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1182 Increase Municipal Purchasing LimitsORDINANCE NO. 1182 AN ORDINANCE OF THE CITY OF OKEECHOBEE, FLORIDA; AMENDING THE CODE OF ORDINANCES SUBPART A, GENERAL, CHAPTER 2 -ADMINISTRATION, ARTICLE IV -FINANCIAL MATTERS, DIVISION 3 -MUNICIPAL PURCHASING, SECTIONS 2-284, 2-285, AND 2-286 THEREOF; AMENDING ORDINANCE NO. 584, SECTIONS IV(A), IV(A)(4), IV(A)(7), SECTION V(A), AND SECTION VI; INCREASING AUTHORIZED MUNICIPAL PURCHASES BY THE CITY ADMINISTRATOR AND HEADS OF DEPARTMENTS; BY AMENDING REQUIREMENTS FOR FORMAL BIDDING AND PROPOSALS IN MUNICIPAL PURCHASES; PROVIDING FOR CONFLICT; PROVIDING FOR SEVERABILITY; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Code of Ordinances within the City of Okeechobee, Florida adopted in 1982 certain requirements for authorized purchases by the City Administrator and Department Heads, with direction requiring formal bidding for purchases, and requests for proposals; and WHEREAS, the City of Okeechobee additionally enacted Ordinance No. 584 on November 18, 1986, which must be amended to conform to the amendments set out herein; and WHEREAS, it is recognized that in the ensuing thirty years subsequent to those Ordinances the cost of living, and goods and services has increased a great deal, and the current limits on municipal purchasing are insufficient; and WHEREAS, the City of Okeechobee finds that it is in the best interests for the day-to-day operations and functioning of the City that the limits on municipal purchasing, methods of bidding and request for proposals be amended as well. NOW, THEREFORE, be it ordained by the City Council of the City of Okeechobee, Florida; presented at a duly advertised public meeting; and passed by majority vote of the City Council; and properly executed by the Mayor or designee, as Chief Presiding Officer for the City: SECTION 1: That the City Council for the City of Okeechobee, Florida, amends herein Part II of the Code of Ordinances, Subpart A -General Ordinances; Chapter 2 -Administration; Article IV -Financial Matters; Division 3 -Municipal Purchasing; as follows: Section 2-284 Formal bidding procedures; when implemented; requirements. 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 $15,000.00 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 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, such deposits shall be forfeited by a successful bidder who fails to execute a contract within ten calendar days after award or otherwise defaults. (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 $77508,08 $15,000.00 or less shall be awarded by the city administrator; contracts above $7,500.00 $15,000.00 shall be awarded by the city council. (5) All awards will be made to the lowest responsive and responsible bidder, the determination of which shall consider the following factors: a. The character, integrity, reputation, judgement, experience and efficiency of the bidder. b. The ability, capability, financial stability, experience of staff and skill of the bidder to perform the contract. Ordinance No. 1182 - Page 1 of 3 Language to be added is underlined. Language to be deleted is struck -through. c. The quality, availability, and adaptability of the supplies or contractual 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. 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 faithful 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 and whose company is on the current list of "Companies Holding Certificates 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 Department. All bonds signed by an agent must be accompanied by a certified copy of the authority to act. (7) The city council, for purchases over $7,500.00 $15,000.00, and the city administrator for purchases under $7,500.00 $15,000.00, 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 the bids when, in their judgement such action is in the best interests of the city. Section 2-285 Proposals; when required; procedures. As distinguished from formal bidding, proposals shall be acquired when the estimated cost of a purchase will be over $500-00 $1,000.00 but less than $7,500.00 $15,000.00 and in the following manner: (1) The notice procedures for formal bidding may be used, at the discretion 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 working days. (4) Every effort will be made to acquire at least three proposals for the item or group of items to be purchased. (5) The city administrator shall maintain appropriate records of all letters, telephone calls, and personal contacts made in connection with all invitations for proposals. Section 2-286 Open market purchases. With the approval of the city administrator department head, field purchase orders may be used by using agencies for immediate purchases of supplies, materials and services not to exceed $500-.00 $1,000.00. All such expenditures shall be properly receipted to, and documented upon the city records. Pursuant to Section 2-290(f), the local vendor preference shall apply to any proposal, request for guotes, procurement, open market purchases, or formal bidding processes. SECTION 2: That the City Council for the City of Okeechobee, Florida, amends Ordinance No. 584 as follows: 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 $15,000.00 shall be acquired by formal bid in the following manner: (4) Contracts which total $7,500.00 $15,000.00 or Tess shall be awarded by the city administrator; contracts above $7,500.00 $15,000.00 shall be awarded by the city council. (7) The city council, for purchases over $7,500.00 $15,000.00, and the city administrator for purchases under $7,500.00 $15,000.00, 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 the bids when, in their judgement such action is in the best interests of the city. Ordinance No. 1182 - Page 2 of 3 Language to be added is underlined. Language to be deleted is stwek-through. 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 $50888 $1,000.00 but less than $7,500.00 $15,000.00 and in the following manner: [refer to Section 2-285 and 2-2861 Section VI: Open Market Purchases A. With the approval of the city administrator department head, field purchase orders may be used by using agencies for immediate purchases of supplies, materials and services not to exceed $508:89 $1,000.00. All such expenditures shall be properly receipted to, and documented upon the city records. SECTION 3: Conflict. All Ordinances or parts of Ordinances in conflict herewith are hereby repealed. SECTION 4: Severability. If any provision or portion of this Ordinance is declared by any court of competent jurisdiction to be void, unconstitutional, or unenforceable, then all remaining provisions and portions of this Ordinance shall remain in full force and effect. SECTION 5: Effective Date. This Ordinance shall take effect immediately upon its passage. INTRODUCED for First Reading and set for Final Public Hearing on this 2nd day of April, 2019. ATTEST: 01Pday-6, ane amiotea, CM f , City Clerk i Dowling R. Watford, r., f ayor PASSED AND ADOPTED after Second and Final Public Hearing this 16th day of April, 2019. / DowlingR. W ord, Jr., Mayor ATTES : ane amiotea, MC, City Clerk REVIEWED FORK LEGA SUFFI IENCY: John R. Cook, City Attorney Ordinance No. 1182 - Page 3 of 3 Language to be added is underlined. Language to be deleted is struck-threagh.