6857-01
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ORDINANCE NO. 6857-01
AN ORDINANCE OF THE CITY OF CLEARWATER, FLORIDA,
RELATING TO PURCHASING; AMENDING SECTIONS
2.561,2.562 AND 2.564 ADJUSTING THE DOLLAR
THRESHOLDS FOR THE CITY OF CLEARWATER'S
PURCHASING PROCEDURES; PROVIDING AN EFFECTIVE
DATE.
WHEREAS, purchasing thresholds have accelerated among the
governments similar to the City of Clearwater, Florida; and
WHEREAS, the City of Clearwater, Florida wishes to remain competitive
in the marketplace for the purchase of goods and services required for City
operations; and
WHEREAS, the City of Clearwater, Florida wishes to remain prudent and
efficient with the expenditure of its public funds; now therefore,
BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF
CLEARWATER, FLORIDA;
Section 1. That Sections 2.546, 2.561, 2.562, and 2.564 of the Code of
Ordinances, City of Clearwater, Florida, is hereby amended to read as follows:
Section 2.546. Purchase orders or contracts to be used.
Purchases of commodities and services shall be made only by purchase
orders and/or other written contract executed by the purchasing agent. Except
as otherwise provided in this division, no purchase order shall be issued unless
the prior approval of the city manager has been obtained. The purchase order
authorizing the expenditure of funds shall be signed by the purchasing agent.
Construction contracts exceeding $50.000 $25,000 shall be made by both
purchase order and written contract.
Section. 2.561. Purchases over $50.000 $25,000.
Except as otherwise provided in this division, the purchase of commodities or
services of an estimated value over $50.000 $25,000 shall be by purchase order
and/or other written contract with the vendor submitting the lowest responsible
bid whose bid has been solicited, received and approved, pursuant to the
following procedures:
1) Notice inviting bids. Notices inviting bids shall be published at least one time
in a newspaper of general circulation within the city and shall include a
general description of the commodities or services to be purchased, a
Ordinance No. 6857-01
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calendar days before the bid opening date. Sealed bids shall also be solicited
from responsible prospective vendors including those on the registered
vendor's list.
(2) Security (bid bonds). When the estimated cost of a public works contract is
$150.000 $100,000 or higher, or when otherwise deemed necessary by the
city manager, security in the form of a bid bond issued by a surety company
licensed to do business in Florida or a cash bond in an amount equal to ten
percent of the bid shall be prescribed in the public notices inviting bids. A
vendor shall forfeit a bid security upon a refusal or failure to execute the
contract within ten days after the notice of award of contract has been mailed,
unless the city is solely responsible for the delay in executing the contract.
The city commission may, upon the refusal or failure of the successful vendor
to execute the contract, award the contract to the next lowest vendor. In such
event, the amount of the lowest vendor's bid security shall be applied by the
city to the contract price differential between the lowest bid and the second
lowest bid, and the surplus, if any, shall be returned to the lowest bidder.
(3) Bid opening procedures. Sealed written bids shall be returned to the city and
identified as bids on the envelope, together with other information as may be
specified in the invitation to bid. Bids shall be opened in public on the date
and at the time and place stated in the public notices. A tabulation of all bids
received shall be made available to the public.
(4) Rejection of bids. The city manager may:
(a) Reject all bids; or
(b) Reject all bids and re-advertise for bids, pursuant to the procedure
prescribed in this section.
(c) Reject all bids and direct that the project or service in question be
performed by city forces upon determining that the project or service can
be timely performed for an amount less than each of the bids submitted.
(5) Award of contracts. Contracts exceeding $50.000 $25,000 shall be awarded
by the city commission to the lowest responsible vendor. Contracts of
$50.000 or less may be awarded by the city manaaer. assistant city manaaer
and may be further deleaated to the purchasina manaaer.
(6) Performance and payment bonds. A performance bond and a payment bond,
or a "contract bond" combining the elements of a performance and a payment
bond, issued by a surety company licensed to do business in Florida, may be
required before entering into a contract, in an amount at least equal to the
contract price or such higher amount as may be found reasonably necessary
to protect the best interests of the city. If such bond is required, the form and
amount of the bond shall be described in the notice inviting bids.
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Ordinance No. 6857-01
(7) Change orders. Any change in the contract price, scope of work or time for
completion of any project following the award of a contract shall be by a
written change order, approved by the city commission and executed with the
same formalities as the contract. However, the city manager may approve
and execute change orders without city commission approval subject to the
following limitations:
(a) Contract price increases,:, may be approved to a total award of $50.000
for any contract with the same approval authority as (5) above. The
city manaaer may approve any increase of contract UP to a maximum
of 10% over the most recent award of the city commission. The scope
of any proiect may not be chanaed without prior approval of the city
commission. shall not oxcood $25,000 oyor tho most rocont
commission approvod contract prico, in any one chango or
cUrRLJlati)Joly for tho same oontract. No contract price increase shall be
approved unless there are sufficient funds available for such purpose.
