall become effective within ten (10) days upon adoption. 25 . The foregoing Ordinance was moved for adoption by Councilmember ~ The motion was seconded by Councilmember ~ / and upon being put into a vote, the vote was as follows: Mayor Louise R. Cartwright Vice Mayor Walter W. Barnes Councilmember Norma Damp Councilmember Richard J. Taracka Councilmember Raymond Halloran /7 //C' /' -4-10 / bT,,,,, -HnP/ A ~ / f The Mayor thereupon declared this Ordinance duly passed and adopted this J,'l'!i day of ~ ,1996. V CITY OF SEBASTIAN, FLORIDA BY:~~~ Louise R. Cartwnght, Ma or ATTEST: ~ fl. !r; ~~ Ilpu:t; Cdj ~k- f- Ka~ M. OHalloran, CMC/AAE -: ~ -- "- -'"'-- -- ::......... .- . ~ ~ -: (~a!) -' - . .- . 26 Approved as to Form and Content: ~ <..%o~~ Valerie Fernandez Settles, City Attorney 7/11/96 27