Fort Walton Beach Resolution — 2009-42-Adm Polcy-Purchases 20-25,000 — reading text

RESOLUTION 2009-42 A RESOLUTION OF THE CITY OF FORT WALTON BEACH, FLORIDA; APPROVING ADMINISTRATIVE POLICY FIN-Q9 FOR PURCHASING; AND SETTING AN EFFECTIVE DATE. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WALTON BEACH, FLORIDA AS FOLLOWS: Pursuant to section 4. 01. 025, of the Code of Ordinances, the City Council must approve the administrative practices for purchases above the established threshold amounts of $20, 000 and $ 25,000 for equipment and vehicle repairs. Therefore, the City Council hereby approves the administrative practices for these purchases as set forth in Administrative Policy FIN- 09, Purchasing. This Resolution shall take effect immediately upon approval by the City Council. Adopted: tfJe/;i! gIU / 31 9tJoCj Mike Anderson, Mayor Attest: Approved for form and legal sufficiency: a~ Helen Spe er, City Clerk DISPOSITION  CITY OF FORT WALTON BEACH i ADMINISTRATIVE POLICY NUMBER - FIN- 09 SUBJECT: Purchasing REVISION DATE: October 6. 2009 ORIGINAL EFFECTIVE DATE: September 10. 2001 APPROVED: Robert T. Mearns, City Manager 1. PURPOSEIINTENT 1.1. Section 4. 01.02 of the City of Fort Walton Beach Code of Ordinances authorizes the establishment of a Central Purchasing Department to coordinate purchases for the requirements of all City agencies. Regulations for purchases by this department shall be as prescribed from time to time by the City Council or the City Manager. 1. 2. The City Council of the City of Fort Walton Beach recognizes centralized purchasing as a necessary function of .effective government, and, therefore, declares that it shall be the responsibility of the Purchasing Division to c_ centralize the purchase of all supplies, equipment, services and construction for the departments and divisions of the City, the basic objective of which is to obtain the best total value consistent with operational needs, while maintaining fair and open competition. 1.3. Since rules and regulations are necessary for the proper operation of the purchasing function and since it is essential that all who are involved in the purchasing operation be well informed, this Administrative Policy will govern the purchasing process and provide direction to all employees directly or indirectly associated with the function of purchasing. 2. BACKGROUND and DEFINITIONS 2. 1. The purchasing function involves the procurement of materials, supplies, equipment, and services at the lowest possible cost, consistent with the quality needed to meet the required standards established by the City. This act is the sole responsibility of the Purchasing Division, whose goal is the promotion of the best interest of the City through intelligent action and fair dealings, resulting in obtaining maximum savings for the City. 2.2. The objectives of the Purchasing Division of the City of Ft.Walton Beach are as follows: 2.2. 1. Deal fairly and equitably with all vendors wishing to do business with the City. . 131-  2. 2.2. Provide professionaJ procurement services for all departments and divisions within the City. C_) 2. 2.3. Assure adherence to all laws, regulations, and procedures related to City procurement. 2. 2.4. Maximize competition for all procurements of the City. 2. 2. 5. Obtain maximum savings through. innovative buying practices and application of value analysis techniques. 2. 2. 6. Administer and negotiate Contracts for the City. 2. 2. 7. Purchase goods and services from capable vendors at the lowest price, consistent with the quality, p~rformance and delivery requirements of the City. 2. 3. Change .Order - a modification to an executed contract due to unanticipated conditions or developments relating to that contract. 2. 4. City Personnel - employees of the City, including the City Manager and the City Clerk. 2. 5. Competitive Procurement - method of procurement used for all purchases greater than or equal to $ 1, 000. 2. 6. Cone of Silence - the period from the time of issuance of the competitive solicitation until the time the award is made, in which no City Employee is the permitted to be in contact with bidders regarding an outstanding bid, with exception of the Purchasing Division. 2. 7. Cooperative Procurement - combining of the requirements of two ( 2) or more political entities to obtain the advantages of volume purchases, improved specifications, reduced administrative costs, and increased intergovernmental cooperation. 2.8. Credit Card - method of payment whereby charges are allocated to accounts based on receipts or invoices at month end. 2. 