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Ord 17-00ORDINANCE NO. 17-00 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLOR/DA, AMENDING CHAPTER 36, "FINANCE; CITY PROPERTY TRANSACTIONS", SUBHEADING "CITY PURCHASING", OF THE CODE OF ORDINANCES OF THE CITY OF DELRAY BEACH, BY AMENDING SECTION 36.02, "ACQUISITION OF PERSONAL PROPERTY, SUPPLIES OR CONTRACTUAL SERVICES"; BY AMENDING SECTION 36.03, "VARIANCES BETWEEN THE BID/QUOTE AND ACQUISITION PRICE"; BY AMENDING SECTION 36.05, "BIDDING PROCEDURES", SUBSECTION (C); BY AMENDING SECTION 36.08, "EMERGENCY PURCHASES"; AMENDING SUBHEADING "CHANGE ORDERS AND CONTRACT MODIFICATIONS" BY AMENDING SECTION 36.12, "CHANGE ORDERS OR CONTRACT MODIFICATIONS; NONCONSTRUCTION"; BY AMENDING SECTION 36.13, "CHANGE ORDERS OR CONTRACT MODIFICATIONS; CONSTRUCTION CONTRACTS", TO PROVIDE FOR A STREAMLINED PROCEDURE FOR PURCHASES UNDER $1,000.00, TO ADD ELECTRONIC BIDS/QUOTES FOR PURCHASES UNDER $6,000.00, TO PROVIDE FOR CHANGES IN THE CITY'S PURCHASING LIMITS AND TO CORRECT CERTAIN TITLES; PROVIDING A SAVING CLAUSE, A GENERAL REPEALER CLAUSE, AND AN EFFECTIVE DATE. WHEREAS, the City Commission of the City of Dekay Beach desires to update the Code of Ordinances regarding certain purchasing limitations and to reflect current rifles of persons revolved in various aspects of the City's purchasing procedure; and WHEREAS, the need to revise certain limits is appropriate and will partially adjust for the impact of inflation since the original limits were adopted. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLOR/DA, AS FOLLOWS: Section 1. That Chapter 36, "Finance; C~ty Property Transacuons", Subheading "City Purchasing", Section 36.02, "Acquisition of Personal Property, Supplies or Contractual Services", of the Code of Ordinances of the C~ty of Dekay Beach is hereby amended to read as follows: Section 36.02 ACQUISITION OF PERSONAL PROPERTY, SUPPLIES OR CONTRACTUAL SERVICES. Whenever the C~ty shall seek to acquire personal property, supplies, or contractual services, the following procedures shall be implemented ~y ~t. ~ ~ .... u ~:_ ~ ............ ~ Of Sccr: (A) For acquisitions of personal property, supplies, or contractual sex%ices costing ..... u ........ t. ......a~a t... h Lng under $1,000.00, the Department Head or ~, ............ ;. = ......... ., the Purc as Supervisor may'approve the acquisition and award the purchase to the best competent vendor without Cit3' Manager or Commission rexdew. However, the Purchasing Officcr Supervisor or Department Hcad will, insofar as it is practical, obtain two (2) quotations, either oral verbally, electronically or in writing ----: -- for purchases be~,een e~ nn nn .. ~.._.tt,..., ,. ......$500.00 and $1,000.00. If a purchase order is used, the Purchasing Superx4sor shall award and s~gn the purchase order· (B) For acquisitions costing $1,000 or more, but less than $6,000.00, purchases may lng be awarded bv the Purchas lng r~cz_~. /h ign x~...,~_~8~ ........ ,.....o~':~ '~"°'8~''-''a~": ..... ,~.,~n after the Purchas ...... Supen4sor or Ins er des ee has either: (1) Solicited competitive bids/quotes, verbally, electronically or in writing, from at least three different sources of supply, when available; or (2) Utilized a purchasing contract established by a local, state or federal governmental agency or cooperative purchasing group. (C) For acquisitions costing $6,000 or more, but less than ~n c~nn nn ~.~,, ...... $15,000.00, purchases may be awarded by the Purchasing Officcr Supet5-isor to the low responsible bidder, subject to Cit3' Manager approval. Where the proposed award is not to the loxv bidder, the bids/quotes shall go to the City Commtssion for rexnew and award. Awards will be made only after · c~:~^, his/her designee has either: the Purchasing ...... Supevt-isor or (1) Solicited competitive bids/quotes, in writing, from at least three different sources of supply, when available; or (2) Utilized a purchasing contract established by a local, state or federal governmental agency or cooperative purchasing group. (D) For acquisitions ,~c e~ n nnn · ,, ~. ~,~,,~, $15,000 and up, purchases shall be made by the Purchasing Of~ccr Supervisor after the Commission has reviewed and awarded the bid/quote. Bids/quotes shall be secured in the maimer prescribed in subparagraph (E) of this section. shall either: (E) Condinons for securing formal bids/quotes. The Purchasing Offf. ccz Supervisor (1) Solicit competittve bids/quotes in a formal written manner from at least three different sources of supply when available; or (2) Utilize a purchasing contract established by a local, state or federal governmental agency or cooperative purchasing group. Ord. No. 17-00 Section 2. That Chapter 36, "Finance; City. Property- Transactions", Subheading "City Purchasing", Section 36.03, "Variances Between the Bid/Quote and Acquisition Price", of the Code of Ordinances of the City of Delray Beach is hereby amended to read as follows: Section 36.03 VARIANCES BETWEEN THE BID/QUOTE AND ACQUISITION PRICE. The Purchasing Adr-.2c.:.3traw. r Supervisor shall have the authority, to make purchases for personal property, supphes, or contractual services under Section 36.02 if the delivered price does not either: (A) Exceed ten percent (10%) or $1,000, whichever is loxver, of the bid/quote price of the awarded vendor; or 03) Does not exceed the next