9596-22ORDINANCE NO. 9596-22
AN ORDINANCE OF THE CITY OF CLEARWATER, FLORIDA,
AMENDING CODE OF ORDINANCES, CHAPTER 2, ARTICLE VI,
DIVISION 3, PURCHASING; AMENDING SECTION 2.542 TO CHANGE
DEFINITIONS; AMENDING SECTION 2.554 TO INCREASE APPROVAL
AUTHORITY FOR DEPARTMENT DIRECTORS, TO CLARIFY
CONTRACT REQUIREMENTS; AMENDING 2.561 TO CLARIFY
PERFORMANCE AND PAYMENT BOND REQUIREMENTS, TO
CHANGE SMALL PURCHASE MONETARY THRESHOLD; AMENDING
SECTION 2.563 TO INCREASE MICRO PURCHASE MONETARY
THRESHOLD; AMENDING CODE OF ORDINANCES, CHAPTER 2,
ARTICLE VI, DIVISION 4, DISPOSAL AND DISPOSITION OF SURPLUS
TANGIBLE PERSONAL PROPERTY; AMENDING SECTION 2.623 TO
INCREASE DISPOSAL AUTHORITY FOR SURPLUS SALES OFFICER;
PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN
EFFECTIVE DATE.
WHEREAS, Division 3 of Article VI, Chapter 2 governs the purchasing procedures
for the acquisition of commodities, services, and construction, and the expenditure of
those funds;
WHEREAS, Division 4 of Article VI, Chapter 2 governs the disposal and
disposition of surplus personal property;
WHEREAS, the purchasing code provides an exception from competitive bidding
for micro purchases, which are purchases of commodities or services with a value of
$2,500.00 or Tess;
WHEREAS, the monetary threshold for micro purchases has remained the same
for more than 20 years;
WHEREAS, it is necessary to increase the micro purchase monetary threshold
due to rising costs and other economic factors that have occurred during that time;
WHEREAS, Division 4 authorizes the surplus sales officer to dispose of surplus
tangible property with a value of $5,000.00 or less;
WHEREAS, the disposal authority for the surplus sales officer has remained the
same for more than 20 years;
WHEREAS, it is necessary to increase the surplus sales officer's disposal
authority for better operational efficiency of city departments;
WHEREAS, other changes to the procurement code are needed to clarify
procedures and best practices;
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WHEREAS, the City Council determines that the adoption of this Ordinance to be
in the best interest of the City.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF CLEARWATER, FLORIDA, THAT:
Section 1: Division 3 of Article VI, Chapter 2, Code of Ordinances, is amended as
follows:
DIVISION 3. PURCHASING
Subdivision I. Generally.
Sec. 2.542. Definitions.
Micro purchase means the purchase of commodities or services with a value of
$10,000.00 _ _ . _ _ - _ - _ _ _ _ , _ ! ! or less.
Small purchase means the purchase of commodities or services with a value of
more than $10,000.00 $2,500.00 but Tess than or equal to $50,000.00.
Sec. 2.554. Authority for purchases of commodities, services, and construction.
(1) Generally.
(a) All contracts or other documents related to the procurement of
commodities, services, construction, or the obligation of city funds, shall
be facilitated by or through the procurement division. The procurement
division is authorized to establish procedures governing the processing of
all contracts.
(b) Purchases of commodities, services, construction, or the obligation of city
funds, where the cumulative total value per fiscal year exceeds
$100,000.00 per vendor, for similar commodities or services, shall be
approved by the city council prior to the signing of any contract or other
related documents.
(c) Signature authority for all contracts or other documents specified
in section 2.554(1)(b) shall be designated by the city council. Signature
authority for the purchase of commodities, services, or construction where
the cumulative total value per fiscal year is $100,000.00 or less is
delegated to the city manager, as purchasing agent, or designee.
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(d) As set forth herein, the city council delegates limited authority to the city
manager and department directors relating to the purchase of
commodities, services, or construction for the city, in compliance with
federal and state laws, city code, administrative rules, procedures, and
guidelines.
