0584 City PurchasingORDINANCE NO. 584
AN ORDINANCE ESTABLISHING RULES, REGULATIONS, AND PROCEDURES
FOR THE PURCHASING OF GOODS, MATERIALS, AND SERVICES; SETTING
MAXIMUM ESTIMATED VALUES ABOVE WHICH FORMAL AND OPEN BIDDING
IS REQUIRED; ESTABLISHING BIDDING PROCEDURES; ESTABLISHING
• PROCEDURES FOR DAY-TO-DAY PURCHASES; AND ESTABLISHING PROCE-
DURES FOR THE SALE OF SURPLUS MATERIALS. PROVIDING AN EFFEC-
TIVE DATE.
WHEREAS, it is in the best interests of the taxpayers and residents of the City
of Okeechobee to maximize efficiencies and economies as they relate to purchasing of
goods, materials and services, and;
WHEREAS, the City of Okeechobee deems it proper to establish certain rules and
regulations for the proper operation of the purchasing functions of the City;
NOW, THEREFORE, be it ordained by the City of Okeechobee, Florida:
Section I: Statement of Purpose
A. This ordinance establishes the purchasing policy of the City of Okeechobee,
Florida.
B. It is the express purpose of this ordinance to prescribe the controls neces-
sary for efficient purchasing, and to mandate high ethical standards of all
employees in connection therewith.
C. Implementation of this policy is the direct and sole responsibility of the
City Administrator.
D. The City Administrator may supplement this policy with further administra-
tive procedures and requirements; provided, however, that they are consis-
tent with the purpose and intent of this ordinance.
Section II: Definitions
A. "Contractual Services" shall mean and include all services involving labor
activities, but shall not include professional services or services provid-
ed by franchise.
B. "Supplies" shall mean and include materials, equipment, and other tangible
and consummable goods which terms may be interchangeably used herein.
C. "Using Agency" is any department in City government for which a supply or
service is being procured.
Section III. Scope of Purchasing Authority, Duties, Functions
A. Purchasing authority is hereby vested in the office of the City Administrator,,
subject to limitations prescribed herein.
B. It shall be the duty of the City Administrator to:
1. Maintain high ethical standards among all employees in the transaction
of purchasing business.
2. Assure that the spirit and intent of purchasing policies, as expressed
by the City Council, are fully satisfied.
3. Devise, as he sees fit, administrative procedures for the proper imple-
mentation of this ordinance.
4. Assure that all purchases are of the highest possible quality of the
lowest possible cost, consistent with budget and use restraints and
limitations.
5. Be watchful for transgressions to purchasing policies and procedures
• and deal with responsible employees firmly.
6. Declare vendors who default on their quotations or bids as irresponsible
bidders.
7. Record purchasing transactions accurately and report purchasing
activities to the City Council as he deems necessary.
C. It shall be the function of the City Administrator's office to:
• 1. Coordinate expected purchasing needs with budgetary considerations
during budget preparation time each fiscal year.
} 2. Review expected purchases to assure the availability of funds, and
that proper purchasing procedures are being observed.
3. Receive quotations, proposals, and bids in the manner prescribed
herein.
4. Control expenditures through sound purchasing technique and the
implementation of the provisions hereof.
Section IV: Formal Bidding Procedures; When Implemented; Requirements
A. All purchases of supplies, equipment, and contractual services, except
as allowed through emergency procedures of the City or other procedures
dictated by state law when the estimated cost thereof exceeds $7,500.00
shall be acquired by formal bid in the following manner:
1. A notice inviting bids shall be mailed to, or published in, one or
more of the following sources at least once, and at least ten (10)
calendar days preceding the last day set for the receipt of bids.
a. One legal newspaper having general distribution within the City,
and a substantial area surrounding the City.
b. Trade or service publications related to the materials or services
being purchased.
c. Direct mail notices sent to firms dealing in the materials or
services being purchased.
2. When deemed necessary, bid deposits shall be prescribed in the notice
which deposits shall be returnable to unsuccessful bidders, said de-
posits shall be forfeited by a successful bidder who fails to execute
a contract within ten (10) calendar days after award or otherwise de-
faults.
3. Bids shall be submitted sealed to the City Administrator's office,
identified as sealed bids on the envelope, and shall be opened in
public at the time and place designated in the notice.
4. Contracts which total $72500.00 or less shall be awarded by the City
Administrator; contracts above $7,500.00 shall be awarded by the City
Council.
5. All awards will be made to the lowest responsive and responsible bid-
der, the determination of which shall consider the following factors:
a. The character, integrity, reputation, judgment, experience and ef-
ficiency of the bidder.
b. The ability, capability, financial stability, experience of staff
and skill of the bidder to perform the contract.