lowest bidder, subject to current price verification. Section 3. That Chapter 36, "Finance; City Property Transactions", Subheading "City Purchasing", Section 36.05, "Bidding Procedures", Subsection 36.05(C), of the Code of Ordinances of the City of Delray Beach is hereby amended to read as follows: Section 36.05 BIDDING PROCEDURES. (C) One-price, cost-plus, and dollar amount bids. Invitations to bid shall define the nature of the bid in terms of these categories as a one-price bid, a cost-plus bid, cost-plus ~xed fee bid, or a dollar amount as it may be determined by a stated fomaula (but only one category shall be defined in the invitation). (1) In the case of a one-price bid, the xvhole cost to the City shall be inclusive of all cost and expense elements as engineering, legal, or technical consultation fees, job-preparation expense, insurance premiums, shipping charges, stand-by time, and the living or traveling expenses of job personnel (although a detailed schedule of all costs and expenses shall not be required to be disclosed in the case of a one-price bid), together with a schedule of proposed terms of payment and any allowable discounts. (2) A cost-plus, or any sliding scale, bid may be invited with the concerted approval of the City Manager and the Director of Pub~2c Wc, rlza Environmental Serx4ces in the case of a proposed project for which reasonable cost or expense estimates do not appear feasible (as m the case of a project involving possible removal of m~mown quantities of concealed rock). Under this circumstance, the bid shall set forth the total of all of the details of determinable costs and expenses together with schedules of the variable cost elements as unit-costs, per them costs, and the like, as are required by the bid invitation. 3 Ord. No. 17-00 Section 4. That Chapter 36, "Finance; Cig, Property Transactions", Subheading "City Purchasing", Section 36.08, "Emergency Purchases", of the Code of Ordinances of the Cit-)' of Delray Beach is hereby amended to read as follows: Section 36.08 EMERGENCY PURCHASES. The provisions of Section 36.02 notwithstanding, the Cig: Manager or his designee, as specified in writing, shall have the authority to make certain emergency purchases only when the health, safety, or general xvelfare of all or a significant specified poruon of the residents of the Ci~ are affected. (A) The City. Manager shall institute written administrative procedures for the proper execution of the emergency purchases by City administrative staff as set forth herein. (t3) For emergency purchases which are not anticipated to exceed e,n~.,,,,,,~v.,,,,nnn nn $15,000.00, the City Manager shall have the authority to waive the provisions set forth in Section 36.02 of this chapter, and shall subsequently so nonfy the City Commission of such emergency purchase. (C) For emergency purchases which are anticipated to exceed the sum of~¢~. n,,,,,,,,,.,,,~c~nn $15,000.00, the C~ty Manager shall first endeavor to notify the Mayor for purposes of calling a special emergency meeting of the Cig' Comtmssion to approve sa~d purchase in advance. If the City, Manager determines that a quorum for such an emergent7 special City. Commission meeting cannot be obtained, the City Manager shall have the authority to make such purchases provided that ..... 'l,.~ t..~. 't. ............ 4 ~-4 "J"-" the purchase shall be subsequently ratified by the City Commission at the next regularly scheduled City Commission meeting. (D) For purposes of this section, "EMERGENCY" shall mean a situation in which the health, safety or general welfare of all the residents or a significant specified portion of the residents of the City are affected or shall be irreparably harmed should the purchase occur through the regular purchasing procedures set forth in Section 36.02 rather than th_tough the emergency procedures set forth herein. Section 5. That Chapter 36, "Finance; City Property Transactions", Subheading "Change Orders and Contract Modifications", Section 36.12, "Change Orders or Contract Modifications; Nonconstruction", of the Code of Ordinances of the City- of Delray Beach is hereby amended to read as follows: 4 Ord. No. 17-00 Section 36.12 CHANGE ORDERS NONCONSTRUCTION. OR CONTRACT MODIFICATIONS; (A) All changes to nonconstmction purchase orders or contracts shah be by issuance of a change order or contract modification. Except as otherwise provided in this subchapter, the Purchasing Dizcctc, z Supervisor may issue, subject to approval by the City Manager or his designee, change orders or contract modifications to correct errors, omissions or discrepancies in contract documents; cover acceptable overruns and freight costs; incorporate reclmrements to expand or reduce the scope of goods or services ordered; or to chrect other changes in contract execution to meet unforeseen field, regulatoD, or market conditions, where changes will not exceed e ~ n nnn .v,vvu $15,ooo. ¢t n nnn (13) Where changes will increase the purchase order or contract total over ~ $15,000, the Purchasing Dizccw. z Supervisor shall have the approval of the City Commassion. A sen,ice authorization issued pursuant to a Cxty Commission approved continuing services contract for a separate and distract project which does not exceed~e~n. v,,,.,~ann $15,000. for the particular project may be approved by the City. Manager or his designee. Sen4ce authorizations for sepaxate and chstinct projects xvhich exceed e~ n nnn s.,,,,,,,~ $15,000 require City, Commission approval. Where changes to a service authorizanon for a particular project are made which will increase the total cost of the ¢t n nno particular project authorized by' the initial sen4ce authotizauon over ~.