(e) All purchases, unless specifically authorized or delegated under this Code,
must be approved in advance by the city council. No person, unless
specifically authorized or delegated under this Code, may make any
purchase or enter into any contract involving the use of city funds.
Payment for any unauthorized purchase may be the responsibility of the
person placing the order.
(f)
Multi-year contracts are encouraged when it is determined to be
advantageous to the city. All multi-year contracts must contain a provision
that allows the city to terminate the obligation with 30 days' advance notice
based on a limitation of funding availability, unless otherwise determined
by the purchasing agent to be in the city's best interest.
(g) Competitive solicitations for the purchase of commodities should be issued
and reissued every five (5) years. Contracts, including the initial term and
any renewals, for the purchase of commodities should not exceed five (5)
years, unless otherwise determined by the purchasing agent to be in the
city's best interest.
(4) Department directors. Department directors may issue and approve direct
disbursements, utilize purchasing cards, or purchase commodities and services
up to $10,000.00 $2,500.00 per purchase. Department directors may not divide
the approval of the purchases of commodities or services to avoid this delegated
monetary threshold.
(6) Amendments Change orders. Following the award of a contract by the city
council, the city manager may approve and execute written amendments change
orders without city council approval, subject to the following:
(a) The city manager may increase any contract up to a total award of
$100,000.00.
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(b) The city manager may approve any increase of contract up to a maximum
of ten percent over the most recent award of the city council.
(c) No contract price increase shall be approved unless sufficient funds are
available for such purpose.
(d) Contract price decreases may be approved without limitation.
(e) The time for completion for construction projects may be extended up to
90 days, in any one change or cumulatively for the same project, beyond
the most recent city council approved completion time.
Subdivision III. Source Selection and Contract Formation
Sec. 2.561. Methods of source selection.
(2) Competitive sealed bidding. Except as otherwise provided in this division, the
purchase of commodities, services, or construction of an estimated value over
$50,000.00 shall be by written contract with the vendor submitting the lowest
responsive and responsible bid whose bid has been solicited, received, and
approved pursuant to the following procedures:
(a) Invitation to bid (ITB). An invitation to bid shall be requested from three or
more vendors for commodities, services, or construction when the
estimated value exceeds $50,000.00. Award through this process is based
solely on bids received and is not subject to negotiation following bid
opening. The contract may not be divided to avoid this monetary threshold.
An invitation to bid must include a purchase description of the
commodities, services, or construction sought; the time and date for the
receipt of bids and the public opening; and all contractual terms and
conditions applicable to the procurement, including the criteria to be used
in determining acceptability of the bid. If the city contemplates renewal of
the contract, that fact must be stated in the ITB. In the alternative, the city
council or designee may award to the responsive, responsible bidder
offering the lowest cost as the primary awardee and the next responsive,
responsible bidder offering the next lowest cost as an alternate
awardee(s), meeting all specifications, terms, and conditions. Nothing
herein is meant to prevent multiple awards to the responsive and
responsible bidders when such multiple awards are clearly stated in the
bid solicitation documents. In the case of identical responsive and
responsible bids, the decision as to the winning bid(s) must be made in
accordance with the terms contained in the competitive solicitation.
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(b) Notice inviting bids. Notice for an invitation to bid shall be published at
least 21 days prior to the bid opening date. Publication may be
accomplished on the city's website, a newspaper of general circulation, or
other means.
(c) Notice inviting bids for construction projects. Construction projects with an
estimated cost of $500,000.00 or less shall be published at least 21 days
prior to the established opening date and at least five days prior to any
scheduled pre-bid conference. Construction projects exceeding
$500,000.00 shall be published at least 30 days prior to the established
opening date and at least five days prior to any scheduled pre-bid
conference. Publication may be accomplished on the city's website, a
newspaper of general circulation, or other means.
(d) Security (bid bonds). When the estimated cost of a construction contract
is $150,000.00 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
posted on the city's website unless the city is solely responsible for the
delay in executing the contract. The city council may, upon the refusal or
failure of the vendor to execute the contract, award the contract to the next
lowest vendor. In such event, the amount of the forfeited security shall be
applied by the city to the contract price differential between the lowest bid
and second lowest bid, and the surplus, if any, shall be returned to the
forfeiting vendor.