(b) Contract price decreases may be approved without limitation.
(c) The time for completion may not be extended by more than 60 days, in
anyone change or cumulatively for the same project, beyond the most
recent commission-approved contract completion time.
(d) No change order shall change the scope of the work unless approved
by the city commission.
(0) City managor appro)Jod oontr-acts may not oxcood $25,000
cLJmLJlativoly, inclLJsivo of all chango ordors.
Section 2.562. Purchases for $50.000 $25,000 or less.
Except as otherwise provided in this division, purchases of commodities or
services of a value of $50.000 $25,000 or less, may be made in the open
market, pursuant to the following procedure and without observing the procedure
prescribed in section 2.561:
(1) Minimum number of quotations. Open market purchases shall be based on at
least three quotations and shall be awarded to the vendor making the lowest
responsible quote.
(2) Notice inviting quotations. Quotations shall be solicited either by written
request, which may include facsimile transmission, electronic mail or by
telephone.
(3) Sealed written quotations. Sealed written quotations received in response to
written solicitations for quotations shall be submitted to the purchasing agent
who shall keep a record of all open market orders and quotes.
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(4) Written quotation opening procedures. When formal written quotations are
requested and received, the quotations shall be opened in public at the time
and place designated by the purchasing agent.
5) Rejection of quotations. The city manager as purchasing agent may:
(a) Reject all quotations; or
(b) Reject all quotations and re-obtain quotations pursuant to the procedures
prescribed in this subdivision.
(6) Award of contracts. Except as otherwise provided in this division, each
contract shall be awarded to the lowest responsible vendor.
Section 2.564. Exceptions to bid procedures.
(1) The bidding requirements set forth in this subdivision may be waived
when one of the following conditions exists:
(a) A department director certifies via electronic coordination of the purchase
requisition describing to the purchasing agent that an emergency exists in
regard to the purchase of any commodity or service and that the delay
incident to giving opportunity for competitive bidding would be detrimental to
the interest of the city. The responsible department director shall provide a
detailed summary outlining the facts demonstrating the existence of an
emergency. Upon determining that an emergency exists the purchasing agent
may authorize the purchase. Emergency purchases that exceed the
purchasing agent's authority must be approved by the city commission at the
earliest regular or special public meeting thereafter.
(b) Commodities or services are available only from a sole source, after
determination by the purchasing agent upon review of written summary of
facts from the department director requesting the purchase.
(c) The amount of the purchase is $2.500 $1,000 or less.
(d) It is to the advantage of the city to purchase commodities or services in
cooperation with another governmental entity in Florida_or to purchase
commodities or services from contracts previously awarded by other
governmental entities as recommended bv the department director or
desianee.
(e) The purchasing agent determines that the nature of the commodity or service
is such that competitive bidding is impossible, impractical, or cannot be
obtained as recommended bv the reauestina department director.
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Ordinance No. 6857-01
(f) Professional services subject to the Florida Consultants Competitive
Negotiations Act.
(g) Services rendered by health services including mental health; legal services
including paralegal, expert witness, appraisal or mediator services~ auditors;
academic and lecturers; or services provided by persons with mental or
physical disabilities under not-for-profit corporations.
(h) Commodities or services purchased by the city or its representatives when
necessary to the prosecution or defense of any claim or lawsuit in which the
city is a party or in which it is anticipated by the city attorney, the risk
manager, or the third party administrator of the city's self-insurance program
that the city will become a party.
(i) Commodities or services purchased by the city or its representatives when
necessary to comply with Chapter 440, Florida Statutes (Florida Worker's
Compensation Law), or when necessary to the defense of any worker's
compensation claim asserted against the city.
0) Contracts of insurance.
(k) Purchase of construction materials included in the scope of an awarded
construction contract in order to realize sales tax savinqs. in accordance with
Section 212.08(6). F.S.
(I) Purchasinq bid/quotation requirements may be suspended for a period (to be
determined by the emerqency condition) upon declaration of emeraency by
the city manaqer. Awards of contract may be deleaated in writina to any
desiqnee in the amount not to exceed $50.000.
(2) Purchases over .$50.000 $25,000 made pursuant to this section shall be
submitted to the city commission for approval.
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Ordinance No. 6857-01
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Section 2. This ordinance shall take effect immediately upon adoption.
PASSED ON FIRST READING
PASSED ON SECOND AND FINAL
READING AND ADOPTED
Approved as to form:
e C. Hayman
ssistant City Attorney
September 6, 2001
September 20, 2001
Attest:
~dJ,H:~~
.uv Cy hi E. Goudeau ..
() City Clerk
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Ordinance No. 6857-01