~,vv,, $15,000, or involve an extension of time, the sen;ice authorization shah be approved by the CiD' Commission. Section 6. That Chapter 36, "Finance; City Property Transactions", Subheading "Change Orders and Contract Modifications", Section 36.13, "Change Orders or Contract Modifications; Construction Contracts", of the Code of Ordinances of the City of Delray Beach is hereby amended to read as follows: Approval of construction contract change orders or contract modifications shall be as follows: (A) A change order or contract modification of ¢~ n nnn ~.~,~ $15,000 or less shall be initiated by a Department Head and the City Engineer or outside engineer subject to City Manager 03) A change order or contract modification m an amount .... e~ n nnn ~,v~ ~...,.~.... $15,000, or invoh-mg an extension of time, must have C~ty Commission approval. CiD: Commission approval is !~quixed ~vhen the cumulative total of change orders or contract modifications exceed $15,000 for any one contract. 5 Ord. No. 17-00 (C) A sen'ice authorization issued pursuant to a continuing contract for a separate and distinct proj'ect which does not exceed,~.v,,,v,,e~n nnn $15,000 may be approved by the City Manager or his designee. Sermce authorizations for separate and distinct projects which exceed~e~n, v,v,,,,nnn $15,000 shall require CitT Commission approval. Where changes to a service authorization for a particular project are made which xvill increase the total cost of the particular project authorized by the initial service authorization over ~v,,,,,.~ $15,000, or revolve an extension of time, the service authorizauon shall be approved by the City Commission. Section 7. That should any section or provision of this ordinance or any portion thereof, any paragraph, sentence or xvord be declared by a court of competent jurisdicfon to be invalid, such decision shall not affect the validity of the remainder hereof as a whole or part thereof other than the part declared to be invalid. Section 8. That all ordinances or parts of ordinances m conflict herexvith be, and the same are hereby repealed. Section 9. That this ordinance shall become effective immediately upon ~ts passage on second and final reading. PASSED AND ADOPTED m regular session on second and final reading on flus the 19th day of September ,2000. MAYOR ATrEST: cit . d - First Reading September 7, 2000 Second Reading September 19, 2000 6 Ord. No. 17-00 MEMORANDUM TO: MAYOR AND CITY COMMISSIONERS FROM: ~ CITY MANAGER SUBJECT: AGENDA ITEM lO. ~, - REGULAR MEETING OF SEPTEMBER 19, 2000 ORDINANCE NO. 17-00 (CITY PURCHASING) DATE: SEPTEMBER 15, 2000 This is second reading and a public hearing for Ordinance No. 17-00 which amends Chapter 36 of the City Code relative to purchasing procedures. The changes are outlined in the attached memoranda from the C~ty Attorney and the Finance Department. At first reading on September 72, the City Commission passed the ordinance by a 4 to 0 vote. Recommend approval of Ordinance No. 17-00 on second and final reading. RefiAgrnemo21. Ord. 17 -00. Ch. 36. Purchasing I:ITY OF DELRI:I¥ BEI:II:H CITY ATTORNEY'S OFFICE 200 NW 1st AVENUE · DELRAY BEACH, FLORIDA 33444 TELEPHONE 561/243-7090 · FACSIMILE 561/278-4755 DELRAY BEACH 1993 DATE: August 26, 2000 MEMORANDUM Writer's Direct Line 561/243-7091 TO: David T. Harden, City Manager FROM: Susan A. Ruby, City Attorney SUBJECT: Ordinance Changes to Chapter 36 - City Purchasing Attached is the revised proposed ordinance modifying the City's purchasing ordinance. The proposed ordinance primarily provides for the following: (1) There are changes in the $1,000 or less purchasing category to allow for purchasing card use. (2) There is an increase from $10,000 to $15,000 as the upper limit for purchase approval by the City Manager. I believe the ordinance limits have not changed since 1983. The ordinance, however, retains the provision of City Commission approval if the award is not to the lowest bidder. (3) The ordinance updates certain personnel titles. (4) The ordinance provides for electronic responses for acquisitions up to $6,00O. If the ordinance is acceptable to you, please place on an upcoming City Commission agenda. Please call if you have any questions. Attachment CCi Alison MacGregor Harty, City Clerk Joseph Safford, Finance Director Milena Walinski, Assistant Finance Director Jackie Rooney, Purchasing Supervisor MEMORANDUM To: From: Date: Subject: David Harden, City Manager /~Milena Walinski CGFO, Acting Finance Director July 19, 2000 Recommended Changes to Purchasing Limits Changes are being recommended to existing purchasing limits to ease the administrative burden on departments and also to increase the threshold for competitive bids from $10,000 to $15,000, which will bring competitive bid limits in line with FS 287.057. Although the State has a higher threshold for construction and associated design services, I do not feel the City would benefit from that change. Please review the requested changes. Purchases from $1 to $1,000 No quotes required. Department Head must