(e) Performance and payment bonds. When the estimated cost of a
construction contract is $150,000.00 or higher, or when otherwise deemed
necessary by the city manager, a performance bond and a payment bond
is required. The security must be provided in accordance with the minimum
requirements of F.S. Section 255.05. The bonds shall be issued by a surety
insurer authorized to do business in Florida and in an amount equal to 100
percent of the price specified in the contract. Nothing in this subsection shall
be construed to limit the authority of the city to require additional security. A
company licensed to do businccc in Florida, may be rcquircd bcforc
cervices contracts or blanket purchase orders, where it has been
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full contract price. The city manager shall approve the requirement of a
(f) Security in lieu of performance and payment bonds. In lieu of the bond
required by this section, a vendor may file with the city, an alternative form
of security in the form of cash, money order, certified check, cashier's
check, irrevocable letter of credit, or a security of a type listed in F.S. Ch.
625. Any such alternative form of security shall be for the same purpose
and be subject to the same conditions as those applicable to the bond
required herein. The determination of the value of the alternative form of
security shall be made by the purchasing agent or designee.
(g)
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 publicly, in
the presence of one or more witnesses, on the time and at the time and
place stated in the public notices. A tabulation of all bids received,
including the amount of each bid, the name of each bidder, and such other
relevant information as may be specified, shall made available to the
public as required by law.
(5) Small purchases. Purchases of commodities or services with a value of more
than $10,000.00 $2,500.00 but less than or equal to $50,000.000 require
competition. Purchases may not be divided to avoid this monetary threshold.
Small purchases will follow the following procedures:
(a) Quotations. Quotations shall be obtained from at least three vendors.
Small purchases shall be awarded to the lowest responsive and
responsible vendor whose quotation provides best value to the city.
(b) Notice inviting quotations. Quotations shall be solicited either by written
request or orally. Acceptable means include but are not limited to facsimile
transmissions, electronic mail, telephone, in person, internet, or through
an approved electronic procurement or supplier relationship management
system.
(c) Sealed written quotations. In the event the procurement manager
determines that sealed written quotations are in the best interest of the
city, quotations received shall be opened in public at the time and place
designated in the notice inviting quotations.
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(d) Award of contract. Except as otherwise provided in this subdivision, each
contract shall be awarded to the lowest responsible and responsive
vendor.
Sec. 2.563. Exceptions to the competitive process.
(1) The competitive bidding requirements set forth in this division may be waived
when one of the following conditions exist:
(b) Micro purchases. Purchases of commodities or services with a value of
$10,000.00 $2,500.00 or less do not require competition.
i. Departments will attempt to obtain the lowest price available,
consistent with time and effort involved.
ii. Whenever possible, the purchase shall be made using a purchasing
card or direct disbursement.
iii. If necessary, a purchase order for a micro purchase may be
requested through the procurement division.
Coding: Words in strikeout type are deletions from existing text.
Words in underline type are additions.
Section 2: Division 4 of Article VI, Chapter 2, Code of Ordinances, is amended as
follows:
Sec. 2.623. Disposal and disposition of surplus tangible personal property.
(1) The surplus sales officer may classify as surplus any tangible personal property
owned by the city, provided that such property is not otherwise lawfully disposed,
when that property is determined to be obsolete, or the continued use of the property
is uneconomical or inefficient, or the property serves no useful function to the city.
(2) Tangible personal property that is excess to department needs must enter the surplus
disposal process and shall be disposed in the manner prescribed by F.S. Ch. 274.
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(3) Initial efforts will be made to redistribute any tangible personal property to other city
facilities or departments.
(4) In accordance with F.S. § 274.06, after the initial efforts to redistribute are exhausted,
tangible personal property may be disposed as follows:
(5)
(a) If the property is without commercial value, it may be donated, destroyed, traded,
abandoned, or otherwise disposed at the discretion of the surplus sales officer.