C. The quality, availability, and adaptability of the supplies or con-
tractual services to the particular use required.
d. The ability of the bidder to provide future maintenance and service
for the work as required by the contract.
. e. The quality of performance of previous contracts and whether the
bidder can perform the contract within the time specified, without
delay or interference.
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f. Contractors not presently in default on other projects.
6. A contractor or vendor may be required to provide a performance:-
bond and a separate payment bond to guarantee the full and faith-
ful performance of his contract obligations and the payment of
labor and materials expended pursuant to the contract, whenever
and in such amounts as is deemed necessary. The surety company
must be licensed to conduct business in the State of Florida and
whose company is on the current list of "Companies Holding Certi-
ficates of Authority as Acceptable Sureties on Federal Bonds and
as Acceptable Reinsuring Companies" as published in Circular 570
(amended) by the Audit Staff Bureau of Accounts, U.S. Treasury
Dept. All bonds signed by an agent must be accompanied by a
certified copy of the authority to act.
7.
Section V: Proposals: When Required; Procedures
A. As distinguished from formal bidding, proposals shall be acquired when the
estimated cost of a purchase will be over $500.00 but less than $7,500.00
and in the following manner:
1. The notice procedures for formal bidding may be used, at the discre-
tion of the City Administrator, depending upon the complexities of
the expected 'purchase and the need for detailed explanations and
specifications.
2. As an alternative, proposals may be invited by letter or telephone call,
to firms engaged in a business related to the contemplated purchase.
3. Proposals may be rendered in the form of an oral quotation, but should
be confirmed in writing within five (5) working days.
4. Every effort will be made to acquire at least three (3) proposals for
the item or group of items to be purchased.
5. The City Administrator shall maintain appropriate records of all let-
ters, telephone calls, and personal contracts made in connection with
all invitations for proposals.
Section VI: Open Market Purchases
With the approval of the City Administrator, field purchase orders may be used
by using agencies for immediate purchases of supplies, materials and services
not to exceed $500.00. All such expenditures shall be properly receipted to,
and documented upon the City records.
Section VII: Unauthorized Purchases
It shall be illegal for any City officer or employee to order the purchase of
any materials, supplies, equipment or services, or make any contract other
than through the City Administrator, and any purchase order, or contract made
contrary to the provisions hereof, shall not be approved and the City shall
not be bound thereby.
Section VIII: Sole-Source Purchasing
Department Heads may recommend purchase of a specific brand if he feels, through
experience or analysis, that only that brand will serve the best interest of
the City. Factors which might warrant sole-source purchasing could involve com-
patability with existing equipment, maintaining operational standards, or lesser
service requirements which reduce down-time and maintenance costs. When making
such a recommendation, the Department Head shall submit written justification to
the City Administrator, who may waive bidding and grant the purchase request in
cases where the estimated value of the purchase does not exceed his bid-award
authority. Above that limit, the written justifications and recommendation
shall be referred to the City Council for approval.
a
The City Council, for purchases over $7,500.00, and the City
Administrator for purchases under $7,500.00, reserve the right
to waive formalities or technicalities in a bid, reject any or all
bids, make awards to separate bidders, make awards to more than one
bidder, and accept or reject parts of bids when, in their judgment
such action is in the best interests of the City.
Section IX: Intergovernmental Cooperation
The City declares its intent to cooperate with the Federal Surplus Property
Program, state and county joint purchasing programs, and other government
• contracts or programs, provided the City will benefit with low cost, high
quality equipment, materials and supplies.
Section X: Disposal of Surplus Property; Procedures
When a department head determines that any piece of equipment, materials, or
other supplies are unusable and surplus to the needs of the City, he shall
report that fact to the City Administrator. If the City Administrator con-
curs, he may dispose of the items in question in one of the following ways:
1. If the items fall into the category of consumable or perishable
goods, and they have little or no apparent value, they shall be
discarded along with other garbage or trash.
2. If the items appear to have intrinsic or monetary value, every effort
should be made to retrieve that value by:
a. Trading the item when a new replacement is purchased; selling the
items as surplus property; or
b. Selling the item at auction to the highest bidder, which shall
take place at a time and date advertised in a newspaper of
general circulation, as set by the City Administrator.
3. This section and these procedures do not apply to City real estate,
buildings or capital improvements, the disposition of which is the
sole discretion of the City Council.
Section XI: Effective Date
This ordinance shall become effective upon adoption.
Introduced for first reading and set for public hearing this 18 day of Nova-nber
1986.
Oakland R. Chapman, Ma "r
ATTEST:
Bonnie Thomas, City Clerk
Passed and adopted on second reading and public hearing this 2nd day of December
1986.
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akland R. Chapman, May
ATTEST:
onnie ~Tomas. City Cle k
APPROVED AS TO FORM:
Jerald D. Bryant, City Attorney
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