approve. Department will make every attempt to receive two (2) quotes, verbal, electronic or written for items over $500. Use of Purchasing Card when appropriate. Purchases awarded by n .................... .1~' Purchases from $1,001 to $5,999 Three (3) quotes, verbal, electronic or written required, or, utilize contract by local, State, Federal agency or cooperative purchasing group. Purchases awarded by Purchasing Supervisor. Purchases from $6,000 to $14,999 Three (3) written quotes or utilize contract by local, State, Federal agency or cooperative purchasing group. Award to lowest responsible and responsive bidder. Requires City Manager approval. Purchase over $15,000 Formal competitive bid/quote Requires City Commission approval As a note, if Ordinance No. 36 is changed, please update title changes from Purchasing Officer and Purchasing Administrator to Purchasing Supervisor. mlw Doc: purch limit chg C: Joseph M. Safford, Finance Director Jackie Rooney, Purchasing Supervisor /o7. lO0 MEMORANDUM TO: FROM: SUBJECT: MAYOR AND CITY COMMISSIONERS ~/CITY MANAGER AGENDA ITEM/o7. Z), - REGULAR MEETING OF JULY 25, 2000 ORDINANCE NO. 17-00 (CHANGES TO PURCHASING LIMITS) DATE: JULY 21, 2000 This is first reading for Ordinance No. 17-00 which amends Chapter 36, "Finance; City Property Transactions", Subheading "City Purchasing", of the City Code by amending Section 36.02, "Acquisition of Personal Property, Supplies or Contractual Services", with respect to purchasing limits as outlined in the attached memorandum from the Acung Finance Director. As a housekeeping item, the ordinance also amends the entire chapter to reflect the correct position tide of "Purchasing Supervisor" as opposed to Purchasing Officer, Admimstrator or Director. If the ordinance is passed on first reading, a public hearing will be scheduled for August 15, 2000. Recommend approval of Ordinance No. 17-00 on first reading. RefiAgmemo21.Ord.17-00 Ch.36.Purchasmg MEMORANDUM From: Date: Subject: David Harden, City Manager  Milena Walinski CGFO, Acting Finance Director July 19, 2000 Recommended Changes to Purchasing Limits Changes are being recommended to existing purchasing limits to ease the adminislrative burden on departments and also to increase the threshold for competitive bids from $10,000 to $15,000, which will bring competitive bid limits in line with FS 28?.057. Although the State has a higher threshold for construction and associated design services, I do not feel the City would benefit from that change. Please review the requested changes. Purchases from $1 to $1,000 No quotes required. Department Head must approve. Department will make every attempt to receive two (2) quotes, verbal, electronic or written for items over $500. Use of Purchasing Card when appropriate. Purchases awarded by Purchasing Supervisor. Purchases from $1,001 to $5,999 Three (3) quotes, verbal, electronic or written required, or, utilize contract by local, State, Federal agency or cooperative purchasing group. Purchases awarded by Purchasing Supervisor. Purchases from $6,000 to $14,999 Three (3) written quotes or utilize contract by local, State, Federal agency or cooperative purchasing group. Award to lowest responsible and responsive bidder. Requires City Manager approval. Purchase over $15,000 Formal competitive bid/quote Requires City Commission approval As a note, if Ordinance No. 36 is changed, please update title changes from Purchasing Officer and Purchasing Administrator to Purchasing Supervisor. mlw Doc: pm'ch limit chg C: Joseph M. Safford, Finance Director Jackie Rooney, Purchasing Supervisor ORDINANCE NO. 17-00 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AMENDING CHAPTER 36, "FINANCE; CITY PROPERTY TRANSACTIONS", SUBHEADING "CITY PURCHASING", OF THE CODE OF ORDINANCES OF THE CITY OF DELRAY BEACH, BY AMENDING SECTION 36.02, "ACQUISITION OF PERSONAL PROPERTY, SUPPLIES OR CONTRACTUAL SERVICES", TO MODIFY EXISTING PURCHASING LIMITS AND TO INCREASE THE THRESHOLD FOR COMPETITIVE BIDS IN ACCORDANCE WITH STATE STATUTES; AND AMENDING THE ENTIRE SUBHEADING BY CHANGING THE TITLES OF "PURCHASING OFFICER" AND/OR "PURCHASING ADMINISTRATOR" TO "PURCHASING SUPERVISOR" TO REFLECT THE CORRECT POSITION TITLE; PROVIDING A SAVING CLAUSE, A GENERAL REPEALER CLAUSE, AND AN EFFECTIVE DATE. WHEREAS, the C~ty regulates it's purchasing policies and procedures through Chapter 36, "Finance; City Property Transactions", Subheading "City Purchasing", of the Code of Ordinances of the City of De[ray Beach; and WHEREAS, the City w/shes to make certain changes to the ordinance with respect to purchasing limits and increasing the threshold for competitive bids in accordance with state statutes, as xvell as other changes of a housekeeping nature. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOI J,OWS: Section 1. That Chapter 36, "Finance; City Property Transactions", Subheading "C~ty Purchasing", Section 36.02, "Acquisition of Personal Property, Supplies or Contractual Services", of the Code of Ordmances of the C~ty of De[ray Beach be, and the same is hereby amended to read as follows: Section 36.02 ACQUISITION OF PERSONAL PROPERTY, SUPPLIES OR CONTRACTUAL SERVICES. Whenever the City shall seek to acquire personal property, supplies, or contractual services, the following procedures shall be implemented by the Purchasing Officcr Supervisor: (A) For acquisitions of personal property, supplies, or contractual services costing under $1,000.00, purchases may be awarded by the Purchasing Officcz Supervisor to the best competent vendor xmthout City Manager or Commission review. However, the Purchasing Of~ccz Supervisor or Department Head wRl, insofar as it is practical, obtain two (2) quotations, either oral or xvritten, for purchases between $100.00 and $1,000.00. 