(b) If the market value of the property to be disposed is not estimated to exceed the
current fixed asset control level, it may be donated, destroyed, abandoned, or
otherwise disposed at the discretion of the surplus sales officer.
(c) At the discretion of the surplus sales officer, tangible personal property may be
offered without bids to the state, any governmental unit, or any political
subdivision of the state.
Tangible personal property not disposed by the methods described in sections
2.623(3) or 2.623(4), and valued at $50,000.00 $5,000.00 or less, whether single
item or batch of common bulk items shall be sold through public auction or open
market sales, pursuant to the following procedure:
(a) Minimum number of bids. Open market sales shall, whenever possible, be based
on at least three bids and shall be awarded to the highest responsible bidders.
(b) Notice inviting bids. Bids shall be solicited either by written request to
prospective buyers or by telephone.
(c) Rejection of bids. The surplus sales officer may:
i. Reject all bids; or
ii. Reject all bids and reobtain bids pursuant to the procedures prescribed in
this section.
(d) Award of contracts. Except as otherwise provided in this division, each contract
for the sale of surplus property as authorized by this subsection (5) shall be
awarded by the city manager to the highest responsible bidder.
(6) Tangible personal property not disposed by the methods described in sections
2.623(3) or 2.623(4), and valued at more than $50,000.00 $5,000.00, whether single
item or batch of common bulk items shall be sold through public auction or open
market sales, pursuant to the following procedure:
(a) Notice inviting bids (open market only). Notices inviting bids shall be published
and shall include a general description of the items to be sold, shall state where
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(7)
bid blanks and all specifications may be obtained, and shall state the time and
place for opening of bids.
(b) Bid opening procedures (open market only). Sealed written bids shall be
returned to the procurement division and shall be identified as bids on the
envelope. Bids shall be opened in public at the time and place stated in the public
notices. A tabulation of all bids received shall be made available to the public.
(c) Rejection of bids (open market only). The surplus sales officer may:
i. Reject all bids; or
ii. Reject all bids and readvertise for bids pursuant to the procedures
prescribed in this section.
(d) Award of contracts. Except as otherwise provided in this division, each contract
for the sale of surplus property as authorized by this subsection (6) shall be
awarded by the city council to the highest responsible bidder.
The bidding requirements set forth in this division may be waived when one or more
of the following conditions exist:
(a) The market value of items to be disposed is not estimated to exceed the current
fixed asset control level and may be disposed as the surplus sales officer deems
necessary.
(b) The surplus sales officer determines that the items can be sold or otherwise
disposed through only one source.
(c) Local, state, or federal law requires that the items be disposed via public auction.
(d) The surplus sales officer determines that a donation to charitable/not-for-profit
organizations is in the best interest of the city.
(e) The department director recommends trade-in as being in the best interest of
the city.
(8) When authorized or required, the surplus sales officer may utilize the services of
auctioneers at city facilities, provider facilities, or online auctions.
(9)
When the tangible personal property being disposed was purchased through a
federal, state, or other grant or award, the surplus sales officer shall ensure that any
disposal requirements contained in the grant or award are met.
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(10) When property being disposed includes electronic equipment with data storage
capabilities, disposal shall be through a provider capable of ensuring and providing
a certificate of complete data destruction for such equipment.
Coding: Words in strikeout type are deletions from existing text.
Words in underline type are additions.
Section 3:
Should any of the clauses, sentences, paragraphs, sections, or parts of this
Ordinance be deemed invalid, unconstitutional, or unenforceable by a court
of law or administrative agency with jurisdiction over the matter, such action
shall not be construed to affect any other valid portion of this Ordinance.
Section 4: This Ordinance shall become effective immediately upon adoption by City
Council.
PASSED ON FIRST READING
PASSED ON SECOND AND FINAL
READING AND ADOPTED
Approved as to form:
Owen Kohler
Lead Assistant City Attorney
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JUL 2 1 2022
AUG 1 8 2022
rank Hibbard
Mayor
Attest:
4140A--0/
L
Rosemarie Call
City Clerk