9. Designee - City employee who has received prior written approval by the Department Director and the Finance Director to act in the place of the Department Director in specific purchasing functions. 2. 10. Direct Payment form - alternate method of requesting a purchase from a vendor not already established in the City' s accounting system and to which the purchase is non-recurring. 2. 11. Emergency - situation that prompts a purchase when one of the following is occurnng: 2. 11. 1. Public health, welfare, or safety is threatened 2. 11. 2. Critical City operations are severely adversely affected 2. 11.3. Delay in the procurement of goods/ services is against the public interest 2. 12. Gratuity - A favor or gift, usually in the form of money, given in return for servIce. 2. 13. Immediate Family - spouse, brother, sister, parents, or children. 2. 14. Invitation to Bid ( ITB) - traditional method of soliciting bids for the acquisition of goods and/or services when specification requirements are precise and stated in fairly exact terms, including the terms and conditions of the bid document. The responses to an ITB must be returned to a specific 132-  location at a specific time, in accordance with the bid document, and the all responses received by the time and date' set forth must be opened and read aloud in public. 2. 15. Local Merchant - A merchant whose primary place of business is located within the City of Fort Walton Beach and who possesses a valid City of Fort WaIton Beach Business Tax Receipt. 2. 16. Lowest bidder - the bidder with the lowest price~ 2. 1.7.~- Minority- Business- Enterprise.-~.,business certified by the- 0ffice of Supplier Diversity and that meets the criteria outlined by F. S. 288. 703. 2. 18. Non- Competitive Purchases ( Sole Source) - award' of contracts for goods/ services available from only' one source, such as unique, patented, proprietary, or franchised supplies, or by the unique nature of the requirement or vendor, the impracticality of obtaining competition, or market conditions. 2. 19. Petty Cash - method ofpayment governed by Administrative Policy FIN03. 2. 20. Purchase Order - the official legal record' of contract between the City and a vendor. 2. 21. Piggyback - a term used to describe the accessing/use of a bid or contract issued by another State Agency when such bid contains language to allow other State Agencies other than the issuing Agency to access goods or services under the same terms, conditions, and pricing. 2. 22. Purchase Requisition - the preferred mechanism for requesting a purchase. 2. 23. Request for Proposal ( RFP) - a competitive procurement method used when the scope of work which the commodities or contractual service requires cannot be specifically defined, and/or when a qualified bidder is requested to propose commodities or contractual services to meet the specifications of the solicitation. 2. 24. Request for Qualifications ( RFQ) - a competitive procurement method used when the required service is of a professional and/or highly technical nature and is issued and evaluated in accordance with F. S. 287. 055. 2. 25. Responsible bidder - a bidder who has the capability, in all respects, to fully perform the contract requirements and the integrity and reliability to assure good faith in performance. 2. 26. Responsive bidder - a bidder who is responsible and conforms in all material respects to the solicitation. 2. 27. Scope of Services - the details of the service requested to be purchased. 2. 28. State Contract - a contract for goods or services issued by the Florida Department of Management Services for use by all state agencies. 2.29. Task Order - supplementary contractual and obligating document that usually includes task description, and a budget scope and schedule. 3. POLICYIPROCEDURES 3. 1. Code of Ethics and Standards of Conduct 3. 1. 1. All City personnel engaged in purchasing and related activities shall conduct business dealings. in a manner above reproach in every respect. 133-  3. 1.2. All City personnel engaged in the purchasing cycle are bound by the standard of conduct for public officers and employees set forth in ( '---..-,/ ) F. S. 112.313. 3. 2. City Personnel Conflict of Interest 3. 2. 1. It shall be a breach of ethical standards for City personnel to participate directly or indirectly in the purchasing process when the employee knows that: 3. 2. 1.1. He/ she or any member of hish/ er immediate family will benefit from a City purchasing transaction. 3. 2. 1. 2. A business or organization in which he/ she