03) For acquisitions costing $1,000 or more, but less than $6,000.00, purchases may be awarded by the Purchasing Officcz Supervisor after the purchase has been approved by the City Manager or his designee and after the Purchasing O£ficcr Supervisor or his designee has either: (1) Sohcited competitive bids/quotes, verbally, electronically or in xvritmg, from at least three different sources of supply, when available; or (2) Ut~h:~ed a purchasing contract established by a local, state or federal governmental agency or cooperative purchasing group. (C) For acquisitions costing $6,000 or more, but less than ¢~t~ nnn ~,.,,,,,,,,~ $15,000.00, purchases may be awarded by the Purchasing Officer Supervisor to the low responsible b~dder, subject to City Manager approval. Where the proposed award ~s not to the Iow bidder, the bids/quotes shall go to the City Commissmn for review and award. Awards will be made only after the Purchasing Officer Supervisor or bas designee has either: (1) Sohcited competitive bids/quotes, in writing, from at least three different sources of supply, when available; or (2) Utilized a purchasing contract established by a local, state or federal governmental agency or cooperattve purchasing group. (12)) For acquisitions ,,c e~ n nnn · ~, ~,,,,v,,,, $15,000 and up, purchases shall be made by the O ..... Supervisor after the Commission has reviewed and awarded the bid/quote. Purchasing cc.___ Bids/quotes shall be secured in the manner prescribed m subparagraph (E) of this secuon. (E) Conditions for securing formal bids/quotes. The Purchasing Officer Supervisor shall either: (1) Solicit competitive bids/quotes in a formal written manner from at least three different sources of supply when available; or (2) Utiliv. e a purchasing contract established by a local, state or federal governmental agency or cooperative purchasing group. Section 2. That Chapter 36, "Finance; City Property Transactions", Subheading "C~ty Purchasing", Section 36.03, "Variances Between the B~d/Quote and Acquisition Price", of the Code of Ordinances of the City of De[ray Beach be, and the same is hereby amended to read as follows: - 2 - Ord. No. 17-00 Section 36.03 VARIANCES BETWEEN THE BID/QUOTE AND ACQUISITION PRICE. Purchasing ............ Supervisor shall have the authority to make purchases for personal property, supplies, or contractual services under Section 36.02 ~f the dehvered price does not either: (A) Exceed ten percent (10%) or $1,000, whichever is lower, of the bid/quote price of the awarded vendor; or 03) Does not exceed the next lowest bidder, subject to current price verification. Section 3. That Chapter 36, "Finance; City Property Transactions", Subheading "Change Orders and Contract Modificanons", Section 36.12, "Change Orders or Contract Modifications; Nonconstruction", of the Code of Ordinances of the City of Delray Beach be, and the same is hereby amended to read as follows: Section 36.12 CHANGE NONCONSTRUCTION. ORDERS OR CONTRACT MODIFICATIONS; (A) All changes to nonconstruction purchase orders or contracts shall be by issuance of a change order or contract modification. Except as otherxvise provided in this subchapter, the Purchasing D/rcctc, r Supervisor may issue, subject to approval by the City Manager or his designee, change orders or contract modifications to correct errors, omissions or discrepancies in contract documents; cover acceptable overruns and freight costs; incorporate requirements to expand or reduce the scope of goods or services ordered; or to dtrect other changes in contract execution to meet unforeseen field, regulatory or market conditions, where changes will not exceed $10,000. 03) Where changes will increase the purchase order or contract total over $10,000, the Purchasing D:~rcctc, z Supervisor shall have the approval of the City Commission. A service authorization issued pursuant to a City Commission approved continuing services contract for a separate and distract project which does not exceed $10,000 for the particular project may be approved by the C~ty Manager or his designee. Service authorizations for separate and distract proiects which exceed $10,000 require City Commission approval. Where changes to a service authorization for a particular project are made wl~ch will increase the total cost of the parttcular project authorized by the in/rial service authorization over $10,000, or involve an extension of nme, the service authorizanon shall be approved by the City Commission. Section 4. That should any section or provision of this ordinance or any portion thereof, any paragraph, sentence or word be declared by a court of competent jurisdiction to be invalid, such decision shall not affect the vahdity of the remainder hereof as a whole or part thereof other than the part declared to be invalid. - 3 - Ord. N0.17-00 Section 5. That all ordinances or parts of ordinances in confhct herewith be, and the same are hereby repealed. Section 6. That this ordinance shall become effective immediately upon its passage on second and final reading. the PASSED AND ADOPTED in regular session on second and final reading on this __ day of ., 2000. ATTEST: MAYOR City Clerk Fzrst Reading Second Reading - 4 - Ord. No. 17-00 Chapter 36 CHAPTER 36: FINANCE: CITY PROPERE"f TRANSACTIONS Section City Purchasi~g 36.0! 36.02- 36.03 36.04 36.05 36.06 36.07 36.08 Compliance with standard practice instructions Acquisition of personal property, supplies or contractual services Variances between the bid/quote and acquisition price Acquisition of real property Bidding procedures Competency in bidding; prequalification of bidders Discard of bid of incompetent bidder Emergency purchases Chanqe Orders and Contract Modifications 36.10 36.!1 36. 12 36.13 36.14 Purpose Definitions Change orders or contract modifications; nonconstruction Change orders or contract modifications; construction contracts Internal procedures and processes Contracts for Professional Servio~s 36.!5 State law adopted by reference Debarment or Suspension of Vendors and Contractors 36.29 36.30 36.31 36.32 Purpose Authority to debar or suspend Appeals and remedies Reinstatement Sale. Exchanae. or Lease of City Property 36.35 Sale, exchange, or lease of real property 36.36 Sale or lease of personal property III.143 Section 36.01 CIT~ PURCHASING Section ~,O~ COMPLIANCE WITH STANDARD PRACTICE INSTRUCTIONS. (A) The details of all city purchasing shall be performed in accordance with the latest current revision of a standard practice instruction as issued by the City Manager, and as this reflects the requirements of the City Charter and the current revision of the city's code. (B) The City Manager or his designee shall have the authority to execute on behalf of the City, all purchase orders, contracts, change orders, service authorizations or modifications thereto when a public hearing, or approval, review, selection or award by the Commission is not required by this chapter. ('80 Code, Sec. 2-33; Am. Ord. No. 34-93, passed 4/27/93) S~ction 36.02 ACOUISITION OF PERSONAL PROPERTY. SUPPLIES OR CONTRACTUAL SERVICES. Whenever the city shall seek to acquire personal property, supplies, or contractual services, the following procedures shall be implemented by the Purchasing ~: (A) For acquisitions of personal property, supplies, or contractual services costing_ und~er $1,000, purchases may be awarded by the Purchasing ~to the best competent vendor without City ~nager or Commission review. However, the Purchasing ~ or Department Head will, insofar as it is practical, obtain two (2) quotations, either oral or written, for purchases between $100 and $1,000. (B) For acquisitions costing 81,000 or more, but less than $6,000, purchases may be awarded by the Purchasing~r after the purchase has been approved by the City ManagerTM or his designee and after the Purchasing ~r or his designee has either: ~ (1) Solicited competitive bids/quotes, verbally or in writing, from at least three different sources of supply, when available; or (2) Utilized a purchasing contract established by a local, state or federal governmental agency or cooperative purchasing group. III.144 Section 36.02(C) 000 (C) For acquisitions costing $6,000 or more, but less/~han ~ purchases may be awarded by the Purchasing ~f-f-i~er to the low responsible bidder, subject to City Manager approval. Where the proposed award is not to the low bidder, the bids/quotes shall go to the City Commission for review and award. Awards will be made only after the Purchasing ~ or his designee has either: ~¢£~i~ .(1) Solicited competitive bids/quotes, in writing, from at least three different sources of supply, when available; or (2) Utilized a purchasing contract established by a local, state or federal governmental agency or cooperative purchasing group. $~D~¢0~$0~ i~n /fi;co o (D) For acquisit s of $i0,000 and up, purchases shall be made by the Purchasing ~-i~e~ after the Commission has reviewed and awarded the bid/quote. Bids/quotes shall be secured in the manner prescribed in division (E) of this section. (E) Colons for securing formal bids/quotes. The Purchasing ~ shall either: ~ 1) Solicit competitive bids/quotes in a formal written manner from at least three different sources of supply when available; or (2) Utilize a purchasing contract established by a local, state or federal governmental agency or coopgrative purchasing group. ('80 Code, Sec. 2-34) (Ord. No. 14-83, passed 4/12/83; Am. Ord. No. 6-91, passed 1/29/91) Section 36.03 VARIANCES BETWEEN THE BID/QUQTE AND ACOUISITION PRICE. The Purchasing A~minictr&t~r shall have the authority to make purchases for personal property, supplies, or contractual services under Sec. 36.02 if the delivered price does not either: (A) Exceed ten percent (10%) or $1,000, whichever is lower, of the bid/quote price of the awarded vendor; or (B) Does not exceed the next lowest bidder, subject to current price verification. ('80 Code, Sec. 2-35) (Ord. No. 14-83, passed 4/12/83) III. 145 " ~ Section 36.04 Section 36.04 ACOUISITION OF P~AL ~ROPERTY, Whenever, in the opinion of the City Commission, it would be in the best interest of the city to purchase certain real property which would be required for municipal purposes, the Commission is authorized and empowered to make that purchase at the price and upon the terms and.conditions it deems to be in the best interest of the city. Unless the city has authorized the use of its eminent domain powers for the purchase of real property, a notice of that purchase, setting forth the terms and conditions' of any purchase of real property, shall be first published once a week for at least two weeks in a newspaper of general circulation published in the city before adoption by the Commission of a resolution authorizing the purchase of the property at the price and on the terms and conditions set forth therein. ('80 Code, Sec. 2-36) (Ord. No. 14-83, passed 4/12/83; Am. Ord. No. 11-91, passed 2/12/91) Section 36.05 BIDDING PROCEDURES, (A) Specifications. In the case of sealed competitive bidding for any purchase of, or to cover any contract for, the acquisition of goods, services, or structures, and regardless of the anticipated whole cost, the city shall furnish to each bidder a uniformly equal description, specification, or plan, together with specifically stated alternatives thereto, which will cover all aspects of type, kind, character, quality, or quantity of, and the maximum allowable time for the delivery of the goods, or the completion of the contract for which bids are invited. Furthermore, in the case that emergency requirements may render time, as such, to be of the essence of the contract, those original specifications (available to all bidders) shall contain a formula which evaluates time in terms of dollars per calendar day or fraction thereof, which may be properly used in effecting a determination of the lowest competent bidder, and which shall be the basis for the calculation of any penalties to be assessed against the contractor in a final settlement for his failure to meet the previously established completion time schedule. Where possible, specifications shall be those in general use in an appropriate trade or industry, and shall be referred to by name and title (as in the case of the standardized specifications issued by the American Society for Testing Materials). (B) Deposits, penalty bonds. Bidders may be required to make those deposits as may be deemed requisite to cover the cost of any plans or specifications; these deposits being redeemable upon application of the bidder when the plans and specifications are returned in acceptable order. Bidders may also be required to post penalty bonds as may be deemed necessary to protect the city fully in an eventuality as the inability of the vendor or contractor properly to fulfill the terms of the purchase order or contract for any and every reason. III.146 .- .- Section 36.05(C) (C) One-price, cost-plus, and dollar amount bids. Invitations to bid shall define the nature of the bid in terms of these categories as a one-price bid, a cost-plus bid, cost-plus fixed fee bid, or a dollar amount as it may be determined by a stated formula (but only one category shall be defined in the invitation). (1) In the case of a one-price bid, the whole cost to the city shall be inclusive of all cost and expense elements as engineering, legal, or technical consultation fees, job-preparation expense, insurance premiums, shipping charges, stand-by time, and the living or traveling expenses of job personnel (although a detailed schedule of all costs and expenses shall not be required to be disclosed in the case of a one-price bid), together with a schedule of proposed terms of payment and any allowable discounts. (2) A cost-plus, or any sliding scale, bid may be invited with the concerted approval of the City Manager and the Director of Public Works in the case of a proposed project for which reasonable cost or expense estimates do not appear feasible (as in the case of a project involving possible removal of unknown quantities of concealed rock). Under this circumstance, the bid shall set forth the total of all of the details of determinable costs and expenses together with schedules of the variable cost elements as unit-costs, per diem costs, and the like, as are required by the bid invitation. ('80 Code, Sec. 2-37) Section 36.06 COMPETENCY IN BIDDING: PREOUALIFICATION OF (A) Competency in bidding is defined as being able properly to demonstrate trade or industry proficiency, standing, and qualifications, and the financial ability to deliver the goods or to complete the contract as executed, together with the submission of a bid which, in every respect, fully meets and complies with the terms, conditions, and specifications, or stated alternatives thereto, which were made a part of, or which are inherent in, the invitation to bid. (B) The City of Delray Beach may require prequalification of bidders on City construction projects. ('80 Code, Sec. 2-38) (Am. Or4. No. 25-94, passed 5/3/94) III.147 .- Section 36.07 Section 36.07 DISCARD OF BID OF INCOMPETENT BIDDER. Failure of any bidder to comply fully with the provisions of Sec. 36.06, or any of this subchapter, may result in the discard of his bid from any comparison or consideration in the contemplated purchase or contract. ('80 Code, Sec. 2-39) Section 36.08 EMERGENCY PURCHASES. The provisions of Sec. 36.02 notwithstanding, the City Manager or his designee, as specified in writing, shall have the authority to make certain emergency purchases only when the health, safety, or general welfare of all or a significant specified portion of the residents of the city are affected. (A) The City Manager shall institute written administrative procedures for the proper execution of the emergency purchases by city administrative staff as set forth herein. (B) For emergency purchases which are not anticipated to exceed $10,000, the City Manager shall have the authority to waive the provisions set forth in Sec. 36.02 of this code, and shall subsequently so notify the City Commission of such emergency purchase. (C) For emergency purchases which are anticipated to exceed the sum of $10,000, the City Manager shall first endeavor to notify the Mayor for purposes of calling a special emergency meeting of the City Commission to approve said purchase in advance. If the City Manager determines that a quorum for such an emergency special City Commission meeting cannot be obtained, the City Manager shall have the authority to make such purchases provided that the City Manager notifies the City Commission both verbally and in writing within 24 hours after the purchase has been executed, and that the purchase shall be subsequently ratified by the City Commission at the next regularly scheduled City Commission meeting. (D) For purposes of this section, "~uF~IQ~" shall mean a situation in which the health, safety, or general welfare of all the residents, or a significant specified portion of the residents, of the city are affected or shall be irreparably harmed should the purchase occur through the regular purchasing procedures set forth in Sec. 36.02, rather than through the emergency procedures set forth herein. (Ord. No. 155-88, passed 12/13/88) III.148 Section 36.10 CHANGE ORDERS AND CONTRACT MODIFICATIONS Section 36.10 PURPOSE. The purpose of this ,subchapter is to establish responsibilities and to implement procedures to be followed when change orders are needed to purchase orders and/or modifications are needed to contracts. (Ord. No. 76-89, passed 12/12/89) ~ection 36.11 DEFINITIONS, For the purpose of this subchapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning. "CHANGE ORDER." A written order or agreement signed and issued by the city, directing the vendor or contractor to make changes to the purchase of supplies, equipment, services or construction. "QONTRACT MODIFICATIQN," Any written alteration in specifications, delivery point, rate of delivery, period of performance, price, quantity, or other provisions of any contract accomplished by mutual action of the parties to the contract. (Ord. No. 76-89, passed 12/12/89) ~.ection 36.12 CHANGE ORDERS OR CONTRACT MODIFICATIONS: NONCONSTRUCTION. ~¢0~o~ (A) All changesf to nonconstruction purchase orders or contracts shall be b~issuance of a change order or contract modification. Except/as otherwise provided in this subchapter, the Purchasing Di~=u~o~ may issue, subject to approval of the City Manager or his designee, change orders or contract modifications to correct errors, omissions, or discrepancies in contract documents; cover acceptable overruns and freight costs; incorporate requirements to expend or reduce the scope of goods or services ordered; or to direct other changes in contract execution to meet unforeseen field, regulatory or market conditions, where changes will not exceed $10,000. III. 149 Section 36.12(B) (g) Where changes will increase the purchase order or contract total over $10,000, the Purchasing Dir~tor shall have the approval of the City Commission. A service authorization issued pursuant to a City Commission approved continuing services contract for a separate and distinct project which aces not exceed $10,000 for the particular project may be approved by the City Manager or his designee. Service authorizations for separate and distinct projects which exceed $10,000 require City Commission approval. Where changes to a service authorization for a particular project are made which will increase the total cost of the particular project authorized by the initial service authorization over $10,000, or involve an extension of time, the service authorization shall be approved by the City Commission. (Ord. No. 76-89, passed 12/12/891 Am. Ord. No. 33-93, passed 4/27/93) Section 36.13 CHANGE CONSTRUCTION CONTRACTS. ORDERS OR CONTRACT MODIFICATIONS: Approval of construction contract change orders or contract modifications shall be as follows: (A) A change order or contract modification of $10,000 or less shall be initiated by a department head and the City Engineer or outside engineer subject to City Manager or his designee's approval. City Commission approval is required when the cumulative total of change orders or contract modifications exceed $10,000 for any one contract. (B) A change order or contract modification in an amount over $10,000, or involving an extension of time, must have City Commission approval. (C) A service authorization issued pursuant to a continuing contract for a separate and distinct project which does not exceed $10,000, may be approved by the City Manager or his designee. Service authorizations for separate and distinct projects which exceed $10,000 shall require City Commission approval. Where changes to a service authorization for a particular project are made which will increase the total cost of the particular project authorized by the initial service authorization over $10,000, or involve an extension of time, the service authorization shall be approved by the City Commission. (Ord. No. 76-89, passed 12/12/89; Am. Ord. No. 33-93, passed 4/27/93) III.150